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Human Resource Management, Spring/Summer 1983, Vol. 22, Numbers 1/2, Pp. 9-21
C) 1983 by John Wiley & Sons, Inc. 0090-4848/83/010009-13$04.00
I suggest that there are seven frontiers for strategic human resource
management covering the issues that are important for the future.
Frontier two is the need for continuing innovation on the part of all or-
ganizations in order to compete effectively in international marketplaces.
Human resource professionals have to look at how both individual be-
havior (creativity and enterprise) and organizational policies and practices
can stimulate innovation.
My own investigation for The Change Masters distinguished the char-
acteristics of high innovation companies, those that were continually
innovating in every domain—marketing, human resources, or financial
systems—not just product innovation. They had what I call an "inte-
grative" structure and culture as opposed to a "segmentalist" one that
stifles innovation. In a segmented structure and segmentalist culture,
each unit or level or function operates rather independently according
to its own constraints with only a few specified points of contact with
other units. When new problems are encountered, they are immediately
factored into a set of subproblems and assigned to specialists to handle
as other segments, in isolation. But the ideal of rational decision-making
Frontier four is the need for tactical (or response) planning. The human
resource function must ask itself whether it is getting into strategic plan-
ning in a major way at just the point at which everybody else is getting
out of it—when top management may be less concerned with ever more
elaborate plans and data sources and more concerned with rapid action.
Tactical or response planning is the kind of planning that can and
should be done to support—or change—overall strategy. Karl Weick
once wrrote that organization should be a verb or an adverb or a participle,
but never a noun. It should never be a thing; it should rather be seen
as a continually unfolding process. The problem is, as is commonly
known, that the process not only does not unfold according to plan, but
is often not managed down through the organization. There can be a
strategy change at the top, but people in the middle may have no idea
that it occurred or what it means for them and their activities. To avoid
this planning shortfall companies need tactical (or response) planning.
This kind of planning guides the adjustment of all parts of the orga-
nization to environmental pressures or strategic changes, and the man-
agement of these responses by various departments or functions can
represent a new frontier for the human resource function.
In the enchantment with strategic and longer range planning, the on-
going need for the short-run adaptation inside the organization should
not be forgotten. There are a number of initiatives the HR staff could
take to support this—for example, departmental appraisals or activities
assessments yearly, comparable to individual appraisals. Perhaps every
department could have a set of forms to help them conceive new programs
based on a look at the appropriateness of their current activities, in terms
of what happened to the organization in the past year as well as what
is about to happen. Every department should consider a redesign of
their own internal structure periodically—a change in tactics as strategies
change.
Furthermore, the HR function should take the lead in helping every
department with an assessment of its activities and its reporting rela-
tionships. The field of organization design tends to address only the
broadest strokes; for example, whether a product, function or matrix
design works for the whole organization but does not help with the
minidecisions about organizational design in, for example, the marketing
organization or the shop floor production organization.
resents what it takes for the organization to be able to put the person-
resource to work: tools that enable contribution; channels for contribution;
and standards about what people should be contributing. The HR field
needs to balance a focus on the top half—thinking about the product
itself—with more emphasis on the bottom half—thinking about what
it takes to put it to use. This would suggest another, less conventional,
set of tasks for the HR function: e.g., on "worker information systems"
that provide information tools throughout the organization, augmenting
management information systems. This might constitute a breakthrough
partnership aimed at getting all the necessary tools for contribution into
the hands of employees. Or, with respect to channels for contribution,
HR could work with still another corporate staff group to create venture
capital funds inside the organization for people with ideas for innovations,
as 3M and Levi Strauss do. This can occur in any domain. In one case
with which I was involved, a productivity/QWL project resulted in a
committee to support proposals for new contributions; and the project
was itself funded by the corporate R&D council, which over time had
extended the boundaries of projects it would fund to include organi-
zational experiments.
In short, more attention to how to put human resources to work and
how to use them well is a frontier that lies beyond simply developing
the quality of those pieces of machinery.
The last two frontiers concern the human resource function itself.
Finally, the human resource function has to carry out its own strategic
planning. Managing the function can be viewed as running a minibusiness,
and this analogy suggests different images.
For example, as a "business" the function might perform an analysis
of the "competition." Who else in the company is doing what the HR
department really should be doing? Perhaps the domains of productivity,
quality, or even employee involvement are being handled by staff from
marketing or manufacturing and not from human resources.
A "market" analysis is a second possibility The human resource func-
tion should recognize that it has multiple constituencies, not just one
(the CEO and other top executives). (One strategy for gaining credibility
with the CEO is what I call "marrying up"—getting into the "family"
by marrying the strategic planner, who is closely related to the CEO.)
Indeed, because of the many constituencies the human resource function
serves, respect from top management often comes by satisfying the needs
of all the users of HR services in the organization. The HR "markets"
include more than employees way down the line, too. Government re-
lations and management information systems represent two other areas
that could use an HR input.
The market analysis analogy suggests periodic review of HR functions
and activities, with an eye toward divesting, merging, and diversifying
to bring in more business. And there are other options as well for man-
aging HR as a "business"—e.g., to create networks within the orga-
nization, encourage and sponsor fan clubs, form alumni associations of
HRD program graduates, organize volunteer auxiliaries full of people
available for special assignments because they have some relevant ex-
periences or skills. Thus, the HR function can be seen as though it were
a minibusiness in its own micro-environment within the company, with
its own agenda of tasks.
In short, strategic planning for the human resource function implies
more than developing HR strategies for the rest of the organization to
use as part of the business plan (although clearly this should not be
References
Kanter, Rosabeth Moss. The Change Masters: How People and Companies Succeed
through Innovation in the New Corporate Era, New York: Simon & Schuster, 1983.
Weick, Karl. The Social Psychology of Organizing, Reading, MA: Addison-Wesley,
1976.