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SPOTLIGHT ON RETHINKING HUMAN RESOURCES

Today, HR comes under more fire than anyother organizational function—despite the fact that first-rate talent is thescarcest resource in most companies. This package looks at how HR can reinventitself, the CEO’s role in that reinvention, and what one company is doing tobring its HR practices into line with its business strategy.

HUMAN RESOURCES

Why We Love to Hate HR… and What HR Can DoAbout It

Peter Cappelli | page 54

Complaints against HR, which are nothingnew, have a cyclical quality. They’re driven largely by the business context.When companies are struggling with labor issues, HR is seen as a valuedleadership partner. When things are smoother all around, managers wonder whatthe function is doing for them. This is a moment of enormous opportunity for HRleaders to separate the valuable from the worthless and secure huge payoffs fortheir organizations. The author outlines some basic but powerful steps they cantake:

Set the agenda. CEOs are rarely experts onworkplace issues, so the HR team can show them what they should care about—suchas layoffs, recruiting, flexible work arrangements, and performancemanagement—and why.

Focus on the here and now. This meanscontinually identifying new challenges and designing tools to meet them.

Acquire business knowledge. HR needsfirst-rate analytic minds to help companies make sense of all their employeedata. Highlight financial benefits. HR departments don’t usually calculate ROIfor their programs, but quantifying costs and benefits turns talent decisionsinto business decisions.

Walk away from time wasters. Often programslack impact unless top executives lead them, transforming the culture.Otherwise HR is just a booster for initiatives it can neither enforce normeasure.

HBR Reprint R1507C