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/technical expert

c) HR generalist

a) Strategic business partner

b) Change agent c) Employee

champion d) Centre of

excellence e) Shared

services

The HR Journey

Val

ue

Imp

act/

con

trib

uti

on

to

bu

sin

ess

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

Val

ue

Imp

act/

con

trib

uti

on

to

bu

sin

ess

Employee Welfare

Labor Relations

Employee Relations

Personnel Admin

Human Resources

High

Organizational Effectiveness

Continue to

evolve

Safety & workers

compensation Welfare/ 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

PR

OC

ESSE

S PEOPLE

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

PR

OC

ESSE

S PEOPLE

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

PR

OC

ESSE

S PEOPLE

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

PR

OC

ESSE

S PEOPLE

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