Session 1: The Strategic HR

Partner

Objectives:

At the end of the course, the participants are expected to:

• Assess themselves vis-a-vis the role and competencies of an HR strategic partner

• Demonstrate understanding of basic concepts in strategic management

• Describe the functions and concepts in the business value chain

• Demonstrate understanding of basic business functions like Operations, Marketing, and Finance

• Describe how HR can align itself to business strategy and needs

Course Outline

I. The Strategic HR Partner

• Changing local and global business

environment

• The evolving role of HRM: Ulrich’s framework

• Role and competencies of HR Strategic Partner

Course Outline

II. Understanding Business

a. Business Strategy & Value Creation

b. Business Value Chain: Goals & Concepts1) Inbound logistics

2) Operations

3) Outbound logistics

4) Marketing & Sales

5) Service

6) Infrastructure

7) Technology and Information Management

8) Procurement

Course Outline

III. Process of Strategic HRM

• Aligning HR plans to business strategy

• HR needs and expectations of the line

• Fostering the HR-line partnership

• Consulting Skills

Grading

• Individual reports (30%)*

• Group reports** (20%)

• Individual participation (10%)

• Final paper and/or exam (40%)

* Individual reports: Critical Thinking (35%), Practical Application (35%), Knowledge

Base (20%), Communication Skills (10%)

**Group reports: Content (70%), presentation skills (30%)

Human Resource Management

• Refers to the policies, practices, and systems

that influence employees’ behavior, attitudes,

and performance

• Can be divided into strategic HR and

operational HR

Strategic Human Resource Management &

Development

Learning

&

Development

Performance

Management

HR Planning &

Staffing

Rewards

Management

Career

Development &

Planning

Leadership

Development

Employee

Relations

Employee

Well-Being

Vision;

Mission;

Values;

Organization’s

Strategies

Environment

Performance

HRLINE MANAGERS

O D

HRStrategies

HR Evolution

PERSONNEL HRM HCM

PHILOSOPHY

PERSPECTIVE

AGENDA

Cog in the machine

Cost

Efficient services Problem Solver

Asset

Investor

Capital

Value provider

Resource

Chart by Prof. Mila Perez, AGSB

Personnel Management

• Concept of people: cogs in a machine

• What workers were looking for: a job, sense of security, income

• Context: Industrial revolution in the 19th century. Sweatshops.

• Focus: Efficiency to reduce cost

• Birth of scientific management: – Frederick Taylor: best man for the job

– Henry Ford: assembly line;

time-and-motion studies

HR Management

• Concept of people: Assets, in the same way as

buildings and money are assets

• What people were looking for: Involvement,

participation, alignment between individual

and corporate objectives

• Focus: Problem-solver. Use the asset to make

production more efficient. Manipulate the

elements of the environment to make the

asset more productive

HR Management

• Kaizen: Using employee ingenuity to improve

product manufacture and development

• Human relations and industrial relations –

recognition of the rights of workers and the

necessary labor-management collaboration

• Management by Objectives (Peter Drucker) –

tied up rewards and advancement to the

achievement of agreed-upon business

objectives

Human Capital Management

• Competitive advantage resides in the creation

of new knowledge

• Value no longer resides in the engine; value

resides in the intangibles. Think Microsoft.

Human Capital Management

• Concept of people: Investors who put in their time,

skills and effort into the organization

• What people are looking for: Value for effort, skill,

time in terms of learning and advancement; a sense

of being able to make a difference

• Focus: Encouragement of discretionary involvement.

• Organization development – research done by Kurt

Lewin showed that organizations provide the

employment experience that determine the

employee’s level of involvement

Human Capital Management

• Strategic Management – endeavoring that personal

goals are tied up to business objectives so that

strategic aims are met. Employees are stakeholders

in the success of the business.

• Leadership – how leaders engage their employees is

linked to their motivation (i.e., increasing

investment)

• Corporate culture (Deal & Kennedy, 1982) –

development of an appropriate corporate culture is

necessary in order to achieve business goals

New Roles of the HR Function

(David Ulrich)

• Aligning HR strategies to business strategies

Strategic Partner

• Design of effective and efficient HR programs

Administrative Expert

• Managing the commitment and contributions of employees

Employee Advocate

• Transforming organizationsChange Agent

Strategic Contribution

Culture Management

Fast Change

Strategic Decision Making

Market Driven Connectivity

Personal Credibility

Achieving Results

Effective

Relationships

Communication

Skills

HR Delivery

Staffing

Training & Development

Organization Design

HR Measurement

Legal Compliance

Performance Management

(rewards included)

Business Knowledge

Knowledge of the Value

Chain

Knowledge of the Firm’s

Value Proposition

Labor Knowledge

HR Technology

Hardware: HRIS, system capabilities

Software: Data

analysis

Competency Model for HR Value Proposition

According to Ulrich:

• HR professionals need to develop these skills:

- Knowledge of the business

- Delivery of human resource processes

- Management of change processes

• Franco adds the following:

- Interpersonal competence (EQ)

- Personal clarity, including values and ethics

The Real Score: HR in PH

Edna Franco, “Facing the Future in HR”, The Way We Work, p. 122

Research Questions

• What are the current issues that have the

greatest impact on organizations?

• How have organizations responded to these

issues?

• How has HR responded to these issues?

• What roles are performed by HR in

organizations?

Participants

• N=69

• 63.1% - Corporate and 36.9% - Non-corporate

• Corporate:

– 26.8% BPO

– 9.8% Finance

– 39% Others

• Noncorporate:

– 86.4% Gov’t

– 9.1% Academe

Top Issues that Impact

Organizations2004 2011

Poor economy Recession/Economic Downturns

Increasing employee expectations and

demandsIncreasing employee expectations and demands

Changing work values Changing work values

Lack of peace and order in the country Poverty

Decreasing employee loyalty Skilled workforce leaving for abroad

Poverty Climate Change/Environmental Concerns

Increasing Globalization Increased mergers and acquisitions

Skilled workforce leaving for abroad Increasing Globalization

Increase IT use Decreasing employee loyalty

Terrorism

Terrorism; Lack of peace and order in the country;

Increased use of information and communication

technology

Currently

Doing

2004

Currently

Doing

2011

w/in next

5 years

Focusing on Customer Quality 72% Focusing on Customer Quality 85% 16%

Improving Organizational

Efficiency and Productivity66%

Improving Organizational Efficiency

and Productivity 81% 13%

Capacity Building 62%Capability Building

77% 15%

Decreasing Operational Costs 51%

Others

-Brand Management

- Environmental Awareness

Campaigns

73% 20%

Motivating and Rewarding

Employees51% Networking and Alliance Building 67% 12%

Networking and Alliance Building 50%Focusing on Employee Relations

and Well-being62% 30%

Motivating and Rewarding

Employees60% 20%

Decreasing Operational Costs 50% 9%

Organizational Responses to Issues

HR Responses to IssuesCurrently

Doing

2004

Currently

Doing

2011

w/in next

5 years

Facilitating change 72% Facilitating change 84% 12%

Developing an HR Information Systems (HRIS)

62% Developing new HR competencies 83% 15%

Developing new HR competencies

60%Developing an HR Information

Systems (HRIS)71% 25%

Being a business partner 54% Being a business partner 63% 17%

Outsourcing of: Employee training

46% Web-based training/E-learning 61% 26%

Deceasing HR budget 34% Outsourcing of: Employee training 61% 19%

Decentralizing HR to line managers

33%Outsourcing of: Management

development55% 10%

Management development 33% Developing shared HR services 52% 25%

Self-service administration of employee

records/benefits31% Decreasing HR budget 41% 10%

Currently

Doing

2011

w/in next 5

years

Redefining role of HR as consultant 39% 28%

Self-service administration of employee records/benefits

38% 38%

Decentralizing HR to operations 38% 19%

Decentralizing HR to line managers 35% 22%

Outsourcing of: Employee counseling 33% 19%

Outsourcing of: Pre-employment testing

31% 16%

HR Responses to Issues

HR Roles

HR Roles by Organization

Case: Dell

• What are the major people issues that exist as

Michael Dell retakes the reins at Dell?

• How would HR help in addressing the issues

that Dell faces?

Role of HR and Line

How HR Can Become

Relevant

Build HR competencies not

only in HR, but also in the line

Deliver the basics flawlessly

and free up time for strategic

concerns

Research and measure and

make changes accordingly

Changes Line Management

Must Make

Show that the “soft stuff”

matters

Hold HR accountable for

quantifiable deliverables

Invest in innovative HR

practices

Upgrade HR professionals

Point to Ponder

• Interview any company’s HR manager and one

other line manager on the state of their

company’s HR practices. Evaluate according

to Ulrich/CORD template and make

suggestions.