Is the Human Resource Management Department Becoming More Strategic?

This chapter focuses on the historical development of the strategic orientation of human resource management (HRM) departments in different regions of the world, providing both a theoretical base and an overview of current practices and trends. By observing data on HRM departments across the globe over more than a decade, the chapter paints a picture of the HRM department’s strategic evolution in its attempt to deliver value to the organization and create sustainable competitive advantage. Analyzing the data to address the question “Is the HRM department becoming more strategic?” yields the answer of a qualified yes. The trends over time and across contexts appear to suggest directional convergence in the HRM department achieving a strategic role. There are, however, differences in the pace at which this is being achieved and even in what the ultimate goal might be, depending on the context in which an organization is operating. Moreover, there is clear evidence of a connection between how advanced an economy is and the extent to which the HRM department can be more strategic. These findings have implications for human resource practitioners and line managers alike in delivering bottom-line value to organizations.