The Role of Human Resource Manager: Change Agent vs. Business Partner? Research Into HRM in Italy
The Role of Human Resource Manager: Change Agent vs. Business Partner? Research Into HRM in Italy
Daniele Boldizzoni is a Professor in Organization Theory and     Luca Quaratino is a researcher in Organization Theory
Human Resource Management at IULM University of Milan. He        and Human Resource Management at IULM University of
graduated in Economics completing his studies at the Tavistock   Milan. He has graduated in Law and completed his studies at
Institute (UK). He developed his professional experience as      the Industrial and Labour Relations Department at Cornell
both HR manager and consultant/trainer for the most relevant     University (USA). For more than fifteen years he has worked
Italian companies between the 70s and 90s. Today his research    as consultant/trainer in HRM and organizational development
interests deal with the growth of small and family businesses,   issues for major Italian companies. Today his research interests
new developments in learning/training processes in postmodern    deal with “train the trainer” processes in transition economies,
society, and the evolution of HRM in Italian companies.          the relationship between organizational culture, business
                                                                 strategy and performance, and the evolution of HRM in Italian
E-mail: daniele.boldizzoni@iulm.it                               companies.
E-mail: luca.quaratino@iulm.it
State of the Art and Evolution of                          Within this stream, consistent literature
Human Resource Management                                  has developed analysing the role of HRM
(HRM)                                                      professionals in defining and implementing
                                                           policies and tools coherent with the strategic
Many classic contributions in the literature on            goals of the organization (McKee, 1997;
the state of the art and the evolution of HRM              Sparrow and Marchington, 1998; Wright and
focus on the links between the environment                 Snell, 2005).
and corporate strategies on the one hand, and
HRM policies and tools on the other (Schuler               In particular, Ulrich (1998) maintains that in
and Jackson, 1987; Wright, Snell, Dyer, 2005;              order to face the challenges coming from the
Boxall and Purcell, 2008), underlining the                 competitive environment, the HRM function
continuous effort in adapting HRM policies                 should be able to cover different roles,
and processes to strategic and organizational              sometimes even contradictory, which can be
changes. This approach includes all the                    defined according to two main variables:
contributions related to “strategic human
                                                           - strategic/long term or operative/short term
resource management” (Fonbrun, Tichy,
Devanna, 1984; Noe, Hollenbeck, Gerhart,                   - managing processes or people
Wight, 1994). From this point of view, the
evolution of HRM is considered a difficult                 The matrix coming from these variables
and continuous adapting to changes both                    outlines the following roles (see figure 1):
in the environment and in the strategies and
                                                           Business Partner: the main task of the HR
structures of the organization. Accordingly,
                                                           manager is to align the contribution of
HRM has two main tasks. On the one hand,
                                                           human resources with the company’s business
it should support the top management in
                                                           strategy;
defining the corporate strategy, and on the
other hand, it should set up all the processes             Functional Expert: the main task is to design
and tools necessary to put the strategy into               and manage efficient and effective HRM
action (Wright and Mc Mahan, 1992).                        systems (procedures, methods, tools);
42                    The role of Human Resource Manager: Change Agent vs. Business Partner? Research into HRM in Italy
2011 No 28                                                                        EBS REVIEW
Employee Advocate: this role refers to managing     acquisition of competencies useful to support
employee commitment and contribution to             change are critical for both the credibility and
the company. It means monitoring personnel          success of HRM professionals.
satisfaction with the working conditions on
a daily basis. The basic assumption is that         The adoption of the “business partner” role
personnel satisfaction has a positive impact on     is even more difficult because it is not just a
both productivity and company performance;          matter of acquiring new competencies, but
                                                    it deals with effectively settling the structural
Change Agent: this role implies the involvement     conflict with line managers related to human
of the organization in change management,           resources management. This conflict is due to
and HRM professionals have to identify              the fact that while line managers are mainly
and overcome resistance to change, and to           interested in managing human resources
generate flexibility and adaptability among the     according to productivity and the short-
personnel.                                          term perspective, HRM professionals should
                                                    consider people management from a long-
Ulrich believes that the efficiency and             term perspective and with a specific focus on
effectiveness of the HRM function depend            competence development (Barney and Wright,
on the ability to play all these roles at the       1998; Paoletti, 2008). And that is the most
same time, mixing them up according to the          compelling challenge against which HRM is
environmental contingencies and strategic           expected to measure itself.
goals.
                                                    In recent decades, studies conducted on
Nonetheless, observations of real practice          the state of HRM in the Italian context have
points out that while the roles “functional         pointed out highs and lows, partly confirming
expert” and “employee advocate” can be              a slowdown in its evolutionary process: on
easily adopted, “change agent” and “business        the one hand, the models of “personnel
partner” are more difficult to play (Losey,         administration” seem to have been abandoned
Meisinger, Ulrich, 2005), given that the first      and the mere role of “functional expert” is
one implies a longer term orientation and           considered insufficient. At the same time, the
a stronger focus on valuing people, and the         shift towards “human resources development”
second one calls for higher strategic coherence.    models and roles, which are more consistent
                                                    with strategic orientations, seem to be quite
In the first case, even if the role of leading
                                                    a distant target (Camuffo and Costa, 1993;
organizational change is generally recognized
                                                    Boldizzoni, 1997, 1999).
in theory to belong to HRM professionals, it
can actually be seen that in recent decades
changes have mostly been led directly by top        Research Objectives and Methodology
management, supported by external consultants
                                                    The research presented here aims at
rather than internal HRM professionals, who
                                                    contributing to the discussion on the role
are probably considered less competent and
                                                    of HRM in Italy, trying to understand, in
reliable (Boldizzoni, 2009). It can be observed
                                                    particular, if the intention of adopting new and
that “personnel departments are very often
                                                    more challenging roles, firstly those of change
considered to be the rear-guard towards
                                                    agent and of business partner, had a concrete
innovation, flexibility and change, acting as the
                                                    translation into real practices in recent years.
guardians of traditions deeply rooted in rules
and procedures, rather than as explorers of         The data was collected in 2009 through an
innovative pathways” (Ulrich, 1998), while the      on-line questionnaire sent to more than 500
44                      The role of Human Resource Manager: Change Agent vs. Business Partner? Research into HRM in Italy
2011 No 28                                                                         EBS REVIEW
Business Partner vs. Change Agent:                                      department, criteria for the assessment of
Data Analysis                                                           its performance, the main problems and
                                                                        areas of engagement, and concrete actions
In this section the orientations and actions                            implemented in some key innovative areas of
characterizing the roles of Change Agent (CA)                           human resource management.
and Business Partner (BP) are analysed, trying
indicate the gaps and differences compared to
                                                                        HRM strategic objectives
the overall sample. As a matter of fact, the aim
is to understand whether, beyond the formal                             The first question was aimed at identifying
statement of having adopted such roles, it is                           the strategic objective of HRM departments
possible to identify policies, approaches and                           in order to make a distinction between
concrete areas of engagement differentiating                            “conservative” policies centred on respect for
these HRM departments from the others who                               norms/contracts and on maintaining a good
participated to the survey.                                             internal climate, and “development” policies
                                                                        based on contributing to the development of
In particular, the following areas of analysis
                                                                        the organizational system and the complete
were considered: the objectives of the HRM
                                                                        expression of the human potential available.
Compared to the overall sample, generally                               BPs instead, seem to have a slightly more
both CA and BP show a stronger orientation                              ambiguous orientation that is less distinct
towards valuing people.                                                 from the total sample. If on the one hand,
                                                                        they show a sounder commitment to valuing
CAs are clearly oriented towards valuing people                         people, even if to a great degree this is lower
and integrating them into the organization. On                          than the same in CAs (the difference with the
the one hand, they have the objective of being                          overall sample is around 7%), at the same
proactive in integrating human resources into                           time their prevailing objective is to ensure
the overall organizational system (strategy,                            the efficient use of people, according to
structure, culture, technology, etc.); on the                           restructuring processes. In other words, they
other hand, it is even more strategic (the                              seem to interpret the role of BP more in terms
difference with the overall sample is more than                         of adaptation to the requests for efficiency
20%) for them to develop human potential at                             coming from the line management than as a
any level in the organization – sustaining the                          contribution to relaunching the company in
competitive advantage of the organization                               terms of organizational development.
through people (Pfeffer, 1998).
46                             The role of Human Resource Manager: Change Agent vs. Business Partner? Research into HRM in Italy
2011 No 28                                                                                  EBS REVIEW
Compared to the overall sample, for both CA                  main driver is towards satisfying the requests
and BP the dimension of the pure functional                  of internal customers (the line manager
competence of HRM experts seems to count                     responsible for specific organizational
less, while attention to labour costs and staff              processes) and not necessarily those of single
management is in line with the total sample.                 employees with whom the partnership seems
                                                             to be a little bit weaker.
A differentiated outline does emerge. For CAs,
the clearly prevailing criterion is that of “people
development”, an area absolutely consistent
                                                             Main problems and areas of
with the stated objective of the function (see               engagement for HRM today
above), and on which CAs perceive they have                  One specific question had the objective of
to account for their actions and results. As far             investigating what primary problems face
as it concerns the BPs, the distinctive criterion            HRM departments today; in other words,
appears to be that of orientation to service                 which areas of engagement is it called to direct
instead, while referring to people development,              its energies and actions towards in order to
the figures are slightly lower than the overall              provide an effective answer to the requests
sample (48% vs. 50.65%), suggesting that the                 coming from the organization.
Compared to the total sample, once again                     development of people and of the organization.
CAs show an overall orientation that is more                 As a matter of fact, these HRM departments
clearly differentiated and focused towards the               are more engaged in certain critical issues:
management of work atmosphere, culture                                   line with the overall data, this seems to highlight
and values (54.55% vs. 50.00%); training and                             a certain delay in the entire Italian social and
development of people (45.45% vs. 29.49%);                               economic system, which even companies that
and search for organizational flexibility                                say they have adopted more advanced roles in
(54.55% vs. 33.33%). It is interesting to                                human resource management are unable to
observe that attention to efficiency and cost                            avoid.
control also remains fundamental for CAs –
any organizational change and development                                HRM present practices
action, in time of crisis, cannot leave this
dimension out of consideration.                                          The last question aimed at identifying actions
                                                                         concretely implemented by HRM departments
BPs on the contrary show a profile which is closer                       in the deployment of their functional policies.
to the overall sample, with a differentiation                            In particular, attention was set on specific
on the training and development of people                                cutting edge issues (beyond the traditional
(34.80% vs. 29.49%) and most of all on service                           human resource management leverages),
to the internal customer (21.70% vs. 10.26%)                             which should in themselves more clearly show
as already noticed.                                                      the transition of HRM departments towards
                                                                         the adoption of more innovative roles.
What is striking here is the absence of both CAs
and BPs on the topic of work/life quality – in
48                              The role of Human Resource Manager: Change Agent vs. Business Partner? Research into HRM in Italy
2011 No 28                                                                                       EBS REVIEW
Note: only one answer per section (a, b, c, etc.) was allowed.
Generally, a weak initiative on these crucial                     agreements with services providers, etc.). Also
issues does emerge, indicated by the limited                      on this issue, BPs appear fundamentally less
differentiation of CA and BP behaviours from                      oriented towards people.
the overall sample.
                                                                  Overall it seems to be confirmed that while the
Focusing on each single sub-section of HRM                        statement of having a role of CA is generally
practices, it is possible to draw some insights                   supported by a stronger orientation towards
for the present analysis:                                         valuing people; on the contrary, that of being
                                                                  a BP appears to be less substantially founded,
productivity: CAs search for efficiency and                       almost a mere formal label with no consistent
productivity not only through variable rewards,                   practices and actions corresponding.
but also through flexible solutions oriented to
people’s needs (e.g. remote working) and the
promotion of internal entrepreneurship; BPs
                                                                  Conclusions
limit themselves to introduce variable rewards;                   The aim of the research presented in this paper
                                                                  was to understand the progress of companies
service orientation: BPs state that service
                                                                  operating in Italy in their transition from an
orientation is the main criterion for assessing
                                                                  “administrative approach” to new and more
the performance of the function, but they
                                                                  challenging roles, particularly those of change
are poorly engaged in consistent actions
                                                                  agent and business partner, according to
(e.g. monitoring of customer satisfaction);
                                                                  Ulrich (1998).
CAs instead implement a significant range
of actions, like monitoring internal customer                     The analysis of the overall data highlights
satisfaction and introducing the role of the                      that the two trajectories of the evolution of
account (hard), as well as 360° evaluation, a                     human resource management seem to be
cutting edge method for developing people’s                       only partially confirmed in the Italian context.
competencies (soft);                                              Even with the caution necessary when drawing
                                                                  generalizations due to the limited number of
potential development: CAs show a strong
                                                                  companies participating in the survey, the
and definite orientation, given that they
                                                                  choice of some companies defining themselves
invest in segmenting their policies, towards
                                                                  both as business partner and change agent
Equal Opportunities and focused plans for
                                                                  seems to be only weakly tied to human resource
competency development (tailored for groups
                                                                  management policies and practices actually
and individuals), as well as towards an opening
                                                                  coherent with these “labels”.
towards external experiences (intercompany
training); BPs are actually indistinct from the                   Nonetheless, the collected data allows us to
overall sample, so less proactive on potential                    highlight rather different situations related to
development;                                                      the two roles analysed.
work and life quality: CAs seem to be more                        On the one hand, it is possible to underline
focused and committed to people (“work-                           that “business partnership” in the Italian
life balance” programs, corporate nursery,                        context appears to be a weak concept, given
that it doesn’t seem to be univocally related              and innovations likely based on the assumption
to an organic set of variables referring to                that organizational change and development
the objectives and the activities of the HR                processes can be effectively carried out only
department. As a matter of fact, HRM                       by investing in human capital – the one
departments defining themselves as Business                organizational resource that can support them
Partner, at the same time declare that they                successfully.
adopt practices and actions not strictly
consistent with BP.                                        At the same time, the quantitative drop of
                                                           the diffusion of the change agent role can
It is possible to advance the hypothesis, yet              be explained by referring to the on-going
to be confirmed by further surveys on more                 economic crisis, an issue recalled more than
representative samples of companies, that                  once in this paper. It might have urged many
business partnership is intended more as a                 HRM departments involved in company
“formal label”, adopted by HRM departments                 restructuring towards a short term perspective
in order to suggest to their internal (top                 and a stronger focus on the efficiency of
management, line management, employees)                    the function’s processes (here also a strong
and external stakeholders (HRM professional                increase in the functional expert role).
community, experts and scholars) they are
“up-to-date”, than as a driver useful to guide             In short, while there are many HRM
behaviours and concrete actions (Ulrich, 1997;             departments defining themselves as business
Huselid, Jackson, Schuler, 1997). Referring                partner, but limiting themselves to recall a
to neo-institutional theory (Powell and Di                 “label” not supported by consistent actions,
Maggio, 1991), it possible to assume that                  there is a smaller number of HRM departments
the HRM department is engaged in activating                declaring they are adopting the role of change
isomorphic processes that are both mimetic                 agent, but these are prevalently coherent in
(in times of uncertainty, organizations decide             their concrete behaviours and practices.
to imitate what the believed benchmarks are
                                                           The evidence from the research indicates that
doing) and normative (organizations decide
                                                           a realistic possible development of the studied
to uncritically adopt managerial models
                                                           roles (change agent and business partner)
developed and disseminated by the owner of
                                                           is based more on identifying specific useful
“professional knowledge and know how” as
                                                           contributions that the HRM department can
business schools and consultancy firms).
                                                           give the organization than on the statement of
On the other hand, it is possible to point out             having adopted an abstract role.
that if the role of change agent in the last
                                                           So, it is not a matter of simply claiming the
decade has reduced its diffusion from a strictly
                                                           role of change agent or business partner, but
quantitative point of view, at the same time, it
                                                           of building over time a sound relationship
seems to be much sounder today. As a matter
                                                           with the different stakeholders with the aim
of fact it is characterized by the adoption of
                                                           of analysing and understanding their specific
HRM objectives, strategies and practices that
                                                           needs, suggesting coherent interventions
are rather coherent and based on the idea of
                                                           and actions, answering to organizational
valuing human capital – according to Ulrich’s
                                                           needs for change and development, and
model, a long-term orientation to people.
                                                           offering continuous support to top and line
So HRM departments seem to interpret the
                                                           management to achieve business results.
change agent role in terms of strong care for
people through dedicated policies, systems
50                    The role of Human Resource Manager: Change Agent vs. Business Partner? Research into HRM in Italy
2011 No 28                                                                       EBS REVIEW
As a matter of fact this approach appears to be     Boldizzoni D. 2009. Management delle Risorse
consistent with some of the most recent trends      Umane, Il Sole 24 Ore, Milano.
characterising research on human resource
management, which focus more and more on            Boxall P. and Purcell J. 2008. Strategy and
the links between HRM policies and practices,       Human Resource Management, Hampshire:
and overall company performance (Chang              Palgrave MacMillan, New York.
and Huang, 2005; Becker, and Huselid, 2006;
                                                    Camuffo A. and Costa G. 1993. “Strategic
Akhtar, Ding, Ge, 2008). And the analysis
                                                    Human Resource Management”, Sloan
of these links might represent an interesting
                                                    Management Review, winter.
perspective for future research into HRM roles.
                                                    Chang W. and Huang T. 2005. “Relationship
Notes                                               between     strategic      human      resource
                                                    management and firm performance: A
1 - The possible answers were not limited to        contingency perspective”, International Journal
those indicated in Ulrich’s model (functional       of Manpower, 26 (5), 434−449.
expert, employees’ advocate, change agent,
business partner), but also included two more       Fonbrun C., Tichy N. and Devanna M. 1984.
alternatives – “top management advisor” and         Strategic Human Resource Management,
“line consultant” – resulting from the debate       Wiley, New York.
on the role of HRM in the most recent Italian
                                                    Huselid M., Jackson S. and Schuler R. 1997.
literature. These two are not part of the present
                                                    “Technical and strategic human resources
analysis.
                                                    management effectiveness as determinants of
                                                    firm performance” Academy of Management
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Abbreviations
HRM: Human Resources Management
52                     The role of Human Resource Manager: Change Agent vs. Business Partner? Research into HRM in Italy
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