Hr value proposition


Published on

Published in: Business, Technology

Hr value proposition

  2. 2. 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.
  3. 3. 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.
  4. 4. 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.
  5. 5. 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?
  6. 6. 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.
  7. 7. 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.
  8. 8. 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.
  9. 9. 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.
  10. 10. 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.
  11. 11. 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.
  12. 12. 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.
  13. 13. 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.
  14. 14. 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.
  15. 15. 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.
  16. 16. 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
  17. 17. 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
  18. 18. 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 .
  19. 19. 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.
  20. 20. 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.