futureofhr2 [edocfind.com]

8/2/2019 FutureofHR2 [EDocFind.com]

1/19

THE FUTURE OF HR?

Prof. Navin Mathur

Vice ChancellorJai Narain Vyas University, Jodhpur


2/19

SHIFTS THAT ARE RE-SHAPING HR ROLES

FROM

Local markets, operations

Manufacturing, clerical work

Hierarchy

Intermediaries; face-to-face

Obedience to formal authority

Stability, efficiency, controlFull time job

Customer service

Work done by employees

Fixed work location

Management prerogative

Loyal service

White, male workforce

Financial performance

Get a job

TO

Global markets, operations

Service, knowledge work

Networks

Direct access,virtual relationship

Questioning of formal authority

Change, creativity, flexibility, orderPart-time and project work

Shareholder, stakeholder value

Work done by many contributors

Diverse work locations

Social licence

Marketable knowledge, skills

Diverse workforce

Triple bottom line

Get a life


3/19

CHANGING WORKER ASPIRATIONS

RICHARD BRANSON

MICHAEL JORDAN

RICHARD BORES (Wizard Home Loans)

MERY STREEP AND JODIE FOSTER

ANITA RODDICK

NELSON MANDELA AND JERRY MAGUIRE

had a dream and went through with it...loved what he didlives life the way he wants... created this lifestyle for herself outof what could have been a downward spiralreally inspiring

AFR BOSS magazine, June 2001. Survey of work role models for white collar

Australians, in 20-30 years age range.


4/19

HR AT A CROSSROADS

Significant change is inevitable for HR but what HR will be

and do is not yet clear

SRHM is doing research to develop a vision for the future of HR

and a profile of the future HR practitioner

An HR practitioner might be "a hybrid line manager" who is"first and foremost a business executive" but has expertise inat least one HR function.SHRM President and CEO, Helen Drinan

We have to get management to understand that they'reresponsible for people AND If we do our joband workourselves out of a jobso be it."

Results of a forum on the "The State of the HR Profession"

held in conjunction with the 2001 Annual Conference of theSociety for Human Resource Management

Also see FT.com online forum on Human Resources: A career in crisis?


5/19

EMERGING LEGAL ISSUES AT WORK

NEW TECHNOLOGY ISSUES

AGE CONSCIOUSNESS IN THE WORKPLACE

GLOBALISATION OF EMPLOYMENT LAW

TRAINING FOR LEGAL COMPLIANCE

WORKPLACE SAFETY


6/19

HR EXECUTIVES VIEW OF THE FUTURE

TOP 5 BUSINESS CHALLENGES Developing new markets

Improving profitability

Market share growth

Becoming the recognisedglobal market leader

Building shareholder value

TOP 3 HR CHALLENGES

Attracting and retainingtalented people

Improving organisational

capabilities

Developing leadership skills


7/19

The bad and the ugly in HR

Many HR people still lack business acumen

We have not adequately managed high expectations

of HR

Theres too much modeling of mediocrity and way toolittle real research going on

We have overhyped e-learning and some other fads

We do much order-taking and mistaking talk foraction


8/19

DEFENCE: In the Box Scenario Matrix

Open globalised

world economy

Closed

protectionistworld economy

Social

polarisationand exclusion

Global

middleclass

Source: Hardin Tibbsreport to AustralianDefence HQ 1999


9/19

DEFENCE: Way Out of the Box Scenario Matrix

Revolution in

basic science

Science

reaches aplateau

Psycho-social

evolutionarypunctuationDiscontinuity in humanconsciousness

Single

worldgovernment

Social progress withno discontinuity

Source: Hardin Tibbsreport to AustralianDefence HQ 1999


10/19

TWO SCENARIOS OF THE 21ST CENTURY ORGANISATION

MIT Initiative on Inventing the Organizations of the 21stCentury (January 1997) facilitated by Peter Schwartz ofthe Global Business Network:-

http://ccs.mit.edu/21c/21CWP001.html

The scenarios were developed during 1994-1997 by MITacademic and research staff in discussions withhundreds of executives at various MIT Symposia,

executive education programs, etc.


11/19

FUTURE OF ORGANISATIONS: Scenario 1

SMALL COMPANIES,LARGE NETWORKS Autonomous teams of 1-10 people

Temporary - task or project based

Linked by high bandwidth, electronic network

Venture capital infrastructure identifies promising teams and

provides financing

Independent organisations for social networking, recreation,learning,reputation building and income smoothing

evolved from professional associations, unions, clubs,university alumnis, neighbourhoods, families, churches

they are home for our identity as projects come and go

Examples: Film industry; Prato Mills (Italy); Nike; Nokia PC Display Division


12/19

Small Company, Large Network HR

Very specific HR scope focused on project organisation(e.g. talent scouting/selection, pay, health & safety)

Outsourced agents, brokers, specialist providers contract staff organisations handle the HR for their talent

as part of their brand and competitive strategy

Mutual employment obligations spelled out in projectcontracts or implicit in industry standards or assumed from past working experience

Project Managers reputation depends on his/her people

skills and hence there is a reluctance to delegate to HRspecialists


13/19

Small Company, Large Network HR (cont.)

Selection is via networks, personal references,reputation

Performance management is via peer pressure andindustry/ professional standards

Rewards are contractual or entrepreneurial (equitybased)

Development is via doing leading edge projects

Innovation is via brokers, deal makers, agents, sponsors

Individuals rely on professional associations, guilds,

managers/agents


14/19

FUTURE OF ORGANISATIONS: Scenario 2

VIRTUAL COUNTRIES Keiretsu-like alliances with operating companies in every country

Minimal national allegiance - primary loyalty is to the corporation

Traditional hierarchy or decentralised divisional structure

Company is the focus for individual identity

Company meets employees needs from cradle to grave Employees own the firm AND have right to elect the Board and

management

Open book accounting informs management elections

Specialist organisational designers travel through firm brokering

partnerships and fostering cross boundary communication

Role of governments, industry unions is significantly reduced

Examples: Asea Brown Boveri; GE; Johnson & Johnson


15/19

Virtual Country HR

HR almost replaces social welfare, education systemsand provides financial management and estate planningservices, etc

Corporate (strategic) HR sets standards and monitors the corporate culture

helps Marketing build the corporate brand

Divisional (operational) HR total care of employees so they are free to focus on

performance

Actively involved in local communities to reinforce thecompany culture and image


16/19

Virtual Country HR (cont.)

Selection emphasises fit with corporate values

Performance management focuses on results achievedthe XYZ way and on being a company ambassador in

all areas of life

Reward is via promotion, enhanced status, rights,benefits - and pay

Development is via corporate colleges and universities inpartnership with the worlds best educational institutions

Innovation is through internal R&D and improvementprograms with heavy emphasis on protecting corporateintellectual property


17/19

CHANGING HR ROLES: Some Generalisations

PAST

HR ROLE WAS CLEARLY

DIFFERENTIATED

mechanistic(Personnel Admin)

ritualistic, legalistic (IR)

CEOs eyes and ears

with the troops

distinct professionalcareer paths

HR is HRs responsibility

FUTURE

PEOPLE/LEADERSHIP ROLE ISDISTRIBUTED AND DIFFUSE

knowledge management

relationship management;teamwork

legal compliance

change management

no distinct HR profession -new hybrid roles emerge

People/Leadership is

everyones responsibility


18/19

NEW CRITERIA FOR RATING HR?

Profit generated per employee (compared to industry benchmark)

Salary/wages costs compared to industry median (reflectingvalue of corporate reputation/intangibles in labour market)

Number of talented candidates applying for advertised (andunadvertised) vacancies

Time taken to satisfy customer orders, inquiries, complaints(compared to agreed service standards)

Incidence of customer complaints caused by employee behaviour Cost of re-work

Cost/risk due to time lost through injuries, absences, disputes

Rate/cost of unplanned turnover among good performers

Percentage of customers citing service quality or competent,

caring staff as a competitive edge for the company Net cost of generating organisational improvements

Percentage of revenue/profits coming from initiatives taken inlast 3 years

Share price premium compared to industry peers


19/19

AN INTEGRATING STORY?

OUTCOMES

(Stakeholders)

Shareholder/Investor

Customer

Contributor- employee- other

Community

FUNCTIONS

(Management)

FinanceInvestor Relations

Sales & Marketing

OperationsR&D

Contributor RelationsContracts (Legal)Supply

PRCommunity Relations

ARCHITECTURE

(Leadership)

VISION & MISSION

CORPORATE

STRATEGYCompetitive strategy

Development strategyLeadership style

Culture/Values/Ethics

ORGANISATIONALDESIGNStructure

TechnologyPlace

futureofhr2 [edocfind.com]

Documents