transformation of hr functions

Download transformation of hr functions

Post on 30-May-2018

217 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

<ul><li><p>8/9/2019 transformation of hr functions</p><p> 1/22</p><p> Lovely institute of management</p><p>Term paper</p><p>Of</p><p>Human resource management</p><p>Transformation Of HRM Functions And Its Role In Future.</p><p>o SUBMITTED BY</p><p>IRFAN BASHIR</p><p>ROLL NO. B 47(SEC.A)</p><p>REG. NO: (10900856)</p><p>MBA II (SEM)</p><p>D. O. S - 10- 5- 2010</p><p>SUBMITTED TO :</p><p>MISS. ALKA SHARMA {(FACULTY(LIM)}</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 2/22</p><p> ACKNOWLEDGEMENT</p><p>.</p><p> I would like to express my gratitude for the helpful comment and Suggestions by</p><p>my teacher.</p><p>Most importantly I would like to thank my lecturer Miss Alka sharma for her</p><p>days of supervision. Her critical direction and support on work has played a major</p><p>role in both the content and presentation of our discussion and arguments in our</p><p>tutorial classes. Also her method of teaching and clearance of doubts regarding</p><p>with the topic have made me successful to make this term paper and her proper</p><p>guidance and help may make it possible for me to complete it on time.</p><p>I have extended my appreciation to the several sources which have and will</p><p>provided various kinds of knowledge base support for me during the research.</p><p>Irfan - Basher</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 3/22</p><p>contents</p><p> INTRODUCTION.</p><p> HR FUNCTIONS TRANSFORMATION.</p><p>OBJECTIVES OF RESEARCH.</p><p> REVIEW OF LITERATURE.</p><p> RELEVANT STATICAL DATA USED.</p><p> CONCLUSION.</p><p> REFERENCES AND BIBILIOGRAPHY.</p><p> INTRODUCTION.</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 4/22</p><p>HR transformation is defined as the process of recreating or reinventing the</p><p>HR function such as reengineering, restructuring, implementing new</p><p>systems or a new HR service delivery model, outsourcing or co-sourcing </p><p>with the specific intent of enhancing HRs contribution to the business .</p><p>Human resources are the most valuable and unique assets of an organization.</p><p>The successful management of an organization's human resources is an</p><p>exciting, dynamic and challenging task, especially at a time when the</p><p>world has become a global village and economies are in a state of flux. The</p><p>scarcity of talented resources and the growing expectations of the modern</p><p>day worker have further increased the complexity of the human resource</p><p>function. Even though specific human resource functions/activities are the</p><p>responsibility of the human resource department, the actual management of</p><p>human resources is the responsibility of all the managers in an</p><p>organization.</p><p>It is therefore necessary for all managers to understand and give dueimportance to the different human resource policies and activities in the</p><p>organization. Human Resource Management outlines the importance of</p><p>HRM and its different functions in an organization. It examines the various</p><p>HR processes that are concerned with attracting, managing, motivating and</p><p>developing.</p><p>Human Resource Management has evolved considerably over the past</p><p>century, and experienced a major transformation in form and function</p><p>primarily within the past two decades. Driven by a number of significant</p><p>internal and external environmental forces, HRM has progressed from a</p><p>largely maintenance function, with little if any bottom line impact, to what</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 5/22</p><p>many scholars and practitioners today regard as the source of sustained</p><p>competitive advantage for organizations operating in a global economy.</p><p>The role of the Human Resource Management Function in</p><p>the 21st Century.</p><p>. Strategy execution by helping to improve planning from the board room to</p><p>the market place.</p><p>Organizations today are striving to increase productivity, improve service,</p><p>and ensure that the company can adapt to ever-changing business</p><p>conditions. And success on all this front depends on the organizations</p><p>peoplesan asset that executives regularly cite as a primary differentiator</p><p>in a fast-moving, knowledge-driven world. Human resource management</p><p>plays a significant role in trying to achieve this by being involved at the</p><p>strategy, policy and decision making process. The human resource</p><p>management team ensures this is delivered by recruiting and selecting the</p><p>right and qualified staff to ensure the goals and objectives of the</p><p>organization are achieved. That is human resource managers establish a</p><p>clear understanding of the talent base they have at their disposal or whether</p><p>they need to recruit from outside. An example is where an organization is</p><p>forecasting for their demand and supply of employees when planning for</p><p>the organization to achieve the set objectives or goals. This is attained</p><p>through Human resource Planning.</p><p>2. An agent of continuous transformation, shaping process and a culture</p><p>that together improve an organizations capacity for change.</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 6/22</p><p>With a turbulent environment, organizations have to continuously</p><p>transform themselves in order to compete effectively for the limited...</p><p>employees for the benefit of the human Resource Management</p><p> Human resource management, in the sense of getting things done through</p><p>people. It's an essential part of every manager's responsibilities, but many</p><p>organizations find it advantageous to establish a specialist division to</p><p>provide an expert service dedicated to ensuring that the human resource</p><p>function is performed efficiently.</p><p> "People are our most valuable asset" is a clich which no member of any</p><p>senior management team would disagree with. Yet, the reality for many</p><p>organizations is that their people remain</p><p> under valued</p><p> under trained</p><p> under utilized</p><p> poorly motivated, and consequently</p><p> perform well below their true capability</p><p> The rate of change facing organizations has never been greater and</p><p>organizations must absorb and manage change at a much faster rate than in</p><p>the past. In order to implement a successful business strategy to face thischallenge, organizations, large or small, must ensure that they have the</p><p>right people capable of delivering the strategy.</p><p> The market place for talented, skilled people is competitive and expensive.</p><p>Taking on new staff can be disruptive to existing employees. Also, it takes</p><p>time to develop 'cultural awareness', product/ process/ organization</p><p>knowledge and experience for new staff members.</p><p>As organizations vary in size, aims, functions, complexity, construction, the</p><p>physical nature of their product, and appeal as employers, so do the</p><p>contributions of human resource management. But, in most the ultimate</p><p>aim of the function is to: "ensure that at all times the business is correctly</p><p>staffed by the right number of people with the skills relevant to the</p><p>business needs", that is, neither overstaffed nor understaffed in total or in</p><p>respect of any one discipline or work grade.</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 7/22</p><p>Human Resource Management TRANSFORMATION</p><p> (HRM) has shifted its function within Organizations over the last few years.</p><p>Its function has grown considerably and has shifted into a more strategic</p><p>role rather than providing support for administrative paperwork. There has</p><p>been a shift too, in terminology, with the term Human Resource</p><p>Management functions becoming more common.</p><p>Dave Ulrich, a well-known HR Guru from the University of Michigan</p><p>says that the purpose of the HR functions rapid transformation is</p><p>simply twofold: firstly, to improve the organizations capability , and</p><p>secondly, to improve individual capability within the organisation.</p><p>To improve Organisation performance and create competitive</p><p>advantage, the HR team must focus on a new set of priorities. Thesenew priorities are more business, and strategic oriented and less</p><p>geared towards traditional HR functions such as staffing, training,</p><p>appraisal and compensation.</p><p> Strategic priorities include team-based job designs, flexible workforces,</p><p>quality improvement practices, employee empowerment and incentive</p><p>compensation. HRM is designed to diagnose organisation strategic needs</p><p>and plan the development of talent which is required to implement a</p><p>competitive strategy and achieve operational goals.</p><p>The transformation is being driven by the top goals HR functions must strive</p><p>to achieve:</p><p>develop leaders.</p><p>recruit and retain a quality work force.</p><p>manage performance systematically.</p><p>develop culture.</p>http://www.articlesbase.com/human-resources-articles/quotenabling-your-human-resource-information-system-to-support-hr-strategic-rolesquot-2154690.htmlhttp://www.articlesbase.com/human-resources-articles/quotenabling-your-human-resource-information-system-to-support-hr-strategic-rolesquot-2154690.html</li><li><p>8/9/2019 transformation of hr functions</p><p> 8/22</p><p>HR functions typically operate across four roles: administrative expert</p><p> employee champion</p><p> change agent</p><p> strategic partnerIn the Mercer studies (globally and in Australia) when asked in which roles</p><p>they perceived the HR function as being successful, a greater proportion of</p><p>HR executives nominate 'administrative expert' over that of 'strategic</p><p>partner'. This makes sense, given (a) where the function has been, and (b)</p><p>that HR only earns the right to operate on a more strategic stage once the</p><p>basic 'nuts and bolts' have been attended to. In the global study, line</p><p>managers were also asked to rate the success of HR in each of these roles.</p><p>It is disquieting that a smaller proportion of line managers rate HR as</p><p>successfully as the HR function rates itself - this is particularly the case for</p><p>the role of strategic partner.</p><p> Objectives of researchTo study whether the transformation of hrm functions are necessary for an</p><p>organization.</p><p> Why are these changes occurring so rapidly?</p><p>How are leading companies managing the transformation of HR functions? What are the implications of these changes on HR professionals in the</p><p>future?</p><p> And the role of transformation in future.</p><p> REVIEW OF LITERATURE</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 9/22</p><p> The field of human resource (HR) management has been undergoing a</p><p>dramatic change. Driving its transformation as such factors as competition,</p><p>globalization, technological innovations and market evolution. Business</p><p>organizations are responding to these changes by becoming flatter, lesshierarchical, less bureaucratic, more agile and more responsive. They are</p><p>aligning organizational and HR policies and practices with new business</p><p>realities to develop the competencies needed to succeed in the changed</p><p>marketplace. These capabilities include higher levels of cross-functional</p><p>coordination, employee commitment to quality, leadership competence,</p><p>creativity and entrepreneurship, and open communication. Some references</p><p>have been taken to make this review of literature.</p><p>In the Mercer studies ( globally) when asked in which roles theyperceived the HR function as being successful, a greater proportion of HR</p><p>executives nominate 'administrative expert' over that of 'strategic partner'.</p><p>This makes sense, given (a) where the function has been, and (b) that HR</p><p>only earns the right to operate on a more strategic stage once the basic 'nuts</p><p>and bolts' have been attended to. In the global study, line managers were</p><p>also asked to rate the success of HR in each of these roles. It is disquieting</p><p>that a smaller proportion of line managers rate HR as successfully as the</p><p>HR function rates itself - this is particularly the case for the role of</p><p>strategic partner.</p><p>A variety of factors - from global competition and economic recession to</p><p>technological breakthroughs and deregulation - have forced many</p><p>corporations to fundamentally reformulate how they can attain a</p><p>competitive advantage on a level playing field (Ulrich and Lake, 1990).</p><p>Concurrently, such considerations as cost reduction, customer satisfaction,</p><p>and the need for flexibility, speed, and quality have remained the enduring</p><p>criteria for corporate players on the global economic stage. Without doubt,however, the intense competition for a market edge in this recessionary</p><p>period (occurring not only in the U.S. but in Japan and Western Europe as</p><p>well) has intensified the critical nature of these considerations. The same</p><p>set of criteria has driven change in HR functions. Collectively, these</p><p>factors and standards have provided both a valuable opportunity and an</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 10/22</p><p>urgent mandate for HR functions striving to meet decisive business</p><p>challenges</p><p>Mohammed syed (2008-09) The transition from a Socialist approach to a</p><p>free market approach and the rise of a new high-tech sector are two</p><p>remarkable shifts that have occurred in the last two decades in Israel. In the</p><p>face of these changes, human resource (HR) practitioners are currently</p><p>expected to assume new roles, adopt different work values, and apply</p><p>appropriate strategies. HR managers in the low-tech industry still adhere to</p><p>traditional values and strategies, including a reliance on trade unions and</p><p>an emphasis on job security and the employees years of work experience</p><p>and seniority as key criteria for promotion. In the emerging high-tech</p><p>sector, HR managers have adopted new values and developed new</p><p>strategies, including human resource management programs, employee</p><p>empowerment, higher salaries and better benefits, while placing an</p><p>emphasis on employees talents and qualifications.</p><p> According to Robert hawk(2007-08)</p><p> The last few years have witnessed unprecedented changes in the human</p><p>resource functions of American corporations. This radical</p><p>transformation of HR functions has been instigated by a complex nexus of</p><p>forces: pressures to reduce costs, higher expectations of customers, the</p><p>constant drive to meet global competitive challenges, and opportunities</p><p>offered by advancements in information technology. The mix of these</p><p>forces accelerates the transformation of the HR function in ways notenvisioned a decade ago.</p><p>Furthermore, the research by Brockbank et al. (1999) showed that HR</p><p>activities positively impact business performance by approximately 10%</p><p>(defined as the financial performance of the business over the last three</p><p>years compared to major competitors. Strategic contribution accounts for 43</p><p>percent of HR's total impact on business performance which is almost twice</p><p>the impact of any other domain. These are all reasons why competencies are</p><p>being discussed by academicians and practitioners as ways of creating</p><p>sustainable competitive advantages. Today, after being hidden for a longtime, the concept of competence has appeared prominently on the</p><p>educational stage again (Klink &amp; Boon, 2002).</p><p> Many other research findings have pointed to the relationship of HR and</p><p>HR</p></li><li><p>8/9/2019 transformation of hr functions</p><p> 11/22</p><p> Transformation in order increase profitability and creating competitive</p><p>advantages.</p><p>Losey (1999) stated that there is an emerging group of human resource</p><p>professionals who see the opportunity to turn human capital strategy into along-term competitive advantage. He commented that in the 1990s there</p><p>was a wake-up call for the human resource profession. More than ever,</p><p>organizations now seek greater creativity and productivity from people.</p><p>Part of the strategy in being creative and maximizing productivity is to</p><p>possess the necessary competencies enabling these outcomes.</p><p>Baill (1999) emphasized that the challenge...</p></li></ul>