HR's contribution to business

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  • Or may be the Holy Grail for HCM is knitting together the measuring of human assets for reporting purposes and acting upon that information to drive how people are managed in the organisation. Simply producing the data is not enough, especially if it is overly influenced by traditional accountancy models. Proving to the world that business performance is affected by the management of people may be desirable for both internal and external consumption to ensure that employees place in the business is given its rightful place.
  • HR's contribution to business

    1. 1. HR’s contribution to businessstrategyDr. Sorab Sadri and Prof. JayashreeSadri
    2. 2. Understanding strategicformulationNot always as per textbook:■ intended strategies■ emergent strategies■ political strategiesHow does HR contribute:■ operationalises business strategy■ provides separate people thrust:• connected with organisational aims• disconnected: HR best practice model■ is an integral part of business strategy
    3. 3. Types of linkage betweenbusiness & HR strategytwo way linkage:mutual influencepassing ships:independent HRand businessstrategiesintegrativebusiness strategyinforms HR actions
    4. 4. Linking business & HR strategyFactors that affect this linkage:Planning process■ formal or informal■ deliberative or emergentDegree and timing of HR involvementExtent of challenge permittedLegitimate areas for HR inputExtent of HR’s alignment with business -broad objectives and current imperatives
    5. 5. Understanding the decisionmaking processIf decided byformal processesIf matters aresettled beforehandIf real actionhappens atoperational levelGet a seat at thedecision makingtableBuild coalitions,work to influenceoutside meetingsEnsure you havebusiness partnerseffective at BUlevel
    6. 6. Stakeholder management board executive committee senior managers line managers teamleaders/supervisors employees employeerepresentatives external suppliers government bodies other agencies what is their stake? what are their goals? what are theirexpectations? how will change affectthem? what do they knowalready? what influence dothey have? what power do theyhave?
    7. 7. Characteristics of strategic HRA philosophy underpinning peoplemanagementSeeing people as a competitiveresource
    8. 8. Making the case: what HumanCapital HR can deliverImproved utilisation of talentHigher productivityReduced costsBetter service deliveryOrganisational integrationAligned culture & organisational valuesGreater employee engagementStronger employee proposition etc
    9. 9. LineManagementCompanyCultureEmployeeCommitmentCustomersatisfactionwith serviceCustomerspendingintentionChange insalesEmployeeAbsenceService-Profit-Chain Model
    10. 10. Characteristics of strategic HRA philosophy underpinning peoplemanagementSeeing people as a competitiveresourceA planning approach to resources■ numbers■ skills■ potentialAdds long-term rather than shortterm valuein line withbusiness need
    11. 11. Characteristics of strategic HRIntegrated – brings togethermultifaceted activities
    12. 12. horizontal integrationverticalintegrationPeople managementintegrationbusinessstrategyreward employeerelationstraining& devtworkorgnculture leadershipstyle
    13. 13. Characteristics of strategic HRIntegrated – brings togethermultifaceted activitiesComprehensive – covers the entireoperation (at BU or corporate level)High value added – focuses on businesscritical issuesBuilds social capital – helps sharing,networking and relationships
    14. 14. Characteristics of strategic HRIntegrated – brings togethermultifaceted activitiesComprehensive –covers the entireoperation (at BU or corporate level)High value-added –focuses businesscritical issuesBuilds social capital – helps knowledgesharing, networking and relationshipsAnticipates change – through horizonscanning and internal sensing
    15. 15. Connecting business & HRstrategiesBusinessstrategyHRstrategyBusinessplansImple-mentationMonitorInternaldriversExternaldrivers
    16. 16. How is people & businessalignment achievedWhat is theorganisation’s bigidea?What are thebusiness priorities?What are thepeople priorities?How do they link?BigideaBusinessprioritiesPeoplepriorities
    17. 17. Establishing people prioritiesWhat causes people to come to work,be motivated and perform?What stops them frombeing effective?
    18. 18. A model of capabilityability:skills, trainingeducationmotivation:engagementinvolvementapplication:ODproductmarketstrategyaccess:resourcingrecruitmentsuccessionDeploymentDevelopmentIndividual capabilityOrganisational action
    19. 19. What are external influences?Conduct environmental scanning:what is the legal contexthow tight/loose is the labour marketare the right skills availableat what pricewhat is the output from schools,universities, etcwhat are the political priorities
    20. 20. What is the state of thecurrent workforce?What proportion is skilled for their currentand for future jobs?What is its demographic shape?How committed are employees?■ attendance■ productivity■ staying or leavingWhat are collective relationships like?To what extent is employee potential beingharnessed?
    21. 21. What stops HR succeeding?Human capital not recognised as asource of advantageWeak organisational leadershipPoor teamworking across organisationBusiness strategy poorly definedThere is little forward planningPeople resources assumed to beunlimited, free or fully trainedResources are hoarded & not shared
    22. 22. HR’s own problem areasObstacles tosuccess:■ time■ capacity■ focus■ capability■ positioning■ organisation
    23. 23. The ‘default’ operating modelBUbusiness partnerBUbusiness partnerBUbusiness partnerBUbusiness partnerBUbusiness partnerconsultancypoolcentresof expertisesharedservicesCorporate HR
    24. 24. HR’s own problem areasObstacles tosuccess:■ time■ capacity■ focus■ capability■ positioning■ organisationRelationships withmanagement notworking.The villains:■ HR – not letting go■ the line – nottaking it up■ senior mgt –sending wrongsignals
    25. 25. ResultsInadequate HR service performanceConcentrating on low value tasksHR policies are disjoined & inconsistentThey serve functional not organisationalneedsWeak functional leadershipPoor internal reputationHuman capital not exploited, developed
    26. 26. What should HR do?Review your retention model■ right level of wastage?■ numbers, types, qualityWhy dotheyleave?Why dotheyjoin?Construct a workforce planEstablish the supply/demand balanceAre the right people, in right jobs?Review your recruitment model■ able to attract - all types?■ brand■ proposition
    27. 27. A strategic review ofrecruitment and retentionMarket availabilityOrganisationalimpactHLH LOutsourceCommoditiseAttract &retain
    28. 28. Different propositions fordifferent groupsHire Exploit FireAttract RetainNurture
    29. 29. What should HR do? (2)How well are employees aware of■ the bigger picture?■ their job?■ what success looks like?How doyouknow?Are you able to motivate staff?■ degree of engagement■ what motivates them?■ what demotivates them?■ what impact does pay and performancemanagement have?
    30. 30. What should HR do? (3)How skilled are line managers in■ Appraising performance?■ Giving feedback?■ Developing skills?How effectively are■ Employees allocated to jobs?■ How well are jobs/the organisationstructured?■ Employees moved to meet businessneeds?
    31. 31. What should HR do? (4)What is the organisation’s■ Ability to change/innovateHow good is the organisation’sgovernance structure?How strong (and respected) are theorganisational values, eg■ On diversity?■ Whistleblowing?■ Meritocratic progression?
    32. 32. Measure people and HRfunctional performanceThrough for exampleCritical success factors/areasKey performance indicatorsService level reviewsCustomer surveysEmployee attitude surveysProcess mapping/activity analysisAudits/reviews (incl... quality)ScorecardsBenchmarking
    33. 33. Improve measurementHRefficiencyPeopleManagementeffectivenessPeoplemanagementefficiencyHReffectiveness
    34. 34. Examples of measures in multidimensional measurementProcess metricsRatiosHuman CapitalCost/IncomeagainstheadcountStrategic alignmentFunctional positioningCustomerviews
    35. 35. internal externalbusinessperformancemanagingpeoplebusiness goalsHR policies& practicesHCMmeasuringreporting actingHuman capital measuring & doing
    36. 36. … thank you

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