CASE SUMMARY
The case "HR Must Raise Its Game" by Stefan Stern analyzes how the Human Resource (HR)
role is not valued within organizations. The majority of people assume that HR just says "no"
and stops business progress. During the recession, HR was involved in redundancies but neither
heard nor respected. Some HR leaders regretted not speaking up sooner when witnessing poor
leadership decisions or unacceptable behavior. However, the Corporate Research Forum (CRF)
and experts like Professor Patrick Wright believe that HR can perform better. HR can be a friend
for leadership development, ethical values, and organizational performance. They can act as
coaches to top managers, help in talent management, and be responsible for ethical behavior. The
case challenges HR to become more proactive, honest, and helpful in business decisions.
CASE ANALYSIS
1. Problem Identification
1.1A Minor Problems:
Other departments do not respect HR.
HR is not consulted on big decisions.
HR does not complain enough about issues.
1.1B Major Problem:
HR is not recognized as a critical component of business leadership and strategy.
1.3 Possible Future Problems:
HR might still be overlooked.
Ethical problems could increase if HR does not speak out.
Businesses could lose talent and performance.
2. Problem Analysis
2.1 Obvious Causes and personal justification
Outdated view of HR as only about firing or hiring.
Lack of confidence within HR to challenge top executives.
2.2 Underlying issues
HR has yet to gain strong influence at leadership levels.
HR has yet to prove value in terms of business outcomes.
2.3 Assumptions
HR will improve only if given greater voice and respect.
HR needs leaders who are bold enough to challenge power.
3. Alternative Solutions
3.1 Options Available
HR gets more involved in leadership and ethics.
Appoint external consultants to advise leadership on people issues.
3.2 Advantages and Disadvantages of each alternative
Option 1
Builds long-term value and trust as HR itself can comes out as a partner in leadership.
May face resistance from executives while that may lack modern HR training and
courage.
Option 2
Delivers external ideas.
Can be costly while this option may still not understand company culture.
4. Recommendation
4.1 Recommended Action
HR must become more involved in leadership, social norms, talent management, and ethics.
Especially in today’s workplace within the new generation.
4.2 Justification
This helps HR prove its value and facilitate business success. It will help constructs a more
ethical, high-performing workplace.
4.3 Positive/Negative Effects
Positive effects
Enhanced leadership and performance.
Increased respect for HR.
Negative effect
Can expect resistance.
Needs ongoing training and support.
5. Implementation
Step-by-Step Plan
1. Leadership training and ethics for HR leaders.
2. Regular inclusion of HR in board meetings.
3. Review and help in selecting board members by HR.
4. Feedback to the CEO and leadership team from HR.
5. Firm has clear guidelines to protect HR's voice.
6. Overall Comments
Conclusion
HR must break its silence and start to be a true business partner. They can lead businesses to
become better, act more fairly, and keep the best talent. To achieve that, they need courage,
support, and an open role in leadership.
Case Questions
1. What does or can the HR function contribute to the business, according to Stefan Stern and the
Corporate Research Forum?
HR can make companies more ethical, more high-performing, and better managed. HR can
inform leadership, manage talent, and drive equity. HR can also raise difficult questions that
other people may not ask and allow the company to steer clear of trouble before it becomes one.
2. What are the potential barriers to the HR function in seeking to make this sort of contribution?
Potential barriers include lack of respect from others, risk aversion about challenging leadership,
and being left out of important decisions. HR could also lack training or resources to execute this
broader role.
References
Caldwell, R., & Storey, J. (2007). The role of HR advisors in facilitating organizational change.
Human Resource Management Journal, 17(2), 186–203. https://doi.org/10.1111/j.17488583.2007.00038.x
Stern, S. (2009). HR must raise its game. Financial Times. Retrieved from https://www.ft.com.
Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Putting ‘human’ back into
strategic human resource management. Human Resource Management Journal, 21(2), 93–
104. https://doi.org/10.1111/j.1748-8583.2010.00165.x