Description
The research problem was formulated as: With the increased emphasis on human capital as a global trend, what is the extent of strategic orientation of Human Resource Managers in South Asia? The objectives were to identify the personal factors as well as organizational factors that contribute to the strategic orientation of HR Managers and to identify the interactional effects of personal and organizational factors.
International Review of Business Research Papers
Vol. 5 No. 6 November 2009, Pp.1?21
1
Strategic Orientation Of HR Managers In Commercial Banks In
South Asia
Ajantha S Dharmasiri,
The research problem was formulated as: “With the increased emphasis on human capital
as a global trend, what is the extent of strategic orientation of Human Resource Managers
in South Asia?” The objectives were to identify the personal factors as well as
organizational factors that contribute to the strategic orientation of HR Managers and to
identify the interactional effects of personal and organizational factors. The scope of the
research was limited to selected high-performing Commercial Banks from Bangladesh,
India, Pakistan and Sri Lanka. A mixed methodology involving a predominantly qualitative
approach supported by a quantitative component was adapted. In-depth interviews were
conducted with the Chief Executive Officer, Chief Finance Officer, and the Head of HR of
each company. Quantitative questionnaires were also administered to capture additional
data. The key personal factors emerged were tacit knowledge, conceptual skills, and
business awareness. Leader’s recognition of HR, conducive organizational environment
and performance orientation emerged as key organizational factors. Interactional effects of
the above factors were also discussed highlighting Competency Deficit and Opportunity
Deficit.
Field of Research: Human Resource Management
1 Introduction
Human Resource (HR) Managers have to contribute as members of senior
management teams striving towards profitable growth. A recent survey on emerging
trends in HR (Ruona et al., 2003) revealed that there is much concern about HR’s
absence in the “boardroom” and in organizational leadership positions. Also, the
question of value addition and particularly “impact on the bottom line” has been
raised (Ulrich, 1998). In this research, HR Manager is meant to be a senior person
engaged in Human Resources activities as an occupation.
_________________
Dr. Ajantha Dharmasiri, Postgraduate Institute of Management, University of Sri
J ayewardenepura, Sri Lanka; Email: [email protected], Web: www.pim.lk
Acknowledgements : The author wishes to acknowledge the support rendered by the Association of
Management Development Institutions of South Asia (AMDISA) in providing the financial assistance
for a South Asian management study, through the Commonwealth AMDISA grant awarded for eligible
doctoral candidates.
Dharmasiri
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In other words, a manager with experience and qualifications, handling the
responsibilities associated with the Human Resources function of an organization
(Dessler, 2003). Wheelen and Hunger (1988) define strategic orientation as thinking
and action of a person, reflecting the long term plans of the organization he/she
works for. It includes the involvement in the strategy formulation, implementation and
evaluation stages of the strategic decision making process. It can also be stated as
a structured process of thinking to “see the unseen”, leading to action.
Bing et al. (2003) in describing the challenges to the field of HR state that “the
challenge to practitioners is to move beyond a silo mentality in which solutions can
only be found within HRD and to embrace a perspective that organizational
problems are systemic and require systemic solutions”. Considering the region of
South Asia, a scenario can be seen where paradoxically, the best brains and worst
poverty are both present (Bhushan, 2000). He further states that “… the role of
managerial development, as a harbinger of social and economic change can play in
getting the South Asian region its rightful place in the committee of nations”.
Strategic orientation of HR Managers would be of prime importance in such an
endeavour, in aligning HR strategies with organizational direction in order to reap the
true benefits of regional synergies.
Considering the state of HRM in India, Budhwar (2001) comments that the pressures
created by overseas operators on local operators have created a strong need for
Indian HR Managers to seriously emphasize issues related to performance. Singh
(2003) studied the strategic HR orientation and firm performance in India, and
highlighted a significant relationship between strategic orientation and firm
performance. In the case of Pakistan, a significant emphasis on the need of HR is
evident. According to Khilji (2001), the function of HR holds a promise for employees
in Pakistan and it is the way forward. Considering the state of HRM in Bangladesh,
Siddiquee (2003) endorses a similar view point. According to him, despite the
prevalence of a broad consensus on the strategic importance of human resource
factor, the paradigm shift is yet to take place in public bureaucracies of developing
countries including Bangladesh. Nanayakkara (2003) points out that “weak work
ethic, individualism, feminity and weak uncertainty avoidance, which is not a
productive combination of variables for a strong organizational culture could explain
some of the underdeveloped characteristics of human resource management in Sri
Lanka.” According to him, the overall HRM performance was below the expectation
levels and the HR strategy - business strategy link was found to be the weakest link.
The above country-specific details of the level of HR highlight the need for an in-
depth study incorporating the entire region. This paper presents a part of such an
endeavour, in fulfilling a research gap.
Dharmasiri
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2 Research Problem
Against the background of the above discussion, the research problem is stated as
follows:
“ With the increased emphasis on human capital as a global trend, what is the extent
of strategic orientation of Human Resource managers in South Asia?”
3 Research Questions
In relation to the research problem, following research questions were raised:
i. What are the personal factors that contribute to the strategic orientation of HR
Managers?
ii. What are the organizational factors that contribute to the strategic orientation of
HR Managers?
iii. What are the interactional effects of personal and organizational factors to the
strategic orientation of HR Managers?
4 Objectives Of The Study
The objectives of the study were to:
i. To identify the personal factors that contribute to the strategic orientation of HR
Managers in South Asia
ii. To identify the organizational factors that contribute to the strategic orientation of
HR Managers in South Asia
iii. To identify the interactional effects of personal and organizational factors by way
of exploring the trends emerging in relation to strategic orientation of HR
Managers in South Asia
iv. To recommend key strategies to organizations as well as for the HR Managers,
to improve the strategic orientation of HR Managers in South Asia
5 Literature Review
Attempt is made to briefly present the research findings of the key concepts
associated. Strategic Human Resource Management (SHRM), Strategic HR
Responses, and Regional Realities of South Asia were the three key components in
focus.
5.1 Strategic Human Resource Management
According to Schuler & J ackson (1987) Strategic Human Resource Management
(SHRM) is, “Explicitly linking HRM with strategic management processes of the
organization and to emphasize coordination and congruence among the various
human resource management practices”. Wright et al. (1994) defined SHRM as,
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“The pattern of planned human resource deployments and activities intended to
enable a firm to achieve its goals.”
The definition of SHRM linking with business strategy has been given by Truss and
Gratton (1994) as, “The linking of HRM with strategic goals and objectives in order to
improve business performance and develop organization culture in order to foster
innovations and flexibility.”
5.2 Strategic HR Responses
Gratton and Truss (1994) stated that HR’s strategic role is to adapt individual HR
practices (recruiting, rewarding etc.) to fit specific corporate and competitive
strategies. As they further elaborate, “For any particular organizational strategy,
there is purportedly a matching human resources strategy.”
In response to the changes at strategic levels, the role of the HR function is
dramatically changing (Schuler and J ackson, 1987; Ulrich, 1998; Armstrong, 2006).
As a strategic partner, the HR Manager has to acquire the business mastery, a path
that would lead him / her to greater interactions with the top team (Ulrich and
Broackbank, 2005).
Ulrich (1998) reported that the highest variability in the data in relation to the
strategic partner suggesting the diverse nature in strategic partnership among HR
Managers. Moving beyond isolation as just HR experts, true leaders combine their
expertise of HR policies and practices with knowledge of the business to lead
change effectively (Rothwell, 1996).
Comparatively, fewer studies on strategic aspects of HRM have been done in South
Asia, mainly owing to the “infancy stage of HRM” (Budhwar, 2004). As Chanda and
Shen (2007) observe, the literature available on HRM practices is largely conceptual
and concludes that HRM practices can help to create sustained competitive
advantage, especially when they are aligned with a firm’s competitive strategy. It
points out to a gap where more empirical studies are needed, particularly in the
Asia-pacific context. This research fulfils such an empirical gap.
5.3 Realities of South Asia
South Asia has a rich heritage of culture and tradition in addition to its vast
population. It is in a threshold of economic expansion, amidst variety of challenges.
South Asia is a “humanly rich” region, which ranks among the world's most densely-
populated areas. Around 1.6 billion people live there – about one-fourth of all the
people in the world. The region's population density of 305 persons per square
kilometre is more than seven times the world average.
South Asia is a region with diversity in abundance. In exploring the human richness
of the region, several Human Resource related implications can be seen.
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Encouraging organizations to contribute more for economic growth demands
attracting, nurturing and retaining key talent. Ensuring the poor are not marginalized
includes equal opportunity without discrimination. Contributing towards the society in
the form of corporate social responsibility may assist the deserving poor. HR has to
act in all these fronts in delivering results.
Hence, the broad need is a holistic approach taking into consideration multi-faceted
realities of the South Asian region. The resulting outcome will be a well-balanced
economic growth with sufficient emphasis on poverty alleviation.
As Sinha (2002) opined, with human resource at the core of the new economy of
South Asia, the gap between what can be imagined and what can be achieved will
always get narrowed.” In a similar line, Sheth (1990) observed that South Asian
countries need dedicated professional managers in government, agriculture,
industry, trade and commerce, science and technology, co-operatives, public
services, administration and all other forms of socially productive enterprise, where
managerial expertise is also crucial input in formulation and implementation of
development plans at all levels, including relevant concepts, techniques, and tools in
the various areas of management.
The required response from strategically orientated HR Managers in South Asia is
aptly highlighted here.
6 Concept – Indicator Model
Figure 1 depicts the concept – indicator model based on the literature review.
Figure 1: Concept – Indicator Model
Strategic Orientation of
HR Manager
Organizational
Factors
Personal
Factors
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7 Methodology
This research adapted a mix methodology which was predominantly qualitative.
Grounded theory approach as proposed by Glaser and Strauss (1967), and
subsequently modified by Strauss and Corbin (1990) was selected as the
appropriate way to understand the patterns emerging from a relatively smaller
sample such as the one selected.
Additionally, Strategic Orientation Questionnaire (SOQ) adapted from Ulrich and
Brockbank (2005) and Strategic Integration Questionnaire (SIQ) adapted from
Chanda and Shen (2007) were used as quantitative data capturing instruments.
This research used purposive sampling, with emphasis on a sector having high
strategic significance in South Asia. Banks are the pillars of modern economic
development and they act as a catalyst for economic growth and development of the
country (Kamal, 2007). Accordingly, selection of four leading banks, based on the
country level business information such as the “top 10 business entity lists” was
done. The list of specific banks chosen was further endorsed by the academics of
the respective countries whom the researcher met as part of his regional study tour.
7.1 Data Collection
The companies involved with the study were code-named on request in order to
maintain anonymity. The details are as given in table 1.
Table 1: Sample Selected
Country Commercial Bank
Bangladesh BdBank
India InBank
Pakistan PkBank
Sri Lanka LkBank
There were three respondents from each company, viz. the CEO, head of finance
(CFO) and the head of HR (HRM), resulting in 12 depth interviews, with the personal
involvement of the researcher. Quantitative instruments (SOQ and SIQ) were also
administered to this sample.
As the sample was relatively small, no attempt was made to use detailed inferential
statistics, in association with the quantitative instruments.
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7.2 Sample Profile
The respondents included 4 HR Managers, 4 Chief Executive Officers and 4 Chief
Financial Officers. It was a 100% male sample, highlighting the relatively less
representation of women in senior managerial positions in South Asia.
Considering the education level of the respondents, the details shown in figure 2
can be seen.
Figure 2: Education Level of Respondents
First Degree,
2, 17%
Masters
Degree, 9,
75%
Doctorate, 1,
8%
Source: Survey Data
In relation to the education level of the respondents, it is evident that all but one of
them were graduates with majority possessing a postgraduate qualification, inclusive
of one doctorate. This indicates the level of emphasis given by the commercial
banks to education as a vital part of professionalism.
With regard to the education, further details can be seen, as depicted in figure 3.
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Figure 3: Local vs. Foreign Qualifications of Respondents
Local, 9, 76%
South Asian, 1,
8%
American, 1,
8%
European, 1,
8%
Source: Survey Data
The proportion of respondents having an overseas qualification is significantly higher
compared to other sectors. This indicates the need to equip oneself with rapidly
developing technology and advanced management practices (Armstrong, 2006).
In relation to the work experience of respondents, the details are as shown in figure
4.
Figure 4: Work Experience of Respondents
Between 20 -
25 yrs, 7, 58%
Between 26 -30
yrs, 2, 17%
Above 30 yrs,
3, 25%
Source: Survey Data
According to figure 4, a large majority of the respondents are having a work
experience between 20-25 years. This highlights the “relatively younger” top
management representing higher dynamism in line with industry needs.
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8 Analysis Of Data
Qualitative findings and quantitative findings are discussed separately with
subsequent assessment of their convergence.
8.1 Qualitative Findings
Based on the qualitative responses collected as a part of the in-depth interview,
several aspects of the HRM in focus were captured, as depicted in table 2.
Table 2: Key Strengths, Issues and Achievements of the HRM as Identified by
the CEO and the CFO
Key Strengths Key Issues Key Achievements
Experience in
Bangladesh as well as
Asia Pacific
Adoptability from a
multinational mindset to
a local bank
Revamping the
performance management
system
Systematic approach
with specialized
knowledge in HR
Less emphasis on
educating functional
managers on HR
Changing the performance
management system
incorporating individual
and team targets
Well balanced, having
the right mix of strategic
thinking and dedicated
execution
Need to develop the
entire HR team
Development of robust HR
systems
Has the ability to drive
multiple initiatives
Low level of inter-
departmental
relationships of the HR
team
HR Systems development
Exceptional dedication
and commitment
Need to significantly
improve the HR team
Introducing a performance
management system
Highly qualified in the
field of HR
Less business
awareness in the HR
team
Establishing a
performance management
system
Possession of required
competencies
Need to understand the
complexities of the
industry
Revamping the
performance management
system
Very competent in
handling HR
Need to tackle complex
issues promptly and
professionally
Improving the
performance management
system
Source: Survey Data
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According the above table, all three columns highlight the need of personal factors
and organizational factors contributing to strategic orientation of HR Managers.
In moving further, coding of the transcriptions was done resulting in more than 80
codes being generated. They were clustered and such clusters were labeled in line
with the concept-indicator model. Details of such personal factors and organizational
factors emerged are as shown in table 3.
Table 3: Emergence of Personal Factors
Source
:
Survey
Data
The above table depicts the emergence of three distinct personal factors through
qualitative data.
As the HRM of BdBank stated :
“I am satisfied with my involvement in business decisions, but I need more
understanding on the finer points of the banking industry. As most of the HR
Cluster Contents (Salient items) Cluster Label Definition from
Literature
- Involvement in regional
projects
- Influence of past incidents
- Demonstration of tacit
knowledge at work
- Social networking by HRM
- Experience and exposure to
diverse settings
Tacit knowledge
(PF1)
Knowledge gathered
through experience
in, and exposure to,
the strategic decision
making process.
(Adapted from
Nonaka and
Takeuchi, 1995)
- Assessment of status of HR
- Assessment of strategic
challenges
- Assessment of strategic role of
HRM
- Assessment of the HR team
- Envisioning for future
- Innovative solutions for
strategic HR issues
Conceptual skills
(PF2)
Envisioning and
analytical skills
needed for strategic
decision making.
(Adapted from Katz,
1974)
- Awareness of business needs
- Awareness of company
practices
- Critical assessment of mgt.
structure
- Awareness of key org.
challenges
- Awareness of business
achievements
- Critical assessment of industry
Business awareness
(PF3)
The understanding
of the nature of
business one’s
organization is
engaged in.
(Adapted from Ulrich
and Brockbank,
2005)
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people in local banks perform a transactional type of a job, it is very difficult
to transform the mindsets. For example, talent management is absolutely
zero. I of course can introduce attracting, nurturing and sustaining key
talent, because of my MNC exposure. Whether the industry is ready for
such new approaches is a question. But I am very optimistic on one key
aspect. When more and more foreign banks enter Bangladesh and offer
innovative solutions, we can’t just wait.” (Extracted from transcription related
to HRM, BdBank, 03/03/07)
The above statement is a clear indication of the HRM knowing the ground situation
and the challenges that lie ahead. Such an appreciation of reality is of vital
importance for the strategic orientation of HRMs.
In a similar manner, organizational factors were also captured. Table 4 contains the
details.
Table 4: Emergence of Organizational Factors
Cluster Contents (Salient items) Cluster Label Definition from Literature
Appreciation of achievements of
HRM
Appreciation of strategic role of
HRM
Association of Leader and HRM
Leader’s awareness of HRD
Leader’s contribution in HR
decisions
Recognition of HR capability
Leader’s recognition of
HR (OF1)
The understanding of the
CEO on the importance of
HR. (Adapted from Avolio
et al., 1991 and Pareek,
1997).
Assessment of HR implementation
Assessment of org. performance
Collective approach to
performance
Setting of targets as per the
Balanced Scorecard
Recognition of strategic HR
achievements
Performance orientation
(OF2)
The amount of thrust and
emphasis from the
organization toward the
achievement of set
objectives. (Adapted from
Kaplan and Norton, 2001)
Assessment of friendly org culture
Autonomy enjoyed by the HRM
Recognition of HRM by the
organization
Supporting environment for
innovation
Trust in HRM by the organization
Conducive organizational
environment (OF3)
The organizational climate
which is influential for HR
Manager to be strategically
oriented, with openness in
sharing information and
encouragement for
innovation. (Adapted from
Rao, 1990 and Pareek,
1997)
Source: Survey Data
According the table 4, three distinct organizational factors emerge through the
qualitative data captured.
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8.2 Quantitative Findings
Based on the data collected using the Strategic Integration Questionnaire (SIQ)
adapted from Chanda and Shen (2007), the following picture can be seen.
Figure 5: Strategic Integration of HR in Four Commercial Banks
0.0
1.0
2.0
3.0
4.0
5.0
HR Strategy Formulation
HR Involvement in Business
Line Manager Involvement in HR
Facilitating Performance Management Fulfilling T & D Needs
Empowering Line on Remuneration
HR for Employee Relations
BdBank InBank PkBank LkBank
Source: Survey Data
According to figure 5, it appears that HR strategy formulation is one dimension
where there is a significant variation among the four banks. Depending on the time
of commencement of strategic HR initiatives, the current state of progress may
occupy varying levels. In other words, it could be a case of early starters vs. late
starters.
Considering the data captured through the Strategic Orientation Questionnaire
(SOQ) adapted from Ulrich and Brockbank (2005), the scenario as depicted in table
5 can be seen.
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Table 5: Responses to the SOQ
Statement Mean Std. Dev.
1
He/She actively is involved in developing long-
term goals of the organization. 4.25 0.62
2
He/She is consulted by the MD/CEO in making
key decisions on people. 4.67 0.49
3
He/She designs HR strategies in line with broad
organizational strategies. 4.58 0.51
4
He/She serves in cross-functional teams tackling
strategic issues. 4.17 0.39
5
He/She introduces key measurements to assess
HR effectiveness. 4.25 0.62
6
He/She is conversant with the use of HR related
IT systems. 4.67 0.49
7
He/She is aware of the key competitive
challenges. faced by his/her organization. 4.42 0.67
8
He/She strives to optimize the people
contribution in overcoming strategic challenges. 4.50 0.52
9
He/She acts as a coach in ensuring the other key
senior managers play their people management
role. 4.67 0.49
10
He/She strives to improve the internal
communication so that the key initiatives and
results are cascaded down in an effective
manner. 4.58 0.51
Source: Survey Data
The mean scores for the 12 responses indicate a trend towards a higher mean.
However, as the standard deviation figures indicate variations across the four banks,
the awareness of key competitive challenges faced by the organization (Item 7) has
obtained the highest diverse responses. Figure 6 shows the diversity of such
responses.
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FIGURE 6. Responses from Banks on HRMs Awareness of Key Competitive
Challenges
0
1
2
3
4
5
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a
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-
H
R
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L
k
B
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-
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L
k
B
a
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-
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F
O
Source: Survey Data
The above Figure indicates consistency among many organizations with the
exception of the relatively lower rated BdBank. Even though, the HRM in focus was
a veteran in the field of HR, he was relatively new to the industry. The scenario is
expected to change over a period of time.
The above discussion indicates a convergence between the qualitative findings as
well as quantitative findings. Such a scenario is in line with inter-method triangulation
advocated by Denzin (1978).
9 The Emergent Model
Based on the personal and organizational factors emerged through data in relation
to the strategic orientation of HR Managers, the emergent model as depicted in
figure 7 can be seen.
The emergent model depicts the interactional effects of personal factors as well as
organizational factors in relation to strategic orientation of HR Managers. The
researcher intends to introduce two key concepts, in relation to varying levels of
personal and organizational factors, namely, Competency Deficit and Opportunity
Deficit. It is worthwhile investigating the characteristics of two such scenarios.
Dharmasiri
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Figure 7: The Emergent Model
Source: Survey Data
Competency Deficit refers to a scenario where the organization provides an
opportunity for the HR Manager to get involved in the strategic decision making
process, he /she does not capitalize by moving ahead appropriately, as there are
serious competency gaps in him/her. Attention has to be paid to the context, where
there is a significant recognition of people as a key asset in the organization, and
there is sufficient emphasis on strategic planning process. In such a case, why HR
Manager does not play the role of a strategic partner, in one way, could be attributed
to issues with his/her competencies, that need to be systematically explored.
Low
Low
High
High
Level of Presence of
Organizational Factors
Strategic
Involvement
Operational
Involvement
Opportunity
Deficit
Competency
Deficit
Strategic
Orientation of
HR Manager
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Business Awareness
Conceptual Skills
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Dharmasiri
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Opportunity Deficit refers to a scenario where the HR Manager is willing and able to
become a strategic partner, the organization does not provide the needed
opportunity. It can be caused by not having an enabling leadership, non availability
of a supportive climate, and non existence of a performance orientation in the
organization. Relevant contextual aspects need to be considered in this case as
well. Whilst a significant recognition of people and sufficient emphasis on strategic
planning process, why there is a lack of opportunity for the HR Manager to play the
role of a strategic partner, demands an in-depth investigation.
Based on the emergent model, the researcher intends to propose several
propositions that need further investigation through detailed studies.
P1: Greater the presence of tacit knowledge in the HR Manager, lower will be the
competency deficit, resulting in a higher level of strategic orientation of the HR
manager.
P2: Greater the presence of conceptual skills in the HR Manager, lower will be the
competency deficit, resulting in a higher level of strategic orientation of the HR
manager.
P3: Greater the level of business awareness of the HR Manager, lower will be the
competency deficit, resulting in a higher level of strategic orientation of the HR
manager.
P4: Greater the leader’s recognition of HR, lower will be the opportunity deficit,
resulting in a higher level of strategic orientation of the HR Manager.
P5: Greater the presence of a conducive organizational environment, lower will be
the opportunity deficit, resulting in a higher level of strategic orientation of the
HR Manager.
P6: Greater the emphasis on performance orientation, lower will be the
opportunity deficit, resulting in a higher level of strategic orientation of the HR
Manager.
The findings discussed so far are in line with research conducted by Hoque and
Moon (2001) who established that: “The growing number of specialists using the HR
title are well qualified, are more likely to be involved in strategic decision making
processes and are most likely to be found in on workplaces within which
sophisticated methods and techniques have been adopted”.
Further, the findings arrived at a South Asian setting is of significance due to variety
of reasons. As Khatri (1999) observes, conducting strategic HRM studies in other
parts of the world, for example Asia, would help to meet the shortage of empirical
work in the field in those parts of the world and also serve as a vehicle for
comparative studies.
10 Limitations Of The Study
As the research was based on a predominantly qualitative approach with exploratory
nature, inability to predict the strategic orientation of HR Managers of other
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organizations in South Asia, based on the findings of this research, could be stated
as a limitation.
Accordingly, selection of a larger sample with organizations representing all the
major industries will be useful for a better understanding of the strategic orientation
of HR Managers in South Asia.
Impact of national culture on the firm performance was not considered in this study.
Differences emerged from the data in relation to four Commercial Banks could have
been analyzed with inferences to cultural dimensions such as those recommended
by Hofstede (1991).
11 Recommendations
Based on the findings of the research, following recommendations can be made, for
the organizations.
11.1 Strategic Involvement of HR
It needs to be ensured that the HR Manager is involved in the strategic decision
making process of the organization. This may translated into several key actions
such as:
i. Encouraging the HR Managers involvement in cross functional teams tackling
strategic issues
ii. Presence in top team in providing people related information on issues and
implications of decisions.
iii. Coaching element of HR Manager where he/she acts as the internal consultant in
advising the line managers on HR matters, with the premise that “all managers
should be HR Managers”.
iv. Regular meetings between the CEO and the HR Manager, in discussing key
people matters affecting the business.
11.2 Strategic Alignment of HR
It also needs to be ensured that that HR policies and practices are aligned to the
organizational strategic direction, and are reflective of organization’s long term
goals.
This should be practically approached as:
i. HR Manager is well updated on the strategic direction of the organizations, with
regular reference to organizational documents, meeting minutes and discussions.
ii. Devise a checklist for HR initiatives to ascertain the strategic alignment, and
apply it in case of every new HR initiative.
iii. Cultivate the practice of connecting the HR actions with the broad organizational
objectives, especially with the HR Manager leading by example in grooming the
HR team.
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11.3 Strategic Contribution of HR
It needs to be ensured that HR function, and particularly the Head of HR is
accountable for people- related strategic matters and thus should achieved agreed
targets. Quantification of targets with appropriate matrix will be a perquisite for this.
In executing the key tasks, the following practical actions need attention:
i. Appropriate usage of strategic results tracking tool such as Balanced Score
Card, with emphasis on people related parameters.
ii. More focused HR scorecard, representing HR strategies, objectives, initiatives
and action plans should be in place.
iii. Regular review of strategic contribution of HR team and communicating the
results to all concerned should be given priority. Such reviews may also act as
“course correction” opportunities.
Considering the HR Manager as an individual, the following recommendations can
be made based on the findings of the research.
11.4 Upgrading Competencies of HR Managers
HR Manager can not survive in an increasingly changing business environment
without regularly enhancing his/her knowledge and skills with desired attitude.
Some possible actions are:
i. Be in touch with current research done on HR, with understanding and
applications where relevant and possible
ii. Embark on development programs such as short courses on diverse aspects, not
only in HR but also in relation to business as a whole.
iii. Think and act with more business sense, with greater understanding on
business, by way of being in touch with the rest of the organization as well as the
outside world
11.5 Exploring Opportunities for HR Managers
Professional networking by means of active membership in organizations related to
HR is becoming increasingly important.
Some possible practical actions in this direction are:
i. Becoming a member of already existing HR body, such as Institute of Human
Resource Management
ii. Form new bodies to establish greater cooperation related to common issues,
despite organizations competing with each other. All HR Managers in banks
getting together in one forum to discuss common people issues is one such
example.
Dharmasiri
19
iii. Facilitating activities involving more than one organization in line with CSR
initiatives, with a clear understanding of the community needs.
12 Conclusion
As an overall conclusion of this study, it can be stated that the strategic orientation of
the HR Managers selected from a purposive sample of four high performing
Commercial Banks in Bangladesh, India, Pakistan and Sri Lanka showed a
satisfactory level of strategic orientation, confirming the findings of related studies
done earlier.
It is expected that the findings will contribute to the broadening of the existing
knowledge on the HR Managers in South Asia, with academic, managerial, and
societal implications.
14 References
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Trends and the Future of HRD, Advances in Developing Human Resources, 5
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of Human Resource Management, 14 (2): 540 – 543.
Sinha, D. P. 2002, South Asian Management: Challenges in the New Millennium,
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Procedures and Techniques, Sage, Newbury Park, CA.
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Conceptual Approach, International Journal of Human Resource Management, 1
(5): 636–86.
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Ulrich. D. and Brockbank, Y. 2005, The HR Value Proposition, Harvard Business
School Press, Boston: 200-222.
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New York: 34-41.
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of Sustained Competitive Advantage: A Resource-Based View, International
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doc_546411237.pdf
The research problem was formulated as: With the increased emphasis on human capital as a global trend, what is the extent of strategic orientation of Human Resource Managers in South Asia? The objectives were to identify the personal factors as well as organizational factors that contribute to the strategic orientation of HR Managers and to identify the interactional effects of personal and organizational factors.
International Review of Business Research Papers
Vol. 5 No. 6 November 2009, Pp.1?21
1
Strategic Orientation Of HR Managers In Commercial Banks In
South Asia
Ajantha S Dharmasiri,
The research problem was formulated as: “With the increased emphasis on human capital
as a global trend, what is the extent of strategic orientation of Human Resource Managers
in South Asia?” The objectives were to identify the personal factors as well as
organizational factors that contribute to the strategic orientation of HR Managers and to
identify the interactional effects of personal and organizational factors. The scope of the
research was limited to selected high-performing Commercial Banks from Bangladesh,
India, Pakistan and Sri Lanka. A mixed methodology involving a predominantly qualitative
approach supported by a quantitative component was adapted. In-depth interviews were
conducted with the Chief Executive Officer, Chief Finance Officer, and the Head of HR of
each company. Quantitative questionnaires were also administered to capture additional
data. The key personal factors emerged were tacit knowledge, conceptual skills, and
business awareness. Leader’s recognition of HR, conducive organizational environment
and performance orientation emerged as key organizational factors. Interactional effects of
the above factors were also discussed highlighting Competency Deficit and Opportunity
Deficit.
Field of Research: Human Resource Management
1 Introduction
Human Resource (HR) Managers have to contribute as members of senior
management teams striving towards profitable growth. A recent survey on emerging
trends in HR (Ruona et al., 2003) revealed that there is much concern about HR’s
absence in the “boardroom” and in organizational leadership positions. Also, the
question of value addition and particularly “impact on the bottom line” has been
raised (Ulrich, 1998). In this research, HR Manager is meant to be a senior person
engaged in Human Resources activities as an occupation.
_________________
Dr. Ajantha Dharmasiri, Postgraduate Institute of Management, University of Sri
J ayewardenepura, Sri Lanka; Email: [email protected], Web: www.pim.lk
Acknowledgements : The author wishes to acknowledge the support rendered by the Association of
Management Development Institutions of South Asia (AMDISA) in providing the financial assistance
for a South Asian management study, through the Commonwealth AMDISA grant awarded for eligible
doctoral candidates.
Dharmasiri
2
In other words, a manager with experience and qualifications, handling the
responsibilities associated with the Human Resources function of an organization
(Dessler, 2003). Wheelen and Hunger (1988) define strategic orientation as thinking
and action of a person, reflecting the long term plans of the organization he/she
works for. It includes the involvement in the strategy formulation, implementation and
evaluation stages of the strategic decision making process. It can also be stated as
a structured process of thinking to “see the unseen”, leading to action.
Bing et al. (2003) in describing the challenges to the field of HR state that “the
challenge to practitioners is to move beyond a silo mentality in which solutions can
only be found within HRD and to embrace a perspective that organizational
problems are systemic and require systemic solutions”. Considering the region of
South Asia, a scenario can be seen where paradoxically, the best brains and worst
poverty are both present (Bhushan, 2000). He further states that “… the role of
managerial development, as a harbinger of social and economic change can play in
getting the South Asian region its rightful place in the committee of nations”.
Strategic orientation of HR Managers would be of prime importance in such an
endeavour, in aligning HR strategies with organizational direction in order to reap the
true benefits of regional synergies.
Considering the state of HRM in India, Budhwar (2001) comments that the pressures
created by overseas operators on local operators have created a strong need for
Indian HR Managers to seriously emphasize issues related to performance. Singh
(2003) studied the strategic HR orientation and firm performance in India, and
highlighted a significant relationship between strategic orientation and firm
performance. In the case of Pakistan, a significant emphasis on the need of HR is
evident. According to Khilji (2001), the function of HR holds a promise for employees
in Pakistan and it is the way forward. Considering the state of HRM in Bangladesh,
Siddiquee (2003) endorses a similar view point. According to him, despite the
prevalence of a broad consensus on the strategic importance of human resource
factor, the paradigm shift is yet to take place in public bureaucracies of developing
countries including Bangladesh. Nanayakkara (2003) points out that “weak work
ethic, individualism, feminity and weak uncertainty avoidance, which is not a
productive combination of variables for a strong organizational culture could explain
some of the underdeveloped characteristics of human resource management in Sri
Lanka.” According to him, the overall HRM performance was below the expectation
levels and the HR strategy - business strategy link was found to be the weakest link.
The above country-specific details of the level of HR highlight the need for an in-
depth study incorporating the entire region. This paper presents a part of such an
endeavour, in fulfilling a research gap.
Dharmasiri
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2 Research Problem
Against the background of the above discussion, the research problem is stated as
follows:
“ With the increased emphasis on human capital as a global trend, what is the extent
of strategic orientation of Human Resource managers in South Asia?”
3 Research Questions
In relation to the research problem, following research questions were raised:
i. What are the personal factors that contribute to the strategic orientation of HR
Managers?
ii. What are the organizational factors that contribute to the strategic orientation of
HR Managers?
iii. What are the interactional effects of personal and organizational factors to the
strategic orientation of HR Managers?
4 Objectives Of The Study
The objectives of the study were to:
i. To identify the personal factors that contribute to the strategic orientation of HR
Managers in South Asia
ii. To identify the organizational factors that contribute to the strategic orientation of
HR Managers in South Asia
iii. To identify the interactional effects of personal and organizational factors by way
of exploring the trends emerging in relation to strategic orientation of HR
Managers in South Asia
iv. To recommend key strategies to organizations as well as for the HR Managers,
to improve the strategic orientation of HR Managers in South Asia
5 Literature Review
Attempt is made to briefly present the research findings of the key concepts
associated. Strategic Human Resource Management (SHRM), Strategic HR
Responses, and Regional Realities of South Asia were the three key components in
focus.
5.1 Strategic Human Resource Management
According to Schuler & J ackson (1987) Strategic Human Resource Management
(SHRM) is, “Explicitly linking HRM with strategic management processes of the
organization and to emphasize coordination and congruence among the various
human resource management practices”. Wright et al. (1994) defined SHRM as,
Dharmasiri
4
“The pattern of planned human resource deployments and activities intended to
enable a firm to achieve its goals.”
The definition of SHRM linking with business strategy has been given by Truss and
Gratton (1994) as, “The linking of HRM with strategic goals and objectives in order to
improve business performance and develop organization culture in order to foster
innovations and flexibility.”
5.2 Strategic HR Responses
Gratton and Truss (1994) stated that HR’s strategic role is to adapt individual HR
practices (recruiting, rewarding etc.) to fit specific corporate and competitive
strategies. As they further elaborate, “For any particular organizational strategy,
there is purportedly a matching human resources strategy.”
In response to the changes at strategic levels, the role of the HR function is
dramatically changing (Schuler and J ackson, 1987; Ulrich, 1998; Armstrong, 2006).
As a strategic partner, the HR Manager has to acquire the business mastery, a path
that would lead him / her to greater interactions with the top team (Ulrich and
Broackbank, 2005).
Ulrich (1998) reported that the highest variability in the data in relation to the
strategic partner suggesting the diverse nature in strategic partnership among HR
Managers. Moving beyond isolation as just HR experts, true leaders combine their
expertise of HR policies and practices with knowledge of the business to lead
change effectively (Rothwell, 1996).
Comparatively, fewer studies on strategic aspects of HRM have been done in South
Asia, mainly owing to the “infancy stage of HRM” (Budhwar, 2004). As Chanda and
Shen (2007) observe, the literature available on HRM practices is largely conceptual
and concludes that HRM practices can help to create sustained competitive
advantage, especially when they are aligned with a firm’s competitive strategy. It
points out to a gap where more empirical studies are needed, particularly in the
Asia-pacific context. This research fulfils such an empirical gap.
5.3 Realities of South Asia
South Asia has a rich heritage of culture and tradition in addition to its vast
population. It is in a threshold of economic expansion, amidst variety of challenges.
South Asia is a “humanly rich” region, which ranks among the world's most densely-
populated areas. Around 1.6 billion people live there – about one-fourth of all the
people in the world. The region's population density of 305 persons per square
kilometre is more than seven times the world average.
South Asia is a region with diversity in abundance. In exploring the human richness
of the region, several Human Resource related implications can be seen.
Dharmasiri
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Encouraging organizations to contribute more for economic growth demands
attracting, nurturing and retaining key talent. Ensuring the poor are not marginalized
includes equal opportunity without discrimination. Contributing towards the society in
the form of corporate social responsibility may assist the deserving poor. HR has to
act in all these fronts in delivering results.
Hence, the broad need is a holistic approach taking into consideration multi-faceted
realities of the South Asian region. The resulting outcome will be a well-balanced
economic growth with sufficient emphasis on poverty alleviation.
As Sinha (2002) opined, with human resource at the core of the new economy of
South Asia, the gap between what can be imagined and what can be achieved will
always get narrowed.” In a similar line, Sheth (1990) observed that South Asian
countries need dedicated professional managers in government, agriculture,
industry, trade and commerce, science and technology, co-operatives, public
services, administration and all other forms of socially productive enterprise, where
managerial expertise is also crucial input in formulation and implementation of
development plans at all levels, including relevant concepts, techniques, and tools in
the various areas of management.
The required response from strategically orientated HR Managers in South Asia is
aptly highlighted here.
6 Concept – Indicator Model
Figure 1 depicts the concept – indicator model based on the literature review.
Figure 1: Concept – Indicator Model
Strategic Orientation of
HR Manager
Organizational
Factors
Personal
Factors
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6
7 Methodology
This research adapted a mix methodology which was predominantly qualitative.
Grounded theory approach as proposed by Glaser and Strauss (1967), and
subsequently modified by Strauss and Corbin (1990) was selected as the
appropriate way to understand the patterns emerging from a relatively smaller
sample such as the one selected.
Additionally, Strategic Orientation Questionnaire (SOQ) adapted from Ulrich and
Brockbank (2005) and Strategic Integration Questionnaire (SIQ) adapted from
Chanda and Shen (2007) were used as quantitative data capturing instruments.
This research used purposive sampling, with emphasis on a sector having high
strategic significance in South Asia. Banks are the pillars of modern economic
development and they act as a catalyst for economic growth and development of the
country (Kamal, 2007). Accordingly, selection of four leading banks, based on the
country level business information such as the “top 10 business entity lists” was
done. The list of specific banks chosen was further endorsed by the academics of
the respective countries whom the researcher met as part of his regional study tour.
7.1 Data Collection
The companies involved with the study were code-named on request in order to
maintain anonymity. The details are as given in table 1.
Table 1: Sample Selected
Country Commercial Bank
Bangladesh BdBank
India InBank
Pakistan PkBank
Sri Lanka LkBank
There were three respondents from each company, viz. the CEO, head of finance
(CFO) and the head of HR (HRM), resulting in 12 depth interviews, with the personal
involvement of the researcher. Quantitative instruments (SOQ and SIQ) were also
administered to this sample.
As the sample was relatively small, no attempt was made to use detailed inferential
statistics, in association with the quantitative instruments.
Dharmasiri
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7.2 Sample Profile
The respondents included 4 HR Managers, 4 Chief Executive Officers and 4 Chief
Financial Officers. It was a 100% male sample, highlighting the relatively less
representation of women in senior managerial positions in South Asia.
Considering the education level of the respondents, the details shown in figure 2
can be seen.
Figure 2: Education Level of Respondents
First Degree,
2, 17%
Masters
Degree, 9,
75%
Doctorate, 1,
8%
Source: Survey Data
In relation to the education level of the respondents, it is evident that all but one of
them were graduates with majority possessing a postgraduate qualification, inclusive
of one doctorate. This indicates the level of emphasis given by the commercial
banks to education as a vital part of professionalism.
With regard to the education, further details can be seen, as depicted in figure 3.
Dharmasiri
8
Figure 3: Local vs. Foreign Qualifications of Respondents
Local, 9, 76%
South Asian, 1,
8%
American, 1,
8%
European, 1,
8%
Source: Survey Data
The proportion of respondents having an overseas qualification is significantly higher
compared to other sectors. This indicates the need to equip oneself with rapidly
developing technology and advanced management practices (Armstrong, 2006).
In relation to the work experience of respondents, the details are as shown in figure
4.
Figure 4: Work Experience of Respondents
Between 20 -
25 yrs, 7, 58%
Between 26 -30
yrs, 2, 17%
Above 30 yrs,
3, 25%
Source: Survey Data
According to figure 4, a large majority of the respondents are having a work
experience between 20-25 years. This highlights the “relatively younger” top
management representing higher dynamism in line with industry needs.
Dharmasiri
9
8 Analysis Of Data
Qualitative findings and quantitative findings are discussed separately with
subsequent assessment of their convergence.
8.1 Qualitative Findings
Based on the qualitative responses collected as a part of the in-depth interview,
several aspects of the HRM in focus were captured, as depicted in table 2.
Table 2: Key Strengths, Issues and Achievements of the HRM as Identified by
the CEO and the CFO
Key Strengths Key Issues Key Achievements
Experience in
Bangladesh as well as
Asia Pacific
Adoptability from a
multinational mindset to
a local bank
Revamping the
performance management
system
Systematic approach
with specialized
knowledge in HR
Less emphasis on
educating functional
managers on HR
Changing the performance
management system
incorporating individual
and team targets
Well balanced, having
the right mix of strategic
thinking and dedicated
execution
Need to develop the
entire HR team
Development of robust HR
systems
Has the ability to drive
multiple initiatives
Low level of inter-
departmental
relationships of the HR
team
HR Systems development
Exceptional dedication
and commitment
Need to significantly
improve the HR team
Introducing a performance
management system
Highly qualified in the
field of HR
Less business
awareness in the HR
team
Establishing a
performance management
system
Possession of required
competencies
Need to understand the
complexities of the
industry
Revamping the
performance management
system
Very competent in
handling HR
Need to tackle complex
issues promptly and
professionally
Improving the
performance management
system
Source: Survey Data
Dharmasiri
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According the above table, all three columns highlight the need of personal factors
and organizational factors contributing to strategic orientation of HR Managers.
In moving further, coding of the transcriptions was done resulting in more than 80
codes being generated. They were clustered and such clusters were labeled in line
with the concept-indicator model. Details of such personal factors and organizational
factors emerged are as shown in table 3.
Table 3: Emergence of Personal Factors
Source
:
Survey
Data
The above table depicts the emergence of three distinct personal factors through
qualitative data.
As the HRM of BdBank stated :
“I am satisfied with my involvement in business decisions, but I need more
understanding on the finer points of the banking industry. As most of the HR
Cluster Contents (Salient items) Cluster Label Definition from
Literature
- Involvement in regional
projects
- Influence of past incidents
- Demonstration of tacit
knowledge at work
- Social networking by HRM
- Experience and exposure to
diverse settings
Tacit knowledge
(PF1)
Knowledge gathered
through experience
in, and exposure to,
the strategic decision
making process.
(Adapted from
Nonaka and
Takeuchi, 1995)
- Assessment of status of HR
- Assessment of strategic
challenges
- Assessment of strategic role of
HRM
- Assessment of the HR team
- Envisioning for future
- Innovative solutions for
strategic HR issues
Conceptual skills
(PF2)
Envisioning and
analytical skills
needed for strategic
decision making.
(Adapted from Katz,
1974)
- Awareness of business needs
- Awareness of company
practices
- Critical assessment of mgt.
structure
- Awareness of key org.
challenges
- Awareness of business
achievements
- Critical assessment of industry
Business awareness
(PF3)
The understanding
of the nature of
business one’s
organization is
engaged in.
(Adapted from Ulrich
and Brockbank,
2005)
Dharmasiri
11
people in local banks perform a transactional type of a job, it is very difficult
to transform the mindsets. For example, talent management is absolutely
zero. I of course can introduce attracting, nurturing and sustaining key
talent, because of my MNC exposure. Whether the industry is ready for
such new approaches is a question. But I am very optimistic on one key
aspect. When more and more foreign banks enter Bangladesh and offer
innovative solutions, we can’t just wait.” (Extracted from transcription related
to HRM, BdBank, 03/03/07)
The above statement is a clear indication of the HRM knowing the ground situation
and the challenges that lie ahead. Such an appreciation of reality is of vital
importance for the strategic orientation of HRMs.
In a similar manner, organizational factors were also captured. Table 4 contains the
details.
Table 4: Emergence of Organizational Factors
Cluster Contents (Salient items) Cluster Label Definition from Literature
Appreciation of achievements of
HRM
Appreciation of strategic role of
HRM
Association of Leader and HRM
Leader’s awareness of HRD
Leader’s contribution in HR
decisions
Recognition of HR capability
Leader’s recognition of
HR (OF1)
The understanding of the
CEO on the importance of
HR. (Adapted from Avolio
et al., 1991 and Pareek,
1997).
Assessment of HR implementation
Assessment of org. performance
Collective approach to
performance
Setting of targets as per the
Balanced Scorecard
Recognition of strategic HR
achievements
Performance orientation
(OF2)
The amount of thrust and
emphasis from the
organization toward the
achievement of set
objectives. (Adapted from
Kaplan and Norton, 2001)
Assessment of friendly org culture
Autonomy enjoyed by the HRM
Recognition of HRM by the
organization
Supporting environment for
innovation
Trust in HRM by the organization
Conducive organizational
environment (OF3)
The organizational climate
which is influential for HR
Manager to be strategically
oriented, with openness in
sharing information and
encouragement for
innovation. (Adapted from
Rao, 1990 and Pareek,
1997)
Source: Survey Data
According the table 4, three distinct organizational factors emerge through the
qualitative data captured.
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12
8.2 Quantitative Findings
Based on the data collected using the Strategic Integration Questionnaire (SIQ)
adapted from Chanda and Shen (2007), the following picture can be seen.
Figure 5: Strategic Integration of HR in Four Commercial Banks
0.0
1.0
2.0
3.0
4.0
5.0
HR Strategy Formulation
HR Involvement in Business
Line Manager Involvement in HR
Facilitating Performance Management Fulfilling T & D Needs
Empowering Line on Remuneration
HR for Employee Relations
BdBank InBank PkBank LkBank
Source: Survey Data
According to figure 5, it appears that HR strategy formulation is one dimension
where there is a significant variation among the four banks. Depending on the time
of commencement of strategic HR initiatives, the current state of progress may
occupy varying levels. In other words, it could be a case of early starters vs. late
starters.
Considering the data captured through the Strategic Orientation Questionnaire
(SOQ) adapted from Ulrich and Brockbank (2005), the scenario as depicted in table
5 can be seen.
Dharmasiri
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Table 5: Responses to the SOQ
Statement Mean Std. Dev.
1
He/She actively is involved in developing long-
term goals of the organization. 4.25 0.62
2
He/She is consulted by the MD/CEO in making
key decisions on people. 4.67 0.49
3
He/She designs HR strategies in line with broad
organizational strategies. 4.58 0.51
4
He/She serves in cross-functional teams tackling
strategic issues. 4.17 0.39
5
He/She introduces key measurements to assess
HR effectiveness. 4.25 0.62
6
He/She is conversant with the use of HR related
IT systems. 4.67 0.49
7
He/She is aware of the key competitive
challenges. faced by his/her organization. 4.42 0.67
8
He/She strives to optimize the people
contribution in overcoming strategic challenges. 4.50 0.52
9
He/She acts as a coach in ensuring the other key
senior managers play their people management
role. 4.67 0.49
10
He/She strives to improve the internal
communication so that the key initiatives and
results are cascaded down in an effective
manner. 4.58 0.51
Source: Survey Data
The mean scores for the 12 responses indicate a trend towards a higher mean.
However, as the standard deviation figures indicate variations across the four banks,
the awareness of key competitive challenges faced by the organization (Item 7) has
obtained the highest diverse responses. Figure 6 shows the diversity of such
responses.
Dharmasiri
14
FIGURE 6. Responses from Banks on HRMs Awareness of Key Competitive
Challenges
0
1
2
3
4
5
B
d
B
a
n
k
-
H
R
M
B
d
B
a
n
k
-
C
E
O
B
d
B
a
n
k
-
C
F
O
I
n
B
a
n
k
-
H
R
M
I
n
B
a
n
k
-
H
R
M
I
n
B
a
n
k
-
H
R
M
P
k
B
a
n
k
-
H
R
M
P
k
B
a
n
k
-
C
E
O
P
k
B
a
n
k
-
C
F
O
L
k
B
a
n
k
-
H
R
M
L
k
B
a
n
k
-
H
R
M
L
k
B
a
n
k
-
C
F
O
Source: Survey Data
The above Figure indicates consistency among many organizations with the
exception of the relatively lower rated BdBank. Even though, the HRM in focus was
a veteran in the field of HR, he was relatively new to the industry. The scenario is
expected to change over a period of time.
The above discussion indicates a convergence between the qualitative findings as
well as quantitative findings. Such a scenario is in line with inter-method triangulation
advocated by Denzin (1978).
9 The Emergent Model
Based on the personal and organizational factors emerged through data in relation
to the strategic orientation of HR Managers, the emergent model as depicted in
figure 7 can be seen.
The emergent model depicts the interactional effects of personal factors as well as
organizational factors in relation to strategic orientation of HR Managers. The
researcher intends to introduce two key concepts, in relation to varying levels of
personal and organizational factors, namely, Competency Deficit and Opportunity
Deficit. It is worthwhile investigating the characteristics of two such scenarios.
Dharmasiri
15
Figure 7: The Emergent Model
Source: Survey Data
Competency Deficit refers to a scenario where the organization provides an
opportunity for the HR Manager to get involved in the strategic decision making
process, he /she does not capitalize by moving ahead appropriately, as there are
serious competency gaps in him/her. Attention has to be paid to the context, where
there is a significant recognition of people as a key asset in the organization, and
there is sufficient emphasis on strategic planning process. In such a case, why HR
Manager does not play the role of a strategic partner, in one way, could be attributed
to issues with his/her competencies, that need to be systematically explored.
Low
Low
High
High
Level of Presence of
Organizational Factors
Strategic
Involvement
Operational
Involvement
Opportunity
Deficit
Competency
Deficit
Strategic
Orientation of
HR Manager
L
e
v
e
l
o
f
P
r
e
s
e
n
c
e
o
f
P
e
r
s
o
n
a
l
F
a
c
t
o
r
s
Tacit Knowledge
Business Awareness
Conceptual Skills
L
e
a
d
e
r
’
s
r
e
c
o
g
n
i
t
i
o
n
o
f
H
R
P
e
r
f
o
r
m
a
n
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e
O
r
i
e
n
t
a
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o
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C
o
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d
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c
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v
e
O
r
g
a
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z
a
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o
n
a
l
E
n
v
i
r
o
n
m
e
n
t
Dharmasiri
16
Opportunity Deficit refers to a scenario where the HR Manager is willing and able to
become a strategic partner, the organization does not provide the needed
opportunity. It can be caused by not having an enabling leadership, non availability
of a supportive climate, and non existence of a performance orientation in the
organization. Relevant contextual aspects need to be considered in this case as
well. Whilst a significant recognition of people and sufficient emphasis on strategic
planning process, why there is a lack of opportunity for the HR Manager to play the
role of a strategic partner, demands an in-depth investigation.
Based on the emergent model, the researcher intends to propose several
propositions that need further investigation through detailed studies.
P1: Greater the presence of tacit knowledge in the HR Manager, lower will be the
competency deficit, resulting in a higher level of strategic orientation of the HR
manager.
P2: Greater the presence of conceptual skills in the HR Manager, lower will be the
competency deficit, resulting in a higher level of strategic orientation of the HR
manager.
P3: Greater the level of business awareness of the HR Manager, lower will be the
competency deficit, resulting in a higher level of strategic orientation of the HR
manager.
P4: Greater the leader’s recognition of HR, lower will be the opportunity deficit,
resulting in a higher level of strategic orientation of the HR Manager.
P5: Greater the presence of a conducive organizational environment, lower will be
the opportunity deficit, resulting in a higher level of strategic orientation of the
HR Manager.
P6: Greater the emphasis on performance orientation, lower will be the
opportunity deficit, resulting in a higher level of strategic orientation of the HR
Manager.
The findings discussed so far are in line with research conducted by Hoque and
Moon (2001) who established that: “The growing number of specialists using the HR
title are well qualified, are more likely to be involved in strategic decision making
processes and are most likely to be found in on workplaces within which
sophisticated methods and techniques have been adopted”.
Further, the findings arrived at a South Asian setting is of significance due to variety
of reasons. As Khatri (1999) observes, conducting strategic HRM studies in other
parts of the world, for example Asia, would help to meet the shortage of empirical
work in the field in those parts of the world and also serve as a vehicle for
comparative studies.
10 Limitations Of The Study
As the research was based on a predominantly qualitative approach with exploratory
nature, inability to predict the strategic orientation of HR Managers of other
Dharmasiri
17
organizations in South Asia, based on the findings of this research, could be stated
as a limitation.
Accordingly, selection of a larger sample with organizations representing all the
major industries will be useful for a better understanding of the strategic orientation
of HR Managers in South Asia.
Impact of national culture on the firm performance was not considered in this study.
Differences emerged from the data in relation to four Commercial Banks could have
been analyzed with inferences to cultural dimensions such as those recommended
by Hofstede (1991).
11 Recommendations
Based on the findings of the research, following recommendations can be made, for
the organizations.
11.1 Strategic Involvement of HR
It needs to be ensured that the HR Manager is involved in the strategic decision
making process of the organization. This may translated into several key actions
such as:
i. Encouraging the HR Managers involvement in cross functional teams tackling
strategic issues
ii. Presence in top team in providing people related information on issues and
implications of decisions.
iii. Coaching element of HR Manager where he/she acts as the internal consultant in
advising the line managers on HR matters, with the premise that “all managers
should be HR Managers”.
iv. Regular meetings between the CEO and the HR Manager, in discussing key
people matters affecting the business.
11.2 Strategic Alignment of HR
It also needs to be ensured that that HR policies and practices are aligned to the
organizational strategic direction, and are reflective of organization’s long term
goals.
This should be practically approached as:
i. HR Manager is well updated on the strategic direction of the organizations, with
regular reference to organizational documents, meeting minutes and discussions.
ii. Devise a checklist for HR initiatives to ascertain the strategic alignment, and
apply it in case of every new HR initiative.
iii. Cultivate the practice of connecting the HR actions with the broad organizational
objectives, especially with the HR Manager leading by example in grooming the
HR team.
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18
11.3 Strategic Contribution of HR
It needs to be ensured that HR function, and particularly the Head of HR is
accountable for people- related strategic matters and thus should achieved agreed
targets. Quantification of targets with appropriate matrix will be a perquisite for this.
In executing the key tasks, the following practical actions need attention:
i. Appropriate usage of strategic results tracking tool such as Balanced Score
Card, with emphasis on people related parameters.
ii. More focused HR scorecard, representing HR strategies, objectives, initiatives
and action plans should be in place.
iii. Regular review of strategic contribution of HR team and communicating the
results to all concerned should be given priority. Such reviews may also act as
“course correction” opportunities.
Considering the HR Manager as an individual, the following recommendations can
be made based on the findings of the research.
11.4 Upgrading Competencies of HR Managers
HR Manager can not survive in an increasingly changing business environment
without regularly enhancing his/her knowledge and skills with desired attitude.
Some possible actions are:
i. Be in touch with current research done on HR, with understanding and
applications where relevant and possible
ii. Embark on development programs such as short courses on diverse aspects, not
only in HR but also in relation to business as a whole.
iii. Think and act with more business sense, with greater understanding on
business, by way of being in touch with the rest of the organization as well as the
outside world
11.5 Exploring Opportunities for HR Managers
Professional networking by means of active membership in organizations related to
HR is becoming increasingly important.
Some possible practical actions in this direction are:
i. Becoming a member of already existing HR body, such as Institute of Human
Resource Management
ii. Form new bodies to establish greater cooperation related to common issues,
despite organizations competing with each other. All HR Managers in banks
getting together in one forum to discuss common people issues is one such
example.
Dharmasiri
19
iii. Facilitating activities involving more than one organization in line with CSR
initiatives, with a clear understanding of the community needs.
12 Conclusion
As an overall conclusion of this study, it can be stated that the strategic orientation of
the HR Managers selected from a purposive sample of four high performing
Commercial Banks in Bangladesh, India, Pakistan and Sri Lanka showed a
satisfactory level of strategic orientation, confirming the findings of related studies
done earlier.
It is expected that the findings will contribute to the broadening of the existing
knowledge on the HR Managers in South Asia, with academic, managerial, and
societal implications.
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