Transcript MANAGING CHANGE – A BUSINESS PERSPECTIVE

CHALLENGES & THE FUTURE OF
HUMAN RESOURCES
CONTENTS

Introduction

HR Traditional Roles

HRM in the 21st Century

HR as Strategic Partner

Delivery/Execution of Strategy

Strategy, Culture, & Leadership

Changing Role of Human Resource

Summary & Conclusion

Conclusion
INTRODUCTION




The business
revolutionized
environment
has
Business now
environment
operates
a
in
Advances in technology,
consumer demands
been
global
changes
in
A flexible and mobile workforce have been
instrumental in influencing this change
INTRODUCTION (CONT)

Organizations are thinking broadly and
about their impact beyond financial
performance in areas which comprise:

(a) corporate social responsibility;

(b) community and environment impact;
INTRODUCTION (CONT)

(c) ethics and social responsibility, and,

(d) employee value proposition

This rapid change in business environment
has required the HR function to evaluate
and quickly re-invent itself
HR TRADTIONAL ROLE



As significant changes occurs in the
approach to people management, the
traditional role of HR has evolved
enormously
The traditional HR functions of employee
service,
policy
development
and
maintenance
have
diminished
in
importance
The successful HR manager of today works
alongside the business as a strategic
partner, helping to integrate people
strategies with business strategies
HRM IN THE 21ST CENTURY



The competitive environment for Human
Resource Management (HRM)
HRM occurs not in vacuum, but in a
complex and dynamic milieu of forces
within organizational forces
HR Manager now have a strategic
perspective that recognizes the critical links
between organizational strategy and HR
strategy
HR AS STRATEGIC PARTNERS



HR professionals are required to transform
from
‘bureaucratic
managers’
to
professional skills in offering expert advice
coupled with commercial awareness and
business knowledge
HR function is no longer an administrative
function
In today’s business world, HR needs a long
term, strategic approach, and to be
proactively involved in organizational
decision making
HR AS STRATEGIC PARTNERS
(CONT)


As companies move into ‘war’ for talent
and as individuals with specialized
knowledge, skills, and expertise are seen as
scarce strategic resources
HR professional must be key players in
the design, development, and delivery of
company strategy
HR AS STARTEGIC PARTNER
(CONT)


As organization start to align people
strategy to business objective, with HR
becoming a business partner, it is
increasingly apparent that the credo
‘people are the most important asset’
must become meaningful and be reflected
in actions
The failure to harness the people power
of the organization is being felt by many
large organizations as they struggle to
sustain growth
HR AS STARTEGIC PARTNER
(CONT)


In fact, there has been a fundamental shift
in leadership thinking as business leaders
understand how people can differentiate
one organization from another
In highly competitive market place, with
products and services similar in design and
delivery, organizations can use their people
to improve their business performance and
set them apart from their competitor
HR AS STARTEGIC PARTNER
(CONT)


In fact, a lot of companies are
acknowledging that their people are the
only differentiating advantage that they
have
To become effective strategic business
partner, HR must be involved in
organizational decision making process
HR AS STRATEGIC PARTNER
(CONT)


This means building a strategic, long term
human capital vision so that HR can
proactively contribute to an organization’s
financial performance
People objectives should be aligned to
corporate objectives, underpinned at a
tactical and operational level through
connected people activities and operations
DELIVERY& EXECUTION OF
STRATEGY



Strategy is delivered by people, and
ultimately it is only as good as its execution
Execution relies on people within the
organization
The HR influence here relates to the ability
to change organization thinking about
people work practices.
DELIVERY& EXECUTION OF
STRATEGY (CONT)

This
is
necessary
to
create
an
environment that allows for successful
execution of strategy to help organization
achieve its goals and objectives
DELIVERY & EXECUTION OF
STRATEGY (CONT)



This links to both leadership and culture
It is the leaders in the organization that
defines the strategy and it is also their
behavior that defines the organizational
culture
A positive culture coupled with superb
execution
of
strategy
leads
to
organizational success through people
capability and engagement
STRATEGY, CULTURE &
LEADERSHIP



Strategy, culture and leadership play an
important part in organizational success
HR is a significant influence on strategy,
culture and leadership
One of the unique ‘value add’ that HR can
offer is in the linking of strategy, culture
and leadership and influencing at executive
level to drive the desired outcomes from
linkage
STRATEGY, CULTURE &
LEADERSHIP (CONT)



HR needs to work in partnership with the
CEO
in
developing
leadership
and
succession plan within the organization
This is about getting the right people with
the right skills into the organization and
developing key members from within
It is also important in getting this
combination in balance to the benefit of
the organization
STRATEGY, CULTURE &
LEADERSHIP (CONT)


With factors such as restructuring,
downsizing, delayering and a more mobile
workforce, most organization can no longer
can be assured of a steady stream of
leadership coming up through the ‘ranks’
There are also
demographic trends
causing a shrinking pool of talent
STRATEGY, CULTURE &
LEADERSHIP (CONT)


Change in global business environment has
also changed the role of today’s leaders;
thinking globally and acting locally
This change has taken a fundamental shift
from job description of the 1960’s and
1970’s and 1980’s
STRATEGY, CULTURE &
LEADERSHIP (CONT)

Words such as inspirational, visionary,
communicator, innovator are being used to
describe top leaders, changing the past
notion that leadership skills would be
automatically developed or accumulated as
individuals work their way through the
organization’s ranks
STRATEGY, CULTURE &
LEADERSHIP (CONT)


Continuity of strong leadership is
imperative to ongoing success and the right
style of leadership that is important to
leading high performing workforce
Succession planning and development has
become a strategic activity of utmost
importance
STRATEGY, CULTURE &
LEADERSHIP (CONT)


A survey by ‘Fortune 500’ companies found
that 85% of respondent believe there is
insufficient amount of employees with
global leadership skills
The majority of survey respondents in a
recent study by Arthur Anderson identified
global leadership development as a top
priority for their organization
STRATEGY, CULTURE &
LEADERSHIP (CONT)


Companies included in a Development
Dimension
International
(DDI)
study
examining the globalization of HR indicate
their top priority over the next two years is
leadership
development
(Corporate
Leadership Council, 2012)
HR must play a role in ensuring that the
activities of succession planning and
development receive the management focus
they warrant
STRATEGY, CULTURE &
LEADERSHIP (CONT)


HR must partner with business leaders to
help ensure the bench strength of the
management team
Identify a supply of executive talent which
will allow the organization to be well
positioned for future challenges and
opportunities
STRATEGY, CULTURE &
LEADERSHIP (CONT)

In understanding and defining leadership
criteria, HR is accountable for building and
implementing the talent management
framework that allow for:
(a) Identification of individual for future
leadership
(b) Support in coaching, mentoring, and
communication
STRATEGY, CULTURE &
LEADERSHIP (CONT)
© External screening of potential
leaders

By creating this management depth, the
organization improves its ability to achieve
its corporate goals and objectives
STRATEGY, CULTURE &
LEADERSHIP (CONT)

As lamented by Watson Wyatt Worldwide
study:
‘the more comprehensive a company’s
leadership development effort, the
better the financial results were on the
critical financial measures’ (Watson
Wyatt Worldwide, 2012)
STRATEGY, CULTURE &
LEADERSHIP (CONT)



HR is also accountable in supporting the
organization’s people leaders across all
organizational levels
The changing business environment has
largely driven changes in corporate culture
Some organizations have managed to
successfully adapt whilst others are
struggling to do so
STRATEGY, CULTURE &
LEADERSHIP (CONT)


Successful adaptation has seen organizations
examine their structures, method of decision
making, organizational strategy, and style of
interaction
with
the
environment,
their
employees, and the community
Simply put, changes in corporate culture is
necessary to remain competitive and successful in
this changing and dynamic environment
CHANGING ROLE OF HR



Changes in HR functions opens some new
and challenging issues for today’s HR
practitioner’s
As such, HR practitioner’s are required to
transform their expertise and behaviors
to suit this new environment
Just as the skill set for today’s business
leaders has changed, so it is the case for
the successful HR practitioners
CHANGING ROLE OF HR

As Stone observes: ‘HR managers must be able
to ask appropriate questions and contribute to
business decisions. Consequently, the HR
Manager must develop business acumen, a
customer orientation, and an awareness of the
competition to be able to link business strategy
to HR polices and practices’ (Stone, 1998)
SUMMARY & CONCLUSION

Global Influence

Internal/External Forces

New Ways of doing Business

Changes saw evolution of functions of HR

To keep abreast with changes, Strategic HRM
is imperative
SUMMARY & CONCLUSION



HR practitioner’s as strategic partners in the
business
Strategy, Culture, and Leadership are key
strategic issues
Corporate
accomplished.
Goals/Objectives
are
CONCLUSION

‘Change activism is about taking control at
personal level; Change activism turns up the
volume on things you care about; Change
activism also has business benefits; Our
species and our planets need change
activism’
(Carmel McConnell (2012)