Effectiveness of a corporate HR department in an Australian public-sector entity during commercialization and corporatization

Abstract

This study examines the effectiveness of the strategic human resource management (HRM) function performed by the corporate human resource department of an Australian public-sector entity, before and after its corporatization. Multiple methods (including a survey of senior managers and semi-structured interviews) were used to collect the data. Despite an improvement in the overall level of strategic integration between HRM and strategic management, the rating of strategic HRM role effectiveness remained low. The results indicate that the strategic HRM function, as a corporate headquarters function, was more effective in its administrative role than in a value-adding function. The difficulty in balancing the dual roles of a corporate headquarter unit, together with the challenges of becoming a strategic business partner to line managers, provided the major impediments to effective strategic HRM.