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Evolution of HRM
HISTORY & TRANSITION
Brief history of HR Function
The early days:
Welfare Officer
The World Wars:
Personnel
Management
1945 – 1979:
Collective Bargain
& Industrial
Relations
1980 – 2000:
Compliance
Officer
2001 – Till date:
Strategic HR
a) Paternalistic
role
b) Care for
injured and
sick
employees
c) Protection of
women &
children
a) State / Trade
Union
partnership
b) Management
of absence,
training &
recruitment
c) Productivity
improvement
a) Trade Union
negotiation
b) Policy
adherence
c) Regulation of
pay
a) Focus on
improving
efficiency &
effectiveness
b) Administrator
and
functional/tec
hnical expert
c) HR generalist
a) Strategic
business
partner
b) Change agent
c) Employee
champion
d) Centre of
excellence
e) Shared
services
The HR Journey
ValueImpact/contributiontobusiness
Welfare
Officer
Labor
Manager
Personnel
Management
Human
Resources
Management
Strategic
HRM
i. Administrative
focus
ii. Compliance
iii.Traditional
mindset
iv.Limited scope
of activities
v. Specialized
function
i. Administrative
focus with
enlarged scope
of activities
ii. Support
function
iii.Less reactive,
more proactive
i. Strategic HR
ii. Business Partnering
iii.Focus on value
added activities
iv.Proactive
v. Multi disciplinary
vi.Multi faceted roles
1890 – 1913 1914 – 1939 1945 – 1979 1980 – 1990 2000 – Till now
2nd Industrial
Revolution
World Wars Globalization
High
The HR Journey – nature of work
ValueImpact/contributiontobusiness
Employee
Welfare
Labor
Relations
Employee
Relations
Personnel
Admin
Human
Resources
High
Organizational
Effectiveness
Continue
to
evolve
Safety &
workers
compensationWelfare/
Employee
Care
Labor
Union
Relations
Employee
Relations
Benefits
Compliance
Compensation
Training
&
Development
Stuffing
Survey
Action
Plan
Transactional
Work
Transformational
Work
Organizational
Development
PMS
HRIS
Culture
&
Image
HRBP
Strategic
HR
Planning COE
Shared
Services
The changing role of HR
The business
environment
• Globalization
• Economic
uncertainties
• Technology
innovation
• Profitability
through cost and
growth
• Intensified
competition
Requires companies
to focus on
• Increasing value
• Organizational
capabilities  fast,
responsive, cost
effective
• Creating climate for
action
• Unique competitive
advantage
Requires HR to
change
• Business savvy
• Align with strategy
• Strong bench
strength
• Change catalyst
• Help business
leaders to achieve
objectives
Reality check – What CEOs want from HR
The role of HR – Ulrich’s Model
FUTURISTIC FOCUS
PROCESSES
P
E
O
P
L
E
DAY TO DAY / OPERATIONAL FOCUS
Strategic Partner –
Aligning HR & Business Strategy
Active role in setting strategic
direction
Change Agent –
Managing Transformation &
Change
Effecting transformation &
change
Administrative Expert –
Managing The Firm’s HR
Infrastructure
Process optimization &
efficiency
Employee Champion –
Managing Employee’s
Contribution
Motivated & competent
personnel
The role of HR – Ulrich’s Model
(detailed)
FUTURISTIC FOCUS
PROCESSES
P
E
O
P
L
E
DAY TO DAY / OPERATIONAL FOCUS
Strategic Partner
a) Develops & aligns strategies with business
b) Assist line managers in solving organization,
people and change related issues
c) Contribute to management team’s strategic
decision making
d) Foster system thinking, customer focus
e) Strategically manage workforce development
Change Agent
a) Understand the organization’s culture and what
is effective & ineffective
b) Institutionalizes change capability within the
organization
c) Assist line managers to lead and facilitate change
d) Act as a consultant in organizational
effectiveness
e) Enhance management development
Administrative Expert
a) creates and delivers effective and efficient
HR processes & services tailored to unique
business needs
b) Manages people & HR related costs
c) Ensures internal & external customer focus
d) Applies information technology to rapidly
deliver quality HR products & services
Employee Champion
a) Develops strategies & helps implement
actions that enhance human capital
contribution
b) Helps build workforce commitment
c) Ensures fair, ethical & equitable people
processes and practices
d) Voice of employees
The role of HR – Ulrich’s Model
(impact)
FUTURISTIC FOCUS
PROCESSES
P
E
O
P
L
E
DAY TO DAY / OPERATIONAL FOCUS
Strategic Partner
a) Develops & aligns strategies with business
b) Assist line managers in solving organization,
people and change related issues
c) Contribute to management team’s strategic
decision making
d) Foster system thinking, customer focus
e) Strategically manage workforce development
Change Agent
a) Understand the organization’s culture and what
is effective & ineffective
b) Institutionalizes change capability within the
organization
c) Assist line managers to lead and facilitate change
d) Act as a consultant in organizational
effectiveness
e) Enhance management development
Administrative Expert
a) creates and delivers effective and efficient
HR processes & services tailored to unique
business needs
b) Manages people & HR related costs
c) Ensures internal & external customer focus
d) Applies information technology to rapidly
deliver quality HR products & services
Employee Champion
a) Develops strategies & helps implement
actions that enhance human capital
contribution
b) Helps build workforce commitment
c) Ensures fair, ethical & equitable people
processes and practices
d) Voice of employees
When NOT done well… creates a lot of
issues
The role of HR – Ulrich’s Model
(impact)
FUTURISTIC FOCUS
PROCESSES
P
E
O
P
L
E
DAY TO DAY / OPERATIONAL FOCUS
Strategic Partner
a) Develops & aligns strategies with business
b) Assist line managers in solving organization,
people and change related issues
c) Contribute to management team’s strategic
decision making
d) Foster system thinking, customer focus
e) Strategically manage workforce development
Change Agent
a) Understand the organization’s culture and what
is effective & ineffective
b) Institutionalizes change capability within the
organization
c) Assist line managers to lead and facilitate change
d) Act as a consultant in organizational
effectiveness
e) Enhance management development
Administrative Expert
a) creates and delivers effective and efficient
HR processes & services tailored to unique
business needs
b) Manages people & HR related costs
c) Ensures internal & external customer focus
d) Applies information technology to rapidly
deliver quality HR products & services
Employee Champion
a) Develops strategies & helps implement
actions that enhance human capital
contribution
b) Helps build workforce commitment
c) Ensures fair, ethical & equitable people
processes and practices
d) Voice of employees
When done well… gives the organization
a great strategic advantage
HR as Strategic Partner
Knowledge requirements
•Bring strong technical
expertise to the table
and an understanding of
the organization and its
strategy
•Develop new skills as
needed. Understand the
data, the financials, the
market
Staying focused on issues
that matter to the
business
•What are the issues that
matter?
•What’s keeping business
leaders up at night?
•What’s the elephant on
the table regarding the
future?
•What drives the bottom
line
•Focus on business
objectives
•Focus on environment
Delivering capabilities
that make a real
difference
•Provide organizational
capabilities as required
by the business
objectives:
> People
> Strategy
> Culture
Becoming a Strategic Partner
HR as a Change Agent
Before Change
Prepare for
Change
During Change
Managing
Change
Post Change
Reinforcing
Change
a) Serves as a catalyst for
change
b) Helps the organization
build a capacity for
change
c) Plan change process
with sponsors
d) Ensure project team
has necessary skills,
training
e) Coach sponsors
f) Lead by example by
doing it first within the
HR function
a) Facilitate the discussions
about the change and its
content with all
stakeholders
b) Coach leaders through
the change
c) Act as a coach mentor to
employees to help them
understand change
d) Emphasize what is in it
for the individual and
address concerns
e) Strike a balance between
business and employees
f) Communicate
a) Help employees to
break from the past
and adopt a new
culture
b) Sustain the momentum
c) Internalization of new
behavior / ways
d) Recognize and
celebrate success
e) Build on the change
The Change Process
Evolution of HR function

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Evolution of HR function

  • 2. Brief history of HR Function The early days: Welfare Officer The World Wars: Personnel Management 1945 – 1979: Collective Bargain & Industrial Relations 1980 – 2000: Compliance Officer 2001 – Till date: Strategic HR a) Paternalistic role b) Care for injured and sick employees c) Protection of women & children a) State / Trade Union partnership b) Management of absence, training & recruitment c) Productivity improvement a) Trade Union negotiation b) Policy adherence c) Regulation of pay a) Focus on improving efficiency & effectiveness b) Administrator and functional/tec hnical expert c) HR generalist a) Strategic business partner b) Change agent c) Employee champion d) Centre of excellence e) Shared services
  • 3. The HR Journey ValueImpact/contributiontobusiness Welfare Officer Labor Manager Personnel Management Human Resources Management Strategic HRM i. Administrative focus ii. Compliance iii.Traditional mindset iv.Limited scope of activities v. Specialized function i. Administrative focus with enlarged scope of activities ii. Support function iii.Less reactive, more proactive i. Strategic HR ii. Business Partnering iii.Focus on value added activities iv.Proactive v. Multi disciplinary vi.Multi faceted roles 1890 – 1913 1914 – 1939 1945 – 1979 1980 – 1990 2000 – Till now 2nd Industrial Revolution World Wars Globalization High
  • 4. The HR Journey – nature of work ValueImpact/contributiontobusiness Employee Welfare Labor Relations Employee Relations Personnel Admin Human Resources High Organizational Effectiveness Continue to evolve Safety & workers compensationWelfare/ Employee Care Labor Union Relations Employee Relations Benefits Compliance Compensation Training & Development Stuffing Survey Action Plan Transactional Work Transformational Work Organizational Development PMS HRIS Culture & Image HRBP Strategic HR Planning COE Shared Services
  • 5. The changing role of HR The business environment • Globalization • Economic uncertainties • Technology innovation • Profitability through cost and growth • Intensified competition Requires companies to focus on • Increasing value • Organizational capabilities  fast, responsive, cost effective • Creating climate for action • Unique competitive advantage Requires HR to change • Business savvy • Align with strategy • Strong bench strength • Change catalyst • Help business leaders to achieve objectives Reality check – What CEOs want from HR
  • 6. The role of HR – Ulrich’s Model FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner – Aligning HR & Business Strategy Active role in setting strategic direction Change Agent – Managing Transformation & Change Effecting transformation & change Administrative Expert – Managing The Firm’s HR Infrastructure Process optimization & efficiency Employee Champion – Managing Employee’s Contribution Motivated & competent personnel
  • 7. The role of HR – Ulrich’s Model (detailed) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees
  • 8. The role of HR – Ulrich’s Model (impact) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees When NOT done well… creates a lot of issues
  • 9. The role of HR – Ulrich’s Model (impact) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees When done well… gives the organization a great strategic advantage
  • 10. HR as Strategic Partner Knowledge requirements •Bring strong technical expertise to the table and an understanding of the organization and its strategy •Develop new skills as needed. Understand the data, the financials, the market Staying focused on issues that matter to the business •What are the issues that matter? •What’s keeping business leaders up at night? •What’s the elephant on the table regarding the future? •What drives the bottom line •Focus on business objectives •Focus on environment Delivering capabilities that make a real difference •Provide organizational capabilities as required by the business objectives: > People > Strategy > Culture Becoming a Strategic Partner
  • 11. HR as a Change Agent Before Change Prepare for Change During Change Managing Change Post Change Reinforcing Change a) Serves as a catalyst for change b) Helps the organization build a capacity for change c) Plan change process with sponsors d) Ensure project team has necessary skills, training e) Coach sponsors f) Lead by example by doing it first within the HR function a) Facilitate the discussions about the change and its content with all stakeholders b) Coach leaders through the change c) Act as a coach mentor to employees to help them understand change d) Emphasize what is in it for the individual and address concerns e) Strike a balance between business and employees f) Communicate a) Help employees to break from the past and adopt a new culture b) Sustain the momentum c) Internalization of new behavior / ways d) Recognize and celebrate success e) Build on the change