HR Transformations: New tendencies in the HR Function and Human Capital Management

Transcription

1 HR Transformations: New tendencies in the HR Function and Human Capital Management Assoc Prof Charles-Henri Besseyre des Horts, PhD HEC Paris

2 Agenda 1. Evolution of Human Resources Management (HRM) 2. Critical HR practices 3. Five domains of Cultural change Value creation Organizational agility Digital revolution Employee engagement 4. Future of HR : Outside-in role

3 "People-Oriented" Performance "Creating People Advantage" BGC 2012 Study

4 Evolution of HRM : Expertise + Sharing Individual Line Managers' Responsibility Collective Legal Administrative Strategic Managerial (Tools) Psychological (Motivation) (Protection) (Discipline) Incubator (People Partner) Marketer (Diversity) Innovative (Added Value) (Business Partner) Expertise

5 External & Internal Challenges Internet Social Networking Gen Y Employees Managers Unions CHANGE Customers Providers Competitors Partners Local, National Authorities, Stakeholders Internationalization Shareholders Financial Markets

6 Key HR Tensions What is centralized... Combination of roles between HR What is done internally or Source : adapted from Bournois, 2008, 2010 Individual Hard Soft or decentralized...outsourced Collective..and line management

7 HR / non HR Perceptions "Creating People Advantage" BGC 2012 Study

8 Most Critical HR Practices "Creating People Advantage" BGC 2012 Study Strong Need To Act Low Need To Act

9 1. Cultural Change 2. Value Creation 3. Organizational Agility 4. Digital Revolution 5. Employee Engagement 5 Domains of HR Transformations

10 Cultural Change Closed System CLAN (Loyalty) 1980's BUREAUCRACY (Rules) Flexibility / LT Rigidity / ST ADHOCRACY (Innovation) 1990's 2000's MARKET (Performance) Open System Source : Adapted from Quinn & Cameron, 1998,2005

11 Cultural Change & HRM Corporate culture and values represent the "glue" of the firm, they are founded on basic assumptions and present beliefs Culture and values are becoming important in highly changing environments, they represent guides for actions Most HR activities are concerned : recruitment, integration, training, development, mobility, promotion, evaluation, compensation & benefits, coaching Matrix Values/Performance : an example of HR contribution High on Values Low Performance Training, development, evaluation. High Performance Mobilityup (promotion, bonus, development) Low on Values Mobility out, coaching Second chance, coaching, mobility

12 HRM Potential of Value Creation Strategy Processes Administration Traditional Approach Strategy Processes Administration VC Approach

13 Value Creation & HRM Beyond the business partner role, HRM can play a more proactive role in bringing innovative ideas and solutions to strategic issues : from a cost to a value creation view of HRM Value creation role of HRM becomes important with the increasing number of stakeholders in a sustainable development framework (e.g. : shareholders, customers, suppliers, employees, community ) Value creation through HRM can occur in many strategic areas : Corporate culture : HR programs (e.g. training) reinforcing the firm s values Organizational change : HR initiatives developing individual/collective resilience Company attractiveness : employer branding and induction programs Company performance : performance management system (assessment/rewards) International expansion : development of global and local HR processes (balance) Measurement of HR contribution to strategy becomes compulsory

14 Organizational Agility & HRM Organizational agility characteristics : Change as the DNA of the organization Anticipation and forecasting through the weak signals Flexible structures and network as dominant organizational forms Processes permanently questioned and revisited Lifelong learning and the right to fail Managerial upheaval with a real inversion of the pyramid Empowerment of "value zone" employees HRM contributions Highly visible and proactive role of HR in the change strategies Reinforcement of agility through HR policies and practices : recruitment, training, development, performance management, compensation & benefits, career management & mobility.

15 Digital revolution Digital Revolution & HRM Web2.0 : one to many many to many, top/down-bottom/up, content may be dissociated from the tool Mobility and nomadic tools : anytime, anywhere, anybody Explosion of social networks (SN) :+ 1 billion users on Facebook, +200 million on Linkedln, development of company internal social networks. 95 % of firms in Europe declare to use social networks in the recruitment processes to source potential talents (2013) Consequences for HRM Time pressures, "crowd" effect, transparency imperative. In order to meet these challenges, HRM will have to revisit most of the processes : strategic workforce planning, recruitment, training, compensation & benefits, careers & mobility

16 Recruitment 2.0 : Equality between Recruiters & Candidates! Recruitment 2.0 e-recruitment 2007 > Social Networks 1998 >Jobboards Recruitment Marketing HR : Employer Brand Informations about the candidate The company & and Recruiter Job search Personal Marketing : Individual digital identity Informations about the company and the recruiter The Candidate Source : Apec, 2011

17 Employee Engagement & HRM Engagement is the extent to which employees put discretionary effort into their work, in the form of extra time, brainpower and energy for the company success (Towers Perrin). A model : HRM activities fostering employee engagement : values, CSR, training, development, rewards strategy employer branding Source :

18 Employer Branding Employer Brand The unique and differentiating promise a business makes to its employees and potential candidates + Employee experience Actual delivery of the promise throughout the employee lifecycle Brand strength Attraction of the right candidates Employee engagement and retention Differentiation from competitors Customer engagement and retention Attraction and retention of high quality employees is a competitive necessity in order to differentiate from competitors HRM activities directly involved in employer branding : recruitment, integration, training, development, compensation & benefits...

19 Future of HR: Outside-in Role Proposed by Dave Ulrich (and his colleagues) as the next wave of HR with a focus on external issues by taking into account: The context and the setting in which the business operates The expectations of key stakeholders (customers, employees, managers, investors, communities, suppliers, partners.) The strategies that give to the firm a unique competitive advantage It is an appeal to go beyond the traditional boundaries of HRM : geographical, functional, technical The outside-in role for HRM, for example, leads : To use customers expectations as standards for recruitment To involve investors and customers in the design of training programs To include communities environmental goals in performance management To take into account customers satisfaction index in the bonus package This role is supported by the development of 6 HR competencies Source : Ulrich D., Younger, Brockbank & Ulrich M., 2012

20 6 Competences to Develop Outside-In Role Strategic Positioner Credible Activist Capability Builder Change Champion HR Innovator & Integrator Technology Proponent Source : Ulrich D., Younger, Brockbank & Ulrich M., 2012

21 FINANCE Master financial basics, Manage people costs and productivity Report on significant indicators Example of an European MNC XXX BUSINESS AWARENESS Know XXX business Meet with Customer HR COMPETENCIES ROLE OF MANAGER Coach, Be a Leader HR as Influential Business Partner Master Key HR Competencies Recruitment, Reward, Training and Development, Career Management, Change Management, Communication and Employee Satisfaction etc Source : Internal document, XXX, 2011