- Strategic Human Resource Management as Ethical Stewardship. - We suggest that HRPs need to raise the standard of their performance and that the competitive demands of the modern economic environment create impact ethical duties that HRPs owe to their organizations. - strategic human resource management, ethical stewardship, transformative leadership, roles ot human resource professionals, ethical duties in human resources, employee commitment. - Research about the strategic role of human resource management (HRM) has exponentially increased over the last decade (Hartel etal., 2007), with scholars and practitionen acknowledging the critical impor- tance of ethical issues in HRM as key factors in align- ing and guiding organizational success (Hernandez, 2008. - Werhane et al. - Scholars have also noted that the strategic focus of human resource systems is more effective when aligned with an organization's mission, purposes, values, and structure (Becker and. - We begin by citing the strategic human resource management (SHRM) literature to provide a contex- tual firamework for examining the importance of the alignment and congruence of HPJVl systems (Becker and Huselid, 2006. - Integrating the importance of SHPJVl with this firamework of ethical stewardship, we identify important but sometimes implicit leadership roles that human resource professionals (HRPs) ought to contribute in optimizing the ability of their organi- zations to achieve that long-term wealth creation (Senge, 2006). - Strategic human resource managetnent. - Understanding of the important role of SHRM in the modem organization provides an important context to understanding the ethical duties owed by HRPs.. - 172 Cam Caldwell et al.. - values, and performance (Becker et al., 2001). - This linking of an organization's overall strategy with aligned human resource systems is critical to the maximization of performance outcomes (Ulrich and Brockbank, 2005) in a world that is increasingly dependent upon the initiative, creativity, and com- mitment of employees to succeed (Covey, 2004;. - A growing body of empirical evidence has suggested that aligned systems in combination create superior organizational outcomes as compared to the implementation of individual human resource practices, although many scholars note that an incremental approach is more hkely to occur (Pfeffer, 1998. - Sun et al., 2007). - Becker and Huselid (1999) noted that integrating key human resource flinctions to refirame an organi- zation's internal environment results in significandy higher organizational outcomes and financial perfor- mance that is superior to what firms can attain by implementing individual human resource program elements piecemeal. - and (3) a human resource structure focusing on human resource managers as business partners to other departments. - 75) have emphasized in their discussions of the roles of orga- nizational leaders, the key to effective organizational change is execution. - 49-51) noted that a successful transfor- mation of the human resource function focused on three key change factors:. - Focus on cost-effectiveness: Reframing the human resource function to deliver services at a reduced cost made the HRM function more financially accountable.. - Merger of the HRM function with the strategic role:. - Strategic Human Resource Management as Ethical Stewardship knowledge, skills, and abiUties contribute to the. - (Husehd et al., 1997, p. - Clardy (2008) has suggested that to manage the core competencies and human capital of the entire firm, HRPs must clearly understand the strategic goals of the firm and must then play a key leadership role in taking advantage of those competencies. - This inability to respond to the needs of the modem organization is an implicit but often unacknowledged and unin- tended violation of the responsibilities and duties owed to the organizations that those HRPs serve (Hosmer, 2007).. - The role of the leader as a steward in the governance of organizations has received increasing attention in the post-Enron era (cf Carroll and Buchholtz, 2007;. - Caldwell et al., 2008. - (Caldwell et al., 2008, p. - In pursuit of the best interests of each stakeholder. - 174 Cam Caldwell et al.. - 11) emphasized that "(t)he first task of the leader is to define reality". - Nonetheless, human resource managers have not typically reported performing a major role as ethical educators within their organizations nor have they been successful when they attempted to perform that role (Coltrin, 1991). - Dvir et al. - Cifing the example of the U.S. - Strategic Human Resource Management as Ethical Stewardship competitive advantage empower people to enhance. - Becker et al. - (Conger et al., 2000, p. - While writing of effective human resource leadership, Pfeffer (1998, p. - 125) cited the case of Elmar Toime of the New Zealand Post who implemented high trust practices based upon close relationships with individual employees. - style demonstrates the influence of charismatic lead- ership in implementing human resource practices which transformed the New Zealand Post "from a typical government bureaucracy to a profitable state- owned enterpnse and the most efficient post office in the world". - In their classic study of the most successful businesses of the past century, Colhns and Porras (2004, pp. - 176 Cam Caldwell et al.. - This commitment to values and principles of prin- ciple-centered leadership is a key element in estab- lishing and implementing human resource systems that earn employee commitment and trust (Covey, 2004).. - 11), one of the most highly re- garded advocates of servant leadership, opined that organizational leaders had the ethical responsibility to be "a servant and a debtor". - (Caldwell et al., 2002, p. - The HRPs are Level 5 leaders when they dem- onstrate their fierce commitment to the success of the organization while creating systems that recognize employee contributions and give credit to employees for achieving an organization's success. - 17-40) found that the leaders of the organizations that evolved "from good to great". - Strategic Human Resource Management as Ethical Stewardship 111 errors made by an organization and working. - Human resource professionals act as both ethical stewards and Level 5 leaders when they create human resource systems and processes that are fully ahgned with the normative and instrumental goals of the organization while giving employees credit for their role in the accomplishment of those goals (Caldwell et al., 2007). - These aligned and congruent systems and processes balance the needs of the organization with a commitment to the best interests of its stakeholders (Pauchant, 2005) and create reward systems that also reward employees for contributing to organizational success.. - Covenantal leadership integrates the roles of the leader as a servant, role model, a source of inspiration and as a creator of new insight and meaning (Caldwell et al., 2007. - Caldwell et al., 2007). - (2007) have emphasized the vital role of knowledge creation in fii-ms as an important element of the human resource architec- ture and have advocated the importance of adopting a learning organization culture to create a sustainable competitive advantage. - HRPs who adopt the leadership behaviors of ethical stewardship understand the value of the individual as well as the organization while holding both people and the organization in high regard.. - 178 Cam Caldwell et al.. - Human resource management practices that are integrated in a manner that reinforces strategic objectives can play a major role in enabling organizations to utilize employees as the source of strategic competitive advantage (Hartel et al., 2007;. - Konzelmann et al., 2006). - Although designing aligned human resource systems and firaming a well-conceived strategy are important, it is in implementing these systems that a firm achieves desired organizational outcomes (Pfeffer, 1998. - HRPs owe their organizations a set of obligations and duties that include helping the top management team to contribute to the strategic effective- ness of the firm while simultaneously meeting the needs of organizational members (Barnard, 1938. - Rarely are organizations able to earn the trust of employ- ees if HRM systems and processes conflict with the strategic goals of the firm (Pfeffer, 1998). - We identify the importance of the ethical duties inherent in best leadership practices as essential ele- ments of the HRPs' responsibilities in honoring their organizational roles. - Strategic Human Resource Management as Ethical Stewardship long-term wealth (Colhns, 2001. - We reinforce the importance of human resource pro- fessionals elevating their contribution to organiza- tions professionally, ethically, and strategically.. - 3-4) to optimize the potential of the modem organization.. - Werhane et al., 2004). - Pinnington, et al., 2007).. - Caldwell et al., 2008). - The resource-based view of the firm emphasizes the importance of meeting the needs of employees to retain them as a resource-based source of competitive advantage (Barney and Wright, 1998). - 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