The document discusses the evolution of the role of HR from an administrative expert to a strategic partner and leader, highlighting how HR practices have become central to delivering value through both administrative efficiency and strategic policies and interventions. It also outlines the shifting expectations for HR professionals, from being employee advocates and human capital developers to serving as change agents, business experts, knowledge managers, and consultants working in close partnership with business leaders.

1. “Everyday I remind myself that my
inner and outer life are based on the
labour so other men, living and dead,
and that I must exert myself in order to
give in the same measure as I have
received and am still receiving”
Albert Einstein
Managing Contract Labour &
Effective Industrial Relations

2. Presentation Outline
 IR & Business Scenario
 Evolution of CPSEs
 Evolution of HR’s Role
 Dynamics of IR
 Features of Contemporary IR
 Factors Impacting IR
 New Framework
 Contract Labour Management
 Road Ahead

3. Evolving Business Eco-system
3
 Economic turbulence
 State of art technology
 World class business products & practices
 Cost competitiveness
 Corporate Governance
 Inclusive society
 Demanding stake-holders, Emergence of new
stake-holders
 Stringent environmental policies
 Demographic dividend – Generation Y
 Knowledge Workers
 War for Talent resource
Era of Exponential Change

4.  Quality Challenge
 Quality & cost consciousness
 People Challenge
 Competent, innovative, proactive, systems driven
and entrepreneurial
 Technology Challenge
 New technology, absorbing it, adapting it and
continuously improving upon it
 Culture
 Well laid out systems and procedures, feedback,
commitment
 Speed
 Speedier decision making, Execution Excellence
Organisational Challenges

5. Organisational Challenges
 Lean
 Cost Competitiveness, Enhanced
productivity
 Investing on people
 Competency building
 Learning Organizations
• R & D focus, Creativity, Innovation
 Flat & Non hierarchical Structure
 Employees goal driven, not procedure
driven
 Social responsibility
 Sense of duty towards the community

6. Changing Rules of Game
6
Contemporary Progressive Organisations –
Determinants
 High Performing
 Highly Competitive
 Vibrant HR Systems and Processes
 Continuously reinventing
 Innovative and creative culture
 Learning organisation
 Satisfied stakeholders
- Employees/Representative bodies - Community
- Govt./State - Owners/Financial Institutions

7. Leveraging HR
7
 Business – HR partnership
 Evolving HR policy and practices (people
centric)
 Employee Engagement
 Continuous challenge – Capability building
 Learning opportunity and professional
growth
 Robust differentiation system
 Conducive IR
 Transparency
 Mutual Trust & Respect, Camraderie
 Work life balance

8. HR Function – Evolution
 INDUSTRIAL RELATIONS
 COMPLIANCE REGIME
 ROLE OF TRADE UNIONS
 COMPENSATION SYSTEMS
 PERSONNEL
 WELFARE STATE
 SOCIAL SECURITY
 HRM
 EMPLOYEE ENGAGEMENT
 TRAINING & DEVELOPMENT
 RETENTION STRATEGIES
 STRATEGIC HR - BUSINESS PARTNER

9. CPSEs Evolving in Sync with Times
 Phase I - Working similar to Govt. Deptt. – Budgetary
support from Govt.
 Phase II - Withdrawal of Budgetary Support by Govt.
 Phase III - Liberalization, Competition due to New Players
 Phase IV - Era of Competitiveness & Efficiencies, New
Technology, Modernization/ Expansion,
Value added products, Strict regulatory
framework (Environment, Corp.
Governance, Statutes)
CPSEs - Moving to Next Orbit

10. EMERGING ISSUES &
CHALLENGES
 SHIFTING PARADIGM
 MIX OF SENIORS WITH GEN-Y
 CHANGING / FLEXIBLE JOB
DESCRIPTION
 MERIT VS. SENIORITY
 BENCHMARKING OF PRACTICES/
BENEFITS
 DIVERSE WORKFORCE

11. EMERGING ISSUES &
CHALLENGES
CHANGING PATTERN OF WORK:
 GLOBALIZATION & BUSINESS RESTRUCTURING
 EMERGING TECHNOLOGIES
 CLOSER COLLABORATION BETWEEN INDUSTRY
& ACADEMICIA: SKILLS, CAPACITY
 MECHANIZATION WITH LESSER HUMAN
INTERVENTION
 MENTORSHIP & REVERSE MENTORSHIP

12. EVOLVING DYNAMICS - INDUSTRIAL
RELATIONS
 CHANGING DEMOGRAPHICS
 SHIFTING LABOUR MARKET
 AGE & SKILL PROFILE
 KNOWLEDGE WORKERS
 MULTI-CULTURAL WORKFORCE
 CHANGING SOCIO-CULTURAL MILIEU
 HIGHER EXPECTATIONS OF YOUTH
 ENHANCED AWARENESS AMONG WORKFORCE
 INCREASED MOBILITY – SOCIAL, GEOGRAPHICAL
 NEW SET OF VALUES & BEHAVIOUR
 CHANGE IN NATURE OF ENGAGEMENT/WORKING
 VIRTUAL SYSTEM OF WORKING – LOSS OF CONNECT
 OUTSOURCING /CONTRACTING
 TEMPORARY / PERIODICAL EMPLOYMENT
 UNORGANISED SECTOR

13. INSTITUTIONAL MECHANISMS
 INT. LABOUR ORGN. – RATIFICATIONS
 INTERNATIONAL DIALOGUE & INITIATIVES
 GOVT (CENTRE & STATE)
 JUDICIAL PRONOUNCEMENTS
 TRIPARTITE BODIES
 INDIAN LABOUR CONFERENCE
 BIPARTITE BODIES
 STATUTORY COMMITTEES

14. Bipartite Forums - SAIL
National
NJCS
JCSSI
Corporate
Committee on Production
& Productivity
Plant
Production
Safety
Grievance
Welfare
Shop Floor
Production
Safety
Welfare
Bipartite
Forums

15. Features of Contemporary IR
 Reforms in Labour Legislation not keeping pace
with business realities
 Proactive initiatives by Management – Dilution of
bargaining process
 Unions marginalised at the workplace – fading of
ideology
 Rise in individualism/individual negotiation
 Greater concern for individual rights – equal
opportunities
 Blurring of boundaries of work location
 Emphasis on human resource management
 Persisting issues of trust and fairness

16. Factors Impacting IR
 Workplaces getting smaller
 Flexibility and fragmentation of the workforce
 Pervasiveness and urgency of change
 Changing composition of workforce - diversity
 Issues of work-life balance
 Influence of new age culture/individualism at work
 Erosion of ethics and values

17. New Conceptual Framework
 Traditional collective model is less relevant in
many workplaces
 Need to accommodate rise in individualism and
flexibility
 Need a model that can address core issues in
the employment relationship of trust, exchange
and control
 Psychological contract can meet these
requirements

18. The Model Framework
The Good
Employer
The High
Quality
Workplace
The
Deal
Satisfied
And
Productive
Workers

19. The Deal
Employer
Delivers on
Promises
Employees
Deliver on
Promises
Fairness
Trust
Commitment
Well-Being
Performance

20. The Good Employer
Employee
Partnership
Flexible
Employment
Practices
Climate of Positive
Organisational
Support
Progressive Human
Resource
Practices
The
Good
Employer
High
Quality
Workplace

21. High Quality Workplace
 Reasonable demands/manageable workload
 Some personal control over work
 Support from supervisors and colleagues
 Positive relationships at work
 Role clarity
 Involvement in changes

22. ROAD AHEAD
 REINFORCING COMMUNICATION
 CONVEY TASKS & TARGETS IN CLEAR TERMS
 ENCOURAGE TWO WAY COMMUNICATION
 ENSURE COMMUNICATION CHANNELS AT EACH LEVEL
 GO FOR BIPARTITE SOLUTIONS
 MAINTAIN ROBUST GRIEVANCE HANDLING SYSTEM
 COMMUNICATE PERIODICALLY WITH FAMILIES

23. ROAD AHEAD
HUMAN RESOURCE DEVELOPMENT
 EACH EMPLOYEE POSITION CRITICAL
 COMPETENCY MAPPING
 FREEZING SKILL REQUIREMENTS
 FOCUSED TECHNICAL TRAINING
 CULTIVATING SELF ESTEEM OF EMPLOYEES

24. ROAD AHEAD
 STRENGTHENING INFORMATION TECHNOLOGY
• INCREASING CONNECTEDNESS
• ENABLING QUICK RESPONSE
• PROMOTE TRANSPARENCY, EQUITY & FAIR PLAY
• ENHANCE SELF ESTEEM OF EMPLOYEES

25. ROAD AHEAD
 REINFORCING ROLE OF TRADE UNIONS
• CONTINUOUS TWO WAY DIALOGUE
• INCREASING ENGAGEMENT IN ORGANISATIONAL
PRIORITIES
• STRENGTHEN COLLECTIVE BARGAINING

26. ROAD AHEAD
 IMPROVING WORK PLACE
• ENHANCING AMENITIES/FACILITIES
• REORGANISING WORK FLOW / PROCESSES
• ENRICHMENT OF JOBS
• MOTIVATIONAL MEASURES

27. ROAD AHEAD
WORK LIFE BALANCE
• PROMOTING SOCIAL EVENTS / INITIATIVES
• FOCUS ON FAMILY
• RECREATIONAL INITIATIVES

28. ROAD AHEAD
 MANAGING CONTRACT WORKERS
 IMPROVE COMPLIANCES
 ENSURE SOCIAL SECURITY
 PROVIDE SKILL DEVELOPMENT
PLATFORM
- INCREASE EMPLOYABILITY
 BUILD IN FAIR COMPENSATION
PACKAGES
- ALSO AGENTS OF GROWTH

29. Journey towards Effective IR
continues…….
“Trust as mutual confidence or loyalty
or ethical behavior, or whether you
deal with its fruits of empowerment
and teamwork and synergy, trust is
the ultimate root and source of our
influence”

30. Evolution of HR roles
Early -1990s Post - 2000 Evolution of thinking
Employee
champion
Employee
Advocate (EA)
Human capital
(HC) developer
Employees are increasingly critical to the success of
organizations. EA focuses on today’s employee;
HC developer focuses on how employees prepare for the
future.
Administrative
expert
Functional
expert
HR practices are central to HR value. Some HR practices
are delivered through administrative efficiency (such as
technology), and others through policies, menus, and
interventions, expending the “Functional expert” role.
Change agent Strategic
partner
Being a strategic partner has multiple dimensions:
business expert, change agent, knowledge manager, and
consultant. Being a change agent represents only part of
the strategic partner role.
Strategic
partner
Strategic
partner
Leader
As above
Sum of the first four roles equals leadership, but being an
HR leader also has implications for leading the HR function,
collaborating with other functions, ensuring corporate
governance and monitoring.
Source: Dave Ulrich, Human Resource Champions (Boston:Harvard Business School Press)