Infowan HR
“To be a strategic partner, an HRBP must first understand the theory behind the practice.” - InfowanHR

Table of Contents
What HR theories should HRBP know to become a successful strategic partner in an organization?
Knowing HR theories for strategy building



Dated: 29th Aug 2023
Reading time: 6 minutes
What HR theories should HRBP know to become a successful strategic partner in an organization?
Recently, I read a book called The HR Business Partner Handbook. Becoming a successful HRBP is not an easy path, however, there are three key points to remember:
1.  Knowing HR practices, theories, and how things work.
2.  Knowing the business: why the company is in this business, how it does things, and what exactly       it does.
3.  Knowing the people: It's important to know each person, what he or she does, their role, and       their impact.
If you lack any of these three things, you will not excel in your job as an HRBP.

In the beginning of the book, it addresses the issue that most of the HRBPs will never become strategic partners, they will only stay in operations. And this transition is a serious part of the game, and I think it can be done through achieving operational excellence. Inculcating the use of HRTech and Payroll HRMS software to ace operational agility is the to achieve operational excellence If your operational (daily, weekly) tasks/projects are well set and structured, then you can think about a strategy that ultimately pushes you to become a strategic partner here.

Human resource management involves a significant amount of human psychology in addition to the use of HRMS software and automation for operational tasks with payroll software. This extends to the application of concepts and theories concerning human behavior, particularly within the realm of organizational employee psychology.

HRBPs who have a strong understanding of human behavior concepts and theories are better equipped to develop and implement effective HR strategies. This can lead to a number of benefits for the organization, including improved employee engagement and productivity, reduced turnover, and enhanced innovation.

Since the beginning of time, theorists have studied human behavior in an effort to find empirically based explanations for various aspects of social phenomena. Many theorists have offered possible reasons behind why people act as they do using a specific concept or idea. Together, these theories help provide us with an understanding of the workings of human behavior. One human behavior that has a number of theories behind it is motivation. While each theory is rather specific, if you look at the principal ideas behind each one, it can help you gain a more comprehensive understanding of motivation.

Knowing HR theories for strategy building

Human Resources (HR) professionals should be familiar with various theories and models that can inform their planning and strategic decisions within an organization. These theories help HR practitioners understand human behavior, organizational dynamics, and the factors that influence workforce management. Here are some key HR theories and concepts that can be valuable when planning and strategizing:

1. Human Capital Theory: This theory emphasizes that employees are valuable assets and investments for an organization. HR professionals use this theory to justify investments in training, education, and development to enhance the skills and knowledge of the workforce.

2. Motivation Theories (e.g., Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory): Understanding motivation theories helps HR managers design compensation and reward systems, as well as create work environments that stimulate and satisfy employees' needs and motivations.

3. Expectancy Theory: This theory suggests that people are motivated to act in a certain way if they believe their actions will lead to a desired outcome. HR can use this theory to design performance incentive systems that align with employees' expectations and desired outcomes.

4. Agency Theory: Agency theory examines the relationship between principals (e.g., shareholders) and agents (e.g., managers or employees). HR can apply this theory to design incentive structures and performance metrics to align the interests of employees with those of the organization.

5. Organizational Behavior Theories (e.g., Theory X and Theory Y): These theories help HR professionals understand different assumptions about employee behavior and management approaches. It can guide HR in creating management strategies that align with the chosen assumptions.

6. Change Management Theories (e.g., Lewin's Change Model, Kotter's 8-Step Change Model): HR plays a critical role in managing organizational change. These theories provide frameworks for effectively implementing and managing change initiatives within an organization.

7. Resource-Based View (RBV) of the Firm: This theory suggests that an organization's competitive advantage comes from its unique and valuable resources, including its human resources. HR can use this theory to identify and leverage the organization's strengths in talent and capabilities.

8. Competency-Based HR: This approach focuses on identifying and developing key competencies and skills required for success in an organization. HR can use competency models to guide recruitment, training, and performance evaluation.

9. Balanced Scorecard: This strategic management framework emphasizes the importance of a balanced approach to measuring organizational performance, including financial, customer, internal processes, and learning and growth perspectives. HR can use this to align HR strategies with overall organizational goals.

10. Employee Engagement Models (e.g., Gallup's Q12): These models provide a framework for measuring and improving employee engagement, which is critical for organizational success. HR can use them to identify areas for improvement and develop strategies to increase engagement.

11. Strategic Human Resource Management (SHRM): This approach involves aligning HR practices and policies with the organization's strategic objectives. HR professionals use SHRM principles to ensure that HR strategies support the overall business strategy.

12. Talent Management and Succession Planning: These concepts focus on identifying, developing, and retaining high-potential employees to ensure a pipeline of future leaders. HR uses these approaches to address leadership and talent gaps.

These theories and concepts provide a foundation for HR professionals to develop effective strategies, policies, and practices that support the organization's goals and objectives. Depending on the specific needs and challenges of the organization, HR may draw from multiple theories and models to create a comprehensive and tailored approach to human resource management.