Hello Sunayana! You have brought up a very relevant question. Ten years back, we wouldn't have imagined HR to be a business partner. Today, the talk is of HR becoming a strategic partner or strategic driver.
Well, as I see it, there is going to be a lot of change in the days to come. Look at the manufacturing sector; its importance will decrease with more and more outsourcing, automation, and other improvements. Labor intensity is going to decrease, and so will unskilled operations. All menial tasks will likely go to professional agencies, etc. Consequently, unionism will decline. Hence, the industrial relations part of HR is going to lose much of its sheen. With many HR activities being offloaded, thanks to IT, the number of regulars in the HR department will be far fewer.
There is going to be a boom in the service sector, and more opportunities will be added for employment generation. However, margins will be less, and the real challenge will lie in cutting costs.
Overall, as I see it, the real scope of value addition in HR would lie in integrating employee aspirations with the growth of the enterprise. Those who can do it well will outperform the competition, and the misfits will slowly fade away. So the focus is going to be on the softer aspects of HR like motivation, morale, etc.
Sunayana, thanks a lot for activating the grey cells.