Lecture The changing role and functions of HR

Lecture The changing role and functions of HR. After completing this section, you will understand knowledge about: The evolution of HR; the changing role of HR; HR as strategic partner; HR as change agent • HR as employee advocate. Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.

Z u lkifli M o h d

19 October 2011

The C hanging Role

& Functions of HR

• H R as the e m ploye e ad vocate

• H R as the consultative busine ss partne r

• H R as the age nt of C hange

HR Republic S ummit 2011: Trends & C hallenges Unfold

The E volution of HR

• Prote ction for fe m ale

Labour/

Employment Manager

2001 till now: Strategic HR

1945 – 1979:

Personnel Mgt

1980 – 2000:

Human Resource / Compliance Officer

Origins of HR

A Brief His tory of HR

1890 - 1913 1914- 1939 1945 - 1979 1980- 1990 2000 till now

Welfare Officer

Labor Manager

Personnel Management

Human Resource Management

Training &

Development

Employee Relations

Survey Action Planning

continue to evolve

Welfare / Employee Care

Employee Welfare

Labor Relations

Employee Relations

Personnel Admin

Human Resource

Organizational Effectiveness

HR as Business Partner Culture

& Image

Performance Management HRIS

COE Shared Svc Centre

The C hanging Role of HR

HR is s hifting from focus ing on the

organization of the bus ines s to focus ing on

the bus ines s of the organization The C hanging Role of HR

HR is more important than ever, people are the only s us tainable s ource of competitive advantage.

W ats o n W yatt S tu d y

“ You can take my factories , burn up my buildings , but give me my

people, and I’ll bring my bus ines s right back again.”

H e n ry F o rd

-The C hanging Role of HR

E mployers want HR to addres s s trategic is s ues involving the

competitivenes s and performance of the firm… More than the role

of protector and adminis trator.

What C E Os Really Want from HR

Reality C heck

Requires HR to change:

The bus ines s environment: Requires companies to focus on:

action

advantage

Business savvy Align with strategy Strong bench

strength Change catalyst Help biz leaders to achieve objectives

What C E Os Really Want from HR

Reality C heck

A s urvey of 500 HR directors acros s E urope, the Middle E as t and As ia, found out that

only 15% of the activities carried out by HR departments are related to " pure s trategic interventions "

W ats o n W yatt S tu d y

The C hanging Role of HR

Reality C heck

HR needs to realign its service delivery model to add

more strategic value to the organization

The C hanging Role of HR

The S hift in the Balance of HR Roles

% of available resources

Need to expand focus beyond its traditional & transactional role.

Four Roles for HR

• Adminis trative E xpert

• E mployee C hampion

• C hange Agent

• S trategic Partner

The Role of HR

Ulrich’s Four-Role Model

Dave Ulrich identifies four distinct roles of HR professional that may add value to a business and create sustainable

competitive advantage.

S trategic Partner

Aligning HR & Bus ines s S trategy

Active Role in setting strategic direction

Effecting Transformation & Change

A dminis trative E xpert

Managing The Firm’s HR Infras tructure

Process Optimization & Efficiency

Ulrich’s Four-Role Model

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

S trategic Partner

• Develops & aligns strategies with biz

• Assists line managers in solving organization,

people & change-related issues

• Contributes to management team’s strategic

decision-making

• Fosters systems thinking, customer focus

• Strategically manages workforce development

C hange Agent

• Understands the organization’s culture & what

is effective and ineffective

• Institutionalizes change capability within the

organization

• Assists line managers to lead & facilitate change

• Acts as a consultant in organizational

effectiveness

• Enhances management development

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

Adminis trative E xpert

• Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs

• Ensures internal &external customer focus

• Applies information technology to rapidly

deliver quality HR products and services

E mployee C hampion

• Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment

• Ensures fair, ethical, and equitable people

processes and practices

• VOE

F u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu s

P E O P L E

S trategic Partner

• Develops & aligns strategies with biz

• Assists line managers in solving organization,

people & change-related issues

• Contributes to management team’s strategic

decision-making

• Fosters systems thinking, customer focus

• Strategically manages workforce development

C hange Agent

• Understands the organization’s culture & what

is effective and ineffective

• Institutionalizes change capability within the

organization

• Assists line managers to lead & facilitate change

• Acts as a consultant in organizational

effectiveness

• Enhances management development

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

Adminis trative E xpert

• Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs

• Ensures internal &external customer focus

• Applies information technology to rapidly

deliver quality HR products and services

E mployee C hampion

• Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment

• Ensures fair, ethical, and equitable people

processes and practices

F u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu s

P E O P L E

Ulrich’s Four-Role Model

when NOT done well… create a lot of

is s ues

S trategic Partner

• Develops & aligns strategies with biz

• Assists line managers in solving organization,

people & change-related issues

• Contributes to management team’s strategic

decision-making

• Fosters systems thinking, customer focus

• Strategically manages workforce development

C hange Agent

• Understands the organization’s culture & what

is effective and ineffective

• Institutionalizes change capability within the

organization

• Assists line managers to lead & facilitate change

• Acts as a consultant in organizational

effectiveness

• Enhances management development

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

Adminis trative E xpert

• Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs

• Ensures internal &external customer focus

• Applies information technology to rapidly

deliver quality HR products and services

E mployee C hampion

• Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment

• Ensures fair, ethical, and equitable people

processes and practices

F u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu s

P E O P L E

Ulrich’s Four-Role Model

when done well give the organization

a great s trategic advantage

HR as S trategic Partner

• Participates in designing & defining organization’s strategies

execution of strategies & the creation of value

HR as S trategic Partner

Deliverable/outcome: S trategy execution

S trate gic P artn e r

Plan and facilitate strategy deployment to the whole organization

Align the organization strategy with the business strategy to ensure it will be delivered

Redesign the organization to support strategy

HR as Strategic Partner should be able to:

Bus ines s Mas tery

Pers onal C redibility

HR Mas tery

Knowledge Requirements

HR as S trategic Partner

Becoming A S trategic Bus ines s Partner

Bring strong technical

expertise to the table

and an understanding of

your company and its

strategy

Develop new skills as

needed Understand the

data, the financials, the

market, etc

Becoming A S trategic Bus ines s Partner

Staying focused on issues that matter to the

business

Delivering capabilities that make a real difference

What are the issues that matter?

What’s keeping business leaders up at night?

What’s the “elephant on the table” regarding the future?

What drives the bottom line?

Focus on business objectives

Focus on environment

Provide organizational capabilities as required

by the strategy People

Goal alignment Culture

Knowledge Requirements

Bring strong technical

expertise to the table

and an understanding of

your company and its

strategy

Develop new skills as

needed Understand the

data, the financials, the

market, etc

Staying focused on issues that matter to the

What drives the bottom line?

Focus on business objectives

Focus on environment

Delivering capabilities that make a real difference

Staying focused on issues that matter to the

What drives the bottom line?

Focus on business objectives

Focus on environment

Provide organizational capabilities as required

by the business objectives:

People Strategy Culture

Delivering capabilities that make a real difference

Staying focused on issues that matter to the

What drives the bottom line?

Focus on business objectives

Focus on environment

Becoming a bus ines s partner s ounds eas y but in practice demands a s hift in minds et

and capability

HR as S trategic Partner

Becoming A S trategic Bus ines s Partner

• Becoming a true "player" on strategic business issues → able

Reward, Talent Management, OD, etc into integrated solutions and implement at speed

HR as S trategic Partner

Minds et S hift

You are involved in dis cus s ions (by invitation!) on the " people implications " of a change or a new initiative in the organization before things go wrong

Line Managers in confide in you about their concerns and problems , even when you are not providing a s olution then and there

Managers encourage you to tackle is s ues in their areas and expres s confidence in your ability to do things you may never have done before

You engage in genuine dialogue with line managers The time frame of your work moves from pres ent/pas t to future -

es pecially longer term future The " why” of what you is doing is very clear - in terms of organizational need (not " becaus e we always do it/ have done it)

HR as S trategic Partner

You are moving towards S trategic Partnering When…

HR as C hange Agent

A s ignificant number of any organization's bus ines s s trategies requires major changes in people-related is s ues ; the HR function and individual HR profes s ionals develop and manage the key " people" s ys tems needed to s upport organizational change

HR as C hange Agent

S imple — though not eas y

Model the change

C ommunicate about the change

E ngage others to participate Help others to break from the pas t

C reate a s upporting environment

HR as C hange Agent

The Roles

Before C hange

Preparing for C hange

Serves as a catalyst for change

Helps the organization build a

capacity for change

Plan change process with

sponsors

Ensure project team has

necessary skills, training

Coach sponsor

Lead by example by doing it

first within the HR function

Facilitate the discussions about the change and its content with all stakeholders

Coach leaders through the change

Acts as a coach/mentor to employees to help them understand change as it affects their lives

Emphasize ‘what is in it’ for the individuals and address

concerns Strike a balance between the business and employees Communicate, communicate, communicate

During C hange Managing C hange

Help employees to break from the past & adapt a new culture Sustain the momentum

Internalisation of new behaviour / way

Recognize & celebrate success Build on the change

Pos t-C hange Reinforcing C hange

The C hange Agent Role

“Yeah, I saw the memo”

“I understand where we need to go”

“I know how we need to

do our jobs differently”

“OK, I’m ready to do it the new way”

“This is the way we do things here”

Information with some involvement sufficient here

Significant involvement needed

• Secure

widespread shift in behaviour

• Underpin with

changes in structure &

people processes

• Strive for

continuous performance improvement

Break with the past Build the energy Performanc e lift-off Embed new culture Push the limits

The C hange Agent Role

The C hange Management Tool

The change has to be managed and the HR Professionals have to be skilled

in the change management process

The C hange Agent Role

The C hange Management Tool

A deep knowledge of change management processes Problem solving skills

Coaching & conflict management skills Good communication, influencing & facilitation skills Networking, Collaboration & team-building abilities Business mastery

Planning & project management skills Ability to tolerate ambiguity

A risk taker

The C hange Agent

C ompetencies

“ Of cours e change management is n’t res tricted exclus ively to HR Line managers are the owners of change while HR can be s een as its architect, facilitator and des igner Nobody ever s aid that only HR manages change.”

- Dave Ulrich

The C hange Agent

HR as E mployee Advocate

Partner With People &

E mployee development

C onducive climate &

culture

Employee Commitment & Competence

HR as E mployee Advocate

Managing E mployee C ontribution

Voice of the Employee Develop employee competence Equip managers with skills to respond effectively to employees; equip the employees with skills to overcome challenges

Create climate for action

Deliverable/outcome: increasing employee commitment and capability

It is HR’s role to ens ure that line managers unders tand the critical link between employee motivation and organis ational

need to be kept engaged and motivated.

HR as E mployee Advocate

Four-Role of HR

Paradoxes Inherent in Multiple HR Roles

Strategic Partner vs Employee Advocate

Success in multiple-role framework requires that HR professionals balance the tension inherent in being a strategic partner on the one hand and an employee advocate on the other.

HR professionals must demonstrate that they can both represent employee needs and implement management agenda, be the voice of the employee and the voice of management, act as partner to both employees and managers.

HR professionals must strike a balance between the needs of these potentially competing stakeholders.

Being an effective HR professional does not mean simply moving from operational to strategic work It means learning to master both operational and strategic processes and people.

The operational and transactional aspects of HR need to be

handled well No matter what other strategic and transformational work is being done, the trains still need to run on time.

A strategic partner has multiple dimensions → HR professionals as business partners operate in each of the 4 roles.

HR professionals, in order to meet the demands of these new roles,

a shift in mindset and capability is a must.

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