1. Evolving Role of HR 1

2. Possible Roles of the HR Function
Strategic Focus
Change Agent
Strategic Partner
Systems
People
Administrative Expert
Employee Champion
Operational Focus

3. Traditional vs. Strategic HR
Traditional HR
Strategic HR
Responsibility for HR
Staff Specialists
Line Managers
Focus
Employee Relations
Partnerships
Role of HR
Transactional
Transformational
Initiatives
Reactive & Fragmented
Proactive & Integrated
Control
Bureaucratic
Organic
Key Investments
Capital & Products
People & Knowledge
Accountability
Cost Center
Investment Center

4. A New Mandate for HR
Become a partner with senior and line managers in strategy execution.
Become an expert in the way work is organized, delivering administrative efficiency to ensure that costs are reduced while quality is maintained.
Become a champion for employees, representing their concerns to senior management and working to increase employee contributions.
Become an agent of continuous transformation by shaping processes and organizational culture.

5. Barriers to Strategic HR
Short-term mentality
Lack of HR skills and strategic mentality
Lack of appreciation for what HR can contribute
Difficulty in quantifying HR outcomes
Changing responsibility for line managers

6. Ensuring Fit Internal fit External fit
The situation in which all the internal elements of the work system complement and reinforce one another.
External fit
The situation in which the work system supports the organization’s goals and strategies.

7. Human Resource Management

8. HR Alignment
Strategy
INTERNAL FIT

9. High-Performance Work System
A specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility.
Systems composed of many interrelated parts that complement one another to reach the goals of an organization, large or small.

10. Underlying Principles
Shared Information
Underlying Principles
Shared
Decision-Making
Knowledge Development
HPWS
HPWS
Performance-Reward Linkage
HPWS
HPWS

11. Employee Involvement Power Information Knowledge Rewards
Authority to change job processes?
Self-managed teams
Information
Is business information shared?
Does the job involve performance feedback?
Knowledge
Does the employee have proper training for the job?
Rewards
Are rewards contingent on individual performance?

12. Employee Involvement
Locating work decisions at the lowest level possible.
Power
Information
Rewards
Knowledge and skills
EI in the Fortune 1000
150 Companies
1999 Survey
Low EI
Med EI
High EI
ROA
9.3
9.7
11.2
ROI
14.2
15.7
17.1
ROE
23.4
20.7
26.6
Market Return
-.7
2.8
11.9
Market/ Book .7
1.3
1.8
Lawler, Mohrman & Benson, 2000