The state of strategic human resource measurement in Spanish banks

Abstract

The new strategic role of Human Resource (HR) management that many academics and practitioners have been calling for requires that HR systems not only achieve operational excellence in performing their traditional activities but that they also contribute to developing the strategic capabilities needed by the organization to maintain its competitive advantage. This new orientation has important implications for the evaluation of an organization's HR system. Traditional measures of the HR function tend to focus on internal efficiency. In order to determine the success of an HR system in achieving its new role as strategic partner, the strategic impact of HR practices must be evaluated. This requires measuring the contribution of the HR system toward building organizational capabilities, including employee skills, behaviors and attitudes, and the impact that changes at this level have on organizational results. This study presents a strategic HR measurement framework and investigates the current state of HR measurement in five large Spanish banks.