Human Resource Management in the 21st Century

Michelle Eichorn Says:

I think we need a definition of “business professional” to respond to the question. Numbers? In my capacity in Human Resources I have had to cost 3 and 4 year union contracts, manage wage and benefit budgets, design compensation plans that attract, reward, and retain people from entry-level staff to CEOs. Sales? Ramping up for business growth includes recruitment, training, forging community links with community colleges. Then retrenchment leads to layoffs and those attendant issues. Both components require developing long term plans, building liaisons with business and education communities, and tying HR performance to operational objectives. Developing new business models? My role has not been to talk to end-user customers to determine what shifts in products or services are needed but it certainly is for my internal customers.

I don’t think it’s accurate to say we are not “business professionals”. It may be more accurate to say the strength to the business is in ensuring one of the means of production (labor) is in place, prepared, trained, recognized, and appropriately rewarded for their contributions. Often, this means the HR professional keeps ethics and perhaps even compassion in the minds of the more coldly “business professional”.

Some of your older students may remember when the management training route to the CEO’s office included a stint in the HR office. I find it interesting that that was the norm when the HR office was far less business-oriented than it is today. Back then, the HR office was Industrial Relations and the focus in large organizations was unions - or rather anti-unions. Now, that the focus is much broader the value to the top seems to have diminished.

February 27th, 2008 at 6:22 am

Theresa Maia Says:

The burning question that runs through HR professionals mind day after day is how can HR connect the overall business strategy so organizations can be competitive with the right people in place? We all understand that people are critical to the success of an organization and currently I am seeing many HR professionals crossing over from the HR world into other roles within an organization. It is critical today for HR professionals be more business oriented and not be afraid to take their careers in other directions within any organization. I have experienced in my own organization where many HR professionals have branched out into an operational role and become very successful quickly. The recommendations to enable HR professional to be more aligned in the business aspect is to learn as much as you can on how the business operates. Get involved with the other business units such as; IT, Marketing, Finance, Service and Sales. As HR professionals evolve within an organization understanding how the business operates may lead to other levels of corporate management. Many HR professional are aware that this is a critical factor and must step outside the HR world.

February 27th, 2008 at 6:10 pm

Robert Says:

This is a time of re-defining the role of the HR professional. It is vital that the HR professional step forward and lay claim to a position of leadership within the business community and that requires having or obtaining an educational background that includes the areas of business, leadership and law (I may be biased). If one does not have such a background, go out and get it either formally or informally.

March 26th, 2008 at 9:25 am

isaac dixon Says:

Interesting reading but let me posit a different view of things. The idea that HR professionals must somehow become exact replicas of their business counterparts is patently absurd. Think about it? Over the course of our careers we develop highly specialized and extremely valuable talents, knowledge, skills and abilities that our business partners do not possess.

During my more than 30 years in this line of work I cannot tell you how many times I have had business leaders tell me, “We could not have gotten things done without your expertise”. We should also look at what gets business people promoted and what most often gets them fired. We hire for the technical and fire people for the absence of people skills.

My arugement is that HR people (and some business leaders too) obsess on the issue of how much business skill do you need to run an effective HR team while potentially losing site of the counter arguement that we need to demand greater people expertise from our business colleagues.

April 2nd, 2008 at 2:20 pm

Mark Behe Says:

In today’s global and information-centered businesses, the successful HR professional has to systemically understand two elements and how to influence those elements with and through people. First, HR leaders have to understand how the company makes and saves money through its value chain. Second, HR leaders must display courage and well-honed influencing skills to propose solutions that will help drive revenue, reduce expenses, and improve productivity. Working with several multinational corporations (neither of which were U.S.-based); HR leaders must be global citizens and culturally savvy.

The combination of these skills, experiences and abilities is tough to find, in my experience. A lot of U.S.-based HR leaders have spent most of their time state-side, and lack either the business acumen or the global perspective of many of our other-nation colleagues. I’ve concluded that this can be taught, but translating knowledge or recognition into behavior of mid-level or mid-career HR folks is pretty tough. I am now more supportive of getting a well-educated business person who’s lived around the world as an expatriate or third-country national, and working with them to hone HR skills as the “best” way to go—given a blank slate. On the other hand, I encourage aspiring HR leaders to read annual reports of companies they are interested in cover to cover…to learn Hofestede and take assignments in foreign countries (non-English speaking), to understand more than one model of change and try it out…and to practice making proposals to the C-suite that have a shot at being implemented. Learn a language in your spare time, and mentor others in Excel pivot tables and statistics. Finally, I suggest they always reinvent themselves and hang on!

April 30th, 2008 at 3:31 pm

Paula Says:

Like many of you, our three member HR department is heavily involved in financial budgeting, accounting related tasks and other issues which would normally not be under the purview of HR professionals. We welcome the challenge as professionals. The balance of our specialized knowledge taken in concert with focused business knowledge should not be viewed as insufficient. The years of experience that allow an HR professional to contribute in the way they can to an organization can not be replaced by a someone with a blank slate. The global areas of knowledge are certainly an area of specialization, and I anticipate that there will be more and more HR professionals noting the need for the appropriate knowledge base in this area.

May 2nd, 2008 at 10:15 pm