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The Changing Role of HR
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  • 1. 19 October 2011
  • 2. CONTENTS
  • 3.  End of 18th Century: Welfare Officers The World Wars: Labour/ Employment Manager 2001 till now: Strategic HR 1945 – 1979: Personnel Mgt 1980 – 2000: Human Resource / Compliance Officer
  • 4. Welfare Officer Labor Manager Personnel Management Human Resource Management Strategic HR → High
  • 5. → Compensation Benefits Safety & Workers’ Compensation Compliance Labor/Union Relations Staffing Training & Development Employee Relations Survey Action Planning continue to evolve Welfare / Employee Care Employee Welfare Labor Relations Employee Relations Personnel Admin Human Resource Organizational Effectiveness High Transactional Work Transformational Work Strategic HR Planning Organizational Design HR as Business Partner Culture & Image Performance Management HRIS COE Shared Svc Centre
  • 6. Globalization Economic uncertainties Technology innovations Profitability thru Cost & Growth Intensified Competition Increasing value Organizational capabilities → fast, responsive, cost effective Creating climate for action Unique competitive advantage Business savvy Align with strategy Strong bench strength Change catalyst Help biz leaders to achieve objectives
  • 7. Strategic 15% Strategic 60% HR needs to realign its service delivery model to add more strategic value to the organization % of available resources Need to expand focus beyond its traditional & transactional role.
  • 8. Dave Ulrich identifies four distinct roles of HR professional that may add value to a business and create sustainable competitive advantage.
  • 9. Active Role in setting strategic direction Effecting Transformation & Change Process Optimization & Efficiency Motivated & Competent Personnel P E O P L E P R O C E S S E S David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
  • 10. • Develops & aligns strategies with biz • Assists line managers in solving organization, people & change-related issues • Contributes to management team’s strategic decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development • Understands the organization’s culture & what is effective and ineffective • Institutionalizes change capability within the organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational effectiveness • Enhances management development David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 • Creates and delivers effective & efficient HR processes and services tailored to unique business needs • Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly deliver quality HR products and services • Develops strategies and helps implement actions that enhance human capital contribution • Helps build workforce commitment • Ensures fair, ethical, and equitable people processes and practices • VOE P E O P L E P R O C E S S E S
  • 11. • Develops & aligns strategies with biz • Assists line managers in solving organization, people & change-related issues • Contributes to management team’s strategic decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development • Understands the organization’s culture & what is effective and ineffective • Institutionalizes change capability within the organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational effectiveness • Enhances management development David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 • Creates and delivers effective & efficient HR processes and services tailored to unique business needs • Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly deliver quality HR products and services • Develops strategies and helps implement actions that enhance human capital contribution • Helps build workforce commitment • Ensures fair, ethical, and equitable people processes and practices P E O P L E P R O C E S S E S
  • 12. • Develops & aligns strategies with biz • Assists line managers in solving organization, people & change-related issues • Contributes to management team’s strategic decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development • Understands the organization’s culture & what is effective and ineffective • Institutionalizes change capability within the organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational effectiveness • Enhances management development David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996 • Creates and delivers effective & efficient HR processes and services tailored to unique business needs • Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly deliver quality HR products and services • Develops strategies and helps implement actions that enhance human capital contribution • Helps build workforce commitment • Ensures fair, ethical, and equitable people processes and practices P E O P L E P R O C E S S E S
  • 13. Participates in designing & defining organization’s strategies Contributes to management team’s strategic decision-making Focuses on aligning HR strategies & practices with business strategy  translate business strategy into HR priorities Strategically manage people & infrastructure to support the execution of strategies & the creation of value Strategically manages workforce development
  • 14. Facilitate strategy development for business teams by using different techniques Plan and facilitate strategy deployment to the whole organization Align the organization strategy with the business strategy to ensure it will be delivered Redesign the organization to support strategy HR as Strategic Partner should be able to:
  • 15. Knowledge Requirements Bring strong technical expertise to the table and an understanding of your company and its strategy. Develop new skills as needed. Understand the data, the financials, the market, etc. Staying focused on issues that matter to the business Delivering capabilities that make a real difference What are the issues that matter? What’s keeping business leaders up at night? What’s the “elephant on the table” regarding the future? What drives the bottom line? Focus on business objectives Focus on environment Provide organizational capabilities as required by the strategy People Goal alignment Culture Knowledge Requirements Bring strong technical expertise to the table and an understanding of your company and its strategy. Develop new skills as needed. Understand the data, the financials, the market, etc. Staying focused on issues that matter to the business What are the issues that matter? What’s keeping business leaders up at night? What’s the “elephant on the table” regarding the future? What drives the bottom line? Focus on business objectives Focus on environment Delivering capabilities that make a real difference Staying focused on issues that matter to the business What are the issues that matter? What’s keeping business leaders up at night? What’s the “elephant on the table” regarding the future? What drives the bottom line? Focus on business objectives Focus on environment Provide organizational capabilities as required by the business objectives: People Strategy Culture Delivering capabilities that make a real difference Staying focused on issues that matter to the business What are the issues that matter? What’s keeping business leaders up at night? What’s the “elephant on the table” regarding the future? What drives the bottom line? Focus on business objectives Focus on environment
  • 16. Becoming a true "player" on strategic business issues → able to challenge business leaders on their own ground Architect who can synthesize best practices e.g. Total Reward, Talent Management, OD, etc into integrated solutions and implement at speed Shifting from advising and consulting to challenging, provoking, confronting business leaders Letting go of the past and engaging with the future
  • 17. Serves as a catalyst for change Helps the organization build a capacity for change Plan change process with sponsors Ensure project team has necessary skills, training Coach sponsor Lead by example by doing it first within the HR function. Facilitate the discussions about the change and its content with all stakeholders Coach leaders through the change Acts as a coach/mentor to employees to help them understand change as it affects their lives Emphasize ‘what is in it’ for the individuals and address concerns Strike a balance between the business and employees Communicate, communicate, communicate Help employees to break from the past & adapt a new culture. Sustain the momentum Internalisation of new behaviour / way Recognize & celebrate success Build on the change
  • 18. Awareness of desired change Understanding of change direction Translation to the work setting Commitment to personal change Internalisation of new behaviour “Yeah, I saw the memo” “I understand where we need to go” “I know how we need to do our jobs differently” “OK, I’m ready to do it the new way” “This is the way we do things here” Information with some involvement sufficient here Significant involvement needed Change Process
  • 19. •Set the direction •Create the desire & will to change Unfreeze Mobilise Realise Reinforce Sustain •Make early changes & build confidence •Secure widespread shift in behaviour •Underpin with changes in structure & people processes •Strive for continuous performance improvement Break with the past Build the energy Performance lift-off Embed new culture Push the limits The change has to be managed and the HR Professionals have to be skilled in the change management process.
  • 20. A deep knowledge of change management processes Problem solving skills Coaching & conflict management skills Good communication, influencing & facilitation skills Networking, Collaboration & team-building abilities Business mastery Planning & project management skills Ability to tolerate ambiguity A risk taker
  • 21. Voice of the Employee Develop employee competence Equip managers with skills to respond effectively to employees; equip the employees with skills to overcome challenges Create climate for action increasing employee commitment and capability
  • 22.
  • 23. Strategic Partner vs. Employee Advocate Success in multiple-role framework requires that HR professionals balance the tension inherent in being a strategic partner on the one hand and an employee advocate on the other. HR professionals must demonstrate that they can both represent employee needs and implement management agenda, be the voice of the employee and the voice of management, act as partner to both employees and managers. HR professionals must strike a balance between the needs of these potentially competing stakeholders.
  • 24. Being an effective HR professional does not mean simply moving from operational to strategic work. It means learning to master both operational and strategic processes and people. The operational and transactional aspects of HR need to be handled well. No matter what other strategic and transformational work is being done, the trains still need to run on time. A strategic partner has multiple dimensions → HR professionals as business partners operate in each of the 4 roles. HR professionals, in order to meet the demands of these new roles, a shift in mindset and capability is a must.