Working as a strategic business partner requires a much deeper and broader understanding of business issues.

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HR professionals have changed the way they work.Working as a strategic business partner requires a much deeper and broader understanding of business issues.Possible strategic tasks for HR include making workforce strategies fundamental to company strategies and goals; increasing HR's role in strategic planning,mergers,and acquisitions; developing awareness or an understanding of the business; and helping line managers achieve their goals.A useful way to better understand how HR serves as a strategic business partner is to think about the use of capital for value creation.Capital refers to the factors that enable companies to generate income,higher company stock prices,economic value,strong positive brand identity,and reputation.There is a variety of capital that companies use to create value,including financial capital (cash)and capital equipment (state-of-the-art robotics used in manufacturing).Employees represent a specific type of capital called human capital.Human capital,as defined by economists,refers to sets of collective skills,knowledge,and ability that employees can apply to create value for their employers,and HR professionals are instrumental in managing human capital (employees).

Working as a Strategic Business Partner Requires a Much Deeper