HR Managers Should Be Strategic Partners Not Employee Advocates - Literature review Example

HR managers should be strategic partners not employee advocates Introduction: The advent of internet, the globalisation initiative in 1990s and the recent advancements nad developments in information technology, communication networks and media have greatly impacted the strategic planning and business strategies of profit maximising firms. Indeed, the traditional workplace rules, regulations, requirements and criteria are no longer applied because of absolutely uncertain, unpredictable, unclear, unstructured and unexpected business environment. The new workplace demands increasingly large role of open communication, information sharing and team building that in turn leads to greater coordination, collaboration and cooperation among employees and employers. Unequivocally, Human Resource Management plays its vital role in goal accomplishment and organisational success because HR managers are solely responsible for recruitment, selection, employee compensation and fringe benefits, training and skills development and retrenchment. The use of information technology and information systems by businesses has increased over the last 2 decades so that they could attain a competitive edge over their rivals in the same industry. HR personnel, therefore, have to upgrade themselves as well as have to equip their employees to create a strategic fit. Indeed, Human Resource Management has traditionally focused over employee hiring and training rather becoming a part of strategic planning and business partnership. However, this notion has now been changing because of increasingly complex external environment, and HR managers therefore have also started playing the role of strategic partners rather simply employee advocates. (Beer, 1997) and (Caldwell, 2003) It is worthwhile mention that employees hired by HR managers then opt to follow organisational policies and to accomplish assigned goals and targets. Therefore, HR Department pays special attention to recruitment and selection. However, if HR managers become strategic planners / partners, they would be able to enhance organisational efficiency, effectiveness and performance. (Mohrman and Lawler, 2003, pp. 1-3) In addition, they could assist strategic planners in initiating ‘Change Management process’ and in implementing strategies that could help meeting objectives at new workplace. In addition, these HR managers could assist in organisational reengineering or restructuring that in turn will restore competitiveness and will result in survival, business expansion and sustainability. (Mohrman and Lawler, 2003, pp. 4-6) This paper will critically evaluate the statement that “HR managers should be strategic partners not employee advocates”. The paper will throw light over the perceived benefits of HR managers becoming strategic business partners. Finally, the paper will present a conclusion based on analysis of arguments raised by Human Resource Management experts and professionals in favour of strategic partnership. Arguments and Analysis: As far as the first major argument (about efficiency and effectiveness) that is raised by contributors to HRM is concerned, Strategic planners, including Chairman, President, CEO and Executive and Non-executive Directors, are among those who define organisational goals and objectives as well as the strategies to accomplish those goals. Indeed, the tasks are then assigned by middle management, more specifically the HR personnel, to all departments including Finance, Marketing, Information Technology, Production etc. across the organisation. Individuals, teams and task forces are then assigned their short and long term individual and group targets. Finally, the strategic managers would appraise performance and define alternative strategies if previously objectives are not accomplished. Bringing HR managers in this process would enable the top management to discuss core organisational strengths / weaknesses and operational feasibility with HR managers who can assist in developing rational policies that are economically, operationally and technically feasible for overall goals accomplishment. In addition, if new skills are required to accomplish those goals then HR partners could develop new personality, educational and technical skills development programmes, business management and administrative courses to meet the required criteria before effective implementation of new policies. In this way, not only top managers can implement their defined strategies and policies but also they can enhance employees’ skills and other attributes. In simple words, the top management, in collaboration with HR partners, can increase employees’ marginal productivity, efficiency and effectiveness. It must be recalled that efficiency or increase in productivity occurs when workers can produce same level of output with fewer inputs or can produce greater quantity of output with same level of inputs. Similarly, effectiveness refers to degree to which a business enterprise accomplishes its defined objectives. (Mohrman and Lawler, 2003), (Wright, Snell, Gerhart and McMahan, 1998), (Boudreau and Ramstad, 2002) and (Lawler, Levenson and Boudreau, 2004) In turn, this also not only enhances both individual and organisational performance but also result in financial / monetary and economic benefits in the short and long run. Indeed, the new training and development programmes also help in enhancing employees’ morale, in restoring instrumental and socio-emotional cohesiveness (basically the we-feeling among workers and their bosses), improving need fulfilment and job satisfaction and finally, in increasing normative commitment (here employees are proud for being associated with their work group and are determined to expand their career in the same organisation where they are employed). In addition to above mentioned benefits, this normative commitment then leads to reduced employee turn over rates that also decreases recruitment and selection budget and aggregate costs of doing business. The next argument that has been raised by contributors is that HR strategic partners could assist in Organisational Restructuring / Reengineering and Change Management Process. It is worthwhile to mention that businesses are changing their internal management systems and organisational hierarchy to become competitive and enhance their ability to meet new challenges. Most of the business enterprises tended to use authoritarian culture in which all decision-making powers were enjoyed by top management and workers at middle and lower management levels were only responsible for their implementation (Collins and Clark, 2003). However, the developments in communication technology and media at one extreme resulted in creating business opportunities because of emergence of global markets, suppliers, customers and a unique global culture; whereas on the other hand, this resulted in stiff competition among firms and entities. In short, today Information about all the above mentioned actors plays a key role in success of any business unit and this information has to be shared with middle and low level managers. Organisations, therefore, have initiated a restructuring programme that aims to change organisational culture (basically a shift from authoritarian to adaptability culture), to adjust managerial hierarchy (from vertical to horizontal or matrix approach) and to promote leadership role within organisational setting. (Wright, Snell, Gerhart and McMahan, 1998), (Boudreau and Ramstad, 2002) and (Lawler, Levenson and Boudreau, 2004) Explaining the above, it must be pinpointed that firms now focus on experimentation and risk-taking. In other words, they wish to become learning organisations in true manner so that they could ensure their business growth and sustainability in the long run. This experimentation is encouraged through open information sharing among employees as they are endorsed to increase their participation. In simple words, the strategic managers empower their employees and permit to make necessary decisions after situational analysis. The HR strategic partners could play their leading role in entire organisational restructuring or reengineering since they work closely with other employees and are responsible for their on-the-job training and performance evaluation / appraisal. These HR managers could suggest what changes in management hierarchy would be most feasible, manageable and controllable and how communication (regarding goals, tasks and policies) should take place in new workplace. Indeed, the HR partners could mentally prepare other employees about the structural and managerial changes and instil new organisational values. In addition, HR managers could make appropriate human resource rotations to deal with any underlying issues or impediments. (Collins and Clark, 2003) This would also enable the strategic managers to reduce or minimise any chances of resistance or retaliation and organisational politics from existing workers. It must not be forgotten that workers tend to resist change because of their fear of losing powers, seniority or authority that they enjoy in an existing work environment. (Mohrman and Lawler, 2003), (Beatty and Schneier, 1997) and (Brown, Metz, Cregan, and Kulik, 2009) Mohrman and Lawler (2003, p. 12) pinpointed the fact that HR must be “strategic partner only if it excels in providing the right combination of transactional services and high-level strategic input. It also needs to strike the appropriate balance between centralized services and deployment of HR support to the business units.” Evaluating the above, it must be highlighted that HR has remain involved in administration and employee selection rather than in policy formulation, organisational restructuring, change management and implementation. Therefore, in order to become a truly strategic partner, it must offer a balanced arrangement of ‘monetary or transactional-related services’ and a pool of workers who could help in meeting organisational financial targets and objectives. Furthermore, it is worthwhile to mention the fact that HR must enhance the use of information and communication technology to develop ‘HR Systems’ (Mohrman and Lawler, 2003, p. 13 - 14) that would enable the HR to formulate and implement HR strategic policies. However, the organisations or more specifically, the production related businesses that are highly capital intensive (such as those that have inducted state-of-the-art plants, machinery and sophisticated technological equipments) do not necessarily depend on HR to gain a competitive advantage over their rivals. Instead, businesses that are mostly labour intensive and that rely on productivity, skills and proficiency of their human assets needs HR function to be highly organised and established on firm grounds thereby enabling them to survive and grow in contemporary business environment. In short, these labour intensive firms usually require efficient ‘HR systems’ the most as they solely rely on the strength of their human resources in comparison of capital intensive businesses with economies of large scale operations. (Beatty and Schneier, 1997), (Lawler, Levenson and Boudreau, 2004, p. 10) and (Collins and Clark, 2003) HR, in order to become a strategic partner, has to dedicate greater amount of time towards strategic planning, organising, leading and controlling management functions. A study conducted by Brown, Metz, Cregan, and Kulik (2009) reveals the fact that most of the HR managers in Australia still devote most of their time in resolving inter organisational conflicts and disputes among employees and employers. Indeed, they tend to spend their remaining work time to conduct on-the-job training, career development and motivational sessions. Hence, it is justified to say that HR managers may not effective strategic partners unless they come with up new management goals as well as with rational strategies to accomplish those objectives. In simple words, they have to develop an organised HR strategic policy-making and implementation system to become strategic partners in a true manner. Conclusion: Concluding the above, it must be pointed out that this is a world of globalisation where businesses can expand their operations all across the world due to availability of worldwide infrastructure, transportation and communication networks. For example, a third world Asian country can export and market its products in developed western economies of Europe and USA. However, this also attracts potential new entrants that in turn result in stiff competition among the profit-maximising organisations. Firms that are mostly labour intensive, therefore, focus on differentiation and specialisation to gain a competitive edge over other operators and are heavily dependent upon the functioning of their Human Resource Management departments. Indeed, HR play the most important role in any business enterprise because these managers are responsible for recruiting and selecting a talented pool of workers that then work to accomplish their assigned business targets. Unequivocally, if HR managers take part in strategic planning, policy formulation and implementation, restructuring and initiating change management process, this would lead to higher organisational productivity and performance. The reason behind it is the fact that these HR managers work directly with employees and are well aware of their personality traits, skills, proficiency and attributes; hence they can devise business strategies that are operationally, technically and economically feasible and that are in best organisational interests. Also, there relationships with employees may help them in successfully implementing their devised strategies. Bibliography / References: Beer, Michael (1997) “THE TRANSFORMATION OF THE HUMAN RESOURCE FUNCTION: RESOLVING THE TENSION” Human Resource Management pp. 49-56 Available at http://instruct.uwo.ca/business/bus020-mwf/acs410/reading12.pdf Lawler, Edward E. and Susan Mohrman (2003) “HR AS A STRATEGIC PARTNER: WHAT DOES IT TAKE TO MAKE IT HAPPEN?” Center for Effective Organizations Available at http://ceo.usc.edu/pdf/G032430.pdf Stroh, Linda K. and Paula M. Caligiuri (1998) “Strategic human resources: a new source for competitive advantage in the global arena” The International Journal of Human Resource Management Available at http://chrs.rutgers.edu/pub_documents/Paula_16.pdf Caldwell, Raymond (2003) “The Changing Roles of Personnel Managers: Old Ambiguities, New Uncertainties” Journal of Management Studies 40(4), 983-1004. Available at http://eprints.bbk.ac.uk/52/1/caldwell2003.pdf Becker, Brian and Barry Gerhart (1996) “The impact of human resource management on organizational performance” The Academy of Management Journal Vol. 39 No. 4 pp. 779-801 Available at http://www.professorfontaine.com/files/TheImpactOfHRMonOrgnaizationalPerformance.pdf Wright, Patrick M., Scott Snell, Barry Gerhart and Gary C. McMahan (1998) “Comparing Line and HR Executives' Perceptions of HR Effectiveness: Services, Roles, and Contributions” Center for Advanced Human Resource Studies pp. 1-20 Available at http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1139&context=cahrswp Boudreau, John W. and Pete Ramstad (2002) “From “Professional Business Partner” To “Strategic Talent Leader”: “What’s Next” for Human Resource Management” Center for Advanced Human Resource Studies pp. 1-29 Available at http://www.businessfaculty.utoledo.edu/ddwyer/What's%20Next%20for%20HRM.pdf COLLINS, CHRISTOPHER J. and KEVIN D. CLARK (2003) “STRATEGIC HUMAN RESOURCE PRACTICES, TOP MANAGEMENT TEAM SOCIAL NETWORKS, AND FIRM PERFORMANCE: THE ROLE OF HUMAN RESOURCE PRACTICES IN CREATING ORGANIZATIONAL COMPETITIVE ADVANTAGE” Academy of Management Journal, Vol. 46, No. 6, 740–751. Available at http://www87.homepage.villanova.edu/kevin.d.clark/CollinsClark%20SHRM%20networks%20and%20performance%20AMJ%202003.pdf Lawler, Edward E. and Susan Mohrman (2000) “Beyond the Vision- What makes HR Effective” Center for Effective Organizations pp. 1-24 Available at http://ceo.usc.edu/pdf/G0016389.pdf Lawler, Edward E., Alec Levenson and John W. Boudreau (2004) “HR Metrics and Analytics – Uses and Impacts” Center for Effective Organizations pp. 1-17 Available at http://www.marshall.usc.edu/assets/048/9984.pdf Beatty, R.W & Schneier (1997), ‘New HR Roles to Impact organizational Performance: From “Partners” to “Players”, Human Resource Management, 36(1), 29-37. Available at http://chrs.rutgers.edu/pub_documents/Beatty-Schneier%20-%20New%20Roles%20-%20Partners%20to%20Players.pdf Brown, M., Metz, I., Cregan, C. & Kulik, C. (2009), ‘Irreconcilable Differences? Strategic Human Resource Management and Employee Well-being’, Asia Pacific Journal of Human Resources, 47(3), 270-294 Available at http://www.ahri.com.au/MMSDocuments/comms/apjhr/apjhr_2009/apjhr_47-3_271.pdf Lawler, E.E. (2007), ‘Why HR Practices Are Not Evidence-Based’, Center for Effective Organizations, 50(5), 1033-36 Available at http://ceo.usc.edu/pdf/g07_24.pdf Read More