SUMMARY OF “The New Mandate of Human Resources” by Dave Ulrich

In this article, the writer, Dave Ulrich has put forth his views on how the role of the Human
Resources Department is underestimated in an organisational setup and how HR needs to be defined
not by what it does but by what it delivers. He gives his views through this article, describing the
challenges that HR faces and subsequently outlines step-wise processes to bring about a challenge in
the way it works. Dave Ulrich says that the basic purpose of HR is to achieve organizational
efficiency. . He believes it is important to create a new role for the field that focuses not on
conventional HR activities, such as staffing and compensation but on business activities that enrich
the company's value to customers, investors, and employees. Dave emphasizes that the role of HR
should be based on Organisational functions rather than focussing only on the fundamental issues.
As Organisations are facing challenges like Globalization, Technology, Profitability, Intellectual
Capital, etc Dave felt that the need for a competitive HR was more than ever in today’s business
scenario. He elaborates on four broad tasks for HR that would allow it to help deliver organizational
excellence.
First Mandate: Strategic Partners
In the article, Dave says that HR should become strategic partners with the top management of the
organisation so that strategic implementation can take place effectively. The author emphasizes
about the roles of HR in strategy execution. Firstly, HR should be responsible for defining
organizational architecture by using various models like Galbraith’s star model, McKinsey and
company’s 7-s framework. Second, HR must be accountable for conducting an organizational audit.
In this the author creates a framework based on questions on different criteria like shared mind-set,
competence, consequence, governance, capacity for change, leadership. For each question rating on
the scale 1-10, description on best practices and the gap are provide as answers and then the
framework is analysed to do the audit. Third, HR should propose, create and debate best practices in
culture change programs. Fourth, HR should take stock of its own work and set clear priorities. HR
should collaborate with operating managers to assess the impact and importance of each of the
initiatives.
Second Mandate: Administrative Efficiency
Dave says that the demand for administrative efficiency from the Human Resources Department is
important. Administrative efficiency refers to increasing revenues and reducing costs of an
organisation done in a way such that the quality is not compromised. It also means that the processes
involved are performed in a way that is better, faster, and cheaper.
Third Mandate: Become a Role Model for Employees
Dave believes that organizations cannot succeed until and unless the employees are sincerely
engaged in their work and the responsibilities entrusted to them. Thus HR has to work towards
raising employees’ satisfaction levels, finding out factors that lead to low morale, and making sure
that they are removed. Keeping the employees motivated is what companies today need to focus on.
Companies have started to adopt new methods to achieve this - like work-life balance, flextime, and
work from home. For example – employees are made to play fun games, team lunch is organised,
employees are asked to wear informal wear on one day of the week to raise the satisfaction levels of
the employees.
Fourth Mandate: Become an Agent of Change
In the article, Dave mentions that the Human Resource department is expected to become an agent
that modifies, improves, and transforms the organizational structure, culture, and design of an
organisation so that further processes can take place without any difficulty. It means that it is the
HR’s duty to keep up with the new changes that the world is going through. They should be updated
regularly to deliver results.
Fulfilling this agenda would mean that every one of HR’s activities would in some concrete way help
a company better serve its customers or otherwise increase shareholder value. Can HR transform
itself on its own? Certainly not, in fact, the primary responsibility for transforming the role of HR,
Ulrich says belong to the CEO and to every line manager who works with the HR staff. Competitive
success is a function of organizational excellence, and senior managers must hold HR accountable
for delivering it.
The following are the four ways through which senior operating managers can create an era where
HR is focused on outcomes rather than activities.
1. Communicate to the organization that the “soft stuff” matters – For HR to be taken
seriously, the senior managers would have to demonstrate that they believe typical HR issues
such as culture change, intellectual capital are critical to business success.
2. Explicitly define the deliverables form HR, and hold HR accountable for results – The
new mandate requires the senior managers to define specific goals for HR and communicate
what is expected form HR. A company has better chance of succeeding in its endeavours if
HR is included and deliverables are expected from HR and HR should be held accountable
for results.
3. Invest in innovative HR practices – If HR practices are innovative then investing in HR
practices is a good idea. The results may not be readily out but over a period of time the
effects can be felt. The focus of investment on new HR practices should be on how a new
practice would work in company’s unique competitive situation.
4. Upgrade HR professionals – Quality of HR staff should be improved. HR should know the
business, they should have some knowledge about business processes, HR practices and
should be innovative in approach.
In the end the author emphasizes about the tough path ahead and the onus is on HR. They must focus
on deliverables, create value and in turn increase shareholder’s value.
In this article, the author makes a pitch for a new role to be given to the HR department – one that
involves playing a part in shaping business strategy and requires HR managers to be more involved
in helping the organization achieve excellence. He gives rare insights into the innovative practices of
HR professionals in successful companies and creates benchmark wherever necessary. The article is
written in a structured and lucid manner and is very clear regarding the new role that HR can play in
shapping a successful future for an organization. Overall, A New Mandate for Human Resources is
an extremely insightful article and gets its readers thinking about a possible new and improved re-
birth for the HR function.