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Int. J.

of Human Resource Management 16:9 September 2005 1711 1739

The Indian perspective of strategic HR roles


and organizational learning capability

Jyotsna Bhatnagar and Anuradha Sharma


Abstract This study focuses on the empirical analysis of strategic HR roles and
organizational learning capability. Line and HR firm performance is further analysed. The
sample size consisted of 640 managers in India. Standardized questionnaires were used as tools
for the managers perception of the two variables and their link to data collection. Statistical
results indicate that correlation coefficients were mostly significant and positive for the variables
and sub-variables of strategic HR roles and organizational learning capability. Discriminant
functional analysis reflected that line and HR managers differed significantly in their perception
of both variables. Stepwise regression analysis indicated that both the variables of strategic HR
roles and organizational learning capability predict firm performance.
Keywords Strategic HR roles; organizational learning capability; HR vs. line managers;
firm performance; Indian strategic HRM.

Introduction
Research on alignment of HR policies and practices with business strategies has recently
been the focus of management science (Brockbank, 1999; Delery and Doty, 1996;
Devanna et al., 1984; Golden and Ramanujam, 1985; Martell and Caroll, 1995; Truss and
Gratton, 1994; Wright and McMahan, 1992). The interest of strategic management in
examining the role of human resources as value-added has evolved (Baird and Meshoulam,
1988). How Strategic Human Resource Management (SHRM) leads to competitive
advantage, specifically with the resource-based perspective, has been dealt with in research
literature (Barney, 1986, 1991, 1992; Colbert, 2004; Conner, 1991; Fey et al., 2000; Grant
and Baden Fuller, 1995; Reed and DeFillippi, 1990; Schuler and Jackson, 1987; Walker
and Stopper, 2000; Wright and McMahan, 1992). Practitioners and academics are both of
the opinion that in the field of SHRM, learning organization and knowledge
management learning are a central concern in the workplace (Currie and Kerrin, 2003;
Keep and Rainbird, 2000; Thite, 2004; Thurbin, 1995). However, the operating
environments of many public and private sector organizations reflect that the rhetoric is not
even an aspiration, let alone a reflection of practice, and many challenges for HR strategy
are defined (Keep and Rainbird, 2000: 190; Storey and Quintas, 2001; Truss, 2001). The
current study focuses on the relationship of the two variables of strategic HR roles and
organizational learning capability, and whether they predict firms financial performance.
The paper thus has two research aims: first, to examine the theoretical nesting of the
two SHRM dimensions of strategic HR roles and organizational learning capability and
Jyotsna Bhatnagar, Management Development Institute, Sukhrali, Gurgaon, India (tel: 0124
2346760; e-mail jyotsnab@mdi.ac.in). Anuradha Sharma, Department of Humanities and Social
Sciences, Indian Institute of Technology, Hauz Khas, New Delhi, India (tel: 011 26591372; e-mail
radha@hss.iitd.ernet.in).
The International Journal of Human Resource Management
ISSN 0958-5192 print/ISSN 1466-4399 online q 2005 Taylor & Francis
http://www.tandf.co.uk/journals
DOI: 10.1080/09585190500239424

1712 The International Journal of Human Resource Management


second, to test empirically the conceptual links of these SHRM dimensions, HR and line
managers perceptions about these variables and whether they predict firm performance
variables of financial turnover and profit. The remainder of this paper is structured as
follows. The next section presents an overview of the theoretical links between the two
variables of strategic HR roles and organizational learning capability together with firm
performance indicators. The approach suitable for this analysis is then discussed and
research hypotheses, built on previous research work, is presented. Thereafter the
methodology adopted for this study is detailed, followed by results, discussion and
conclusions.
The strategic focus of HR
Recently we have witnessed the amalgamation of several streams of management into
the strategic management literature including epistemology, organizational learning, the
resource based view, organizational capabilities and competitiveness and innovation and
new product development (Frost, 2003; Grant and Baden Fuller, 1995). Other streams
focus on nature and processes and examine the internal focus, which includes impact of
strategic management concepts and frameworks that managers use to develop
competitive strategy (Clark, 1997). Researchers have contended that the concept of
strategic human resource management has evolved into a bridge between business
strategy and the management of human resources (e.g. Butler et al., 1991; Lengnick-Hall
and Lengnick-Hall, 1988; Lorange and Murphy, 1984). On the other hand, Truss and
Gratton (1994) opine strategic human resource management as the overarching concept
that links the management and deployment of individuals within the organization to the
business as a whole and its environment. Ulrich (1997) further distinguished between
strategic HR and HR strategy. He stated that strategic HR was the process of linking HR
practices to business strategy. Thus, strategic HR deals with identifying the capabilities
required of a business strategy and using HR practices to develop those capabilities.
On the other hand, he viewed HR strategy as building an agenda for the HR function and
defining the mission, vision and priorities of the HR function. During the last decade, the
personnel/HRM field has shifted from a micro focus on individual HRM practices to a
debate on how HRM as a more holistic management approach may contribute to the
competitive advantage of the organization (Fey et al., 2000). Researchers drawing
largely on a behaviourist psychology perspective have addressed the link between human
resource management practices and competitive advantage (Schuler and Jackson, 1987;
Schuler and Macmillan, 1984). From this perspective, researchers have argued that
human resource management practices can contribute to competitive advantage as far as
they elicit and reinforce the set of role behaviours that result in lowering costs, enhancing
product differentiation or both (Schuler and Jackson, 1987). This paper focuses on
strategic HRM, as defined by Ulrich (1997), and the strategic role of HR linked to the
organizational learning capabilities of the Indian managers. The study will now look at
the field of HRM/HRD and the link to organizational learning capability.
HRM/HRD and organizational learning
There is much confusion between the intermittent usage of the terms HRM and HRD.
According to some researchers, the field of HRM, HRD and OD is converging into the next
generation field of HR (Grieves and Redman, 1999; Ruona and Gibson, 2004: 50; Sammut,
2001). Learning underpins the concepts of HRM and HRD. Indeed, the field has become
quite pervasive and Megginson et al. (1993) aptly refer to the fog factor that has developed

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

1713

in the HR world. The fields remain, like the field of personnel management generally,
Druckers dustbin (Drucker, in Townley, 1994: 3). When we move to the field of HR, we
find the link between learning and HR as a primary foundation stone, owing its roots to the
definition of the field itself. While recognizing HRMs shifting nature (Keenoy, 1999), the
main characteristics can be summarized as: a concern with organizational performance as
the primary goal; the adoption of a unitarist perspective; and a corresponding belief that
employers and employees can be beneficiaries of good or soft HRM (Storey, 1987) if
employees are nurtured and developed as valuable members of the organization who help to
achieve its goals (Legge, 1995a). Garavan (1991: 17), links HRD to business strategy when
he states that [HRD is] concerned with the management of employee learning for the long
term, keeping in mind the explicit corporate and business strategies. McCracken and
Wallace (2000), drawing on the work of Garavan et al. (1998), suggest that active leadership
from top management is critical to maximizing the returns from HR. However, it is not just
the HR specialists who need to be able to do this. It is equally, if not more vital, that senior
managers scan their operating environment (Maxwell et al., 2002), which can be achieved
through organizational learning capability. As is evident, the HRM research is constantly
oscillating between HRM and HRD, and in the latter research organizational learning
underpins the construct.
Organizational learning is not just the total sum of individual learning but is also the
organizational capability to continuously enhance, the collective capacity to reflect, to learn
how to learn, to unlearn old ways of doing things and abandon old habits (Senge et al., 1999).
Many authors have argued that organizational learning can be the main antecedent for
organizational well-being, the key enabler to achieving organizational change and securing
competitive advantage (Krogh et al., 1998; Nonaka and Takeuchi, 1995; Pfeffer, 1994).
A cause and effect chain between learning growth and performance has been also identified
in some research efforts (Hasan, 2002; Kaplan and Norton, 1992, 2001).
Similarly, HR practices are a source of competitive advantage, and as Drucker (2002)
and researchers like Pfeffer (1998) and Greer (2001) suggest, the success of companies in
the present competitive environment largely depends upon the calibre of their human
resources and innovative employee management programmes and practices. Recent
research on best HR practices has shown that the HR function is indeed an important
success factor (Greer, 2001; Thompson and Strickland, 2001) in an organizations
effective performance. Thus this study contributes to the theory of strategic HRM, where
it tries to prove how strategic HR roles are related conceptually and empirically to
organizational learning capabilities at the managerial level. The study now examines HR
roles and the growing awareness of strategically aligning strategic HR roles to the needs
of the organization.
Strategic HR roles
One of the first attempts at this categorization was made by Nadler (1970) in the USA. He
identified two primary roles of learning specialist: administrator role and the consultant
role. American Society for Training and Development (1983) identified fifteen key roles
for the HRD practitioner. Critical outputs for each of these fifteen roles were identified.
The UK perspective in the 1970 s and 1980 s was developed under the Manpower Service
Commission, a government body. The roles identified were mainly the trainer roles
(for details, see Walton, 1999). According to Ulrich (1997), in the past few years, roles
for HRM professionals were often viewed in terms of the transitional form such as
operational to strategic; qualitative to quantitative; policing to partnering; short term to
long term; administrative to consultative; functionally oriented to business oriented, etc.

1714 The International Journal of Human Resource Management


In order to create value and deliver results, HRM professionals must begin not
by focusing on the activities or work of HRM but by defining the deliverables of
that work. Deliverables guarantee outcomes of HRM work. In terms of deliverables,
there are four key roles that HRM professionals must fulfil to make their business
partnership a reality. These are the roles of Strategic Partner, Administrative Expert,
Change Agent and Employee Champion. The summation of these four results in the
business partner role of HRM. In India, Venkataratnam (1992) enumerated the current
and suggested role of personnel. Later, Lynton and Pareek (2000) suggested the business
partner role of HR. Pareek (1997) had earlier presented the partnership role of HR with
different stakeholders. Combining the above perspectives, Table 1 presents a matrix,
which exemplifies the overlap in research on the nature of these roles.
As is evident, the table highlights the strains in the literature on strategic HR roles,
which essentially say the same thing, and which are grouped into the four-role typology,
with the exception of two researchers, Ulrich, and Schuler and Jackson, who refer to the
business partner role and innovator and strategic role respectively. Yet the strategic
perspective on the HRM function leaves an array of questions unanswered relative to the
corporate HR roles (Novicevic and Harvey, 2001) and to find answers globally there has
been a great deal of research on strategic HR roles, for example, research from New
Zealand (Cleland et al., 2000), Australia (Teo, 2003), Europe (Storey, 1992), Thailand
(Chiraprapha and McLean, 2001) and the USA (Ulrich, 1997, 2003). The results of the
HRPS-sponsored Center for Effective Organizations study of HR in large corporations in
the USA argue strongly for HR taking on more of a strategic partner role (Lawler and
Mohrman, 2000b, 2003).
Despite credible evidence in many countries, as is reported above, supporting the view
that HR management is the key strategic issue in most organizations, HR has not been a
strategic partner (Brockbank, 1999; Lawler et al., 1995; Mohrman and Lawler, 1996).
The HR function has been an administrative function headed by individuals with roles
aimed at cost control and administrative activities (Ulrich, 1997). In India too, the
research has been on the HR practices and firm performance framework (Kandula, 2002;
Singh, 2003a, 2003b), while Agarwala (2003) focuses on innovative HR practices and
organizational commitment. There is a need to pursue this line of research and to first
establish the existence of the roles and then investigate whether they add value or not.
The status of these roles was the focus of recent research studies, which are sparse, such
as that of Bahl (2002), Bhandarker (2003) and Bhatnagar and Sharma (2002, 2003a,
2003b). Let us examine the need for this study in an Indian context.
Need for the study in Indian context
The research literature reflects that the role of human resources and organizational
learning capability has a conceptual relationship. There has been no attempt to study
empirically the relationship of human resource roles and organizational learning
capability. Ulrich (1997: 10) mentions the link between HRM practices and
organizational capabilities, with learning capability being one of them. Further, he
notes that managers should constantly ask themselves questions, such as how can HRM
practices be designed to create the needed capabilities? Specifically in India,
organizational learning capability has been empirically researched (Ramnarayan,
1998; Ramnarayan and Nair, 1993) referred to theoretically (Ramnarayan and Bhatnagar,
1993; Rastogi, 1998, 1999; Shukla, 1997) and as mechanisms (Pareek, 1988). It has
been found that the link between the two variables has not been tested empirically. The
current Indian literature contains arguments about the difference between personnel

Storey (1992)
Ulrich (1997)
Buyens and Vos (1999)
(extreme view)
Kossek and Block (2000)
Jackson and Schuler (2000)

Adviser
Change agent
Fireman
Transition
Change facilitator

Transaction
Monitoring

Clerks of works
Analysts of
benevolence
Hand maiden
Administrative expert
Boffin

Tyson (1999)
Torrington (1979)

Transformational role
Deviant innovator

Administrative role

Legge (1995b)

Authors

Table 1 HR roles matrix and overlap in research literature

Translation
Enabler

Regulator
Employee champion
Butler

Contract manager
Human bureaucrat

Welfare role

Transformation
Partnership

Change-maker
Strategic partner
Dreamer

Organizational
diagnostician
-

Strategic partner role

Strategic and innovation

Business partner role

Strategic HR role

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability


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1716 The International Journal of Human Resource Management


management and HRM and HRD (Budhwar, 2000; Budhwar and Sparrow, 1997),
together with the re-labelling of job titles from personnel management to HRD executive
(Balasubramanian, 1995; Dwivedi, 1997; Rao, 1999: 42; Rao et al., 2001; Venkata
Ratnam and Srivastava, 1981). Saini (1997: 104) observes that a number of people from
students to managers mistakenly think that personnel management and HRM are
synonymous concepts. Further, hierarchy and inequality are entrenched in Indias
traditions and are often found in routine behaviour in the form of unequally placed caste
and class groups (Jain and Venkata Ratnam, 1994). Because of this there is a continued
dependence of one group on the other (for example, subordinates on superiors) and a
general lack of local initiatives to tackle their own problems (Sinha, 1990). There is a
strong influence of social, cultural, economic and political factors on HRM policies and
practices in Indian organizations (Budhwar and Khatri, 2001).
The adoption of professionalized HRD practices in India is a recent phenomenon that
has gained momentum in the past ten years (Krishna and Monappa, 1994; Rao et al.,
1999, 2001).
The general trend in Indian industry, due to the liberalization of the Indian economy,
is encouraging for the strategic human resource management practices in general.
The study is relevant due to changes in the Indian economy and the resulting effect on the
management of all resources therein. This change from a regulated environment to a free
market environment has direct implications for SHRM practices in India (Krishna and
Monappa, 1994; Rao, 1999). Since liberalization, the Indian organizations and the
managers are dealing with issues of transformation and growth. Restructuring, reengineering, realignment of systems, structures, tasks and technology have all become
imperative. The impact of restructuring, the economic transition to an open market, as
well as increased competition from internal and external sources has put pressure on all
functions of the organizations. There has been evidence of a general need among the
managerial cadre to build capabilities, resources, competencies, strategies, macro as well
as micro HRM activities, which translate into strategic HR roles and enhanced
organizational learning capabilities. HRM specialists and the HRM departments are
under severe pressure to bring about large-scale professionalized changes in their
organizations in order to cope with the challenges brought about by economic
liberalization (Rao et al., 2001; Som, 2002).
Foreign firms, which have started operating in India since the liberalization of the
economy, do not confine their interventions to HRD, which Indian firms do, but undertake
wider programmes and strategies of HRM (see Budhwar and Boyne, 2004). Some of the
leading Indian organizations have also taken the initiative in this regard and have brought
out newer issues in the strategic management of their human resources (Saini and
Budhwar, 2004). Many experts (Ahluwalia, 1994; Das, 1996; Krishna and Monappa,
1994; Mathias, 1994; Sodhi, 1994; Thyagi, 1994) have discussed the implications of the
new economic environment for organization and management structure, strategy, culture
and values. They have suggested, for example, the need for improvement in quality, cost
efficiency, corporate ethical practices, employee development, motivation and team
functioning, strategic integration of the HRM function and greater involvement of line
management in HRM. A core of empirical studies on HRM in India relevant to the new
environment has been conducted using a variety of methods and theories (Amba-Rao et al.,
2000; Sodhi, 1994; Sparrow and Budhwar, 1997; Tayeb, 1988). Budhwar (2000)
highlights the need for research in the Asia Pacific region, specifically of the growing
economies of Latin America, China and India, and a strong need to research the HR
practices of these regions. Given this context, there is a need to conduct the current study.

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

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There will now be a look at the research literature, which has helped in the development of
the hypotheses.
Hypotheses: strategic HR roles and organizational learning capability
Keep (1989), in his definition of HRD, has linked HRM to organizational learning.
Pettigrew et al. (1988: 32), also argue that effecting change in training and HRD involves
thinking in broad HRM terms. The link between the HR role and organizational learning
has been well established in the literature. It has been noted that those organizations, which
think that they want to be learning organizations, will treat HRD strategically
(Cunningham and Iles, 2002; Marquandt and Reynolds, 1994; Maxwell et al., 2002;
Walton, 1999). Rainbird (1999) indicates the link between environmental scanning and
HRM. McCracken and Wallace (2000: 429), argue that HRD policies and plans need to be
supplemented by HRD strategies. Garavan (1991) establishes the link between HR and
long-term planning while, in practice, the alignment or fit between HRM generally, and
training and development in particular, and business plans and strategy is very variable,
although there is some evidence that competency-based management development can
generate positive benefits for organizations (Winterton and Winterton, 1997). Measuring
and benchmarking the learning capability of an organization is an effective tool to initiate
and facilitate a change process to building a greater learning capability (Jick, 1994; Nadler,
1998). Beer (1997: 57) states the importance of institutionalizing a core action learning
programme if the HR function is to develop into a strategic role. Scarbrough and Carter
(2000), present a comprehensive review of the ways in which HRM issues could be linked
to knowledge sharing, which organizational learning capability enhances when
knowledge sharing is through horizontal and vertical boundaries of the organization.
MacNiel (2003) conducted a study that focused on the line managers HRM role in
employee learning and development, exploring the line managers potential contribution
to achieving strategic HRM objectives, and in facilitating the integration of an individuals
tacit knowledge by encouraging teams to share knowledge. Thite (2004), identifies some
key HR strategies for effective people-centric partnership in knowledge management,
namely trusting HR philosophy, institutionalizing learning to learn, and fine tuning HR
systems in a multi-national context, again highlighting the relationship between HR
strategy and the strategic intent of organizational learning. The study by Terziovski et al.
(2000), of the five Australian case studies of Toyota Motor Corporation Australia, Ramset
Fasteners Limited, W.A. Deutscher Metal Products Group, South Pacific Tyres and Pacific
Dunlop Bedding, found a direct link between HR and organizational learning. Gardiner
et al. (2001) commented that in both the learning organization and HR focus on promoting
and facilitating learning as a central activity of the organization, there are a number of
similarities in the way both programmes address the issue. Moreover, both approaches
advocate increased employee participation in policy making and a softer approach to the
formulation of business strategy. Thus, it is hypothesized that:
H1: The strategic HR roles and organizational learning capability will have a positive
relationship.
In organizations the line managers role is important in
ensuring that the implementation of HRM strategy and policies are successfully
implemented (MacNeil, 2003). The devolution of HRM activities to line managers
(Brewster and Larsen, 2000; Hutchinson and Wood, 1995) is a useful means for

Role of line and HR managers

1718 The International Journal of Human Resource Management


achieving through the implementation of HRM policies and practices that are consistent
with the desired strategic intent (Brewster and Larsen, 1992; Budhwar, 2000; Hall and
Torrington, 1998; Hope-Hailey et al., 2002). The emerging concept of the strategic
partner (Barney and Wright, 1998; Schuler, 1992; Ulrich, 1998) contends that HR
departments should help line managers resolve business issues and align HRs interests
with the achievement of organizational goals. Budhwar and Sparrow (1997), further
examined the institutional impacts through the role of HR managers in corporate strategy
and line managers responsibility in HRM. Mitsuhashi et al. (2000), report the major
finding that there are no significant differences between HR and line executives
perceptions of the importance of each functional area in human resource management
(HRM). Strategically focused HRD functions rely on the commitment and involvement
of line managers. Certainly strategic HRD advocates the involvement of many
stakeholders. Lee and Chees (1996), work showed that amongst the characteristics of the
companies at the top end of the training maturity scale, training was perceived as
supporting business strategy and HRD specialists and line managers worked in
partnership with each other. Line managers are crucial stakeholders whose role in HRD is
often under-developed for a variety of reasons, both attitudinal and cultural. Research
studies acknowledge the problems, which are experienced by line managers engaged in
HRM activities without adequate support from senior management (or the HRM
specialist, Brewster and Larsen, 2000; Marchington and Wilkinson, 2002). Some
research studies reflect that involvement of line managers does have a favourable effect
on the achievements of the business strategy, HRM strategy and ultimately performance
(Wai-Kwong et al., 2001). Line managers are important for successful policy
implementation in organizational change situations, as a vital communication link
between senior management and team members (McHugh et al., 1999). Cunningham and
Hyman (1995) and MacNeil (2001, 2003) point out that the role of the line manager in the
implementation of HRM policies and practices has frequently been overlooked, or at best
taken for granted by many organizations. Wright et al. (2001) and Bhatnagar and Sharma
(2002) have conducted research on roles and the line HR perspective and the research in
this area is meagre. Ellinger and Bostrum (1999), reiterate the link between the strategic
HR role and organizational learning capability, and highlight the role of the line manager
as a facilitator encouraging knowledge sharing, which can be useful for developing
collective learning capability and learning as a core competence for the organization.
There is sparse research on the perception of strategic HR roles and organizational
learning capability, vis-a`-vis HR and line managers perception, as is evident from the
reported research. Thus, we hypothesize that:
H2: There will be a significant difference in the perception of managers (line vs. HR)
in strategic HR roles and organizational learning capability.
Strategic HR roles and organizational learning capability: predictors of firm
performance
According to Conner and Ulrich, (1996: 39): Many drivers have led to the reinvention of
human resources, including cost pressures, increased attention to customer satisfaction,
emphasis on well-being, productivity, and commitment of the employee, and using
people and organizations as a source of competitive advantage. This is reiterated by the
studies of Pleval et al., 1994; Towers Perrin, 1992; Ulrich and Lake, 1990; Ulrich and
Yeung, 1987 and Walker, 1992. As far as organizational learning and performance is
concerned, Ellinger et al. (2003), have established a link between financial indicators of

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

1719

performance and organizational learning, through empirical research. Scholars contend


that adopting learning organization strategies should promote individual, team and
organizational learning and that such enhanced learning should yield performance gains
(Baker and Sinkula, 1999; Day, 1994; Hunt and Morgan, 1994; Pettigrew and Whipp,
1991; Slater and Narver, 1995). However, few concrete studies exist that clarify how the
learning organization concept works to achieve performance improvement (Goh and
Richards, 1997; Henderson, 1997; Jacobs, 1995; Kaiser and Holton, 1998). HRM
practices and firm performance links are well established in literature. Researchers in the
field of strategic human resource management (SHRM) have increasingly relied on the
resource-based view of the firm to explain the role of human resource practices in firm
performance (Mello, 2003; Wright et al., 2001). Huselids (1995) study on the
relationship between HRM practices and corporate financial performance is the landmark
work in this area. This was soon followed by similar research conducted by MacDuffie
(1995), Delaney et al. (1996), Delery and Doty (1996), Huselid et al. (1997) and Guthrie
(2001). Numerous authors have suggested the need to understand better the processes
through which HR practices might have an impact on performance (Becker and Huselid,
1998; Dyer and Reeves, 1995; Hutchison et al., 2002; Wright and Gardner, 2002). While
a number of models have been proposed (e.g. Becker and Huselid, 1998; Dyer and
Reeves, 1995; Truss and Gratton, 1994), very little empirical research has examined
multiple potential links (Wright and Gardner, 2002). Gardner and Wright (2003)
presented executives and graduate students with fictitious descriptions of high and lowperforming companies and found evidence that their reports of HR practices can be
influenced by knowledge of the companys past performance. Ostroff (2000) found some
support for a HRM practices and performance. In this study, we have extended this link
to include strategic HR roles, which are a reflection of the implementation of HR
practices within organizations. Wright et al. (2003) reveal that both organizational
commitment and HR practices are significantly related to operational measures of
performance, as well as operating expenses and pre-tax profits. Thus, it is posited that:
H3: Strategic HR roles and organizational learning capability will be predictors of
financial turnover and firms profit indicators of firm performance.
Research design and sampling
We used a survey-questionnaire approach to gather data. The study is based on two-stage
sampling design. In the first step, fifty Indian organizations were chosen randomly from
the national capital region of India. In the second step, among these fifty organizations,
1,000 top, middle and senior level managers in HR or who were line managers were
randomly selected to fill in the questionnaires. From this sample of 1,000 managers a
total of 640 questionnaires were filled in. A total of 360 questionnaires returned were
either incomplete or the managers refused to oblige. The response rate to the survey was
64 per cent. The scope of the study has been limited to managers from the industries in
the national capital region of India. The organizations from which the managers
responded spanned the public sector, private sector and multinational companies. The
size of the sample was 218 government managers, 265 private sector managers and 157
multinational managers. Organization size, reflected in employee numbers, ranged from
less than 499 to 50,001 and above. It was found that 20.8 per cent of the managers in the
sample were from small organizations, while 58.4 per cent were from medium
organizations. The remaining 20.8 per cent were from large organizations with between
10,001 and 50,000 employees. The financial turnover ranged from Rupees 10 crores to

1720 The International Journal of Human Resource Management


over 5,000 crores. Fifty-three per cent of the managers were from organizations with a
financial turnover of more than Rupees 500 crores, while 26 per cent of the sample were
from organizations with a financial turnover of between Rupees 200 crores and 500
crores, while 13 per cent belonged to organizations with a turnover ranging from Rupees
50 to 200 crores. The remaining 8 per cent of the managers were from organizations that
recorded a financial turnover of below Rupees 50 crores. The profits ranged from below
Rupees 5crores to over 500 crores. A total of 15.2 per cent of the managers came from
organizations which had profits over Rupees 500 crores, while 33.4 per cent of the
sample were in organizations that had profits ranging from 100 crores to 500 crores. The
remaining 24.4 per cent of the managers were in organizations that recorded profits of
Rupees 30 to 100 crores. The remaining 29 per cent of the managers were from
organizations that recorded profits below Rupees 30 crores.
Human Role Assessment Survey Questionnaire (Conner and
Ulrich, 1996) was administered on the sample. This has 40 items that have to be rated on
a five-point Likert scale. On the scale, 1 represented low and 5 represented high.
Participants were asked to refer to the HR professionals in their business entity and rate
the current quality of each activity. The Cronbach alpha was .97.The sub-variables were
the four roles of strategic partner (SP alpha .92), administrative expert (AE alpha .92),
employee champion (EC alpha .94) and change agent (CA alpha .93). The business
partner (BP alpha .85) role is the summation of the four roles.
For measuring organizational learning capability, we selected the organizational
learning capability (OLC) questionnaire (Ramnarayan, 1996, 1998; Ramnarayan et al.,
1993) for this study. In the current study the scale has been adapted to a 40-item scale, the
repetitive questions were deleted, based on the feedback of the respondents. The
respondents were to rate their responses on a five-point Likert scale, where 1 does not
match at all; 2 matches to a small extent; 3 matches to a moderate extent,
4 matches to a large extent and 5 matches perfectly. The Cronbach standardized
item alpha was .87. This was run using the statistical package SPSS w, 11.5 version. The
variables, which were measured by a 40-item scale, were: Clear focus on objectives and
plans for internal and vertical integration, (alpha .83). The other five variables were:
Sensitivity to people potential and needs (alpha .84); Concern for long-term planning and
success (alpha .53); Support for learning from others and creativity (alpha .52);
Environmental scanning (alpha .63); Concern for development of capabilities (alpha
.80). (See Appendix A for the framework that was used for developing the organizational
learning capability framework and to Appendix B for an illustration of select items of the
two instruments.)
Research instruments

Results and discussion


Results indicate that correlation coefficients were mostly significant and positive but
were not very high. As is evident from Table 2, all the correlations between the subvariables of strategic HR roles and the sub-variables of organizational learning
capability, range from .10 to .44 and are significant at .01 and .05 level. Thus, we accept
the H1, that there is a positive relationship between the strategic HR roles and
organizational learning capability. However, the correlation value is not very high but we
can safely conclude that the level of strategic HR roles and organizational learning
capability is of a moderate level. These results support prior research of Bhatnagar and
Sharma (2003c), on OLC and Bhatnagar and Sharma (2002), on strategic HR roles.

.38**
1

1
.82**
.79**
.80**
.10*

Notes
*Correlation is significant at the 0.05 level (2-tailed).
**Correlation is significant at the 0.01 level (2-tailed).

SP
AE
EC
CA
CL_OBJ
HOR_INTE
VER_INTE
POT_NEED
LONG_PLG
CREATE
ENV_SCAN
DEVT_CAP
OLC
BP_ROLE
1
.79**
.83**
.14**
.12**
.14**
.42**
.26**
.31**
.27**
.39**
.39**
.92**
1
.82**
.04
.12*
.14**
.39**
.28**
.30**
.27**
.39**
.37**
.93**

SP
AE EC
CREATE ENV_SCAN

1
.09*
.10**
.11*
.42**
.27**
.32**
.27**
.42**
.34**
.92**
1
.12**
.10**
.37**
.23
.30**
.23**
.35**
.57**
.94*
71**
.56**
.24**
.05*
.18**
.22**
.18**
.56**
.10**

CA
CL_OBJ
DEVT_CAP OLC

1
60**
.23**
.07*
.17**
.20**
.17**
.51**
.13**
1
.26**
.08**
.13**
.18**
.18**
.36**
.14**
1
.62**
.70**
.62**
.77**
.58**
.44**
1
.57**
.47**
.68**
.73**
.28**

HOR_INTEVER_INTE
BP_ROLE

1
.54**
.68**
.70**
.34**

LONG_PLG

1
.64** 1
.81** 11
.29** .42** .41**

POT_NEED

Table 2 Correlation coefficients of Strategic HR roles, (BP_Role) with the sub-variables of Strategic partner (SP); Administrative expert (AE); Employee
champion (EC); Change agent (CA), and Organizational learning capability (OLC) and the sub-variables of clear objectives; Sensitivity to people potential and
needs (POT_NEED);Concern for long-term planning and success. (LONG_PLG) Support of experimentation and creativity (CREATE); Environmental
scanning; (ENV_SCAN); Concern for development of capabilities (DEVT_CAP)

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability


1721

1722 The International Journal of Human Resource Management


The highest correlation is for Sensitivity to people potential and needs and the business
partner role (.44), while Concern for development of capabilities and Employee
champion role indicate a correlation of .42, and Sensitivity to people potential and needs
and strategic partner role shows a correlation value of .42. This indicates that
development of capabilities and potential development is an activity, which managers
correlate highly to the strategic HR roles of employee champion, strategic partner and
overall business partner role. Further, the results of this study support the studies of
Ulrich (1997), which state that organizational competitiveness will spring from
organizational capabilities, such as speed, responsiveness, learning capacity and
employee competence, and that the human resource department will be responsible for
generating these capabilities. Further, the results support the research of Massey and
Walker (1999) who found the role of consultants can influence organizational learning.
London and Smither (1999) draw out the implications for human resource management
practices within the organization by looking at the role of supervisors in creating a noncontrolling environment, which supports empowerment and self-development.
Kemske (1998) presents the results of a study that asked ten leading US human
resource directors and consultants about the way that the profession will develop over the
next ten years. The study sets out their predictions concerning flexible working, the needs
of globalized business the future of work, organizational learning and training, the future
of jobs and the strategic role of human resource management. Further, the findings
support the study of Mohrman and Lawler (1997). They identify the main challenges that
face US human resource managers as: maintaining employees performance; being able
to identify and deploy the employees with the right skills for project teams; managing
organizational competencies; developing organizational learning; and defining the new
psychological contract between employees and the organization. They also identify a
role for human resource management (HRM) at an organizational level contributing to
business strategy, designing organizational structures, implementing change and
integrating performance management practices. The results of the study further support
the studies of South Pacific Tyres (SPT) by Terziovski et al. (2000), where it was found
that another factor in the effectiveness of the project team was the decision to recognize
and send an operator and a foreman to Japan to learn and work as part of the crossfunctional team. The operator and the foreman were given an opportunity to share what
they had learned in Japan with the entire SPT workforce which was very well received.
The shop floor employees saw this particular operator as the champion of the change
process who was able to bridge the gap between management and the shop floor. This
persons ability to communicate with the top floor and the shop floor enabled clear
identification of the agendas of both groups. Team learning was evident at South Pacific
Tyres when management decided to send their employees overseas to facilitate
knowledge, oversee the development of the tyre building technology development and
assist with the implementation of the pilot project.
This finding is in agreement with earlier research. Beckhard and Pritchard (1992) state
that the encouragement of taking risks, giving feedback and learning lessons are the softer
side of HRM to support the change strategies and the values of top management. According
to Senges (1992) approach, the HR practitioners have a key responsibility in developing and
sustaining the processes that support the exercise of the disciplines as well as facilitating
individual and group learning activities and opportunities to develop mastery in them. One
of the features of Pedler et als (1989) approach is the integration of structural and HRM
features into the model, focusing on process and practices. They identified a list of eleven
dimensions on features of a learning company under five headings of strategy, looking in,
structures, looking out and learning opportunities. This is similar to the sub-variables of

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

1723

OLC tested by the current study. Jeriss (1997) study of eight organizations emphasized that
skilled HRD practitioners can provide help in the unpacking process, but only if they have
sufficient knowledge about the dimensions and supporting criteria on the one hand and the
realities of the organization and its readiness and capacity for change on the other.
Discriminant functional analysis, together with a t-test was performed to find the difference
in the perception of HR and line managers. We found that line and HR managers differed
significantly in their perception of the strategic partner role and organizational learning
capability, but the results were reversed for each variables in terms of HR and line manager
perception. Results in Table 3 highlight that the t-test between type of manager and strategic
HR roles, (BP_ROLE) and organizational learning capability, are highly significant at the .01
level. The mean for the BP_ROLE is highest for HR managers (157.60). The discriminant
functional coefficient for the strategic HR role (1.04) is the highest for HR managers. While the
coefficient for OLC is the highest for line managers (.98), we find HR managers have the most
significant impact on the strategic HR role and self-report it to be higher than the line manager.
Thus H2 is accepted. This result supports prior research studies of Conner and Ulrich (1996),
Bhatnagar and Sharma (2002, 2003b), where HR managers report higher values for
themselves than their line counterparts. Further, it supports the work of Mitsuhashi et al. (2000)
who report in their research study that there are predominantly positive differences between
HR and line executives perceived effectiveness (HR minus line), indicating that line
executives compared with HR executives consider most of the HRM functional areas to be less
effective. The HR service providers seem to have overestimated their own performance.
Bradley (1978) and Kidd and Morgan (1969) pointed out that self-serving bias often lead
individuals to view themselves more favourably than seems objectively warranted (OReilly,
1983: 128). Perhaps HR executives overrate their performances in order to validate the
importance and effectiveness of the HR function within the organization. Based on these
theoretical predictions, it is not surprising that line executives perceptions of HR effectiveness
are different from HR executives perceptions. In addition, the results indicate that the line
managers in Indian organizations differ from HR managers in terms of their learning
capability, and that line managers have a higher organizational learning capability.
Tables 4a and 4b confirm that strategic HR roles are predicted by both the firms
financial turnover and firms profit, as all the beta values are significant at the .05 level of
significance. While organizational learning is not predicted by financial turnover, it is
predicted by firm profit at .05 level.

Table 3 One-sample t-test, means, SD discriminant functional coefficients for type of manager (H
TYPE), i.e. HR manager and line manager and strategic HR roles, (BP_ROLE) and organizational
learning capability
HR MGRS
T test

Variables

df 639

H TYPE
BP_ROLE
OLC

138.81**
109.83**
157.42**

Mean

SD

157.60
130.44

26.36
17.86

Line MGRS

Discriminant
functional
coefficients

Discriminant
functional
coefficients

Mean

SD

1.04
2.25

2 .08
.98

136.75
121.65

32.17
20.86

Notes
**t-test is significant at the 0.01 level (2-tailed). N 640.

1724 The International Journal of Human Resource Management


Table 4a Stepwise regression model of strategic HR roles, organizational learning capability as
predictors of firms financial turnover
Model
1
2

(Constant)
BP_ROLE
(Constant)
BP_ROLE
OLC

Unstandardized
coefficients B

Std. Error

9.35
3.82
9.569
3.22
2.28

.19
.001
.17
.001
.001

Standardized
coefficients beta
.17
.15
.06

Sig

79.35
4.58
54.78
3.52
1.62

.000
.000
.000
.000
.104

Notes
a
Predictors: (Constant), BP_ROLE.
b
Predictors: (Constant), BP_ROLE, OLC.
c
Dependent Variable: FINANCIAL TURNOVER.

Thus H3 is partially accepted. The results support some prior research in this area.
A developing body of research has reported positive associations between firm-level
measures of HRM systems and organizational performance (Arthur, 1994; Huselid,
1995; Huselid and Becker, 1996; Ichniowski and Shaw, 1999; MacDuffie, 1995). The
organizational context (e.g. fit) and goals (e.g. outcomes) may influence, whether
particular human resource practices have synergistic or independent effects on firm
outcomes (Delery, 1998). Huang (2000) found in his study of 315 Taiwanese firms, and
found support for the assumption that human resource strategies and organizational
performance are significantly related. On the other hand, Som (2002) reported in his
study of fifty-four organizations in India that the role of the HR department is positively
correlated with organizational performance and the HR department plays a significant
role in the adoption of best practices within the organization. This study extends the
theory of strategic HRM to include strategic HR roles and the results imply that a better
fit of strategic HR roles with the organizational learning capability lead to better
performance. The result for organizational learning capability partly supports the study
of Ellinger et al. (2002) who found a positive association between learning organization
practices and firms financial performance. Their findings give support to the business
case of organizational learning. It also implies that these strategic HR roles and

Table 4b Stepwise regression model of strategic HR roles, organizational learning capability as


predictors of firms financial profit
Steps

Variables

Unstandardized
coefficients B

Std error

Step 1a

(Constant)
BP_ROLE
(Constant)
BP_ROLE
OLC

9.24
3.75
9.51
2.96
3.00

.129
.001
.191
.001
.002

Step 2b

Notes
a
Predictors: (constant), BP_ROLE.
b
Predictors: (constant), BP_ROLE, OLC.
Dependent variable: FIN PROFIT.

Standardized
coefficients beta
.161
.127
.084

Sig.

71.77
4.12
49.95
2.97
1.95

.000
.000
.000
.003
.005

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

1725

organizational learning capabilities are nested in a context of a high involvement work


systems (HIWS) (Edwards and Wright, 2001; Guest, 1997). As to what HIWSs do, Guest
(1997) describes most clearly the causal path that other writers assume. Systems such as
teamwork are established; they influence workplace practice; employee attitudes
change, with increased satisfaction or commitment; there is a consequent effect on
behaviour; and this in turn feeds through to the performance of the work unit and
eventually the company. Thus, the results may be implying that Indian managers are
working in high involvement work systems, which have become a reality due to
increasing pressures of competitiveness from the global economy. In support of the
above statement, economic trends in the Indian economy picked up in the year 2003, with
the private sector reporting a GDP growth of 18 per cent for the second quarter of
the current fiscal year (20034: Economic Times, p. 3). The results were well supported
by the feel good factor of the Indian economy, where India Incorporation posted
a dramatic turnaround in financial performance in the year 2003 (Economic Times, 2004).
Conclusion and implications
Strategic HR roles and organizational learning capability are positively related to
each other and the business partner role of HR does associate positively with the
learning capability of the managers, thus establishing an empirical link for variables
which had only a conceptual relationship. Further, the results of the study conclude that
in India, line and HR managers differ significantly in their perception of strategic
partner role and organizational capability, where the organizational learning capability
is higher for line managers and strategic HR role perception is higher for HR managers.
The study provides evidence of the involvement of line managers role in HR although
that was not directly measured. In terms of the quality of the role of HR, it does not
conform to high quality of a mean score of 160 and above as stated by Ulrich (1997),
but is currently close to high quality (mean 157.60). Further, from the sample of 640
managers we conclude that strategic HR roles are predicted by both the firms profit and
financial turnover while organizational learning capability is predicted by the firms
profit and not by financial turnover. This theoretically and empirically proves that a
better fit with the organizational variables of HR leads to better performance and hence
competitive advantage. The results support the theory of the human resource-based
view of the firm (Paauwe and Richardson, 1997). The results of the study provide
further support to the performance prediction of the Indian economy (Budhwar, 2001,
2003), wherein the second-generation reforms are being incorporated in the Indian
economy, which seems to be responding positively to these. On the other hand, the
World Bank prediction of India emerging as the fourth largest economy of the world by
2020 also gets credence from the results. Finally, using multiple employees as
respondents in this study provided a psychometrically sound measure of the strategic
HR role something that has rarely been observed in the past (Gerhart et al., 2000;
Wright et al., 2001).
Thus, this study finds empirical support that strategic HR roles are significant, together with
organizational learning capability, in determining their impact on the organizations
performance, and these are positively correlated and are better perceived by HR managers.
This implies that HR managers should be equal partners in the business strategy formulation,
with representation of HR on the board of directors of the organization, which is not
happening in India. HR managers in India must now let go of the re labelling from personnel
to HR and should take on more responsibilities with line managers to make the function more
strategic. Practical implications of HR being the nerve centre of the organization thus

1726 The International Journal of Human Resource Management


remains strong, especially against the backdrop of continuous change and competition from
the global and transnational firms. With the radical change in the environment a shift in the
role was imperative for the HRM function, which the current study provides. However, the
theoretical implication and challenge lies in institutionalizing the strategic roles in the
working processes of the organization in which the managers are working. HR strategic
interventions should be given more visibility and constant efforts must be made within the
organization to benchmark against the best practices or better still to set benchmarks if not
available. Therefore there is a practical need for continuous environmental scanning, both
internal and external, to facilitate this process. HR deliverables become crucial to the firm, and
the role of HR metamorphoses to line managers, with practical implications for HRIS,
emerging as an enabler of the HR function, which would lead to better efficiency of the HR
role and free HR managers for strategic roles. Theoretical implications are present to go
beyond these four roles and explore newer roles, which may be customized according to the
organizational prototype. Finally, line managers in India also perceive these two variables to a
certain degree of significance, and their organizational learning capability is better than their
HR counterparts. There are practical implications for the organizational learning
interventions that need to be designed and there is a need to look constantly within and ask
questions to find out whether the learning that is taking place at the individual, team and the
system level is driven by a coalition of line and HR managers or not. This implies a need for an
HR audit that examines the nature of this initiative and whether it is always affecting the
financial performance or not.

Limitations
There is of course, the notion of reverse causality (Paauwe and Richardson, 1997) which
the study has not looked into, i.e. financial performance in turn may be responsible for
moderate levels of correlation between strategic HR roles and organizational learning
capability. In addition, there may be more than the four roles which the study could have
pursued which future studies can focus on. Further research can refine the study to include
this factor and can further refine the sampling technique because the sample size collected
for the study is not homogenous in size. Single respondents who were managers were the
points for data collection. Their biases and perceptions may have affected the ratings of
the questionnaires (Whitener, 2001). The study focuses only on the managerial cadres
of the organization. Further research in this area may include non-managerial employees
in different units and functions of the organizations. A dynamic co-relational study
comparing organizations in time period 1 and time period 2 would have given interesting
results, and further research can examine this. In this survey firm performance indicators
of return on equity (ROE), return on assets (ROA), Tobins q, and market value added
(MVA) (Ellinger et al., 2003) could not be used, which further studies can pursue.
Moreover, the strategic HRM dimensions analysed the role of HR, but unique and
customized HRM practices of each organization could not be studied which would have
clarified the role of HRM further and made the study more interesting. The conclusions of
this thesis would not yield generalizations. Larger sector wise studies would be required
for further validation.
Appendix A. Theoretical framework of the development of the OLC (Ramnarayan,
1996) questionnaire based on inhibitors to the learning process in Indian
organizations

1. Clear focus on objectives and Systems perspective on shared vision (Senge, 1990)
plans for internal integration
clear focus on objectives
attention to integration and
Systems thinking (Leonard-Barton, 1992; Stata, 1989)
among departments and
functions
attention to vertical integration Systemic thinking (McGill et al., 1992); Systems perspective
(Nevis et al., 1995)
2. Sensitivity to people potential Facilitative leadership (Slater and Narver, 1995); Shared
and needs
priorities and values (OBrien, 1990)
Team learning (Senge, 1990)
3. Concern for long-term plan- Conscious efforts to development of latent or intangible efforts
ning and success
(Itam, 1987); Integration of internal knowledge (LeonardBarton, 1992)
4. Support for experimentation Creativity requires deliberate and temporary relaxation of rules
and creativity
(March, 1971); Openness and experimentation and openness to
new ideas (Stata, 1989); Openness and creativity (McGill et al.,
1992)
5. Environmental scanning
Absorptive capacity (Cohen and Levinthal, 1990); Environmental responses are interpreted by individuals who learn by
updating their beliefs about cause effect relationships (Lee
et al., 1992); Processing of information (Huber, 1991)
6. Concern for development of
Old success does not lead to success in the future (DeGeus,
capabilities
1988; McGill et al., 1992; Naman and Slevin, 1993; Nonaka,
1994; Nonaka and Takeuchi, 1995; Slater and Narver, 1995)

Functional myopia

Lack of urge for change

Insufficient external orientation

Excessive formalization

Preoccupation with day-to-day routines

Command and control orientation

Learning challenge resultant in Theoretical support


developing learning capability N
= 1686 Indian
managers

Blocks to learning in Indian organizations (Ramnarayan


and Bhatnagar, 1993; Ramnarayan and Nair, 1993)

Table 1A

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability


1727

Source: Bhatnagar (2004).

Blocks to learning in Indian organizations (Ramnarayan


and Bhatnagar, 1993; Ramnarayan and Nair, 1993)

Table 1A (Continued)

Continuous learning and experimentation culture (McGill et al.,


1992); Experimentation and learning from past experience and
from others (Garvin, 1993); Continuous experimentation and
learning from past situations (Slocum et al., 1994)

Learning challenge resultant in Theoretical support


developing learning capability N
= 1686 Indian
managers

1728 The International Journal of Human Resource Management

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

1729

Appendix B
Some select items of human role assessment survey (40 items) (Conner and Ulrich, 1996).
Strategic partner (SP)
HR helps the organization accomplish business goals
HR participates in the process of defining business strategies
HR makes sure that HR strategies are aligned with business strategy
HR effectiveness is measured by its ability to help make strategy happen
HR spends time on business planning
Administrative expert (AE)
HR helps the organization improve operating efficiency
HR participates in the process of delivering HR processes
HR makes sure that HR processes are efficiently administered
HR effectiveness is measured by its ability to efficiently deliver HR processes
HR spends time on operational issues
Employee advocate (EA)
HR helps the organization take care of employees personal needs
HR participates in the process of improving employee commitment
HR makes sure that HR policies and programmes respond to the personal needs of employees
HR effectiveness is measured by its ability to help employees meet personal needs
HR spends time listening and responding to employees
Change agent (CA)
HR helps the organization adapt to change
HR participates in the process of shaping culture change for renewal and transformation
HR makes sure that HR processes and programmes increase the organizations ability to change
HR effectiveness is measured by its ability to help an organization anticipate and adapt to
future issues
HR spends time on supporting new behaviours to keep the firm competitive
Business partner role 5 SP 1 AE 1 EA 1 CA
Some select items of organizational learning capability questionnaire (Ramnarayan, 1996)
Five-point scale (R refers to reverse the score, for instance 1 5)
Clear focus on objectives and plans for internal integration
Clear focus on objectives:
Most of our senior officers are so busy with the routine day-to-day work and fire fighting
that they have no time for anything else (R).
Divisions/groups with the task of planning lack sufficient influence.

1730 The International Journal of Human Resource Management


The senior officers do not back up the innovative ideas with visible support and energetic
action (R).
The organization adopts administrative systems and programmes without
carefu examination of skill, abilities, beliefs, and values of personnel at the operating
levels (R).

Attention to integration and among departments and functions:


Officers of the different functions/divisions consider their own functional areas as
the only important ones.
It is difficult to learn about new ideas and developments that other divisions/functions
are working (R).

Attention to vertical integration:


Plans do not take into account constraints and problems at operating levels (R).
Operating personnel feel very little commitment to organizational plans (R).
The senior officers rely too much on formal performance reports and miss the
critical concerns at the operating systems (R).
Sensitivity to people potential and needs
Officers and staff have a great deal of trust in the senior management.
The senior management recognizes the importance of obtaining ideas from people
at the operating levels.
The senior officers genuinely believe that they can learn from their colleagues and
subordinates.
Management scans the internal climate and has a good feel of the problems of
employees at lower levels.
Concern for long-term planning and success
Officers at all levels participate extensively in periodic reviews of strengths,
weaknesses, opportunities and threats.
Officers and staff are clear about the priorities of the total organization.
New administrative systems are adopted without careful preparation.
Dialogue and discussion are used extensively to develop understanding of new plans
and programmes of the organization.
Support for experimentation and creativity
Officers are encouraged to experiment with new methods and approaches.
Suggestions and innovations are handsomely rewarded.
Participative forums are available to officers for introducing new ideas.
Management acts quickly on innovative ideas.

Bhatnagar and Sharma: Strategic HR roles and organizational leading capability

1731

Environmental scanning
Most national and global trends are quickly picked up and the important information
reaches the concerned personnel.
We are aware of the latest developments in the work being done by similar
organizations within and outside the country.
Concern for development of capabilities
Regular attempts are made in the organization to develop awareness of
organization-wide issues among officers to different functions/divisions.
Knowledge outsiders are invited to share their ideas with officers and staff.
The senior officers genuinely believe that they can learn from their colleagues and
subordinates.
Employee development receives a high priority in the organization.
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