Post on 19-Jan-2016
HRM Past >Present >Future >>>Presentation by Dayanand AllapurHead of Human Resources, Tesco HSC
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Paradigm Shifts in 3 decades post liberalisation
mostly transaction
al
Transformation
of IR into Personnel and
HR
Brain drain out
of the country
Booming of
telecom and start up of IT
Growth of mfg
and services
1990’s
Business Partnering
role
Transformation of HR into a
strategic function
Migration of
knowledge talent across country
MNC’s and pure play
Indian companies
Growth of FDI in IT and ITES
2000’s
Internal Consultin
g/ Customer
facing
Change in demographics , socio economic
trends redefining
HR
Rural Indian
emerging as key markets in retail
Global orgs,
MNC’s and
strong Indian players
Growth of ITES up the value chain and
Growth of retail
2010’s
Evolution of Industry post liberalization
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● Liberalization - A historic decade in India
● Liberalized economic policies
● Contribution of Manufacturing & Service sector to GDP increased rapidly
● Overwhelming migrants out of India
● Exponential Growth of IT/ITES & Telecom
● Indian outsourcing valued at $60BN
● Direct employment 2.3mn. Indirect to 6.5 million
● Telecom contributed to 1% of the GDP
● Foray of 'Organized Retail Sector'
● IT/ITES to move up to knowledge value chain
● Retail industry to contribute 10% of the GDP
● 'Organized Retail estimated to reach US $50 billion by 2011 and to be worth US $ 175-200BN by 2016 with 25% pa growth
● Retail inching towards next boom in India
1990’s 2000’s 2010’s
Retail Industry in India
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Retail Industry Opportunities
•35% y-o-y growth in the last few years•Raising consumption expenditure and disposable income•Top 20 cities generated 60% of surplus income and 31% disposable income•Efficient supply chains•Ability to penetrate rural market•Expected to grow at a CAGR* 23% to 25% between 2008 to 2022•Increasing size from Rs.96,500 crore (US $19 billion) in 2008 to Rs.17,36,000 (US $347to350 billion) in 2022
HR Challenges
•Skills unique to different segments and formats in organised Retail•Demand side issues in Human Resource (Communication and other softskill, Lack of product/process knowledge, Poaching across industries, etc.,)•Supply side issues in Human Resource (Limited training opportunities, Demand of manpower in big cities being met with people from smaller cities, finding higher skill level candidates in smaller cities, etc.,)•Human Resource requirement (in 000’s):•PG – 867•Graduate – 5202•Diploma/Vocational – 1734•12th standard – 6937•10th standard – 2601
CAGR: Compound Annual Growth Rate
4% to 5 % Skill level 4 (skills which
are highly specialized involving
research and design)
30% to 33 %Skill level 3 (skills which require long drawn preparation as
demonstrated by acquisition of degrees, and involve highly technical
or functional skills)
10% to 15 % Skill level2 (Skills which require technical training inputs, knowledge of complex operations and machinery, skills of supervision)
50% to 53% Skill level1 (skills which can be acquired with a short/modular and focussed intervention and thereby enhancing
employability of those with a minimal education)
Skill pyramid for organized retail-emerging industry…
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The skill pyramid, in summary, captures where the Organized Retail Industry stands relatively in terms of skills (a function of activity, educational requirements, and amount of ‘preparatory’ time required to inculcate a specific skill) as compared to all other industries.
4% to 5 %
30% to 33%
10% to 15 %
50% to 53 %
HR Challenges
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HR Challenges
Profession Art VS Science
Influence
Board Room Vs Department
Perception Enforcer Vs
Advocate
Skill Transactional Vs Transformational
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Evolution of HR in India post liberalization…
1990’s
Transformation IR > Personnel> HR
Policies, labour relations,
Welfare, compensation, benefits
2000’s
Strategic HR and Business Partnering
Business partnering through performance management, training and development,
talent management, quick development of broad
based selection
2010
HR as Internal Consultants
Transactional roles being outsourced,
Transformational roles on building talent,
capability, culture, consulting
Strategic Partner
Strategic HR Planning
HR as Business Partner
Culture and Image
Administrative Expert
Comp & Benefits
HR Info Systems
Compliance
Change Agent
Talent Management
Organizational Design
Survey Action Planning
Performance MgmntTraining & Development
Employee Relations
Labor Relations
Safety & Workers’
Compensation
Diversity and EEO
Four Roles and Sixteen Accountabilities – Ulrich’s model
Processes People
Day-to-day operational focus
Future/strategic focus
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The Future of HR Profession….
Some questions for us to ask ourselves….
What is the most compelling work in HR Today?
What skills/experience are necessary for the successful HR Professional today?
How will the way HR work done today change in the next decade?
How will outsourcing play a part in the future?
Will the HR function survive in the next decade?
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The Future of HR Profession….
Some questions for us to ask ourselves….
What is the most compelling work in HR Today?
What skills/experience are necessary for the successful HR Professional today?
How will the way HR work done today change in the next decade?
Will the HR function survive in the next decade?
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The Future of HR Profession….
What is the most compelling work in HR Today?
Globalization Flawless execution
Partnering with executive leadership Managing HR technology
Measurement / bottom-line impact
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The Future of HR Profession….
What skills/experience are necessary for the successful HR Professional today?
1. Business skills-knowing how business works
2. Leadership skills-ability to create a vision & strategy
3. Consulting skills - focus on ability to market their work
4. Technology skills-proficiency in broad HR applications
5. Global mindset-understand dynamics of global market place
6. Change management
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The Future of HR Profession….
Will the HR function survive in the next decade?
1. Its not about HR survival-but in what form & shape!
2. HR Function may get outsourced!
3. HR will have to learn “what” & “how” to Outsource!
4. HR must define standards / License for the profession
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The Future of HR Profession….
How will the way HR work done today change in the next decade?
1. Dramatic shift in use of technology
2. Self service- web based technologies
3. Ever more sophisticated Call centers
4. Outsourcing- new meaning to HR internal & external
5. Cloud computing!
6. Globalization- work gets done with follow the sun model..
HR The peoples business!
If businesses managed their money as carelessly as they managed their people, most would be bankrupt!
- Ram Charan & Bill Conaty- “Talent Masters”