CHALLENGES & THE FUTURE OF HUMAN RESOURCES. CONTENTS Introduction Introduction HR Traditional Roles...

CHALLENGES & THE FUTURE OF CHALLENGES & THE FUTURE OF HUMAN RESOURCESHUMAN RESOURCES

CONTENTSCONTENTS IntroductionIntroduction

HR Traditional RolesHR Traditional Roles

HRM in the 21HRM in the 21stst Century Century

HR as Strategic PartnerHR as Strategic Partner

Delivery/Execution of StrategyDelivery/Execution of Strategy

Strategy, Culture, & LeadershipStrategy, Culture, & Leadership

Changing Role of Human ResourceChanging Role of Human Resource

Summary & ConclusionSummary & Conclusion

ConclusionConclusion

INTRODUCTIONINTRODUCTION The business environment has been The business environment has been

revolutionizedrevolutionized

Business now operates in a Business now operates in a globalglobal environmentenvironment

Advances in Advances in technologytechnology, changes in , changes in consumerconsumer demands demands

A A flexiblflexible and e and mobilemobile workforce have workforce have been instrumental in influencing this been instrumental in influencing this changechange

INTRODUCTION (CONT)INTRODUCTION (CONT) Organizations are thinking Organizations are thinking broadlybroadly

and about their impact and about their impact beyondbeyond financial performance in areas which financial performance in areas which comprise:comprise:

(a) (a) corporate social corporate social responsibility;responsibility;

(b) community and (b) community and environmentenvironment impact; impact;

INTRODUCTION (CONT)INTRODUCTION (CONT) (c) (c) ethicsethics and and social social responsibility, responsibility,

and,and,

(d) employee (d) employee valuevalue proposition proposition

This rapid This rapid changechange in business in business environment has required the HR environment has required the HR function to function to evaluateevaluate and quickly and quickly re-re-invent invent itself itself

HR TRADTIONAL ROLEHR TRADTIONAL ROLE As significant As significant changeschanges occurs in the occurs in the

approach to approach to people managementpeople management, the , the traditional role of HR has traditional role of HR has evolvedevolved enormouslyenormously

The The traditionaltraditional HR functions of HR functions of employee service, policy development employee service, policy development and maintenance have and maintenance have diminisheddiminished in in importanceimportance

The successful HR manager of today The successful HR manager of today works alongside the business as a works alongside the business as a strategicstrategic partnerpartner, helping to , helping to integrateintegrate people strategies with people strategies with business strategiesbusiness strategies

HRM IN THE 21HRM IN THE 21STST CENTURY CENTURY The The competitivecompetitive environment for environment for

Human Resource Management (HRM)Human Resource Management (HRM)

HRM occurs not in HRM occurs not in vacuumvacuum, but in a , but in a complexcomplex and and dynamicdynamic milieu of milieu of forcesforces within organizational forceswithin organizational forces

HR Manager now have a HR Manager now have a strategicstrategic perspective that recognizes the critical perspective that recognizes the critical linkslinks between organizational strategy between organizational strategy and HR strategyand HR strategy

HR AS STRATEGIC HR AS STRATEGIC PARTNERSPARTNERS HR professionals are required to HR professionals are required to transformtransform

from from ‘bureaucratic managers’ ‘bureaucratic managers’ to to professional skills professional skills in offering in offering expertexpert advice coupled with advice coupled with commercialcommercial awareness and business knowledgeawareness and business knowledge

HR function is HR function is nono longer an longer an administrativeadministrative functionfunction

In today’s business world, HR needs a long In today’s business world, HR needs a long term, term, strategic approachstrategic approach, and to be , and to be proactivelyproactively involved in organizational involved in organizational decision makingdecision making

HR AS STRATEGIC PARTNERS HR AS STRATEGIC PARTNERS (CONT)(CONT)

As companies move into As companies move into ‘war’ ‘war’ for for talent talent and as individuals with and as individuals with specializedspecialized knowledge, skills, and knowledge, skills, and expertise are seen as expertise are seen as scarce scarce strategic strategic resourcesresources

HR HR professionalprofessional must be must be key players key players in the design, development, and in the design, development, and deliverydelivery of company strategy of company strategy

HR AS STARTEGIC HR AS STARTEGIC PARTNER (CONT)PARTNER (CONT)

As organization start to As organization start to alignalign people people strategy to business objective, with strategy to business objective, with HR becoming a HR becoming a business partnerbusiness partner, it , it is increasingly apparent that the credo is increasingly apparent that the credo ‘people are the most important ‘people are the most important asset’ asset’ must become meaningful and must become meaningful and be reflected in actionsbe reflected in actions

The failure to The failure to harnessharness the the people people power power of the organization is being of the organization is being felt by many large organizations as felt by many large organizations as they struggle to they struggle to sustainsustain growth growth

HR AS STARTEGIC PARTNER HR AS STARTEGIC PARTNER (CONT)(CONT)

In fact, there has been a In fact, there has been a fundamental shift fundamental shift in in leadershipleadership thinking as thinking as business leaders business leaders understand how understand how peoplepeople can can differentiatedifferentiate one organization from anotherone organization from another

In highly In highly competitivecompetitive market place, with market place, with products products and and servicesservices similar in design and similar in design and delivery, organizations can use their delivery, organizations can use their people people to to improveimprove their business performance and their business performance and set them apart from their set them apart from their competitorcompetitor

HR AS STARTEGIC PARTNER HR AS STARTEGIC PARTNER (CONT)(CONT)

In fact, a lot of companies are In fact, a lot of companies are acknowledgingacknowledging that their that their peoplepeople are are the only the only differentiating advantage differentiating advantage that they havethat they have

To become effective To become effective strategic strategic business partnerbusiness partner, HR must be , HR must be involved in organizational involved in organizational decision decision making making processprocess

HR AS STRATEGIC PARTNER HR AS STRATEGIC PARTNER (CONT)(CONT)

This means building a This means building a strategicstrategic, long , long term human capital term human capital visionvision so that HR so that HR can can proactivelyproactively contribute to an contribute to an organization’s financial performanceorganization’s financial performance

People objectives should be People objectives should be alignedaligned to to corporate objectives, underpinned at a corporate objectives, underpinned at a tacticaltactical and and operationaloperational level through level through connected people activities and connected people activities and operationsoperations

DELIVERY& EXECUTION OF DELIVERY& EXECUTION OF STRATEGYSTRATEGY

Strategy is Strategy is delivereddelivered by people, and by people, and ultimately it is only as ultimately it is only as goodgood as its as its executionexecution

Execution Execution reliesrelies on on peoplepeople within the within the organizationorganization

The HR influence here relates to the The HR influence here relates to the abilityability to to changechange organization organization thinkingthinking about people about people work practiceswork practices..

DELIVERY& EXECUTION OF DELIVERY& EXECUTION OF STRATEGY (CONT)STRATEGY (CONT)

This is necessary to This is necessary to createcreate an an environmentenvironment that allows for that allows for successful execution of strategy to help successful execution of strategy to help organization organization achieveachieve its goals and its goals and objectivesobjectives

DELIVERY & EXECUTION OF DELIVERY & EXECUTION OF STRATEGY (CONT)STRATEGY (CONT)

This links to both This links to both leadershipleadership and and cultureculture

It is the leaders in the organization that It is the leaders in the organization that definesdefines the the strategystrategy and it is also their and it is also their behaviorbehavior that defines the organizational that defines the organizational cultureculture

A positive A positive cultureculture coupled with superb coupled with superb executionexecution of strategy leads to of strategy leads to organizational success through organizational success through peoplepeople capability and engagementcapability and engagement

STRATEGY, CULTURE & STRATEGY, CULTURE & LEADERSHIPLEADERSHIP

Strategy, culture and leadership play an Strategy, culture and leadership play an importantimportant part in organizational success part in organizational success

HR is a significant HR is a significant influenceinfluence on strategy, on strategy, culture and leadershipculture and leadership

One of the unique One of the unique ‘value add’ ‘value add’ that HR that HR can offer is in the can offer is in the linking linking of strategy, of strategy, culture and leadership and influencing at culture and leadership and influencing at executive level to executive level to drivedrive the desired the desired outcomes from linkageoutcomes from linkage

STRATEGY, CULTURE & STRATEGY, CULTURE & LEADERSHIP (CONT)LEADERSHIP (CONT)

HR needs to work in HR needs to work in partnershippartnership with with the CEO in developing the CEO in developing leadershipleadership and and successionsuccession planplan within the organization within the organization

This is about getting the This is about getting the rightright people people with the with the rightright skills into the organization skills into the organization and developing and developing keykey members from within members from within

It is also important in getting this It is also important in getting this combinationcombination in balance to the in balance to the benefit benefit of the organizationof the organization


With With factorsfactors such as restructuring, such as restructuring, downsizing, delayering and a more downsizing, delayering and a more mobile workforce, most organization mobile workforce, most organization can no longer can be assured of a can no longer can be assured of a steady stream of leadership coming up steady stream of leadership coming up through the ‘ranks’through the ‘ranks’

There are also There are also demographicdemographic trends trends causing a shrinking pool of talentcausing a shrinking pool of talent

STRATEGY, CULTURE & STRATEGY, CULTURE & LEADERSHIP (CONT) LEADERSHIP (CONT)

Change in global business Change in global business environmentenvironment has also has also changedchanged the the role of today’s leaders; thinking role of today’s leaders; thinking globallyglobally and and acting locallyacting locally

This change has taken a This change has taken a fundamentalfundamental shift from shift from job description job description of the of the 1960’s and 1970’s and 1980’s1960’s and 1970’s and 1980’s


Words such as Words such as inspirationalinspirational, visionary, , visionary, communicator, innovator are being communicator, innovator are being used to describe top leaders, used to describe top leaders, changingchanging the past notion that the past notion that leadershipleadership skills skills would be automatically developed or would be automatically developed or accumulated as individuals work their accumulated as individuals work their way through the organization’s ranksway through the organization’s ranks


Continuity of Continuity of strong leadership strong leadership is is imperative to ongoing success and the imperative to ongoing success and the rightright style of leadership that is style of leadership that is important to leading important to leading highhigh performing performing workforceworkforce

Succession planning and development Succession planning and development has become a has become a strategic activity strategic activity of of utmost importanceutmost importance


A survey by ‘Fortune 500’ companies A survey by ‘Fortune 500’ companies found that 85% of respondent believe found that 85% of respondent believe there is there is insufficientinsufficient amount of employees amount of employees with with global leadership skillsglobal leadership skills

The majority of survey respondents in a The majority of survey respondents in a recent study by Arthur Anderson identified recent study by Arthur Anderson identified global leadership development global leadership development as a as a top priority for their organizationtop priority for their organization


Companies included in a Development Companies included in a Development Dimension International (DDI) study Dimension International (DDI) study examining the examining the globalizationglobalization of HR of HR indicate their indicate their top priority top priority over the next over the next two years is leadership development two years is leadership development (Corporate Leadership Council, 2012)(Corporate Leadership Council, 2012)

HR must play a role in ensuring that the HR must play a role in ensuring that the activities of activities of succession planning succession planning and and developmentdevelopment receive the management receive the management focus they warrantfocus they warrant


HR must HR must partnerpartner with business leaders with business leaders to help ensure the to help ensure the benchbench strength of strength of the management teamthe management team

Identify a supply of Identify a supply of executiveexecutive talent talent which will allow the organization to be which will allow the organization to be well well positionedpositioned for future for future challengeschallenges and and opportunitiesopportunities


In understanding and defining leadership In understanding and defining leadership criteria, HR is criteria, HR is accountableaccountable for building and for building and implementing the implementing the talenttalent managementmanagement framework that allow for:framework that allow for:

(a) (a) IdentificationIdentification of individual for future of individual for future leadershipleadership

(b) (b) SupportSupport in coaching, mentoring, and in coaching, mentoring, and communicationcommunication

--

STRATEGY, CULTURE & STRATEGY, CULTURE & LEADERSHIP (CONT)LEADERSHIP (CONT)© © External External screeningscreening of of

potential potential leadersleaders

By creating this By creating this management depthmanagement depth, , the organization improves its the organization improves its abilityability to to achieve its corporate goals and achieve its corporate goals and objectivesobjectives


As lamented by Watson Wyatt As lamented by Watson Wyatt Worldwide study: Worldwide study:

‘‘the more the more comprehensivecomprehensive a a company’s company’s leadershipleadership development development effort, the effort, the betterbetter the the financial financial results results were on the were on the critical financial critical financial measures’ (Watson measures’ (Watson Wyatt Worldwide, Wyatt Worldwide, 2012)2012)


HR is also HR is also accountableaccountable in supporting the organization’s in supporting the organization’s people leaders across all organizational levelspeople leaders across all organizational levels

The The changingchanging business environment has largely driven business environment has largely driven changes in changes in corporate culturecorporate culture

Some organizations have managed to Some organizations have managed to successfully successfully adapt adapt whilst others are struggling to do sowhilst others are struggling to do so

Need for Mixed Competencies that Represent a mix of skillsNeed for Mixed Competencies that Represent a mix of skills


Successful adaptation has seen organizations Successful adaptation has seen organizations examineexamine their their structuresstructures, method of , method of decisiondecision making, organizational making, organizational strategystrategy, , andand style style of of interactioninteraction with the with the environment, their employees, and the environment, their employees, and the communitycommunity

Simply put, changes in Simply put, changes in corporate culture corporate culture is is necessary to remain necessary to remain competitivecompetitive and and successful in this changing and dynamic successful in this changing and dynamic environmentenvironment

CHANGING ROLE OF HRCHANGING ROLE OF HR Changes in HR functions opens some Changes in HR functions opens some

newnew and and challengingchallenging issues for issues for today’s HR practitioner’stoday’s HR practitioner’s

As such, HR practitioner’s are required As such, HR practitioner’s are required to to transformtransform their their expertiseexpertise and and behaviorsbehaviors to suit this new to suit this new environmentenvironment

Just as the Just as the skill set skill set for today’s for today’s business business leadersleaders has changed, so it is has changed, so it is the case for the the case for the successfulsuccessful HR HR practitionerspractitioners

CHANGING ROLE OF HRCHANGING ROLE OF HR As Stone observes: ‘HR managers must be As Stone observes: ‘HR managers must be

able to ask appropriate questions and able to ask appropriate questions and contribute to business decisions. contribute to business decisions. Consequently, the HR Manager must Consequently, the HR Manager must develop business acumen, a customer develop business acumen, a customer orientation, and an awareness of the orientation, and an awareness of the competition to be able to link business competition to be able to link business strategy to HR polices and practices’ strategy to HR polices and practices’ (Stone, 1998)(Stone, 1998)

SUMMARY & CONCLUSIONSUMMARY & CONCLUSION Global Influence Global Influence

Internal/External ForcesInternal/External Forces

New Ways of doing BusinessNew Ways of doing Business

Changes saw evolution of functions of HRChanges saw evolution of functions of HR

To keep abreast with changes, Strategic To keep abreast with changes, Strategic HRM is imperativeHRM is imperative

SUMMARY & CONCLUSIONSUMMARY & CONCLUSION HR practitioner’s as strategic partners HR practitioner’s as strategic partners

in the businessin the business

Strategy, Culture, and Leadership are Strategy, Culture, and Leadership are key strategic issueskey strategic issues

Corporate Goals/Objectives are Corporate Goals/Objectives are accomplished.accomplished.

CONCLUSIONCONCLUSION ‘‘Change activism is about taking Change activism is about taking

control at personal level; Change control at personal level; Change activism turns up the volume on things activism turns up the volume on things you care about; Change activism also you care about; Change activism also has business benefits; Our species and has business benefits; Our species and our planets need change activism’our planets need change activism’

(Carmel McConnell (2012)(Carmel McConnell (2012)

CHALLENGES & THE FUTURE OF HUMAN RESOURCES. CONTENTS Introduction Introduction HR Traditional Roles...

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