CHALLENGES & THE FUTURE OF HUMAN RESOURCES

CONTENTS Introduction HR Traditional Roles HRM in the 21st Century HR as Strategic Partner Delivery/Execution of Strategy Strategy, Culture, & Leadership Changing Role of Human Resource Summary & Conclusion Conclusion

INTRODUCTION The business environment has been revolutionized Business now operates in a global environment Advances in technology, changes in consumer demands A flexible and mobile workforce have been instrumental in influencing this change

INTRODUCTION (CONT) Organizations are thinking broadly and about their impact beyond financial performance in areas which comprise: (a) corporate social responsibility; (b) community and environment impact;

INTRODUCTION (CONT) (c) ethics and social responsibility, and, (d) employee value proposition This rapid change in business environment has required the HR function to evaluate and quickly re-invent itself

HR TRADTIONAL ROLE As significant changes occurs in the approach to people management, the traditional role of HR has evolved enormously The traditional HR functions of employee service, policy development and maintenance have diminished in importance The successful HR manager of today works alongside the business as a strategic partner, helping to integrate people strategies with business strategies

HRM IN THE 21ST CENTURY The competitive environment for Human Resource Management (HRM) HRM occurs not in vacuum, but in a complex and dynamic milieu of forces within organizational forces HR Manager now have a strategic perspective that recognizes the critical links between organizational strategy and HR strategy

HR AS STRATEGIC PARTNERS HR professionals are required to transform from ‘bureaucratic managers’ to professional skills in offering expert advice coupled with commercial awareness and business knowledge HR function is no longer an administrative function In today’s business world, HR needs a long term, strategic approach, and to be proactively involved in organizational decision making

HR AS STRATEGIC PARTNERS (CONT) As companies move into ‘war’ for talent and as individuals with specialized knowledge, skills, and expertise are seen as scarce strategic resources HR professional must be key players in the design, development, and delivery of company strategy

HR AS STARTEGIC PARTNER (CONT) As organization start to align people strategy to business objective, with HR becoming a business partner, it is increasingly apparent that the credo ‘people are the most important asset’ must become meaningful and be reflected in actions The failure to harness the people power of the organization is being felt by many large organizations as they struggle to sustain growth

HR AS STARTEGIC PARTNER (CONT) In fact, there has been a fundamental shift in leadership thinking as business leaders understand how people can differentiate one organization from another In highly competitive market place, with products and services similar in design and delivery, organizations can use their people to improve their business performance and set them apart from their competitor

HR AS STARTEGIC PARTNER (CONT) In fact, a lot of companies are acknowledging that their people are the only differentiating advantage that they have To become effective strategic business partner, HR must be involved in organizational decision making process

HR AS STRATEGIC PARTNER (CONT) This means building a strategic, long term human capital vision so that HR can proactively contribute to an organization’s financial performance People objectives should be aligned to corporate objectives, underpinned at a tactical and operational level through connected people activities and operations

DELIVERY& EXECUTION OF STRATEGY Strategy is delivered by people, and ultimately it is only as good as its execution Execution relies on people within the organization The HR influence here relates to the ability to change organization thinking about people work practices.

DELIVERY& EXECUTION OF STRATEGY (CONT) This is necessary to create an environment that allows for successful execution of strategy to help organization achieve its goals and objectives

DELIVERY & EXECUTION OF STRATEGY (CONT) This links to both leadership and culture It is the leaders in the organization that defines the strategy and it is also their behavior that defines the organizational culture A positive culture coupled with superb execution of strategy leads to organizational success through people capability and engagement

STRATEGY, CULTURE & LEADERSHIP Strategy, culture and leadership play an important part in organizational success HR is a significant influence on strategy, culture and leadership One of the unique ‘value add’ that HR can offer is in the linking of strategy, culture and leadership and influencing at executive level to drive the desired outcomes from linkage

STRATEGY, CULTURE & LEADERSHIP (CONT) HR needs to work in partnership with the CEO in developing leadership and succession plan within the organization This is about getting the right people with the right skills into the organization and developing key members from within It is also important in getting this combination in balance to the benefit of the organization

STRATEGY, CULTURE & LEADERSHIP (CONT) With factors such as restructuring, downsizing, delayering and a more mobile workforce, most organization can no longer can be assured of a steady stream of leadership coming up through the ‘ranks’ There are also demographic trends causing a shrinking pool of talent

STRATEGY, CULTURE & LEADERSHIP (CONT) Change in global business environment has also changed the role of today’s leaders; thinking globally and acting locally This change has taken a fundamental shift from job description of the 1960’s and 1970’s and 1980’s

STRATEGY, CULTURE & LEADERSHIP (CONT) Words such as inspirational, visionary, communicator, innovator are being used to describe top leaders, changing the past notion that leadership skills would be automatically developed or accumulated as individuals work their way through the organization’s ranks

STRATEGY, CULTURE & LEADERSHIP (CONT) Continuity of strong leadership is imperative to ongoing success and the right style of leadership that is important to leading high performing workforce Succession planning and development has become a strategic activity of utmost importance

STRATEGY, CULTURE & LEADERSHIP (CONT) A survey by ‘Fortune 500’ companies found that 85% of respondent believe there is insufficient amount of employees with global leadership skills The majority of survey respondents in a recent study by Arthur Anderson identified global leadership development as a top priority for their organization

STRATEGY, CULTURE & LEADERSHIP (CONT) Companies included in a Development Dimension International (DDI) study examining the globalization of HR indicate their top priority over the next two years is leadership development (Corporate Leadership Council, 2012) HR must play a role in ensuring that the activities of succession planning and development receive the management focus they warrant

STRATEGY, CULTURE & LEADERSHIP (CONT) HR must partner with business leaders to help ensure the bench strength of the management team Identify a supply of executive talent which will allow the organization to be well positioned for future challenges and opportunities

STRATEGY, CULTURE & LEADERSHIP (CONT) In understanding and defining leadership criteria, HR is accountable for building and implementing the talent management framework that allow for: (a) Identification of individual for future leadership (b) Support in coaching, mentoring, and communication -

STRATEGY, CULTURE & LEADERSHIP (CONT) © External screening of potential leaders By creating this management depth, the organization improves its ability to achieve its corporate goals and objectives

STRATEGY, CULTURE & LEADERSHIP (CONT) As lamented by Watson Wyatt Worldwide study: ‘the more comprehensive a company’s leadership development effort, the better the financial results were on the critical financial measures’ (Watson Wyatt Worldwide, 2012)

STRATEGY, CULTURE & LEADERSHIP (CONT) HR is also accountable in supporting the organization’s people leaders across all organizational levels The changing business environment has largely driven changes in corporate culture Some organizations have managed to successfully adapt whilst others are struggling to do so Need for Mixed Competencies that Represent a mix of skills

STRATEGY, CULTURE & LEADERSHIP (CONT) Successful adaptation has seen organizations examine their structures, method of decision making, organizational strategy, and style of interaction with the environment, their employees, and the community Simply put, changes in corporate culture is necessary to remain competitive and successful in this changing and dynamic environment

CHANGING ROLE OF HR Changes in HR functions opens some new and challenging issues for today’s HR practitioner’s As such, HR practitioner’s are required to transform their expertise and behaviors to suit this new environment Just as the skill set for today’s business leaders has changed, so it is the case for the successful HR practitioners

CHANGING ROLE OF HR As Stone observes: ‘HR managers must be able to ask appropriate questions and contribute to business decisions. Consequently, the HR Manager must develop business acumen, a customer orientation, and an awareness of the competition to be able to link business strategy to HR polices and practices’ (Stone, 1998)

SUMMARY & CONCLUSION Global Influence Internal/External Forces New Ways of doing Business Changes saw evolution of functions of HR To keep abreast with changes, Strategic HRM is imperative

SUMMARY & CONCLUSION HR practitioner’s as strategic partners in the business Strategy, Culture, and Leadership are key strategic issues Corporate Goals/Objectives are accomplished.

CONCLUSION ‘Change activism is about taking control at personal level; Change activism turns up the volume on things you care about; Change activism also has business benefits; Our species and our planets need change activism’ (Carmel McConnell (2012)