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Evolution of HR function

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Araktim Saikia
Araktim Saikia

The document discusses the evolution of the human resources (HR) function over time from the early 1900s to the present. It covers the transition from welfare officers focused on employee care, to personnel managers during World Wars I and II focused on recruitment and training, to industrial relations specialists from 1945-1979 negotiating with unions, to compliance officers from 1980-2000 ensuring policy adherence, to today's strategic HR focused on improving business efficiency and acting as a strategic partner. The HR role has shifted from administrative to more transformational, focusing on areas like organizational development, performance management, and cultural change to help organizations achieve their objectives.

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Evolution of HRM HISTORY & TRANSITION
Brief history of HR Function The early days: Welfare Officer The World Wars: Personnel Management 1945 – 1979: Collective Bargain & Industrial Relations 1980 – 2000: Compliance Officer 2001 – Till date: Strategic HR a) Paternalistic role b) Care for injured and sick employees c) Protection of women & children a) State / Trade Union partnership b) Management of absence, training & recruitment c) Productivity improvement a) Trade Union negotiation b) Policy adherence c) Regulation of pay a) Focus on improving efficiency & effectiveness b) Administrator and functional/tec hnical expert c) HR generalist a) Strategic business partner b) Change agent c) Employee champion d) Centre of excellence e) Shared services
The HR Journey ValueImpact/contributiontobusiness Welfare Officer Labor Manager Personnel Management Human Resources Management Strategic HRM i. Administrative focus ii. Compliance iii.Traditional mindset iv.Limited scope of activities v. Specialized function i. Administrative focus with enlarged scope of activities ii. Support function iii.Less reactive, more proactive i. Strategic HR ii. Business Partnering iii.Focus on value added activities iv.Proactive v. Multi disciplinary vi.Multi faceted roles 1890 – 1913 1914 – 1939 1945 – 1979 1980 – 1990 2000 – Till now 2nd Industrial Revolution World Wars Globalization High
The HR Journey – nature of work ValueImpact/contributiontobusiness Employee Welfare Labor Relations Employee Relations Personnel Admin Human Resources High Organizational Effectiveness Continue to evolve Safety & workers compensationWelfare/ Employee Care Labor Union Relations Employee Relations Benefits Compliance Compensation Training & Development Stuffing Survey Action Plan Transactional Work Transformational Work Organizational Development PMS HRIS Culture & Image HRBP Strategic HR Planning COE Shared Services
The changing role of HR The business environment • Globalization • Economic uncertainties • Technology innovation • Profitability through cost and growth • Intensified competition Requires companies to focus on • Increasing value • Organizational capabilities  fast, responsive, cost effective • Creating climate for action • Unique competitive advantage Requires HR to change • Business savvy • Align with strategy • Strong bench strength • Change catalyst • Help business leaders to achieve objectives Reality check – What CEOs want from HR
The role of HR – Ulrich’s Model FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner – Aligning HR & Business Strategy Active role in setting strategic direction Change Agent – Managing Transformation & Change Effecting transformation & change Administrative Expert – Managing The Firm’s HR Infrastructure Process optimization & efficiency Employee Champion – Managing Employee’s Contribution Motivated & competent personnel
The role of HR – Ulrich’s Model (detailed) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees
The role of HR – Ulrich’s Model (impact) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees When NOT done well… creates a lot of issues
The role of HR – Ulrich’s Model (impact) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees When done well… gives the organization a great strategic advantage
HR as Strategic Partner Knowledge requirements •Bring strong technical expertise to the table and an understanding of the organization and its strategy •Develop new skills as needed. Understand the data, the financials, the market Staying focused on issues that matter to the business •What are the issues that matter? •What’s keeping business leaders up at night? •What’s the elephant on the table regarding the future? •What drives the bottom line •Focus on business objectives •Focus on environment Delivering capabilities that make a real difference •Provide organizational capabilities as required by the business objectives: > People > Strategy > Culture Becoming a Strategic Partner
HR as a Change Agent Before Change Prepare for Change During Change Managing Change Post Change Reinforcing Change a) Serves as a catalyst for change b) Helps the organization build a capacity for change c) Plan change process with sponsors d) Ensure project team has necessary skills, training e) Coach sponsors f) Lead by example by doing it first within the HR function a) Facilitate the discussions about the change and its content with all stakeholders b) Coach leaders through the change c) Act as a coach mentor to employees to help them understand change d) Emphasize what is in it for the individual and address concerns e) Strike a balance between business and employees f) Communicate a) Help employees to break from the past and adopt a new culture b) Sustain the momentum c) Internalization of new behavior / ways d) Recognize and celebrate success e) Build on the change
The Change Process
Evolution of HR function

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Evolution of HR function

  • 2. Brief history of HR Function The early days: Welfare Officer The World Wars: Personnel Management 1945 – 1979: Collective Bargain & Industrial Relations 1980 – 2000: Compliance Officer 2001 – Till date: Strategic HR a) Paternalistic role b) Care for injured and sick employees c) Protection of women & children a) State / Trade Union partnership b) Management of absence, training & recruitment c) Productivity improvement a) Trade Union negotiation b) Policy adherence c) Regulation of pay a) Focus on improving efficiency & effectiveness b) Administrator and functional/tec hnical expert c) HR generalist a) Strategic business partner b) Change agent c) Employee champion d) Centre of excellence e) Shared services
  • 3. The HR Journey ValueImpact/contributiontobusiness Welfare Officer Labor Manager Personnel Management Human Resources Management Strategic HRM i. Administrative focus ii. Compliance iii.Traditional mindset iv.Limited scope of activities v. Specialized function i. Administrative focus with enlarged scope of activities ii. Support function iii.Less reactive, more proactive i. Strategic HR ii. Business Partnering iii.Focus on value added activities iv.Proactive v. Multi disciplinary vi.Multi faceted roles 1890 – 1913 1914 – 1939 1945 – 1979 1980 – 1990 2000 – Till now 2nd Industrial Revolution World Wars Globalization High
  • 4. The HR Journey – nature of work ValueImpact/contributiontobusiness Employee Welfare Labor Relations Employee Relations Personnel Admin Human Resources High Organizational Effectiveness Continue to evolve Safety & workers compensationWelfare/ Employee Care Labor Union Relations Employee Relations Benefits Compliance Compensation Training & Development Stuffing Survey Action Plan Transactional Work Transformational Work Organizational Development PMS HRIS Culture & Image HRBP Strategic HR Planning COE Shared Services
  • 5. The changing role of HR The business environment • Globalization • Economic uncertainties • Technology innovation • Profitability through cost and growth • Intensified competition Requires companies to focus on • Increasing value • Organizational capabilities  fast, responsive, cost effective • Creating climate for action • Unique competitive advantage Requires HR to change • Business savvy • Align with strategy • Strong bench strength • Change catalyst • Help business leaders to achieve objectives Reality check – What CEOs want from HR
  • 6. The role of HR – Ulrich’s Model FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner – Aligning HR & Business Strategy Active role in setting strategic direction Change Agent – Managing Transformation & Change Effecting transformation & change Administrative Expert – Managing The Firm’s HR Infrastructure Process optimization & efficiency Employee Champion – Managing Employee’s Contribution Motivated & competent personnel
  • 7. The role of HR – Ulrich’s Model (detailed) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees
  • 8. The role of HR – Ulrich’s Model (impact) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees When NOT done well… creates a lot of issues
  • 9. The role of HR – Ulrich’s Model (impact) FUTURISTIC FOCUS PROCESSES P E O P L E DAY TO DAY / OPERATIONAL FOCUS Strategic Partner a) Develops & aligns strategies with business b) Assist line managers in solving organization, people and change related issues c) Contribute to management team’s strategic decision making d) Foster system thinking, customer focus e) Strategically manage workforce development Change Agent a) Understand the organization’s culture and what is effective & ineffective b) Institutionalizes change capability within the organization c) Assist line managers to lead and facilitate change d) Act as a consultant in organizational effectiveness e) Enhance management development Administrative Expert a) creates and delivers effective and efficient HR processes & services tailored to unique business needs b) Manages people & HR related costs c) Ensures internal & external customer focus d) Applies information technology to rapidly deliver quality HR products & services Employee Champion a) Develops strategies & helps implement actions that enhance human capital contribution b) Helps build workforce commitment c) Ensures fair, ethical & equitable people processes and practices d) Voice of employees When done well… gives the organization a great strategic advantage
  • 10. HR as Strategic Partner Knowledge requirements •Bring strong technical expertise to the table and an understanding of the organization and its strategy •Develop new skills as needed. Understand the data, the financials, the market Staying focused on issues that matter to the business •What are the issues that matter? •What’s keeping business leaders up at night? •What’s the elephant on the table regarding the future? •What drives the bottom line •Focus on business objectives •Focus on environment Delivering capabilities that make a real difference •Provide organizational capabilities as required by the business objectives: > People > Strategy > Culture Becoming a Strategic Partner
  • 11. HR as a Change Agent Before Change Prepare for Change During Change Managing Change Post Change Reinforcing Change a) Serves as a catalyst for change b) Helps the organization build a capacity for change c) Plan change process with sponsors d) Ensure project team has necessary skills, training e) Coach sponsors f) Lead by example by doing it first within the HR function a) Facilitate the discussions about the change and its content with all stakeholders b) Coach leaders through the change c) Act as a coach mentor to employees to help them understand change d) Emphasize what is in it for the individual and address concerns e) Strike a balance between business and employees f) Communicate a) Help employees to break from the past and adopt a new culture b) Sustain the momentum c) Internalization of new behavior / ways d) Recognize and celebrate success e) Build on the change