More than ever before, the HR function is expected to make a strategic contribution to a firm’s competitive advantage. At the same time, growing diversity of the workforce, complex legal and ethical issues, and global and domestic competition are reshaping the role of HR management.’ At the core of these pressures for change are the HR department’s multiple objectives, which were set forth and are shown.
Besides furthering the organizational objective of competitive advantage, the HR department must address societal, functional, and personal objectives. Societal objectives-often in the form of laws-must be met to ensure fair treatment and legal compliance. Functional objectives add professional and ethical challenges to the department’s constraints. And the personal objectives of employees gain in importance and complexity as the workforce slows its growth and becomes more diverse, especially as HR professionals encounter increased executive expectations.
Top executives say that people are an increasingly important factor in distinguishing one company from another. As a result, many now consider the human resource function critical to business success. CEO are looking to their human resource departments for help on such “people” issues as productivity improvement, succession planning and culture change.