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A new mandate for human resources.

D Ulrich1

  • 1University of Michigan School of Business, Ann Arbor, USA.

Harvard Business Review
|December 8, 1997
PubMed
Summary
This summary is machine-generated.

Human Resources (HR) must evolve beyond traditional tasks to drive business results and organizational excellence. This transformation requires leadership from CEOs and line managers to redefine HR

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Area of Science:

  • Business Management
  • Organizational Psychology
  • Human Resources Management

Background:

  • Significant debate exists regarding the effectiveness and contribution of Human Resources (HR) to organizational performance.
  • Current HR practices are often perceived as ineffective, incompetent, and costly, leading to doubts about their value.
  • Despite criticisms, the necessity of HR functions in modern organizations remains a critical consideration.

Purpose of the Study:

  • To address doubts about HR's contribution to organizational performance by proposing a redefined role for the field.
  • To outline a new strategic focus for HR centered on delivering business results and enhancing organizational value.
  • To identify key responsibilities for HR that align with company goals and stakeholder interests.

Main Methods:

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  • Conceptual analysis and strategic framework development based on expert opinion (Dave Ulrich).
  • Identification of four key strategic tasks for a transformed HR function.
  • Emphasis on the role of senior leadership, including CEOs and line managers, in driving HR transformation.

Main Results:

  • HR needs a new role focusing on business results, customer value, investor returns, and employee enrichment, rather than traditional activities like staffing and compensation.
  • Four critical tasks for HR include: strategy execution partnership, expertise in work organization and execution, employee advocacy, and driving continual change.
  • Successful HR transformation requires accountability from senior management to ensure HR activities demonstrably increase shareholder value and serve customers better.

Conclusions:

  • HR's current configuration is often ineffective, but its role is more crucial than ever.
  • A strategic shift is necessary, moving HR from administrative tasks to value-driven business outcomes.
  • Organizational excellence and competitive success depend on senior leaders actively transforming and holding HR accountable for delivering tangible business results.