Presentation Outline
Market analysis and its impact on HR Business plan Structure-HR consideration Case study Transformation Statistics The Transformation Wave The Changing Role of HR The Business Partner Role Key Roles of HR as a Business Partner Conclusion
National Advantage in HR
Chance Firm Strategy Structure and Rivalry
Factor Conditions
Government
HR issues
Competition in the labour market Rivalry between competitors Demographics (customers) Age structure, lifelong employment? Rokkies, who will be accepted? Staff from related industries Domestic-versus regional global demand
New Entrants-Incumbent
Offer better salary-promotion- trend New technology-support (capacity building) High responsibility deliver-promotion Competence gap Outsourcing of training-to whom The role of education systems
Competitive Advantage
Lower Cost Differentiation
Broad Target
Competitive Scope
Narrow Target
Cost Leadership
Differentiation
Cost Focus
Focused Differentiation
Statistics of HR Transformation
50% of organisations are in the middle of transforming their HR functions; 12% completed their HR transformations in the past year;
HR Transformation
Process of Recreating the HR function so as to enhance HR contribution to the business
It involves a shift from the internal operations (transactional, inward) activities to a more market perspective related performance. Over the years role has been evolving, but within its HR (Personnel) box. Current transformation is breaking outside the box
Now HR transformation deals with issues of Organisational Renewal, Change Management, Business Success, Business intellegence, Culture, Behavioral Change.
Transformation Wave
5-10 years ago: focused on improving technology and service delivery, technology shift gives new aspects Competition, Time to market, Intranet, Restructuring/Rightsizing, Outsourcing This was the role of HR as a Consultant. Role did not transform the HR function into a business partner Now HR is being called up to deliver
Transformation Wave
HR Business Partnering model often started off as a Cost Saving initiative, responding to a Business Directive. This was the Driving force of the model in the 90s. Led to the introduction of IT Driven HR Services, Selfservice forms processes etc.
What started as a Cost Reduction/Competition Program ended up as a Revitalisation of the whole HR Activity
Now HR is the driving the vision-strategy targets Closer follow up related to market changes
Changing Role of HR
HR ROLE/CONTRIBUTION
BUSINESS PARTNER
CONSULTANT
TRANSACTIONAL
LOW VALUE
HIGH VALUE
Changing Role of HR
TRANSACTIONAL CONSULTANT BUSINESS PARTNER
Integrate Strategy
Outward
Proactive
Transactional example of HR
Delivering a Service to a client or end user. Recruit an Engineer Investigate a discipline Case Book Training for the participants to the Cairo Workshop Provide Consulting Plus all the other Record keeping Functions
CONSULTANT
Provide HR to a Business Unit in order to solve a specific problem. Define competence requirements Giving advice in dealing with specific issues eg.: How to stop a Competitor from poaching your staff; How to create a Customer Care Culture.
PARTNER
Working with the top Management Team as a partner in: Participating in defining Business Strategy. Actively live up to Vision and mission statement Influencing change in Strategy in view of the organizations Talent Base, or ability to build one in the short Term. Develop capacity building Implementing the HR component of the Business Strategy.
They play a role in building and shaping not just staffing- enterprise Strategy.
Discuss priorities
What priorities in you county ? Depending on situation Process job design Define future workforce sizecompetence Capacity building Define redundancy
1. WORKFORCE STRATEGIST
Crafting workforce Strategies with an eye on global trends Conscious of the Challenge of Attraction and Nurturing Capacity building Next Generation Perspective including technology shift Understanding of the Needs of Todays Workforce
Making choices among options of maximizing performance of workforce CHRO must be a Rewards Program Structuring the job design, a change Master
Still Delivering HR Admin and operations in a Cost Effective way. A mix of Self Service operations, use of Vendors (outsource) and integrating these into one whole.
Maintaining and improving companys image and being an attractive employer Exemplify Be involved at the sharp end of the business, (time to market etc)
The business environment (SWOT, competitor moves, market share, etc.) Understanding customers, customer profiles (segments) and their needs. Why ?
HR as Capacity builder
Participate in formulation of list of organisational and individual competencies linked to the corporate goals or strategies and support systems Develop access to information and has key role in information dissemination (analyze shifts in market and draw conclusions on HR need Identifying, nurturing, developing and untapping human talent.
HR as Knowledge Facilitator
This assumes HR is involved in the formulation of the Organisations Vision, Mission and Business Strategy; Must be part of the Management to advise on what is possible given the stock of talent and capacities available in the oganisation; Propose Strategies that best attracts and retains the talent that will deliver on the Business Objectives.
HR as Relationship builder
Both internal and external customers (follow market demand Supply Chain Management (in telecoms this is important for maintenance of brand image and brand integrity Branding ? is a powerful tool for promoting Culture. A growing school of thought is that Branding is as much an HR responsibility as it is a PR function because of its power to attract and retain employees. Managing diversity
But it is up to the HR Function to rise to this Challenge. In fact, it is up to the HR professionals to rise to the new challenge of the HR function.
After all, this is what we have been asking for.
CONCLUSION
As Human Capital Related Issues Continue to Challenge on Organisations overall Strategy, The Human Resources manager must become a familiar face in the Management Team and a potent force in the boardroom.
CONCLUSION
Findings however reveal a troubling gulf between the needs of the business and the ability of HR to respond. This is forcing companies to rethink their approach to the recruitment, training and development of HR