Creating human‐resource management value in the twenty‐first century: Seven steps to strategic HR

Abstract

Purpose

The aim of the paper is to discuss specific HR practices that business leaders must embrace to create HR value and competitive advantage for their organizations.

Design/methodology/approach

The paper integrates the authors' previous research on critical HR practices.

Findings

The paper reveals that HR value creation is driven by: progressive HR thinking and planning; staffing for success; talent development; results‐orientated performance management and appraisal systems; aligned compensation and incentive systems; line‐managers acting as HR managers; and fostering an ethical culture.

Practical implications

The paper discusses specific practices directly related to improving an organization's ability to create competitive advantage through its people.

Social implications

The paper contends that better HR practices lead to stronger organizational performance and greater use of human‐resource assets.

Originality/value

The paper reinforces the importance of taking HR beyond administrative activity.

Citation

Longenecker, C.O. and Fink, L.S. (2013), "Creating human‐resource management value in the twenty‐first century: Seven steps to strategic HR", Human Resource Management International Digest, Vol. 21 No. 2, pp. 29-32. https://doi.org/10.1108/09670731311306814