CASE STUDY: HR AS A STRATEGIC PARTNER:THE MEASUREMENT CHALLENGE

HRMMBA

Imran Ghaznavi

Introduction

Issues Much has been talked about HR’s role

today and it is a brutal reality that HR as function is under extreme pressure to justify its position and sphere of influence.

Most organizations view the HR department as an administrative function.

The senior management is generally skeptical of HR’s role in the firm.

What the case study is all about

Human Resource should be at the table not on the table

HR contribution towards the value creation should be measured

HR has to play a strategic role in the organization

HR must has the ability to align the employee efforts with the organization's overall vision.

How is it possible

We need to understand and develop the HR “Architecture” of the organization.

The HR Architecture has three basic components HR Function The broader HR system The resulting employee behaviors

Outcomes of HR ArchitectureTraditional HR attributes

Crucial HR attributes

Total Compensation Employee turnover Cost per hire %of staff with

appraisal Employee attitudes –

job satisfaction

Capable & committed Work Force

Development of essential employee competences or training systems

Above are also known as strategic HR drivers

HR creates value

Aliening every employees effort with the organization's overall vision

HR to shift from traditional administrative role strategic role Strategic assets keep organizations

competitive edge sharp for long haul, as they are difficult to copy.

However the impact of organizations strategy is difficult to see in short run.

Importance of intangible assets

New economic paradigm characterized by speed, innovation, quality, customer satisfaction has increased the importance of intangible assets like Brand recognition, Knowledge Innovation and Human capital

HR measurement system

Development of HR - measurement system That convincingly showcase HR’s impact

on business performance.

This is possible with properly developed HR architecture

Managers throughout the organization should understand how people create value and how to measure the value creation.

HR’s strategic Architecture

The HR Function •HR professionals with strategic competences

The HR System •High performance, strategically aligned polices and practices

Employee Behavior •Strategically focused competencies, motivations, and associated behaviors

HR Architecture

The continuum from the HR professionals with in the HR function to the system of HR-related polices and practices, through the competencies, motivations and associated behaviors of the firm’s employees

The HR Function

The foundation of a value-creating HR strategy – is a management infrastructure that understands and can implement a firms strategy.

Technical HRM – HR basics R, C &B Strategic HRM- Delivery of services

which directly support the implementation of organizational strategy.

HR System

The system is the lynchpin of the HR strategic influence.

High Performance Work System (HPWS) Each element of the HR system is

designed is to maximize the overall quality of human capital throughout the organization.

Develop strategies that provide timely and effective support for the skills demanded

Comparison of High and low Management Qualities

The firms with most effective HR management system has: Dramatically high performance Employees turnover was close to half Sales per employee was four time higher The ratio of market value was more

then three times in large high performing companies

Strategic employee behavior The productive behavior of the

employees plays vital role in the success and growth of the organization.

HR need to continuously monitor the internal environment and create an environment which jazz up every individual and display a positive behavior in building good will for the organization

Conclusion

The CEO’s and the senior management has to bring HR at strategic table.

HR managers need to take lead in aligning the HR strategies towards accomplishment of organizations goals.

Develop effective measurement system for the HR contribution towards the organizations profit maximization.

All this has to be done through systematic thinking.