The document discusses the challenges facing HRM professionals. It outlines 10 key challenges: 1) managing talent, 2) managing the workplace, 3) leadership development, 4) managing change, 5) communication focus, 6) high performance work culture, 7) enterprise software, 8) understanding business factors, 9) understanding HR policies and practices, and 10) creating a learning organization. The document emphasizes the importance of aligning HR strategy with business strategy, developing talent and leaders, engaging employees, and adapting to macro-level changes in order to help organizations achieve competitive advantage.
3. MACRO LEVEL CHANGES
Licensing era ended.
* Lowered Import Duty.
* Deregulating Export Controls.
* Disinvestment of state controlled industry.
Advent of Mobile Telephony in 1995.
* 742 million in 2010 – Mobile
* 12,000 Telephone Booths in 1980.
* 4.5 million in 2000 – Mobiles subscribe Base.
Y2Y Bug – IT Revolution
* Triggered Outsourcing.
* Lead to employment generation.
* Growth of software firms to National Multi Mega Corporation.
4. MACRO LEVEL CHANGES
Boom-bust-Recession, Downtown etc. increased pressure.
* Home grown firms – Infosys, Wipro, HCL TCS..
* $ 2 billion to $ 70 billion in 2010.
* Indian Companies become global.
Coming of INTERNET – Global Web.
Market Driven economy – Globalisation.
Economic Growth : GDP from 3.5% in 2003 to 9% in 2008.
Service Industry – Expansion.
Social Media
Competition Threats.
5. WHY HRM HAS OCCUPIED CENTER
STAGE?
Ageing workforce – Demographic challenge
- 80 million – Baby Boomer (Age 41 – 60).
- 46 million Gen X’ers (Age 26-41 years)
- 30 million Gen. Y (Mill ) (Age 7 – 25 yrs.)
Global Companies – Diversity lifestyle.
Cultural issues
Complex Business environment
Integration.
Leadership Squeeze / crunch
Work Life Balance – Emotional Issue
Physical Health
Recreational
Customer Orientation.
Measure ability of tangibles / Intangibles of HR.
Sustainable Business Advantage – Create.
Cope up with internecine.
Competition – Domestic / Overseas.
6. HARD FACT ABOUT HR PROFESSIONALS
“One reason why HR has not become central to business as it
should be is that HR often lacks knowledge of theory. Theory
explains why events happen. Theory provides explanation
based on logic for now events relate to each other. Theory
weaves individual events into predictable and generalized
patterns. To make HR practices more than isolated
acts, managers and HR professionals must master the theory
behind HR work; they need to be able to explain conceptually
how and why HR practices lead to their outcomes.” Prof. CK
Prahlad: Professor of Strategy
Learning without exercise is poison, a meal without appetite is
poison, living in society of a poor man is poison and for an old
husband, a young wife is poison- Chanakya
7. INTANGIBLES OF HRM
HR is expected to promote intangibles such as :
Talent
Speed of execution
Learning
Accountability
Collaboration
Leadership Brand of Organization
Strong Results
Strong Behaviors.
Culture – Workplace.
Knowledge Management
8. SOFT STRATEGIC HRM PHILOSPHY
Empowerment
Employee Involvement
Communication
Learning Organization
QWL, Welfare, Justice.
Respect for individuality
Pride
Camaraderie.
Diversity Management
9. HARD STRATEGIC HRM PHILOSPHY
HR Policies aligned with Govt. Regulation.
Contractualisation
Flexibility.
Performance Management.
ROI
Unionism – Employee Relations.
Litigation
10. ROLE OF HR- VIEW OF JACK WELCH, EX-
CEO OF GE
Without doubt, the head of HR should be second
most important person in any organization; from the
point of view of CEO, the HR Director should be at
least equal to the CFO.
HR too often gets relegated or pushed into benefits
trap ----- and gets saddled with health and
happiness activities ---- HR should be elevated to a
position of power and primary role in the
organization.
(Market capitalization $133 – 1981 to $ 500 Billion in 2000)
11. UNDERSTANDING HR LINKAGES
Understanding strategy and vision.
Understanding Business goals / objectives.
HR philosophy-Connected to strategy .
HR strategy – Unique, Consistent and inimitable set of
tangible & intangible human assets. “Blueprint” of HR
policy to cater to Business for next, 5, 10 or 15 years.
Strategic HR – Business Partner.
Strategic HR – Dashboard / Parameters to measure.
12. BUSINESS STRATEGY-HR LINKAGES
Strategic HRM
HR Dash HR Policies &
board Practices
Business
Strategy
HR
HR
Competencies
Professionals
and Behavior
13. NEW HRM CHALLENGES
1) Managing Talent :-
Key Questions being raised are :-
Successful in attracting, developing and Retaining
Key talent or HPW.
Take stock of the TM Processes.
Competency Management.
Performance Management
Succession Planning
Leadership Development
Systems Integration
New TM system :
Planning – Acquiring – Developing – Managing – Retaining.
14.
15.
16. NEW HRM CHALLENGES
Managing Talent
RISK Analysis of Talent Pool
Vacancy Risk-Safeguarding key business capability
Readiness Risk- Leadership Development
Transition Risk- Loss of Key Talent
Portfolio Risk- Commitment to Development & Performance
Standard
Talent Dashboard
Maintain Talent fencing “Signals” or “Cues”
Watch wobbling of Key Talent
Reprimand Data
Employee participation Level
Employee response to Communication
Concern for Compensation & Rewards
17. HR CHALLENGES
2. Manage Workplace to gain People Advantage
Key questions to be asked:
Employees Value Proposition
Value- Cost & Experience
Rareness High Performance Standards
R&D
Empowerment
Individuality- My Space
Freedom- Fun n Joy
Challenging assignment
Exposure
Work Life Balance
Learning & Development
Organized in Teams/ Structures
18. GOOGLE WORKPLACE
Features:
Bright, Enthusiastic
Speed, Agility
Exiting /Challenging Performance
Own space -20% for Self Development
Learning
Work Life Balance
Ambitious Ideas, Entrepreneurial
Passionate and High Energy Level, Committed
Intellectual and Emotional Involvement
19. ENGAGED EMPLOYEE
Say- Positive
Things
Stay- Likelihood
Strive – Extra
of continuing
Effort for
(Watch for
Business
Boomerang
Success
Talent)
Employee
Engagement
20. FACTORS INFLUENCING MOTIVATION AT WORK
80%- Treated with Respect
69%- Base Pay
60%- Benefits
59%- Long Term Career Preference
51% - Variable Pay
Study done by Mercer
Refer Gallup Q12 to gauge Engagement
21. GREAT WORKPLACES HAVE GREAT EMPLOYEES
Fire in the Belly
Ready to go the Extra Mile
Less prone to Stress and Burnout
Physically, psychologically and socially well
balanced
Exhibit Organizational Citizen ship Behavior(OCB)-
Like in a Football or Rugby Team
Better perception of Justice or unbiasness
22. HR CHALLENGES
3. Leadership Development/Building
Leaders transform the Vision of the Organization into Profitability,
Productivity and increased brand value
Architect of growth
Role Model for Team
Develop People
Enthuses team members to tackle problems, hitches, hiccups, odds, adversities
Build exciting Work place
Empower People
Nurture and Care
Coaches People
Imbibes a sense of Purpose
Affiliation, Association and Understanding
Good Leader results in increase in profits by 14 %- Nitin Nohari, Dean of HBS
23. HR CHALLENGES
4. Managing “Change”
Necessitated due to the following factors:
New Markets due to Globalisation
New Culture
Diverse Habits/Traditions/Religion
L lifestyles
Byelaws/Rules/Regulations
Merger & Acquisitions
Demographic Challenges
Ageing Population in Developed Countries
Loss of Critical Pool Talent
Experience and Knowledge Base
Create Talent Pool analysis –Succession Planning
Increase Health Management
More Learning & Development opportunities
Sabbatical/ Breaks
Flexible Working
24. MANAGE CHANGE –GEN X/Y
Mavericks Lifestyle
Monomaniacs
Expanded Horizon- Ambition
Sifty / Squirrel Like Attention span
Media/Tech Savvy- Twitter, Gtalk, Facebook on the move
Life after Work merges with Life@workplace
Increased Network/connectivity
Different priorities in Life
Ready to relocate
Survive in Economic uncertainty
Competitive and updated
Role of HR to manage Gen X or Y workforce is critical.
25. HR CHALLENGES
5. Communication Focus
No empowerment or Engagement is possible without effective communication.
Central to all implementation of all Strategy
Communicating Vision, Mission, Goal to permeate down below
How to do so:
Inhouse Newsletter
Team Working
Management by Wandering Around
Brainstorming/TQM/QC
Surveys/Studies
Reunion/Webnairs
Get Togethers/Outing
Meeting People
Personal Connect
Involve Family- Birthday/Anniversary
Welcome Letter
Interact With Collectives – Union/Association/Panchyat
Dispel small Niggles/Grievances in time
Feedback Mechanism
26. 6. High Performance Work Culture
Brand Value as an Employer- Google example
Feel good factor
Ease of Performing
Approachability to Top Management
Avoid Glass Ceiling/Berlin Wall scenario
Maintain secrecy Clause – Client/Customer
High standards of Integrity
High Ethical performance standards, Values, Beliefs
Monitor Trust Deficit, Loyalty Index
Respect for Peoples opinion, ideas, background, sex,
custom etc.
27. 7.Enterprsie Based Software
HRIS, SAP, customized Software Employee Data
Management, Payroll
Online/Electronically activated PMS
Outsourcing Administrative Functions
Usage of Cloud Computing and Internet
Manage Insurance and Investment Savings Tips
28. 8. Understand External and Internal Business Factors
Employee/ Industrial Relations
Political Activisim
Environment/Pollution/Safety
Monitor Market Fluctuations
Government Policies
Judicial Pronouncements
Socio Economic Factors
29. 9. Understanding of HR Policies, Procedures and
Practices- Localised
Right People in Right Job
Managing Social System
Follow Through Habit
Succession Planning
Reviews of Processes
31. QUALITIES OF HR PROFESSIONAL IN
INDIAN like quantities – Elephant
Pachyderm
CONTEXT
Core competencies
Knowledge of HR Matrix
Leadership Matrix
Communication skills
Ability to learn
Know the work process
Capability to predict
Interactive, Practical, Proactive, Positive
Non Bureaucratic
Rely on acumen, keenness to learn
Alert, informative, updated
Committed.
High Ethical standard / Moral ground
Negotiating skill
Read between the lines
Go under the skin – Banana.
Innovative, Creative Bent of Kind.
Dash Board, Matrix Maintain
Cost Benefit Analysis of HR procedures
Affiliation, Approachable, Affinity
Coach Mentality
32. WHAT EMPLOYERS LOOK FOR HR?
Good Track record
Trustworthy
Confidence gaining
High Integrity
Appropriate Risk
Insight of Business environment
Visionary
Supports relationship
Creative
Shares knowledge across organizational boundaries
Enthuses employees
Effective verbal communication
Facilitates the process of restructuring
Attracts employees
Disseminates Positive vibes and clear and convincing information
33. EMPLOYERS LOOK FOR HR
HR deliverables are not STATIC, evolves continually
Gauge Employee needs
Inculcate Culture of Reliability, Durability, Effectiveness,
Efficiency and Empathy
Speed, Courtesy, Accuracy to follow “Employee First”
concept
Methodology and design to deliver
Develop points of leverage – Desirability and Delivery
mechanism
Understanding and implementation of Labour Laws
Liaison and Manage External Factors- Lab. Machinery
and District Authorities
Degree of Negotiating Skill – Need to know the (BAFNA)
Best Alternative to a Negotiated Agreement
34. TASKS
Prepare a JD
HR Strategy Development Process :
1. Know your company.
2. Prioritize Trends.
3. Competitive Advantage of the Company.
4. Culture & Technical capabilities.
5. Noises - Media
Union
Political
Socio Economic
6. HR Practices.