The field of Human Resource Management has evolved over the last two decades to

Question

The field of Human Resource Management has evolved over the last two decades to become a business partnership within most organizations. What factors would you suggest led to the increase of business leaders now viewing Human Resources professionals as strategic business partners and not just administrative personnel? What experiences, positive or negative, can you share regarding your interaction with HR professionals and how does the training department factor into it?   Please support your answer with at least three reasons that justify your position.

Explanation / Answer

Factors that led to business leaders to view human resources professionals as strategic business partners and not just administrative personnel are:

- Globalisation- With the rising trend of globalising the business in international market, it becomes difficult to manage the market and activities from a central headquater. As the products, ideas and informations are moved to the market so has to be the people move to make the product global and understand the market needs. Thus it is the function of the HRM to make marketing strategies understanding the political influences, issues related to trading globally, the rates of exchange fluctuation and different cultures that need to be identified. Understanding the international customers, competitors, and other factors is essential for globalising. These functions need to be carried out by the HRM hence making it important to function as business partners.

- Revenue growth- Increasing the profitibility of the company through a continous growth is a neccessity of the market. for this growth companies need to bring in innovative products and identify new customers. This process requires proper sharing of innovative ideas and information amoung the employees in the work place. Another aspect of growth can be mergers, joint ventures and aquisitions. Companies can opt for this strategy for their growth through renevue. For this process also understanding the cultures and behaviours of other companies is required. All these need a proper and efficient HR strategy to be formed and followed.

- Technology- Technology and internet is playing a vital and impacting effect on the business. HRM has to play the role to understand the new technologies and that can be beneficial for the business growth and development and how they can be applied in the work environment to make results progressive. Understanding what level of technology is not required in the business has also to be evaluated for unneccesary wastage of resources in those technologies.

- Intellectual knowledge- This is an essential part to be considered for a business to run successfully. Knowledge is required at all levels of growth be it directly profitable to the company ( companies selling ideas and relationships) or indirectly profitable to companies who survive by making their impact on the customers in the changing trends of customer demands. Individuals who can help in placing the organisation in the global market and understanding the technological trends have to ve identified, developed and compensated.

- Embracing change- Change is the new challenge developing in any market today. The companies should be capable to understand the changing trends, taking innovative steps and developing new strategies to handle those changes in a rapid manner. Understanding the change is not the only issue here but instead identifying the change before the competetive pressures and taking quick decisions to embrace the change and developing new ways to handle them is the requirement of a business success. This transformation behaviour requires HRM to be efficient in leading the functions to manage the changes and seek ways to overcome hurdles connected with them.

The HR department of any organisation needs to come into the partnership role to handle the above factors that are faced by the oranisation. Thus HRM does not remain a single department on any organization but takes the place of a business partnership.

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