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HR Role In Business
Agenda
 Traditional HR Vs Modern HR
 Four Roles of HR in Business
 Specific HR focus
 HR Value proposition
 Strategic GR Planning
 Key Success factors
 Trends in HR
 HR Challenges & Concerns
Traditional Personal
Management
The Paradigm Shift
Strategic Partner Change Agent
Employee ChampionAdministrative Expert
The Role of HR in Business
Benchmark against successful companies
Making sure that the workforce is
energized and mobilized (compensation,
appraisal system)
Image
Strategic Partner
By creating a more efficient organization
By creating value (cost management)
To be sure that the company has the right people in the right place in the right time
(training and recruitment) according to the strategy
Provide the communication tools
to explain vision and strategies
Promote internal mobility to get
new ways of thinking
Impact the transformation of the
organization on the staff (morale,
motivation,..), culture, structure,..
Support the design and implementation
of cross-functional projects
Design and implement training on
management issues
Change Agent
Administrative Expert
Employee Champion
Specific Focus
• Building Human Capital centric organization.
• Talent Management .
• Managing compensation cost.
• Financial impact of HR initiatives .
• Building HR capabilities in the organization.
• Pressure to restructure work.
• Developing customer focused leaders.
HR Value
Proposition
Knowing External
Business Realities
(technology, economics,
globalization, demographics)
Serving External &
Internal stakeholders
(customers, investors,
managers and employees
Building HR resources
(Hr strategy and organization)
Ensuring HR professionalism
(HR Role, competencies
and development)
Crafting HR Practices
(people, performance,
information and work)
HR Value
Proposition
The HR Value Proposition
Organizational
Strategy
Business
Strategy
Human
Resources
Strategy
Organizational & HR
Effectiveness
Links to HR
Strategy
• Recruitment
• Training & Development
• Talent Management
• Performance Management
• Compensation & Benefits
• HR Planning
• Succession Planning
• Values & Culture
• Leadership
• Organization/work design
• Accountability
• Performance Measurement
• Communication
Enablers: Roles of MD, Board of Directors, Individuals, Human Resources
Strategic HR
Planning
Key Success factors in HR
Critical factors in organization for Achievement of Goals
Shared Leadership
• Political, administrative and bargaining
unit leadership that supports the vision,
strategies and values
• Demonstrated by behaviors and
accountability
Clear Roles, Responsibilities and Accountabilities
• Effective work, job design and delegation of authority
• Line managers and supervisors held accountable for effective human resource
performance and well-being
• Employees are aware of corporate and departmental direction and how their
performance directly affects achieving goals and objectives
• Leaders and employees held accountable and recognized not just for performance
and results but also for demonstrating the corporate values
Key Success factors
Clearly Articulated Human Resource Policies
• Current policies that are meaningful,
communicated and recognize the need
for departmental flexibility
• Consistent application of those practices
requiring a corporate approach
Collaborative JCC/Management
Partnerships
• Joint initiatives, agreements and collaborative
problem-solving that reflect the
HR vision and values
A Proactive Approach
to Human Resource Planning
• Researching demographics, effective
service delivery, internal and external best
practices and workforce trends
Key Success factors
A Positive, Respectful, Safe and Healthy Work Environment
• Conflict is managed and differences are respected
• An environment that supports the physical, psychological and social well-being of
employees
Access to Enabling Technologies and Tools
• Employees have access to tools, resources,
training, etc. to allow them to deliver
quality service
Shared Employer/Employee Commitment for Career and Self-Development
• Employee commitment to managing
his/her own continuous learning and growth
• The Company provides opportunities and
information to support continuous
learning and growth
• Core competencies are identified and
training provided around specific
jobs/occupations
Key Success factors
Value and Recognize Employee Contribution
• Encourage participation of employees in decisions and issues in the workplace
• Receptiveness to varying ideas and celebrating successes
• Create an environment that capitalizes on employee differences allowing all
participants to reach their full potential
• Employees are recognized as the Company’s most valuable resource
Open Communication
and Knowledge Growth
• Sharing knowledge on trends, best practices,
etc. throughout the organization
• Information sharing across all levels
These factors are critical to the successful
achievement of organizational goals.
Key Success factors
• Technological/Finance/Social Context
• CEO Issues
• Demographics
• Stakeholders
HR Trends
Technological/Finance & Social Cycles
Pressing CEO Needs
• Organization agility to change
• Innovative employees and mindset
• Short term results
• Globalization – reality and backlash
• Talent Pool
• M&A
• Global energy; health; and security issues
Productivity Growth above Historical Levels – Can it
Last?
Average Annual Productivity Growth – 1950’s to Present
0
1
2
3
4
1950-59
1960-69
1970-79
1980-89
1990-99
2000-03
Productivity
Growth
Percent
Source: Employment Policy
Foundation
• Demographics
Labor Shortage is Looming
130
150
170
190
210
2003
2007
2011
2015
2019
2023
2027
2031
Labor
Force
Needed
Labor
Force
Available
Source: EPF Analysis of BLS Data
CompoundGrowthinWorkforce
0
0.5
1
1.5
2
2.5
3
1950s
1960s
1970s
1980s
1990s
2000s
2010s
Growth
Skill Shortage Challenge
New Jobs will require more education
0
10
20
30
40
50
60
70
80
High
School
Only
Non-
Degree
Training
Any
College
Degree
Total Employment
2002
Projected
Employment 2012
Source: Employment Policy Foundation
Millions
Challenges
 Managing Four Generations at Work
 Identifying and Retaining Critical Knowledge
 Retaining Talent – all generations, all levels
“HOW TO MAKE THE COMPANY WORK?”
BOD
ALIGNMENT &
LEADERSHIP
IDEATION
C SUITE
PEOPLE
TECHNOLOGYPROCESS
Governance /
Strategy
Management
Systems &
Operations
Controls
Capabilities /
Alliances
IntegratedSystem
Top HR Concerns
Top 5 issues from HRPA 2006 Survey:
Attracting, developing and retaining talent
Health care costs, strategies, and benefit
designs
Leadership development
Compensation strategies for motivating
and rewarding executive talent
Managing organizational change

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Hr role in business

  • 1. HR Role In Business
  • 2. Agenda  Traditional HR Vs Modern HR  Four Roles of HR in Business  Specific HR focus  HR Value proposition  Strategic GR Planning  Key Success factors  Trends in HR  HR Challenges & Concerns
  • 4. Strategic Partner Change Agent Employee ChampionAdministrative Expert The Role of HR in Business
  • 5. Benchmark against successful companies Making sure that the workforce is energized and mobilized (compensation, appraisal system) Image Strategic Partner By creating a more efficient organization By creating value (cost management) To be sure that the company has the right people in the right place in the right time (training and recruitment) according to the strategy
  • 6. Provide the communication tools to explain vision and strategies Promote internal mobility to get new ways of thinking Impact the transformation of the organization on the staff (morale, motivation,..), culture, structure,.. Support the design and implementation of cross-functional projects Design and implement training on management issues Change Agent
  • 9. Specific Focus • Building Human Capital centric organization. • Talent Management . • Managing compensation cost. • Financial impact of HR initiatives . • Building HR capabilities in the organization. • Pressure to restructure work. • Developing customer focused leaders.
  • 11. Knowing External Business Realities (technology, economics, globalization, demographics) Serving External & Internal stakeholders (customers, investors, managers and employees Building HR resources (Hr strategy and organization) Ensuring HR professionalism (HR Role, competencies and development) Crafting HR Practices (people, performance, information and work) HR Value Proposition The HR Value Proposition
  • 12. Organizational Strategy Business Strategy Human Resources Strategy Organizational & HR Effectiveness Links to HR Strategy • Recruitment • Training & Development • Talent Management • Performance Management • Compensation & Benefits • HR Planning • Succession Planning • Values & Culture • Leadership • Organization/work design • Accountability • Performance Measurement • Communication Enablers: Roles of MD, Board of Directors, Individuals, Human Resources Strategic HR Planning
  • 13. Key Success factors in HR Critical factors in organization for Achievement of Goals
  • 14. Shared Leadership • Political, administrative and bargaining unit leadership that supports the vision, strategies and values • Demonstrated by behaviors and accountability Clear Roles, Responsibilities and Accountabilities • Effective work, job design and delegation of authority • Line managers and supervisors held accountable for effective human resource performance and well-being • Employees are aware of corporate and departmental direction and how their performance directly affects achieving goals and objectives • Leaders and employees held accountable and recognized not just for performance and results but also for demonstrating the corporate values Key Success factors
  • 15. Clearly Articulated Human Resource Policies • Current policies that are meaningful, communicated and recognize the need for departmental flexibility • Consistent application of those practices requiring a corporate approach Collaborative JCC/Management Partnerships • Joint initiatives, agreements and collaborative problem-solving that reflect the HR vision and values A Proactive Approach to Human Resource Planning • Researching demographics, effective service delivery, internal and external best practices and workforce trends Key Success factors
  • 16. A Positive, Respectful, Safe and Healthy Work Environment • Conflict is managed and differences are respected • An environment that supports the physical, psychological and social well-being of employees Access to Enabling Technologies and Tools • Employees have access to tools, resources, training, etc. to allow them to deliver quality service Shared Employer/Employee Commitment for Career and Self-Development • Employee commitment to managing his/her own continuous learning and growth • The Company provides opportunities and information to support continuous learning and growth • Core competencies are identified and training provided around specific jobs/occupations Key Success factors
  • 17. Value and Recognize Employee Contribution • Encourage participation of employees in decisions and issues in the workplace • Receptiveness to varying ideas and celebrating successes • Create an environment that capitalizes on employee differences allowing all participants to reach their full potential • Employees are recognized as the Company’s most valuable resource Open Communication and Knowledge Growth • Sharing knowledge on trends, best practices, etc. throughout the organization • Information sharing across all levels These factors are critical to the successful achievement of organizational goals. Key Success factors
  • 18. • Technological/Finance/Social Context • CEO Issues • Demographics • Stakeholders HR Trends
  • 20. Pressing CEO Needs • Organization agility to change • Innovative employees and mindset • Short term results • Globalization – reality and backlash • Talent Pool • M&A • Global energy; health; and security issues
  • 21. Productivity Growth above Historical Levels – Can it Last? Average Annual Productivity Growth – 1950’s to Present 0 1 2 3 4 1950-59 1960-69 1970-79 1980-89 1990-99 2000-03 Productivity Growth Percent Source: Employment Policy Foundation • Demographics
  • 22. Labor Shortage is Looming 130 150 170 190 210 2003 2007 2011 2015 2019 2023 2027 2031 Labor Force Needed Labor Force Available Source: EPF Analysis of BLS Data CompoundGrowthinWorkforce 0 0.5 1 1.5 2 2.5 3 1950s 1960s 1970s 1980s 1990s 2000s 2010s Growth
  • 23. Skill Shortage Challenge New Jobs will require more education 0 10 20 30 40 50 60 70 80 High School Only Non- Degree Training Any College Degree Total Employment 2002 Projected Employment 2012 Source: Employment Policy Foundation Millions
  • 24. Challenges  Managing Four Generations at Work  Identifying and Retaining Critical Knowledge  Retaining Talent – all generations, all levels
  • 25. “HOW TO MAKE THE COMPANY WORK?” BOD ALIGNMENT & LEADERSHIP IDEATION C SUITE PEOPLE TECHNOLOGYPROCESS Governance / Strategy Management Systems & Operations Controls Capabilities / Alliances IntegratedSystem
  • 26. Top HR Concerns Top 5 issues from HRPA 2006 Survey: Attracting, developing and retaining talent Health care costs, strategies, and benefit designs Leadership development Compensation strategies for motivating and rewarding executive talent Managing organizational change