Introduction
The current business world is facing increased global competition and rapid changes in technology, leading demand for talent to emerge as a vital resource for any company. The success of an organization revolves around increasing the extent connected to its capacity of managing the human capital on a constant basis, including acquiring, maintaining, and developing talent. The significant changes in the crucial role of human resource are requiring the human resource function to boost its effort (Gorman, 2015). The HR function should emerge as a strategic player within an organization, participating in the development of the organization and organizational-level decision making. The emphasis of the HR function should shift from administrative and operational issues to fostering capacity development and organizational learning. Additionally, the entire organization should ensure that it takes part and develops growing interest in HRM (human resource management), which is a new source of success for organizations. In this case, it is vital to note that approaching human resource management could resolve around two distinct ways (Ulrich, 2018). For instance, the human resources employees might handle just administrative duties, such as facilitating paperwork that targets hiring new employees and issuing the compensation insurance of the employees. The HR employees might decide to serve as strategic contributors to ensure that the company realizes success. Transforming the function of HR to one of a strategic contributor can assist organizations to change their workforce strategies to an advanced level, hence boosting the human capital value. This kind of an undertaking would improve the human resource’s value, which would allow an organization to realize unique competitive advantages (Ingram, 2018). Thus, the paper discusses why it is important for HR management to emphasize on transforming from serving as primarily administrative to emerging a strategic partner.
Understanding the Need for Strategic Partner
Starting the mid-1990s, literature of HRM has emphasized on the growing need for HR function and HRM’s new warranted role as a strategic partner. Practitioners and researchers have offered evidence between the performance of an organization and strategic HRM undertakings, as well as the general change requirement in the role of the HR unit in diverse organizations. Form the evidence, the rather negligible SHRM (strategic human resource management) practices’ adoption has emerged as a surprise in the area of academics (Deb, 2009). In this vein, the major question that prevails is why HR functions are not attaining the intended strategic goals, even when having good intents.
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Whereas a growing number of companies realize the vital role that SHRM could play in committing resources to change in HRM, they fail to succeed during the transformation process. HR functions fail to realize the expected roles, or the anticipated roles fail to meet the requirements of the organization. In this case, a considerable number of researchers emphasize on the need for defining the functions of HR in a strategic manner together with the influence it would have toward an organization, although the process of transformation lacks sufficient attention. From a traditional perspective, the role played by HR functions revolves around administrative duties while no focus is directed to strategy or the business (Gorman, 2015). To institute SHRM thinking to a company, it would be crucial to ensure that the HR function emerges strategic while avoiding most of the administrative and operational roles played. SHRM implementation lacks sufficient attention in literature. However, it appears to be a critical issue in organizations, which continuously experience challenges in making their HR functions strategic (Reddick, 2011). In this case, organizations need to emphasize on ways in which they can transform their HRM to allow them to realize strategic HRM successfully.
Forces behind the Need for Strategic HRM Capability
For the business environment, it is while it has been experiencing continuous change. In the present society, the pace at which organizations are realizing change is anticipated to accelerate. Several megatrends show indications of continuing to influence the present organizational environment. These mostly comprise of advancement in technology, globalization, the shifts realized from products to services (Reddick, 2011). In the case of globalization, for example, it has made it possible for everybody to access all markets and resources globally via increased access and mobility. This has led to an increase, while it will keep increasing the competition levels, and the isolated markets will disappear slowly (Younger, Ulrich, Brockbank, & Ulrich, 2012). Globalization led the rivalry for scarce resources to become fiercer, mostly because accessing them is not restricted to particularly group of companies in certain geographical locations.
Additionally, advancements in technology have changed the manner in which the business world operates in numerous ways. Operational efficiency has grown mostly because technology has automated numerous trivial work duties. Because of increase in efficiency and eradication of repetitive work, the tasks that humans need to undertake have become increasingly demanding. The required skillsets are combining technology skills and industry specific skills, mostly because all work seems to relate to technology in various aspects (Hendry, 2012). Moreover, technology has allows globalization to increase, thereby weakening geographical distance significance, especially via interactive tools of communication. The move from products to services also serves as an undoubted trend among industries. The work that humans undertake is starting to emphasize on knowledge –based services. In the event of developed nations, for example, approximately 80 percent of work undertaken lies in the service sector (Younger, Ulrich, Brockbank, & Ulrich, 2012). The advancements in technology have also contributed to these shifts, which are making it possible to produce various physical products without requiring significant human resources amounts.
To allow organizations to survive as well as thrive in the rapidly changing world, they need to embark on instant changes. The major things that can allow companies to realize success in the present setting comprise of flexibility, speed, and continuous self-renewal. Even while these forces appear independent of each other, they come from one source, which is a skilled and motivated workforce. For all organizations, they are competing to attain vital resources to allow them to succeed in their operations (Younger, Ulrich, Brockbank, & Ulrich, 2012). In the viewpoint of experts regarding competitive advantage, it is only possible to attain sustained competitive advantage via rare, valuable, non-substitutable, and inimitable resources. The resources that are competed for have witnessed changes during the years, while they might be tangible (such as production equipment, money, contracts, land, and licenses) or intangible (including knowledge, organizational culture, and trust) (Gorman, 2015). The major resources in companies have played a critical role in terms of shaping organizational culture. For example, the funding crisis witnessed in the 1970s served as a major event that transformed the role of a CFO (chief financial officer) from a “bean-counter” to the CEO’s (chief executive officer) strategic ally. The CIO (chief information officer) has witnessed role changes in the prior years with the growing role of technology in the success of businesses (Younger, Ulrich, Brockbank, & Ulrich, 2012). In this vein, it is evident that CIOs and CFOs have become vital in terms of leading strategic change within the business setting.
In the current society, the fight regarding scarce resources is playing a crucial role in shaping organizational structures, including “the war for talent.” The growing rivalry for talent will continue increasing while the pool of required talent will keep shrinking because of the reducing birth rate in advanced nations. This takes place at a time when work that revolves around knowledge is becoming increasingly complicated while requiring new talents that have the needed skills (Cascio & Boudreau, 2012). Regarding “the war for talent,” it stresses on the need for HRM in organizations that wish to realize undisputed change. The days when the HR used to perform causal administrative duties have ended. In this case, the HR function needs to focus on adopting the strategic partner role to prepare organizations for the war for ideal talent, which is becoming increasingly tough (Younger, Ulrich, Brockbank, & Ulrich, 2012 ) . As the war continues, the Chief of HR will be required to serve as a vital decision maker as well as the organization’s strategic force, such as CIOs and CFOs.
Importance of HRM Transformation
Whereas clarity prevails regarding the need for HR function to serve as the major area of emphasis within an organization and adopt a strategic role, organizations have failed to implement strategic HRM in their practices adequately. Even while certain companies have sufficient skills in strategic HRM practices, a large number of organizations still perceive HR functions as administrative and operational. A considerable body of research reveals that a connection prevails between the financial success of an organization and strategic HRM practices. However, the existing evidence has not accelerated real strategic HRM adoption (Hendry, 2012). Various companies that have embarked on such initiatives have embarked on efforts aimed at renewing the role of HR, although they have failed in the endeavor.
Even while the growing need for HRM is known, only limited studies reveal information related to real SHRM implementation. The major question that most companies ask revolves around how they would get there (Younger, Ulrich, Brockbank, & Ulrich, 2012). This question remains broadly unanswered. Various experts claim that tremendous research has been utilized in illustrating the role of HR function and the effect it would have on the performance of businesses. For the academic world, it is presently starting to emphasize on the issue of implementation (Cascio & Boudreau, 2012). However, no sufficient attempts have been carried out to facilitate in transiting to strategic HRM to facilitate in identifying the relationship that exists between the forces influencing the transition process.
Significant emphasis has been directed to the strategic role that HR function plays, although this leads to the practical side of HRM to go unnoticed. The HR function requires discarding the administrative role to allow it to emerge as strategic. Significant HRM work revolves around the organization’s hands as well as the line managers. However, no sufficient research exists regarding how change in HRM would be implemented (Cascio & Boudreau, 2012). Additionally, only limited studies assess the areas of administrative work that need transferring to an organization, in line with the manner in which transferring the offload would be accomplished successfully.
An additional area that researchers suggest reveals that the realized practices by HRM might differ from the expected practices. In this case, it is essential to emphasize more on the process of implementation as well as assessing the real practices in place, as opposed to concentrating on the target model. However, only a limited number of scholars have compared organizations and determined the forces that forecast a corporation having strategic HRM abilities. Additionally, several clear issues as well as hindrances to integrating HRM successfully have not been noted. Literature concerning the challenges and issues in transformation to HRM is underdeveloped when likened to the effect of the issue (Ingram, 2018). Overall, significant demand prevails in literature for establishing understanding on ways of integrating HRM with strategic management to allow organizations to realize success in today’s competitive business environment.
Example Strategic HRM Transformation
In transforming from being primarily administrative and operational to a strategic partner, Marriot International, Inc. serves as an ideal case. The organization has deployed the gamification approach as a part of its strategic HRM initiatives. Gamification refers to a concept that utilizes the game theory mechanics, theory, and game designs with the goal of engaging and motivating individuals to realize their goals. The concept originated during the late 1800s, while it initially served as a reward system, which companies adopted with the goal of encouraging individuals to purchase from them while establishing loyalty (ICMR India, 2018). In today’s computer age, educators, marketers, businesses, and policy makers have followed a similar concept and are utilizing the systems as a means of gaining instant rewards and feedback to allow them to entice potential purchasers.
For Marriot International, it serves as the biggest hotel company globally. It established Facebook social game referred to as ‘My Marriot Hotel in 2011.’ The goal of the game was to allow the company to hire best candidates. Marriot created the game while collaborating with Evviva, a company that develops corporate games. The game’s concepts resembled the ones of Farmville game. The individuals playing the ‘My Marriot Hotel’ had the opportunity of developing their individual restaurants, purchase ingredients and equipment on budget, employ and train workforce, as well as serve guests. They would lose points in the event of poor service and earn points when customers were happy and satisfied (ICMR India, 2018). Marriot posed the game on its Facebook page.
The game allowed Marriot to attract a considerable number of individuals who had interest in hospitality/service jobs. The ‘My Marriot Players’ also offered the players an opportunity for clicking on the “Do it for real” button, which directed them to the company’s career page. The organization also experimented with gamification with the ‘Xplor’ game, which allowed the customers to visit five gateway cities while they also received rewards upon winning. The organization served as the first in the hospitality sector to leverage on social media’s growing popularity to assist in generating interest in careers within the hospitality sector (ICMR India, 2018). It also created distinct apps, which would allow customers to cater for their differing needs.
The Facebook game, ‘My Marriot Hotel” targeted young people based in developing nations, such as China and India, since the hospitality sector in these countries was unpopular. This initiative served as one of Marriot’s recruitment approach, which aimed at bypassing the conventional recruitment approach, while at the same time testing the prospective employees’ real talents by developing a virtual workplace. It would also check the candidate’s suitability for positions in the hospitality sector. From here, the players would be directed to the company’s official recruitment page, where they would submit their resumes for the positions they sought. In this case, when looking at Marriot’s gamification approach, it served as a strategic HRM approach aimed at allowing the company to determine the candidates that would match the exact needs of the business. The rigorous processes that the game subjected to the players made it possible to determine the people who had sufficient talent in the sector (Lopez, 2011). In this case, the company managed to hire the best talent, which pled a critical role in improving its overall competitiveness in the hospitality sector.
Conclusion
In conclusion, the HR function is crucial to the operations of every organization. Nonetheless, the present organization features numerous technological advancements, globalization, and shift from products to services. In addition, HR function mostly emphasizes on administrative and operational capabilities, without significant emphasis on strategic capability. Even while many organizations understand the important role that strategic HRM would play in terms of improving their operations, they have experienced challenges in deploying it. The ones that have managed to implement strategic HRM have been able to realize success while ones that have not experience hindrances when it comes to coping with the different trends that prevail in the marketplace today. Furthermore, no sufficient research prevails concerning the influence of strategic HRM and business performance. Nonetheless, due to the growing emphasis on the need for strategic capability as well as the potential it shows for business growth, organizations should focus on implementing it. It would play a critical role in terms of allowing them to remain relevant in the marketplace while at the same time coping with the numerous hindrances they might experience in their operations.
References
Cascio, W. F., & Boudreau, J. W. (2012). Short introduction to strategic human resource management. Cambridge: Cambridge University Press.
Deb, T. (2009). Managing human resource and industrial relations. New Delhi: Excel Books India.
Gorman, C. (2015). Why strategic HR matters and how HR can become more strategic. Retrieved from https://www.greatplacetowork.com/resources/blog/why-strategic-hr-matters-and-how-hr-can-become-more-strategic
Hendry, C. (2012). Human resource management. Abingdon: Routledge.
ICMR India. (2018). Beyond resumes: Marriott using gamification to recruit top talent in hospitality. Retrieved from http://www.icmrindia.org/casestudies/catalogue/Human Resource and Organization Behavior/HROB172.htm
Ingram, D. (2018). Why is it important for HR management to transform from administrative to strategic contributors? Retrieved from https://smallbusiness.chron.com/important-hr-management-transform-administrative-strategic-contributors-10236.html
Lopez, J. (2011). Marriott makes Facebook game for recruitment. Retrieved from http://www.gamification.co/2011/06/24/marriott-makes-facebook-game-for-recruitment/
Reddick, C. (2011). Public administration and information technology. New York: Jones & Bartlett Publishers.
Ulrich, D. (2018). A new mandate for human resources. Retrieved from https://hbr.org/1998/01/a-new-mandate-for-human-resources
Younger, J., Ulrich, D., Brockbank, W., & Ulrich, M. (2012). HR from the outside in: six competencies for the future of human resources. New York: McGraw Hill Professional.
