THE EVOLVING/ STRATEGIC ROLE OF HUMAN RESOURCE

MANAGEMENT

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Strategic Human Resource Strategic Human Resource ManagementManagement

Strategic Human Resource Strategic Human Resource ManagementManagement

• Involves the development of a consistent, aligned Involves the development of a consistent, aligned collection of practices, programs, and policies to collection of practices, programs, and policies to facilitate the achievement of the organization’s facilitate the achievement of the organization’s strategic objectives.strategic objectives.

• Requires abandoning the mindset and practices of Requires abandoning the mindset and practices of “personnel management” and focusing on “personnel management” and focusing on strategic issues than operational issues.strategic issues than operational issues.

• Integration of all HR programs within a larger Integration of all HR programs within a larger framework, facilitating the organization’s mission framework, facilitating the organization’s mission and its objectives.and its objectives.

• Involves the development of a consistent, aligned Involves the development of a consistent, aligned collection of practices, programs, and policies to collection of practices, programs, and policies to facilitate the achievement of the organization’s facilitate the achievement of the organization’s strategic objectives.strategic objectives.

• Requires abandoning the mindset and practices of Requires abandoning the mindset and practices of “personnel management” and focusing on “personnel management” and focusing on strategic issues than operational issues.strategic issues than operational issues.

• Integration of all HR programs within a larger Integration of all HR programs within a larger framework, facilitating the organization’s mission framework, facilitating the organization’s mission and its objectives.and its objectives.

Strategic Human Resource Strategic Human Resource ManagementManagement

Strategic Human Resource Strategic Human Resource ManagementManagement

• Probably the single-most important caveat of Probably the single-most important caveat of strategic human resource management is that strategic human resource management is that there is no one best way to manage people in any there is no one best way to manage people in any given organization. Even within a given industry, given organization. Even within a given industry, HR practices can vary extensively from one HR practices can vary extensively from one organization to another.organization to another.

• Establishing a strong HR strategy that is clearly Establishing a strong HR strategy that is clearly linked to the organization’s strategy is not linked to the organization’s strategy is not enough. HR strategy needs to be communicated, enough. HR strategy needs to be communicated, practiced, and – perhaps most important – spelled practiced, and – perhaps most important – spelled out and written down.out and written down.

• Probably the single-most important caveat of Probably the single-most important caveat of strategic human resource management is that strategic human resource management is that there is no one best way to manage people in any there is no one best way to manage people in any given organization. Even within a given industry, given organization. Even within a given industry, HR practices can vary extensively from one HR practices can vary extensively from one organization to another.organization to another.

• Establishing a strong HR strategy that is clearly Establishing a strong HR strategy that is clearly linked to the organization’s strategy is not linked to the organization’s strategy is not enough. HR strategy needs to be communicated, enough. HR strategy needs to be communicated, practiced, and – perhaps most important – spelled practiced, and – perhaps most important – spelled out and written down.out and written down.

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Strategic HR at Yahoo!Strategic HR at Yahoo!Strategic HR at Yahoo!Strategic HR at Yahoo!

• Planning the type and number of employees Planning the type and number of employees Yahoo! needsYahoo! needs

• Attracting desirable employeesAttracting desirable employees• Recruiting potential employeesRecruiting potential employees• Assessing qualifications of job applicantsAssessing qualifications of job applicants• Developing employees to ensure that skills sets of Developing employees to ensure that skills sets of

employees are updated and developedemployees are updated and developed• Retaining top performersRetaining top performers

• Planning the type and number of employees Planning the type and number of employees Yahoo! needsYahoo! needs

• Attracting desirable employeesAttracting desirable employees• Recruiting potential employeesRecruiting potential employees• Assessing qualifications of job applicantsAssessing qualifications of job applicants• Developing employees to ensure that skills sets of Developing employees to ensure that skills sets of

employees are updated and developedemployees are updated and developed• Retaining top performersRetaining top performers

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Average of 12 hours interviews for EACH new hire

Average of 12 hours interviews for EACH new hire

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One organization that has effectively redesigned it HR function to assume all four roles is Mercantile Bank. Headquartered in St. Louis, Mercantile Bank is a multibank holding company, with $131B in assets and more than 10,000 employees. The bank strategically redesigned it s HR function during the 1990s, when it went through more than 39 mergers and acquisitions. As part of this process, Mercantile’s HR function moved beyond traditional recordkeeping and compliance to become more strategic in nature.

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This transformation happened through streamlining work processes, eliminating unnecessary activities, re-evaluating technology, and outsourcing nonstrategic functions. Furthermore, some retained HR functions remain centralized at headquarters; others are deployed to operating divisions. Consequently, Mercantile’s HR function is able to assume the roles of strategic partner, change agent, administrative expert, and employee champion simultaneously.

HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

• The The human capital steward role human capital steward role involves the involves the creation of an environment and culture in creation of an environment and culture in which employees voluntarily want to which employees voluntarily want to contribute their skills, ideas, and energy. This contribute their skills, ideas, and energy. This is based on the premise that unlike raw is based on the premise that unlike raw materials, plant, and equipment, human materials, plant, and equipment, human capital is NOT owned by the company; it can capital is NOT owned by the company; it can move freely from one company to another at move freely from one company to another at the employee’s whim.the employee’s whim.

• The The human capital steward role human capital steward role involves the involves the creation of an environment and culture in creation of an environment and culture in which employees voluntarily want to which employees voluntarily want to contribute their skills, ideas, and energy. This contribute their skills, ideas, and energy. This is based on the premise that unlike raw is based on the premise that unlike raw materials, plant, and equipment, human materials, plant, and equipment, human capital is NOT owned by the company; it can capital is NOT owned by the company; it can move freely from one company to another at move freely from one company to another at the employee’s whim.the employee’s whim.

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HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

• The The knowledge facilitator role knowledge facilitator role involves the involves the procurement of the necessary employee procurement of the necessary employee knowledge and skill sets that allow knowledge and skill sets that allow information to be acquired, developed, and information to be acquired, developed, and disseminated, providing a competitive disseminated, providing a competitive advantage.advantage.

• The The knowledge facilitator role knowledge facilitator role involves the involves the procurement of the necessary employee procurement of the necessary employee knowledge and skill sets that allow knowledge and skill sets that allow information to be acquired, developed, and information to be acquired, developed, and disseminated, providing a competitive disseminated, providing a competitive advantage.advantage.

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HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

• The The relationship builder role relationship builder role involves the involves the development of structure, work practices and development of structure, work practices and organizational culture that allow individuals to organizational culture that allow individuals to work together, across departments and work together, across departments and functions. To ensure competitiveness, functions. To ensure competitiveness, networks need to be developed that focus on networks need to be developed that focus on the strategic objective3s of the organization the strategic objective3s of the organization and how synergies and teamwork that lead to and how synergies and teamwork that lead to outstanding performance are valued and outstanding performance are valued and rewarded.rewarded.

• The The relationship builder role relationship builder role involves the involves the development of structure, work practices and development of structure, work practices and organizational culture that allow individuals to organizational culture that allow individuals to work together, across departments and work together, across departments and functions. To ensure competitiveness, functions. To ensure competitiveness, networks need to be developed that focus on networks need to be developed that focus on the strategic objective3s of the organization the strategic objective3s of the organization and how synergies and teamwork that lead to and how synergies and teamwork that lead to outstanding performance are valued and outstanding performance are valued and rewarded.rewarded.

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HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

HR Roles in the Knowledge-Based HR Roles in the Knowledge-Based EconomyEconomy

• TheThe rapid deployment specialist role rapid deployment specialist role involves the creation of an organization involves the creation of an organization structure and HR systems that are fluid and structure and HR systems that are fluid and adaptable to rapid change in response to adaptable to rapid change in response to external opportunities and threats. The global, external opportunities and threats. The global, knowledge-based economy changes quickly knowledge-based economy changes quickly and frequently, and success in such an and frequently, and success in such an environment mandates flexibility and a culture environment mandates flexibility and a culture that embraces change.that embraces change.

• TheThe rapid deployment specialist role rapid deployment specialist role involves the creation of an organization involves the creation of an organization structure and HR systems that are fluid and structure and HR systems that are fluid and adaptable to rapid change in response to adaptable to rapid change in response to external opportunities and threats. The global, external opportunities and threats. The global, knowledge-based economy changes quickly knowledge-based economy changes quickly and frequently, and success in such an and frequently, and success in such an environment mandates flexibility and a culture environment mandates flexibility and a culture that embraces change.that embraces change.

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Traditional HR versus Strategic HRTraditional HR versus Strategic HRTraditional HR versus Strategic HRTraditional HR versus Strategic HR

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Barriers to Strategic HRBarriers to Strategic HRBarriers to Strategic HRBarriers to Strategic HR

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