The Changing Role of HR

The C hanging Role
& Functions of HR
H R as th e e m p loye e ad vocate
H R as th e cons u ltative b u s ine s s p artne r
H R as th e age nt of C h ange
HR Republic S ummit 2011: Trends & C hallenges Unfold
Zu lkifli M oh d
19 October
2011
CONTENTS
The E volution of HR
The C hanging Role of HR
HR as S trategic Partner
HR as C hange A gent
HR as E mployee A dvocate
Origins of HR
A B rief His tory of HR
End of 18th
Century:
Welfare
Officers
P rote ction for fe m ale
e m p loye e s & ch ild re n
C are fo r inju re d &
s ick e m p loye e s
C re ate d in re s p ond to
h ars h ne s s in
ind u s trial cond itions
The World
Wars:
Labour/
Employment
Manager
Ad m in is tratio n of
ab s e nce , trainin g &
re cru itm e nt
S tate / Trad e U nion
p artn e rs h ip s
H and le d q u e rie s on
com p e ns ation
m atte rs
E m p lo ye e d ata
1945 1979:
Personnel Mgt
We lfare &
e m p lo ym e n t m gt
we re inte grate d
P e rs on ne l Mgt
O u tp u t cou ld b e
in flu e nce d b y
e m p lo ym e n t p olicie s
S tru ctu re d
com p e ns ation p olicy
C o lle ctive b argaining
& IR
S p e cialize d fu nctions
(70s )
1980 2000:
Human
Resource /
Compliance Officer
Ad m in is trator &
te ch nical e xp e rt
F ocu s e d on
im p roving e fficie ncy
& e ffe ctive n e s s
C om p e ns ation
e ngine e ring as ke y to
p rod u ctivity (ince n tive
p lans , d e fe rre d
com p , op tio ns )
2001 till now:

Strategic HR
S trate gic Bu s ine s s
P artne r
C h ange Age nt
E m p lo ye e C h am p ion
COE
S h are s e rvice
The HR J ourney
High
Value Impact/C ontribution to the Bus ines s
Strategic HR
Human
Resource
Management
Personnel
Management
Labor
Manager
Welfare
Officer
1890 - 1913
2 nd Ind ustrial R e volution
Ad m inis trative
focu s
C om p liance
Trad itional m ind
set
Lim ite d s cop e o f
activity
S p e cialize d
fu nctions
1914- 1939
1945 - 1979
World Wars
Ad m inis trative
focu s with
e nlarge d s cop e of
activitie s
S u p p ort fu nction
Le s s re active &
m ore p roactive
1980- 1990
G lob alization
B u s ine s s P artne r
F ocu s on valu e ad d e d activitie s
P roactive
M u ltid is cip linary
M u lti-face te d role s
2000 till now
The HR J ourney: Nature of Work
continue to
evolve
Value Impact/C ontribution to the Bus ines s
High
Strategic
HR Planning
HR as
Business
Partner
Organizational
Design
Survey Action
Planning
Staffing
Transactional
Work
Labor/Union
Relations
Safety &
Workers
Compensation
COE
Performance
Management
Shared
Svc
Centre
Culture
& Image
HRIS
Employee
Relations
Training &
Development
Benefits
Compensation
Transformational
Work
Compliance
Welfare /
Employee
Care
Employee
Welfare
Labor
Relations
Employee
Relations
Personnel
Admin
Human
Resource
Organizational
Effectiveness
S ou rce : R ich Vos b u rgh
HR is s hifting from focus ing on the

organization of the bus ines s to focus ing on
the bus ines s of the organization
HR is more important than ever, people are

the only s us tainable s ource of competitive
advantage.
Wats on Wyatt S tu d y
You can take my factories , burn up my buildings , but give me my

people, and Ill bring my bus ines s right back again.
- H e nry F ord -
What C E Os Really Want from HR

Reality C hec k
E mployers want HR to addres s s trategic is s ues involving the

c ompetitivenes s and performanc e of the firm More than the role
of protec tor and adminis trator.
What C E Os Really Want from HR

Reality C hec k
The bus ines s

environment:
Globalization
Economic
uncertainties
Technology
innovations
Profitability thru Cost
& 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 biz leaders to
achieve objectives

Reality C hec k
A s urvey of 500 HR directors acros s E urope,

the Middle E as t and A s ia, found out that
only 15% of the activities carried out by HR
departments are related to " pure s trategic
interventions " .
Wats on Wyatt S tu d y

The S hift in the B alanc e of HR Roles
HR needs to realign its service delivery model to add

more strategic value to the organization
Strategic
15%
Strategic
60%
Trans actional/
Operational
85%
Trans actional/
Operational
40%
% of available resources
Need to expand focus beyond its traditional & transactional role.
The Role of HR
Ulrichs Four-Role Model
Four Roles for HR

A dminis trative E xpert
E mployee C hampion
C hange A gent
S trategic Partner
Dave Ulrich identifies four distinct roles of HR professional

that may add value to a business and create sustainable
competitive advantage.
The Roles of HR
F u tu re /S trate gic F ocu s
S trategic Partner
P
R
O
C
E
S
S
E
S
A ligning HR & B us ines s S trategy

Active Role in setting strategic direction
C hange A gent
Managing Trans formation &
C hange
Effecting Transformation & Change
E mployee C hampion
Managing The
Firms HR Infras tructure
Managing E mployees
C ontribution
Process Optimization & Efficiency
Motivated & Competent Personnel
David Ulrich HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996
D ay-To-D ay/O p e rational F ocu s
P
E
O
P
L
E
The Roles of HR
S trategic Partner
P
R
O
C
E
S
S
E
S
Develops & aligns strategies with biz

Assists line managers in solving organization,
people & change-related issues
Contributes to management teams strategic
decision-making
Fosters systems thinking, customer focus
Strategically manages workforce development

Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
Manages people & HR related costs
Ensures internal &external customer focus
Applies information technology to rapidly
deliver quality HR products and services
C hange A gent
Understands the organizations culture & what
is effective and ineffective
Institutionalizes change capability within the
organization
Assists line managers to lead & facilitate change
Acts as a consultant in organizational
effectiveness
Enhances management development
E mployee C hampion
Develops strategies and helps implement
actions that enhance human capital
contribution
Helps build workforce commitment
Ensures fair, ethical, and equitable people
processes and practices
VOE
P
E
O
P
L
E
The Roles of HR
S trategic Partner
P
R
O
C
E
S
S
E
S

decision-making
C hange A gent
organization
effectiveness
when NOT done well create a lot of

is s ues

business needs
E mployee C hampion
contribution
P
E
O
P
L
E
The Roles of HR
S trategic Partner
P
R
O
C
E
S
S
E
S

decision-making

business needs
C hange A gent
organization
effectiveness
E mployee C hampion
contribution
when done well give the organization

a great s trategic advantage
P
E
O
P
L
E
Participates in designing & defining organizations strategies
Contributes to management teams strategic decision-making
Focuses on aligning HR strategies & practices with business

strategy translate business strategy into HR priorities
Strategically manage people & infrastructure to support the

execution of strategies & the creation of value
Deliverable/outcome: S trategy execution
C ore C ompetencies
HR as Strategic Partner should be able to:
S trate gic Partne r
C ore C om p e te ncie s
B us ines s Mas tery
Pers onal C redibility
HR Mas tery
Facilitate strategy development

for business teams by using
different techniques
Plan and facilitate strategy
deployment to the whole
organization
Align the organization strategy
with the business strategy to
ensure it will be delivered
Redesign the organization to
support strategy
B ec oming A S trategic B us ines s Partner
Becoming A S trategic B us ines s Partner
Knowledge
Requirements
Bring
Bring
strong
strong
technical
technical
expertise to the table
and an understanding of
your company and its
strategy.
Develop
Develop
new
new
skills
skills
asas
needed. Understand the
data, the financials, the
market, etc.
Staying
Stayingfocused
focusedon
on
issues
issuesthat
thatmatter
matterto
tothe
the
business
business
Delivering capabilities
that make a real
difference
What
What
are
are
the
the
issues
issues
that
that
matter?
matter?
Whats
Whats
keeping
keeping
business
business
leaders
leadersup
upat
atnight?
night?
Whats
Whats
the
the
elephant
elephant
onon
the
thetable
tableregarding
regardingthe
the
future?
future?
What
What
drives
drives
the
the
bottom
bottom
line?
line?
Focus
Focus
onon
business
business
objectives
objectives
Focus
Focus
onon
environment
environment
Provide
Provide
organizational
organizational
capabilities as required
by the business
strategy
objectives:
People
People
Goal
alignment
Strategy
Culture
Culture
B ec oming A S trategic B us ines s Partner
Becoming a bus ines s partner s ounds eas y

but in practice demands a s hift in minds et
and capability
Minds et S hift
Becoming a true "player" on strategic business issues able

to challenge business leaders on their own ground
Architect who can synthesize best practices e.g. Total

Reward, Talent Management, OD, etc into integrated solutions
and implement at speed
Shifting from advising and consulting to challenging,

provoking, confronting business leaders
Letting go of the past and engaging with the future
You are moving towards S trategic Partnering When
You are involved in dis cus s ions (by invitation!) on the " people
implications " of a change or a new initiative in the organization before
things go wrong
Line Managers in confide in you about their concerns and problems ,
even when you are not providing a s olution then and there
Managers encourage you to tackle is s ues in their areas and expres s
confidence in your ability to do things you may never have done
before
You engage in genuine dialogue with line managers
The time frame of your work moves from pres ent/pas t to future es pecially longer term future
The " why of what you is doing is very clear - in terms of
organizational need (not " becaus e we always do it/ have done it)
A s ignific ant number of any organization's bus ines s s trategies

requires major c hanges in people-related is s ues ; the HR
function and individual HR profes s ionals develop and manage
the key " people" s ys tems needed to s upport organizational
c hange.
S imple though not eas y
A S trategic Role
Provoke the pos itive changes in the organization s o it c an s tay c ompetitive.

B uild the organizations c apac ity to embrace and capitalize on change.
C hampion/
S pons or/
C atalys t
Facilitator
HR as
C hange
A gent
Des igner
Demons trator
Deliverable/outcome: C reating a renewed organization
The Roles
Model the c hange

C ommunicate about the change
E ngage others to participate
Help others to break from the pas t
C reate a s upporting environment
The C hange A gent Role

B efore C hange
Preparing for C hange
Serves as a catalyst for change
During C hange
Managing C hange
Pos t-C hange
Reinforcing C hange
Helps the organization build a

capacity for change
Facilitate the discussions about

the change and its content with
all stakeholders
Help employees to break from

the past & adapt a new culture.
Plan change process with

sponsors
Coach leaders through the

change
Internalisation of new
behaviour / way
Ensure project team has

necessary skills, training
Acts as a coach/mentor to
employees to help them
understand change as it affects
their lives
Recognize & celebrate success
Coach sponsor
Lead by example by doing it
first within the HR function.
Emphasize what is in it for the

individuals and address
concerns
Strike a balance between the
business and employees
Communicate, communicate,
communicate
Sustain the momentum
Build on the change
Change Process
B uild the organizations
c apac ity to embrac e
and manage c hange
This is the way we do things

here
Internalisation
of new behaviour
nt
OK, Im ready to do it
e
tm
the new way
i
m
Commitment
om
C
to personal change
g
n
i
I
know
how
we
need
to
s
ea
do our jobs differently
r
c
n
I
Translation
to the work setting
I understand where we
need to go
Understanding
of change direction
Yeah, I saw the memo
Awareness
of desired change
Information with some

involvement sufficient here
Significant
involvement
needed

The C hange Management Tool
The change has to be managed and the HR Professionals have to be skilled
in the change management process.
Phas e
C ontent
Outcomes
Unfreeze
Set the
direction
Create the
desire & will to
change
Break with
the past
Mobilise
Make early
changes &
build
confidence
Build the
energy
Realise
Secure
widespread
shift in
behaviour
Performanc
e lift-off
Reinforce
Underpin with
changes in
structure &
people
processes
Embed new
culture
Sustain
Strive for
continuous
performance
improvement
Push the
limits

The C hange Management Tool
The C hange A gent

C ompetencies
A deep knowledge of change management processes

Problem solving skills
Coaching & conflict management skills
Good communication, influencing & facilitation skills
Networking, Collaboration & team-building abilities
Business mastery
Planning & project management skills
Ability to tolerate ambiguity
A risk taker
The C hange A gent
Of cours e change management is nt res tricted exclus ively to HR. Line

managers are the owners of change while HR can be s een as its
architect, facilitator and des igner. Nobody ever s aid that only HR
manages change.
- Dave Ulrich
Managing E mployee C ontribution
Voice of the Employee
Develop employee competence
Equip managers with skills to respond effectively to employees; equip the
employees with skills to overcome challenges
Create climate for action
Daily
E mployee
is s ues
E mployee
engagement
Partner
With
People &
Mgnt
E mployee
development
Employee
Commitment &
Competence
C onducive
climate &
culture
Deliverable/outcome: increasing employee commitment and capability
It is HRs role to ens ure that line managers unders tand the
c ritic al link between employee motivation and organis ational
performanc e and how this link c an be s us tained employees
need to be kept engaged and motivated.
Four-Role of HR
Paradoxes Inherent in Multiple HR Roles
Strategic Partner vs. Employee Advocate

Success in multiple-role framework requires that HR professionals
balance the tension inherent in being a strategic partner on the one
hand and an employee advocate on the other.
HR professionals must demonstrate that they can both represent
employee needs and implement management agenda, be the voice of
the employee and the voice of management, act as partner to both
employees and managers.
HR professionals must strike a balance between the needs of these
potentially competing stakeholders.
S ummary
Being an effective HR professional does not mean simply moving

from operational to strategic work. It means learning to master both
operational and strategic processes and people.
The operational and transactional aspects of HR need to be
handled well. No matter what other strategic and transformational
work is being done, the trains still need to run on time.
A strategic partner has multiple dimensions HR professionals as
business partners operate in each of the 4 roles.
HR professionals, in order to meet the demands of these new roles,
a shift in mindset and capability is a must.

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The C hanging Role

2001 till now:

Value Impact/C ontribution to the Bus ines s

2000 till now

Value Impact/C ontribution to the Bus ines s

The C hanging Role of HR

The C hanging Role of HR

HR is s hifting from focus ing on the

The C hanging Role of HR

HR is more important than ever, people are

You can take my factories , burn up my buildings , but give me my

What C E Os Really Want from HR

E mployers want HR to addres s s trategic is s ues involving the

What C E Os Really Want from HR

The bus ines s

The C hanging Role of HR

A s urvey of 500 HR directors acros s E urope,

The C hanging Role of HR

HR needs to realign its service delivery model to add

Need to expand focus beyond its traditional & transactional role.

Four Roles for HR

Dave Ulrich identifies four distinct roles of HR professional

A ligning HR & B us ines s S trategy

A dminis trative E xpert

Process Optimization & Efficiency

Motivated & Competent Personnel

D ay-To-D ay/O p e rational F ocu s

Develops & aligns strategies with biz

A dminis trative E xpert

D ay-To-D ay/O p e rational F ocu s

Develops & aligns strategies with biz

when NOT done well create a lot of

A dminis trative E xpert

D ay-To-D ay/O p e rational F ocu s

Develops & aligns strategies with biz

A dminis trative E xpert

when done well give the organization

D ay-To-D ay/O p e rational F ocu s

Participates in designing & defining organizations strategies

Contributes to management teams strategic decision-making

Focuses on aligning HR strategies & practices with business

Strategically manage people & infrastructure to support the

Strategically manages workforce development

Deliverable/outcome: S trategy execution

Facilitate strategy development

Becoming a bus ines s partner s ounds eas y

Becoming a true "player" on strategic business issues able

Architect who can synthesize best practices e.g. Total

Shifting from advising and consulting to challenging,

Letting go of the past and engaging with the future

A s ignific ant number of any organization's bus ines s s trategies

S imple though not eas y

Provoke the pos itive changes in the organization s o it c an s tay c ompetitive.

Deliverable/outcome: C reating a renewed organization

Model the c hange

The C hange A gent Role

Preparing for C hange

Serves as a catalyst for change

Pos t-C hange

Helps the organization build a

Facilitate the discussions about

Help employees to break from

Plan change process with

Coach leaders through the