transformation of hr functions

Download transformation of hr functions

Post on 30-May-2018




0 download

Embed Size (px)


  • 8/9/2019 transformation of hr functions


    Lovely institute of management

    Term paper


    Human resource management

    Transformation Of HRM Functions And Its Role In Future.



    ROLL NO. B 47(SEC.A)

    REG. NO: (10900856)

    MBA II (SEM)

    D. O. S - 10- 5- 2010



  • 8/9/2019 transformation of hr functions




    I would like to express my gratitude for the helpful comment and Suggestions by

    my teacher.

    Most importantly I would like to thank my lecturer Miss Alka sharma for her

    days of supervision. Her critical direction and support on work has played a major

    role in both the content and presentation of our discussion and arguments in our

    tutorial classes. Also her method of teaching and clearance of doubts regarding

    with the topic have made me successful to make this term paper and her proper

    guidance and help may make it possible for me to complete it on time.

    I have extended my appreciation to the several sources which have and will

    provided various kinds of knowledge base support for me during the research.

    Irfan - Basher

  • 8/9/2019 transformation of hr functions











  • 8/9/2019 transformation of hr functions


    HR transformation is defined as the process of recreating or reinventing the

    HR function such as reengineering, restructuring, implementing new

    systems or a new HR service delivery model, outsourcing or co-sourcing

    with the specific intent of enhancing HRs contribution to the business .

    Human resources are the most valuable and unique assets of an organization.

    The successful management of an organization's human resources is an

    exciting, dynamic and challenging task, especially at a time when the

    world has become a global village and economies are in a state of flux. The

    scarcity of talented resources and the growing expectations of the modern

    day worker have further increased the complexity of the human resource

    function. Even though specific human resource functions/activities are the

    responsibility of the human resource department, the actual management of

    human resources is the responsibility of all the managers in an


    It is therefore necessary for all managers to understand and give dueimportance to the different human resource policies and activities in the

    organization. Human Resource Management outlines the importance of

    HRM and its different functions in an organization. It examines the various

    HR processes that are concerned with attracting, managing, motivating and


    Human Resource Management has evolved considerably over the past

    century, and experienced a major transformation in form and function

    primarily within the past two decades. Driven by a number of significant

    internal and external environmental forces, HRM has progressed from a

    largely maintenance function, with little if any bottom line impact, to what

  • 8/9/2019 transformation of hr functions


    many scholars and practitioners today regard as the source of sustained

    competitive advantage for organizations operating in a global economy.

    The role of the Human Resource Management Function in

    the 21st Century.

    . Strategy execution by helping to improve planning from the board room to

    the market place.

    Organizations today are striving to increase productivity, improve service,

    and ensure that the company can adapt to ever-changing business

    conditions. And success on all this front depends on the organizations

    peoplesan asset that executives regularly cite as a primary differentiator

    in a fast-moving, knowledge-driven world. Human resource management

    plays a significant role in trying to achieve this by being involved at the

    strategy, policy and decision making process. The human resource

    management team ensures this is delivered by recruiting and selecting the

    right and qualified staff to ensure the goals and objectives of the

    organization are achieved. That is human resource managers establish a

    clear understanding of the talent base they have at their disposal or whether

    they need to recruit from outside. An example is where an organization is

    forecasting for their demand and supply of employees when planning for

    the organization to achieve the set objectives or goals. This is attained

    through Human resource Planning.

    2. An agent of continuous transformation, shaping process and a culture

    that together improve an organizations capacity for change.

  • 8/9/2019 transformation of hr functions


    With a turbulent environment, organizations have to continuously

    transform themselves in order to compete effectively for the limited...

    employees for the benefit of the human Resource Management

    Human resource management, in the sense of getting things done through

    people. It's an essential part of every manager's responsibilities, but many

    organizations find it advantageous to establish a specialist division to

    provide an expert service dedicated to ensuring that the human resource

    function is performed efficiently.

    "People are our most valuable asset" is a clich which no member of any

    senior management team would disagree with. Yet, the reality for many

    organizations is that their people remain

    under valued

    under trained

    under utilized

    poorly motivated, and consequently

    perform well below their true capability

    The rate of change facing organizations has never been greater and

    organizations must absorb and manage change at a much faster rate than in

    the past. In order to implement a successful business strategy to face thischallenge, organizations, large or small, must ensure that they have the

    right people capable of delivering the strategy.

    The market place for talented, skilled people is competitive and expensive.

    Taking on new staff can be disruptive to existing employees. Also, it takes

    time to develop 'cultural awareness', product/ process/ organization

    knowledge and experience for new staff members.

    As organizations vary in size, aims, functions, complexity, construction, the

    physical nature of their product, and appeal as employers, so do the

    contributions of human resource management. But, in most the ultimate

    aim of the function is to: "ensure that at all times the business is correctly

    staffed by the right number of people with the skills relevant to the

    business needs", that is, neither overstaffed nor understaffed in total or in

    respect of any one discipline or work grade.

  • 8/9/2019 transformation of hr functions


    Human Resource Management TRANSFORMATION

    (HRM) has shifted its function within Organizations over the last few years.

    Its function has grown considerably and has shifted into a more strategic

    role rather than providing support for administrative paperwork. There has

    been a shift too, in terminology, with the term Human Resource

    Management functions becoming more common.

    Dave Ulrich, a well-known HR Guru from the University of Michigan

    says that the purpose of the HR functions rapid transformation is

    simply twofold: firstly, to improve the organizations capability , and

    secondly, to improve individual capability within the organisation.

    To improve Organisation performance and create competitive

    advantage, the HR team must focus on a new set of priorities. Thesenew priorities are more business, and strategic oriented and less

    geared towards traditional HR functions such as staffing, training,

    appraisal and compensation.

    Strategic priorities include team-based job designs, flexible workforces,

    quality improvement practices, employee empowerment and incentive

    compensation. HRM is designed to diagnose organisation strategic needs

    and plan the development of talent which is required to implement a

    competitive strategy and achieve operational goals.

    The transformation is being driven by the top goals HR functions must strive

    to achieve:

    develop leaders.

    recruit and retain a quality work force.

    manage performance systematically.

    develop culture.
  • 8/9/2019 transformation of hr functions


    HR functions typically operate across four roles: administrative expert

    employee champion

    change agent

    strategic partnerIn the Mercer studies (globally and in Australia) when asked in which roles

    they perceived the HR function as being successful, a greater proportion of

    HR executives nominate 'administrative expert' over that of 'strategic

    partner'. This makes sense, given (a) where the function has been, and (b)

    that HR only earns the right to operate on a more strategic stage once the

    basic 'nuts and bol