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Paradigm shifts in HR roles
1. THOSE WHO BUILD GREAT COMPANIES
UNDERSTAND THAT THE ULTIMATE
THROTTLE ON GROWTH FOR ANY GREAT
COMPANY IS NOT MARKETS NOT
TECHNOLOGY OR COMPETITION OR
PRODUCTS. IT IS ONE THING ABOVE ALL
OTHERS: THE ABILITY TO GET AND KEEP
ENOUGH OF THE RIGHT PEOPLE
JIM COLLINS
3. PARADIGM SHIFTS IN
HR ROLES
HR ROLE CLEARLY
DIFFERENTIATED
MECHANISTIC
(PERSONNEL/ADMIN)
RITUALISTIC AND
LEGALISTIC(IR)
CEOs EYES AND EARS
WITH THE ‘TROOPS”
DISTINCT
PROFESSIONAL CAREER
PATHS
REACTIVE AND ADMIN
MINDSET
PEOPLE/LEADERSHIP
ROLE
DISTRIBUTED/DIFFUSED
KNOWLEDGE
MANAGEMENT
RELATIONSHIP
MANAGEMENT
TEAMWORK
NEW HYBRID ROLES
PROACTIVE AND
STRATEGIC MINDSET
PEOPLE/LEADERSHIP
EVERYONES
RESPONSIBILITY
4. STRATEGY
FORMULATION
INVOLVES--
UNDERSTANDING BUSINESS DIRECTION OF THE
COMPANY
UNDERSTANDING WHAT THE PRODUCT IS AND WHAT IT
IS CAPABLE OF DOING
UNDERSTANDING WHO THE CUSTOMERS ARE
HOW THE COMPANY IS COMPETITIVELY POSITIONED IN
THE MARKETPLACE
UNDERSTANDING THE BASIS OF COMPETITION
DEMANDING BUSINESS APPROACHES WHICH CAN BE
JUSTIFIED IN MONEY TERMS
EVALUATING EXPENSES AND IMPLEMENTING CHANGES
THAT MAKE THE ORGANIZATION LEAN AND FLEXIBLE.
7. NEW CRITERIA FOR RATING “HR”?
Profit generated per employee (compared to industry
benchmark)
Salary/wages costs compared to industry median
Number of talented candidates applying for advertised (and
unadvertised) vacancies
Time taken to satisfy customer orders, inquiries, complaints
(compared to agreed service standards)
Incidence of customer complaints caused by employee
behaviour
Cost of hire/re-hire
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
These reflect more than just the functional input of HR policies and practices but almost all significant business measures are likely to do that. The measures are much more likely to be relevant to CEOs and senior line executives than functionally oriented ones.