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Will HR be needed in the future?

Answer provided by Bill Coy, Senior Associate for Human Resources

As a Human Resources professional, my gut reaction to this question is: "Of course!" However, delving beneath the surface, I realize that I must qualify this answer. Will HR be needed in the future? No, it won't; and, yes, it will.

• HR in the traditional sense - as a minimalist, paper-bound, policy-obsessed, obstacle-creating bureaucratic naysayer - is not what is needed.
• HR as a strategic partner - that provides resources, insight, and value to support the organization's mission - will be essential to the success of any organization.

Dave Ulrich, in an article in the Harvard Business Review, said it best: "The question for senior managers, then, is not 'Should we do away with HR?' but 'What should we do with HR?' The answer is: 'Create an entirely new role and agenda that focuses not on traditional HR activities, such as staffing and compensation, but on outcomes.' HR should not be defined by what it does, but by what it delivers: results that enrich the organization's value to customers, investors, and employees." (A New Mandate for HR, HBR, Jan-Feb 1998, 124-5)

To be of value, the deliverables of HR must be strategic, as well as cohesive and effective. HR must use its expertise not only to maintain systems, but also to develop efficiencies and synergies. HR has to function as an ally to both management and staff, serving as a problem-solver and also as a resource to all when a conflict, problem, or opportunity surfaces. This evolution will occur only when HR has changed its own self-image.

The value of HR management is accentuated during times of organizational change, particularly when organizations are undergoing strategic restructuring. Effective handling of the "people" issues is essential to the successful integration of organizations. To achieve this, HR must function as a strategic partner.

What is the identity of HR in your organization? Has it evolved to this strategic level? If not, how can it?

I believe you have to start with the traditional areas of HR and evolve each of them into a deliverable that serves the strategic needs of the organization.

The following chart shows how this process may begin in each of the traditional HR functions, as the organization moves to think outside the normal constraints of that function and to address its strategic issues. With this shift in thinking, HR will become a strategic partner - facilitating solutions, rather than creating obstacles.

HR Practices And Key Management Questions

Staffing	What competencies do we have, and need, to fulfill our mission? What are our sources for attracting new candidates? What is our attraction and retention rate? What is our succession plan?
Development	How does our training reflect our goals and mission? How will our training programs be developed? How will we transform our staff?
Performance Appraisal	How does our appraisal system reflect our mission and culture? What is the real purpose of our appraisal system: Punish-Praise-Plan-Provide Feedback-Play or Pay? What does the performance appraisal system reveal about the competencies necessary to be successful?
Rewards	How motivated are our employees? How can we best motivate our employees to support our mission? How does the reward system reflect our values? How effectively do we employ both financial and non-financial rewards?
Organizational Design	How does our organizational structure support the mission? How do we compare with other organizations? What processes will ensure our continued ability to make adaptations to our structure?
Communication	How do our communications support our mission? To what extent do all employees know our goals, philosophy, and direction? To what extent do employees know why we do what we do? How do our internal communications reflect our external communications?
Evaluation	How will we define success in each of these HR areas? How will we measure our success? How will we make needed adjustments to our HR functions?

When HR can answer the questions above, or help management answer these questions, then HR will evolve into a strategic partner with credibility and influence, and the ability to achieve outcomes that advance the organization's mission.

For information on La Piana Associates consulting services in Human Resource Solutions, click here.