The document discusses the evolving role of human resource management (HRM) from an administrative function to a strategic business partner. As organizations increasingly compete through talent, knowledge, and intellectual capital, HRM must help attract, develop, and retain top human capital. This requires HRM to shift from transactional tasks to strategic planning, aligning HR strategies with business goals, and demonstrating value through metrics like productivity, costs, retention, and organizational capabilities. The barriers to strategic HRM include a short-term focus and difficulties quantifying human capital outcomes, but making this transition is critical for organizations to excel in the future.

1. MANAGING HUMAN
RESOURCES--A STRATEGIC
PROSPECTIVE.
KULDEEP MATHUR
M.B.A. JIWAJI UNIVERSITY GWALIOR

2. “The mind that invented the atom bomb is
much more powerful than the bomb”
-S. Radhakrishnan
“Successful Companies of the 21st Century will
be those who do the best job of capturing.
Storing and leveraging what their employees
know”
- Lew Platt, Hewlett-Packard

3. In order to meet the challenges of emerging knowledge
industry and ever volatile and turbulent global market,
HR has evolved as the most strategic & critical resource
for corporate today. HR has taken a new Avatar as
Business leader/partners (Human capital)- optimizing
human capital to gain competitive advantages is the
main concern of HR manager today. Human capital is
the economic value of the organization’s competency–
knowledge, skill & behavioral capabilities.
William Boast writes: “If the corporation fails the
human element, the very ground upon which it depends
for its stability will collapse. Organizations exist for the
people they serve”.. Laurie A. Broedling goes to the
extend of saying, “The business of business is People; if
you forget that basic truth, you can close the doors of
your business right now”.

4. • Factors responsible & changing perspective-
(i)Organization compete through people
- value / wealth creation through people.
- People are the business---emerging as the
greatest assets.
(i)Knowledge industries - HR centric businesses
like IT, ITES, KPOs, Service industries like
retail, Health care, hotels, consultancies etc.
Knowledge & talent as drivers of business. It is
talent that makes capital dance, Machine
move, market-behave.

5. Managing human capital and intellectual capital is
difficult and different than managing workers in a
traditional industries.
- Human capital intangible
- Owned by individuals and not by org.-hence risky.
- People centric business-60%-70% cost is on human
capital
- Measurement of value addition by human capital is real
challenge.
(iii) Behaviorism in management – a quantum shift
 Performance= Skill + Will
(can do?) [ (will do)
(infrastructure) (commitment)]

6. Paradigm Shift in HRM Role
(i) The traditional regulatory ‘watch-dog’ role of HR
(Maintenance & Hygiene factor) has to change qualitatively
to a pro-active, strategic role linked with the growth and
transformation of an enterprise
(ii) Increasingly, the traditional administrative and routine tasks
are being outsourced or automated through ERP solutions
and HR is being required to perform roles that are more
value adding In nature.
(iii) HR role is shifting from “cost & expense” to value
added & wealth creation.___________

7. Strategic
planning
Service delivery
Administration
Cost Value added
10%
30%
60% 10%
30%
60%
HR Cost and value added

8. (iv) HR role has moved from mere
compliers of orders/ fire fighter to
proactive, strategic decision making and
helping the organization to chart out its new
course of action. no business decisions
are taken without active involvement of HR
professional, shifting of role from pillion to
driver seat, HR manager have moved from
corridors to board rooms occupying
important Positions.

9. (v) There is a great possibility of Service Level
Agreements (SLAs) between HR and other
(customer) departments.
Each grievance of the employees to be
treated as customers grievance & to be given
same importance.

10. HR strategies can no longer be insulated from the realities & problems of
organization. They have to be aligned to business objectives.
There has to be the “best fit” between HR strategy & Business strategy.
Know the dimensions of square hole and buy a square peg or
chisel the sound peg to “fit it”
To make all this happen, HR professional have to elevate themselves and
go deeper , understand the business & involve them to corporate strategies
like BPR, ISO, EVA, budget making, Balance-sheet preparations & annual
general meeting deliberations etc, HR managers have to understand work-
flow- chart, PERT, CPM, Financial & Marketing operations in order to make
relevant contributions.

11. External Environment
Competition
Government regulation
Technology
Market trends
Economic
Corporate
Strategy
Business
Unit
Strategy
Internal Environment
Culture
Structure
Politics
Employee skills
Past strategy
Employee
Separation
Laws
Regulating
Employment
HR Strategy
HR planning
Design of jobs & and
work systems
What worker do
What workers need
How jobs interface with
others
HR
Information
Systems (HR
accounting &
auditing)
Staffing
(talent
managemen
t)
Training
(Nurturing the
future talent
Performance
Management
Excellence in
performance)
Compensatio
n
(Performanc
e based
Reward)
Labor
Relations
( Employees
commitment)
Strategic Human Resource Management

12. Designing Strategic HR Strategies -
(A) Strategy Architect
• Developing & linking/ aligning HR strategies with
organizational strategies
• Sustaining Strategic agility
• Engaging customers – internal as well external
(B) Talent Manager
• Planning/ Ensuring today’s and tomorrow’s
talent
• Ensuring right fit
• Developing talent/Nurturing talent
• Building & sustaining talent pool

13. (C) Org Designer
• Shaping organization – flexible, responsive etc.
• Fostering communication flow
• Developing adapting, sensitive organization.
(D) Operational Executor
• Designing new workplaces practices
• Implementing workplace policies / practices
• Developing performance based compensation &
reward system.
• Outsourcing, flexi-working etc.
• Making work place stress free
• Arranging work life – balance
• Arresting attrition
• Boosting employees morale / motivation

14. (E) Automizing HR Function:-
• HRIS
• HR Software (ERP Solutions)
• Other electronic gadgets
(F) Credible Activist
• Deliverables & Enablers than doables
• Delivering results with integrity
• Sharing/ using information
• Building relationships of trust

15. (E) Culture and Change Steward
• Facilitating change
•Crafting culture
• Personalizing culture
•Auditing culture and updating them
(G) Moulding Employees Relationship & Behaviors
• Building psychological contract
• Building emotional bondage
• Building organizational pride

16. Competencies required for HR Professionals
• Knowing the business (allow HR professionals to join
the main management team)
• Mastering HR practices (allow them to define, access
& experiment the best practices within HR)
• Managing culture (helps them to shape the firm
identity)
• Orchestrating change (allow them to make things
happen)
• Demonstrating personal credibility (earns them
respect and goodwill)

17. Dave Ulrich outlines five areas HR can measure to
demonstrate results
• Productivity measures – output per unit of input. Improvements in
these areas might be traced back to increased training, improved
work structure and so on.
• Process measures, such as improving systems and workflow
• HR costs and/or benefits for any specific initiatives.
• Employee retention, morale, commitment and skills.
• Capabilities of the organization, such as speed (response time)
learning, shared mind set and accountability.

18. Barriers to Strategic HR
• Short-term mentality/ focus on current performance
• Inability of HR to think strategically
• Lack of appreciation of what HR can contribute
• Failure to understand general manager’s role as an HR
manager
• Difficulty in quantifying many HR outcomes
• Perception of human assets as higher-risk
investments
• Incentives for change that might arise

19. you find resistance toward resources being
allocated to programs that have less tangible,
measurable benefits than those that do.
Another barrier to strategic HR is the fact that
human assets aren’t owned by organizations
and, therefore, are perceived as a higher risk
investment than capital assets.

20. Conclusion
HRM programs and their professionals are at a
crossroad. They can maintain the status quo and be the
organization's ‘brief holder’ or choose to become a
strategic partner responsible for improving
performance and facilitating organizational change. The
former leads to business as usual while the latter
opens the door to a new frontier for HRM professionals,
one that positions them as important, influential,
serious, and critical leaders within an organization.
HRD professionals must choose the path they wish to
travel. Choose wisely, for the path chosen will
determine the destiny of HRM.

21. The quest for achieving excellence through
people in the future continues…. & HR
professional have to take the lead.

22. As Sherman Roberts of Harvard University puts
it: “The best way to run an organization is also
the best way to treat people”
In the words of Edward Gibbons, an English
historian, “The winds and waves are always on
the side of the ablest navigator.”