term project - case study.docx

8/18/2019 TERM PROJECT - Case Study.docx

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TERM REPORT [OPTION 2-CASE STUDY]

Course: Organizationa !e"a#iour $MAN%&2-D'

Se(ester: )a 2&*+

Su,(itte to: Pro.essor !a,er /"airi

Su,(itte ,0: S"a"zaa A0u,

ID: *%1&

De3e(,er +4 2&*+


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CREATING PEOPLE ADVANTAGE 2014, BY BOSTON CONSULTING

GROUP

INTRODUCTION

5R e6art(ent4 in an0 ,usiness organization regaress o. size or

,usiness nature4 "as t"e 6otentia to 6a0 a 7e0 roe in t"e strategi3

e3isions t"at are ta7en at organizationa e#e an t"at a8e3t t"e o#era

3o(6an09s grot" an 6er.or(an3e in t"e ong run; 5oe#er4 not a 5R

e6art(ents re3ognize t"eir strategi3 6osition an t"ere.ore t"e0 ten to

6er.or( (eio3re .un3tions t"at in3ue a0-to-a0 5R a3ti#ities "i3"4

at"oug" "e6 in t"e nor(a .un3tioning o. t"e


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or#ani&ations meet their $hallen#es and a$t as strate#i$ partners! 'he $ase stud,

reatin# eople *dvanta#e +2014+201 (-th of the series) also aims at hi#hli#htin#

those HR fun$tions and areas that $an help fulfil this mandate % providin# HR

people a $lear view of what $an %e done to enhan$e the most $ru$ial HR $apa%ilities

that have their dramati$ impa$t not .ust within the HR department %ut, more

importantl, a$ross various other departments within the or#ani&ation! 'he report

explores trends in people mana#ement % fo$usin# on ten HR areas whi$h are

deemed essential % experts, analsts and resear$hers around the #lo%e, and then

su%dividin# those ten %road HR topi$s into 2/ su%topi$s for a more $omprehensive

analsis!

Ea$h su%topi$ has %een sele$ted eepin# in view of the fa$t that it has $lose relevan$e

with re#ard to its future importan$e for $ompanies and how $apa%le the are with

re#ard to these su%topi$s in their $urrent situations! 'he more important $ertain HR

topi$ is and the less $apa%le the HR department of a firm around that spe$ifi$ area,

the more ur#ent it %e$omes for the firm to %rin# the issue to the ta%le and resolve it!

*s a matter of fa$t, or#ani&ations that are ex$ellin# in their performan$e are the ones

who dont en$ounter the need of this ur#ent a$tion with re#ard to an of the 2/ HR

su%topi$s mentioned in the $ase stud! 'he reason %ein# the have alread %een

worin# on these areas in the past and the out$ome has %een uite fulfillin#! 'hese

2/ su%topi$s around whi$h the entire $ase stud is %uilt are listed in the Exhi%it 3

%elow! 1

* Data is ta7en .ro( t"e 3ase stu04 Creating Peo6e A#antage4 ,0 !ostonConsuting =rou6;


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'he resear$h $ondu$ted % "oston onsultin# roup (") is $omprised of 30/

respondents from 101 $ountries5 these parti$ipants have %een $arefull $hosen so as

to ensure the represent or#ani&ations operatin# a$ross diverse industries!

6urthermore, 74 HR and non+HR Exe$utives in leadin# or#ani&ations around the

#lo%e have %een interviewed! 'he data thus taen has %een $riti$all anal&ed and the

followin# findin#s are produ$ed8

HR $apa%ilities $orrelate with e$onomi$ performan$e8 9n or#ani&ation where

emphasis is #iven on the $ore HR topi$s su$h as (oti#ation4 eaers"i64

tea(or74 stress (anage(ent an organizationa 3uture4 taent

(anage(ent4 engage(ent4 ,e"a#iour et34 it "as ,een o,ser#e t"at t"e

e3ono(i3 6er.or(an3e i. t"ese organizations ent (ani.o 3o(6are tot"e ones t"at o not "a#e strong 3a6a,iit0 in t"e 5R to6i3s;

*nalti$s and e performan$e indi$ators #ive HR a seat at the ta%le8 'hrou#h proper

re$ord and tra$in# sstem, the HR department $an pla a role %eond their

$onventional fun$tions and help or#ani&ational mana#ers set #oals and o%.e$tives

that refle$t the $ore findin#s and data that have %een maintained throu#h these :9s,

*nalti$s and steerin# tools! 'hese various tra$in# tools help the HR people monitor


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and uantif worfor$e performan$e and thus o%tain a e role in the strate#i$

dis$ussion of the firms!

:9s should lin to strate#i$ a$tions8 ;se of :e erforman$e 9ndi$ators and other

performan$e steerin# tools should %e su$h that the help the mana#er mae sound

de$isions when it $omes to tain# strate#i$ a$tions! 'he more effe$tivel these tools

are lined to the strate#i$ a$tions or#ani&ations mae, the more important the role of

HR will %e$ome in the strate#i$ matters!

lo%all, the leadership and talent mana#ement topi$s are the ones in the most

ur#ent need of a$tion! 'he surve of over 300 respondents a$ross 101 $ountries

showed that leadership and talent mana#ement topi$s are the ones with most ur#ent

need of a$tion as there has %een least amount of wor done around these $ru$ial

areas while their importan$e has #ained momentum to a #reat extent!

HR department need to %e more $onsistent in their investment de$isions! HR topi$s

with most ur#ent need of a$tion have to %e #iven priorit in terms investin#, time,

efforts and mone! 6urthermore, the efforts put on these $ru$ial areas need to %e

$onsistent so as to ensure that the desired out$ome is #ained and worfor$e

performan$e is enhan$ed a$ross all the departments!

HR needs to listen more to internal $lients8 'his helps them loo at the pro%lem froma fresh perspe$tive!


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9n ideal s$enario, however, the #reat HR fun$tions should %e a%le to serve the

followin# three purposes8 2

onne$t8 'he ensure to sta hands on and team up with all the staeholders inside

and outside of the or#ani&ation with the aim to improve performan$e and a$hieve

or#anisational #oals and o%.e$tives = not .ust the #oals of HR department!

rioriti&e8 what is most important is #iven due attention! HR topi$s that dire$tl

influen$e the firms produ$tivit and demand ur#ent a$tion are #iven priorit when it

$omes to investin# time, mone and efforts!

9mpa$t8 HR fa$tions $reate an impa$t % usin# e performan$e indi$ator and other

su$h performan$e monitorin# tools to help the or#ani&ation a$hieve its strate#i$

#oals and o%.e$tives!

ANA@YSIS

'he >a.or 9ssue8

*$ross the world there is a variation found in how HR departments of various

or#ani&ations are a%le to pla a strate#i$ role to $reate a real impa$t on the e$onomi$

performan$es of those or#ani&ations!


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$apa%ilities are uestiona%le when it $omes to the e HR fun$tions that $ould $reate

a real impa$t on how the emploees perform to a$hieve or#ani&ational #oals and

o%.e$tives!

The Minor Issues:

• HR $apa%ilities with most ur#ent need of a$tion are not %ein# fo$used on!

(Leadership and talent mana#ement show the #reatest ur#en$)

• HR respondents rate their $apa%ilities hi#her than non+HR respondents do!

• rioriti&ation of HR topi$ in non+performin# or#ani&ation is an issue! *reas

that need ur#ent attention need to %e attempted ?invested in first!

• ost of the $hallen#es that HR mana#ers fa$e around the world toda are

more $ontextual rather than universal, thus reuirin# $ontextual

understandin# and approa$hes!

The Major Objective:

'o help HR departments #ain a strate#i$ role within or#ani&ations % worin# on e

areas that $reate impa$t at overall or#ani&ational level!

'o help a$hieve this #oal, 10 main HR topi$s have %een %roen out into 2/ su%+

topi$s, and then the relative importan$e of ea$h topi$ is explained and demonstrated

throu#h resear$h findin#s, mini $ases and expert analses! Ea$h of the #iven fun$tion

is fo$used around the idea of how to empower the HR department in a wa it $ould

pla more strate#i$ role in the overall #oal settin#, plannin#, or#ani&in# and de$ision

main# pro$ess of an or#ani&ation!

Minor Objectives:

'o hi#hli#ht the fa$t that HR department, % havin# a stron# relationship with other

departmental units within or#ani&ation, $an re$o#ni&e the most demandin# needs

and strate#i$ o%.e$tives of the or#ani&ation!


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@emonstrate as to wh emphasi&in# on $ertain HR areas (that ma var from one

firm to the other) is important from a strate#i$ point! HR topi$s that dire$tl

influen$e the firms produ$tivit and demand ur#ent a$tion should %e #iven due

$onsideration over less important HR matters! AHi#h performers ali#n HR

investment!”3

Hi#hli#ht the importan$e of deploin# various performan$es tra$in# tool where%

HR departments $an $reate real impa$t and mae their parti$ipation inevita%le in the

strate#i$ de$isions of an or#ani&ation!

Exhi%it and demonstrate the fa$t that or#ani&ations with ro%ust finan$ial

performan$e are usuall the ones that ex$el in HR $apa%ilities when $ompared to the

non+performin# or#ani&ations!

'o hi#hli#ht what spe$ifi$ HR topi$s are deemed hi#hl important that $ompanies

operatin# a$ross diverse industries and #eo#raphi$ lo$ations feel the need to invest

their time and resour$es in (in the nearest future)!

SUMMAY

The entire case can be broken down into the following five chapters:

1! :e HR topi$s 2! 'he lin %etween finan$ial performan$e and HR

$apa%ilities 3! HRs %usiness impa$t 4! Re#ional and industr $apa%ilities !

Bhat sets #reat HR fun$tions apartC

% E"i,it 4 Creating Peo6e A#antage Case Stu0 $,0 !C='


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Key HR topics:

'he $ase stud in$ludes 10 %road HR topi$s whi$h have further %een divided into 2/

su%topi$s, as exhi%ited %elow8


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Df all the 2/ topi$s the areas that were $onsidered hi#hl important invaria%l a$ross

all industries and re#ions are leadership, talent mana#ement, %ehaviour and

$ulture!

The "ink between #inancial $erfor%ance and HR &apabilities:

'he ma.or purpose of the $ase stud is to hi#hli#ht the lin and $orrelation %etween

HR $apa%ilities and finan$ial performan$es of or#ani&ations! 6or this purpose the

avera#e operatin# mar#in and av#! Revenue $han#es of top 100 and %ottom 100

$ompanies have %een anal&ed for the last two ears (2013 and 2014) as an indi$ator

of their e$onomi$ performan$e! ompanies $hosen for analsis purposes hadminimum 0 emploees to ualif the analsis!

9t was thus found that those $ompanies whi$h exhi%it hi#her $apa%ilit people

mana#ement have relativel stron# e$onomi$ performan$e! *s well as, amon# hi#h

performin# or#ani&ations no ur#ent need of a$tion was o%serve in re#ard to an of

the 2/ HR su%topi$s!

Dn the other hand, $ompanies with poor e$onomi$ performan$es showed ur#ent

need for a$tion a$ross almost all the 2/ HR+oreover, there was a $lear

differen$e found %etween how the low+performin# and hi#h+performin#

or#ani&ations essentiall prioriti&e various HR fun$tions?su%topi$s in terms of their

future importan$e! 'opi$s lie HR Borfor$e analti$s, HR internationali&ation,

HR eople


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'his $hapter fo$uses on the fa$tors that are important for HR departments to %e a%le

to pla a strate#i$ role and have a seat at the ta%le for strate#i$ dis$ussions! HR

leaders need to $rstalli&e the %usiness impa$t of HR and esta%lish in uantitative

terms all the areas in whi$h the $ompans strate#i$ de$isions are supported % HR!

Dn$e the are su$$essful in esta%lishin# and mana#in# a well+rounded analti$al

sstem and prove themselves to %e more o%.e$tive and data driven, then it is liel

the HR departments parti$ipation in the strate#i$ dis$ussion will not %e overlooed!

'he $ase resear$h has found that HR departments whi$h are more data driven and

$ould eep tra$ of areas lie emploee produ$tivit and personnel $ost et$ are liel

to have a #reater strate#i$ role in the or#ani&ation $ompared to the ones that fail to

uantitativel esta%lish the areas whi$h are deemed important from the standpointof strate#i$ de$ision! Fet, ma.orit of the respondents answered the even if the use

:9s and other performan$e steerin# tools, its onl o$$asional! 'he usuall dont

feel the need of main# the sstem data driven, maintain analti$s, and mae use of

:9s and performan$e steerin# tools (%e$ause the dont feel the need to parti$ipate

in strate#i$ dis$ussion of the or#ani&ation)! Exhi%it G summari&es the resear$h

findin# as des$ri%ed in the $ase (reatin# eople *dvanta#e % ", 2013+2014)8


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Regional and Industry &apabilities

;nder this $hapter, usin# ur#en$ metri$, the 2/ HR topi$s are narrowed down to a

$ertain few topi$s that have the #reatest priorit for all $ompanies a$ross all re#ions!

'hese are those HR topi$s that have invaria%l shown the #reatest ur#en$ for a$tion!

*s per the re#ional view, two HR topi$s showin# the #reatest ur#en$ for a$tion

a$ross most industries and #eo#raphi$ re#ions are LE*@ER**E>'! Leadership is % far the onl topi$ with the utmost need for a$tion

followed % talent mana#ement! *side from these two areas, however, variation has

%een o%served as to the level of importan$e and ur#en$ or#ani&ations feel pertainin#

to the other HR topi$s! 6or instan$e, emploee en#a#ement, %ehaviour $ulture are

the topi$s that are #iven more priorit in ;< than in an other re#ions! 9n "ra&il the

fo$us seems to %e more on talent mana#ement $onsiderin# the fa$t that there is

shorta#e of ualified human resour$es for or#ani&ations! *s a results, reward and

re$o#nition turn out to %e the HR topi$s that were raned as more ur#ent in "ra&il


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than in most of the other re#ions! )PMA 6ro6rietar0 e, sur#e0 an ana0sis


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"ased on the analsis of resear$h data and "s own experien$e, its o%served that

#reat HR fun$tions are $riti$al differentiatin# fa$tor for or#ani&ations! 9n hi#h+

performin# $ompanies man#ers ex$el in all HR fun$tions that deemed most

important and there is lesser ur#en$ of a$tion with re#ard to an HR su%topi$ that

matters!

*ll in all, the followin# three $hara$teristi$s des$ri%e #reat HR fun$tions that help

or#ani&ations stand out from the $rowed!

onne$t8 $ommuni$ation is e and the element that sets #reat HR apart! 9n

or#ani&ation where internal $lients are ept in the loop and $ommuni$ation isstreamlined, there remains less $onfusion as what the needs and expe$tations of the

staff is, what $hallen#es do the fa$e, how their performan$e $an %e enhan$ed, what

are the effe$tive wa HR mana#ers $an provide the worfor$e timel feed%a$ et$!

'his is $alled #ettin# the %asi$s ri#ht! HR department needs to mae sure that that

the HR strate#ies dont fun$tion stand alon#, rather the are ali#ned and $losel

lined to the overall or#ani&ations %usiness strate#!

$rioriti.e: Bhat is most important is %e #iven due attention! HR topi$s that dire$tl

influen$e the firms produ$tivit and demand ur#ent a$tion are #iven priorit when it

$omes to investin# time, mone and efforts!

I%pact: reat HR fa$tions $reate an impa$t % usin# e performan$e indi$ator and

other su$h performan$e monitorin# tools to help the or#ani&ation a$hieve its

strate#i$ #oals and o%.e$tives!

CASE MET5ODO@O=Y

'he resear$h $ondu$ted % "oston onsultin# roup (") is $omprised of 30/

respondents from 101 $ountries5 these parti$ipants have %een $arefull $hosen so as

to ensure the represent or#ani&ations operatin# a$ross diverse industries! *%out

-3I of the parti$ipants were from HR field su$h as HR %usiness partners, #eneralists

and mem%er of a $entre of ex$ellen$e et$! 6urthermore, 74 HR and non+HR


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Exe$utives in leadin# or#ani&ations around the #lo%e have %een interviewed! 'en

%road HR areas has %een $hosen, whi$h were then divided into 2/ su%topi$s for

effe$tive analsis purposes! *lso, in >ar$h 2014, an online surve was $ondu$ted that

lasted for 4 months! 'he aim of this surve was to have respondents rate ea$h

su%topi$ usin# a six+point s$ale on future importan$e, their or#ani&ations $urrent

$apa%ilities pertainin# to the su%topi$s and the de#ree of attention paid or efforts

invested in the su%topi$s in terms of time, human resour$es and mone durin# the

past three ears!

APP@ICATION O) T5E RESEARC5 MET5OD ON Io!M

UNIFERSITY

'he method used % "oston onsultin# roup $an prove to %e hi#hl effe$tive if a

resear$h of similar nature is $ondu$ted on 9o"> ;niversit! 'he universit has full+

fled#ed HR department, %ut its ver liel that there will %e possi%le areas that need

to %e fixed ? wored on to help mae the HR department stron# and pla an effe$tive

role in the overall strate# %uildin# for the institution! * resear$h $an %e $arried out

% identifin# $ertain areas pertainin# to the HR fun$tions that are relevant from the

point of a$ademia as well as #eneral %usiness perspe$tive, then $olle$tin# resear$h

data from a diverse #enre of parti$ipants, %oth from within the HR department and

outside of it!


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(that has a personal use for me)! "esides developin# a stron# understandin# of the

$ase in point, other %enefits that 9 $annot overloo are the ones that $an $ome in ver

hand if 9 ever needed to $ondu$t an independent resear$h in the $ourse of m

a$ademi$ and professional $areer! reparation of resear$h, sele$tion of interest

#roup, $olle$tion and or#ani&ation of data, its interpretation and how $on$lusions are

made %ased on resear$h findin#s are some of e areas that 9 wasnt ver mu$h

familiar with, and in the pro$ess of anal&in# this $ase stud 9 was a%le to wal

throu#h the entire resear$h pro$ess in m own #radual pa$e! 'he whole pro.e$t, if 9

were to mar it in one eword, was Ainvalua%le”J

Reco%%endations

#ollowing additional reco%%endations can be %ade to help the HR

depart%ent play a strategic role and contribute to the organi.ations

success:

1! #eedback Method: 6eed%a$ is an essential element and a tool the HR

department $an use to help drive the wor for$e in the dire$tion whi$h ensures

optimal ield and produ$tivit! 6eed%a$ should %e $onsistent in order for it to

o%tain a strate#i$ value!2! Industry (est $ractices: >ost of times wh some plaers out there in the

maret are %etter off and some are not is %e$ause of the %est industr pra$ti$es

the follow! 9f ou thin $ertain or#ani&ation in our industr verti$al is

$onstantl showin# extraordinar performan$e, then ou need to mae it our

%en$h marJ 'he HR department $an learn from the %est pra$ti$es that are

prevalent in those or#ani&ations and repli$ate them in their own or#ani&ation

to help a$hieve the same level of su$$ess!3! ,c/uisition of +reat HR *taff and Managers: 'he are ne$essar to

%rin# in $onstant flow of $reative ideas that transform or#ani&ations!4! Inclusion of creativity and innovation as a %ajor factor in

leadership building plan: Rewardin# the innovative minds and

appre$iatin# $reative ideas $ontri%uted % emploees at all level % providin#

tain# different measure su$h as or#ani&in# annual or % annual $reativit

awards for emploees! et$!


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! One HR depart%ent for all stakeholders: 'he HR fun$tions should #o

%eond $onventional role and help or#ani&ations navi#ate throu#h the $riti$al

$han#in# %usiness phases % plain# a multi+fa$eted role that $ould help meet

the needs of %oth the emploer and emploees of an or#ani&ation!

RE)ERENCES

E.ron4 @; $2&*'; >"at Organizations Nee No )ro( 5u(an Resour3es; Forbes

Magzine 4 "tt6:GG;.or,es;3o(GsitesGouise.ronG2&*G&G*G"at-organizations-

nee-no-.ro(-"u(an-resour3esG;

=rou64 !; C; $2&*%-2&*'; Creating People Advantage .

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