1. Roadmapfrom Transactionalto Transformational
Mr. Pramod Rajaram Patil patilpramod25@gmail.com CELL: +91 9076 4248 25
Introduction
If anything in this world is constant than it is CHANGE. The Human Resource, as it is in the current
state is no more similar to the earlier day personnel management or stick and carrot rule. Various factors both
internal and external to organization are molding Human Resource functions. Human Resource management is
one of the most complex and challenging fields of modern management. In addition to building up an effective
workforce, the Human Resource manager must take into consideration the expectation of the employees and of
the society in general.
Human Resource department has shed away its old skin and is ready to accommodate and solve
current business challenges. The role of Human Resource is transforming from a support function role to
decision taking function. Organization have understood that in order to sustain and grow in today’s highly
volatile and competitive economy, one have to calibrate Human Resource department at every function / level
in decision making process. Human Resource management is transformed into strategic Human Resource
management to achieve competitive edge above all competitors.
According to Leon C. Megginson, the term Human Resource refers to “the total knowledge, skills,
creative abilities, talents and aptitudes of an organization’s workforce, as well as the values attitudes and
beliefs of the individuals involved”. Many successful companies are empowering employees, by letting
workers manage almost everything, from budgets to inventory control, with little direct supervision by top
management. However, today developing the capacity for flexibility has become a significant aspect of a
company’s corporate Human Resource strategy.
Human Resource professionals have to deal with existing challenges like -
 Developing future leaders
 Attracting talent
 Creating talent pool
 Good workforce planning
 Talent management
 Rewarding talent
 Performance management
 Training and development
 Developing multi-skill professional
 Retention of talent.
In addition to this the Human Resource professionals have to face newer challenges like
 Sexual harassment of women at work place
 Industrial mentoring
 Corporate social responsibility
 Industrial relation and dispute settlement
 Creating inspirational workplace
 Investing in learning and training.
 Employee work life balance
 Reducing Cost to Company
 Employee engagement activities
 Inclusion

2. Roadmapfrom Transactionalto Transformational
Mr. Pramod Rajaram Patil patilpramod25@gmail.com CELL: +91 9076 4248 25
Roadmapfrom Transactionalto Transformational
There is a radical difference between the modern Human Resource management and the personnel
management that was prevalent decades ago. With the turn of the twentieth century, the managerial
philosophy that has defined the personnel functions has undergone tremendous changes. Over the past 80
years, the scientific management approach and the human relation approach have come up and declined
and presently, the human resource approach has gained prominence. But today’s Human Resource
department is in transformational mode and the latest requirement of organizational are having Human
resource Department as strategic partner and thus Strategic Human resource Management is need of time.
Phase 1 – Carrot and Stick Method.
Most business owners and managers of the early 1900’s believed that if the employees were to be
effectively managed, they have to be constantly supervised and threatened with the loss of their jobs. All
employees were considered to be equal in terms of productivity, and when they were not able to achieve set
targets they were dismissed.
Phase 2 - The Scientific Management
However, the scientific management approach challenged these beliefs; it suggested that managers adopt a
scientific and objective approach to determine how work could be most efficiently designed. This approach
resulted in work methods and techniques that emphasized employees output rather than employee’s
satisfaction. During the early years of the 20th
century, managers embraced the concept of ‘the economic
man’ which suggested that a worker was basically motivated by economic gain and that financial
incentives alone could maximize the workers output. During this time personnel departments of big
manufacturing organizations had the traditional responsibilities of recruiting, selecting and training staff
and ensuring the health and the safety of the employees.
Phase 3 – Human Relation
The Hawthorne Studies conducted during the 1930’s and 1940’s, forced organization to shift their attention
from the scientific management approach to human relation approach. Results of the Hawthorne Studies
suggested that employee productivity was affected not only by the way the job was designed and the
economic reward but also by the certain social and psychological factors. It was recognized that treating
employees with respect will improve employee satisfaction and help in achieving higher productivity.
The growing strength of unions was also a major factor responsible for the shift to human relation. The rise
of unionism gave workers the legal right to organize and to bargain collectively worth employers over
wages, job security, benefits, and other work conditions. Although the human relations approach was
undoubtedly instrumental in improving the working environment for many workers, it was not very
successfulin increasing worker output and improving job satisfaction.
It was evident that good feeling alone does not ensure high levels of employee satisfaction and
productivity. Thus during the 1950’s and 1960’s, management of various organization began to give up this
approach, which was considered outdated.

3. Roadmapfrom Transactionalto Transformational
Mr. Pramod Rajaram Patil patilpramod25@gmail.com CELL: +91 9076 4248 25
Phase 4 – Human Resources
Organization then adopted human relation approach, which treats organizational goals and employee needs
not as separate and exclusive, but as being mutual and compatible, so that one need not be gained at the
cost of the other.
Research in behavioral sciences during 1970’s suggested that treating people and resources rather than as
factors of production or as human beings, act on the basis of emotions alone, would lead to real benefits for
the organization as well as for the employees. Implementation of HR programs and practices should
comply with the goal of balancing individual and organizational needs and meeting both these goals.
Phase 5 – Strategic Human Resource Management
However with globalization, the free markets, environmental, social and technological changes, extensive
competition, increasing scarcity and cost of human resources has increased expectations from employees
and employers both resulting in restructuring of HR functions. It is important to know how organization
makes decision in this complex, rapidly changing world. This process is referred to as strategic
management. HRM extends beyond functional areas and is integrated with the other important parts of the
organization namely operations, marketing, finance and so on. Well conceived HR strategies are significant
basis for competition and major competitive weapon.
Needfor transformation of HR
The HR functions have to be streamlined with the organizational strategies to overcome newer
market challenges which stimulated HR professionals to come up with strategies which can ensure
sustainability and higher growth.
When looking revenue wise, in coming 10 years, emerging economies like India and China will lead in
GDP and contribute to 17 % in revenue. The growth opportunities and increased industrialization in
emerging markets has change the face of workforce dynamically. The dependency ratio (no of working
people/ no of non working people) in emerging markets are positive as well as the GDP growth rate is
higher which is forcing to HR professionals to amend existing HR functions to suit the trend. The average
age of workforce in India and China is 28 & 38 respectively. Thus this indicates opportunities for HR in
creating talent pool. But this talent management is to be undertaken after considering below macro and
micro talent trends.
Macro talent trends
 Shortage of qualified graduates
 Educational proficiency –high potential people
 Workforce participation – flattened hierarchies
 Aging workforce – European and American
 Wage inflation –in emerging markets
 Shortened of experience
 Turnover

4. Roadmapfrom Transactionalto Transformational
Mr. Pramod Rajaram Patil patilpramod25@gmail.com CELL: +91 9076 4248 25
Micro Talent trends
 Transformation from extrinsic motivation to intrinsic motivation – 21st
century employees seeks
for 3 things – autonomy, mastery & purpose in their jobs. Thus extrinsic or monetary motivational
tools only cannot satisfy employee. There is a need to look at the intrinsic motivational angle in
order to keep today’s workforce highly productive. Hence HR role has to incorporate this micro
talent trend.
Talking about transformation process, the key focus should be on developing and making TALENT
STRATEGY as DEFAULT STRATEGY. This strategy should be simple/ adaptable, high in content &
commercial in nature. This talent strategy should be implemented at all cross functional departments
aiming to create every manager as talent manager irrespective of departments. You cannot be a good
manager/ leader without being talent manager/ strategist.
The transformation activity (basically investment in HR functions) has been carried out on two levels -
Talent needs & organizational needs depending upon the duration of the activity
Talent
Needs
Organizational
Needs
Short term longterm
HR transformations from transactional functions is all due to change in the world wide workforce
demographics, their needs and abilities, shift in economies and growth of free markets. Every HR
professional has to focus and understand that they have most crucial role in developing HR strategies for
maximizing talents and organizational growth through designing and implementing it on realtime basis.
Professional
(current leaders)
Aspirational
(future leaders)
Interventional
(Problem solving)
Transformational
(Future changes)
FOCUS
DURATION

5. Roadmapfrom Transactionalto Transformational
Mr. Pramod Rajaram Patil patilpramod25@gmail.com CELL: +91 9076 4248 25
Examples of HR transformation –
 Sexual harassment ofwomen at work place –
The brutal gang rape in Delhi last December has put the spotlight on women’s safety and sexual
harassment in the workplace and made organizations realize that they need to be more sensitive as well
as alert to this issue & place it at the top of their organizational agenda. IBM, Infosys technologies and
TCS have formulated strict anti - harassment policies and guidelines for women’s safety. Companies
are coming up with ZERO TOLERANCE POLICY to curb menace against women employees at
workplace
 Industrial relation and dispute settlement –
The recent labour and unions problems in Maruti & Suzuki, Manesar and other automakers was a latest
issue HR professionals dealt with. After giving immediate hikes to settle the unrest, focus was turned
to revamp the contract labour rules in organization. Salaries are heading north in the auto industry, but
ironically it is toxic combination of labour militancy, rigid labour laws and shortage of skilled
manpower that has triggered the recent wage hike. Realigning the HR functions to accommodate
unions for smooth operations is another challenge.
 Investing in learning and training –
Aircel is growing champions by investing in learning. Aircel is investing in creating a culture of
learning in order to grow a robust pipeline of leaders within the organization. The other arm of Aircel’s
people strategy is the in – the house learning and training centre, the Aircel academy. It facilitates to
develop replacement for higher positions within organization. The Aircel’s academy’s robust
mechanism of grooming talent through mentoring, coaching and other various programmes has
equipped Aircel to mititgate urgent and strategic business needs.
 Creating inspirational workplace
1. Egalitarism - in an egalitarian workplace every employee leads without title. Going beyond
hierarchies and creating flatter levels is promoting egalitarian work culture. NetApp India, CSC
India, EKA software Solutions, Google, Infosys, CISCO, Tata Steel are few to name who are
implementing Egalitarism work culture.
2. In Trident Limited, going beyond designation is new funda. Nothing motivates employee’s more
than his organization bestowing complete ownership of his task on him. It not just stirs the
leadership spirit in him but also allows him to take charge of his domain, while stimulating him to
innovate and strive for excellence and this is exactly what Trident Limited is doing. For effective
execution, trident limited has adopted a flat organization structure where the talent pool is divided
into three cadres that are the institution builders, development coaches and frontline entrepreneurs.
3. Theorem India Pvt. Ltd boasts of a culture where people come to work every day not because they
have to, but because they want to. About 80 – 90% of the company’s mid – to senior – level
position are filled internally. This is because of focusing more on developing internal managers for
promotions not only helps in reducing recruiting cost but also saves on T& D expenses

6. Roadmapfrom Transactionalto Transformational
Mr. Pramod Rajaram Patil patilpramod25@gmail.com CELL: +91 9076 4248 25
 Expert opinion by Dave Ulrich
In his latest book Ulrich defines Global HR competencies as “mastering competitive value from the
outside in”. Ulrich identifies six domains of HR competencies in his model. They are-
1. Credible activist: you walk the talk
2. Strategic “positioner”
3. Capability builder
4. Change champions
5. HR innovator and integrator
6. Technology proponent
 Inclusion at workplace –
Inclusionhasemergedasnewareaof focus.Includingandworkingwith LGBT (Lesbians,Gays,
Bisexual,and Transgender) andphysicallyhandicaps asworkforce islatestchallenge.Thisfacilitates
to developexperience curve foremployer andinitiatelearningonbothsides. TATA TCS(ACE
program) focusesoninclusionandemployeeengagementactivitiesparallel. Companieslike Delloite,
IBM, Merck and majorlyall multi national organizationssupport thisinclusionphilosophy. Having
varietyof staff on boardhelpsinunderstandingthe potentialcustomersalsothusinclusionis
expectedtorise inall organization.
 Developing Employee engagement Activities & total reward system as a firewall against
employee turnover –
All organizations face one major HR hurdle – retention of existing workforce. Many HR professionals
preach and practice that having a good employee engagement rules and having a proper and well
described total reward system (includes mix of monetary & non monetary benefits) can help in
retaining. This both activities are given proper weightage in HR budgeting which is aligned with
organizational budgets. Employers like TCS, Johnson & Johnson, Crisil etc do give importance for this
activities.
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