The Evolution of HR


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We will present a historical review of HR function and conclude that HR’s greatest opportunity is to develop the organizational capability to be a relevant and respected internal consulting organization focused on talent.

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The Evolution of HR

  2. 2. ARE YOU JUST FILLING IN GAPS BY ADDING PEOPLE Twitter @AskTheHRguy - Follow us! | | 2 You have to be able to multiply your talent by (re)combining skills, knowledge and organizational processes thereby increasing the contributions of individuals, teams, workgroups and entire workforces to increase adaptability, learning, flexibility, innovation and performance and as such create extraordinary value through people. TRADITIONAL ORGANIZATION Built by adding spare parts on need to have bases TALENT POWERED ORGANIZATION Engineered to truly compete on talent
  3. 3. ENGINEERED TO TRULY COMPETE ON TALENT Twitter @AskTheHRguy - Follow us! | | 3 “You’re looking for three things, generally, in a person,” says Warren Buffett. “Intelligence, energy, and integrity. And if they don’t have the last one, don’t even bother with the first two.”
  4. 4. As the role and impact of the HR profession continue to evolve, we have reached a critical crossroad. Together and now, business leaders and HR professionals have the opportunity to understand the history that brings us to our current situation. We have to be informed by predictable trends, and to make the transformation necessary to result in organizational competitive advantage and HR functional viability. THE CROSSROAD Twitter @AskTheHRguy - Follow us! | | 4
  5. 5. BUILDING RESPECT 5 WE KNOW THAT HR PROFESSIONALS ARE EXPERIENCING THE NEGATIVE VIEWS OF THE FUNCTION DIRECTLY. Some individuals and companies still cling to an old style of personnel administration and policy police, and some leaders and companies more fully recognize the connection between talent and results, and the function of HR is well integrated with the implementation of business strategy. Twitter @AskTheHRguy - Follow us! | | Lack of power Walking a tightrope Skeptical clients Negative view of HR Vulnerability Overwhelmed In a recent study, Kahnweiler identified five key challenges faced by successful HR professionals
  6. 6. DEFINING THE CHALLENGES FOR HR HR as a profession does not have the same “grounding” in legally mandated processes and reporting as does Finance, so there continues to be more “art” than “science” and much greater variability in the quality and completeness of how the work is defined and delivered. HR in the C-Suite has not been uniformly accepted. CFO Research Services found that HR reports to the CEO in only about 52 percent of companies. The role of HR as a function within organizations might best be described as a scattergram. There are huge variations by industry, global geography, and CEO preferences on what HR is asked to do. HR as a personal skill set must also continue to grow and develop. The activities and skills to deliver the transactional parts of HR are quite different than those required to deliver the transformational parts of HR. The role of HR as policy police has to be put on the table. Some describe HR as a “henchmen for the chief financial officer” and as a “dark bureaucratic force that blindly enforces nonsensical rules, resists creativity, and impedes constructive change.” Twitter @AskTheHRguy - Follow us! | | 6 HR must get relevant now or risk continued marginalization Profession - Art vs. Science Influence - Boardroom vs Department Skills - Transactional vs Transformational Perception - Enforcer vs. Advocate HR Challenges
  7. 7. EVOLUTION OF HR ACCOUNTABILITIES Twitter @AskTheHRguy - Follow us! | | 7 Small Business & Guilds - Did not yet even exist - Owners owned the HR issues Industrial Revolution - Labor Relations - People as interchangeable parts Civil Service & WWI - Industrial Relations - Workers’ rights and more formalized processes Modern Organizations - Organization Effectiveness; Human Capital; Organizational Capability - No new official names, but lots of “morphing” as the transactional parts get outsourced and the transformational parts get defined Global Economy and e-Enabled Technologies - TBD - Still Evolving, Focus on Talent; Capability; Culture; Consulting—Challenged to Be an Effective Internal Consulting Organization 1920 1940 1960 1980 2000 2014 Pre -1900 - 1900 TIME Scientific Management & WWII - Personnel Administration - Efficiency experts and more highly evolved HR processes Civil Rights & Compliance - Personnel - Legal compliance and reporting; “policy police” Human Relations, the Knowledge/Service Economy, and Mergers & Acquisitions - Human Resources People - Relevance in a fast-changing world; motivation and “human relations”
  8. 8. THE HR MATURITY SCALE Twitter @AskTheHRguy - Follow us! | | 8 Stage 1 Stage 2 Stage 3 Stage4 Stage 5 Stage 6 Stage 7 Personnel Administration Personnel Administration Personnel Management Effective HR Management HRM Transition phase from operational HR to strategic focus VALUE CREATION Personnel Administration No Conscious Personnel Management Personnel Management Good Professional Practice HRM HRM becomes integral to business operations Effective Business Partner Organization Organisation becomes a holistic system REACTIVE STRATEGIC Most ’HR’ departments are really just old style Personnel departments but with a new name. They do lots of new activities (psychometrics, 360 feedback etc.) but none of these activities have much, if any, value because they are not part of a strategy.HUMANCAPITALBARRIER
  9. 9. FRAMEWORK OF HR ACTIVITIES SUPPORTING BUSINESS STRATEGY Twitter @AskTheHRguy - Follow us! | | 9 Reward management GradingHRPolicies Job evaluation Job analysis Organization development Business process design Strategy Development Manpower Planning Training & Development Leadership & Assessment Competencies Performance management Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance ...
  10. 10. THE ORGANIZATIONAL CASCADE Twitter @AskTheHRguy - Follow us! | | 10 Jobs Organizational structure Strategy Plan Organization Mission Job Analysis describes contribution Job Evaluation ‘evaluates’ contribution
  11. 11. FOUR ROLES AND SIXTEEN ACCOUNTABILITIES OF HR Twitter @AskTheHRguy - Follow us! | | 11 • Employee Relations • Safety & Workers’ Compensation • Diversity and Saudization • Compensation • Benefits • HR Information Systems • Compliance • Talent Acquisition • Talent Management (Saudization) • Organizational Design • Survey Action Planning • Performance Management • Training & Development • Strategic HR Planning • HR as Business Partner • Employer Brand & Employment Value Proposition Strategic Partner Change Agent Admin Expert Employee Relations Expert
  12. 12. HR CONTINUES TO EVOLVE Twitter @AskTheHRguy - Follow us! | | 12 Limit Liability & Protect Downside Impact/ContributiontotheBusiness Add Value & Maximize Upside Labor Relations Employee Relations Personnel Human Resources HRBP Labor Relations Safety & Workers’ Comp Employee Relations Benefits Compliance Survey Action Planning Training & Development Compensation Diversity & Loclaization Performance Management HR Information Systems Organizational Design Talent Acquisition & Talent Management Employer Brand & EVP HR as A Business Partner Strategic HR Planning Talent Analytics A Century of Evolution in the Function