There was a time when the bulk of human resource activity was in processing the payroll, so that the human resource section formed part of the Finance and Administration department.
In fact in smaller organizations today, there is simply no human resource unit to speak of. Normally, the owner handles human resource concerns and assigns the administrative function to a clerk. The importance of the human resource function has become evident especially with the onset of global competition.
Know their roll has has been changed.
Not only do human resource managers have to think more strategically and in step with corporate planning managers, they have had to address real and hard issues about the impact of intense competition on employment stability.
It is one thing to think with executives on how the human resource section can support corporate activities. It is another to actually implement cost-savings policies with regards employment.
Does the company’s plant modernization entail the acquisition of computerized and automated equipment that the current workforce doesn’t know how to operate? Does the firm intend to establish a subsidiary in another countary, and if so, what skills and knowledge will be needed by the people earmarked for overseas postings?
Today’s HR managers must equip themselves to grapple with these questions, and many others. Global competition compels organizations to run more efficiently. An organization that manages its resources well is able to minimize costs allowing either higher profit margins or greater flexibility and still be able to attain acceptable levels of returns. For many organizations, salaries and benefits form the bulk of operating expenditures. Thus after tightening belts elsewhere, trying to cut corners where possible, the organizations have to consider downsizing or shutting down overstaffed operations.
For some companies, retrenchment or closure goes against the very grain of social conscience. Filipino entities for example work within communities and support the local economy. The moral obligation to stay open is thus strong but it is at the expense of efficiency.
Moreover, there are social costs that are borne by the entire society with rising unemployment and underemployment rates.
To guard against the downside of global competition, the human resource managers must be more proactive in recruiting and maintaining a responsive and efficient work force.
Planning should start at the early stages so that organizations do not bloat needlessly. Human resource managers must be able to map out human resource strategies such that flexible, dynamic employees are attracted, selected and then trained and motivated to be more productive than the competition.
A strategic human resource manager goes beyond human resource mastery. Additional competencies require business mastery and change mastery as well. A good understanding of the business and its environment provides the perspective on how best to manage employees so they are responsive to external stakeholders and thus serve them better. On the other hand, capability in change management allows human resource managers to adeptly move
organizations to adjust better to changing business needs with creativity and innovativeness. A better-equipped human resource manager is then able to manage the most expensive business
Human resource managers are no longer administrators or simply implementors. They should be recognized as strategic partners. Only then can they function well to help top management especially in a climate of economic uncertainty.
I am very much sure that you will be satisfied with the above.
17th November 2012 From India, New Delhi
I don't know which domain you were point out.
With regards to the views shared by Mr. Bhardwaj Ramesh, unless and until HR PROFESSIONALS possess in-dept knowledge about HRM and hands-on experience in various modules & using appropriate tools, they will be doing a clerical job as what i seen in my ex-organisation.
A HR Professional must possess various skills/competencies to qualify himself as HRM PROFESSIONAL.
A HR Professional must dare to convince TOP MANAGEMENT about the FACTS & FIGURES associated with ATTRITION, TALENT MANAGEMENT, COMPETENCY DEVELOPMENT, SUCCESSION PLANNING, RECRUITMENT STRATEGIES, REWARD MANAGEMENT rather just nodding their heads, and dancing to their tunes just to save their job,
Prior to qualify as Strategic Partner, they must synchronize themselves with various departments, extend their complete UNBIASED SUPPORT to various departments as a TRUE HRM PROFESSIONAL.
Kindly do correct me if i am wrong.
With profound regards
17th November 2012 From India, Chennai