The “fit for purpose” HR function
| Date | 01 November 2004 |
| DOI | https://doi.org/10.1108/14754390480000579 |
| Published date | 01 November 2004 |
| Pages | 32-35 |
| Author | Chris Ashton,Mike Haffenden,Andrew Lambert |
| Subject Matter | HR & organizational behaviour |
32 Volume 4 Issue 1 November/December 2004
OU ARE THE HR director in a medium-
sized to large organization. How convincing
would your immediate responses be to one of
your business leaders who asked you the
following questions:
•Where is our business going and what should its
success measures be?
•What are the critical capabilities we must therefore
have?
•What is your function actually doing about this – to
increase organizational effectiveness and also to make
HR itself fit for purpose?
We believe that business leaders are entitled to ask these
questions of HR leaders and get well-founded, specific
answers. HR’s agenda should correlate directly with what
the business hopes to achieve, and it should be managed,
deliver and be measured in exactly the same way as any
other function.
HR’s current position
Globalization, technology and social changes have all
contributed to today’s context for both private and
public sector organizations: rapidly emerging markets
and competitors, increased stakeholder pressures, and
mounting cost, quality and cycle time challenges. Only
“fit for purpose” organizations will succeed in this
environment. These organizations will have effective
people management and a “fit for purpose” HR function
that supports the business in delivering on its strategy.
During 2003-4 we conducted research in 30 major
organizations and uncovered widespread doubts that HR
is equipped to tackle these challenges. The function’s
reputation is generally poor. Critics say that HR is not
strategic or courageous enough; lacks robust theory with
a scientific basis; is preoccupied with processes for their
own sake; and has insufficiently clear linkage to business
drivers, needs and success measures – and thus to the
organization’s competitive differentiators. Our research
indicates that, while there are some excellent individuals
and teams, HR’s mindset is still that of a stable function
with a set hierarchy and roles, established procedures and
fairly undemanding expectations.
Threat or opportunity?
This situation continues to cause frustration among top
executives: according to a 2003 survey of Fortune
1,000 leaders by Accenture1, almost half were
dissatisfied or ambivalent about HR, and in a Watson
Wyatt study among senior line managers2, only 34
percent rated HR as good while 83 percent said it was
critical to business success. Further, our own research
showed that in general, CEOs and HR directors had
different views of what their priorities should be.
The future is bleak for HR functions that don’t rise
to this challenge. For them, the likely outcomes include
the shifting of critical HR responsibilities elsewhere in
by Chris Ashton, Mike Haffenden and Andrew Lambert
Corporate Research Forum
The “fit for
purpose” HR
function
The competencies of the successful
HR function of the future
In an increasingly complex and crowded marketplace,
only fit for purpose organizations will succeed. This
requires a fit for purpose HR function – one that
delivers flawless process services, business partnering
and, most importantly, builds organizational capability
to deliver on the business strategy.
Y
© Melcrum Publishing Ltd. 2004. For more information, go to www.melcrum.com or e-mail info@melcrum.com
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