HRM Past >Present >Future >>>Presentation by Dayanand AllapurHead of Human Resources, Tesco HSC

2

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

3

● 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

4

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…

5

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

6

HR Challenges

Profession Art VS Science

Influence

Board Room Vs Department

Perception Enforcer Vs

Advocate

Skill Transactional Vs Transformational

7

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 PartnerStrategic HR Planning

HR as Business Partner

Culture and Image

Administrative ExpertComp & 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

9

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?

10

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?

11

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

12

The Future of HR Profession….

What skills/experience are necessary for the successful HR Professional today?

1. Business skills-knowing how business works2. Leadership skills-ability to create a vision & strategy

3. Consulting skills - focus on ability to market their work4. Technology skills-proficiency in broad HR applications

5. Global mindset-understand dynamics of global market place6. Change management

13

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

14

The Future of HR Profession….

How will the way HR work done today change in the next decade?

1. Dramatic shift in use of technology2. Self service- web based technologies3. Ever more sophisticated Call centers

4. Outsourcing- new meaning to HR internal & external5. 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”