Strategic Human Resources Management - Air …

1 Office of Personnel ManagementOffice of Merit Systems Oversight and EffectivenessStrategic Human Resources Management :Aligning with the MissionSeptember 1999 This page intentionally left Human Resources Management :ALIGNING WITH THE MISSIONC ontentsExecutive is Alignment?..1 Why Align?..1 The Strategic Integration in Agency Strategic HRM Strategic HR Involvement in Agency Strategic Annual Performance Strategic Strategic HRM Strategic HR and Top Agency HR Office and Line Where Do We Go From Here?.. A - Non-Federal Public B - HRM Alignment page intentionally left Office of Personnel ManagementPage iEXECUTIVE SUMMARYH uman Resources alignment means integrating decisions about people with decisions about theresults an organization is trying to obtain.

2 By integrating Human Resources Management (HRM)into the agency planning process, emphasizing Human Resources (HR) activities that support broadagency mission goals, and building a strong relationship between HR and Management , agenciesare able to ensure that the Management of Human Resources contributes to missionaccomplishment and that managers are held accountable for their HRM decisions. This isespecially important in light of the Government Performance and Results Act s (GPRA) push toalign all agency activities, including HRM, toward achieving defined agency Strategic goals andmeasuring progress toward those goals.

3 In fiscal year 1999, the Office of Personnel Management (OPM) embarked on a special studyto determine how much progress Federal agencies have made toward aligning HRM with agencystrategic goals in support of HRM accountability and agency mission accomplishment. Our keyfindings and conclusions are summarized as more agencies than expected include HR representatives in the agency planning processand integrate Human Resources Management goals, objectives, and strategies into agencystrategic plans. However, most agencies are still struggling in this area. Therefore, agencyexecutives and HR leaders need to work together to fully integrate HRM into the planningprocess so that it will become a fundamental, contributing factor to agency planning some agency HR offices have begun focusing on organizational activities that assistagency decision-making, most are still emphasizing internal HR office efficiency efforts.

4 Whileinternal issues are important to the success of any HR program, HR offices also need toexamine the big picture and find ways to impact the success of the agency as a whole. CMost agencies are in some way measuring the efficiency and/or effectiveness of the HRfunction. These measures, however, are generally output-oriented, focus on internal HRprocesses and activities, and are used to make improvements to HR-specific policies andprocedures. As HR refocuses its activities to broader organizational issues, HRM measuresalso need to be expanded to gauge the impact HRM has on agency goals and mission. Then,the measurement data can be used to inform agency-level decisions.

5 Executive Office of Personnel ManagementPage iiCThe relationship between HR and Management is becoming more collaborative. HR executivesare beginning to earn a seat at the Management table. HR offices are becoming moreconsultative and involved in day-to-day line Management activities. Nevertheless, there is stilla long way to go if HR is to become a Strategic partner at all levels. To do so, HR needs tobuild its own internal competencies to deal with organizational issues, educate itself on agencyand program missions, and find ways to offer creative and innovative solutions toorganizationwide issues. Although many National Performance Review (now known as the National Partnership forReinventing Government) initiatives, such as downsizing, reorganizing, streamlining, anddelegating HR authorities, were meant to improve HR s ability to focus on organizational issues,they have not taken hold as quickly or thoroughly as hoped.

6 Therefore, HR is still doing most ofthe process work, and its ability to focus on alignment has been limited. However, as HR s role inagency planning, activities, and decision-making advances -- and it is advancing -- so too will thealignment of Human Resources Management with agency mission accomplishment. Legal ComplianceEfficient HR ProcessesEffective HRM ProgramsAlignment with StrategicGoals of theOrganizationFor consistency s sake, this report uses the term agency when referring to the broadest form of the Federal1organization. For instance, the Department of Agriculture, along with all its components, is an agency.

7 Whenaddressing specific components within an agency, the report will refer to them as sub-components. Office of Personnel ManagementPage 1I. INTRODUCTIONH ierarchy of AccountabilityA company is known by the people it keeps. - UnknownWhat is Alignment? Strategic Human Resources with mission accom-plishment. These are just a few of the terms being used to describe the new, evolving role ofFederal Human Resources Management (HRM). What do these terms really mean? If you were toask agency personnelists, managers, or employees, you would probably get a wide range ofanswers. So, it s important to establish from the beginning what we are really talking about.

8 Human Resources Management alignment means to integrate decisions about people withdecisions about the results an organization is trying to obtain. Our research indicates thatagencies that successfully align Human Resources Management with agency missionaccomplishment do so by integrating HRM into the agency planning process, emphasizing HRactivities that support mission goals, and building strong HR/ Management relationships. 1In addition to being a vital contributor toagency mission accomplishment, HRMalignment is the ultimate level of HRMaccountability, as demonstrated in theHierarchy of Accountability. While HRMaccountability must begin with basic legalcompliance, it ultimately encompasses all fourlevels of the pyramid, including demonstratinghow HRM supports achievement of theagency Strategic goals.

9 Why Align?Why the sudden emphasis on aligning HRM activities with agency mission accomplishment? Basically, it comes down to demonstrating the value of Human Resources Management to theIntroductionNow known as the National Partnership for Reinventing General Accounting Office. Major Management Challenges and Program Risks: A Office of Personnel ManagementPage 2agency. In the past, one of HR s primary roles has been to ensure compliance with laws, rules,and regulations. Although this is still, and will always be, a necessary function, many recentdevelopments have led to a strong emphasis on results. The National Performance Review (NPR) took on the task of reinventing government to make it2work better, cost less, and get results.

10 NPR mandated many initiatives that changed the focus ofHR from just compliance toward results, including downsizing the HR function, delegating HRauthorities to line managers, calling for HR to demonstrate its business value, and enhancingcustomer service. Through these initiatives, Management of Human Resources would becomemore responsive to mission-related needs because it would take place at the line level, and the HRstaff would be able to expend more of its energy on broader organizational issues. The Government Performance and Results Act (GPRA) of 1993 has also played a large part infocusing agencies on results.