HR directors are losing power when it comes to firms' management and strategic decisions, according to a study conducted by the ESADE institute in Barcelona. The study found that HR directors do not master the language and codes of management enough. Furthermore, due to globalization, HR directors are losing influence on the issue of salaries. (Ref. 061076)
HR directors don’t understand the language of management. HR departments are increasingly put aside when it comes to big decisions in the firm. In 2005, only 57% of HR departments were implicated in these decisions, down from 65% in 1995. The percentage of HR departments that are not at all consulted during big strategic decisions has also increased. Says Carlos Obeso, professor at the HR department of ESADE, many HR directors have a superficial knowledge of management keys and language. This l
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