The New HR

How to Beat the Competition with a Strategically Focused Human Resource Team

James D. Spina, Lori J. Spina

• Publisher: Emerald Publishing Limited
• Year: 2022
• Print ISBN: 9781802628425
• eBook ISBN: 9781802628432
• Topic: Business
• Subtopic: Business Strategy
• Index: Business

HR departments endeavour to occupy strategic roles in organizations, a goal that is seldom or ever realized. James and Lori Spina bring their academic and corporate backgrounds together to analyse and direct on how strategic human resources cohesively contribute towards gaining competitive advantage, above average profits, building and retaining talent, sustaining financial strength, and addressing challenges of stakeholder satisfaction.

Stepping beyond unclear discussions about strategy that fail to satisfy the needs of all departments, The New HR instead illustrates how human resource leaders can constructively create and nurture teams that think strategically and produce harmony between HR activities and the wider organization.

The New HR is essential reading for human resources executives who desire to make strategic business decisions that ensure the sustainability and growth of the organization and, at the same time, look for new ways to develop the business, strategic, and critical thinking skills of current employees.

1

Strategic Roles for Human Resource Teams

It is rumored that the HR departments of today want to take strategic roles in an organization. They seek a place at the table where strategic decisions are made but they are seldom, if ever, invited. This book is designed to guide HR departments in ways to achieve the goal of being “at the table.” A good place to start is to define what strategy is and what it will take for HR to be recognized as a strategic force in an organization (Fig. 1).

Fig. 1. Top of the House Corporate Strategy.

There are two types of strategic decisions: (1) Corporate Strategy (What new business/industry are we seeking to engage in? (2) Business Strategy (How will we operate in a highly competitive environment?) Here's how a typical Corporate Strategic decision process rolls out to meet a competitive challenge or a dramatic change in a business or social environment:

This is not a simple decision particularly if the organization is seeking new ways to continue to succeed in the face of new competitors and the new technologies that drives them. A major question for a profit-making organization to address is, “Do we have the resources in place that can be leveraged to enter a new business or industry?” Example: “Can we move to a business situation that requires the use of robotics?”

For a non-profit, “Are we organized to provide services required in a new realm as we have done in the past?” Example: “A cure for a childhood disease has been discovered that makes our work in that field obsolete and unneeded. Do we close shop?”

Both profit and non-profit organizations need to decide if it makes sense to find the resources needed to make a change and restructure current operations or will it be better to take what they have and repurpose those elements? A strategic human resources team can be a key contributor to add value to the decision to make about entrance into a new field of endeavor. That is, if HR is ready and able to provide the input to the management of talent needed for this decision (Fig. 2).

Fig. 2. Top of the House Business Strategy.

Let's look at how a Business Strategic decision often takes place:

This involves decisions on the alignment of the organization's strategic vision, mission, values, and ethics with the tactics that will drive the activities to beat the competition. Example: A strategic mission statement could speak to the continual quality of products and services we deliver and their value to our customers. A strategic human resource team should be able to lead the effort to identify, align, and enhance the skills and activities of managers to satisfy customer needs. This could lead to a sound tactic to identify the changing needs of our customers and then design and carry out management development activities in concert with the marketing staff, to enable our people to meet them.

Note: tactics and strategy differ. Tactics answer the questions starting with the word, “What.” Strategy answers questions starting with the word “How.” Documentation of employee turnover is tactical thinking. Creating employee job satisfaction initiatives that ensure retention and sustain the mission's focus on product and service quality, is strategic thinking.

The Readiness of HR to Handle Strategic Thinking, Behaviors, and Actions

Readiness requires evaluation in five areas, (1) the organizational structure of HR, (2) the current goals and objectives of HR activities, (3) the willingness of employees to learn new skills and abilities to become more strategic, (4) the quality and availability of strategic thinking skills held by incumbent HR staff, and (5) the ability of HR professionals to identify and meet the needs of all key stakeholders (Fig. 3).

Fig. 3. New HR Strategy.

At first glance you might have these comments and thoughts: “Hold on there, what's new about this arrangement? Except for ‘outsourcing’ & ‘succession’ it looks familiar. But what does an outsourcing manager do? And where are compensation & benefits people? How about the retirement dinner? HR always handles it. I don't get it. In our organization security and building maintenance are part of HR. Who does all that work?” Note: Culture and industry often determines security & maintenance needs and requirements.

Realistically, there will always be a need to have inhouse plans made for someone who retires, the annual “party,” key birthdays, and other socially important business events. These things are “nice to do” on a “to do” list and reflect the culture of the enterprise but we recommend that support staff who are not in charge with making strategic decisions handle these situations.

The answer to what's new is not in the reporting relationships. It's in the strategic functions assigned to each manager that make the difference (Figs. 4–8). As an example, let's start with a detailed look into the role of the manager who leads outsourcing of tactical functions. Currently, Human Resources Information Services (HRIS), Compensation, Benefits, and anything else that soaks up time with record keeping and storage tends to be done in-house. In addition, external recruitment of workers is handled in-house in most organizations. You might ask the question, “What strategic thinking is required to be made by the outsourcing manager?” A seminal strategic need of every organization to meet its mission is to ensure financial strength. Well-chosen and managed third party partnerships can achieve this with cost reduction and a strategic focused manager can do this. Think about the fact that the total compensation of every inhouse staff member includes about 33% for benefits. Retirement obligations also loom strong on the balance sheet for years after the employee leaves.

Equipment and office space are necessary to process all this in house. Let third parties worry about those things. In the experience of the authors, all these functions can and should be outsourced.

For example, when HRIS is placed in the hands of a competent and trusted third party company, the tasks relating to compensation records, benefits records, and external recruitment advertising and vetting of application information can be done. They can be transmitted on demand to the appropriate manager who asks for information to make strategic decisions relating to stakeholder needs.

Managers who are ready to work in strategic ways already know that all stakeholders have the same need for financial strength as that of organizations as explained below:

1. (1) The Parent organization thirsts for the recruitment and retention of talent to build revenue.
2. (2) One of the needs of Employees is a good wage with benefits.
3. (3) When the wage with benefits need is met, talent tends to remain in place. Talent loyalty has the potential to raise productivity, lower costs, and increase revenue.
4. (4) Lower costs can increase margins and drive prices down for Customers. Customers tend to buy more products and services when prices fall.
5. (5) The increased revenue builds financial strength for the Parent Organization and Communities might expect to receive more financial support from local industries.
6. (6) Shareholders could see their stock values rise and Suppliers have the potential to move more product and services to the Parent Organization that increase revenue.

These stakeholder needs are not surprising when viewed individually. The ability of an outsourcing manager who envisions them as interrelated makes the difference between a manager that is a strategic thinker and one who is not. The managers who don't have the skills and abilities to meet universal needs are not ready to take a strategic path to the success of the organization. i.e., outsourcing of HR functions when done poorly, will negatively affect employees, customers, suppliers, communities, and shareholders.

Snapshots of Strategic Key Roles of Other HR Managers

Source: The Delta Group Network, Inc. 2022.

Fig. 4. Employment Development Strategy.

Source: The Delta Group Network, Inc. 2022.

Fig. 5. Employment Strategy.

Source: The Delta Group Network, Inc. 2022.

Fig. 6. Succession Strategy.

Source: The Delta Group Network, Inc. 2022.

Fig. 7. Security Strategy.

Source: The Delta Group Network, Inc. 2022.

Fig. 8. Legal Strategy.

The New Strategic Role of the V.P. of HR

The person who has this leadership position must exercise the ability to hold conflicting needs of stakeholders in mind as decisions are made to ensure that the contributions of HR add value to the enterprise (Chart #1). As an example, employees need rewards that are meaningful and encourage their efforts to increase productivity and maintain the high standard of quality expected by the organization and its customers. The needs of your employees, the organization, and its customers have the potential to present conflicts that affect deci...

Table of contents

• Cover
• Title
• Copyright
• Contents
• List of Figures, Charts, and Diagram
• Acknowledgments
• Introduction
• 1. Strategic Roles for Human Resource Teams
• 2. What Are Strategic HR Functions?
• 3. Understanding How “Win/Win” Leadership Works
• 4. Strategic Cultural Considerations for HR
• 5. New Considerations for HR Staff Development
• 6. Connection of Creative Thinking to Strategic Thinking
• 7. How HR Can Build an Inclusive Stakeholder Satisfaction System
• 8. Integration of the “New HR” within the Organization
• 9. Future Challenges to Success
• Appendix A: Primary Sources
• Appendix B: HR Talent Development Scenarios
• Appendix C: How to Begin to Build a Recruitment and Development System for Employees with Special Needs
• Appendix D: “C” Leadership Theory Research
• Appendix E: Author Lori J. Spina, Her Story
• Index