Enhancing Organisations

Transcription

1 Plenary Session III: FIDIC 2011 Conference Enhancing Organisations Enhancing Organisations with a strategic human resource approach Yvette Ramos Wednesday, 05 October 2011,

2 Enhancing Organisations with a strategic human resource approach By Yvette Ramos, Ms. Sc.Eng., MBA President section Geneva y@novaimo.com 5 oct. 2011

3 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.

4 Stepping-back : What is strategic planning and management after all?

5 When talking about strategic Human Resource Management and planning : MISSION VISION OBJECTIVES PROJECTS MEASURES

6 Resolve key questions : the roles of Human Resource management leaders How to anticipate evolutions of my organisation and its businesses, through a generalized strategic planning approach? How to fill the gap between required competencies and those we have in the organisation : recruitment, diversity management, mobility, entrepreneurship development,..? How to make the compensation and benefits system evolve in order to motivate and retain the human capital while maintaining equity policy, and what are the financial impacts?

7 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.

8 1- Its capacity in measuring the strategic value of human capital

9 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"

10 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, conflict management and optimisation of production

11 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

12 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

13 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, at international level, and their long-life training and loyalty

14 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

15 Lets step back definitions? Direction Finance Financière Direction des Purchasing achats Direction R&D R&D Scientifique Technique Scientic Intangible Actifs Immatériels assets Source : Direction Commerciale Sales Direction des Human Ressources Resouces Humaines Direction Marketing Marketing Information Direction Systèmes D Information System Direction Organisa- de L Organisation

16 Intangible assets represent the hidden face of value Solid Liquid Gas Assets Current assets Client capital Human capital Partners capital Knowledge capital Organisational capital Informations system capital. Capital Debt Goodwill Visible assets Invisible assets Source : Fustec et Marois, 2006 Goodwill Management

17 Intellectual capital model [Carl Bro]

18 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 differentiate Innovation to protect better your organisation from competitors Innovation to better work in community, to project your organisation in the long-term, to have a global view of synergies in the industry Innovation 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

19 2- the alignment of people, processes and technology around common objectives

20 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.

21 What the four HR functions are..* * Dave Ulrich «HR Champion», 1997

22 Strategic and business partner

23 Change leader = implements a competency-based approach When environment evolve quickly: What will be our activities? How are our businesses going to evolve? Which competencies will we need?

24 Administrative warrant : about tools Mission Methods PEOPLE Means

25 Employee Champion! Environment is RAPLEX : RAPIDLY + COMPLEX New economy formula of professional success E= MC 2 Efficiency = Motivation x Communication X Competence

26 GLOBALISATION OF BUSINESS & HR CHALLENGES Major env. Change in last 15 yrs GLOBALISATION World becoming global village & business becoming Global in character Increased 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.

27 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.

28 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 )

29 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.

30 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

31 Conclusion about Changes in Human Resources? Headcount: DO More with less Reduce costs: People cost Money Real time : Need for information 24/7 Empowerment: 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

32 «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

33 3- The proactive planning of human resources needs

34 Competitive Advantage through People

35 VISION AND STRATEGY OF THE ORGANIZATION Human Resource planning A model HR PLANNING TOOLS RECRUITING TRAINING PERFORMANCE EVALUATION INTERNAL MOBILITY PERSONNEL ADMINISTRATION LEADING THE CHANGE NEW COMERS INTEGRATION PERSONNEL DEVELOPMENT COMPS and BENS INTERNATIONAL MOBILITY PAY ROLL HR PROJECTS MANAGEMENT INCREASING PERFORMANCE

36 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

37 Strategic Human Resource Management

38 The Role and Value of Human Capital Investments

39 Enabling strategic success FIDIC Davos Conference 2011

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41 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