Essay on Human Resource (HR) as a Strategic Business Partner
Number of words: 1525
Human resource in the recent past has gained recognition as a valuable strategic partner for various organizations. Human resource relates to employees performing various tasks in an organization. There are various aspects relating of human resource in an organization that make them a strategic partner. This papers explains the importance of human resource in organizations, career progression of human resource executives, advantages of Hr reporting to the C.E.O as well as the disadvantages.
Human resources in organizations have diverse impacts on the performance of organizations. Human resource functions are essential in the running of daily activities of an organization. Human resources in an organization represent diverse workers with different skills and responsibilities. Human resource movement in the 20th century had perhaps profound influence on the way organizations handle human resources. Before then, employees in organizations had little rights. The human resource movements resulted in the creation of trade movement, which resulted in the term of collective bargain improvement (Lawler and Mohrman 15-29). These movements meant that organizations had to change from their traditional way of management to the new way that meant human resources was part of the strategic business plan.
Organizations now have made human resources a strategic partner. These are necessary since without human resources accomplishment of even basic activities will not be possible. When one looks at typical organization, the C.E.O to the guard represents the human resources. Without the efforts of even the lowest member in an organization, compromising of organization’s goals would be high. Human resources have unique qualities in organizations. These qualities of employees span from their culture, level of commitment and skills (Lawler and Mohrman 15-29). The company’s president is the highest individual in terms of authority in organizations. The firms C.E.O is responsible for strategic formulation activities.
This means that the companies C.E.O is responsible for any activities that employees perform. Therefore, with all of these authorities, employees report to the organizations C.E.O or the president. Organizations have different mechanisms of ensuring that employees report to the C.E.O. Some of these strategies represent the contract of employment while others relate to policies of the organization. The function of the organization’s president or the C.E.O varies, but the most crucial task is the development of strategies. These tasks revolve around formulating business strategies as well as human resource strategies. Organization’s president or the C.E.O, perform the functions of leadership, reward and punishment, manage the organization’s culture as well as ensuring that employees comply with labor laws.
Influence of the C.E.O on Human and Business Strategies
Chief Executive Officers in organizations have an influence on almost every task of employees. The C.E.O receives reports on the performance of the organizations and makes necessary changes. The C.E.O is responsible for formulation of business strategies. Some of these strategies include financial planning, budgeting, and formulation of organization’s structure as well as maintaining profits. On the human resource front, the president of the business unit ensures smooth running of operations. The C.E.O provides an opportunity for employees to further their skills by ensuring there is training opportunities. The president is also responsible for the performance of every business unit.
Business units’ leaders answer to the C.E.O of by ensuring that the president receives information about the performance of their units. Organization’s chief Executive officer controls the process of selection, attraction, assessment, rewarding and performance of employees. The C.E.O of these companies oversees all aspects relating to the trade unions as well as collective bargaining agreements. Their influence ensures that human resource strategies such as planning, control and organization correspond with organizations goals. The president manages these activities through analyzing daily reports. Strategic human resource activities of the C.E.O ensure that organizations have workers for future assignment (Lengnick-Hall et al 64-70). They also ensure that these employees have relevant skills for the attainment of organizational goals. The C.E.O additionally assists in the formulation of policies that relate to punishment, as well as rewarding employees.
Relationship between Business and Human Resource Strategy
The relationship between human resource and organizations strategies ensures organizations meet their goals. For the attainment of the best relationship, organizations need to consider the following: the organizations should reach extensions and reconfigure their human resource strategies to align with business objectives. There is a need for these organizations to employ employees with relevant skills and of diverse knowledge areas (Holbeche 23-31). The organizations should also have a set of culture and have standards of performance. Ensuring the organization’s goals are met in organizations fosters communications within the organization.
To foster these relationships in organizations, there is a need to perform various human resource activities. Some of these activities include selection and recruitment, compensation and appraisal as well as training and development. In relation to employee recruitment and selection, organizations need to have a system of recruiting and selecting employees with the right knowledge, attitude and skills. These relations completes with employees improving the level of achievement for the organization as well as the quality of services and products (Holbeche 23-31). These relationships relate to the level of supervision as well the rates of compensation.
When one considers the function of compensation and appraisal, the organization needs to have a clear system of rewarding employees. These systems should relate to policies governing labor laws as well as ethical standards of business (Holbeche 23-31). Training and development of employees on the other hand, is an essential factor in fostering relationships. Training ensures that employees have necessary skills and knowledge in performing their activities. Training ensures that employees attain organization’s goals while development gives employees an opportunity of growth. Training needs to be a continuous activity for the organization to realize its goals.
Benefits and Consequences for HR Reporting to the C.E.O
Opponents as well as proponents to HR reporting to C.E.O in organizations exist. Reports from members of the human resource however, have an important contribution to an organization. For the realization of success in organization HR should report to the C.E.O. reporting ensures that organizations attain their level of success. Without these reports, organizations would fail attaining losses. Human resource members especially those in finance and accounting fields need to report to the C.E.O to limit aspects of corruption and other malpractices (Lawler and Mohrman 15-29).
Reporting fosters communications between human resources and the C.E.O. This form of communication ensures that the executive members of the team make right decisions; employees participate in the management of the organization as well as understand the mechanics within the organization. The negative consequences of employees not reporting to the C.E.O include development of weak decisions, poor planning by the executives, corruption, and lack of a proper communication channels, as well as poor coordination.
Career path for an HR Executive
The optimal career path for an HR executive relates to a combination of skills, education and experience. Career progressions starts at the HR intern level. At this level, the executives are under supervision while they obtain various skills and competency. At this level, the interns build a channel of network with other individual as well as attain various skills for career progression. The next step of their career progression is the HR project manager’s position. At this level, the individual is responsible for managing a unit within the organization. The next step for their career progression is the HR Director’s position (Geletkanycz, and Boyd 335-352). The individual is able to perform various critical tasks as well as assist in the formulation of strategies. The Executive then progresses to the vice presidency, and the last step is the chief Executive officer’s position.
Human resource relates to business strategy in various ways. The influence of human resources on the formulation of organization strategy is important for organization’s success. Human resources perform actual tasks within an organization and their performance relate to the quality of goods as well as services. Chief Executive officers in organizations have an influence on the performance of employees. Their influence motivates employees as well as ensures organizations achieve their activities. However, for one to attain the Chief Executive officer’s positions there is a need to accomplish various qualifications, skills and experience.
Lawler, Edward E., and Susan A. Mohrman. ” strategic partnership of HR : what does it take to make it happen?.” Human Resource Planning 26.3 (2003): 15-29.
Holbeche, Linda. Aligning human resources and business strategy. Routledge, 2013.
Lengnick-Hall, Mark L., et al. “Strategic human resource management: The evolution of the field.” Human Resource Management Review 19.2 (2009): 64-85.
Geletkanycz, Marta A., and Brian K. Boyd. “CEO outside directorships and firm performance: a reconciliation of agency and embeddedness views.” Academy of management journal 54.2 (2011): 335-352.