Since the dawn of the corporate era, HR departments have been relegated to the background with no say whatsoever in the boardroom. They were merely passive administrators charged with tactical transactions and implementation of policy decisions.
All of a sudden, though, everyone is talking about ‘Strategic HR’. The routine activities of recruitment, compensation, benefits, rewards and training are acquiring a bigger dimension.
The question is whether it is just another buzzword on the HR block, or is there something momentous beyond the hype? Will the HR function live up to the hoopla and turn into a source of competitive advantage, or will it collapse under its own weight as more and more responsibilities are piled on to it?
All of a sudden, though, everyone is talking about ‘Strategic HR’. The routine activities of recruitment, compensation, benefits, rewards and training are acquiring a bigger dimension.
The question is whether it is just another buzzword on the HR block, or is there something momentous beyond the hype? Will the HR function live up to the hoopla and turn into a source of competitive advantage, or will it collapse under its own weight as more and more responsibilities are piled on to it?
The paradigm shift
Today’s global economy is slowly waking up to the fact that harnessing human assets is critical for organisations striving to function at a higher level and achieve perpetual success. This calls for integrating human capital considerations into daily decision-making and planning. Consequently, HR strategy right from benefits to training to retention needs to be in sync with overall business objectives.
By virtue of its unique position to the workforce, HR has earned a prominent seat at the executive table. The HR fraternity is gaining importance and moving to a wider role as a ‘strategic business partner’ in line with other core functions. It is no longer a mere reactive implementer, but plays a more proactive role participating in the strategy formulation process.
Strategic Human Resource Management has been defined as, “The linking of human resources with strategic goals and objectives in order to improve business performance and develop an organisational culture that fosters innovation and flexibility”.
Today’s global economy is slowly waking up to the fact that harnessing human assets is critical for organisations striving to function at a higher level and achieve perpetual success. This calls for integrating human capital considerations into daily decision-making and planning. Consequently, HR strategy right from benefits to training to retention needs to be in sync with overall business objectives.
By virtue of its unique position to the workforce, HR has earned a prominent seat at the executive table. The HR fraternity is gaining importance and moving to a wider role as a ‘strategic business partner’ in line with other core functions. It is no longer a mere reactive implementer, but plays a more proactive role participating in the strategy formulation process.
Strategic Human Resource Management has been defined as, “The linking of human resources with strategic goals and objectives in order to improve business performance and develop an organisational culture that fosters innovation and flexibility”.
HR repositioning
Whilst organisations are accepting (albeit grudgingly) the HR function as a partner in business operations, HR managers can no longer afford to be in the middle of the road. They have to rise to the bait and contribute to business improvement helping organisations achieve their goals.
Leading consultant, Sidharth Chaturvedi exhorts the new leadership role as, “A strategic perspective of HRM requires simultaneous consideration of both external (business strategy) and internal (consistency) requirement leading to superior performance of the firm”.
To become a true business differentiator, HR should not only be involved in policy-making and implementation responsibilities, but also translate them into HR priorities. They should design HR initiatives and practices that synergise business strategies with employment planning. They should realise that they are well placed to recognise and exploit external opportunities.
HR departments also have to add value to the business by mobilising and managing the most important resource – its people. They should work towards effectively utilising the full potential of their human capital to gain a performance advantage. They should shape critical HR interventions for tapping the organisation’s core competencies, maximising current capabilities, identifying future staffing needs and creating organisational abilities.
Whilst organisations are accepting (albeit grudgingly) the HR function as a partner in business operations, HR managers can no longer afford to be in the middle of the road. They have to rise to the bait and contribute to business improvement helping organisations achieve their goals.
Leading consultant, Sidharth Chaturvedi exhorts the new leadership role as, “A strategic perspective of HRM requires simultaneous consideration of both external (business strategy) and internal (consistency) requirement leading to superior performance of the firm”.
To become a true business differentiator, HR should not only be involved in policy-making and implementation responsibilities, but also translate them into HR priorities. They should design HR initiatives and practices that synergise business strategies with employment planning. They should realise that they are well placed to recognise and exploit external opportunities.
HR departments also have to add value to the business by mobilising and managing the most important resource – its people. They should work towards effectively utilising the full potential of their human capital to gain a performance advantage. They should shape critical HR interventions for tapping the organisation’s core competencies, maximising current capabilities, identifying future staffing needs and creating organisational abilities.
Being a winner
In essence, strategic HR is all about facilitating and enhancing organisational goals. Towards this end, HR should:
• Harness its knowledge of the company’s internal strengths and weaknesses to supply competitive intelligence for planning purposes.
• Identify business needs and step up to the strategy table with new ideas
• Apply cutting-edge thinking to engage company executives in thought-provoking questions.
• Activate resources that support the chosen business strategy and implement iteffectively.
• Ensure that the workforce is engaged, excited, energised as well as capable of responding to organisational objectives in an efficient manner.
• Stir people to action and develop the next-generation leaders from the rank-and-file.
• Leverage individual talent and collective competencies to invent sustainable and distinct competitive advantages.
As Good to Great author Jim Collins says, “It’s all about putting the right people on the right bus in the right seats at the right time”.
To wind up, top HR director, Dana Jervis highlights, “This powerful tool leverages significant opportunities for HR departments to get the job done in not only an acceptable way, but an exceptional way thus positioning them for…” you guessed it right, ‘strategic success!’
In essence, strategic HR is all about facilitating and enhancing organisational goals. Towards this end, HR should:
• Harness its knowledge of the company’s internal strengths and weaknesses to supply competitive intelligence for planning purposes.
• Identify business needs and step up to the strategy table with new ideas
• Apply cutting-edge thinking to engage company executives in thought-provoking questions.
• Activate resources that support the chosen business strategy and implement iteffectively.
• Ensure that the workforce is engaged, excited, energised as well as capable of responding to organisational objectives in an efficient manner.
• Stir people to action and develop the next-generation leaders from the rank-and-file.
• Leverage individual talent and collective competencies to invent sustainable and distinct competitive advantages.
As Good to Great author Jim Collins says, “It’s all about putting the right people on the right bus in the right seats at the right time”.
To wind up, top HR director, Dana Jervis highlights, “This powerful tool leverages significant opportunities for HR departments to get the job done in not only an acceptable way, but an exceptional way thus positioning them for…” you guessed it right, ‘strategic success!’
PAYAL CHANANIA
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