Impact of New Human Resource’s Role on Organizational Performance

Advances in technology and changes in economic factors have resulted in a steady shift towards greater flexibility in working and employment patterns. The changes do mean that the human resource management function within an organization does need to recognize and implement the changes that are necessary to ensure that organizations and individuals get the support they need to cope with such change. There are an incredible number of pressures on today's organizations. To name a few: environmental pressures such as increasing globalization, rapid technological change, and tougher competition; organizational changes such as new organizational alliances, new structures and hierarchies, new ways of assigning work, and a very high rate of change; changes in the workforce, including employees' priorities, capabilities, and demographic characteristics. Within these pressured organizations, there is a need for (and opportunity for) the human resource function to play a critical role in helping organizations navigates through these transitions. In order to play this role, however, HR will have to increase its real and perceived value. Some common steps and activities that will increase the likelihood of success have given. They include Strong HR leadership, Acute future orientation, Flexibility and creativity and Delivering value. After it the four key elements such as selection and placement, job design, compensation and rewards and diversity management of HR are discussed. In high-performing companies, each element of the HR system is designed to reflect best practice and to maximize employee performance. Findings include human resources management is becoming increasingly important in organizations because today’s knowledge economy requires employees to contribute ideas and be engaged in executing the company’s strategy. HR is thus becoming a strategic partner by identifying the skills that employees need and then providing employees with the training and structures needed to develop and deploy those competencies.

INTRODUCTION
Advances in technology and changes in economic factors have resulted in a steady shift towards greater flexibility in working and employment patterns. The changes do mean that the human resource management function within an organization does need to recognize and implement the changes that are necessary to ensure that organizations and individuals get the support they need to cope with such change. There are an incredible number of pressures on today's organizations. To name a few: environmental pressures such as increasing globalization, rapid technological change, and tougher competition; organizational changes such as new organizational alliances, new structures and hierarchies, new ways of assigning work, and a very high rate of change; changes in the workforce, including employees' priorities, capabilities, and demographic characteristics. Within these pressured organizations, there is a need for (and opportunity for) the human resource function to play a critical role in helping organizations navigates through these transitions. In order to play this role, however, HR will have to increase its real and perceived value. The role of human resources has been evolving for some time. The shift from "personnel" to "human resources," for example, was part of the movement to acknowledge the value of employees as an organizational resource, and was an attempt to remove some of the stigma that was coming to be associated with slow, bureaucratic personnel departments. This shift in label was accompanied by a call for HR to become a strategic partner with the leaders of the business-to contribute to significant business decisions, advise on critical transitions, and develop the value of the employees-in short, to have a seat at the table.

ROLE OF  HR
Four roles for HR to play within a business are given. They are : a) as a strategic partner working to align HR and business strategy, b) as an administrative expert working to improve organizational processes and deliver basic HR services, c) as an employee champion, listening and responding to employees' needs, and d) as a change agent managing change processes to increase the effectiveness of the organization.  It is better to include all of the ways that HR can deliver value to an organization, rather than shifting focus from one area to another.  Making the shift to a new HR role will raise unique issues for every HR group that attempts it, but there are some common steps and activities that will increase the likelihood of success. Some of these steps and activities are:
Strong HR Leadership
 As with any major change effort, a strong leader can develop a clear vision, motivate others to share that vision, and help them work toward achieving it. In order to change the role of HR in an organization, the HR leader will need to work both within the HR group and with the organizational leaders to reshape everyone's expectations of what HR can and will deliver. The success of the change will depend upon HR's ability to meet the real needs of the organization and the credibility it develops.
Acute Future Orientation
 One of the ways that HR can provide value is to understand how changing environmental, organizational, and workforce factors will likely influence the business, anticipate the associated HR needs, and be prepared to deliver appropriate solutions to meet those needs. By maintaining a focus on workplace trends, for instance, HR can prepare to evaluate the impact that particular changes are likely to have on an organization's people and processes, and be prepared to work with the business leaders to decide how to respond-being ahead of the curve, not behind it. For example, one movement that is likely to have significant impact on the way people are hired, managed, and valued is that of intellectual capital. A "new role" HR department is one that has learned about intellectual capital and its implications, evaluated the impact on current practice, and developed ideas and recommendations for changing HR practice and other business processes.


Flexibility and Creativity
An HR group that is successful in the future will likely be one that is responsive to the changing needs of its client organization. Responsiveness in the changing world of work will require being flexible-as the organizations change, so will their needs and priorities. In addition, traditional activities and processes may not be sufficient to meet the unique needs of the future-HR leaders will likely rely on creativity of their groups to achieve effective results. Increasing globalization of the market will create a need for both flexibility and creativity as businesses try to succeed in new locations, with a new workforce, and with new customers.
Delivering Value
HR is still perceived by many within today's organizations as simply a non-revenue generating function. It is important to make apparent the value provided by working with the management team to hire the right people, manage them well, pay them appropriately, and build a working environment that encourages success.
HR : KEY ELEMENTS
The four key elements of HR are summarized in the following figure. In high-performing companies, each element of the HR system is designed to reflect best practice and to maximize employee performance. The different parts of the HR system are strongly aligned with company goals.
Selection and Placement
When hiring, acquaint prospective new hires with the nature of the jobs they will be expected to fulfill. This includes explaining the technical competencies needed (for example, collecting statistical data) and defining behavioral competencies. Behavioral competencies may have a customer focus, such as the ability to show empathy and support of customers’ feelings and points of view, or a work management focus, such as the ability to complete tasks efficiently or to know when to seek guidance. In addition, decide the organizational workers, whether they will help the job candidates determine whether they’ll fit into our organization’s culture.
Job Design
Design jobs that involve doing a whole piece of work and are challenging but doable. The process of putting together various elements to form a job, bearing in mind organizational and individual worker requirements. as well as considerations of health, safety, and ergonomics. Train employees to have the knowledge and skills to perform all parts of their job and give them the authority and accountability to do so.  Job enrichment is important for retaining our employees.
Compensation and Rewards
Evaluate and pay people based on their performance, not simply for showing up on the job. Offer rewards for skill development and organizational performance, emphasizing teamwork, collaboration, and responsibility for performance. Help employees identify new skills to develop so that they can advance and achieve higher pay and rewards. Compensation systems that include incentives, gainsharing, profit-sharing and skill-based pay reward employees who learn new skills and put those skills to work for the organization. Employees who are trained in a broad range of skills and problem solving are more likely to grow on the job and feel more satisfaction. Their training enables them to make more valuable contributions to the company, which, in turn, gains them higher rewards and greater commitment to the company. The company likewise benefits from employees’ increased flexibility, productivity, and commitment. When employees have access to information and the authority to act on that information, they’re more involved in their jobs and more likely to make the right decision and take the necessary actions to further the organization’s goals. Similarly, rewards need to be linked to performance, so that employees are naturally inclined to pursue outcomes that will gain them rewards and further the organization’s success at the same time.
Diversity Management
Another key to successful SHRM in today’s business environment is embracing diversity. In past decades, “diversity” meant avoiding discrimination against women and minorities in hiring. Today, diversity goes far beyond this limited definition; diversity management involves actively appreciating and using the differing perspectives and ideas that individuals bring to the workplace. Diversity is an invaluable contributor to innovation and problem-solving success.
CONCLUSION
Human resources management is becoming increasingly important in organizations because today’s knowledge economy requires employees to contribute ideas and be engaged in executing the company’s strategy. HR is thus becoming a strategic partner by identifying the skills that employees need and then providing employees with the training and structures needed to develop and deploy those competencies.

REFERENCES

  • Beatty, R. W., & Schneier, C. E. (1997). New human resource roles to impact organizational performance: From "partners" to "players." In D. Ulrich, M. R. Losey, and G. Lake (Eds.), Tomorrow's HR management: 48 thought leaders call for change. Boston: Harvard Business School Press.
  • Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: Where do we go from here? Journal of Management, 32(6): 898–925.
  • Brian E., Becker, B. E., Huselid, M. A., & Ulrich, D. (2002). Six key principles for measuring human capital performance in your organization. University of Maryland Working Paper.
  • Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171–188.
  • Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171–188.