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 Propositio

n

Knowing ExternalBusiness 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 HRCritical factors in organization for Achievement of Goals

Shared Leadership• Political, administrative and bargainingunit 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 resourceperformance and well-being• Employees are aware of corporate and departmental direction and how theirperformance 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/ManagementPartnerships• Joint initiatives, agreements and collaborativeproblem-solving that reflect theHR vision and values

A Proactive Approachto Human Resource Planning• Researching demographics, effectiveservice delivery, internal and external bestpractices 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 deliverquality service

Shared Employer/Employee Commitment for Career and Self-Development• Employee commitment to managinghis/her own continuous learning and growth• The Company provides opportunities andinformation to support continuouslearning and growth• Core competencies are identified andtraining provided around specificjobs/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 allparticipants to reach their full potential• Employees are recognized as the Company’s most valuable resource

Open Communicationand Knowledge Growth

• Sharing knowledge on trends, best practices,

etc. throughout the organization• Information sharing across all levels

These factors are critical to the successfulachievement 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

ProductivityGrowth

Percent

Source: Employment Policy Foundation

• Demographics

Labor Shortage is Looming

130

150

170

190

210

2003

2007

2011

2015

2019

2023

2027

2031

LaborForceNeeded

LaborForceAvailable

Source: EPF Analysis of BLS Data

Com

pou

nd

Gro

wth

in

Work

forc

e

0

0.5

1

1.5

2

2.5

3

1950s

1960s

1970s

1980s

1990s

2000s

2010s

Growth

Skill Shortage ChallengeNew Jobs will require more education

0

10

20

30

40

50

60

70

80

HighSchool

Only

Non-DegreeTraining

AnyCollegeDegree

Total Employment2002

ProjectedEmployment 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

Inte

gra

ted

Syste

m

Top HR Concerns

Top 5 issues from HRPA 2006 Survey:Attracting, developing and retaining talentHealth care costs, strategies, and benefit

designsLeadership developmentCompensation strategies for motivating

and rewarding executive talentManaging organizational change