Is HRM at the table or "under it?"

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Permalink Reply by Ramon Jose Venero on August 22, 2008 at 9:23pm

Theresa-

In my view, the reply to your question is a function of two variables. The first being how competent is the HR function and its leadership and from that perspective, are these folks on par with the other business people in the C suite. If the HR folks are not business people, then no point discussing the matter any further; perhaps they should consider hiding under the table until the economy improves.

The second variable, is how committed the CEO is to a sustainable organization and business versus cashing out within the typical 3.5 year lifespan of today's chief executive. And, more importantly, how much does this person rely on the CHRO to leverage human capital (the principal value add of any economic process in my view) to outperform its competitors.

In terms of models for these two roles, I like to think of Helen Drinan in Boston (formerly SHRM's CEO) and Jack Welch. People like Helen are strategic, wicked smart, can see around the angles, and is a real business person. I think we are all familiar with Welch and the value he placed on HRM.

These next 24 months will be GREAT times for HR as the best people will do spectacular things to lead their organizations to greater market share, greater brand equity, improved employee relations and organizational climate, positioning the firm for greater profits once the economic faucet flows as it did in recent memory.

Kindest regards,

Ramon

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Permalink Reply by Ramon Jose Venero on August 23, 2008 at 2:52pm

Theresa-

In my view, the reply to your question is a function of two variables. The first being how competent is the HR function and its leadership and from that perspective, are these folks on par with the other business people in the C suite. If the HR folks are not business people, then no point discussing the matter any further; perhaps they should consider hiding under the table until the economy improves.

The second variable, is how committed the CEO is to a sustainable organization and business versus cashing out within the typical 3.5 year lifespan of today's chief executive. And, more importantly, how much does this person rely on the CHRO to leverage human capital (the principal value add of any economic process in my view) to outperform its competitors.

In terms of models for these two roles, I like to think of Helen Drinan in Boston (formerly SHRM's CEO) and Jack Welch. People like Helen are strategic, wicked smart, can see around the angles, and is a real business person. I think we are all familiar with Welch and the value he placed on HRM.

These next 24 months will be GREAT times for HR as the best people will do spectacular things to lead their organizations to greater market share, greater brand equity, improved employee relations and organizational climate, positioning the firm for greater profits once the economic faucet flows as it did in recent memory.

Kindest regards,

Ramon

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Permalink Reply by Cam Caldwell on October 30, 2008 at 9:23pm

Colleagues:

I fear that with the impending recession we will see a return to "lean and mean" management -- the kind that creates distrust and destroys commitment. The HR professional is likely to be nodded to occasionally but not given much serious consideration.

Ironically, when jobs get tighter the evidence (Pfeffer, 1998) suggests that more good people are available to be hired and getting "the right people on the bus" (Collins, 2001) gets a bit easier. Will HR professionals be likely to be heard in the coming belt-tightening that is imminent? I think we can easily predict that the answer will be "not likely."

I had an interesting experience while doing consulting for a health care company in South Texas not too long ago. I was called in to help assess the need for an HR system for this growing company. Since I hold the Senior Professional in Human Resources designation in addition to a PhD in HR and twenty-five years of consulting experience, I considered myself competent and confident. After offering my opinion at a meeting with the top management team, the CEO turned to me and replied, "Dr. Caldwell, could you do some research and tell us more about what the experts are saying about this issue?"

His point was entirely valid . . . and the clear message to HR professionals is this: "We must do our homework. We must cite the best available information. We must prepare ourselves to be valued business partners." Unfortunately, many of us lack the skills to know where to go to access that best available information. We rarely understand the concepts of strategic competitive advantage and how to translate those principles into improving service, profitability, and sustainability.

In a world where the body of knowledge now doubles every four years (Naisbitt and Aburdene, 1990), we must stay current and develop our expertise. We must integrate HR with the strategic goals of the firm . . . but do we know how to develop the expertise to become valued partners?

I think that HR professionals will face a decade of being taken less seriously until they can prove their ability to impact long-term wealth creation and sustainable competitive advantage.

Cam Caldwell

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Permalink Reply by Dr. Arup Barman on October 8, 2009 at 12:43am

Dear Welbourne,
I would like to say in the Indian context. Since, the human resources are plenty, Indian corporation does not feel to spend time about HRM&HRD. I have been observing from since 1991, there are some provement in the context of HRM, but still HRM is considered as third grade management discipline. People usually thinks finance, finance and finance. Perhaps Indian professional are yet to know about sadistic aspect of the finance; yet to know the vale of Human and Humane in the context of the human and economic progress at the time of crisis. In my university (Assam University), I have found the people who deals finance they adopt heartless approach in dealing with the HRM guys. They are only with the money and material.

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Permalink Reply by Shashi Balain on October 8, 2009 at 10:25am

Hi Arup
I understand where you are coming from but my view is that is just a small part of the whole story behind lack of importance for the HR function over all (and especially so in India). Even if there is abundance of “technically” trained manpower in India, there still is a dearth for professionals with the right management experience at the middle and higher levels. So at entry levels there are huge numbers of applicants but the picture starts to change as you see the demand and supply of talented employees with the “right management” and “leadership” experience.
My take on this topic in Indian context is in fact quite different! If there is a country where HR has a real scope for being on the table then it is India as the mismatch between the required talent and the availability is a real problem. Partly it is due to lack of visionary leadership (read the CEO) who fail to see the big picture for the company 10 years down the line and do not show enough interest in internal talent development practices as it is a cost to them in the present time and the benefits of any such investment will only be reaped by the future CEO; so why bother! Partly, it is HR to blame who are too occupied by the functional HR activities such as recruitment, rewards, promotions etc. (as this is what HR means when it is taught by our B-schools). They never talk about HR as strategy by looking in the future or do scenario planning as to what and how the HR might change keeping in mind that the business model of the company might change by virtue of the company trying to stay ahead of the game or the company might be forced to do so by its competitors (Apple forced the phone companies; Google forced Microsoft). Working in HR Centres (I work in UK), that’s what I am paid to do; I visit India quite often but I am yet to come across companies or business schools who either think of HR in this manner and work to raise their line of sight beyond functional HR. I think that’s what HR in India lacks. Not to say the western economies have got over this problem but I know quite a few that have awakened to this fact and they are working to bridge the gap.
So might take on this is very simple. The fault lines within the HR discipline: the business schools that teach a limited HR, the HR functions within companies that limit the scope and expectations from HR, and the HR consultancy companies that over-egg the importance of HR fads and fashions to make a fast buck when they are still in vogue only for HR to pick up the flack when nothing works as promised.
No one is letting us on board till we get our credentials right. For that to happen we need to be much savvy with:
1. strategy (ability to talk about future not just current fire fighting),
2. numbers (be able to tell the finance guys how much an intervention will cost and what returns to expect in short term and long term), and
3. marketing (be good at internal communications and take people on board)
HR needs to think of itself as brand; what we need is more respect commanded through our ability to talk not just business but sustainable business. If we get it right, then abundance of manpower will only help us do our job better and not hinder it.
Regards,
Shashi

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