The Changing Role and Functions of HR

Zulkifli Mohd
19 October
2011
The Changing RoleThe Changing Role
& Functions of& Functions of HRHR
• HR as the em ployee ad vocate
• HR as the consultative business partner
• HR as the agent of C hange
HR Republic Summit 2011: Trends & Challenges UnfoldHR Republic Summit 2011: Trends & Challenges Unfold

CONTENTSCONTENTS
• The Evolution of HRThe Evolution of HR
• The Changing Role of HRThe Changing Role of HR
• HR as Strategic PartnerHR as Strategic Partner
• HR as Change AgentHR as Change Agent
• HR as Employee AdvocateHR as Employee Advocate

The Evolution ofThe Evolution of HRHR

• Protection for fem ale
em ployee s & child ren
• C are for injured &
sick em ploye es
• C reated in respond to
harshness in
ind ustrialcond itions
• Ad m inistration of
abse nce, training &
recruitm ent
• S tate /Trad e U nion
partnerships
• Hand led queries on
com pensation
m atters
• Em ployee d ata
• Welfare &
em ploym ent m gt
we re integrated →
Pe rsonnelMgt
• O utput could be
influenced by
em ploym ent policie s
• S tructured
com pensation policy
• C olle ctive bargaining
& IR
• S pecialized functions
(70’s)
• Ad m inistrator &
technicalexpert
• Focuse d on
im proving efficie ncy
& effectiveness
• C om pensation
enginee ring as key to
prod uctivity (incentive
plans, d eferre d
com p, options)
• S trate gic Business
Partner
• C hange Age nt
• Em ployee C ham pion
• C O E
• S hare service
End of 18th
Century:
Welfare
Officers
The World
Wars:
Labour/
Employment
Manager
2001 till now:
Strategic HR
1945 – 1979:
Personnel Mgt
1980 – 2000:
Human
Resource /
Compliance Officer
Origins of HR
A Brief History of HR

1890 - 1913 1914- 1939 1945 - 1979 1980- 1990 2000 till now
Welfare
Officer
Labor
Manager
Personnel
Management
Human
Resource
Management
Strategic HR
2nd
IndustrialR evolution World Wars G lobalization
• Ad m inistrative
focus
• C om pliance
• Trad itionalm ind
set
• Lim ited scope of
activity
• S pecialize d
functions
• Ad m inistrative
focus with
enlarged scope of
activities
• S upport function
• Less reactive &
m ore proactive
• Busine ss Partner
• Focus on value-
ad d ed activitie s
• Proactive
• Multid isciplinary
• Multi-faceted roles
The Evolution of HR
The HR JourneyValueImpact/ContributiontotheBusiness→
High

ValueImpact/ContributiontotheBusiness→
Compensation
Benefits
Safety &
Workers’
Compensation
Compliance
Labor/Union
Relations
Staffing
Training &
Development
Employee
Relations
Survey Action
Planning
continue to
evolve
S ource: Rich Vosburgh
Welfare /
Employee
Care
Employee
Welfare
Labor
Relations
Employee
Relations
Personnel
Admin
Human
Resource
Organizational
Effectiveness
High
Transactional
Work Transformational
Work
The Evolution of HR
The HR Journey: Nature of Work
Strategic
HR Planning
Organizational
Design
HR as
Business
Partner
Culture
& Image
Performance
Management
HRIS
COE
Shared
Svc
Centre

The Changing Role ofThe Changing Role of HRHR

HR is shifting from focusing on the
organization of the business to focusing on
the business of the organization
The Changing Role of HR

HR is more important than ever, people are
the only sustainable source of competitive
advantage.
Watson Wyatt S tud y
“You can take my factories, burn up my buildings, but give me my
people, and I’ll bring my business right back again.”
- Henry Ford -

Employers want HR to address strategic issues involving the
competitiveness and performance of the firm… More than the role
of protector and administrator.
What CEOs Really Want from HR
Reality Check

Requires HR toRequires HR to
change:change:
The businessThe business
environment:environment:
Requires companiesRequires companies
to focus on:to focus on:
GlobalizationGlobalization
EconomicEconomic
uncertaintiesuncertainties
TechnologyTechnology
innovationsinnovations
Profitability thru CostProfitability thru Cost
& Growth& Growth
IntensifiedIntensified
CompetitionCompetition
• Increasing value
• Organizational
capabilities → fast,
responsive, cost
effective
• Creating climate for
action
• Unique competitive
advantage
Business savvy
Align with strategy
Strong bench
strength
Change catalyst
Help biz leaders to
achieve objectives
What CEOs Really Want from HR
Reality Check

A survey of 500 HR directors across Europe,
the Middle East and Asia, found out that
only 15% of the activities carried out by HR
departments are related to "pure strategic
interventions".
Watson Wyatt S tud y
Reality Check

StrategicStrategic
15%15%
StrategicStrategic
60%60%
Transactional/
Operational
85% Transactional/
Operational
40%
HR needs to realign its service delivery model to addHR needs to realign its service delivery model to add
more strategic value to the organizationmore strategic value to the organization
The Shift in the Balance of HR Roles
% of available resources
Need to expand focus beyond its traditional & transactional role.

Four Roles for HR
• Administrative Expert
• Employee Champion
• Change Agent
• Strategic 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.

Strategic Partner
Aligning HR & Business Strategy
Active Role in setting strategic direction
Future/S trategic FocusFuture/S trategic Focus
D ay-To-D ay/O perationalFocusD ay-To-D ay/O perationalFocus
Change Agent
Managing Transformation &
Change
Effecting Transformation & Change
Administrative Expert
Managing The
Firm’s HR Infrastructure
Process Optimization & Efficiency
Employee Champion
Managing Employees’
Contribution
Motivated & Competent Personnel
P
E
O
P
L
E
P
R
O
C
E
S
S
E
S
The Roles of HR
David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

Strategic 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
Change 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
• 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
Employee Champion
• 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
P
E
O
P
L
E
P
R
O
C
E
S
S
E
S
The Roles of HR

Strategic Partner
decision-making
Change Agent
organization
effectiveness
business needs
Employee Champion
contribution
P
E
O
P
L
E
P
R
O
C
E
S
S
E
S
The Roles of HR
when NOT done well… create a lot ofwhen NOT done well… create a lot of
issuesissues

Strategic Partner
decision-making
Change Agent
organization
effectiveness
business needs
Employee Champion
contribution
P
E
O
P
L
E
P
R
O
C
E
S
S
E
S
The Roles of HR
when done well give the organizationwhen done well give the organization
a great strategic advantagea great strategic advantage

HRHR as Strategic Partneras Strategic Partner

• Participates in designing & defining organization’s strategies
• Contributes to management team’s strategic decision-making
• Focuses on aligning HR strategies & practices with business
strategy → translate business strategy into HR priorities
• Strategically manage people & infrastructure to support the
execution of strategies & the creation of value
 Strategically manages workforce development
HR as Strategic Partner
Deliverable/outcome: Strategy executionDeliverable/outcome: Strategy execution

S trategic Partner
C ore C om petencies
Core Competencies
Facilitate strategy development
for business teams by using
different techniques
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:HR as Strategic Partner should be able to:
Business Mastery
Personal Credibility
HR Mastery

Knowledge
Requirements
Becoming A Strategic Business 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.
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
business
matter?
future?
line?
Focus on business
objectives
that make a real
difference
Staying focused on
business
matter?
future?
line?
Focus on business
objectives
Provide organizational
capabilities as required
by the business
objectives:
People
Strategy
Culture
that make a real
difference
Staying focused on
business
matter?
future?
line?
Focus on business
objectives

Becoming a business partner sounds easyBecoming a business partner sounds easy
but in practice demands a shift in mindsetbut in practice demands a shift in mindset
and capabilityand capability

• Becoming a true "player" on strategic business issues → able
to challenge business leaders on their own ground
• Architect who can synthesize best practices e.g. Total
Reward, Talent Management, OD, etc into integrated solutions
and implement at speed
• Shifting from advising and consulting to challenging,
provoking, confronting business leaders
• Letting go of the past and engaging with the future
Mindset S hift

You are involved in discussions (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 solution then and there
Managers encourage you to tackle issues in their areas and express
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 present/past to future -
especially longer term future
The "why” of what you is doing is very clear - in terms of
organizational need (not "because we always do it/have done it)
You are moving towards Strategic Partnering When…

A significant number of any organization's business strategiesA significant number of any organization's business strategies
requires major changes in people-related issues; the HRrequires major changes in people-related issues; the HR
function and individual HR professionals develop and managefunction and individual HR professionals develop and manage
the key "people" systems needed to support organizationalthe key "people" systems needed to support organizational
change.change.
HR as Change AgentHR as Change Agent
Simple — though not easy

HR asHR as Change AgentAgent
A S trategic Role
Provoke the positive changes in the organization so it can stay competitive.
Build the organization’s capacity to embrace and capitalize on change.
HR as
Change
Agent
Champion/Champion/
Sponsor/Sponsor/
CatalystCatalyst
FacilitatorFacilitator DesignerDesigner
Demonstrator
Deliverable/outcome: Creating a renewed organizationDeliverable/outcome: Creating a renewed organization

Model the change
Communicate about the change
Engage others to participate
Help others to break from the past
Create a supporting environment
HR as Change Agent
The Roles

Before ChangeBefore Change
Preparing for ChangePreparing for Change
Serves as a catalyst for changeServes as a catalyst for change
Helps the organization build aHelps the organization build a
capacity for changecapacity for change
Plan change process withPlan change process with
sponsorssponsors
Ensure project team hasEnsure project team has
necessary skills, trainingnecessary skills, training
Coach sponsorCoach sponsor
Lead by example by doing itLead by example by doing it
first within the HR function.first within the HR function.
Facilitate the discussions aboutFacilitate the discussions about
the change and its content withthe change and its content with
all stakeholdersall stakeholders
Coach leaders through theCoach leaders through the
changechange
Acts as a coach/mentor toActs as a coach/mentor to
employees to help thememployees to help them
understand change as it affectsunderstand change as it affects
their livestheir lives
Emphasize ‘what is in it’ for theEmphasize ‘what is in it’ for the
individuals and addressindividuals and address
concernsconcerns
Strike a balance between theStrike a balance between the
business and employeesbusiness and employees
Communicate, communicate,Communicate, communicate,
communicatecommunicate
During ChangeDuring Change
Managing ChangeManaging Change
Help employees to break fromHelp employees to break from
the past & adapt a new culture.the past & adapt a new culture.
Sustain the momentumSustain the momentum
Internalisation of newInternalisation of new
behaviour / waybehaviour / way
Recognize & celebrate successRecognize & celebrate success
Build on the changeBuild on the change
Post-ChangePost-Change
Reinforcing ChangeReinforcing Change
The Change Agent Role

Increasing Commitment
Increasing Commitment
Awareness
of desired change
Understanding
of change direction
Translation
to the work setting
Commitment
to personal change
Internalisation
of new behaviour
“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
HR as Change Agent
Change Process
Build the organization’sBuild the organization’s
capacity to embracecapacity to embrace
and manage changeand manage change

•Set the
direction
•Create the
desire & will to
change
Phase
Content
Outcomes
UnfreezeUnfreeze MobiliseMobilise RealiseRealise ReinforceReinforce SustainSustain
•Make early
changes &
build
confidence
•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 Change Management Tool
The change has to be managed and the HR Professionals have to be skilledThe change has to be managed and the HR Professionals have to be skilled
in the change management process.in the change management process.

The Change 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 Change Agent
Competencies

““ Of course change management isn’t restricted exclusively to HR. LineOf course change management isn’t restricted exclusively to HR. Line
managers are the owners of change while HR can be seen as itsmanagers are the owners of change while HR can be seen as its
architect, facilitator and designer. Nobody ever said that only HRarchitect, facilitator and designer. Nobody ever said that only HR
manages change.”manages change.”
- Dave Ulrich- Dave Ulrich
The Change Agent

Partner
With
People &
Mgnt
DailyDaily
EmployeeEmployee
issuesissues
EmployeeEmployee
engagementengagement
EmployeeEmployee
developmentdevelopment
Conducive
climate &
culture
EmployeeEmployee
Commitment &Commitment &
CompetenceCompetence
HR as Employee Advocate
Managing Employee Contribution
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 ensure that line managers understand the
critical link between employee motivation and organisational
performance and how this link can be sustained → employees
need to be kept engaged and motivated.
HR as Employee 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.
Summary

The Changing Role and Functions of HR

The Changing Role and Functions of HR

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