achieve their goals. Some practices include hiring strategies, training programs,
feedback systems, and performance-based pay.
Many say that "people are a company's most important asset." This means that
employees are crucial for a company's success and its ability to stay ahead of
competitors. However, even though people are seen as vital, the Human Resources
(HR) department often doesn't have much say in the big decisions within a company.
Sometimes, HR is mostly involved in administrative tasks that could be done by other
external parties at a lower cost.
One reason for this might be that many HR managers aren't well-versed in business
matters. They might not fully understand how employees contribute to a company's
goals. Another reason could be that HR focuses too much on efficiency (doing things
quickly and cheaply) rather than on creating real value for the company. For
instance, an HR manager might boast about providing a lot of training hours to
employees, but they might not know if these trainings actually helped the company in
any way.
Additionally, HR sometimes tries to treat everyone the same way, using standard
rules and pay scales. This can lead to average performance becoming the norm
instead of encouraging employees to excel. Lastly, some senior executives see HR
as only dealing with 'soft' matters like organizing team events, which makes it harder
for HR to be taken seriously in strategic decision-making.
Overall, many agree that employees are crucial for a company's success, but there's
doubt about how well HR manages them. HR needs to focus not only on routine
tasks but also on helping employees add real value to the company's goals.
1.3. The main message (spoiler alert)
In this course, we'll discuss how companies can gain a competitive edge by aligning
HR practices with business strategies. We'll emphasize the importance of having HR
strategies that match the company's goals.
We'll argue that specific roles within a company are more critical for achieving its
goals. Therefore, it's reasonable to have different HR approaches for different
positions.
This course focuses on viewing HR as an essential part of business operations.
Students are expected to learn the language of business to understand HR's role in
company success.
We'll take the perspective of HR professionals, so the course won't cover advice for
job seekers. Instead, it'll concentrate on how HR contributes to value creation within
HRM Summary 2
, organizations.
The course won't cover 'soft' HR activities like planning events. Instead, it'll explore
how strategic HR management can enhance overall company performance.
1.4. Performance and well-being
We're not just focusing on how HR affects a company's performance. We're also
considering employees as individuals with their own experiences, values, and
connections both inside and outside the company.
Beyond viewing employees as tools to make a company more successful, we're
taking a perspective that values employees themselves. We believe that companies
have a social responsibility to care for their employees' well-being, not just because it
leads to better results (even though it does), but because it's the right thing to do.
So, while we're studying how HR impacts a company's success, we're also
emphasizing that companies should prioritize the well-being and development of their
employees for ethical reasons, not just for better business outcomes. Now, let's delve
deeper into the specific role of the HR manager.
1.5. HR roles and competencies
To understand what HR managers do and what makes them successful, we can look
at how they work and talk to them about their job. Another way is to ask HR
managers about their roles and skills through surveys, then see which ones are
linked to success for both individuals and companies. Dave Ulrich and his team
began this kind of research in 1987.
In 1998, Ulrich introduced the 'HR business partner' model, which shows four main
roles for HR professionals:
1. Administrative Expert: Handles day-to-day HR tasks like paperwork and
systems.
2. Employee Champion: Supports employees' needs and well-being for a positive
work environment.
3. Strategic Partner: Aligns HR strategies with overall business goals for long-term
success.
4. Change Agent: Drives and manages organizational change, helping with
transitions and improvements.
HRM Summary 3
, These roles help us understand what HR managers do and what skills are important
for their success in benefiting both individual employees and the company as a
whole.
1.5.1. HR as Administrative Expert
In this role, HR aims to make work more efficient and cost-effective without
sacrificing quality. Instead of just following rules, HR seeks ways to improve
processes using technology and smart strategies.
To show their value, HR doesn't just focus on their own tasks. They also look at how
work is done in the whole company. By finding ways to make various HR functions
HRM Summary 4
, more efficient, like hiring, training, and performance reviews, they build credibility.
Ulrich's ideas still matter because when HR proves it can save money, it gets a seat
at the table in making big decisions. For instance, an HR Director saved money for a
pharmaceutical company, which led to HR being involved in planning the company's
future strategies.
So, as administrative experts, HR works to improve efficiency in different parts of the
company. This helps HR earn credibility and be a part of shaping the company's
future plans.
1.5.2. HR as Employee Champion
In the role of being a champion for employees, HR focuses on speaking up for
employees' needs and interests to the higher-ups while also boosting employees'
dedication to their work and the company. HR wants to make sure employees feel
engaged because engaged employees are more committed and likely to give their
best at work.
To achieve this, HR needs to offer challenging tasks, chances for growth, and the
necessary support for employees to handle their job demands. HR also plays a
crucial role in understanding how job design affects how employees feel about their
work.
Additionally, HR acts as a voice for employees, representing their concerns to
management. For this to work well, employees must trust that HR genuinely supports
them and their rights.
In short, as employee champions, HR professionals work to improve employees'
skills, motivation, and opportunities to contribute effectively to the company. This
involves working with unions, encouraging employee involvement, good
communication, building trust, and monitoring job satisfaction and stress levels to
managing ‘psychological contracts’.
The "psychological contract" is the unwritten expectations
between employers and employees beyond the formal
agreement. When these expectations aren't met, it leads to
disappointment and reduced trust. HR, as employee champions,
must manage these expectations to avoid dissatisfaction and
employees wanting to leave.
HRM Summary 5
