CHAPTER 4:

THE EVOLVING/
STRATEGIC ROLE
OF HUMAN
RESOURCE
MANAGEMENT
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Strategic
Strategic Human
Human Resource
Resource
Management
Management
Involves
Involvesdevelopment
developmentof
ofconsistent,
consistent,aligned
alignedcollection
collectionof
of
practices,
practices,programs,
programs,and
andpolicies
policiesto
tofacilitate
facilitateachievement
achievement
of
ofstrategic
strategicobjectives
objectives
Requires
Requiresabandoning
abandoningmindset
mindsetand
andpractices
practicesof
ofpersonnel
personnel
management,
management,and
andfocusing
focusingon
onstrategic
strategicissues,
issues,rather
ratherthan
than
solely
solelyon
onoperational
operationalissues
issues
Integration
Integrationof
ofall
allHR
HRprograms
programswithin
withinlarger
largerframework,
framework,
facilitating
facilitatingmission
missionand
andobjectives
objectives
Writing
Writingdown
downstrategy
strategyfacilitates
facilitatesinvolvement
involvementand
andbuy-in
buy-in
of
ofsenior
seniorexecutives
executivesand
andother
otheremployees
employees
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12

Exhibit
Exhibit4-1
4-1(Ulrich,
(Ulrich,1997)
1997)

Possible
Possible Roles
Roles Assumed
Assumed by
by HR
HR
Function
Function

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HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based
Economy
Economy
Human
Human capital
capital steward
steward

Creates
Createsan
anenvironment
environmentand
andculture
cultureininwhich
whichemployees
employees
voluntarily
voluntarilycontribute
contributeskills,
skills,ideas,
ideas,and
andenergy
energy
Human
Humancapital
capitalisisnot
notowned
ownedby
byorganization
organization

Knowledge
Knowledge facilitator
facilitator

Procures
Procuresnecessary
necessaryemployee
employeeknowledge
knowledgeand
andskill
skillsets
setsthat
that
allow
allowinformation
informationtotobe
beacquired,
acquired,developed,
developed,and
and
disseminated
disseminated
Provides
Providesaacompetitive
competitiveadvantage
advantage
Must
Mustbe
bepart
partofofstrategically
strategicallydesigned
designedemployee
employee
development
developmentplan
plan

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HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based
Economy
Economy
Relationship
Relationship builder
builder
Develops
Developsstructure,
structure,work
workpractices,
practices,and
andculture
culturethat
that
allow
allowindividuals
individualstotowork
worktogether
together
Develops
Developsnetworks
networksthat
thatfocus
focuson
onstrategic
strategic
objectives
objectives

Rapid
Rapid deployment
deployment specialist
specialist
Creates
Createsfluid
fluidand
andadaptable
adaptablestructure
structureand
andsystems
systems
Global,
Global,knowledge-based
knowledge-basedeconomy
economymandates
mandates
flexibility
flexibilityand
andculture
culturethat
thatembraces
embraceschange
change
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15

SHRM
SHRM Critical
Critical Competencies
Competencies
HRs
HRssuccess
success as
as true
true strategic
strategic business
business partner
partner
dependent
dependent on
on five
five specific
specific competencies:
competencies:

Strategic
Strategiccontribution
contribution--development
developmentofofstrategy
strategy
Business
Businessknowledge
knowledge--understanding
understandingnuts
nutsand
andbolts
boltsofof
organization
organization
Personal
Personalcredibility
credibility--measurable
measurablevalue
valuedemonstrated
demonstratedinin
programs
programsand
andpolicies
policies
HR
HRdelivery
delivery--serving
servinginternal
internalcustomers
customersthrough
througheffective
effective
and
andefficient
efficientprograms
programs
HR
HRtechnology
technology--using
usingtechnology
technologytotoimprove
improveorganizations
organizations
management
managementofofpeople
people

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16

Exhibit
Exhibit4-4
4-4

Lepak
Lepak &
& Snells
Snells Employment
Employment Models
Models

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17

Exhibit
Exhibit4-5
4-5

Traditional
Traditional HR
HR Versus
Versus Strategic
Strategic HR
HR

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18

Barriers
Barriers to
to Strategic
Strategic HR
HR

Short-term mentality/focus on current performance

Inability of HR to think strategically
Lack of appreciation for what HR can contribute
Failure to understand line managers role as an HR
manager
Difficulty in quantifying many HR outcomes
Perception of human assets as higher-risk
investments

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19

Exhibit
Exhibit4-7
4-7

Outcomes
Outcomes of
of Strategic
Strategic HR
HR

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110

Exhibit
Exhibit4-8
4-8

Model
Model of
of Strategic
Strategic HR
HR Management
Management

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111

Reading
Reading4.1
4.1(Rodriguez
(Rodriguez&&Ordonez
Ordonezde
dePablos)
Pablos)

Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning

Stages
Stages of
of knowledge
knowledge management
management

Generating
Generating or
or capturing
capturing knowledge
knowledge
Structuring
Structuring and
and providing
providing value
value toto gathered
gathered
knowledge
knowledge
Transferring
Transferring knowledge
knowledge
Establishing
Establishing mechanisms
mechanisms for
for use
use and
and reuse
reuse
ofof knowledge
knowledge for
for individuals
individuals and
and groups
groups

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112

Figure
Figure11

Knowledge
Knowledge Management
Management Cycle
Cycle

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113

Figure
Figure22

Knowledge
Knowledge Management
Management

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114

Reading
Reading4.1
4.1

Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning
Knowledge
Knowledge creation
creation
Single-loop
Single-looplearning:
learning:

Comparing
Comparingconsequences
consequencesof
ofactions
actionswith
withdesired
desired
outcomes
outcomes
Modifying
Modifyingbehavior
behavior

Double-loop
Double-looplearning:
learning:

Goes
Goesbeyond
beyonddetection
detectionand
andcorrection
correctionof
oferrors
errors
Entails
Entailsexamining
examiningactions
actionsand
andoutcomes,
outcomes,as
aswell
wellas
as
underlying
underlyingassumptions
assumptions

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Reading
Reading4.1
4.1

Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning

Without
Without purposeful
purposeful analysis
analysis of
of
underlying
underlying assumptions
assumptions and
and systems,
systems,
organizations
organizations may
may become
become victims
victims of
of
competency
competency traps
traps
Organizational
Organizational learning:
learning:
Inherently
Inherently rare
rare
Inimitable
Inimitable
Immobile
Immobile
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Reading
Reading4.1
4.1

Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning
How
How HR
HR management
management systems
systems can
can
contribute
contribute to
to development
development of
of organizational
organizational
knowledge
knowledge
Labor
Labormarkets
marketscan
canbe
beexploited
exploitedininorder
ordertotoattract
attract
and
andselect
selectindividuals
individualswith
withhigh
highcognitive
cognitiveabilities
abilities
Internal
Internallabor
labormarkets
marketscan
cancontribute
contributetoto
development
developmentofoffirm
firmspecific
specificassets
assets
Cross-functional
Cross-functionaland
andinter-organizational
inter-organizationalteams
teamscan
can
be
beutilized
utilized
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Reading
Reading4.1
4.1

Strategic
Strategic HR
HR as
as Organizational
Organizational
Learning
Learning

How
How HR
HR systems
systems can
can support
support and
and
enhance
enhance knowledge
knowledge transfer
transfer

Apprenticeship
Apprenticeship and
and mentoring
mentoring
Cross-functional
Cross-functional teams
teams
Stimulate
Stimulate and
and reward
reward information
information sharing
sharing
Provide
Provide free
free access
access toto information
information
Job
Job rotations
rotations
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118

Reading
Reading4.1
4.1

Knowledge
Knowledge Institutionalization
Institutionalization
Walsh
Walsh and
and Ungsons
Ungsonsfive
five storage
storage bins
binsin
in which
which
organizational
organizational memory
memory can
can reside
reside
Individuals
Individuals(assumptions,
(assumptions,beliefs,
beliefs,and
andcause
causemaps)
maps)
Culture
Culture(stories,
(stories,myths,
myths,and
andsymbols)
symbols)
Transformations
Transformations(work
(workdesign,
design,processes,
processes,and
androutines)
routines)
Structure
Structure(organizational
(organizationaldesign)
design)
Ecology
Ecology(physical
(physicalstructure
structureand
andinformation
informationsystems)
systems)

Institutionalized
Institutionalized knowledge
knowledge tends
tends to
to be
be firm
firm
specific,
specific, socially
socially complex,
complex, and
and causally
causally
ambiguous
ambiguous
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119

Figure
Figure33

Alternative
Alternative Orientations
Orientations of
of Fit
Fit in
in
SHRM
SHRM

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120

Reading
Reading4.2
4.2(Bowen
(Bowen&&Ostroff)
Ostroff)

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages

Scholars
Scholars have
have often
often assumed
assumed two
two perspectives
perspectives
Systems
Systems view
view considers
considers overall
overall configuration
configuration or
or
aggregation
aggregation of
of HRM
HRM practices
practices
Strategic
Strategic perspective
perspectiveexamines
examinesfit
fitbetween
between
various
various HRM
HRM practices
practices and
and organizations
organizations
competitive
competitive strategy
strategy
Overall
Overall set
set of
of HRM
HRM practices
practices generally
generally associated
associated
with
with firm
firmperformance
performance and
and competitive
competitive advantage
advantage

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121

Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Psychological
Psychological climate:
climate:
Experiential-based
Experiential-basedperception
perceptionofofwhat
whatpeople
peoplesee
see
and
andreport
reporthappening
happeningtotothem
themas
asthey
theymake
makesense
sense
ofoftheir
theirenvironment
environment

Climate:
Climate:
Critical
Criticalmediating
mediatingconstruct
constructininexploring
exploringmultilevel
multilevel
relationships
relationshipsbetween
betweenHRM
HRMand
andorganizational
organizational
performance
performance

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Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages

Two
Two interrelated
interrelated features
features of
of HRM
HRM
system:
system:
Content
Content
Process
Process

Must
Must be
be integrated
integrated effectively
effectively

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Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages

Content
Content

Set
Setofofpractices
practicesadopted
adopted
Ideally
Ideallydriven
drivenby
bystrategic
strategicgoals
goalsand
andvalues
values
No
Nosingle
singlemost
mostappropriate
appropriateset
setofofpractices
practicesfor
forparticular
particular
strategic
strategicobjective
objective
Different
Differentsets
setsofofpractices
practicesmay
maybe
beequally
equallyeffective
effectiveso
solong
long
as
asthey
theyallow
allowparticular
particulartype
typeofofclimate
climatearound
aroundsome
some
strategic
strategicobjective
objectivetotodevelop
develop

Process
Process

How
HowHRM
HRMsystem
systemcan
canbe
bedesigned
designedand
andadministered
administered
effectively
effectivelyby
bydefining
definingmeta-features
meta-featuresofofoverall
overallHRM
HRMsystem
system

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Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages

To
To create
create strong
strong situations
situations with
with
unambiguous
unambiguous messages
messages about
about
appropriate
appropriate behavior,
behavior, HRM
HRM systems
systems
should
should have:
have:
Distinctiveness
Distinctiveness
Consistency
Consistency
Consensus
Consensus
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Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages

Distinctiveness
Distinctiveness
Visibility
Visibility

Degree
Degreetotowhich
whichpractices
practicesare
aresalient
salientand
andreadily
readilyobservable
observable

Understandability
Understandability

Lack
Lackof
ofambiguity
ambiguityand
andease
easeof
ofcomprehension
comprehensionof
ofpractice
practice
content
content

Legitimacy
Legitimacyofofauthority
authority

Leads
Leadsindividuals
individualstotosubmit
submittotoperformance
performanceexpectations
expectationsas
as
formally
formallysanctioned
sanctionedbehaviors
behaviors

Relevance
Relevance

Whether
Whethersituation
situationisisdefined
definedso
sothat
thatindividuals
individualssee
seeititas
as
relevant
relevanttotoimportant
importantgoal
goal

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Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages
Consistency
Consistency
Instrumentality
Instrumentality

Unambiguous
Unambiguousperceived
perceivedcause-effect
cause-effectrelationship
relationship
between
betweensystems
systemsdesired
desiredcontent-focused
content-focused
behaviors
behaviorsand
andassociated
associatedemployee
employeeconsequences
consequences

Validity
Validity

HRM
HRMpractices
practicesmust
mustdisplay
displayconsistency
consistencybetween
between
what
whatthey
theypurport
purportto
todo
doand
andwhat
whatthey
theyactually
actuallydo
do

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Reading
Reading4.2
4.2

Understanding
Understanding HRM-Performance
HRM-Performance
Linkages
Linkages

Consensus
Consensus

Agreement
Agreement among
among message
message senders
senders
Fairness
Fairness
Composite
Composite of
of employees
employeesperceptions
perceptions of
of
whether
whether practices
practices adhere
adhere to
to three
three
dimensions
dimensions of
ofjustice:
justice: distributive,
distributive,
procedural,
procedural, and
and interactional
interactional

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Reading
Reading4.3
4.3(Greene)
(Greene)

Organization
Organization Culture
Culture Questionnaire
Questionnaire
Topics
Topics to
to be
be included
included in
in questionnaire:
questionnaire:
How
Howisisperformance
performancedefined,
defined,measured
measuredand
and
rewarded?
rewarded?
How
Howare
areinformation
informationand
andresources
resourcesallocated
allocatedand
and
managed?
managed?
What
Whatisisoperational
operationalphilosophy
philosophyofoforganization
organizationwith
with
regard
regardtotorisk-taking,
risk-taking,leadership,
leadership,and
andconcern
concernfor
for
overall
overallresults?
results?
Does
Doesorganization
organizationregard
regardhuman
humanresources
resourcesas
ascosts
costs
or
orassets?
assets?
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129

Reading
Reading4.3
4.3

Interpreting
Interpreting Results
Results &
& Formulating
Formulating
Strategies
Strategies

Tendency
Tendency to
to try
try to
to identify
identify an
an ideal
ideal culture
culture
Not
Not clear
clear than
than any
any one
one culture
culture will
will be
be effective
effective for
for
all
all organizations
organizations
Strategy
Strategy consists
consists of
ofinterrelated
interrelated functional
functional
components
components that
that must
must be
be carefully
carefully integrated
integrated to
to
form
forman
an effective
effective whole:
whole:
Selection
Selectionand
andstaffing
staffing
Organizational
Organizationaland
andhuman
humanresource
resourcedevelopment
development
Rewards
Rewards

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Reading
Reading4.3
4.3

Analyzing
Analyzing Dysfunctional
Dysfunctional Cultures
Cultures
Which
Which components
components of
ofculture
culture are
are misaligned?
misaligned?
What
What priorities
priorities should
should be
be assigned
assigned to
to bridging
bridging
gaps
gaps between
between what
what culture
culture isis and
and what
what people
people feel
feel
itit should
should be?
be?
What
What resources
resources are
are needed
needed and
and how
how should
should they
they
be
be used
used to
to change
change culture?
culture?
How
How should
should change
change effort
effort be
be managed,
managed,and
and who
who
does
does what?
what?
What
What role
role should
should HR
HR strategy
strategy play
play in
in signaling,
signaling,
making,
making, and
and reinforcing
reinforcing necessary
necessary changes?
changes?
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131