plenary session iii: enhancing organisations fidic … purchasing marketing information system...
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Plenary Session III: Enhancing Organisations
Yvette Ramos
Enhancing Organisations witha strategic human resource approach
Wednesday, 05 October 2011, 08.45 – 10.15
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Enhancing Organisations witha strategic human resource approach
By Yvette Ramos, Ms. Sc.Eng., MBAPresident section Geneva www.swissegineering.ch
[email protected] oct. 2011
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2011 Business models must evolve, and are already evolving...
From commonly used economic model based on financial data towards models giving more space and identity to intellectual and human capital;
Investing in human resources is a new key element to increase organizational performance. These changes have important impact in terms of competitive strategies, required competencies and increasing demanded for added value;
Human Resources stakeholders play an essential role in managing competencies, they contribute in transforming human capital into a success factor, through alignment of strategic objectives of the organisation.
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Stepping-back : What is strategic planning and management after all?
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MISSION
VISION
OBJECTIVES
PROJECTS
MEASURES
When talkingabout strategicHuman Resource Management and planning :
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Resolve key questions : the roles of Human Resource management leaders
How to anticipate evolutions of my organisation and itsbusinesses, through a generalized strategic planning approach ?
How to fill the gap between required competencies and those we have in the organisation : recruitment, diversitymanagement, mobility, entrepreneurship development, ..?
How to make the compensation and benefits system evolvein order to motivate and retain the human capital whilemaintaining equity policy, and what are the financialimpacts ?
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Assessing and increasing the performance of the organization through :
1- Its capacity in measuring the strategic value of human capital
2- The alignment of people, processes and technology around common objectives
3- The proactive planning of human resources needs.
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1- Its capacity in measuring the strategic value of human capital
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2011 Before the digital age… management at the Age of Stone
• At the XIIIth Century, management was coming from the word « mesnage » and « mesnager » : the art of managing household affairs, driving his property, his fortune and his servants wisely
• Over time, "the idea of managing relationships with others thoughtful and balanced"
• Economics, from the Greek (oikos - nomos): "the laws of household management"
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Before and during the industrial revolution :Yesterday’ challenges• The function «Personnel» did not exist, the supervisor did recruit the
employee that he needed by himself;• Payroll and accounting were managed by the boss;• A high number of human and social issues emerged ; • Start of the «Personnel» role : adapting the employees to the posts;• Managing labor like a «adaptable variable» : minimum cost, a production
factor, a «goods» which has to comply to the law and economic exchange process of capitalism
• The HR activities were limited to recruitment, payroll, conflictmanagement… and optimisation of production
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At the beginning of the XXe century : Scientific progress contribute to HR progress• Concept of the Scientific Organisation of Work (OST), Taylor, the reference
in terms of organisation• Division of work : rationalisation and control at the heart of the Taylorism
which «deshumanizes» work; human = labor• The organisations are destabilized : conflicts, strikes, absenteism• Evolution of the HR fonction under the influence of social movements,
scientific progress, and economic evolutions• The «human and social dimension» appears and develops slowly within the
organisation;• The «human relations» school, appears bringing sociology into the scope of
work
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2011 Between 1930 and 1950
• Reactions against Taylorism, importance given to work climate and social relations in the company and its effects on productivity and efficiency
• Research Work of Elton Mayo, USA, Western Electric, to humanize the work relations
• Development of the Personne function : hygiene, security, information, social relations, training….
• Emergence and important development of Labor Union : towards a more human and social role of management
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Between 1960 and 1980 :Technologies helped the evolution of HR
• The Human Resources role progresses dramatically under the influence of a high number of factors such as Labor laws (Ministry of Work, Health, ILO…), usage of IT tools to manage payroll, etc.
• It is a context of modernisation, strong competitivity and sometimes major restructuring
• Importance to manage the image of the organisation, strongly linked to performance of the stock market
• The globalisation of economy, the increased competition, the necessity to create more qualified jobs implies the search for the best candidates, atinternational level, and their long-life training and loyalty
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2011 Nowadays…a Key Question
« Managers work hard to make sure that they are doing things right, they hardly have time to make sure that they are doing the right things »
Stephen R. Covey
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Source : www.observatoire-immateriel.com
Direction R&DScientifiqueTechnique Direction
Commerciale
Direction desRessources Humaines
Direction de L’OrganisationDirection
SystèmesD’Information
DirectionMarketing
Direction desachats
DirectionFinancière
ActifsImmatérielsIntangible
assetsHuman
Resouces
Sales
R&DScientic
Finance
Purchasing
Marketing Information
System
Organisa-tion
Lets step back…definitions?
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2011 Intangible assets represent the hidden face of value…
Source : Fustec et Marois, 2006Goodwill Management
AssetsCurrent assets
CapitalDebt
Visible assets
Invisible assetsGoodwill
Client capitalHuman capitalPartners capital
Knowledge capitalOrganisational capitalInformations system
capital….
SolidLiquid
Gas
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2011 Intangible assets from Human Capital : a few examples
Technological capital consists of patented inventions born in the brains of R&D teams (= human capital R&D)Innovation to find a new product – a dominant design, integrated services, cheap and easy problem solving solutions, transverse applications, process or method in communication and organisation...Innovation to create a brand, a “coup de coeur”, to better differentiateInnovation to protect better your organisation from competitorsInnovation to better work in community, to project your organisation in the long-term, to have a global view of synergies in the industryInnovation to better capitalize on the expertise, skill, creativity, customer satisfaction and employees, valuation of the name, image, reputation, accomplishments, etc.. to enhance the impact and influence within our global village community
>> Human capital at the heart of value creation
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2- the alignment of people, processes and technology around
common objectives
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the alignment of people, processes and technology around common objectives
In the industrial economy, strategy is Top-Bottom approach, ie elaborated exclusively by Top managers who then
communicated it to the rest of employees through the hierarchy. Actually employees did not have to understand strategy, but
only to execute tasks requested by the management.
In the information economy, this is not possible anymore.
All employees need to understand the strategy.
Strategy is everyone’s affair.
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2011 What the four HR functions are..** Dave Ulrich « HR Champion », 1997
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When environment evolve quickly:
What will be our activities ?How are our businesses going to evolve ?
Which competencies will we need?
Change leader = implements a competency-based approach
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2011 Administrative warrant : about tools
Mission
■PEOPLE
MeansMethods
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2011 Employee Champion!
Environment is RAPLEX : RAPIDLY + COMPLEX
New economy formula of professional success E= MC2
Efficiency = Motivation x Communication X Competence
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2011 GLOBALISATION OF BUSINESS & HR CHALLENGES
Major env. Change in last 15 yrs – GLOBALISATIONWorld becoming global village & business becoming Global in characterIncreased business opportunities in marketing and production.
NEW CHALLENGES FOR HR MANAGERS:• Domestic firms competing with foreign companies => High level of cost
consciousness and competitive pressures• Multinational companies require employees who can adopt to different
cultures, customs, social practices, values, economic and political systems, management approaches and who can work with other employees with different backgrounds.
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2011 NEW CHALLENGES FOR HR MANAGERS (contd)
• To ensure that employees with requisite knowledge ,skills, abilities and cultural adaptability are available to be successful in global assignments.
• Focusing increasingly on employee productivity• Developing diverse training programmes.• Developing HR initiatives directed to workforce diversity.• Identifying and training expatriate managers to develop them into Global
Managers for overseas assignments.• Developing equitable pay plans for individuals working in different countries.• Managing a Global workforce, focus on cost, differentiation & quality to
enhance competitiveness and ensuring legal compliance while conducting business abroad.
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CHALLENGES OF LEADING AN ORGANISATION (STRATEGIC LEADERSHIP ) • Influence the behavior of subordinates so that they work willingly &
enthusiastically towards attainment of organizational goals.• Situational leadership as per contingency of situation.• Tasks involved include : Anticipating, Envisioning, Empowering, Direction.
Growth & development, in addition to planning, organizing, staffing. directing, coordinating & controlling skills
• Determining strategic direction : Core ideology & future shape• Effectively managing organization resource portfolio ( Financial capital,
organization capital, Social capital & Human capital )
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CHALLENGES OF LEADING AN ORGANISATION (STRATEGIC LEADERSHIP) contd• Sustaining an effective organization culture• Charisma, vision , Drive, Desire to lead, Honesty & Integrity, Self –
confidence, intelligence, Job related knowledge , Energetic, assertive & sociable
• To lead from front and be a role -model.• Sustaining a definite direction, growth, development & competitive
advantage for realizing its vision, goals & objectives in a global competitive environment.
• Encouraging participation, recognition and maintaining high morale of employees at all times.
• Suitable reward & punishment system for Ethical/Unethical behavior.
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2011 Managing Global Workforce: Challenges
• Deployment in getting right skills to right place in organization, regardless of geographic location
• Knowledge and innovation dissemination and transfer, where all business units concurrently receive and provide information
• Talent identification and development of those employees with abilities and skills to function effectively in global organization
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2011 Conclusion about Changes in Human Resources ?
Headcount: “DO More with less”Reduce costs: People cost Money“Real time“: Need for information 24/7Empowerment: Employee self service, what competition
offers…Business decisions and communications: Management
needs the right information to make the right business decisions
Data integrity: Your organization’s future depends on it
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« It is only recently that the new technologies enable an human resource management which is anticipatory, flexible, qualitative and personalised for which the actors are not the HRM but the whole hierarchy, if not each employee »
JM. Peretti
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3- The proactive planning of human resources needs
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VISION
AN
D STR
ATEGY O
F THE O
RG
AN
IZATION
NEW COMERS INTEGRATIONRECRUITING
TRAINING
INTERNAL MOBILITY
INTERNATIONAL MOBILITY
PERSONNEL DEVELOPMENT
PAY ROLLPERSONNEL ADMINISTRATION
COMPS and BENS
HR PROJECTS MANAGEMENT
LEADING THE CHANGE
INC
RE
AS
ING
PE
RFO
RM
AN
CE
HRPLANNING
TOOLSPERFORMANCE
EVALUATION
Human Resource planning…A model
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2011 Getting the Right People on the Bus
• Hiring and keeping quality employees is one of the most urgent concerns for today’s organizations
• Talent management is a top priority for managers• Human Resources is the design and application of
formal systems to ensure the effective and efficient use of human talent
• Attracting, developing, and maintaining an effective workforce
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The Role and Value of Human Capital Investments
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2011 References
• John P. Kotter (1996) Leading Change, Harvard Business School Press. • Ulrich D., (2007), Developing a leadership strategy, (2004) The Workforce Balanced Scorecard , (1997) HR Champion• JL Mutte (2006), Les indicateurs de capital humain,SAS Forum online• Peretti JM (2006), Ressources Humaines, éd.Vuibert•Robert W. Bradford and J. Peter Duncan with Brian Tarcy,(2000) Simplified Strategic Planning: A No-Nonsense Guide for Busy People Who Want Results Fast!, Chandler House Press•M.A. Huselind, B. E. Becker, R.W. Beatty (2005) The Workforce Scorcard : managing human capital to execute strategy, Harvard Business School Publishing Corp. Thank you