HRM– challenges ahead

HRM – CHALLENGES AHEAD

SK Singh, HRM , IOCL

ERSTWHILE HRM
 Meeting Statutory Obligation.
 Welfare Orientation.
 Maintain Command and Control.
 Discipline administration.
 Cost Center/Overhead.
 Supportive function / staffing.
 Limited Communication.
 Isolated/Island function
 Manpower provider/source.
 Limited opportunities.

MACRO LEVEL CHANGES
 Licensing era ended.
* Lowered Import Duty.
* Deregulating Export Controls.
* Disinvestment of state controlled industry.
 Advent of Mobile Telephony in 1995.
* 742 million in 2010 – Mobile
* 12,000 Telephone Booths in 1980.
* 4.5 million in 2000 – Mobiles subscribe Base.

 Y2Y Bug – IT Revolution
* Triggered Outsourcing.
* Lead to employment generation.
* Growth of software firms to National Multi Mega Corporation.

MACRO LEVEL CHANGES
 Boom-bust-Recession, Downtown etc. increased pressure.
* Home grown firms – Infosys, Wipro, HCL TCS..
* $ 2 billion to $ 70 billion in 2010.
* Indian Companies become global.

 Coming of INTERNET – Global Web.
 Market Driven economy – Globalisation.
 Economic Growth : GDP from 3.5% in 2003 to 9% in 2008.
 Service Industry – Expansion.
 Social Media
 Competition Threats.

WHY HRM HAS OCCUPIED CENTER
STAGE?
 Ageing workforce – Demographic challenge
 - 80 million – Baby Boomer (Age 41 – 60).
 - 46 million Gen X’ers (Age 26-41 years)
 - 30 million Gen. Y (Mill ) (Age 7 – 25 yrs.)

 Global Companies – Diversity lifestyle.
 Cultural issues
 Complex Business environment
 Integration.

 Leadership Squeeze / crunch
 Work Life Balance – Emotional Issue
 Physical Health
 Recreational
 Customer Orientation.
 Measure ability of tangibles / Intangibles of HR.
 Sustainable Business Advantage – Create.
 Cope up with internecine.
 Competition – Domestic / Overseas.

HARD FACT ABOUT HR PROFESSIONALS
“One reason why HR has not become central to business as it
should be is that HR often lacks knowledge of theory. Theory
explains why events happen. Theory provides explanation
based on logic for now events relate to each other. Theory
weaves individual events into predictable and generalized
patterns. To make HR practices more than isolated
acts, managers and HR professionals must master the theory
behind HR work; they need to be able to explain conceptually
how and why HR practices lead to their outcomes.” Prof. CK
Prahlad: Professor of Strategy

Learning without exercise is poison, a meal without appetite is
poison, living in society of a poor man is poison and for an old
husband, a young wife is poison- Chanakya

INTANGIBLES OF HRM
HR is expected to promote intangibles such as :
 Talent

 Speed of execution

 Learning

 Accountability

 Collaboration

 Leadership Brand of Organization
 Strong Results
 Strong Behaviors.
 Culture – Workplace.
 Knowledge Management

SOFT STRATEGIC HRM PHILOSPHY
 Empowerment
 Employee Involvement

 Communication

 Learning Organization

 QWL, Welfare, Justice.

 Respect for individuality

 Pride

 Camaraderie.

 Diversity Management

HARD STRATEGIC HRM PHILOSPHY
 HR Policies aligned with Govt. Regulation.
 Contractualisation
 Flexibility.
 Performance Management.
 ROI
 Unionism – Employee Relations.
 Litigation

ROLE OF HR- VIEW OF JACK WELCH, EX-
CEO OF GE

Without doubt, the head of HR should be second
most important person in any organization; from the
point of view of CEO, the HR Director should be at
least equal to the CFO.

HR too often gets relegated or pushed into benefits
trap ----- and gets saddled with health and
happiness activities ---- HR should be elevated to a
position of power and primary role in the
organization.
(Market capitalization $133 – 1981 to $ 500 Billion in 2000)

UNDERSTANDING HR LINKAGES

 Understanding strategy and vision.
 Understanding Business goals / objectives.

 HR philosophy-Connected to strategy .

 HR strategy – Unique, Consistent and inimitable set of
tangible & intangible human assets. “Blueprint” of HR
policy to cater to Business for next, 5, 10 or 15 years.
 Strategic HR – Business Partner.

 Strategic HR – Dashboard / Parameters to measure.

BUSINESS STRATEGY-HR LINKAGES

Strategic HRM

HR Dash HR Policies &
board Practices

Business
Strategy

HR
HR
Competencies
Professionals
and Behavior

NEW HRM CHALLENGES
1) Managing Talent :-
Key Questions being raised are :-

 Successful in attracting, developing and Retaining
Key talent or HPW.
 Take stock of the TM Processes.
 Competency Management.

 Performance Management

 Succession Planning

 Leadership Development

 Systems Integration

New TM system :
 Planning – Acquiring – Developing – Managing – Retaining.

NEW HRM CHALLENGES
Managing Talent
RISK Analysis of Talent Pool
 Vacancy Risk-Safeguarding key business capability
 Readiness Risk- Leadership Development
 Transition Risk- Loss of Key Talent
 Portfolio Risk- Commitment to Development & Performance
Standard
Talent Dashboard
 Maintain Talent fencing “Signals” or “Cues”
 Watch wobbling of Key Talent
 Reprimand Data
 Employee participation Level
 Employee response to Communication
 Concern for Compensation & Rewards

HR CHALLENGES
2. Manage Workplace to gain People Advantage

Key questions to be asked:
 Employees Value Proposition
 Value- Cost & Experience
 Rareness High Performance Standards
R&D
Empowerment
Individuality- My Space
Freedom- Fun n Joy
Challenging assignment
Exposure
Work Life Balance
Learning & Development

 Organized in Teams/ Structures

GOOGLE WORKPLACE
Features:
 Bright, Enthusiastic

 Speed, Agility

 Exiting /Challenging Performance

 Own space -20% for Self Development

 Learning

 Work Life Balance

 Ambitious Ideas, Entrepreneurial

 Passionate and High Energy Level, Committed

 Intellectual and Emotional Involvement

ENGAGED EMPLOYEE

Say- Positive
Things

Stay- Likelihood
Strive – Extra
of continuing
Effort for
(Watch for
Business
Boomerang
Success
Talent)

Employee
Engagement

FACTORS INFLUENCING MOTIVATION AT WORK
 80%- Treated with Respect
 69%- Base Pay

 60%- Benefits

 59%- Long Term Career Preference

 51% - Variable Pay

Study done by Mercer
Refer Gallup Q12 to gauge Engagement

GREAT WORKPLACES HAVE GREAT EMPLOYEES

 Fire in the Belly
 Ready to go the Extra Mile

 Less prone to Stress and Burnout

 Physically, psychologically and socially well
balanced
 Exhibit Organizational Citizen ship Behavior(OCB)-
Like in a Football or Rugby Team
 Better perception of Justice or unbiasness

HR CHALLENGES
3. Leadership Development/Building
Leaders transform the Vision of the Organization into Profitability,
Productivity and increased brand value

 Architect of growth
 Role Model for Team
 Develop People
 Enthuses team members to tackle problems, hitches, hiccups, odds, adversities
 Build exciting Work place
 Empower People
 Nurture and Care
 Coaches People
 Imbibes a sense of Purpose
 Affiliation, Association and Understanding

Good Leader results in increase in profits by 14 %- Nitin Nohari, Dean of HBS

HR CHALLENGES
4. Managing “Change”
Necessitated due to the following factors:
 New Markets due to Globalisation
 New Culture
 Diverse Habits/Traditions/Religion
 L lifestyles
 Byelaws/Rules/Regulations
 Merger & Acquisitions
 Demographic Challenges
 Ageing Population in Developed Countries
 Loss of Critical Pool Talent
 Experience and Knowledge Base
 Create Talent Pool analysis –Succession Planning
 Increase Health Management
 More Learning & Development opportunities
 Sabbatical/ Breaks
 Flexible Working

MANAGE CHANGE –GEN X/Y
 Mavericks Lifestyle
 Monomaniacs
 Expanded Horizon- Ambition
 Sifty / Squirrel Like Attention span
 Media/Tech Savvy- Twitter, Gtalk, Facebook on the move
 Life after Work merges with Life@workplace
 Increased Network/connectivity
 Different priorities in Life
 Ready to relocate
 Survive in Economic uncertainty
 Competitive and updated
Role of HR to manage Gen X or Y workforce is critical.

HR CHALLENGES
5. Communication Focus
No empowerment or Engagement is possible without effective communication.
 Central to all implementation of all Strategy
 Communicating Vision, Mission, Goal to permeate down below
How to do so:
 Inhouse Newsletter
 Team Working
 Management by Wandering Around
 Brainstorming/TQM/QC
 Surveys/Studies
 Reunion/Webnairs
 Get Togethers/Outing
 Meeting People
 Personal Connect
 Involve Family- Birthday/Anniversary
 Welcome Letter
 Interact With Collectives – Union/Association/Panchyat
 Dispel small Niggles/Grievances in time
 Feedback Mechanism

6. High Performance Work Culture
 Brand Value as an Employer- Google example
 Feel good factor
 Ease of Performing
 Approachability to Top Management
 Avoid Glass Ceiling/Berlin Wall scenario
 Maintain secrecy Clause – Client/Customer
 High standards of Integrity
 High Ethical performance standards, Values, Beliefs
 Monitor Trust Deficit, Loyalty Index
 Respect for Peoples opinion, ideas, background, sex,
custom etc.

7.Enterprsie Based Software
 HRIS, SAP, customized Software Employee Data
Management, Payroll
 Online/Electronically activated PMS

 Outsourcing Administrative Functions

 Usage of Cloud Computing and Internet

 Manage Insurance and Investment Savings Tips

8. Understand External and Internal Business Factors
 Employee/ Industrial Relations

 Political Activisim

 Environment/Pollution/Safety

 Monitor Market Fluctuations

 Government Policies

 Judicial Pronouncements

 Socio Economic Factors

9. Understanding of HR Policies, Procedures and
Practices- Localised
 Right People in Right Job

 Managing Social System

 Follow Through Habit

 Succession Planning

 Reviews of Processes

10.Learning Organization

 Talent Need Identification
 Update Knowledge and Skill

 Hone Attitude and Habits

 Regular Feedback

QUALITIES OF HR PROFESSIONAL IN
INDIAN like quantities – Elephant
 Pachyderm
CONTEXT
Core competencies
 Knowledge of HR Matrix
 Leadership Matrix
 Communication skills
 Ability to learn
 Know the work process
 Capability to predict
 Interactive, Practical, Proactive, Positive
 Non Bureaucratic
 Rely on acumen, keenness to learn
 Alert, informative, updated
 Committed.
 High Ethical standard / Moral ground
 Negotiating skill
 Read between the lines
 Go under the skin – Banana.
 Innovative, Creative Bent of Kind.
 Dash Board, Matrix Maintain
 Cost Benefit Analysis of HR procedures
 Affiliation, Approachable, Affinity
 Coach Mentality

WHAT EMPLOYERS LOOK FOR HR?
 Good Track record
 Trustworthy
 Confidence gaining
 High Integrity
 Appropriate Risk
 Insight of Business environment
 Visionary
 Supports relationship
 Creative
 Shares knowledge across organizational boundaries
 Enthuses employees
 Effective verbal communication
 Facilitates the process of restructuring
 Attracts employees
 Disseminates Positive vibes and clear and convincing information

EMPLOYERS LOOK FOR HR
 HR deliverables are not STATIC, evolves continually
 Gauge Employee needs
 Inculcate Culture of Reliability, Durability, Effectiveness,
Efficiency and Empathy
 Speed, Courtesy, Accuracy to follow “Employee First”
concept
 Methodology and design to deliver
 Develop points of leverage – Desirability and Delivery
mechanism
 Understanding and implementation of Labour Laws
 Liaison and Manage External Factors- Lab. Machinery
and District Authorities
 Degree of Negotiating Skill – Need to know the (BAFNA)
Best Alternative to a Negotiated Agreement

TASKS
 Prepare a JD
 HR Strategy Development Process :

1. Know your company.
2. Prioritize Trends.
3. Competitive Advantage of the Company.
4. Culture & Technical capabilities.
5. Noises - Media
 Union
 Political
 Socio Economic
6. HR Practices.

HRM– challenges ahead

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