Investigating stakeholders' perceptions of HR contribution: A case study in a multinational corporation

Abstract

HR functions have undergone a substantial transformation and the role of HR has changed from an administrative operator to a strategic business partner. Companies are striving for organizational effectiveness, and it has forced HR to demonstrate what the relationship between HR processes, HR outcomes and organizational performance is.

There were two research objectives in this study. The first objective was to provide an overview of the evolvement of strategic human resource management through a case study on a multinational corporation which has experienced a transformation during the last two decades. The second objective was to explore the perceptions different stakeholders in a multinational corporation have of HR contribution. Furthermore, it was investigated if the perceived HR contribution between the HR stakeholder groups is consistent.

The first research objective was approached by way of qualitative interviews which provided support for the argument that one of the most considerable ways HR can improve organizational performance is to create a strong and participative company culture which enables cross-functional collaboration. Survey research was conducted as a means of reaching the second research objective. According to the survey results, HR contribution is perceived generally in a positive way among all HR stakeholders. However, the survey results revealed that there are statistically significant differences between the perceptions of different stakeholder groups. It was also discovered that HR leaders tend to perceive HR contribution in a more positive way than local HR professionals and line managers. Due to the devolution of HR responsibilities, today, HRM is a partnership of several HR stakeholders. Shared perceptions are significant when HR desires to reach harmonious and cooperative ways of working.