Existing Risks to HR and Organization as a Whole

HR is a separate entity of an organization that works with the organization to contribute in the success of the business like any other department (Secord, 2003). HR department is responsible for coordinating all the departments and management to implement and accomplish strategic goals of the organization. HR professional’s skills and training capability develop skilled labor force to compete in an uncertain market in business environment. HR plays an important role in decision making to implement any strategic plan to accomplish the organizational goals (Werner & Desimone, 2011). HR works with senior management in establishing the strategic direction of the organizations. In this role, HRM also works with the highest level of management in aligning human resource efforts with the strategic business objectives of the organization.

HR as a strategic partner is important because it works with management and employees to help the organization in achieving financial success (Werner & Desimone, 2011). Now in situation, when HR remains a purely task-oriented department that is mostly administrative in nature and is not granted a seat at the strategy sessions in the top executive offices, the organization will not effectively implement their strategic plan and efforts with the strategic business objectives. In this context, the policy and operational risks arise and implementation of organizational strategies would move in wrong direction and loss will happen. Further, HR may not be able to improve the organizational performance as a whole and to find the ways to balance the work, conflicts and family issues for organizational success. The company may lack competitive compensation to keep talent within the organization and risks of talented human power arise (Boudreau, 2010). HR would not find chances to focus more on training and educating their employees on new techniques or training them to use technology, machines or programs for their jobs and to enhance organizational productivity.

Further, HR planning would lack the attempts to connect employees to the vision, needs, and strategic plans of the organization and organization would face several troubles such as decreasing sales, market share, customer’s loyalty and trust of investors (Dowling, Festing & Engle, 2008). In this context, financial, legal, environment and reputational risks may come up. The other risk such as health and safety also exists, when employees face job-related stress that can lead to lack of commitment, a drop in productivity and possibly employees may leave the company.