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 HRMHR 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

Business Strategy

Strategic HRM

HR Policies & Practices

HR Competencies and Behavior

HR Profession

als

HR Dash board

NEW HRM CHALLENGES1) 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 ManagementSuccession PlanningLeadership DevelopmentSystems 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 CHALLENGES2. Manage Workplace to gain People Advantage

Key questions to be asked: Employees Value Proposition Value- Cost & Experience Rareness High Performance Standards

R&D

EmpowermentIndividuality- My SpaceFreedom- Fun n JoyChallenging assignmentExposure Work Life BalanceLearning & 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

Employee Engagemen

t

Strive – Extra Effort for

Business Success

Say- Positive Things

Stay- Likelihood of continuing (Watch

for Boomerang Talent)

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 MercerRefer 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 CHALLENGES3. Leadership Development/BuildingLeaders 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 CHALLENGES5. 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 CONTEXT   Pachyderm like quantities – Elephant

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.

Thank You