Human Resources Strategic Direction Essay

1540 words - 6 pages

Human Resources Strategic Direction

The decisive difference in the business climate of any organization is determined by strategy. A successful execution of a business strategy, being the ultimate goal, if inclusive of the Human Resources Department, then like all other departments within the organization will be strategy-driven. Human Resource’s future, by understanding the paramount importance of human and intellectual talent, is on the verge of becoming seen as more of a strategic business partner within many organizations today. Organizations are beginning to understand the validity of tying human capital into the critical skills, knowledge, and competencies needed to be competitive. This paper will attempt to show. What I believe the future of Human Resources will be. No longer solely implementing policies and programs, perceived only as an organizations administrative tool. However will eventually be seen as a legitimate, strategic, business partner.

Strategic vs. Benchmarking

Before looking at what the future of Human Resource Management (HRM) may hold.
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It is important to understand the difference between HR as a strategy and organizational benchmarking. Strategic HRM is the linking of HR, with the strategic goals and objectives of an organization. Strategic HRM is a partner in the formulation of the company’s strategies as well as in the implementation of those strategies through HR activities, i.e. recruiting, selecting, training, and rewarding personnel, “HR professionals should judge their performance relative to their firm’s own strategy rather than the HR efficiency of other organizations” (Becker, Huselid, 2003, p. 58). This is an effort to improve business performance, thus developing organizational culture, “Strategies are successful when they create a unique value proposition for the consumer, and strategy execution is the most important determinant of strategic success” (Becker, Huselid, 2003, p. 58).

Whereas organizational benchmarking or the “diffusion of best practices in HRM, which are quite popular among HRM practitioners, can at best lead to competitive parity because they are not aimed at differentiation” (Chadwick, 2003) only recognizes HRM in a partnership role, a commodity, or tool in the strategizing process. However, when viewed as a commodity and cost becomes an issue. HR becomes an easy target for an organization looking for cost containment and as a result, makes HR easy to get rid of, “In contrast to the strategic HR framework we propose, no published research supports a relationship between typical HR performance benchmarks and ultimate firm performance” (Becker, Huselid, 2003, p. 59).

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The Future

The future of HR in organizations will depend heavily on its ability to draw a clear distinction between the professional HR practices based on standards and the decision science of a talent market. Whose support becomes important to the strategic planning of the...

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