THE NEW ROLE OF HUMAN RESOURCES

Chapter 3

The reason for the wide interest that it invites is obvious: the

results would tell how HR compensation on the average

compares with other departments. The results are almost predictable. Except for

some notable individual exceptions, by and large, HR

executives receive lower pay than those in other major disciplines such as in Finance, Production,

Marketing or Sales.

The New Role of Human Resources

The book on “The Human Capital Edge,” by Bruce N. Pfau, and Ira T. Kay, quoted

Thomas A. Stewart’s point of view of HR Function in Fortune magazine’s January 15, 1996

issue:

1. MISPERCEPTIONS REGARDING HR FUNCTION

“Nestling warm and sleepy in your company, like the asp in Cleopatra’s bosom, is a

department whose employees spend 80% of their time on routine administrative tasks.

Nearly every function of this department can be performed more expertly for less by

others. Chances are its leaders are unable to describe their contribution to value-added

except in trendy, unquantifiable and wanna-be terms – yet, like a serpent unaffected by its own venom, the department frequently

dispenses to others advice on how to eliminate work that does not add value. It is

also an organization where the average advertised salary for professional staffers increased 30% last year… I am describing

your human resources department, and have a modest proposal: Why not blow it up?”

-Thomas A. Stewart

It is time for Human Resource practitioners to rethink their role and that of HR department, not only for the purpose of contributing to the

organization’s bottom line but also for their survival.

HR must balance the demands of several different roles: business

partner, internal consultant, operational and administrative expert and both employees’ and employer’s

advocate. The challenge is to maintain strong partnerships with

both internal and external customers.

It is the HR professionals’ fault for allowing this

perception to prevail. While some CEOs really have a jaundiced view of the HR function, it is your job to

change this misperception by showing that you can be an

equal partner with your peers. If you cannot convince his despite your efforts better

find another job.

2. MAKING A CORRECTIVE ACTION

Some people call the Human Resources function as the last

bastion of bureaucracy, a protocol- driven procedure

freak. The implication is, the function is caught in the web of organizational red tape without contributing to the bottom line results of the company. While the HR professional serves the administrative agenda well, it is viewed as the roadblock by the rest of the organization.

The HR Department is separates into two:

Bad HR Department is that the bad ones forget their

service orientation. Good HR Department

the good ones recognize that while they have to initiate and

implement rules and regulations, they don’t dictate and go absolutely by the book.

The implementation on the salary structure. A job evaluation has been

completed after a painstaking process of creating an organization

consisting of a working group, a steering committee, training these groups, writing and validating job description through interview of

incumbents or observation of how they do their jobs, doing the job

analysis and rating jobs based on the agreed job rating plan. A new

salary structure is now established that tries to maintain internal

consistency and external competitiveness.

There are some managers who are unhappy with the results. The Bad HR department would

just say.“Well. Tough luck. It was done by

a trained working group, approved by the steering

committee, with the imprimatur of top management or by the

board.” The unhappy manager who thought that some jobs in his department are underrated

could have argued for them at the time it was submitted to

them to review.

The good human resource department would reach out to these managers, listen to their

complaints, reconvene the working group, if there is validity in the complaint.

The difference then between the two is, the bad one dictates the

policy or the process whether you like it or not while the other makes a balancing act, does a

supporting or mediating function rather than being an autocratic

actor.

Human Resource function is in transition in many organizations

from “police” to strategic partner. A lot of our HR

professionals are not clear about their role. Their actions send the

wrong signals to their constituencies which erode their

effectiveness.

3. THE BALANCING ACT OF HUMAN RESOURCE PROFESSIONALS

Serving both management and employeesSome HR professionals are like horses with blinders on their eyes. They see only the management side. They tend to forget that employees are also their customers.

As employee advocate and chief social worker

In an effort to be approachable, Hr professionals encourage employees to come to them with complaints. Sometimes they got carried away and take the side of the employee before doing a fact-finding investigation to get the balanced view of the issue.

Here are some examples of their balancing acts:

“Owning” the people issuesThe old-fashioned practice is that HR should do the hiring, firing, and disciplining employees. This “police” image creates fear and encourages managers to abdicate their responsibility in the management of their employees.

A rubber stamp of other managers rather than a partner

He should balance the needs of management, employees and other stakeholders to meet the business goals of the organization.

Do managers seek your opinion? Do you influence your company’s

direction or at least, contribute some inputs to it?

Do you contribute to the corporate discussion about customers, products and

strategies? Are you a participant in senior

level meetings?

4. HOW TO GET A SET AT THE EXECUTIVE TABLE

talk the language of your peers. Pore over the technical books so you will understand the jargon of the business.

Every time we joined a company, we strived to learn

the complexities of the business, their technical and

marketing “buzzwords.”

a. Understand Your Organization’s Business-

the overall business goals are also you goals. When you make plans for your department, they should be directed at achieving those overall goal as well

as your goals.

b. Share Responsibility for Business Goals and Plans

know your people very well, their strengths and weaknesses. Meet your reporting staff regularly. Meet all your department staff at least monthly to

make sure that all members are pointed to the same direction. Your

goals must contribute to the attainment of the overall business goals. Your action plans to achieve these goals need to translate into

daily “to do list” for your staff. Every important assignment or delegation of

authority needs constant follow-up and feedback and audit so you will

know it is being accomplished.

c. Run your department Like a Business

The objective of human resource management is to maximize the return on investment from the

organization’s human capital and minimize financial risk. It is the

responsibility of human resource managers to conduct these

activities in an effective, legal, fair, and consistent manner.

5. THE FUNCTIONS OF HUMAN RESOURCES DEPARTMENT

1. Recruitment, selection and placement2. Training and development3. Performance evaluation and management4. Promotions5. Redundancy6. Industrial and Employee Relations7. Record keeping of all personal data8. Compensation, retirement, incentive

programs9. Confidential advice to internal ‘customers’ in

relation to problems at work10. Career development

Human resource management serves these key functions:

The consultative function of human resources is that it

provides overall guidance and direction on workplace matters. “Human resources are the greatest assets of

our company.”

6. DEVELOPING A PUBLIC STATEMENT OF THE HR

PHILOSOPHY

Federal Express (FEDEX) one of the most admired companies, explained the company’s philosophy

in its Manager’s Guide:

“Take care of our people, they in turn will deliver the impeccable

Service demanded by our customers who will reward us

with the Profit-ability necessary to secure out future. People-

Service-Profit. These three words are the very foundation of

Federal Express.”

Human Resource Principle

Specific Practice

Build and implement an HRM strategy

Develop a shared philosophy for managing peopleBuild systems and practices to implement the philosophy

Hire the right people Know what you wantBe selective

Keep them Reward wellProtect jobsPromote from withinShare the wealth

Invest in themEmpower them

Invest in learningProvide information and supportEncourage autonomy and participationRedesign workFoster self-managing teamsPromote egalitarianism

Promote diversity Be explicit and consistent about the organization’s diversity philosophyHold managers accountable

FedEx’s Basic Human Resource Principles

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