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Statistics of HR Transformation
50% of organizations are in the middle of transforming their HR functions; 12% completed their HR transformations in the past year;
HR Transformation
Process of Recreating the HR function so as to enhance HR contribution to the business
It involves a shift from the internal operations (transactional, inward) activities to a more market perspective related performance. Over the years role has been evolving, but within its HR (Personnel) box. Current transformation is breaking outside the box
Now HR transformation deals with issues of Organisational Renewal, Change Management, Business Success, Business intellegence, Culture, Behavioral Change.
Transformation Wave
5-10 years ago: focused on improving technology and service delivery, technology shift gives new aspects Competition, Time to market, Intranet, Restructuring/Rightsizing, Outsourcing This was the role of HR as a Consultant. Role did not transform the HR function into a business partner Now HR is being called up to deliver
Transformation Wave
HR Business Partnering model often started off as a Cost Saving initiative, responding to a Business Directive. This was the Driving force of the model in the 90s. Led to the introduction of IT Driven HR Services, Selfservice forms processes etc.
What started as a Cost Reduction/Competition Program ended up as a Revitalisation of the whole HR Activity
Now HR is the driving the vision-strategy targets Closer follow up related to market changes
Changing Role of HR
HR ROLE/CONTRIBUTION
BUSINESS PARTNER
CONSULTANT
TRANSACTIONAL
LOW VALUE
HIGH VALUE
Changing Role of HR
TRANSACTIONAL CONSULTANT BUSINESS PARTNER
Integrate Strategy
Outward
Proactive
Maintaining and improving companys image and being an attractive employer Exemplify Be involved at the sharp end of the business, (time to market etc)
The business environment (SWOT, competitor moves, market share, etc.) Understanding customers, customer profiles (segments) and their needs. Why ?
HR as Capacity builder
Participate in formulation of list of organisational and individual competencies linked to the corporate goals or strategies and support systems Develop access to information and has key role in information dissemination (analyze shifts in market and draw conclusions on HR need Identifying, nurturing, developing and untapping human talent.
HR as Knowledge Facilitator
This assumes HR is involved in the formulation of the Organisations Vision, Mission and Business Strategy; Must be part of the Management to advise on what is possible given the stock of talent and capacities available in the oganisation; Propose Strategies that best attracts and retains the talent that will deliver on the Business Objectives.
HR as Relationship builder
Both internal and external customers follow market demand Supply Chain Management ,in telecoms this is important for maintenance of brand image and brand integrity Branding ? is a powerful tool for promoting Culture. A growing school of thought is that Branding is as much an HR responsibility as it is a PR function because of its power to attract and retain employees. Managing diversity
CONCLUSION
As Human Capital Related Issues Continue to Challenge on Organizations overall Strategy, The Human Resources manager must become a familiar face in the Management Team and a potent force in the boardroom. Findings however reveal a troubling gulf between the needs of the business and the ability of HR to respond. This is forcing companies to rethink their approach to the recruitment, training and development of HR