managing hr in turbulent times (1)

8/14/2019 Managing HR in Turbulent Times (1)

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What are the obstacles or difficulties of Human ResourceDepartment in multinational organization to become astrategic partner?

by

Thanyatorn KiriyapongFebruary 9, 2006


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09/02/2006 SFS-Sasin for Society 2

Contents

Research Background Inspiration on research topic Management Perception on HR

Framework of Research Study Key Finding Association with Attraction & Retention Conclusion


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Research Background Started research in November 2004 Only 12 companies from Chemical Industry

High demand in changing HR role to become a strategic partner

Thai HR spent only 3% on strategic HR activities

Asian HR spent average 12% on Strategic HR Activities 29% of HR executives in USA claimed themselves as the full

partner in strategic process 1998

41% of HR executives in USA claimed themselves as the full

partner in strategic process 2001

There is still plenty of room for improvement on HR time allocationTo become a Strategic Partner


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Inspiration on Research Topic

Strategic Partner Change Agent

Administrative Expert Employee Champion

HR New Roles

Source: Dave Ulrich, Human Resource Champion, 1996


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Key Finding

Management Perception HR Practices (Services) HR Readiness


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Management Perception on HRHR Capabilities

Ability to advise & influence Ability to interpret Business Strategy Understanding of Business Operation Limitation of HR capabilities Indirect/ Little involve in strategy Lack of professional skill Reactive and less interact with management

and employee

Lack of creditability

HR Practices and System

Traditional Role Heavily involve in administration Disciplinary control> strategic support Stick on old practice and traditional Routine No adequate/proper system in place Insufficient Right Resources

Support/Commitment from Top Management

Traditional style and focus on confidentiality Lack of understanding on Strategic Role Lack of understanding on HRM Lack of support people are last priority Not dare to challenge Perception on HR Role Administrative Role model to take lead or advice Limited budget on people

Support/Commitment from Line Mgrs.

HR is administrative & disciplinarymonitor

HR = Rival Lack of understanding on People

Development

Lack of support, commitment, ownership Perception on HR Negative


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Critical Area

Strategic Partner Change Agent

Administrative Expert Employee Champion

Source: Dave Ulrich, Human Resource Champion, 1996



Framework of Research StudyHR Strategic Alignment Q2,3,5,6

Q1-8 Change Management Q23,24,25

Learning & Development Q12,13,16,17,30

HR PracticesLearning &Development

Linked with Career PlanningQ12,13,14,15,1617,30

Q9-25

People Capability Q11,12,13

Performance Management Q 18.19

Selection Process Q9,10

Q 20

Q27- 30

Dependent Factors HR Strategic Role Q2,24,29

HR Readiness

Management Perception

Compensation and Benefits

(Salary) Survey



HR Practices (Services)

Selection Process RecruitmentQ9: HR Department consistently brings core competencies up to date as the businessstrategy change (Mean = 4.1573)

Q10: Core Competencies are set as the organization standard in selection process (Mean =4.6292)

Compensation & BenefitsQ20: The organization conducts Salary Survey to benchmark the competitive position vs.industry (Mean = 5.1236)

Learning & Development with Career PlanningQ12: HR Dept. sets a clear human resource development strategy to develop people

capability (Mean = 4.4382)

Q13: HR Dept. designs learning & development programs that truly develops peoplescapability (Mean =4.4045)

Q14:Your organization can fill all key positions at anytime without problem (Mean =3.2697)


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Research Results and Data Analysis

Reliability Analysis

ANOVA Analysis Correlation Analysis

Regression Analysis



ANOVA Analysis Measure by PositionDescription Abbrv.

Position 1*

(n=11)Mean

Position2**

(n=10)Mean

Position3***

(n=20)Mean

Position4****

(n=48)Mean

Total

n=(89)Mean

F. Sig.

HR Readiness HRRN 4.1818 4.4500 4.4250 4.1484 4.2486 0.743 0.529

HR Practice HRPT 4.1614 4.1596 4.2820 4.2191 4.2194 0.157 0.925

Change Management CHMG 3.7879 4.2333 4.3333 4.0972 4.1273 0.916 0.437

Learning & Development (L&D) LNDM 4.6364 4.5200 4.4000 4.5250 4.5101 0.297 0.827

L&D linked with Career Planning LDCP 4.3377 4.2286 4.2857 4.2789 4.2825 0.046 0.987

People Capability PECA 4.7576 4.7000 4.4833 4.6319 4.6217 0.341 0.796

Selection Process SLPC 4.5909 4.0000 4.2750 4.4792 4.3933 0.839 0.476

Management Perception MNGT 4.3636 4.5600 4.3600 4.3792 4.3933 0.199 0.897

HR Strategic Role ROLE 3.5909 4.5000 4.5000 4.2500 4.2528 1.935 0.130

HR Strategic Alignment SGAL 4.2273 4.6250 4.3375 4.2708 4.3202 0.495 0.686

Remarks:

*Position 1 = Top Management (CEO, MD, or GM)

**Position 2 = Head of Human Resource Management (Head of Department, SVP, VP, Director, or Manager)

***Position 3 = HR Practitioner/Specialist

****Position 4 = Line Manager (Head of Department, SVP, VP, Director, or Manager)



Finding -Position

Non-significant perception in all elements Lowest mean at 3.5909 was given on HR strategic role by TopManagement

HR people trend to favorable HR strategic role with mean =4.5000

Bottom three elements was given by Top management are: HR strategic role Change management HR practices

HR people rate Selection with the lowest means Top management and Line Manager were less favorable on HR

readiness vs. HR people



Correlation

Description Abbrv. ROLE HRRN HRPT MNGT

HR Strategic Role ROLE 1

HR Readiness HRRN .677** 1

HR Practices HRPT .706** .781** 1

Management Perception MNGT .780** .631** .659** 1

** Correlation is significant at the 0.01 level (1-tailed).

Better management perception and support on HRstrategic role will lead to the success in HR performing asa Strategic Partner

HR Practices, both services and activities, are keyindicators of HR Readiness



RegressionCoefficientsa

-1.444 .499 -2.895 .005

.216 .131 .166 1.646 .103

.421 .189 .232 2.232 .028

.648 .104 .523 6.253 .000

(Constant)

READINES

PRACTICE

MGNT

Model

1

B Std. Error

Unstandardized

Coefficients

Beta

Standardized

Coefficients

t Sig.

Dependent Variable: HRROLEa.

Regression Equation:HR Strategic Role = 0.216 (X Readiness) + 0.421 (X Practices) + 0.648 (X Management Perception)

5.5409 = (0.216 x 4.2846) +(0.421 x 4.2194) + (0.648 x 4.3933)

Independent Variables: HR Readiness, HR Practices, Management Perception

Dependent Variable: HR Strategic Role



Interpretation

HR Practices HR Readiness

Management Perception

CreditabilitySupport



Implication

HR transformation starts by HR people

Move from reactive to be proactive

Add value and make impact to businessHR Practices

HR Readiness

ManagementPerception

Requires strong support Understands value of HRM activities Line Manger is HR Manager

Less important among three factors HR practices indicate HR Readiness



Association with Attraction & Retention

Attraction vs. HR Services Selection Process

How to Sales the Employers Brand? Ensure 3 Fits to ensure

Job Fit Organization Fit Motivation Fit

Compensation & Benefit Competitiveness vs. Market

Attraction Buy Retention Build (Motivation Factors)

Learning & Development Career Planning Talent Management Succession Planning



Conclusion

Pick the RIGHT PEOPLE on the bus

Put them on the RIGHT SEAT

KEEP THEM

Source: Jim Collin, Good to Great, 2004


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managing hr in turbulent times (1)

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