Strategic HR

HR is more outward looking than before

Q. How has the discipline of HR changed in the past decade? What drove those changes?
A. There are three important changes that have occurred in the HR field. The first shift for HR professionals is to look outwards rather than inwards to determine the criteria for HR practices. Earlier, HR would look only inside the organization to add value and they have now realized that what happens on the inside will be relevant in the long run only if it responds exactly to the requirements of customers, competitors and capital markets. This shift from the inside to the outside is driven by economic necessity. Every department in the company needs to be oriented around creating value for the customers. HR cannot be the exception. It is not the employees who decide if the company will stay in business, it is the customer who makes the buying decision.
The second is a shift from focusing primarily on optimizing individual talent to optimizing the total organizations. It is not just having individual



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