Are you saying that HR needs to be more strategic and less administrative, with the administration of HR being taken on by line management? If that's the case, I agree 100%. Employee engagement, performance management, nurturing and developing should be undertaken by line management who are in constant direct contact with subordinates, but the TOOLS and EQUIPPING to do this should be an HR initiative. Perhaps a change from the title "human resource management" to something like "performance development management" would be in order. I, however still think that nobody can do this better than someone who is already working internally, with occasional external consultant engagement for direction in new best practice.