Managing transformational change: the role of human resource professionals

In the past decade human resource management issues featured prominently in debates over the competitiveness and human resource professionals were expected to ascend to positions of greater influence in corporate strategy making and implementation. Despite numerous calls for a paradigm shift towards a more ‘strategic’ focus for human resource management research, developments in both practice and research fell far short of expectations. Thus, the process of transforming human resource policy into a strategic asset for employees, individual firms or the American economy is not yet complete. The paper suggests that the ‘strategic’ human resource management models of the 1980s were too limited and reactive in character because they depended so heavily on the values, strategies and support of top executives and line managers. A model capable of achieving sustained and transformational change needs to incorporate more active roles of other stakeholders in the employment relationship, including government, employes and union representatives as well as line managers and top executives. The paper starts by reviewing the evidence on innovations in human resource management in the past decade and then outlines the implications of the change model for human resource management and industrial relations theory, policy and practice. Special emphasis is given to the role of human resource professionals as potential change agents or facilitators of the transformational process.