During the last decade, the Human Resources (HR) function experienced drastic change in its role, status, and influence. Jack J. Phillips writes, “Some HR executives recognized the change and stepped up to the challenge. A panel of top-level HR executives recently assembled by Personnel Journal agreed that HR is moving away from the transactional, paper-pushing, hiring/firing support function it has been and is becoming a bottom-line business decision maker…Peter Drucker predicted these changes in The Wall Street Journal over ten years ago when he asserted that the personnel department, in addition to changing its name to human resources, must behave quite differently and follow the line mode of behavior rather than the staff mode”(pp.1-5).And hence, he rightly argues that “from recent articles, reports, books, and interviews on the subject, seven trends can be identified that have a significant impact on an organization’s bottom-line results and the HR function’s role in the process. These trends include the increased importance of the HR function, increased accountability, organizational change and quality programs, improvement in productivity, adoption of HR strategies, growing use of HR’s information systems, and reliance on partnership relationships. Collectively these trends enhance or complement the efforts of the HR department to monitor and improve its contribution to organizational performance” (pp.5-6).
Within this context, he divides his book into four parts as follows:
Part I- presents a general framework for evaluating the HR function (Chapters 1-2)
Part II- presents the issues involved in developing a results-based approach to HR (Chapters 3-4)
Part III- focuses on specific ways to measure the contribution of HR (Chapters 5-9)
Part IV- explores data analysis and presentation results.
One of the core concepts of the book, in Chapter 1, he focuses on paradigm shifts from traditional HR approach to a more results-based approach demanded in today’s environment, and summarizes these paradigm shifts necessary for a results-based approach as follows:
Traditional Approach:
(1) New programs initiated by request or suggestion of any significant manager or group.
(2) A maltitude of programs in all areas.
(3) Existing programs are rarely, if ever, eliminated or changed.
(4) Count activities, hours of involvement, number of employees involved, etc.
(5) Limited management involvement in the HR process.
(6) HR viewed as cost center.
(7) HR staff unfamiliar with operations issues.
(8) HR staff lack knowledge of finance and business concepts.
Results-Based Approach:
(1) New programs initiated only after a legitimate need is established.
(2) Fewer programs with greater opportunity to make an impact.
(3) Existing programs are regularly reviewed and eliminated when necessary.
(4) Measure the impact of programs on the organization.
(5) Extensive involvement and collaboration with management.
(6) HR is viewed as an investment in employees.
(7) HR staff very knowledgeable about operations issues.
(8) HR staff versed in basic finance and business concepts.
I highly recommend this invaluable study to all HR executives.
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