For those that recognize this truth, the new economy is giving a totally new role to management professionals -- none more so than those in the human resources (HR) function.

Although some business commentators say that the jury still has to decide where much of the people aspects of the new economy are to be placed, HR seems an obvious choice. On that basis, HR has a critical and lasting role to play, as our organizations begin to shape themselves into businesses that can effectively survive in the global world of the new economy.

Look at it this way. For organizations to grow and prosper, they will have to be very, very good at one thing: getting ideas moving rapidly around the business, and allowing people -- who have perhaps never met -- to share their thoughts and expertise. To make that work, it is necessary to do more than just hard wire the business with Lotus Notes. You need to create a climate where people want to share as a matter of course. HR, with its long history of helping people to develop their skills and meet their increasingly broader expectations, is an ideal part of the business to take responsibility for this.

And talking of people, smart HR managers have already harnessed the power of the new economy’s technology to improve both recruitment and retention rates.

In recruitment, they have built increasingly sophisticated websites that act as just that: a web to capture much-needed people. Organizations that are perceived as having cool job opportunities are inundated with applicants eager to come and work.

In retention, the ability to create sophisticated programs that outline individual career and role structures, compensation patterns, and training and development opportunities, are all being used in the battle against excessive turnover. In some organizations, new technology is also being used to help track former employees by staying in touch with them on a regular basis. Organizations that have developed this approach say that they are having success in getting ex-employees to return when critical projects demand new hires.

Elsewhere, as employees at all levels demand greater transparency from their firms, technology brings the opportunity for HR professionals to not only publicize what is happening, but tailor news and events more and more to the individuals' needs. The question, "What does this mean for me?", can be easily answered more so than ever before. Equally, HR can use technology to quickly brief managers and supervisors on emerging issues, guaranteeing that the same message gets passed to everyone, no matter where they are in the world.

This brings us to the other key role that HR needs to play in the new economy organization: official communicator. If people are the key to future success, then keeping them up-to-date and aware of development is a must. HR’s role has to be making certain that messages are clear and that they reach the right audience.

It also has to make sure that an interactive system is in place so employees can ask questions and get answers quickly. On that basis, HR needs to be able to effectively develop both Internet and Intranet services. They need to have the staff in place to not only police the messages that are sent out, but to act as a clearinghouse for everything that comes into the system. As some organizations have found out to their cost, failure to properly control Internet or Intranet systems can lead to serious problems -- especially when the wrong messages get out to the community at large. This is a role that HR can -- and should -- take, ensuring that website and other electronic content meets the right type of criteria. Too many companies still don't take the advent of the Internet seriously enough.

All these developments indicate that HR is moving rapidly from a reactive to a more proactive role within today’s and tomorrow’s organization. As people become an ever more critical commodity, so HR must become much more of a strategy-driven role within our organizations. Being able to look forward and see future resourcing needs, advise on manpower issues and better understand the hiring policies of rival firms, will all be expected of HR professionals as companies struggle to come to terms with the new, global economy.

Within this strategic perspective, HR expertise will also be required in looking at new ways of working. As more and more people demand a more flexible approach to their working lives, so the ability to work from home or other locations will become a key issue. HR’s role in helping organizations understand these needs and working on ways to implement the technology to fulfill employees' aspirations will be crucial.

Equally, HR’s strategic view will be required in the outsourcing of nonessential tasks. Basic recruitment and training, payroll and benefit administration can all be outsourced to other firms. Add to that the parceling out of many tasks like call center services, and HR’s role in the new economy is not only varied, but also vital to the future success of a business. Without a deep understanding of the technology that drives the new economy and its impact on the people in a business, organizations will have trouble prospering in the longer term. HR’s role as a mentor, advisor and strategic visionary in linking the technology to the people, is one that firms need to fully embrace if they have not done so already.

This article is courtesy of the Management Centre Europe (MCE), Brussels, Belgium. You can contact MCE at 32.2.543.24.00, or via the Web at www.mce-ama.com.

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