The Changing Role of HR

Zulkifli Mohd

19 October 2011

The Changing Role The Changing Role & Functions of & Functions of HRHR

• H R as the e m ploye e ad vocate

• H R as the consultative bus ine ss partne r

• H R as the age nt of C hange

HR Republic S ummit 2011: Trends & Challenges UnfoldHR Republic S ummit 2011: Trends & Challenges Unfold

CONTENTSCONTENTS

• The Evolution of HR The Evolution of HR

• The Changing Role of HRThe Changing Role of HR

• HR as S trategic PartnerHR as S trategic Partner

• HR as Change AgentHR as Change Agent

• HR as Employee AdvocateHR as Employee Advocate

The Evolution of The Evolution of HRHR

• Prote ction for fe m ale

e m ploye e s & ch ild re n

• C are for injure d &

s ick e m ploye e s

• C re ate d in re spond to

harshne ss in

ind ustrial cond itions

• Ad m in is tration of

abse nce , train ing &

re cru itm e nt

• S tate / Trad e U nion

partne rsh ips

• H and le d que rie s on

com pe nsation

m atte rs

• E m ploye e d ata

• We lfare &

e m ploym e nt m gt

we re inte grate d →

Pe rsonne l Mgt

• O utput could be

influe nce d by

e m ploym e nt policie s

• S tructure d

com pe nsation policy

• C olle ctive bargain ing

& IR

• S pe cialize d functions

(70’s )

• Ad m in is trator &

te chnical e xpe rt

• Focuse d on

im proving e fficie ncy

& e ffe ctive ne ss

• C om pe nsation

e ngine e ring as ke y to

prod uctivity (ince ntive

plans , d e fe rre d

com p, options )

• S trate gic Bus ine ss

Partne r

• C hange Age nt

• E m ploye e C ham p ion

• C O E

• S hare se rvice

End of 18th Century:Welfare Officers

The World Wars:

Labour/ Employment

Manager

2001 till now:Strategic HR

1945 – 1979:Personnel Mgt

1980 – 2000:Human

Resource / Compliance Officer

Origins of HRA Brief His tory of HR

1890 - 1913 1914- 1939 1945 - 1979 1980- 1990 2000 till now

Welfare Officer

Labor Manager

Personnel Management

Human Resource

Management

Strategic HR

2nd Industrial R evolution World Wars G lobalization

• Ad m in is trative

focus

• C om pliance

• Trad itional m ind

s e t

• Lim ite d scope of

activity

• S pe cialize d

functions

• Ad m in is trative

focus with

e nlarge d scope of

activitie s

• S upport function

• Le s s re active &

m ore proactive

• Bus ine ss Partne r

• Focus on value -

ad d e d activitie s

• Proactive

• Multid is cip linary

• Multi-face te d role s

The Evolution of HRThe HR J ourney

Val

ue

Imp

act/

Co

ntr

ibu

tio

n t

o t

he

Bu

sin

ess

→

High

Val

ue

Imp

act/

Co

ntr

ibu

tio

n t

o t

he

Bu

sin

ess

→

CompensationBenefits

Safety &Workers’

Compensation

Compliance

Labor/Union Relations

Staffing

Training &Development

EmployeeRelations

Survey ActionPlanning

continue to evolve

S ource : R ich Vosburgh

Welfare / Employee

Care

EmployeeWelfare

LaborRelations

EmployeeRelations

PersonnelAdmin

HumanResource

OrganizationalEffectiveness

High

TransactionalWork Transformational

Work

The Evolution of HRThe HR J ourney: Nature of Work

StrategicHR Planning

OrganizationalDesign

HR as BusinessPartner

Culture& Image

PerformanceManagement

HRIS

COE

Shared Svc

Centre

The Changing Role of The Changing Role of HRHR

HR is shifting from focus ing on the organization of the bus ines s to focus ing on

the bus ines s of the organization

The Changing Role of HR

HR is more important than ever, people are the only sus tainable source of competitive advantage.

Watson Wyatt S tud y

“ You can take my factories , burn up my buildings , but give me my people, and I’ll bring my bus ines s right back again.”

- H e nry Ford -

The Changing Role of HR

Employers want HR to addres s s trategic is s ues involving the competitiveness and performance of the firm… More than the role of protector and adminis trator.

What CEOs Really Want from HRReality Check

Requires HR toRequires HR tochange:change:

The bus ines sThe bus ines senvironment:environment:

Requires companiesRequires companiesto focus on:to focus on:

GlobalizationGlobalizationEconomic Economic uncertaintiesuncertaintiesTechnology Technology innovationsinnovationsProfitability thru Cost Profitability thru Cost & Growth& GrowthIntensified Intensified CompetitionCompetition

• Increasing value• Organizational

capabilities → fast, responsive, cost effective

• Creating climate for action

• Unique competitive advantage

Business savvyAlign with strategyStrong bench strengthChange catalystHelp biz leaders to achieve objectives

What CEOs Really Want from HRReality Check

A s urvey of 500 HR directors acros s Europe, the Middle Eas t and As ia, found out that only 15% of the activities carried out by HR departments are related to " pure s trategic interventions " .

Watson Wyatt S tud y

The Changing Role of HRReality Check

StrategicStrategic15%15%

StrategicStrategic60%60%

Transactional/Operational

85% Transactional/Operational

40%

HR needs to realign its service delivery model to add HR needs to realign its service delivery model to add more strategic value to the organizationmore strategic value to the organization

The Changing Role of HRThe S hift in the Balance of HR Roles

% of available resources

Need to expand focus beyond its traditional & transactional role.

Four Roles for HR• Adminis trative Expert• Employee Champion• Change Agent• S trategic Partner

The Role of HRUlrich’s Four-Role Model

Dave Ulrich identifies four distinct roles of HR professional that may add value to a business and create sustainable

competitive advantage.

S trategic Partner

Aligning HR & Bus ines s S trategyActive Role in setting strategic direction

Future /S trate gic FocusFuture /S trate gic Focus

D ay-To-D ay/O pe rational FocusD ay-To-D ay/O pe rational Focus

Change Agent

Managing Trans formation & Change

Effecting Transformation & Change

Adminis trative Expert

Managing The Firm’s HR Infras tructure

Process Optimization & Efficiency

Employee Champion

Managing Employees ’Contribution

Motivated & Competent Personnel

PEOPLE

PROCESSES

The Roles of HRUlrich’s Four-Role Model

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

S trategic Partner• Develops & aligns strategies with biz• Assists line managers in solving organization,

people & change-related issues• Contributes to management team’s strategic

decision-making• Fosters systems thinking, customer focus• Strategically manages workforce development

Change Agent• Understands the organization’s culture & what

is effective and ineffective • Institutionalizes change capability within the

organization• Assists line managers to lead & facilitate change• Acts as a consultant in organizational

effectiveness• Enhances management development


Adminis trative Expert• Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs• Ensures internal &external customer focus• Applies information technology to rapidly

deliver quality HR products and services

Employee Champion• Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment• Ensures fair, ethical, and equitable people

processes and practices• VOE



PEOPLE

PROCESSES

















processes and practices



PEOPLE

PROCESSES


when NOT done well… create a lot of when NOT done well… create a lot of is suesis sues
















processes and practices



PEOPLE

PROCESSES


when done well give the organization when done well give the organization a great s trategic advantagea great s trategic advantage

HRHR as S trategic Partneras S trategic Partner

• Participates in designing & defining organization’s strategies

• Contributes to management team’s strategic decision-making

• Focuses on aligning HR strategies & practices with business strategy → translate business strategy into HR priorities

• Strategically manage people & infrastructure to support the execution of strategies & the creation of value

Strategically manages workforce development

HR as S trategic Partner

Deliverable/outcome: S trategy executionDeliverable/outcome: S trategy execution

S trate gic Partne r

C ore C om pe te ncie s

HR as S trategic PartnerCore Competencies

Facilitate strategy development for business teams by using different techniques

Plan and facilitate strategy deployment to the whole organization

Align the organization strategy with the business strategy to ensure it will be delivered

Redesign the organization to support strategy

HR as Strategic Partner should be able to:HR as Strategic Partner should be able to:

Bus ines s Mas tery

Pers onal C redibility

HR Mas tery

Knowledge Requirements

HR as S trategic PartnerBecoming A S trategic Bus ines s Partner

Bring strong technical expertise to the table and an understanding of your company and its strategy.

Develop new skills as needed. Understand the data, the financials, the market, etc.

Becoming A S trategic Bus iness Partner

Staying focused on issues that matter to the

business

Delivering capabilities that make a real

difference

What are the issues that matter?

What’s keeping business leaders up at night?

What’s the “elephant on the table” regarding the future?

What drives the bottom line?

Focus on business objectives

Focus on environment

Provide organizational capabilities as required by the strategy

PeopleGoal alignmentCulture

Knowledge Requirements

Bring strong technical expertise to the table and an understanding of your company and its strategy.

Develop new skills as needed. Understand the data, the financials, the market, etc.


business








difference


business







Provide organizational capabilities as required by the business objectives:

PeopleStrategyCulture


difference


business

What are the issues that matter?What’s keeping business leaders up at night?What’s the “elephant on the table” regarding the future?What drives the bottom line?Focus on business objectivesFocus on environment

Becoming a bus ines s partner sounds eas y Becoming a bus ines s partner sounds eas y but in practice demands a shift in mindset but in practice demands a shift in mindset

and capabilityand capability

HR as S trategic PartnerBecoming A S trategic Bus ines s Partner

• Becoming a true "player" on strategic business issues → able to challenge business leaders on their own ground

• Architect who can synthesize best practices e.g. Total Reward, Talent Management, OD, etc into integrated solutions and implement at speed

• Shifting from advising and consulting to challenging, provoking, confronting business leaders

• Letting go of the past and engaging with the future

HR as S trategic PartnerMindset S hift

You are involved in dis cuss ions (by invitation!) on the " people implications " of a change or a new initiative in the organization before things go wrong

Line Managers in confide in you about their concerns and problems , even when you are not providing a solution then and there

Managers encourage you to tackle is sues in their areas and express confidence in your ability to do things you may never have done before

You engage in genuine dialogue with line managers

The time frame of your work moves from present/pas t to future - especially longer term future

The " why” of what you is doing is very clear - in terms of organizational need (not " because we always do it/ have done it)

HR as S trategic PartnerYou are moving towards S trategic Partnering When…

HRHR as Change Agent

A s ignificant number of any organization's bus ines s s trategies A s ignificant number of any organization's bus ines s s trategies requires major changes in people-related is s ues ; the HR requires major changes in people-related is s ues ; the HR function and individual HR profes s ionals develop and manage function and individual HR profes s ionals develop and manage the key " people" sys tems needed to s upport organizational the key " people" sys tems needed to s upport organizational change. change.

HR as Change AgentHR as Change Agent

S imple — though not easy

HR as HR as Change Agent AgentA S trategic Role

Provoke the pos itive changes in the organization so it can s tay competitive.

Build the organization’s capacity to embrace and capitalize on change.

HR asChange

Agent

Champion/ Champion/ S ponsor/ S ponsor/ Catalys tCatalys t

FacilitatorFacilitator Des ignerDes igner

Demons trator

Deliverable/outcome: Creating a renewed organizationDeliverable/outcome: Creating a renewed organization

Model the change

Communicate about the change

Engage others to participate

Help others to break from the pas t

Create a supporting environment

HR as Change AgentThe Roles

Before ChangeBefore ChangePreparing for ChangePreparing for Change

Serves as a catalyst for change Serves as a catalyst for change

Helps the organization build a Helps the organization build a capacity for changecapacity for change

Plan change process with Plan change process with sponsorssponsors

Ensure project team has Ensure project team has necessary skills, trainingnecessary skills, training

Coach sponsorCoach sponsor

Lead by example by doing it Lead by example by doing it first within the HR function. first within the HR function.

Facilitate the discussions about Facilitate the discussions about the change and its content with the change and its content with all stakeholders all stakeholders

Coach leaders through the Coach leaders through the changechange

Acts as a coach/mentor to Acts as a coach/mentor to employees to help them employees to help them understand change as it affects understand change as it affects their livestheir lives

Emphasize ‘what is in it’ for the Emphasize ‘what is in it’ for the individuals and address individuals and address concernsconcerns

Strike a balance between the Strike a balance between the business and employeesbusiness and employees

Communicate, communicate, Communicate, communicate, communicatecommunicate

During ChangeDuring ChangeManaging ChangeManaging Change

Help employees to break from Help employees to break from the past & adapt a new culture.the past & adapt a new culture.

Sustain the momentumSustain the momentum

Internalisation of new Internalisation of new behaviour / waybehaviour / way

Recognize & celebrate successRecognize & celebrate success

Build on the changeBuild on the change

Pos t-ChangePos t-ChangeReinforcing ChangeReinforcing Change

The Change Agent Role

Increasing Commitment

Increasing Commitment

Awarenessof desired change

Understandingof change direction

Translationto the work setting

Commitmentto personal change

Internalisationof new behaviour

“Yeah, I saw the memo”

“I understand where we need to go”

“I know how we need to do our jobs differently”

“OK, I’m ready to do it the new way”

“This is the way we do things here”

Information with some involvement sufficient here

Significant involvement needed

HR as Change AgentChange Process

Build the organization’s Build the organization’s capacity to embrace capacity to embrace and manage changeand manage change

• Set the direction

•Create the desire & will to change

Phase

Content

Outcomes

UnfreezeUnfreeze MobiliseMobilise RealiseRealise ReinforceReinforce SustainSustain

•Make early changes & build confidence

• Secure widespread shift in behaviour

•Underpin with changes in structure & people processes

• Strive for continuous performance improvement

Break with the past

Build the energy

Performance lift-off

Embed new culture

Push the limits

The Change Agent RoleThe Change Management Tool

The change has to be managed and the HR Professionals have to be skilled The change has to be managed and the HR Professionals have to be skilled in the change management process. in the change management process.

The Change Agent RoleThe Change Management Tool

A deep knowledge of change management processes

Problem solving skills

Coaching & conflict management skills

Good communication, influencing & facilitation skills

Networking, Collaboration & team-building abilities

Business mastery

Planning & project management skills

Ability to tolerate ambiguity

A risk taker

The Change AgentCompetencies

““ Of course change management isn’t res tricted exclus ively to HR. Line Of course change management isn’t res tricted exclus ively to HR. Line managers are the owners of change while HR can be seen as its managers are the owners of change while HR can be seen as its architect, facilitator and des igner. Nobody ever said that only HR architect, facilitator and des igner. Nobody ever said that only HR manages change.”manages change.”

- Dave Ulrich- Dave Ulrich

The Change Agent

HRHR as Employee Advocate

Partner With

People &Mgnt

Daily Daily Employee Employee

is suesis sues

Employee Employee engagementengagement

Employee Employee developmentdevelopment

Conducive climate & culture

Employee Employee Commitment &Commitment &CompetenceCompetence

HR as Employee AdvocateManaging Employee Contribution

Voice of the EmployeeDevelop employee competenceEquip managers with skills to respond effectively to employees; equip the employees with skills to overcome challengesCreate climate for action

Deliverable/outcome: increasing employee commitment and capability

It is HR’s role to ens ure that line managers unders tand the critical link between employee motivation and organis ational performance and how this link can be s us tained → employees need to be kept engaged and motivated.

HR as Employee Advocate

Four-Role of HRParadoxes Inherent in Multiple HR Roles

Strategic Partner vs. Employee Advocate

Success in multiple-role framework requires that HR professionals balance the tension inherent in being a strategic partner on the one hand and an employee advocate on the other.

HR professionals must demonstrate that they can both represent employee needs and implement management agenda, be the voice of the employee and the voice of management, act as partner to both employees and managers.

HR professionals must strike a balance between the needs of these potentially competing stakeholders.

Being an effective HR professional does not mean simply moving from operational to strategic work. It means learning to master both operational and strategic processes and people.

The operational and transactional aspects of HR need to be handled well. No matter what other strategic and transformational work is being done, the trains still need to run on time.

A strategic partner has multiple dimensions → HR professionals as business partners operate in each of the 4 roles.

HR professionals, in order to meet the demands of these new roles, a shift in mindset and capability is a must.

S ummary

Documents

The Changing Role of HR