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Managing HR to Leading HR


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Presented By: Mr Sharad Gangal, Executive Vice President - HR & IR & Admin and Member of the Executive Council Thermax Limited – Pune

Published in: Business
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Managing HR to Leading HR

  1. 1. Managing HR to Leading HR Sharad Gangal – EVP HR, IR & Admin Date: 6th October 2012
  2. 2. Evolution of HRValue to Business = Complexity/Alignment of • Administration of • Administrative Absence, traini Focus • Created to ng, recruitmen • Compliance respond to t, compensatio • Traditional harshness in n Mind-set Industrial • State / Trade • Limited Scope Conditions Union of Activity Partnerships Human Strategic activities Labor Personal Welfare Resource Human Manager Mgmt Mgmt Resource • Administrator & Technical Expert • Business Partner • Focused on • Focus on Value Improved Added Activities Efficiency & • Proactive Effectiveness • Multidisciplinary • Compensation • Multifaceted linked to Roles productivity 1890 - 1913 1914 - 1939 1945 - 1979 1980 - 1990 2000 Onwards Industrial Revolution World Wars Globalization Human Resources
  3. 3. New Economy = New Strategic Agenda Challenges Organizations Are Experiencing • Redefinition of Sales Channels • Un-bundling & re- bundling of products, services & information • Increased Buyer Power • Increased Employee Power Human Resources
  4. 4. Imperatives for Human Resources Redefining • Prominent role in organizational design & managing effects of change Business Models • Communicating changes in the strategy Reducing Cycle • Help prepare organizations move faster and shorten the time to market Time • Salary adjustments to leadership development • Build a culture that embraces risk Fostering • Question what the culture should look like and how the organization Innovation transitions Securing • Understand what constitutes a compelling employment offer Talent • Build an employment brand that stands out in labor market Strategic • Integration of strategies and skills Partnering • Play a prominent role in identification of new partners and opportunities Redefining Role of • Ensures the organization‟s values remain both explicit and aligned with Corporate the demands and expectations of the customer Headquarters Human Resources
  5. 5. Changing Economy Demands Competitive Environment Competitive Environment • Gradual evolutionary • Frequent discontinuous change changes • Stability • Creative destruction • Clearly defined industry • Value chain in a flux boundaries • Competitive advantage NEW ECONOMY • Power from incumbency hard to sustain • Domestic markets • Global Markets THE PAST • Employee Loyalty • Employee free agency Business Imperative Business Imperative • Quality • Speed • Consistency & Control • Flexibility & agility • Scale economics • Digitation & unbundling • Mass customization • Strategic partnership • Customer led innovation • Customer intimacy • Workforce development • Technology led innovation • Risk Management • Organizational capabilities • Value chain dominance Human Resources
  6. 6. HR Priorities„Thought Leadership‟ to „Thought Partnership‟ Thought Leadership New Economy – HR As A Business Human Resources Role • Support critical business Human Resources Role The Past – HR As A Line Partner objectives • Serve company‟s customers • Sell traditional HR • Build organizational capabilities Interventions • Formulate business strategy Leader • Serve internal customers • Ensure value proposition • Build individual employee skills alignment • Execute business strategy • Develop guiding principles • Defined company culture • Develop policies and programs Measures of Effectiveness Measures of Effectiveness • Employee engagement & productivity • Employee satisfaction • External customer satisfaction • Internal customer satisfaction • HR activity levels • Staffing levels Thought Partnership Human Resources
  7. 7. Essentials for HRTransitioning Towards Being “Long Term Greedy” Delivering Results with Credible Activist Integrity, Sharing Information, Building Relationships of Trust, Doing HR with an Attitude Facilitating Change, Crafting Culture, Cultural Steward Valuing Culture, Personalized Culture Ensuring Today’s & Tomorrow’s Talent, Developing Talent, Shaping Talent Manager/ The Organization, Fostering Organizational Designer Communication, Designing Reward Systems Sustaining Strategic Agility, Strategy Architect Engaging Customers (Internal & External) Serving Value Chain, Interpreting Business Ally Social Context, Articulating Value Proposition, Leveraging Business Tech Operational Executor Implementing Workplace Policies, Advancing HR Technology Human Resources
  8. 8. Personal CredibilityImpeccable to HR Human Resource Competency Study Study By Dave Ulrich & Wayne Brockbank “Personal Credibility rated as the most critical competency for today’s HR Professional” • Why:  Develop relationship of trust with the management and instill confidence  Important to Line Managers that HR Leaders are trustworthy, conscientious with sensitive information and offer valuable credible insight to the organizations leadership  Organizations are demanding greater value being added by the HR Profession as ambassadors for this competency Human Resources
  9. 9. HR Value PropositionUlrich‟s Four – Role Model Future / Strategic Focus  Gives a strategic advantage Strategic Partner Change Agent Aligning HR & Managing Business Strategy Transformation & Change Active role in setting strategic direction Effecting transformation & Processes Change People Administrative Employee Expert Champion Managing the Firm‟s Managing Employee‟s HR Infrastructure Contribution Process Optimization & Motivated & Competent Efficient Personnel  Creates a lot of issues (Hygiene) Day to Day Operational Focus Human Resources
  10. 10. HR Function of the Future HR KEY HUMAN RESOURCE ROLES Developing & Applying Product/ Key Technologies Service Specialist Supports Energetically By • Developing a compelling vision and value proposition Installation & • Aligning the focus of its efforts on HR Customization of HR more strategic outcomes Generalist Products and • Re-negotiating their roles and Consulting to maximize relationships with operational Team Effectiveness leaders • Committing to major immediate competency development Alignment of HR Consulting, Products & HR Services with the Strategist Organization Strategy KEY HUMAN RESOURCE ROLES Human Resources
  11. 11. HR & Organizational LeadershipNext Generation Workforce Traditional Workforce 2020 Security Flexibility Salary Prosperity Benefits Opportunities Promotion Ladder Career Navigation Job Description Work Portfolio Consent Based Decisions Contingency Based Decisions Work Life Balance Work Life Integration Job Offer Value Proposition Managing Coaching Developing Specific Skills Maximizing Potential Goals & Missions Statement Roles & Aspiration Statements Company & Industry Focus Market Transitions & Adjacencies Focus Multinational Globalization Human Resources
  12. 12. HR & Organizational LeadershipNext Genre – Aligning Organizations & Workforce Globalization & rapidly evolving workforce redefines how HR thinks about competence, creativity, productivity & structuring of organizations:  HR as a storyteller (using technology & media)  Impacting 360˚  Creating a Buy-in for Gen Y, as they are not compliant  Talent Management Integrated to Business Strategies HR Envisioning HR Envisioning Mobilizing for Capitalizing on Cultivating Speed & Collective Creative Leaders Flexibility Intelligence Organizational Leadership Organizational Leadership • Improve Operational Efficiency • Expand into New Markets / Geographies • Develop New Products / Service Offerings Human Resources
  13. 13. Next Genre HR Human Resources
  14. 14. 2020 – Three WorldsStudy by PWC Human Resources
  15. 15. 2020 – Three WorldsPeople Management Characteristics “HR will continue to increase its alignment to the business, with greater accountability for delivering specific corporate objectives. This will result in a greater need for HR to quantify itself in respect of how we deliver against the bottom line. ...” Human Resources
  16. 16. QuestionsTHANK YOU! Human Resources