Dheeraj jain

HR’s Scenario In 2020

NOW In 2020Local markets, operations Manufacturing, clerical workHierarchyIntermediaries; face-to-face Obedience to formal authorityStability, efficiency, controlFull time jobCustomer serviceWork done by employeesFixed work locationManagement prerogativeLoyal serviceWhite, male workforceFinancial performance“Get a job”

Global markets, operationsService, knowledge workNetworksDirect access,virtual relationshipQuestioning of formal authorityChange, creativity, flexibility, orderPart-time and project workShareholder, stakeholder valueWork done by many contributorsDiverse work locationsSocial licenceMarketable knowledge, skillsDiverse workforceTriple bottom line“Get a life”

HR AT A CROSSROADS “Significant change is inevitable for HR” but “what HR will be and do is

not yet clear” SRHM is doing research to develop a vision for the future of HR and a

profile of the future HR practitioner An HR practitioner might be "a hybrid line manager" who is "first and

foremost a business executive" but has expertise in at least one HR function. SHRM President and CEO, Helen Drinan

“We have to get management to understand that they're responsible for people” AND “If we do our job—and work ourselves out of a job—so be it."

EMERGING LEGAL ISSUES AT WORK NEW TECHNOLOGY ISSUES AGE CONSCIOUSNESS IN THE WORKPLACE GLOBALISATION OF EMPLOYMENT LAW TRAINING FOR LEGAL COMPLIANCE WORKPLACE SAFETY

HR EXECUTIVES’ VIEW OF THE FUTURE

TOP 5 BUSINESS CHALLENGES Developing new markets Improving profitability Market share growth Becoming the recognised global

market leader Building shareholder value

TOP 3 HR CHALLENGES Attracting and retaining

talented people Improving organisational

capabilities Developing leadership skills

Dheeraj jain

The bad and the ugly in HR” “Many HR people still lack business acumen” “We have not adequately managed high expectations

of HR” “There’s too much modeling of mediocrity… and way too little real

research going on” “We have overhyped e-learning and some other fads” “We do much order-taking… and mistaking talk for action”

Jim Moore, former Director of Workforce Development at Sun Microsystems in his address to the 2001 SHRM Annual Conference

FUTURE OF ORGANISATIONS: Scenario 1

SMALL COMPANIES,LARGE NETWORKS Autonomous teams of 1-10 people Temporary - task or project based Linked by high bandwidth, electronic network Venture capital infrastructure identifies promising teams and provides

financing Independent organisations for social networking, recreation,

learning,reputation building and income smoothing evolved from professional associations, unions, clubs, university

alumnis, neighbourhoods, families, churches they are home for our identity as projects come and go

Examples: Film industry; Prato Mills (Italy); Nike; Nokia PC Display Division

Small Company, Large Network HR Very specific HR scope focused on project organisation (e.g. talent

scouting/selection, pay, health & safety) Outsourced

agents, brokers, specialist providers contract staff organisations handle the HR for their talent

as part of their brand and competitive strategy Mutual employment obligations spelled out in project contracts

or implicit in industry standards or assumed from past working experience

Project Manager’s reputation depends on his/her people skills and hence there is a reluctance to delegate to HR specialists

Selection is via networks, personal references, reputation Performance management is via peer pressure and industry/ professional

standards Rewards are contractual or entrepreneurial (equity based) Development is via doing leading edge projects Innovation is via brokers, deal makers, agents, sponsors Individuals rely on professional associations, “guilds”, managers/agents

FUTURE OF ORGANISATIONS: Scenario 2

VIRTUAL COUNTRIES Keiretsu-like alliances with operating companies in every country

Dheeraj jain

Minimal national allegiance - primary loyalty is to the corporation Traditional hierarchy or decentralised divisional structure Company is the focus for individual identity Company meets employees’ needs from cradle to grave Employees own the firm AND have right to elect the Board and

management Open book accounting informs management elections Specialist “organisational designers” travel through firm brokering

partnerships and fostering cross boundary communication Role of governments, industry unions is significantly reduced

CHANGING “HR” ROLES: Some Generalisations

PAST

HR ROLE WAS CLEARLYDIFFERENTIATED

mechanistic (Personnel Admin)

ritualistic, legalistic (IR) CEO’s eyes and ears

with the troops distinct professional

career paths

HR is HR’s responsibility

FUTURE

PEOPLE/LEADERSHIP ROLE IS DISTRIBUTED AND DIFFUSE

knowledge management relationship

management; teamwork legal compliance change management no distinct HR

profession - new hybrid roles emerge

People/Leadership is everyone’s responsibility

NEW CRITERIA FOR RATING “HR”? Profit generated per employee (compared to industry benchmark) Salary/wages costs compared to industry median (reflecting

value of corporate reputation/intangibles in labour market) Number of talented candidates applying for advertised (and

unadvertised) vacancies Time taken to satisfy customer orders, inquiries, complaints (compared to

agreed service standards) Incidence of customer complaints caused by employee behaviour Cost of re-work Cost/risk due to time lost through injuries, absences, disputes Rate/cost of unplanned turnover among good performers Percentage of customers citing “service quality” or “competent, caring

staff” as a competitive edge for the company Net cost of generating organisational improvements Percentage of revenue/profits coming from initiatives taken in

last 3 years Share price premium compared to industry peers