The role of HR Managers and the scope of Human Resource profession has been fast changing from the previous decades. Dave Ulrich credited with developing the “HR business partner” model and other influential ideas in books including “HR Champions” and “The HR Value Proposition”, explained the six competencies HR must develop to tackle the challenges of the worldwide economic crisis, globalization, technological innovations and other changes.
HR Competencies of HR Managers differ between the desired competencies of a mid-sized and a multinational company.
Many companies and organizations are outsourcing the technical Human Resource Management functions like staffing, payroll processing, daily operations and onboarding and training duties to third-party firms keeping only a small in-house team to oversee strategic human resource functions. But contrary to this perception the human resource profession has evolved in a great way to become an integral component of the organization in many companies worldwide.
As the HR department’s role and the value HR brings to the organization continue to change, the way in which HR professionals are staffed should also evolve.
Why should the desired HR Competencies of HR Managers be different between the desired competencies of a mid-sized and a multinational company?
An organization that wants to staff its HR function for strategic sustainability needs to be aware of the essential functions of a strategic HR department in order to select an appropriate structure for the HR department. It needs to understand and foresee which HR responsibilities are to be sourced internally or externally.
There are numerous ways organizations are restructuring the HR department to meet its goals. The choice of structures is based on a variety of factors, including the desired degree of strategic impact, the speed of change in the industry, the resources available to the HR department, the level of talent in the HR department and the HR strategies used by competitors.
Globalization and the pace of technological changes are working as a rapid force to determine how every company perceive the effectiveness of an internal human resource team. Now the desired HR Competencies of HR Managers differ between the desired competencies of a mid-sized and a multinational company.
The greatest competency of an HR Manager in a multinational company should be of a credible HR activist. These HR activists should take strong positions about business issues that are grounded in sound data and thoughtful opinions.
HR professionals of multinational companies must understand the global business context – the social, political, economic, environmental, technological, and demographic trends that bear on their business – and translate these trends into business implications. They must understand the structure and logic of their own industries and the underlying competitive dynamics of the markets they serve, including customer, competitor, and supplier trends.
These two types of desired HR Competencies are needed in a much lesser proficiency scale among the HR Managers in the mid-sized companies. A major competency of effective HR professionals in mid-sized companies needed is their ability to innovate and integrate HR practices around a few critical business issues.
The challenge is to make the HR whole more effective than the sum of its parts. This HR Managers must ensure that the company focuses on its core competencies and ensure the recruitment and staffing process is focused to create a talent pipeline that brings rapid competitive advantage than its competitors.
They must ensure that the necessary organizational capabilities are powerfully motivated and operationalized and that the appropriate HR practices, processes, structures, and procedures are aligned to create and sustain the identified organizational competitive edge.
Effective HR Managers and professionals must develop their organizations’ capacity for change and then translate that capacity into effective change processes and structures.
To ensure an effective change of processes that build sustainable competitive advantage; management of every company must understand that the HR Competencies desired for their organization are unique. The HR Competencies of HR Managers should differ between the desired competencies of different types of companies.