This document discusses the need for HR professionals to develop new strategic competencies to help organizations achieve their business goals and make HR a true business partner. It argues that HR must shift from traditional transactional roles to focus on strategic performance management, linking people strategies to organizational strategy and performance. Specifically, it outlines how HR can measure its impact on productivity, processes, costs and benefits, employee metrics, and organizational capabilities to demonstrate its value creation for the business.

1. “HR A Strategic Business Partner
New Competencies for the
HR Professional”
KULDEEP MATHUR
M.B.A. JIWAJI UNIVERSITY GWALIOR

2. In the fast changing competitive business environment, sustenance
of growth and development is only possible through Creating
performance organizations. Performing organizations develop
performing people and performing people create performing
organizations. This can be realized only through linking people,
strategy with performance of the organization. To ensure this, a shift
is required from traditional human resource function to strategic
performance management function. Human resource professionals
have been thrown to the challenges to master new competencies in
strategizing HR functions so as to achieve business goals and make
themselves the true business partners.
In the new millennium, it is an accepted fact that people alive will
provide the competitive edge to organizations. It is also certain that
only those organizations which can continuously create value can
sustain the competition, for ‘value is the language of business and it
is all about wealth.’ Who creates wealth? Undoubtedly the People.
Therefore, the key focus is to enable creation of the value creators,
people and HRM function has to take the lead.

3. Human Resource Management traditionally focused on
maintenance of hygiene factors with a missionary approach,
not linking their efforts to business returns. At times HR
activities, instead of adding and creating value, simply added
to the cost of business. Such experiences raised questions
about the role of the HRM function in the organizational
context. The profession has rightly realized that in the
business of business, there is no place for any activity, which
fails to add values. Going forward, HRM has started to
transform itself to integrate with business in vale creation and
to imbibe the cardinal principle of quantification and
measurement of deliverables.
The task of an HR professional is to build competencies into
the fabric of the business. Ultimately, HR must be seen to
deliver value. This value orientation is what business needs
that can translate every competency into skill and make that
scalable.

4. The HR Function
HR professional with
Strategic competencies
The HR system
High-performance,
strategically aligned
policies and practices
Employee behaviors
Strategically focused
competencies,
motivations and
associated behaviors
HR’s Strategic Architecture

5. Strategic Business Needs
Expressed mission statements or
Vision statements and translated
Into strategic business objectives
Strategic Human Resources Management Activities
Human Resources Philosophy
Expressed in statements defining Expresses how to treat and value
Business values and culture people
Human Resources Policies Establishes guidelines for action
Expressed as shared value (guidelines) on people-related business issues
and HR programs
Human Resources Programs Coordinates efforts to facilitate
Articulated as Human Resources change to address major people-
Strategies related business issues
Human Resources Practices Motivates needed role behaviors
For leadership, managerial, and
Operational roles
Human Resources Processes Defines how these activities are
For the formulation and implementation carried out
Of other activities

6. Designing Strategic HR Strategies -
(A) Strategy Architect
• Developing & linking/ aligning HR strategies with
organizational strategies
• Sustaining Strategic agility
• Engaging customers – internal as well external
(B) Talent Manager/ Org Designer
• Planning Ensuring today’s and tomorrow’s talent
• Developing talent/Nurturing talent
• Shaping organization – flexible, responsive etc.
• Fostering communication
• Designing rewards systems++

7. Human Capital
Pool
Knowledge
Skill
Ability
Employee Relationships
and Behaviors
Psychological Contracts
Job Related/Required
Organizational
Citizenship
People Management Practices
Staffing Training Rewards Appraisal
Work Design Participation Recognition Communication
The basic strategic HRM Components

8. (c) Operational Executor
• Designing new workplaces practices
• Implementing workplace policies / practices
• Advancing HR Technology

9. (D) Credible Activist
• Deliverables than doubles
• Delivering results with integrity
• Sharing information
• Building relationships of trust
• Doing HR with attitude
(E) Culture and Change Steward
• Facilitating change
• Valuing culture
• Crafting culture
• Personalizing culture

10. External Environment
Competition
Government regulation
Technology
Market trends
Economic
Corporate
Strategy
Business
Unit
Strategy
Internal Environment
Culture
Structure
Politics
Employee skills
Past strategy
Employee
Separation
Laws
Regulating
Employment
HR Strategy
HR planning
Design of jobs & and
work systems
What worker do
What workers need
How jobs interface with
others
HR
Information
Systems
Staffing
Training
Performance
Management
Compensation
Labor
Relations
Strategic Human Resource Management

11. Increased
Performance
Enhanced
Shareholders Value
Customer and
Employee Satisfaction
through
• Effective management of staffing, retention, and turnover through selection of employees
that fit with both strategy and culture
• Cost-effective utilization of employees through investment in identified human capital with
potential for high retention
• Integrated HR programs and policies that clearly follow from corporate strategy
• Facilitation of change and adaptation through a flexible, more dynamic organization
• Tighter focus on customer needs, key and emerging markets, quality
Outcomes of Strategic HR

12. “People with credentials are often outperformed by those with a passionate commitment for
something”
Anonymous
Competencies to Master
“Competence in the absence of strategy
is like acting without an audience”
David Ulrich
• Knowing how to reduce costs
• Improve service in non-core functions of the business
• Provide defined career ladder to people
• Cross sell service
• Ability to assess why a void exists in a business
• Recruiting and retaining top talent
• To strive for operational excellence and discipline

13. Dave Ulrich outlines five areas HR can measure to demonstrate
results
• Productivity measures – output per unit of input. Improvements in
these areas might be traced back to increased training, improved
work structure and so on.
• Process measures, such as improving systems and workflow
• HR costs and/or benefits for any specific initiatives.
• Employee retention, morale, commitment and skills.
• Capabilities of the organization, such as speed (response time)
learning, shared mind set and accountability.
It is time to elevate HR to a new playing field, and measuring results
may be the only credible way for HR to truly step up to it.
Once they have developed good business relationships throughout
the Organization, and the value add is seen by the people, HR
Managers will become involved to help the organization move
towards a vision created for the new millennium.

14. The preparation for this process of completion is also known
as “Future”.
“With strength of a character,
nothing is impossible, when
your heart expands, to
embrace the impossible,
you are able to lead the path…”
Tao
The quest for achieving excellence through people in the
future continues….