Introduction
It is challenging to overestimate the significance of people for any organization. This statement equally refers to executives who develop strategies and make decisions and ordinary employees who work to ensure that managers’ plans can be implemented. That is why organizations and chief executive officers (CEOs) should draw significant attention to how they manage people. This statement denotes that chief human resource officers (CHROs) are of key importance when it comes to achieving success. The article by Charan, Barton, and Carey (2015) focuses on this issue, while the authors stipulate that the human resource (HR) function should meet specific changes to meet the current and future requirements. Improvements are needed to ensure that organizations will be able to create value and overcome their competitors. Thus, the current report will use the article above as a guide to predict the future of the HR profession and analyze how effectively its content addresses HR issues.
The Future of the HR Profession
As with everything in the world, the HR sphere changes and adapts to various external and internal processes. That is why it is possible to rely on expert opinions to predict what the HR profession will be in the future. A Deloitte article by Mazor and Stephan (2022, para. 5) suggests that the length of careers will rise to as much as 50 years. This statement denotes that HR managers should find ways to cooperate with and lead middle and old-aged individuals. Simultaneously, Komm et al. (2021, para. 46) anticipate the focus on more specific practices, including “mapping talent to value, making the workforce more flexible, prioritizing strategic workforce planning, performance management, and reskilling,” and other issues. While many changes are possible, it is reasonable to utilize a comprehensive approach to predicting the future.
PESTEL Analysis
In the beginning, it is worth admitting that the PESTEL analysis is a useful instrument. This tool is effective when it is necessary to cope with strategic planning and development (Hardy, 2022, para. 2). The given acronym stands for political, economic, sociological, technological, environmental, and legal factors that can affect some processes and phenomena. Thus, it is possible to rely on the PESTEL analysis to predict the future of the HR profession to identify the global impact and threats.
From a political point of view, it is reasonable to expect that globalization processes will become even more powerful. They are expected to result in many laws and legal requirements for CHROs. For example, it seems rational that future employment regulations will promote diversity and equality more actively. Consequently, future HR managers will be forced to make hiring decisions based on candidates’ skills and personal features and traits.
The economic sphere is also going to witness some changes. According to the report by Deloitte (2021, p. 8), the near future will be characterized by “economic growth and easy access to capital.” As a result, CHROs will be loaded with more tasks because they will need to ensure that developing businesses and organizations obtain a sufficient number of talented and skillful individuals. In other words, economic growth will provide HR managers with more work, denoting a higher supply of these professionals will be needed.
From a sociological perspective, people in the future will be more empowered and will have more opportunities to grow. These processes are in line with promoted equality and diversity discussed above. Furthermore, Stone and Deadrick (2015, p. 143) say that future HR managers will have to spend more time in social media, chat rooms, and various cloud computing services. This statement refers to the fact that people keep increasing the time that they spend online, and the HR function will have to meet this fact.
In addition to that, technological solutions will provide HR managers with advantages and disadvantages. On the one hand, these innovations and analytical instruments can facilitate decision-making by analyzing candidates and predicting their performance through automation solutions (Milligan, 2018, para. 5). Yi et al. (2020, p. 131140) also stipulate that blockchain technology will result in various benefits in the spheres of hiring and workforce management. On the other hand, new technology will be a challenge because CHRO will have another requirement that they will need to satisfy. This fact will make HR performance even more complicated for individuals.
It is also reasonable to consider the impact of environmental issues. Many efforts are currently devoted to protecting nature and minimizing the harmful influence on it, meaning that the future will follow the same trend. In the HR function, professionals “will have to support in pushing through an environmentally friendly agenda to align with society as a whole” (Penny, 2021, para. 67). Consequently, CHROs will have to promote corporate and individual behaviors that will be harmless to the environment.
The legal area will be connected to the previously described sphere. The rationale behind this statement is that a green world will be a legal requirement in the near future (PwC, 2021, p. 23). This suggestion demonstrates that CHROs will have to find and recruit individuals that will help organizations facilitate natural values. Consequently, HR managers will have a few additional requirements that should be satisfied in their future workplace.
Healthcare Industry: Managing the Systemic Impacts Globally
The current section focuses on how the healthcare industry approaches the issue of human resource management (HRM). This sector was selected because various medical professionals work directly with patients, meaning that the outcomes of this interaction can significantly affect whether the organization can achieve its strategic goals. That is why it is reasonable to consider how international medical establishments and healthcare workers apply HR practices to reach positive results in the People, Processes, Products, and Profits areas.
Firstly, it is reasonable to look at the People sphere because individuals represent the most significant asset of every healthcare organization. This statement denotes that attention should be drawn to what practices and strategies are used to find and recruit the needed individuals. Currently, many hospitals and other organizations are considering green hiring practices. This term stands for an effective approach that “focuses on the importance of establishing a workforce that is interested in environmental issues” (Mousa and Othman, 2020, p. 118595). According to this quotation, many healthcare institutions across the globe understand their corporate social responsibility and try to ensure that their workforce shares this value. In addition to that, existing hiring practices draw significant attention to diversity. According to Serafini et al. (2020, p. 282), many organizations currently promote approaches that aim to accumulate a more diverse workforce. Fong (2020, p. 1) also adds that globalization results in multicultural workforces in any organization, meaning that management should allocate appropriate talent acquisition and development strategies. This evidence reveals that healthcare establishments try to ensure that their HR practices try to manage their people effectively.
Secondly, the Processes sphere focuses on what specific measures are implemented to deal with HRM. In other words, this paragraph draws attention to what interventions are utilized by healthcare organizations. Various training programs exist, and medical institutions do their best to rely on effective options. For example, a significant approach is to change an organizational design, which implies “redesigning structures to stimulate team processes and team functioning” (Buljac-Samardzic, Doekhie and van Wijngaarden, 2020, p. 1). This information demonstrates that some organizations can modify their organizational designs to make HR practices better and more efficient. Simultaneously, Pinzone et al. (2019) stipulate that the focus on green practices is also significant in the given area. Green training motivates employees to engage in pro-environmental behaviors voluntarily, which is beneficial for organizations (Pinzone et al., 2019, p. 221). Individuals also face some benefits because green training leads to increased satisfaction with job conditions (Pinzone et al., 2019, p. 221). Thus, it is evident that healthcare organizations promote versatile and effective processes to improve HRM.
Thirdly, it is rational to analyze the connection between HRM and the Product sphere. It is worth admitting that healthcare is a service industry, meaning that it is necessary to consider how effectively the field delivers services to patients. Jacob, Manalel, and Minimol (2020, p. 1) mention that service quality “is determined by the quality of staff interactions with patients.” Consequently, healthcare organizations should implement specific HR practices to improve this quality. Promoting reward and recognition, teamwork, and career planning are examples of suitable interventions (Jacob, Manalel and Minimol, 2020, p. 2). Numerous researchers focus on this issue, admitting its importance. Mashhady, Khalili, and Sameti (2021, p. 459) stipulate that appropriate HR practices are needed because they can contribute to organizational support, leader-member exchange, reduced conflict, and other benefits. That is why it is not surprising that medical institutions typically draw much attention to developing their HRM approaches. One should add that improvements should be brought to the motivation-enhancing, skills-enhancing, and empowerment-enhancing spheres (Gile, Buljac-Samardzic and Van De Klundert, 2018, p. 1). These areas can directly impact how effective healthcare services are.
Fourthly, it is essential to focus on the Profits area and consider what specific benefits can be achieved with the help of appropriate HR practices. At present, many healthcare organizations rely on technologies and innovations to improve their performance and HRM. For example, the implementation of the Internet of Things can help these institutions manage their human resources better, which can result in the reduction of patient waiting time and the optimization of health outcomes (Oueida et al., 2018, p. 4307). Other institutions rely on Big Data analytics that can “improve clinical care and streamline public health surveillance” (Pastorino et al., 2019, p. 23). This quotation demonstrates that the suggested innovative solution can generate essential benefits for medical organizations. Furthermore, some experts admit that green HRM practices contribute to the spread of altruism and empathy, ensuring that employees contribute to generating benefits for the entire organization (Chams and García-Blandón, 2019, p. 119). Consequently, it is challenging to deny that sound HRM practices can provide healthcare organizations with numerous advantages.
The findings above demonstrate that the global healthcare industry utilizes a systemic approach to HRM. Evidence from scholarly and peer-reviewed articles has demonstrated that a comprehensive approach to the HR function results in essential benefits for the entire medical industry and individual establishments. The rationale behind this statement is that such improvements impact whether healthcare professionals understand strategic goals and how they interact with patients. That is why hospitals and other institutions tend to rely on appropriate HRM practices and interventions, including teamwork promotion, reward systems, innovations, and other solutions. The combination of all these approaches allows for concluding that sufficient attention is devoted to HRM in the healthcare industry.
Justifying the HR Role
Specific attention should be devoted to the fact that the HR role justifies itself wince it can be aligned with the business strategy and bottom line. This statement denotes that CHROs should perfectly understand an organization’s strategic planning and ensure that the HR performance corresponds to the stipulated goals. In particular, a PwC report demonstrates that the HR role is essential for a company because the former contributes to value-adding by promoting talent and leadership (Zawya, 2022, para. 2). HR teams should improve their activity and rely on technology and artificial intelligence solutions to maximize the chances of making optimal decisions (Zawya, 2022, para. 3). That is why it is necessary to ensure that CHROs understand the company’s strategy and do their best to help implement them.
In addition to that, it is reasonable to consider what various scholars state about the issue under analysis. On the one hand, a strategy is defined as “a coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy, often underpinned by a philosophy” (Paauwe and Boon, 2018, p. 50). This quotation demonstrates that when organizations develop their strategies, they should admit the fact that employees will contribute to achieving the stipulated goals. That is why companies need to develop HR functions that can find the necessary individuals and ensure that current employees correspond to the existing requirements. It is possible to expect that the effective performance of CHROs can bring many positive outcomes for the entire business. This result can occur when different divisions of a single company make an effort to achieve shared goals.
On the other hand, it can be useful to find a study that would directly emphasize the benefits of alignment between the HR function and a company’s business strategy. The article by Glaister et al. (2018) is a perfect choice in this case. It is worth admitting that these researchers evidently state that the alignment described above increases firm performance and outcomes (Glaister et al., 2018, p. 148). One can suggest that this positive result is achieved here because CHROs clearly understand what results should be reached. In this case, these professionals can mobilize their skills and competencies to ensure that all employees are sufficiently motivated and that specific tasks are allocated to the correct individuals. All this information demonstrates that it is challenging to overestimate the HR role, especially when it is aligned with the business strategy and bottom line, because this strategy leads to successful outcomes.
Cost-Benefit Analysis
When an initiative or new program is offered, it is often reasonable to determine whether the suggestion is feasible and worth attention. The cost-benefit analysis seems a helpful solution because it demonstrates whether potential benefits can outweigh the costs and efforts that were needed to have the program implemented. That is why useful data can be obtained from performing the cost-benefit analysis regarding the article under analysis.
In the beginning, it is necessary to identify what costs are implied in the given business case. As mentioned in the article, Charan, Barton, and Carey (2015) stipulate that CHROs should have sufficient skills and competencies to predict outcomes, diagnose problems, and prescribe actions. Simultaneously, these professionals should establish solid contact with the company’s CEO and chief financial officer (CFO) (Charan, Barton and Carey, 2015, p. 8). It is impossible to mention that the stipulated steps require many financial resources. However, some expenses are needed to find the best CHROs or organize specific training to improve the skills of the existing professionals. However, significant physical and mental efforts are needed to reformat the existing HR practices and establish a triumvirate of CHRO, CEO, and CFO.
At the given point, it is possible to analyze potential benefits. According to Charan, Barton, and Carey (2015, p. 9), the suggested approach is positive because it facilitates the understanding of the business and its problems. That is why the management team can find the most suitable solution to arising problems. However, the selected article is not the only resource that highlights the benefits of HR modifications. Zakaria and Ali (2021, p. 797) mention that good HR practices reduce hidden costs of a business and improve overall performance. This statement denotes that organization can achieve better outcomes with the help of facilitated HR management. Simultaneously, Jiang, Li, and Zhou (2018, p. 1) indicate that the HR function can cut expenses and promote management efficiency. That is why sufficient evidence demonstrates that many improvements are expected if facilitated HR practices are implemented. This information makes it clear that the cost-benefit analysis clearly advocates for the changes discussed in the article.
Article Critique
Now, it is reasonable to consider how the article under analysis is aligned with existing knowledge. One should begin by reminding the most significant aspects of the paper. A leading message is that CHROs should develop specific competencies, including predicting outcomes, diagnosing problems, and prescribing actions to maximize value (Charan, Barton and Carey, 2015). The authors also highlight that CHROs should avoid dealing with rewards and compensations because CFOs should be responsible (Charan, Barton and Carey, 2015, p. 7). Finally, Charan, Barton, and Carey (2015, p. 10) stipulate that there should be regular meetings between the CEO, CHRO, and CFO because the three should combine their efforts to ensure that all processes are aimed at achieving strategic goals. All these steps can provide organizations with better opportunities regarding talent acquisition and development, employee retention, and engagement.
That is why it is now essential to identify what article concepts and aspects were properly addressed when compared to the current research field. In particular, Charan, Barton, and Carey (2015) were not the only researchers who focused on the necessity to promote collaboration among CEO, CHRO, and CFO. Allas, Chambers, and Welchman (2019, p. 7) admit that the CFO and CHRO should be involved in strategic decision-making because these professionals are well familiar with how well finances and employees are managed. In other words, the idea that decision-making should not be given to a single CEO is not new.
However, the given article evidently highlights the importance of G3 collaboration. According to Charan, Barton, and Carey (2015, p. 10), the three top managers should engage in regular weekly and monthly meetings to ensure that they can timely identify and respond to current and upcoming challenges. One should admit that this suggestion is not unique either. An article by Singh (2020) called “C-Suite Collaboration between G3’ Team – CEO, CFO, CHRO” also emphasizes the importance of this phenomenon. According to the author, a bit more than 10% of CEOs and CFOs consider CHROs equal executives that can bring essential information regarding firms’ performance (Singh, 2020, para. 4). That is why this situation should be changed because C-suite executives “incorporate collaboration and teamwork into daily routines, prioritizing interactions, information sharing, and real-time decision making across functions (Singh, 2020, para. 13). This information demonstrates that the article by Charan, Barton, and Carey (2015) adequately focuses on the essential concept. Thus, there is no doubt that this paper is aligned with the existing literature findings.
The selected article is also similar to other scholars in that CHROs should be future-oriented. According to the source by the Harvard Business Review (2019, para. 5), these professionals should have appropriate skills to forecast the future of enterprise, workforce, and how work gets done. This statement implies that CHROs should be able to anticipate future challenges and manage the workforce appropriately. A similar idea is raised in the case study article when Charan, Barton, and Carey (2015, p. 4) admit that CHROs should predict outcomes. Consequently, there are a few correlations between the selected study and the research field.
However, it is also possible to comment on a few aspects that were not properly covered in the case study article. The following concepts either received little attention or were ignored at all. Firstly, Whysall, Owtram, and Brittain (2019, p. 118) stipulate that there is a gap between employees’ capabilities and the requirements of their roles. Even if CHROs correctly perform all their obligations, there is still a possibility that their subordinates do not have sufficient skills to perform their functions without problems. Secondly, one should not ignore the fact that organizations are subject to political, social, and economic issues (Farndale et al., 2019, p. 465). This finding demonstrates that it is not reasonable to analyze or comment on the performance of the HR function in isolation and without consideration of such external processes.
Thirdly, the article under review failed to focus on the composition of the workforce. Many scholarly articles admit that diversity, inclusion, and equality are essential concepts today (Friedman, 2021, para. 8). All these three practices should be actively implemented by modern CHROs because such human values make the workforce better and more representative. Finally, one can admit that capacity is often underestimated, but this concept implies that CHROs should “deliver the core basics and the experience, purpose, hybrid working, and automation agendas” (Patmore and Sloan, 2021, para. 5). This quotation reveals that it can occur that such executives do not have the required skills, competencies, and capacity to meet many expectations. Thus, it is necessary not to ignore a human factor.
In addition to that, it is necessary to analyze a contrasting article to identify a different viewpoint. Ellinger and Svendsen (2021, p. 14) focus on human resource planning and stipulate that this only phenomenon can positively affect organizational performance. These researchers offer limited insight into the issue because they look at the link between outcomes and talent development as well as hiring practices (Ellinger and Svendsen, 2021, p. 14). Even though some positive consequences are identified, it is impossible to guarantee that they are long-term effects. Furthermore, these scholars do not focus on whether HRM requires the involvement of other managers. That is why the article by Charan, Barton, and Carey (2015) offers a more comprehensive approach because the authors focus on long-term consequences and admit the importance of collaboration among many executives. These findings prove that the case study article offers valuable information.
Addressing the Acumens of HR
The current paper focuses on the four acumens of HR. They are the CEO buy-in, competency of HR, culture of the business, and commercial acumen. Some of them were addressed in the article, while others did not receive adequate attention. That is why it is necessary to identify what other scholars state on these acumens and comment on whether the case study article treats them adequately.
On the one hand, it is reasonable to comment on those acumens that were addressed in the article. Firstly, CEO buy-in is an essential phenomenon that can positively affect employees and organizations. This term implies that a CEO is actively engaged and interested in processes that affect individuals and business operations. In particular, Maor, Reich, and Yocarini (2017, para. 5) stipulate that the CEO buy-in is critical when it comes to transformation. Thus, the case study article also addresses the importance of this acumen. The authors begin their paper by stipulating that it is a CEO’s responsibility to engage the CFO and CHRO in decision-making to produce optimal outcomes (Charan, Barton and Carey, 2015, p. 3). This information demonstrates that the article under analysis clearly stipulates that a CEO buy-in can lead to positive outcomes.
Secondly, it is impossible to deny that the case study article draws sufficient attention to the competency of HR. It has already been mentioned that Charan, Barton, and Carey (2015) explicitly comment on specific skills and competencies, including predicting outcomes, diagnosing problems, and prescribing actions to maximize value. This evidence reveals what steps and actions CHROs should take to increase their efficiency. Simultaneously, it is reasonable to identify what other experts state about HR competencies. An article by Champlain College seems a suitable resource because the author enumerates many required competencies. In particular, they are leadership skills, strategic thinking, and planning (Krakoff, 2022). These findings demonstrate that there is a consensus between the case study article and the research field.
Thirdly, the selected study commented on the commercial acumen of HR. The author indicated that CHROs should not have engaged in compensation and benefits allocation (Charan, Barton and Carey, 2015, p. 7). The rationale behind this statement was that these responsibilities should have been delegated to CFOs or should have become a shared task for HR, finance, and IT professionals (Charan, Barton and Carey, 2015, p. 7). However, this suggestion is in conflict with existing knowledge because the study by Chams and García-Blandón (2019, p. 111) indicates that HR managers should deal with financial and economic data. Commenting on the reasons behind this difference is beyond the scope of the current project, meaning that it is sufficient to admit that the commercial acumen was addressed.
On the other hand, the remaining acumen did not receive adequate attention in the paper under review. As for the culture of a business, it is not reasonable to ignore this phenomenon. Paais and Pattiruhu (2020, p. 578) clarify that organizational culture is “a set of underlying assumptions and beliefs held by the organization’s employees.” Consequently, every business relies on specific behaviors and values that impact interpersonal relationships. Some organizational cultures can be suitable for productive HR practices, while others may act as barriers. For example, when an organizational culture stipulates that a manager’s decisions may not be questioned or criticized by their subordinates, employees’ motivation and engagement will be low. That is why it is not relevant to ignore the impact of organizational culture while considering HRM effectiveness.
The Role of HR Pre and Post-Pandemic
The COVID-19 pandemic has become one of the most dramatic crises recently. That is why there is no doubt that the event significantly affected the HR sphere. Thus, it is reasonable to consider how HR processes were organized pre-pandemic to identify what changes were implemented. In the beginning, traditional HRM is defined as “planned human resource deployments and activities intended to enable the firm and achieve its goals” (Collings et al., 2021, p. 1). According to Binoy and Walarine (2021, p. 105), HRM was mainly completed on-site, meaning that there was one-to-one contact between a manager and every employee. Since CHROs maintained direct and everyday contact with the workforce, they could easily assess their performance, affect it, and make decisions. Thus, a CHRO is a person seated in the C suite, who is always present and oversees subordinates’ activities.
When the crisis arrived, some changes were needed to ensure that the HR function could be implemented under the new conditions. As a rule, organizations were forced to “rethink their HRM strategies and to go beyond the traditional models of managing human resources, by positioning new information technology as an essential partner” (Hamouche, 2021, p. 10). As a result, many businesses rely on remote work to promote business operations and abide by anti-coronavirus recommendations. Employees obtained an opportunity to stay at home and complete their duties online. That approach provided HR managers with additional challenges because they lost their everyday physical contact with workers. Thus, CHROs were then forced to find new instruments and strategies to assess employees and make correct hiring, promotion, and remuneration decisions.
However, it is worth admitting that the COVID-19 pandemic and remote working brought many adverse consequences. On the one hand, the crisis was harmful to employees’ mental health because it resulted in stress, fear of losing a job, and other problems (Fong and Tripathi, 2021, p. 1743). On the other hand, remote working should not be considered a panacea. According to Gigauri (2020, p. 8), this approach can significantly harm employees’ work-life balance, meaning that it will be difficult for individuals to allocate time to life issues and performing job duties. That is why HR managers are forced to help these individuals organize space and schedules so that they can meet professional expectations and have sufficient private lives (Gigauri, 2020, p. 8). Consequently, it is impossible to deny that the pandemic resulted in significant challenges for the HRM sphere.
It is also worth admitting that the COVID-19 crisis emphasized the role of some HR practices for managers. In particular, Azizi et al. (2021, p. e07233) stipulate that the pandemic increased the importance of flexibility, talent acquisition, and innovative solutions. This statement denotes that CHROs are now forced to find new efficient ways to cope with traditional tasks. Consequently, it is impossible to ignore the fact that the HR role has changed and is dynamically evolving.
The Relevance of the Article
Since the case study article was written in 2015, it is reasonable to consider whether it is still relevant today. It is possible to suggest that the article is outdated because it emerged seven years ago, and many changes have taken place over this time. For example, the COVID-19 pandemic impacted the entire world, meaning that concepts that had arrived pre-pandemic lost their relevance. As has been mentioned above, the coronavirus resulted in many challenges, and the HRM sphere was forced to adapt to the new conditions, meaning that new practices and approaches were developed.
However, it is worth admitting that the case study article did not offer any time-specific practices. Reconsideration of the CHRO’s role and the emphasis on G3 collaboration are the phenomena that are valued under any conditions. These suggestions are still significant today because it does not matter whether managers attend offices or work from their homes. Moreover, Charan, Barton, and Carey (2015, p. 10) explicitly mention that the CEO, CHRO, and CFO do not have to meet physically to analyze their organization and make decisions. That is why it is evident that the article is relevant in 2022.
Recommendation and Consideration
The report has analyzed the case study article and produced some valuable conclusions regarding the human resource management area. According to Charan, Barton, and Carey (2015), organizations should reconsider their approach to defining the role of chief human resource officers. Firms and companies should ensure that these professionals deal with predicting outcomes, diagnosing problems, and prescribing actions to maximize value (Charan, Barton and Carey, 2015). Simultaneously, a significant recommendation is to establish close and systematic relationships between the chief executive, chief human resource, and chief financial officers. These professionals are responsible for the strategic development of organizations, meaning that they should meet to discuss whether and how they can achieve planned goals. These pieces of advice were relevant pre-pandemic and remain in force today because the crisis brought many challenges but did not change how the human resource management sphere worked.
In addition to that, it is possible to rely on the case study article to consider the future of the human resource profession and make some assumptions. It is reasonable to expect a higher role of technology and innovations in the given field. Human resource managers will actively use blockchain, artificial intelligence, and other solutions to make hiring, promotion, and assessment decisions automatically. That is why organizations should currently invest in these technologies to ensure that they will get a competitive advantage in the future. Simultaneously, it is also essential to consider human affairs, including the fact that diversity will be welcomed. Thus, businesses should make efforts to promote equality, inclusion, and multicultural values in the workforce.
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