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Is there a future for HR?
Jigar
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Posted 29-07-2009Reply

In the history of the world we have seen many people who have overcome major obstacles and gone beyond the normal limits to bring change and innovation that has a profound impact on our lives. We have also witnessed major events that required individual genius, a cast of thousands and a vision and engagement to a common cause that has shaped and reshaped our world. People do and can make a difference.



In organisational terms the cry we now hear most often is that our people are our strength, or our people are our most important assets, or it is only through our people that we will gain competitive advantage. The key questions here are: do we really and truly believe this? If so, are we truly prepared to commit to the investment and risk associated with making this a reality? And are we prepared to trust and commit our bodies and our collective minds to making this a reality?



I have witnessed many half-hearted attempts at making the above statements live. They have failed and they will continue to fail until and unless we understand not what we are asking but what we as individuals, leaders and HR professionals must unlearn about who we are. Are we prepared to transform the way we behave, the way we interact, the responsibilities we are prepared to accept, the trust we must give first, the learning we must achieve, and the absolute passion, enthusiasm and commitment we must embrace to making it happen? Do we really believe HR is ready for this journey? Does HR even recognise the need for radical change?



When the head of the HR professional body - Jackie Orme, chief executive CIPD - says HR needs wholesale restructuring and there needs to be significant shift in focus, then we have to accept there is a serious and systemic fault line.



My view is that HR is populated with too many self-seeking, blame-shifting blockers and manipulators who kill the enlightened view and restrict and choke organisational progression. You know them - the pen- pushing administrators and positioners, who tell the business what it cannot do, build processes and systems that inhibit or dilute any sensible simplicity that is a key requisite in the current world where change, speed and innovation are the new business imperatives.



But before I become too much of a doom merchant, I believe there is hope. There are HR leaders I know and respect who I believe are showing us a new way. Indeed, it is only through meeting such individuals that we begin to realise how scarce they are within the profession. To me there's no doubt technology has been one of the key drivers in HR transformation over the past 10 years, but with it has also come a shift in mindset. The mantra as stated is that people are a company's most important asset. So what has that to do with HR? A key question should be: is HR the business's greatest asset-enabler and is its future an enhanced one or should we consider oblivion?



The problem with HR is that it has always struggled to prove its value. But does it really have any intrinsic value to the business, or should we just bite the bullet and call it the admin function? There are many facets to consider in the role such as recruitment and retention, talent management, reward and recognition, managing absenteeism, policies and legislation, coaching and training... the list goes on. HR needs to move on from its internal navel-gazing and agonising over its own importance and really get to grips with what is really needed, what is truly essential, to support organisational performance. If it cannot achieve the critical deliverables associated with developing the organisation to meet future challenges, while still supporting and improving its current capabilities, then it is failing in its core role and extinction looms.



Is it all about expectation? Perhaps in business we have such a low expectation of what HR can bring to the table that we get what we deserve. If we bring in those who adhere to rules and processes without question, can we really expect speed, change and innovation? I think we know the answer. Maybe even when we bring in talented HR professionals we throttle the life out of them, rendering them administrators and guardians of process by blocking any idea or opportunity to improve. And of course if we do bring in those who hassle, question and innovate, are we prepared for the discomfort that may cause us?



The HR function of the future will include people with greater business acumen and a preference for execution with simplicity - whether from front-line management or other functions - bringing a much broader perspective to bear than the archetypal ‘personnel professional' concept of the past. There needs to be a night of long knives where those who get it - that is, who understand that it is about business solutions - stay and those whose drivers are politics, process and bureaucracy are consigned to the vault of admin roles with greater speed than they are used to.



HR needs to be at the heart of organisational achievement and people strategy, not at the periphery, and in a place that real achievers will want to be. Forget the past programmes that gave HR a role and the business little results. Change and speed combined with a passion for innovation need to be HR bywords.



Critically, the function will need to be led by people who have the courage and respect to shape behaviour at the top, and ensure that the organisation has the role model achievers that will provide resilience and cohesion through the tough times as well as the good. Imagine a world where the most talented are clambering after HR roles, knowing that is where they can make a major difference to the business. HR leaders also need to be able to demonstrate that they can get things done, and inspire or select for action orientation among their key executives.



HR leaders need to bring real experience of successfully managing change to the top leadership team. We need leaders who can challenge the CEO, rather than unquestioning, subservient accepters of short-term strategy that is poorly considered and implemented with a rush of adrenalin and very little consideration for the consequences of the stated greatest asset. This includes having genuine vision while also being effective orchestrators of projects. They need to have the analytical ability to rethink the function to align with what the future business vision and operating context indicates - and if those aren't clear, they will need to help the top team fix that fast.



They will need the courage and personal conviction to lead their senior management team through what is likely to be a combination of slimming and reskilling of quite painful proportions. This will be a difficult process. Forging leaner and higher capability practices will not be easy in many organisations. HR needs to get it fast - change is endemic to society. They have to be the architects, the advocates, the role models and the implementers of a change mission like none we have encountered before.



Are we there? No way José! Will we get there? I am uncertain. What I do know is that if HR does not wake up and smell the coffee, their future is dust! Ulrich and the many advocates of HR value analyses are old generation. Modern HR professionals who want a career that means something need to be more courageous and speak out more. Change now.



HR needs a revolution and a scythe not a scalpel. HR needs leaders with conviction and vision that is about enabling the greatest asset of the future in a way that we have not seen before. I know people who are leading this charge. I truly hope they are successful. If not, then I don't see the world of business collapsing for the want of great HR people. No, organisations will simply move forward and consign HR to the history of business-past, and look back on the function not fondly but with a strange curiosity. Like the aliens in the old Cadbury's Smash advertisement commenting: "Did organisations really put up with those sorts of people?'



Source: Maurice Duffy CEO Blackswann
Pradeep
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  Rated 0 | Posted 29-07-2009

Very informative and useful post Jigar.Thank you for sharing.
Let me add an article which appeared today in "Ascent" of "Times of India" to give more insight into present and future scenario of HR.
The human resources function is no longer a side business for an enterprise. It has come to occupy the centre stage in many industries
In the knowledge economy of today, career growth is a direct outcome of the investment one makes in training and skill development. Increasing consciousness about hiring the best person for the best job is matched with unique approaches to retain talent in an organisation. The human resources function is no longer a side business for an enterprise. It has come to occupy the centre stage in many industries. An independent study revealed that over 80 per cent of the CEOs from different industries consider HR a core function.
In the hotel industry, for instance, Keshav Baljee, vice president, corporate affairs of Royal Orchid Hotels explains, “HR has stepped into the boardroom - from supporting business decisions as data provider, it has turned around to play the role of decision making as an intellectual partner. The quality of business decisions has a huge payoff. Secondly, HR drives and controls (employee) cost and employee engagement. In the days to come, service (of products) is going to be the basic differentiator. The service industry is an absolutely perception based industry and the frontline staff is responsible for driving the majority of business.”
Ajay Trehan, CEO, AuthBridge Research Services points out, “A service organisation stands on 3 pillars – People, Processes and Clients. Ultimately, the last two pillars also in some way depend on the quality of the first pillar. Everything boils down to people. To improve revenues and profits, the organisation has to be in a position to hire and retain talent. We have invested into providing our people a strong positive environment to work in and that is what has paid off over the years.”
Stronger balance sheets
A majority of senior mangers today agree strongly that HR has contributed to quantitative results and strengthening of balance sheets. Baljee further adds, “Some of the timely business decisions taken on cost and quality, deployment of human resources, etc. yield quantitative results which are visible and measureable. It has been proved that employee productivity and business results are directly proportional. Also, in today’s business environment, to derive extraordinary business results, it is imperative that the employees are kept charged at any given point of time. The current HR has moved from transactional to strategic role to drive people capabilities and drive competitive business advantage.”
The right kind of investments
To derive quantitative results from advanced HR functions, it is important to make investments in the right area. Ashok Reddy, managing director, TeamLease Services explains, “Contribution of HR to business results in quantitative terms is likely to increase in future. It is important to now focus on training and scaling up the internal teams to increase productivity and performance orientation. Reward structures should be built around performance.”
A happy workforce is the key to productivity and success. Karthik K S, CEO, 24x7 Learning explains, “A strong HR function results in a happy, motivated, loyal workforce leading to enhanced productivity. This increases the ROI significantly. Happy and productive workforce is probably the best advantage and edge the business will have in the marketplace. Investing in learning and development initiatives as part of the HR function, and up-skilling and cross-training your workforce also helps insulate an organisation especially in times of recession.”
The future
In future, as Karthik explains, HR functions will expand in the areas of competency management and talent management initiatives. Clearly, the role of HR will become more strategic than operational or tactical. It is also important for HR mangers to look to prepare selected few employees to take charge of some of the top jobs within the company. When hiring fresh post-graduates or graduates, the role of HR must evolve into bringing them up to corporate needs. As rightly summed up by Baljee, HR must ultimately look at the futuristic needs of the organisation such as competencies, business expansion, cost rationalisation, attracting the right profiled employees and keeping them hooked on to the job!
* This is by Unnati Narang - "Ascent" -"Times of India", 29-7-2009

Jigar
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  Rated +1 | Posted 29-07-2009

Yes Pradeep it is this article that i read and tried to think about the above article by Maurice that i read in during sometime ago.

Ashish
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  Rated 0 | Posted 31-07-2009

Good note there Jigar,

Globalization, growing operational complexity, scarcity of talent,
an aging workforce, and greater workforce mobility have thrust HR
into the forefront of organizations’ business challenges. Concurrently,
HR’s traditional role as a transactional service provider has been
reduced by new technologies and outsourcing.

-Where should HR functions prioritize improvement investments?
Increased HR functional effectiveness drives improvement in key talent and business unit
outcomes.
The HR business partner (HRBP) is the HR position most directly linked to HR’s effectiveness
at supporting the line.
To improve HR–line support effectiveness, HRBPs must improve performance at the strategic
role.
The profi le of the person and the design of the job determine HRBP effectiveness at the
strategic role.

- What is the profile of the best-in-class strategic HR business partner?

Build HRBP competencies in business acumen, innovation, leadership, metrics, and
workforce management to drive impact.
The most effective development methods for building HRBPs’ strategic partner competencies
are on-the-job experiences that capitalize on key learning opportunities already within the
work of the HRBP.

- How are successful HR–line partnerships best designed?

The quality of strategic work, not time spent, matters most to strategic partner effectiveness.
Focus the HRBP role on generating insights, managing through infl uence, and maintaining
accountability through results.

- What HR function-wide changes best enable improvement across all HR
business partner staff?

Set HRBP relationship span to optimize the number of senior executives supported who have
similar business needs, not the number of employees served.
Use HRBPs to steward central HR resources toward areas of greatest business need.

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