Human Resource

This article examines the strategic role of HR and its main practices, describes the outcomes of respective categories of HR practices, explains the critical reasons for measuring HR's efforts, and proposes a framework for assessing HR. Ultimately, organizations will be able to utilize the information to determine how particular HR practices correlate with better business results; determine potential areas for investments, expansions, and reductions; justify budget allocations; and be more accountable for each dollar spent within the organization. The framework proposed does not merely explain the cost for each major HR activity, but demonstrates the value of the activity and, hence, the opportunity to determine if it is a worthwhile investment and strategy for creating a competitive advantage.

What value does the HR function contribute to the bottom line of the organization? Over the years, tremendous emphasis has been placed on making HR practitioners strategic business partners and a value-added source within organizations. Traditionally, HR professionals could talk generally and conceptually about employee morale, turnover, and employee commitment as outcomes of HR efforts. Furthermore, the HR function was often viewed as an expense-generator and administrative function and not as a value-added partner. Ulrich