September 12, 2012
There are several reasons that I can think of why it is important for HR to be the strategic partner to the business. First, if the company wants to survive, they need to look at the big picture. The big picture is to look at where the company wants to go. Without a clear vision and goals, HRM will not have a function and purpose to providing guidance and selecting the right people. Businesses are not confined to one geographical location. They deal with people all over the world and some on a daily basis. For a business to function in a competitive environment, they must think global. DeCenzo (2011) says that there are “three eras of globalization, the first driven by transportation, the second by communication, and the third by technology” (p.6). With these three essential roles, the administrative function of HRM can propel the company on act. The business environment is dynamic and is constantly changing. HRM must prepare the organization for the coming changes on the horizon. Some of the challenges that HRM faces during rough times, DeCenzo (2011) says are “recessions, offshoring, mergers, bankruptcies, layoffs, workplace violence, and unemployment” (p.21). Without HRM, the core business functions will not be able to handle these challenges.
I think staff can benefit from this strategic linkage in several ways. In order for the company to move forward with their plans, they will need to make personnel changes and develop new and existing employees. The employees who have not made progress and have stagnated will be freed up to pursue other opportunities outside of the organization. Employees who have grown at any level will be motivated to learn new ways and will be retrained with new technology or methods. As a result of their hard work, compensation will be increased. However, an increase of compensation does not necessarily mean an increase...