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Hr value proposition

Hr value proposition






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    Hr value proposition  Hr value proposition Presentation Transcript

    • CHALLENGE ONE : GLOBALIZATION • HR will need to treat models and processes for attaining global agility, effectiveness and competitiveness. CHALLENGE TWO : VALUE CHAIN FOR BUSINESS COMPETITIVENESS • Competitiveness requires faster customer responsiveness – innovation, faster decisions, leading an industry in price or value , effectively linking with suppliers and vendors to build a value chain for customers. • To support value chain argument, research indicates that employee attitude correlates highly with customer attitude.
    • CHALLENGE THREE : PROFITABILITY THROUGH COST & GROWTH • How can the organization create a commitment to rapid growth and the culture that supports it while simultaneously controlling cost. • What are the HR implications of entering new businesses, of leveraging core technologies that lead into unfamiliar businesses.
    • CHALLENGE FOUR : CAPABILITY FOCUSED HR professionals need to constantly seek the capabilities necessary for success and routinely ask the following questions: • What capabilities currently exists and what will be required in the future. • How can capabilities be aligned with business strategies? • How can HR practices be designed to create the needed capabilities.
    • CHALLENGE FIVE : CHANGE, CHANGE, CHANGE HR professionals need to help their organizations to change and deal with following questions. • How to encourage the risk-taking necessary for change without putting the firm in jeopardy? • How to determine which HR practices to change for transformation? • How to engage the heart & mind of everyone in the organization to change? • How to unlearn what has been learnt?
    • CHALLENGE SIX : TECHNOLOGY • HR professionals responsible for redefining work at their firm need to figure out how to make technology a viable & productive part of the work setting. • They need to be ahead of the information curve and learn to leverage information for business results.
    • CHALLENGE SEVEN : ATTRACTING, RETAINING & MEASURING COMPETENCE AND INTELLECTUAL CAPITAL. • Securing intellectual capital will involve learning to share ideas and information throughout a company more quickly. HR professionals must create the policies and practices that will encourage such learning. • Creating organization in which intellectual capital is constantly updated will be a significant aspect of HR work in future.
    • CHALLENGE EIGHT : TRANSFORMATION • Transformation changes the fundamental image of the business as seen by customers. • Managers and HR professionals need to focus on transformation to create fundamental and enduring change.
    • IMPLICATIONS OF BUSINESS CHALLENGES FOR HR AS A PROFESSION • As champions of competitiveness, HR professionals must focus more on the deliverables of their work rather than doing their work better. • They must learn to measure results in terms of business competitiveness rather than employee comfort and to lead cultural transformation. • The HR function has been plagued by myths. It is time these myths are overcome.
    • MYTHS V/S NEW REALITIES IN HR FUNCTION • People get into HR because they like people. • Anyone can do HR. • HR deals with the soft side and therefore cannot be measured and linked to Business performance. • HR professionals must create the practices that make employees more competitive, not more comfortable. • HR processes & systems are based on proper theory & research which needs to be mastered. • The impact of HR practices on business can and must be measured. HR professionals must learn how to translate their work into financial performance.
    • MYTHS V/S NEW REALITIES IN HR FUNCTION • HR focuses on costs, which must be controlled. • HR job is to be the policy police and the health and happiness patrol. • HR professionals should learn to add value and not reduce cost. • HR practices do not exist to make employees just happy but to make employees committed & competent.
    • MYTHS V/S NEW REALITIES IN HR FUNCTION • HR is full of fads. • HR is staffed by nice people. • HR is HR’s job. • HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon & more authority. • HR professionals should be confrontative as well as supportive. • HR work is as important to line managers as are finance, strategy & other support functions. HR professionals should join with mangers in championing HR issues.
    • THE PREMISE OF HR VALUE • HR value proposition means that HR practices and professionals are able to produce positive outcomes for key stakeholders-employees, line managers, customers & investors. • When others receive value from HR work, HR will be credible, respected & influential. • Attempts at HR effectiveness without defining value will not be desirable.
    • THE PREMISE OF THE HR VALUE PROPOSITION • Influence with impact occurs when HR professionals start with the beliefs and goals of the receivers. • Who are the key stakeholders I must serve? • What are the goals & values of the receiving stakeholders? • What is important to them? • What exactly do they want? • When these requirements are fully understood, then the HR professional can show an investment in an HR practice that will help the stakeholders gain value.
    • THE EVOLVING PICTURE OF HR: FROM PROFESSIONAL TO STRATEGIC PARTNER • New economic realities are putting pressure on HR to widen its focus from the administrative role it has traditionally played to a broader strategic role. • The new economic paradigm has highlighted the importance of intangible assets, such as brand recognition, knowledge, innovation and particularly human capital. • HR must move from a ‘Bottom – up’ perspective (i.e. emphasizing compliance and traditional HR) to a ‘Top - down’ perspective (i.e. emphasizing the implementation of strategy). • HR need innovative systems that will let them demonstrate their influence on measures that is critical to business – namely profitability and shareholder value.
    • HOW DO WE MEASURE THE VALUE OF HR SERVICES? • Two most common questions are raised by HR practitioners: • How can we measure the value of what we do in HR in terms that line and General Managers will understand and respect. • How can HR metrics be incorporated in organization's measures of business performance. • To demonstrate its strategic contribution to senior managers, HR needs a measurement system that focuses on two dimensions. • Cost measurement • Value creation
    • A SIMPLE ILLUSTRATION OF VALUE CREATION ____________________________________________ _____ FINANCIAL _________________________________________________ CUSTOMER _________________________________________________ INTERNAL/BUSINESS PROCESS _________________________________________________ LEARNING & GROWTH Return of Capital Employed Customer Loyalty On-time Delivery Process Quality Process Cycle Time Employee Skills
    • HR TRANSFORMATION WITH A VALUE PROPOSITION HAS SIX IMPLICATIONS • First : HR work does not begin with HR – it begins with the business. • To be real Business Partners , HR Professionals need the line of sight between their activities and the best interest of key stake holders . • Second Two: The ultimate receivers of business reside in market place that companies serve. • HR should have a line of sight to the marketplace . • Knowledge of market realities will enable HR in creating Human abilities and organizational capabilities that generates products & services that customer demands .
    • HR TRANSFORMATION WITH A VALUE PROPOSITION HAS SIX IMPLICATIONS • Third : HR creates value when it acts as an enabler to create competitive advantage. • Competitive advantage exists when a firm is able to do something unique that competitors cannot easily copy . • Four: HR professionals must align practices with the requirements of internal and external stakeholders.
    • HR TRANSFORMATION WITH A VALUE PROPOSITION HAS SIX IMPLICATIONS • Five: HR professionals need to acquire the knowledge & skills necessary to link HR activity to stakeholders value. • When HR fails to make it , it allows gaps to occur between Hr practices &stakeholder demands . • Six: HR professionals need to view company’s key stakeholders from a unique and powerful perspective.