XIMB Dr.SK Mahapatra Sr.GM (HR), POSCO-India1 The Future of HR Towards enterprise value creation

2 Set Expectations Perform Task Provide Feedback Train/ Develop Evaluate Performance Reward/ Incentive Promote/ Separate Hire The Human Resource Management Wheel managing in the traditional way

3 CostsValue Added 30% 10% 60% 30% ADMINISTRATION STRATEGY PLANNING ORG & JOB STAFFING PERF. MGMT. DEVELOPMENT COMPENSATION ORG DESIGN DEVELOPMENT SERVICES DELIVERY 10% HR PRODUCTS AND SERVICES Costs v. Perceived Value Added 60%

4 ion Source: Lyle M. Spencer, Jr., Ph.D. (1995) Reengineering Human Resources. New York, NY John Wiley & Sons. Planning Delivery Administration CostsValue-Added 30% 10% 30% 60% Planning Delivery ministrat TODAY TOMORROW --and refocused work on higher value-added activities Ad HR costs can be cut by 70%

5 How HR Adds Value: Select, train to shift curve to the right.6 S.D. % value added by more SUPERIOR Performance with Competency- based Staffing, Training Baseline % SUPERIOR Performance

6 IHRMIS ORG & JOB DESIGN STAFFING/ DESTAFFING ORGANIZATION DEVELOPMENT COMPENSATION & REWARD PERFORMANCE MANAGEMENT TRAINING & DEVELOPMENT Integrated HR Management System

7 RETHINK WORK FROM SCRATCH:  Eliminate, Outsource, Reengineer INTEGRATED INFORMATION SYSTEMS  “ up stream ” to suppliers and “ down stream ” to customers NO work: customer self-service, D-I-Y NO paper: everything on screens NO office: everyone has everything they need to work anywhere/everywhere NO travel: communicate vs. commute, transport 1 PERSON (or team) do it all AT FIRST POINT OF CONTACT NO wait: parallel/concurrent processing for faster service Redesigning Work Systems

8 1. “ Do It Yourself “ D-I-Y SELF SERVICE Enable “ customer ” to meet needs, accomplish task him/herself  Ideal: J-I-T, without movement, with perfect reliability Examples:  Automatic Tea/coffee vending machines: faster service; client physically moves to ‘ cafeteria ’  Automatic Teller Machines (ATMs): employee benefit kiosks : faster service, client goes to robot  Computer program help screens: J-I-T, No movement from your workstation required to apply / avail personal services viz, leave, medical, travel arrangements etc.  All HR manuals, reports, training programs on-line HELP Using Technology for cutting Costs

9 World class self-service: 95+% at first point of contact On-line, Expert System Help “Center of Excellence Expert” HR Help Desk Customer “D-I-Y” HR “Business Partner.” “World Class” Expert Automated Self Service

10 VALUE ADDED High Low ORGANIZATIONAL INFLUENCE Program Development & Delivery Program Development & Delivery Administration and Compliance Administration and Compliance Active Partner in Organization Strategy Active Partner in Organization Strategy HR Value Chain “Commodity” Outsourced Automated to enable Customer self-service “Trusted Advisor” Change Agent Identifies, fixes key BUSINESS issues Change Agent Identifies, fixes key BUSINESS issues Up the Value Chain – HR leadership

SK Mahapatra