27 May 2022

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The Human Resource as a Strategic Partner

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Academic level: College

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Pages: 8

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The human resource is a functional area in an organization that was traditionally mandated to undertake the role of hiring and firing of the employees. In the 1920s, the personnel administration field was concerned mostly with the aspects relating to the staff, and it included, recruitment, training of workers, evaluation, and compensation. The field, however, lacked a unifying paradigm. It also did not put into consideration relationships in the employment practices and how it affected the overall performance of the organization. 

As a result of the competitive pressure in the American businesses which was caused by changes in technology, globalization, and deregulation, there was a need for firms to participate in strategic planning. This process was necessary for the organizations to anticipate future environmental conditions. Strategic planning was also formulated by the HR department to align its objectives and goals to that of the organization and promote effectiveness in governance. The HR performs both operational and administrative functions in an organization. These activities, however, are well integrated and aligned to the other actions undertaken for the benefit of the whole organization through strategic management 

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Strategies are tactics and actions which managers and other individuals in authoritative positions take to achieve the goals and objectives of the organization. It is also the sense of direction which guides the firm in how to conduct its various activities to attain a desired purpose in the future. During the strategic process, the different functions and departmental goals are integrated and aligned with the overall aims and objectives of the institution ( Barney & Wright, 1998) . The human resource department has its own unique goals and plans that it seeks at realizing at the end of a particular period. It is therefore very essential for the HR managers to put in place strategic measures and use strategic management to meet its expected results tactfully. 

Strategic management involves the application of acts and decisions by managers by having a thorough knowledge about its environment while looking into the future. Managers who apply this form of management are expected to analyze the internal and external environment of the business before making decisions. Additionally, they should be having a future perspective of where they want their organization to be and anticipate for unforeseeable contingencies. These analysis and studies are done for instance through a SWOT analysis. 

Unlike the typical operational management in the human resource, managers can best utilize the strength and opportunities presented to the organization to overcome its weaknesses and threats. This scrutiny will help the organization to gain a competitive advantage over the other firms since they know what to develop and measures to undertake. The strategic management can be done for the whole organization or divided into functional strategies. For example, Google Inc., one of the giant technology company has incorporated strategic management in its human resource and has the department as a strategic partner focusing on how to achieve the best operations for the enterprise. 

It is indispensable for the Human resource department to be a strategic partner to the organization. A firm will be able to achieve numerous benefits that are related to the vital functions which will be undertaken by the functional unit. This functional-based strategy enables the company to take advantage of the decisions made in these units which in turn is advantageous and affects the overall performance of the organization. For instance, it makes well-thought of actions regarding the human capital to ensure to has a positive impact on the other functional areas of the business. In Google company, the management team has set up an employee-centered culture and aims at satisfying the company's core operations by hiring the best workers and also having a high retention rate of its employees. Tactics which have been taken up by this functional area in the organization has led to the sprouting of innovation which is then embodied in its culture ( Vise, 2007) . The strategic management employed in this unit is thus of great value to the other levels of the organization. 

When undertaking the Human resource functionalities, it is important for the HR specialists to act as strategic partners as they are involved in different areas of the organization. This team participates in the management process, and are also participants in the administrative process. In any typical organization, strategic management involves various activities and operations. This process includes: 

Environmental scanning by the management team to acquire relevant information to be used in the evaluation process. 

Strategy planning and formulation to determine the short term and long term objectives to be achieved by the firm. 

The policies and plans formulated are then implemented and put into action by structuring the organization and making other decisions such as human capital requirements. 

Evaluation of the strategies and their attainability is analyzed. The HR as a strategic partner is part of the whole process (Pearce et al., 1997). 

To become effective strategic managers and to have an outstanding department, the HR leaders are expected to possess various qualities that will help them achieve effectiveness in management. They should be able to view the unit from a wider perspective and have a clarity of thought on how to undertake actions that will be of benefit to the whole organization. These managers should also have business acumen. It will enable them to have an insightful assessment and a depth of perception about the environment that the firm operates. These managers are also expected to be risk takers to be innovative. These values will be of great benefit to the entire organization since they will achieve maximum productivity from the employees. The output of a workforce has a significant impact on the performance of a firm. These benefits are only accrued to an organization that has the human resource as a strategic partner. 

The HR department has traditionally been viewed as being entirely an operational area whose functions do not go beyond hiring and firing of workers. However, when the department is seen as a strategic partner, the integral component of this function widens to become a part of the planning process concerning the human capital needs and putting in effective leadership efforts that impact on the entire firm. It is impossible to effectively implement strategic plans without employee involvement and other human resource input. This department brings much value into the attainment of the goals of the organization as it involves forward-thinking principles and the business acumen practiced by HR strategic leaders. 

Additionally, it is important for the human resource to become a strategic partner in the firm since it helps strike a balance in the business. Plans and strategies that were initially developed based on organizational capabilities linked to its production and revenues did not consider the other resources such as human capital which is vital for the success of an organization. At Google Inc., the human resource department is now referred to as the "people operations." The organization has transformed his unit from traditionally relying on relationship building to having in place data based decisions as one of its HR success tactics. The result of the workforce is now satisfying as an employee at the company is estimated to generate a profit of $200,000 every year ( Vise, 2007) . 

By transforming the HR's subjective decision-making process to that of being a strategic partner through the use of data analysis, Google has been able to accrue various benefits and changed the way of handling its functional responsibilities. For instance, through conducting research, Google has realized the importance excellent and efficient managers has on its workforce. From the data analyzed, it was observed that managers who express interest in employees and provide personalized feedback are highly valued by workers resulting go better output. 

The company also uses Google's People and Innovation Lab (PiLab) to conduct internal experiments to determine the best way of managing people, creating a productive work environment and finding out ways of rewarding employees and providing them with a healthy working environment ( Vise, 2007) . These analysis and other predictive methods used by the organization has helped the firm to predict workers' management obstacles opportunities that they possess. It is hence a way of planning and using tactics which helps the company to proliferate in the human resource department and translating its output to the entire firm. 

Another importance of an organization having the Human resource as a strategic partner rather than being operational and administrative is that the firm will be in a position to critically Measure its progress in the course of business. By having strategic departmental objectives and being bombarded with relevant information, the managers are in a position to determine the direction which the department is heading to and if they are aligned with the goals and mission of the company. Evaluation is done through the use of techniques such as the scorecard. Addressing of operational issues do not take integral organizational components into consideration and its interrelatedness. Through the strategic partnership, the HR managers can work with the other senior executives to have an overall perspective and the various interrelationships in different components to set up an optimal strategy. 

It is through these interrelationships that strategic management allows for the organization to make informed choices regarding conflicting interests in different departments. Through the strategy formulation process, the various functional areas determine the opportunities they want to pursue. It can hence give room for innovation to be undertaken by the managers and the employees. It is also through the strategic management process that new products, services, and markets are identified and the activities that will result in a competitive advantage ( Walker, 1992) . For example, strategic differentiation focuses on how to deliver a unique value proposition for a better understanding of the ever-changing market needs and requirements of customers. 

Additionally, a human resource department that is a strategic partner to the business is more beneficial to the organization as it enables the employees to have a wider perspective and a better understanding on how their job and responsibilities best fit into the plan of the firm. Workers under the human resource department are also able to determine how to co-relate with each other and even interact with their superiors and be part of the decision-making process. The abilities of employees can be maximized through proper governance. 

This type of managing the business gives workers the prospect of understanding environmental changes and the most appropriate response to make when faced with difficulties in the absence of their superiors. Proper decision making is possible since the direction in which the organization is being driven is exclusively communicated to employees. It is from the mission and vision of the business that the smaller and short-term departmental objectives are identified and well relayed to workers (Pearce et al., 1997). They will carry out their duties in a way that will be of most benefit to the organization. 

By operating as a strategic partner, the human resource can secure funding and participate in the resource allocation process. It is of importance since by prioritizing, the department can gain resources that it will use to achieve its desired goals efficiently. For instance, a suitable compensation package is possible through this strategy. The Proper rewarding system acts as a motivator to employees. This will eventually boost the performance of workers who are motivated by monetary rewards. Employees who consider themselves as part of the organization by being valued, involved in decision-making and compensated handsomely will make decisions that are selfless and likely to benefit the entire organization ( Walker, 1992) . Google company has been able to reap this benefit since they are known to be having good rewarding schemes that are aimed at promoting innovation within the firm. Employees are given bonuses for inventing new ideas and for providing solutions to the company. 

In conclusion, a firm that undertakes strategic management is more likely to prosper in comparison with one that applies traditional management. Efficient management of employees is crucial as the human effort is required in substantially all parts of the organization. It is hence important that the human resource department which is mandated with the function of managing the welfare of workers be deeply involved in the overall managerial and decision-making process. The plans made in the organization should consider how it can be affected by poor employee management. For a firm to achieve better performance and increase its value, it will be substantial for the organization to put in place measures that will enable its human resource department to become a strategic partner. 

References 

Barney, J. B., & Wright, P. M. (1998). On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management (1986-1998) , 37 (1), 31. 

Boxall, P. (1998). Achieving competitive advantage through human resource strategy: Towards a theory of industry dynamics. Human resource management review , 8 (3), 265-288. 

Lawler III, E. E., & Mohrman, S. A. (2003). HR as a strategic partner: What does it take to make it happen? People and Strategy , 26 (3), 15. 

Pearce, J. A., Robinson, R. B., & Subramanian, R. (1997). Strategic management: Formulation, implementation, and control . Chicago, Illinois: Irwin. 

Ulrich, D., Brockbank, W., Yeung, A. K., & Lake, D. G. (1995). Human resource competencies: An empirical assessment. Human Resource Management , 34 (4), 473-495. 

Vise, D. (2007). The google story. Strategic Direction , 23 (10). 

Walker, J. W. (1992). Human resource strategy . McGraw-Hill. 

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