THE EVOLVING/STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT

HRM416 – CHAPTER 5
HASIN MAHTAB
Traditional HR
Definition: Traditional HR focuses on administrative and operational activities such as hiring,
payroll, and compliance. Its role is primarily transactional and reactive, addressing immediate
needs without considering long-term organizational goals.
Characteristics:
1. Traditional HR prioritizes ensuring compliance with labor laws and regulations, acting
as a guardian against legal and organizational risks.
2. It is heavily focused on maintaining employee records and ensuring accurate
documentation of workforce data.
3. Traditional HR emphasizes consistency in applying policies and procedures across
the organization, ensuring fairness and avoiding disputes.
4. The function tends to operate in isolation from other departments, often lacking direct
integration with core business operations.
5. It focuses on solving immediate personnel issues, such as handling grievances or
managing attendance, without analysing broader workforce trends.
6. Traditional HR is often driven by cost control, working to minimize expenses
associated with hiring, training, and benefits.
7. It relies on manual or basic HR tools, with less emphasis on advanced technologies
or data analytics for decision-making.
8. The effectiveness of Traditional HR is measured by efficiency in processing tasks,
such as the speed of hiring or the accuracy of payroll, rather than its strategic impact.
9. Communication in Traditional HR is often one-way, focusing on delivering policies and
instructions rather than fostering collaboration and dialogue with employees.
10. Employee development is limited, with more emphasis on fulfilling immediate training
requirements rather than investing in career growth or leadership pipelines.
Example:
• A traditional HR department posts job ads, screens resumes, and coordinates
interviews to fill open positions. The primary goal is to hire someone quickly to meet
an immediate need, without linking this hire to long-term business goals.

Strategic HR
Definition: Strategic HR integrates HR practices with the organization’s overall strategy to
create a competitive advantage. It proactively aligns workforce planning, talent management,
and organizational goals.
Characteristics:
1. Strategic HR emphasizes building a strong organizational culture that supports
innovation, collaboration, and adaptability.
2. It uses advanced HR analytics to predict workforce trends, identify talent gaps, and
make data-driven decisions that align with business goals.
3. Strategic HR integrates closely with other departments, ensuring that HR strategies
are embedded into operational plans and initiatives across the organization.
4. It focuses on developing a future-ready workforce by identifying critical skills and
investing in continuous learning and upskilling programs.
 5. Strategic HR actively promotes diversity, equity, and inclusion (DEI) as core principles
to enhance innovation and reflect societal values.
6. Employee engagement and satisfaction are treated as strategic priorities, with HR
initiatives designed to improve retention and productivity.
7. Strategic HR anticipates market and industry shifts, aligning recruitment and talent
management to meet future business needs effectively.
8. It fosters leadership development at all levels, preparing high-potential employees for
future roles and ensuring seamless succession planning.
9. Strategic HR measures its success not just by HR metrics but also by its impact on
business outcomes, such as revenue growth, market share, and customer satisfaction.
10. It leverages technology, such as HR software and artificial intelligence, to optimize
talent management and support strategic decision-making processes.
11. Strategic HR advocates for a people-first approach, ensuring employee well-being and
work-life balance are integral to organizational success.
12. Communication in Strategic HR is two-way, fostering collaboration and transparency
between employees and leadership to align expectations and goals.
Example:
• In a technology firm planning global expansion, a strategic HR team identifies the skills
required for international operations, creates training programs, and develops a talent
pipeline to support the expansion over the next five years. They measure how these
initiatives contribute to the company’s global strategy.
TRADITIONAL HR VS STRATEGIC HR

Aspect Traditional HR Strategic HR

Aspect Traditional HR Strategic HR

1. Focus Day-to-day HR operations and
Aligning HR practices with
administrative tasks. long-term business goals.
2. Approach Reactive, addressing
Proactive, anticipating future
immediate issues. needs and trends.
3. Role Support function, separate from
Strategic partner, integrated
strategy. with leadership.
4. Time Horizon Short-term focus. Long-term perspective.
5. Activities Recruitment, payroll,
Workforce planning,
compliance, and record-
leadership development, and
keeping. succession planning.
6. Metrics Efficiency in task execution
Impact on business
(e.g., speed of hiring). outcomes (e.g., talent
retention, profitability).
7. Technology Use Limited use of technology, Advanced tools like HR
manual processes. analytics and AI for decision-
making.
8. Employee Minimal, focusing on basic Comprehensive, fostering
Development training. career growth and leadership
readiness.
POSSIBLE ROLES ASSUMED BY THE HR FUNCTION
1. Administrative Expert
• Focus: Streamlining and managing operational HR tasks such as payroll, benefits
administration, and compliance.
• Contribution: Enhances efficiency by ensuring HR processes are reliable, cost-
effective, and legally compliant.
• Example: Implementing an automated payroll system to reduce errors and save time.

2. Employee Champion
• Focus: Advocating for employee well-being, satisfaction, and engagement.
• Contribution: Builds a positive work environment that fosters loyalty, productivity, and
retention.
• Example: Organizing wellness programs and addressing employee grievances
effectively.

3. Change Agent
• Focus: Facilitating and managing organizational change, including cultural shifts,
restructuring, and adapting to new business strategies.
• Contribution: Ensures smooth transitions by aligning HR policies with new objectives
and preparing the workforce for change.
• Example: Leading employee training during the adoption of a new technology
platform.

4. Strategic Partner
• Focus: Collaborating with leadership to align HR practices with long-term business
strategies.
• Contribution: Drives competitive advantage by ensuring that the workforce
capabilities support organizational goals.
• Example: Developing succession planning and leadership development programs to
secure future business growth.

5. Talent Manager/Architect
• Focus: Identifying, recruiting, and developing the right talent to meet current and
future organizational needs.
• Contribution: Builds a strong talent pipeline and fosters continuous learning and
development.
 • Example: Designing career development paths and employee upskilling programs.

6. Compliance Officer
• Focus: Ensuring adherence to labor laws, organizational policies, and industry
standards.
• Contribution: Minimizes legal risks and maintains ethical standards within the
organization.
• Example: Conducting audits to ensure compliance with workplace safety regulations.

7. Cultural Steward
• Focus: Shaping and sustaining a strong, positive organizational culture that reflects
core values and vision.
• Contribution: Strengthens employee alignment with the company’s mission and
fosters a cohesive environment.
• Example: Promoting diversity, equity, and inclusion (DEI) initiatives.

8. Performance Manager
• Focus: Overseeing performance management systems to ensure individual and team
contributions align with business objectives.
• Contribution: Drives accountability and continuous improvement through feedback
and goal-setting mechanisms.
• Example: Implementing a performance appraisal system tied to key performance
indicators (KPIs).
DETAILED DISCUSSION

1. Administrative Expert

Detailed Definition:

The Administrative Expert role within HR focuses on efficiently managing the routine
administrative and operational functions of the HR department. This includes overseeing
processes such as payroll, benefits administration, compliance with labor laws, and record-
keeping. The goal is to streamline HR operations, minimize errors, and ensure that all
processes are cost-effective and legally compliant.

Explanation:

An Administrative Expert plays a critical role in managing day-to-day HR tasks and ensuring
that operations run smoothly without unnecessary disruptions. By automating routine
processes, managing employee records accurately, and staying on top of legal compliance,
HR reduces operational risks and enhances the overall efficiency of the organization.

Example:
For example, a company with hundreds of employees might struggle to manage payroll
manually. An HR department in this situation may implement an automated payroll system
that calculates wages, deductions, and benefits in a fraction of the time, eliminating human
errors and ensuring that payroll is accurate and delivered on time.

Key Responsibilities:

• Managing employee records and ensuring data accuracy.

• Administering payroll, benefits, and compensation.
• Ensuring compliance with labor laws and industry regulations.
• Maintaining up-to-date employee benefits packages and ensuring proper
documentation.
• Implementing and managing HR software for operational efficiency.

Contribution to the Organization:

By streamlining HR processes, the Administrative Expert role enhances the overall efficiency
of the organization. It reduces administrative costs, minimizes legal risks, and ensures that
the company complies with regulations. This creates a more efficient work environment,
allowing the HR department to focus on more strategic initiatives.

2. Employee Champion

Detailed Definition:

The Employee Champion role in HR focuses on promoting employee engagement,

satisfaction, and well-being. This role advocates for the needs and interests of employees,
ensuring their voices are heard within the organization. It also works on improving
organizational culture, addressing grievances, and maintaining a positive work environment.

Explanation:

An Employee Champion is responsible for ensuring that employees feel valued and
supported. This involves advocating for their needs, improving job satisfaction, and fostering
a healthy, supportive workplace culture. The role focuses on maintaining employee morale
and ensuring that the workforce is motivated and productive.

Example:
A company may have high employee turnover due to burnout and lack of support. The HR
team, acting as Employee Champions, could implement an employee wellness program that
offers stress-relief workshops, flexible working hours, and mental health resources. This
program would aim to improve employee well-being, resulting in higher job satisfaction and
reduced turnover.

Key Responsibilities:

• Advocating for employee needs and concerns.

• Fostering a positive and inclusive workplace culture.
• Implementing employee recognition programs to boost morale.
• Managing conflict resolution and grievance procedures.
• Promoting work-life balance and employee well-being initiatives.

Contribution to the Organization:

The Employee Champion role helps create a loyal and engaged workforce, which in turn
boosts productivity and retention. By addressing employee concerns and fostering a positive
work environment, this role ensures a motivated and happy workforce, contributing to overall
organizational success.

3. Change Agent

Detailed Definition:

The Change Agent role in HR focuses on managing and facilitating organizational change.
This includes guiding employees through changes such as cultural shifts, restructuring, the
adoption of new technologies, or adjustments in business strategies. HR as a Change Agent
ensures that employees are prepared, supported, and equipped to navigate transitions
smoothly.

Explanation:

A Change Agent is responsible for driving and managing change within the organization. HR
plays a key role in ensuring that the workforce adapts to these changes successfully. This
role requires a deep understanding of change management principles and the ability to
manage employee concerns, mitigate resistance, and promote a positive outlook on change.

Example:
When a company implements a new enterprise resource planning (ERP) system, HR, in the
role of a Change Agent, could organize comprehensive training sessions for employees,
create a communication plan to keep staff informed about the changes, and provide ongoing
support throughout the transition. This ensures that employees are comfortable with the new
system and reduces disruptions in the workflow.

Key Responsibilities:

• Planning and managing change initiatives within the organization.

• Communicating change clearly to employees and leadership.
• Providing training and development to help employees adapt to changes.
• Mitigating resistance to change and addressing employee concerns.
• Monitoring the impact of change and making adjustments as needed.

Contribution to the Organization:

The Change Agent role ensures that organizational changes are implemented smoothly and
effectively, minimizing disruptions and employee resistance. By preparing the workforce for
change and providing support throughout the process, HR helps the organization remain
agile and adaptable in a rapidly evolving business environment.

4. Strategic Partner

Detailed Definition:

The Strategic Partner role in HR involves working closely with leadership to align HR
initiatives with the organization's long-term business strategies. HR serves as a partner to
business leaders by helping to ensure that the workforce has the necessary skills, culture,
and structure to achieve the company's strategic goals. This role transforms HR from a
support function to a key driver of business success.

Explanation:

A Strategic Partner in HR actively participates in the organization’s strategic planning

process and helps design HR policies, systems, and programs that are aligned with the
company’s vision and business objectives. This role involves talent management, workforce
planning, leadership development, and succession planning to ensure the organization has
the talent it needs to achieve its goals.

Example:
A company aiming for expansion into new markets may rely on HR as a Strategic Partner
to assess the skills and competencies required for success in those markets. HR would be
tasked with developing a talent acquisition strategy, identifying leadership potential within the
current workforce, and creating development programs to prepare employees for leadership
roles in the new regions.

Key Responsibilities:

• Aligning HR strategies with the company’s business objectives.

• Developing talent management strategies to meet long-term organizational goals.
• Collaborating with senior leaders to plan for future workforce needs.
• Identifying and nurturing future leaders through succession planning.
• Contributing to business strategy by advising leadership on workforce trends and
issues.

Contribution to the Organization:

The Strategic Partner role helps ensure that HR practices are not just reactive but aligned
with the organization’s broader goals. By contributing to workforce planning, leadership
development, and talent management, HR as a Strategic Partner helps the organization
achieve competitive advantage, foster growth, and navigate challenges in an ever-changing
business environment.
 ADDITIONAL CONTENTS

HR activities in Strategic HRM:

1. Workforce Planning

• Activity: Strategic workforce planning involves assessing current and future

human resource needs to ensure that the organization has the right people
in the right roles at the right time.
• Objective: Aligning the workforce with the business's long-term goals and
ensuring that talent acquisition, retention, and development are proactive.
• Example: Conducting a skills gap analysis to predict future talent needs as
the company expands into new markets.

2. Talent Acquisition and Recruitment

• Activity: SHRM focuses on recruiting talent that aligns with the organization’s
strategic needs. This includes attracting and hiring individuals with the skills,
experience, and mindset to support future business goals.
• Objective: Bringing in high-quality talent that can contribute to achieving
strategic objectives.
• Example: Partnering with universities or professional networks to identify
future leaders or specialized talent that will support new strategic initiatives.

3. Employee Development and Training

• Activity: HRM in a strategic context involves designing and implementing

development programs that help employees acquire the skills and
competencies needed for organizational growth.
• Objective: Ensuring that employees continuously improve their skills and are
equipped to take on new challenges as the business evolves.
• Example: Creating leadership development programs to prepare employees
for future leadership roles in alignment with the company’s growth strategy.

4. Succession Planning

• Activity: Succession planning ensures the organization has a pipeline of

talent to fill critical roles in the future. This involves identifying potential
leaders within the organization and preparing them for advancement.
• Objective: Ensuring business continuity and leadership stability by
developing internal talent for key positions.
 • Example: Implementing a mentorship program where senior leaders mentor
high-potential employees to prepare them for future roles.

5. Performance Management

• Activity: SHRM emphasizes aligning employee performance with

organizational goals. This includes setting clear performance expectations,
providing regular feedback, and evaluating performance in line with business
strategies.
• Objective: Driving individual and team performance to contribute to
achieving organizational goals.
• Example: Establishing key performance indicators (KPIs) that tie individual
employee performance to broader business outcomes such as revenue
growth, customer satisfaction, or innovation.

6. Employee Engagement and Retention

• Activity: Engaging and retaining talent is a critical aspect of SHRM. This

involves creating a positive work culture, offering opportunities for growth,
and ensuring employees feel valued and motivated.
• Objective: Enhancing employee satisfaction and loyalty, which leads to
higher productivity and retention rates.
• Example: Implementing flexible work arrangements or recognition programs
to increase job satisfaction and retain top talent.

7. Compensation and Benefits Management

• Activity: Developing competitive compensation and benefits packages that

align with the organization’s strategy and attract, motivate, and retain top
talent.
• Objective: Ensuring that compensation practices are aligned with the
business’s objectives and market trends to maintain competitiveness.
• Example: Offering stock options or profit-sharing plans to key employees as
part of a long-term incentive plan aligned with organizational growth.

8. Organizational Culture Development

• Activity: SHRM focuses on creating and nurturing a corporate culture that

aligns with the organization’s values, mission, and strategic goals. This
includes promoting a culture of innovation, collaboration, and customer-
centricity.
 • Objective: Shaping an environment where employees are motivated to
contribute to organizational success.
• Example: Organizing team-building events or creating an innovation hub to
foster collaboration and creativity, supporting the organization’s strategic goal
of becoming more innovative.

9. Change Management

• Activity: HR plays a crucial role in managing organizational change by

helping employees adapt to new strategies, structures, or technologies. This
involves preparing, supporting, and helping employees navigate through the
transition process.
• Objective: Ensuring that employees are ready and capable of handling
change, minimizing resistance, and maintaining productivity during
transitions.
• Example: Leading training and communication efforts during a digital
transformation to ensure employees are comfortable with new systems and
processes.

10. HR Analytics

• Activity: HRM in a strategic context leverages data and analytics to drive

decision-making. This involves collecting and analyzing data on employee
performance, engagement, retention, and other key HR metrics to inform
strategic decisions.
• Objective: Making data-driven decisions that optimize talent management
and enhance organizational performance.
• Example: Using predictive analytics to assess turnover risks and take
proactive steps to retain high-performing employees.

11. Diversity, Equity, and Inclusion (DEI) Initiatives

• Activity: SHRM includes ensuring that the organization builds a diverse

workforce that reflects the values of equality and inclusion. This includes
recruiting from diverse talent pools, providing equal opportunities, and
promoting an inclusive culture.
• Objective: Creating a diverse and inclusive workplace that enhances
creativity, innovation, and aligns with societal expectations.
• Example: Developing programs to recruit diverse talent and ensuring that
there are clear pathways for career development for all employees,
regardless of background.
12. Leadership Development

• Activity: HR plays a strategic role in identifying and developing future

leaders. This involves providing opportunities for employees to enhance their
leadership skills, preparing them for higher levels of responsibility.
• Objective: Ensuring that the organization has a strong leadership pipeline to
support future business strategies.
• Example: Creating leadership development programs, such as mentorship,
coaching, and executive training, that prepare employees for senior
leadership positions