Rethinking HRM in an era of rapid change and flux


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My presentation during the OGM Human Resource event at the University of Aruba, June 1st, 2012.

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Rethinking HRM in an era of rapid change and flux

  1. 1. HRM SeminarNew perspectives on Human ResourceManagement – Moving Aruba forward Rethinking HRM in an era of rapid change and flux Edward Erasmus MA University of Aruba Organization, Governance and Management June 1, 2012
  2. 2. What we will do in the next 30 minutes…Have a conversation about key forces shapingthe role of Human Resources (HR)• Discuss some mega trends• How organizations adapt• Rethinking the role of HR• HRM challenges
  3. 3. A growing attention for the role of HRM in organizations…
  4. 4. Megatrends impacting organizations Speed of Hyper- Socialinnovation connectivity movement Sustainable Changing enterprising lifestylesComplexity of Growth
  5. 5. 1. Speed of innovation Disruptive innovation is going to dominate your daily schedule….if you walk you stand still, soyou’ll need to run pretty fast toadvance just a little.
  6. 6. Disruptive innovation…….an improvement or advancement that enhances aproduct, service or a process in a manner that has neverbeen expected by the market…..• Good for consumers• Disruptive for existing industries (some will adapt, others will fade away)
  7. 7. Disruptive innovation
  8. 8. Disruptive innovation
  9. 9. Disruptive innovation
  10. 10. Disruptive innovation
  11. 11. Radical innovation…The biggest fear by big companies in thisinnovation era is not to be able to recognizeradical innovation and (timely) capitalize on itwhen it appears….
  12. 12. Radical innovation… are we catching up?XX: “Doing business via the internet is leading to the death of many businesses in Aruba and consequently unemployment of many people?”EE: “So what you do think businesses in Aruba should do?”XX: “We should do something about that darn internet...”
  13. 13. Radical innovation… (Aruba example)
  14. 14. 2. Technology andhyperconnectivity
  15. 15. Technology
  16. 16. Technology
  17. 17. Technology
  18. 18. Technology….Techs and gadgets used athome will exceed level oftechnology being used atwork and being taught atschools…
  19. 19. Telecommuting • Increasing webification of applications • Cloud computing • Online storage • Remote access
  20. 20. 3. SOCIAL MOVEMENT& CONSUMER-CONTROLLED MEDIA You don’t control consumers… Consumers control you...
  21. 21. Thanks to social networking:• Society is moving towards a more social, collaborative, interactive and responsive web• Higher interconnectivity• Building communitiesSN gives people a powerful voice…..
  22. 22. From social media to social movement
  23. 23. Say goodbye to the era of monologue
  24. 24. The new communication model is dialogue
  25. 25. Social Networking has changed the‘game’ in marketing and communication,but also how organizations need torespond to consumer needs….
  26. 26. Mass customization…. Co-creation… and co-branding…. take on new forms
  27. 27. Co-creation….
  28. 28. Starbucks gave consumers a voice....the result: over 50,000 product ideas
  29. 29. • Forget B2C or B2B…… it’s now P2P (person-2-person)…customers want to connect and interact with companies on a 1:1 social level…and those who can deliver that, will gain substantial competitive edge...
  30. 30. The end of traditional marketing…• Opportunities to engage with customers in a new ways….• However, managing SM is posting new challenges for organizations• Everyone is a marketer
  31. 31. 4. THE COMPLEXITY OF GROWTH “This is the end of easy growth” -Raghuram Rajan
  32. 32. ‘Questioning growth is deemed to be the actof lunatics, idealists and revolutionaries. Butquestion it we must.’ - Tim Jackson
  33. 33. Revenue growth will not be easy…• Increasing cost control• Upturn in productivity
  34. 34. 5. SUSTAINABLE ENTERPRISING “We are living on this planet as if we had another one to go to.” - Terri Swearingen
  35. 35. Think sustainable….• Environmental resources are limited and are quite sensitive to everything that we do.• We are starting to experience the effects of the actions of generations that came before us.To make sure that future generations will notexperience worse, we need to be aware of the idealsand requirements of sustainability….
  36. 36. Why adopting sustainability practices..?• Without a sustainable society, there is no sustainable business….• Not only sustaining the necessary environmental resources, but also the social resources, including employees, customers (the community), and corporate reputation
  37. 37. Sustainable enterprising1. Incorporating principles of sustainability into each business decisions.2. Supplying or consuming environmentally friendly products or services that replaces demand for non green products and/or services.3. Greener than traditional competition.4. Enduring commitment to environmental principles in the business operations.
  38. 38. 6. CHANGING LIFESTYLES AND SOCIAL VALUES‘Gen Y is an “experience” culture. They donot want to be told what to like or what todo. They want to experience the world forthemselves and pass their own judgment.’ - Bea Fields
  39. 39. Millennial (Generation Y)
  40. 40. Generation YWhat they think of themselves:“Brilliant, thought-provoking, eager, and exciting”What older generations think of them:“Over-entitled, egotistical, know it-alls”
  41. 41. Fun - FabulousFortune - Fame
  42. 42. Juvenile crimePerformance in education Narcissistic behavior Workforce challenges
  43. 43. Changing values…
  44. 44. If you think you’ve goteverything under control…..Think again….
  45. 45. The main question is…How can organizations remaincompetitive, be able to attract, organize,nurture and retain that core of talentedpeople, in order to deliver value in asustainable manner to a diverse group ofdemanding consumers?
  46. 46. How organizations are coping• Create and embrace diversity in knowledge, people and resources.• Focus on ‘creation’…not just ‘operation’.• Think in terms of value, ‘Win-Win’ and long-term.• Embrace new forms of capital.
  47. 47. Rethinking organizations…
  48. 48. Organizations?..• An organization is way more that just structure and system...• An organization is a series of conversations and dialogues between people, external or internal, in pursuit of solutions….
  49. 49. Sir, yes sir!
  50. 50. Hierarchy models
  51. 51. Matrix Organizations
  52. 52. Network-based structure
  53. 53. Totally new radical forms of organizations
  54. 54. Building organizations around values …and NOT the other way aroundCreating value (Apple example)• Unparalleled stream of breakthrough products• Re-defined how people engage the world with digital devices• Significant contribution to culture• High quality
  55. 55. Rethinking Capital
  56. 56. New forms of capital Intellectual CapitalCreative Social Capital Capital
  57. 57. Intellectual capital Collective knowledge (whether or not documented) of the individuals in an organization or society. This knowledge can be used to produce wealth, multiply output of physical assets, gain competitive advantage, and/or to enhance value of other types of capital. IC can include:• skills and knowledge that a company has developed about how to make its goods or services;• individual employees or groups of employees whose knowledge is deemed critical to a companys continued success (knowledge about processes, customers, research results, and other information)
  58. 58. Social capital = Social relations that have productive benefits. People acting and interacting well in communities can create better solutions, greater accountability, and more economic growth.“Social capital is about the value of social networks, bonding similar people and bridging between diverse people, with norms of reciprocity.” (Dekker and Uslaner, 2001)
  59. 59. Creative capitalPeople/societies exploring, embracing, and nurturingcreativity. Creativity -> Invention -> Innovation human creativity is the ultimate economic resource
  60. 60. “…creativity will be the single most importantleadership quality for organizations forging a paththrough the complexity of today’s marketplace,workplace, and community.” ~IBM Global CEO Study (2010)
  61. 61. Time to start educating ourleaders in a new paradigm…
  62. 62. Time to start educating ourfuture leaders in a newparadigm…
  63. 63. Rethinking HRM
  64. 64. Back to pragmatism and contextualization• No ‘one size fits all’ model• HRM should fit within the organizational context• Strategic of nature• Value-driven
  65. 65. The Organizational Context for HRM Culture Structure People Organizational Processes Context For HRM Systems Size Resources
  66. 66. Changing role of HRM• Strong HR leadership - develop clear visions, motivate others to join, and help them work toward achieving it.• Acute future orientation - how changing environmental, organizational, and workforce factors will likely influence the business, and be prepared to deliver appropriate solutions.• Flexibility and creativity - responsive to the changing needs of its client organization.• Delivering value – from a non-revenue generating function to a value-creating activity.
  67. 67. Changing role of HRMTo build and strengthen the unique set oforganizational capabilities that give thecompany its competitive advantage….thathelp it to serve its customers in ameaningfully differentiated way.
  68. 68. Some new HR challengesSocial media policy – managing and monitoringwhat is being said about the company and how socialmedia is usedMillennials – how to motivate and meet theexpectations of the millennial generation?Changing norms and values – re-evaluateexisting policies or not?
  69. 69. Some new HR challengesSecurity and privacy issues –use of companysmart phones, tablets (iPads) and other gadgetsTeam building vs. flexibility in the workplace– cloud computing and remote accessWork-life blend –intertwined work and private lives,24/7 on-call
  70. 70. Some new HR challengesManaging the ageing workforce –managing‘brain drain’, attracting new talentContinuous learning – learning as an ongoingactivity, which is carried out daily and ad infinitum??? - ……
  71. 71. HRM: a macro/micro approach• Preparing the Aruban workforce for the challenges ahead requires a holistic approach.• NISP (Nos Aruba 2025), The Green Gateway, Chamber of Commerce, etc.
  72. 72. We see innovationTitle as a means to: • unlock talents of all of our people • develop every area of the economy and, in particular, wherever high value added businesses can flourish and grow • generate sustainable prosperity
  73. 73. Our own definition of innovation… “Transforming the (current) resources of our nation (Aruba) through the creativity of people into new resources and wealth.”
  74. 74. So in essence….• The global landscape is changing quickly.• These trends have an impact on Aruba as well.• No ‘cook-book’ approach for organization and HRM design (pragmatic and contextual).• The role of HR today is one that is far more strategic than ever before.• New challenges are coming along.• Micro/macro approach.
  75. 75. Edward M. Erasmus, MAe.erasmus@fzanv.comerasmus.bpas@gmail.comFacebook: