Professional Documents
Culture Documents
Term paper
Of
Human resource management
o SUBMITTED BY
IRFAN BASHIR
ROLL NO. B 47(SEC.
A)
REG. NO: (10900856)
MBA II (SEM)
D. O. S - 10- 5- 2010
SUBMITTED TO :
MISS. ALKA SHARMA {(FACULTY(LIM)}
ACKNOWLEDGEMEN
T
I would like to express my gratitude for the helpful comment and Suggestions by
my teacher.
Most importantly I would like to thank my lecturer Miss Alka sharma for her
days of supervision. Her critical direction and support on work has played a major
role in both the content and presentation of our discussion and arguments in our
tutorial classes. Also her method of teaching and clearance of doubts regarding
with the topic have made me successful to make this term paper and her proper
guidance and help may make it possible for me to complete it on time’.
I have extended my appreciation to the several sources which have and will
provided various kinds of knowledge base support for me during the research.
Irfan - Basher
contents
INTRODUCTION.
HR FUNCTIONS TRANSFORMATION.
OBJECTIVES OF RESEARCH.
REVIEW OF LITERATURE.
CONCLUSION.
INTRODUCTION.
HR transformation is defined as the process of recreating or reinventing the
HR function — such as reengineering, restructuring, implementing new
systems or a new HR service delivery model, outsourcing or co-sourcing —
with the specific intent of enhancing HR’s contribution to the business.
Human resources are the most valuable and unique assets of an organization.
The successful management of an organization's human resources is an
exciting, dynamic and challenging task, especially at a time when the
world has become a global village and economies are in a state of flux. The
scarcity of talented resources and the growing expectations of the modern
day worker have further increased the complexity of the human resource
function. Even though specific human resource functions/activities are the
responsibility of the human resource department, the actual management of
human resources is the responsibility of all the managers in an
organization.
"People are our most valuable asset" is a cliché which no member of any
senior management team would disagree with. Yet, the reality for many
organizations is that their people remain
under valued
under trained
under utilized
poorly motivated, and consequently
perform well below their true capability
The rate of change facing organizations has never been greater and
organizations must absorb and manage change at a much faster rate than in
the past. In order to implement a successful business strategy to face this
challenge, organizations, large or small, must ensure that they have the
right people capable of delivering the strategy.
The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disruptive to existing employees. Also, it takes
time to develop 'cultural awareness', product/ process/ organization
knowledge and experience for new staff members.
(HRM) has shifted its function within Organizations over the last few years.
Its function has grown considerably and has shifted into a more strategic
role rather than providing support for administrative paperwork. There has
been a shift too, in terminology, with the term Human Resource
Management functions becoming more common.
Dave Ulrich, a well-known HR Guru from the University of Michigan
says that the purpose of the HR functions rapid transformation is
simply twofold: firstly, to improve the organization’s capability, and
secondly, to improve individual capability within the organisation.
To improve Organisation performance and create competitive
advantage, the HR team must focus on a new set of priorities. These
new priorities are more business, and strategic oriented and less
geared towards traditional HR functions such as staffing, training,
appraisal and compensation.
The transformation is being driven by the top goals HR functions must strive
to achieve:
develop leaders.
recruit and retain a quality work force.
manage performance systematically.
develop culture.
HR functions typically operate across four roles:
administrative expert
employee champion
change agent
strategic partner
In the Mercer studies (globally and in Australia) when asked in which roles
they perceived the HR function as being successful, a greater proportion of
HR executives nominate 'administrative expert' over that of 'strategic
partner'. This makes sense, given (a) where the function has been, and (b)
that HR only earns the right to operate on a more strategic stage once the
basic 'nuts and bolts' have been attended to. In the global study, line
managers were also asked to rate the success of HR in each of these roles.
It is disquieting that a smaller proportion of line managers rate HR as
successfully as the HR function rates itself - this is particularly the case for
the role of strategic partner.
Objectives of research
To study whether the transformation of hrm functions are necessary for an
organization.
Why are these changes occurring so rapidly?
How are leading companies managing the transformation of HR functions?
What are the implications of these changes on HR professionals in the
future?
And the role of transformation in future.
• REVIEW OF LITERATURE
The field of human resource (HR) management has been undergoing a
dramatic change. Driving its transformation as such factors as competition,
globalization, technological innovations and market evolution. Business
organizations are responding to these changes by becoming flatter, less
hierarchical, less bureaucratic, more agile and more responsive. They are
aligning organizational and HR policies and practices with new business
realities to develop the competencies needed to succeed in the changed
marketplace. These capabilities include higher levels of cross-functional
coordination, employee commitment to quality, leadership competence,
creativity and entrepreneurship, and open communication. Some references
have been taken to make this review of literature.
In the Mercer studies ( globally) when asked in which roles they
perceived the HR function as being successful, a greater proportion of HR
executives nominate 'administrative expert' over that of 'strategic partner'.
This makes sense, given (a) where the function has been, and (b) that HR
only earns the right to operate on a more strategic stage once the basic 'nuts
and bolts' have been attended to. In the global study, line managers were
also asked to rate the success of HR in each of these roles. It is disquieting
that a smaller proportion of line managers rate HR as successfully as the
HR function rates itself - this is particularly the case for the role of
strategic partner.
The last few years have witnessed unprecedented changes in the human
resource functions of American corporations. This radical
transformation of HR functions has been instigated by a complex nexus of
forces: pressures to reduce costs, higher expectations of customers, the
constant drive to meet global competitive challenges, and opportunities
offered by advancements in information technology. The mix of these
forces accelerates the transformation of the HR function in ways not
envisioned a decade ago.
Furthermore, the research by Brockbank et al. (1999) showed that HR
activities positively impact business performance by approximately 10%
(defined as the financial performance of the business over the last three
years compared to major competitors. Strategic contribution accounts for 43
percent of HR's total impact on business performance which is almost twice
the impact of any other domain. These are all reasons why competencies are
being discussed by academicians and practitioners as ways of creating
sustainable competitive advantages. “Today, after being hidden for a long
time, the concept of competence has appeared prominently on the
educational stage again” (Klink & Boon, 2002).
Many other research findings have pointed to the relationship of HR and
HR
Transformation in order increase profitability and creating competitive
advantages.
From the above pie chart it is shown that how rapidly hr transformation
takes place in australia in the different areas where transformation is
completed and 75% is in process.so it very important for any organisarion
to transform its hr functions with time to compete in todays time.
Principal functions of HR today and in coming years
in the whole world.
Function Today 2-3 years
Human capital strategy 40% 64%
Talent management 49% 55%
Change management 42% 48%
Leadership development 49% 52%
Organization design 21% 28%
Organization development 35% 40%
Operational excellence within the HR function 46% 52%
Workforce planning 31% 34%
Succession planning 24% 27%
Industrial relations 32% 49%
Risk management 18% 17%
It is clear from the above table that how much transformation rate of hr functions are going to
increase in next couple of years.
Challenge Response
Acquiring key talent/lack of available talent 43%
Driving cultural and behavioral change in the organization 40%
Building leadership capability 40%
Retaining key talent 38%
Increasing line manager capability to handle people management
responsibilities 26%
Succession planning 24%
Increasing workforce productivity 22%
Constraints on headcount (“making do with less”) 20%
Encouraging organizational innovation 18%
Implementing people changes resulting from changes due to
operational performance 18%
Measuring the contribution of human capital to business
performance 17%
Lack of consensus around the organization’s strategy/direction 16%
Reducing overall human capital costs 16%
Resourcing and managing HR issues in “new geographies” for the
company 15%
Managing human capital during and after an acquisition or merger 15%
Workforce planning 14%
Increasing the return on investment in remuneration 14%
Coping with an aging workforce 12%
The data in the above table clearly indicates the challenges which the organizations are
going to face in the next years. Every organization has to be ready to face these
challenges. Transformation of hrm functions is the only way to become competitive in
present time.
Considered
Considered a an
Function barrier opportunity
Capability of line managers in management of their 54% 36%
people
Skills/competencies of HR staff 53% 56%
Business perception of value which HR can bring 46% 48%
Attitudes of line management 39% 24%
Technology 29% 40%
Business leadership 29% 40%
HR functional leadership 27% 48%
Reporting structure/HR organization 24% 25%
Availability of required skills 23% 19%
National/cultural differences 19% 14%
Regulatory constraints 19% 10%
Unions 18% 12%
Diverse workforce 16% 16%
Availability of solutions in local market (technology, 16% 18%
outsource providers, etc.)
The data give the information about the barriers and opportunities which
are going to be come in organizations path of success. so every
organization have to create the opportunities by eradicating the barriers.
The human resource (HR) function around the world continues to change as
it shifts its focus from enhancing internal operations to maximizing
contribution to the corporation’s business performance. According to the
2006 Global HR Transformation Study by Mercer Human Resource
Consulting, half (50%) of organizations are in the midst of transforming
their HR functions, while 12% completed a transformation within the past
year and another 10% plan to begin the process within the next year.
- Productivity improvement
- Educational deficiency
- Delegative Management
- Fairness in the Workplace
- Managing Differences
- Fair Pay for Everyone
- Chronic Labor Shortage
- Impact of Technology
- Employee Owners (entrepreneurship in the workplace)
- Organizational Restructurings for Higher Performance
Each of these areas can represent a major strategic program for the HR
Function. An absence of ideas is no excuse for making HR strategic.
1. Employment Security
2. Selective hiring of new personnel
3. Self-managed teams and decentralized decision making.
4. Comparatively high compensation contingent upon performance.
5. Extensive training
6. Reduced status distinctions and barriers (including dress codes,
language, office arrangements, and wage differences).
7. Extensive sharing of information throughout the organization.
Once again, the sources for strategic initiatives are extremely significant.
The obvious problem we will have is how do we address these issues
within our typical HR Function.