the changing role of hr
DESCRIPTION
The Changing Role of HR. HR TransformationTRANSCRIPT
Zulkifli Mohd
19 October 2011
The Changing Role The Changing Role & Functions of & Functions of HRHR
• H R as the e m ploye e ad vocate
• H R as the consultative bus ine ss partne r
• H R as the age nt of C hange
HR Republic S ummit 2011: Trends & Challenges UnfoldHR Republic S ummit 2011: Trends & Challenges Unfold
CONTENTSCONTENTS
• The Evolution of HR The Evolution of HR
• The Changing Role of HRThe Changing Role of HR
• HR as S trategic PartnerHR as S trategic Partner
• HR as Change AgentHR as Change Agent
• HR as Employee AdvocateHR as Employee Advocate
• Prote ction for fe m ale
e m ploye e s & ch ild re n
• C are for injure d &
s ick e m ploye e s
• C re ate d in re spond to
harshne ss in
ind ustrial cond itions
• Ad m in is tration of
abse nce , train ing &
re cru itm e nt
• S tate / Trad e U nion
partne rsh ips
• H and le d que rie s on
com pe nsation
m atte rs
• E m ploye e d ata
• We lfare &
e m ploym e nt m gt
we re inte grate d →
Pe rsonne l Mgt
• O utput could be
influe nce d by
e m ploym e nt policie s
• S tructure d
com pe nsation policy
• C olle ctive bargain ing
& IR
• S pe cialize d functions
(70’s )
• Ad m in is trator &
te chnical e xpe rt
• Focuse d on
im proving e fficie ncy
& e ffe ctive ne ss
• C om pe nsation
e ngine e ring as ke y to
prod uctivity (ince ntive
plans , d e fe rre d
com p, options )
• S trate gic Bus ine ss
Partne r
• C hange Age nt
• E m ploye e C ham p ion
• C O E
• S hare se rvice
End of 18th Century:Welfare Officers
The World Wars:
Labour/ Employment
Manager
2001 till now:Strategic HR
1945 – 1979:Personnel Mgt
1980 – 2000:Human
Resource / Compliance Officer
Origins of HRA Brief His tory of HR
1890 - 1913 1914- 1939 1945 - 1979 1980- 1990 2000 till now
Welfare Officer
Labor Manager
Personnel Management
Human Resource
Management
Strategic HR
2nd Industrial R evolution World Wars G lobalization
• Ad m in is trative
focus
• C om pliance
• Trad itional m ind
s e t
• Lim ite d scope of
activity
• S pe cialize d
functions
• Ad m in is trative
focus with
e nlarge d scope of
activitie s
• S upport function
• Le s s re active &
m ore proactive
• Bus ine ss Partne r
• Focus on value -
ad d e d activitie s
• Proactive
• Multid is cip linary
• Multi-face te d role s
The Evolution of HRThe HR J ourney
Val
ue
Imp
act/
Co
ntr
ibu
tio
n t
o t
he
Bu
sin
ess
→
High
Val
ue
Imp
act/
Co
ntr
ibu
tio
n t
o t
he
Bu
sin
ess
→
CompensationBenefits
Safety &Workers’
Compensation
Compliance
Labor/Union Relations
Staffing
Training &Development
EmployeeRelations
Survey ActionPlanning
continue to evolve
S ource : R ich Vosburgh
Welfare / Employee
Care
EmployeeWelfare
LaborRelations
EmployeeRelations
PersonnelAdmin
HumanResource
OrganizationalEffectiveness
High
TransactionalWork Transformational
Work
The Evolution of HRThe HR J ourney: Nature of Work
StrategicHR Planning
OrganizationalDesign
HR as BusinessPartner
Culture& Image
PerformanceManagement
HRIS
COE
Shared Svc
Centre
HR is shifting from focus ing on the organization of the bus ines s to focus ing on
the bus ines s of the organization
The Changing Role of HR
HR is more important than ever, people are the only sus tainable source of competitive advantage.
Watson Wyatt S tud y
“ You can take my factories , burn up my buildings , but give me my people, and I’ll bring my bus ines s right back again.”
- H e nry Ford -
The Changing Role of HR
Employers want HR to addres s s trategic is s ues involving the competitiveness and performance of the firm… More than the role of protector and adminis trator.
What CEOs Really Want from HRReality Check
Requires HR toRequires HR tochange:change:
The bus ines sThe bus ines senvironment:environment:
Requires companiesRequires companiesto focus on:to focus on:
GlobalizationGlobalizationEconomic Economic uncertaintiesuncertaintiesTechnology Technology innovationsinnovationsProfitability thru Cost Profitability thru Cost & Growth& GrowthIntensified Intensified CompetitionCompetition
• Increasing value• Organizational
capabilities → fast, responsive, cost effective
• Creating climate for action
• Unique competitive advantage
Business savvyAlign with strategyStrong bench strengthChange catalystHelp biz leaders to achieve objectives
What CEOs Really Want from HRReality Check
A s urvey of 500 HR directors acros s Europe, the Middle Eas t and As ia, found out that only 15% of the activities carried out by HR departments are related to " pure s trategic interventions " .
Watson Wyatt S tud y
The Changing Role of HRReality Check
StrategicStrategic15%15%
StrategicStrategic60%60%
Transactional/Operational
85% Transactional/Operational
40%
HR needs to realign its service delivery model to add HR needs to realign its service delivery model to add more strategic value to the organizationmore strategic value to the organization
The Changing Role of HRThe S hift in the Balance of HR Roles
% of available resources
Need to expand focus beyond its traditional & transactional role.
Four Roles for HR• Adminis trative Expert• Employee Champion• Change Agent• S trategic Partner
The Role of HRUlrich’s Four-Role Model
Dave Ulrich identifies four distinct roles of HR professional that may add value to a business and create sustainable
competitive advantage.
S trategic Partner
Aligning HR & Bus ines s S trategyActive Role in setting strategic direction
Future /S trate gic FocusFuture /S trate gic Focus
D ay-To-D ay/O pe rational FocusD ay-To-D ay/O pe rational Focus
Change Agent
Managing Trans formation & Change
Effecting Transformation & Change
Adminis trative Expert
Managing The Firm’s HR Infras tructure
Process Optimization & Efficiency
Employee Champion
Managing Employees ’Contribution
Motivated & Competent Personnel
PEOPLE
PROCESSES
The Roles of HRUlrich’s Four-Role Model
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
S trategic Partner• Develops & aligns strategies with biz• Assists line managers in solving organization,
people & change-related issues• Contributes to management team’s strategic
decision-making• Fosters systems thinking, customer focus• Strategically manages workforce development
Change Agent• Understands the organization’s culture & what
is effective and ineffective • Institutionalizes change capability within the
organization• Assists line managers to lead & facilitate change• Acts as a consultant in organizational
effectiveness• Enhances management development
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Adminis trative Expert• Creates and delivers effective & efficient HR
processes and services tailored to unique business needs
• Manages people & HR related costs• Ensures internal &external customer focus• Applies information technology to rapidly
deliver quality HR products and services
Employee Champion• Develops strategies and helps implement
actions that enhance human capital contribution
• Helps build workforce commitment• Ensures fair, ethical, and equitable people
processes and practices• VOE
Future /S trate gic FocusFuture /S trate gic Focus
D ay-To-D ay/O pe rational FocusD ay-To-D ay/O pe rational Focus
PEOPLE
PROCESSES
The Roles of HRUlrich’s Four-Role Model
S trategic Partner• Develops & aligns strategies with biz• Assists line managers in solving organization,
people & change-related issues• Contributes to management team’s strategic
decision-making• Fosters systems thinking, customer focus• Strategically manages workforce development
Change Agent• Understands the organization’s culture & what
is effective and ineffective • Institutionalizes change capability within the
organization• Assists line managers to lead & facilitate change• Acts as a consultant in organizational
effectiveness• Enhances management development
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Adminis trative Expert• Creates and delivers effective & efficient HR
processes and services tailored to unique business needs
• Manages people & HR related costs• Ensures internal &external customer focus• Applies information technology to rapidly
deliver quality HR products and services
Employee Champion• Develops strategies and helps implement
actions that enhance human capital contribution
• Helps build workforce commitment• Ensures fair, ethical, and equitable people
processes and practices
Future /S trate gic FocusFuture /S trate gic Focus
D ay-To-D ay/O pe rational FocusD ay-To-D ay/O pe rational Focus
PEOPLE
PROCESSES
The Roles of HRUlrich’s Four-Role Model
when NOT done well… create a lot of when NOT done well… create a lot of is suesis sues
S trategic Partner• Develops & aligns strategies with biz• Assists line managers in solving organization,
people & change-related issues• Contributes to management team’s strategic
decision-making• Fosters systems thinking, customer focus• Strategically manages workforce development
Change Agent• Understands the organization’s culture & what
is effective and ineffective • Institutionalizes change capability within the
organization• Assists line managers to lead & facilitate change• Acts as a consultant in organizational
effectiveness• Enhances management development
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
Adminis trative Expert• Creates and delivers effective & efficient HR
processes and services tailored to unique business needs
• Manages people & HR related costs• Ensures internal &external customer focus• Applies information technology to rapidly
deliver quality HR products and services
Employee Champion• Develops strategies and helps implement
actions that enhance human capital contribution
• Helps build workforce commitment• Ensures fair, ethical, and equitable people
processes and practices
Future /S trate gic FocusFuture /S trate gic Focus
D ay-To-D ay/O pe rational FocusD ay-To-D ay/O pe rational Focus
PEOPLE
PROCESSES
The Roles of HRUlrich’s Four-Role Model
when done well give the organization when done well give the organization a great s trategic advantagea great s trategic advantage
• Participates in designing & defining organization’s strategies
• Contributes to management team’s strategic decision-making
• Focuses on aligning HR strategies & practices with business strategy → translate business strategy into HR priorities
• Strategically manage people & infrastructure to support the execution of strategies & the creation of value
Strategically manages workforce development
HR as S trategic Partner
Deliverable/outcome: S trategy executionDeliverable/outcome: S trategy execution
S trate gic Partne r
C ore C om pe te ncie s
HR as S trategic PartnerCore Competencies
Facilitate strategy development for business teams by using different techniques
Plan and facilitate strategy deployment to the whole organization
Align the organization strategy with the business strategy to ensure it will be delivered
Redesign the organization to support strategy
HR as Strategic Partner should be able to:HR as Strategic Partner should be able to:
Bus ines s Mas tery
Pers onal C redibility
HR Mas tery
Knowledge Requirements
HR as S trategic PartnerBecoming A S trategic Bus ines s Partner
Bring strong technical expertise to the table and an understanding of your company and its strategy.
Develop new skills as needed. Understand the data, the financials, the market, etc.
Becoming A S trategic Bus iness Partner
Staying focused on issues that matter to the
business
Delivering capabilities that make a real
difference
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
Provide organizational capabilities as required by the strategy
PeopleGoal alignmentCulture
Knowledge Requirements
Bring strong technical expertise to the table and an understanding of your company and its strategy.
Develop new skills as needed. Understand the data, the financials, the market, etc.
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
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
Provide organizational capabilities as required by the business objectives:
PeopleStrategyCulture
Delivering capabilities that make a real
difference
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 objectivesFocus on environment
Becoming a bus ines s partner sounds eas y Becoming a bus ines s partner sounds eas y but in practice demands a shift in mindset but in practice demands a shift in mindset
and capabilityand capability
HR as S trategic PartnerBecoming A S trategic Bus ines s Partner
• Becoming a true "player" on strategic business issues → able to challenge business leaders on their own ground
• Architect who can synthesize best practices e.g. Total Reward, Talent Management, OD, etc into integrated solutions and implement at speed
• Shifting from advising and consulting to challenging, provoking, confronting business leaders
• Letting go of the past and engaging with the future
HR as S trategic PartnerMindset S hift
You are involved in dis cuss ions (by invitation!) on the " people implications " of a change or a new initiative in the organization before things go wrong
Line Managers in confide in you about their concerns and problems , even when you are not providing a solution then and there
Managers encourage you to tackle is sues in their areas and express confidence in your ability to do things you may never have done before
You engage in genuine dialogue with line managers
The time frame of your work moves from present/pas t to future - especially longer term future
The " why” of what you is doing is very clear - in terms of organizational need (not " because we always do it/ have done it)
HR as S trategic PartnerYou are moving towards S trategic Partnering When…
A s ignificant number of any organization's bus ines s s trategies A s ignificant number of any organization's bus ines s s trategies requires major changes in people-related is s ues ; the HR requires major changes in people-related is s ues ; the HR function and individual HR profes s ionals develop and manage function and individual HR profes s ionals develop and manage the key " people" sys tems needed to s upport organizational the key " people" sys tems needed to s upport organizational change. change.
HR as Change AgentHR as Change Agent
S imple — though not easy
HR as HR as Change Agent AgentA S trategic Role
Provoke the pos itive changes in the organization so it can s tay competitive.
Build the organization’s capacity to embrace and capitalize on change.
HR asChange
Agent
Champion/ Champion/ S ponsor/ S ponsor/ Catalys tCatalys t
FacilitatorFacilitator Des ignerDes igner
Demons trator
Deliverable/outcome: Creating a renewed organizationDeliverable/outcome: Creating a renewed organization
Model the change
Communicate about the change
Engage others to participate
Help others to break from the pas t
Create a supporting environment
HR as Change AgentThe Roles
Before ChangeBefore ChangePreparing for ChangePreparing for Change
Serves as a catalyst for change Serves as a catalyst for change
Helps the organization build a Helps the organization build a capacity for changecapacity for change
Plan change process with Plan change process with sponsorssponsors
Ensure project team has Ensure project team has necessary skills, trainingnecessary skills, training
Coach sponsorCoach sponsor
Lead by example by doing it Lead by example by doing it first within the HR function. first within the HR function.
Facilitate the discussions about Facilitate the discussions about the change and its content with the change and its content with all stakeholders all stakeholders
Coach leaders through the Coach leaders through the changechange
Acts as a coach/mentor to Acts as a coach/mentor to employees to help them employees to help them understand change as it affects understand change as it affects their livestheir lives
Emphasize ‘what is in it’ for the Emphasize ‘what is in it’ for the individuals and address individuals and address concernsconcerns
Strike a balance between the Strike a balance between the business and employeesbusiness and employees
Communicate, communicate, Communicate, communicate, communicatecommunicate
During ChangeDuring ChangeManaging ChangeManaging Change
Help employees to break from Help employees to break from the past & adapt a new culture.the past & adapt a new culture.
Sustain the momentumSustain the momentum
Internalisation of new Internalisation of new behaviour / waybehaviour / way
Recognize & celebrate successRecognize & celebrate success
Build on the changeBuild on the change
Pos t-ChangePos t-ChangeReinforcing ChangeReinforcing Change
The Change Agent Role
Increasing Commitment
Increasing Commitment
Awarenessof desired change
Understandingof change direction
Translationto the work setting
Commitmentto personal change
Internalisationof new behaviour
“Yeah, I saw the memo”
“I understand where we need to go”
“I know how we need to do our jobs differently”
“OK, I’m ready to do it the new way”
“This is the way we do things here”
Information with some involvement sufficient here
Significant involvement needed
HR as Change AgentChange Process
Build the organization’s Build the organization’s capacity to embrace capacity to embrace and manage changeand manage change
• Set the direction
•Create the desire & will to change
Phase
Content
Outcomes
UnfreezeUnfreeze MobiliseMobilise RealiseRealise ReinforceReinforce SustainSustain
•Make early changes & build confidence
• Secure widespread shift in behaviour
•Underpin with changes in structure & people processes
• Strive for continuous performance improvement
Break with the past
Build the energy
Performance lift-off
Embed new culture
Push the limits
The Change Agent RoleThe Change Management Tool
The change has to be managed and the HR Professionals have to be skilled The change has to be managed and the HR Professionals have to be skilled in the change management process. in the change management process.
A deep knowledge of change management processes
Problem solving skills
Coaching & conflict management skills
Good communication, influencing & facilitation skills
Networking, Collaboration & team-building abilities
Business mastery
Planning & project management skills
Ability to tolerate ambiguity
A risk taker
The Change AgentCompetencies
““ Of course change management isn’t res tricted exclus ively to HR. Line Of course change management isn’t res tricted exclus ively to HR. Line managers are the owners of change while HR can be seen as its managers are the owners of change while HR can be seen as its architect, facilitator and des igner. Nobody ever said that only HR architect, facilitator and des igner. Nobody ever said that only HR manages change.”manages change.”
- Dave Ulrich- Dave Ulrich
The Change Agent
Partner With
People &Mgnt
Daily Daily Employee Employee
is suesis sues
Employee Employee engagementengagement
Employee Employee developmentdevelopment
Conducive climate & culture
Employee Employee Commitment &Commitment &CompetenceCompetence
HR as Employee AdvocateManaging Employee Contribution
Voice of the EmployeeDevelop employee competenceEquip managers with skills to respond effectively to employees; equip the employees with skills to overcome challengesCreate climate for action
Deliverable/outcome: increasing employee commitment and capability
It is HR’s role to ens ure that line managers unders tand the critical link between employee motivation and organis ational performance and how this link can be s us tained → employees need to be kept engaged and motivated.
HR as Employee Advocate
Four-Role of HRParadoxes Inherent in Multiple HR Roles
Strategic Partner vs. Employee Advocate
Success in multiple-role framework requires that HR professionals balance the tension inherent in being a strategic partner on the one hand and an employee advocate on the other.
HR professionals must demonstrate that they can both represent employee needs and implement management agenda, be the voice of the employee and the voice of management, act as partner to both employees and managers.
HR professionals must strike a balance between the needs of these potentially competing stakeholders.
Being an effective HR professional does not mean simply moving from operational to strategic work. It means learning to master both operational and strategic processes and people.
The operational and transactional aspects of HR need to be handled well. No matter what other strategic and transformational work is being done, the trains still need to run on time.
A strategic partner has multiple dimensions → HR professionals as business partners operate in each of the 4 roles.
HR professionals, in order to meet the demands of these new roles, a shift in mindset and capability is a must.
S ummary