Ashish
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The document discusses several challenges facing the HR function, including globalization, supporting business competitiveness through the value chain, balancing profitability and growth while controlling costs, developing future capabilities, and leading organizational transformation. It argues that HR must focus on delivering measurable business results rather than just employee satisfaction. Several myths about HR like it only dealing with soft skills are debunked, and the realities of HR needing to increase competitiveness and link practices to financial performance are presented. The premise of the HR value proposition is defined as producing positive outcomes for key stakeholders. Finally, the document discusses how HR can measure its value in terms that managers understand by focusing on both cost measurement and value creation.
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- 1. • MYTHS VS REALITIES IN HR FUNCTION • HR VALUE PROPOSITION ASHISH KUMAR MBA(IB) HR VALUES
- 2. CHALLENGE ONE : GLOBALIZATION • HR will need to treat models and processes for attaining global agility, effectiveness and competitiveness. CHALLENGE TWO : VALUE CHAIN FOR BUSINESS COMPETITIVENESS • Competitiveness requires faster customer responsiveness – innovation, faster decisions, leading an industry in price or value , effectively linking with suppliers and vendors to build a value chain for customers. • To support value chain argument, research indicates that employee attitude correlates highly with customer attitude.
- 3. CHALLENGE THREE : PROFITABILITY THROUGH COST & GROWTH • How can the organization create a commitment to rapid growth and the culture that supports it while simultaneously controlling cost. • What are the HR implications of entering new businesses, of leveraging core technologies that lead into unfamiliar businesses.
- 4. CHALLENGE FOUR : CAPABILITY FOCUSED HR professionals need to constantly seek the capabilities necessary for success and routinely ask the following questions: • What capabilities currently exists and what will be required in the future. • How can capabilities be aligned with business strategies? • How can HR practices be designed to create the needed capabilities.
- 5. CHALLENGE FIVE : TRANSFORMATION • Transformation changes the fundamental image of the business as seen by customers. • Managers and HR professionals need to focus on transformation to create fundamental and enduring change.
- 6. IMPLICATIONS OF BUSINESS CHALLENGES FOR HR AS A PROFESSION • As champions of competitiveness, HR professionals must focus more on the deliverables of their work rather than doing their work better. • They must learn to measure results in terms of business competitiveness rather than employee comfort and to lead cultural transformation. • The HR function has been plagued by myths. It is time these myths are overcome.
- 7. MYTHS V/S NEW REALITIES IN HR FUNCTION • People get into HR because they like people. • Anyone can do HR. • HR deals with the soft side and therefore cannot be measured and linked to Business performance. • HR professionals must create the practices that make employees more competitive, not more comfortable. • HR processes & systems are based on proper theory & research which needs to be mastered. • The impact of HR practices on business can and must be measured. HR professionals must learn how to translate their work into financial performance.
- 8. MYTHS V/S NEW REALITIES IN HR FUNCTION • HR focuses on costs, which must be controlled. • HR job is to be the policy police and the health and happiness patrol. • HR professionals should learn to add value and not reduce cost. • HR practices do not exist to make employees just happy but to make employees committed & competent.
- 9. THE PREMISE OF HR VALUE • HR value proposition means that HR practices and professionals are able to produce positive outcomes for key stakeholders-employees, line managers, customers & investors. • When others receive value from HR work, HR will be credible, respected & influential. • Attempts at HR effectiveness without defining value will not be desirable.
- 10. THE PREMISE OF THE HR VALUE PROPOSITION • Influence with impact occurs when HR professionals start with the beliefs and goals of the receivers. • Who are the key stakeholders I must serve? • What are the goals & values of the receiving stakeholders? • What is important to them? • What exactly do they want? • When these requirements are fully understood, then the HR professional can show an investment in an HR practice that will help the stakeholders gain value.
- 11. HOW DO WE MEASURE THE VALUE OF HR SERVICES? • Two most common questions are raised by HR practitioners: • How can we measure the value of what we do in HR in terms that line and General Managers will understand and respect. • How can HR metrics be incorporated in organization's measures of business performance. • To demonstrate its strategic contribution to senior managers, HR needs a measurement system that focuses on two dimensions. • Cost measurement • Value creation
- 12. A SIMPLE ILLUSTRATION OF VALUE CREATION ____________________________________________ _____ FINANCIAL _________________________________________________ CUSTOMER _________________________________________________ INTERNAL/BUSINESS PROCESS _________________________________________________ LEARNING & GROWTH Return of Capital Employed Customer Loyalty On-time Delivery Process Quality Process Cycle Time Employee Skills
- 13. THANK YOU