LHR305:

Lesson Overview

In this lesson the text moves from a comprehensive description of the role HR currently plays in organizations, to the various forces that will influence the value of HR in the future. Such analysis and prognostication is hardly rare. Every new year brings a list of similar speculations. For example, Forbes.com published, “10 Workplace Trends You’ll See in 2017”. Another article strikes a similar theme: “10 Trends Shaping the Future of HR in 2017”.

 

Lesson Objectives

Upon successful completion of this lesson, you should be able to

• identify at least five current trends affecting the human resource management function;
• explain the concept of business/organizational “strategy”; and
• describe the manner in which human resource management can support an organization’s strategy.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 2 Course Schedule.

Human Resource Management Strategy

One enduring trend that has helped promote HR as a critical function in any organizational setting is the degree to which HR most effectively supports organizational strategies designed to create a competitive advantage. In this context business leaders understand that to be sustainable, an organization needs to develop an d embrace a purpose (i.e., mission and set of values) that gives it a unique presence within its industry , and therefore a competitive advantage. That purpose becomes the focus around which all organizational functions operate. Thus, Human Resources will not simply recruit, select, train, compensate, etc. Each decision made in the context of those functions must in one or more ways create greater value related to the purpose.

Let’s take a closer look at the concept of a strategy. Click on the white arrow to review of the concept.

One way to understand strategy is to know it is a destination. In other words, after all resources have been combined as effectively as possible, the organization would expect to find itself in a certain position (i.e., destination) within that industry. The value of the strategy is that it will be calculated to help the organization develop a competitive advantage over its rivals.

 

Example: Southwest Airlines

Since its founding more than four decades ago, Southwest Airlines has sought to create a business model quite distinct from the older hub-and-spoke airlines. Southwest sought to tap into a market of shorter, point-to-point destinations. And as part of its attempts to attract these short haul customers, the airline promoted the idea that it would deliver its services with “a sense of warmth, friendliness…”. Achieving these outcomes would, the company believed, result in high levels of customer service, large profits for shareholders, an exceptionally loyal workforce.

The following link provides information with respect to the company’s purpose, vision, values and mission, all of which reflect that strategy.

One of the values the material on this landing page illustrates is the desire to become a low-cost alternative to other carriers. To help accomplish this objective the airline determined that it should use identical aircraft to carry passengers. The decision to purchase only varieties of Boeing 737 planes reduces the maintenance overhead. It also reduces the number of canceled or delayed flights when a plane is taken out of service for emergency repairs since it will most likely be replaced by an identical aircraft to which the same crew can be assigned. (Crews are certified to certain types of planes. Therefore, even a crew certified with respect to a Boeing 757 would not necessarily be qualified to fly a Boeing 737.) And the use of 737s only reduces costs with respect to crew training.

Based on the information you’ve studied in Lessons 1 and 2, think about how HR might fulfill its functional responsibilities in a manner that would also contribute to accomplishment of this particular objective.

How HR can support organizational strategy is a theme that will continue to emerge throughout this course.