Wednesday, August 19, 2015

Why HR Is a Junior Business Partner: 10 Reasons


The uproar over Amazon’s work culture is another example of how businesses undervalue the HR function. My 10 reasons for this recurring phenomenon:
10. Grad degrees in business administration are common (MBA); Master’s degrees in HR Management are rare (but see LER, at https://ler.illinois.edu/ ). 9. HR function populated by females, and businesses discount female work. 8. HR acts as the internal rules enforcer for companies, and is therefore not trusted. 7. HR is seen too often as just an administrative function. 6. HR “deliverables” are hard to quantify, and therefore less visible. 5. Firms are ruled by their P&L statements—but gains and losses in human capital never show up here. 4. Companies de-couple firm strategy and HR strategy. 3. Change management should be a core HR function, but often is driven by finance people who are ignorant about work culture. 2. Shareholders are never told a story about human talent--- exception: major league sports teams, where human capital is an obsession for stakeholders (fans). 1. HR is perceived as a cost to be minimized, not an asset to accumulate.

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