HR can add value by successfully responding to strategic challenges and transforming to become a strategic business partner. To do so, HR must develop organizational capabilities, enable value delivery to all stakeholders, and create competitive advantages. HR also needs to help organizations address challenges like managing talent, leadership development, and cultural transformation in order to build high-performance organizations.
HR can add value by successfully responding to strategic challenges and transforming to become a strategic business partner. To do so, HR must develop organizational capabilities, enable value delivery to all stakeholders, and create competitive advantages. HR also needs to help organizations address challenges like managing talent, leadership development, and cultural transformation in order to build high-performance organizations.
HR can add value by successfully responding to strategic challenges and transforming to become a strategic business partner. To do so, HR must develop organizational capabilities, enable value delivery to all stakeholders, and create competitive advantages. HR also needs to help organizations address challenges like managing talent, leadership development, and cultural transformation in order to build high-performance organizations.
WHAT IS VALUE CREATION? 2 Now Then Now DUBAI THE I NDUSTRY COMMUNI CATI ONS THEN & NOW VALUE CREATION An Organizational Context Building a High Performance Organization Creating VALUE for All Stakeholders More classically, From an Organizational Perspective, Value Creation implies Stakeholder VALUE Shareholders Dividend Earning / Market Capitalisation Customers Customer Delight / Value for Money Partners Earnings from Association Employees Livelihood / Quality of Work-life Society Economic / Social Prosperity Planet Environmental Sustainability HIGH PERFORMANCE ORGANIZATIONS - The Characteristics LEADERSHIP Thinks strategically Formulates plans Allocates resources Builds engagement Drives accountability Delivers results STRUCTURE & DESIGN Structure & Design closely linked to Strategy Individual capabilities matched to Role requirements Proper delegation extended with accountability PEOPLE Aligned Empowered Engaged CULTURE Managed & aligned to achieve strategic objectives CHANGE Managed by continually aligning, adapting, communicating & cascading change THE VALUE PARADIGM OF HR 5 Build A HIGH PERFORMANCE ORGANIZATION Enable Value Delivery to All Stakeholders or the Organization Develop Organizational Capabilities Create Competitive Advantages Strategic Partner Enabler of Business For this to happen, HR needs to transform itself to a TRANSFORMATION OF HR
THE HR EXECUTIVE OF TODAY 7 Todays HR Executive - Competencies Technical Skills Interpersonal, Team and Leadership Personal Attributes Business Acumen HRS PARTNERSHIP WITH CORPORATE STRATEGY BL HR RESPONSE Rationalization of Manpower Strength down from 3385 (1993) 1429 (2007)
Alternate Models of Manning (Outsourced| Contractual| Vocational Training)
Improving Productivity as an HR Strategy Focus on Quality & Customer Orientation Managing Constituents (Internal Individual Employees & Collectives External Statutory Authorities, Bureaucracy & Politicians )
Competency Exercises
e-HR Workplace Organization Sort / Set in Order / Shine / Standardise / Sustain Safety and Health Initiatives CSR Initiatives COMPETETIVENESS IN BL THROUGH HR INITIATIVES -Recap of the BL Business Scenario & HR Response- 1990s/Early 00s ROAD AHEAD FOR HR System Related Driving down new initiatives/ ideas Developing compatible standards 9 Structure Related Varied Sectors of Operations Diverse Business Processes Varying degree of Complexity Unique customer types Market Related Spiraling Mkt. Offerings Complex/ High Value Aspirations Shortening Life Cycles Individuals career expectations Practice Related Different domains of Talent requirement How to develop Unifying Culture How to master varied processes (on-roll & off-roll strengths are same for BL) CHALLENGES SOLUTIONS STRATEGIC HR CHALLENGES WORLD WIDE BCG Survey on Creating People Advantage 2010
Top 10 Challenges 2010-15 * 1 Managing Talent 2 Creating & developing Leadership 3 Managing work-life balance 4 Becoming a Learning Organization 5 Enhancing Employee commitment 6 Effective Performance Management & Reward Systems 7 Transforming HR into a strategic business Partner 8 Managing Change & Cultural transformation 9 Managing CSR & Sustainability 10 Managing Diversity HR can add value by successfully responding to strategic Challenges The next generation of HR transformation is more tightly linked to corporate strategy and to creating business value through HR initiatives.
For HR to change the way it is perceived, it must take the initiative and deliver results on strategic business issues
STRATEGIC CHALLENGE - RISK & COMPLIANCE How HR Can Help Create Value
Global workforce security- HR to playing a larger role to provide security and safety of the workforces.
Regulatory compliance- HR to create a corporate culture that supports compliance. HR responsible for all people-related compliance activities, including worker training and formal certification programmes.
Governance- HR to help establish an effective governance structure to help improve decision-making processes, and align performance management with company principles and objectives. The Continuum of HR Value Creation: Is Your HR Function Leading or Lagging? Administrator and functional/technical expert Focused on delivering HR services Do not have the necessary business and analytical competencies to tackle business issues Strategic business partner alongwith administrator and functional/ technical specialist Actively focussed on business challenges viz talent management and executive development HR staff have skills, training and experience to fully address strategic business issues HRs role Lagging Leadin g Service Deliver y Few performance standards for HR services Employee experience is secondary to HR efficiency Each business unit has its own standards for systems, processes and practices Performance standards in place Employee experience drives service delivery Global standards for all systems, processes and practices Transactions and administration are handled through self-service and require little support from HR Integration with technology Whats Next? HR to elevate its role and drive more value in the company:
Continue to improve HR operations Continuously work towards transforming and restructuring the HR operations
Move up the HR talent Relieving HR staff of their administrative burden doesnt mean they are ready to contribute on a strategic level. HR must objectively assess its current tactical capabilities against its future strategic needs, filling the gaps through training and hiring.
Join the strategy discussion HR must take the initiative and deliver results on strategic business issues, such as mergers and acquisitions, new market development and talent management
HR That Means Business Technology Connectivity: always connected Accessibility: no boundaries Ambiguity: uncertain future
Industry/economic trends Adaptability: the need to change Intensity: market conditions Convergence: overlap of industries
Demographics Mobility: movement of talent globally Diversity: globalization of work force Spirituality: a need for trust and values
G L O B A L I Z A T I O N NEW BUSINESS REALITIES Strategic HRM
Strategy determines the direction in which the organization is going in relation to its environment. Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship.
Concerns of strategic HRM
To address broad organizational issues relating to
a) Organizational effectiveness and performance b) Changes in structure and culture c) Matching resources to future requirements d) Knowledge management and the management of change. e) Meeting human capital requirements and the development of process capabilities, that is, the ability to get things done effectively.