HR for HR

HR for HR

Prof.Dr.Aung Tun Thet

Adding Value and Delivering Results

• “Our progress as a nation can be no swifter than our progress in education.

• The human mind is our fundamental resource.”

Audience

HR Community

HR Professionals

MSHRM

Messages

1. Role and function of HR in organizations

2. HR in HR practices

Four roles or deliverables for HR

1. Management of Strategic HR2. Firm infrastructure3. Employee contribution4. Transformation and Change

“Doing HR for HR”

New way of thinking and doing HR

Cobbler’s unshod children Design systems; give advice;

help others Do not apply HR principles to

themselves

“Doing HR for HR”

Strategic HR

HR Strategy

HR Orgnization

Three Issues

Related Focus on business success

Strategic HR: Turning Business Strategies Into HR Priorities

Strategic Challenge

Moving from business strategy to HR Plan to HR practices

Strategic Planning

1. Strategic Formulation2. Strategic Implementation

Strategy Formulation without Implementation: Unfulfilled Promises

Three purposes of Strategy1.Future direction for business - vision,

mission2.Allocate resources3.Commitment

Strategy Implementation

Follows formulation Organizational practices aligned with

business strategy

Strategic HR and Fulfilment of Strategic Promises: Defining Capabilities

“Organizational Capability” - processes and capabilities to make strategy happen

Capabilities - important link between formulation and implementation

Corporate HR Strategy: Six Foci

1. Performance-driven culture

2. Marketplace competitiveness

3. Valuing differences

4. Continual learning and development

5. World-class leadership

6. Environment

Strategic Planning Process• Three basic questions

1. Business issues: Major issues faced

2. Organizational Capabilities: Organisational capabilities required to meet business goals

3. HR practices: Leverage HR practices to create, reinforce and sustain needed capabilities

HR Strategy: Shaping HR Function

HR Strategy

Value created by HR function Work done by HR professionals add value Shapes HR function: Define deliverables and outcomes Justifying resources Setting priorities

HR Strategies

1. Vision

2. Mission

3. Values

4. Stakeholders

5. Initiatives

6. Priorities(Goals/Objectives)

7. Actions

8. Measures

HR Vision Statement Ensure improved business performance

and competitive advantage

Enabe managers to build, develop and manage employees

Products and services add value and build organisational capability

HR Strategic Architecture: Future Situation

Management Capability

Customer-focused Strategic and results oriented Change agents Intelligent risk-takers

Management Capability

People builders Team players Continual learners Respected

Employee Commitment

Access to resources to meet needs

Contribute to organizational outcomes

Take initiatives

Employee Commitment

Contributions recognized and shared

Compensation and benefits competitive

Safe work environment provided

Organizational Effectiveness

Fulfils mission, strategies and goals

Processes tied to strategies and performance

Processes flexible and adaptable

Organizational Effectiveness

Capacity for change

Resources leveraged across organisation

Work teams used effectively

HR information system interactive

Administrative Efficiency

100% fulfillment of commitmentsEffective and timely delivery of HR servicesNo ‘non-value added services or duplicationContinuous improvement of processesCompliance with policy, laws and regulations

HR Strategic Architecture: Strategic Direction

Guiding Principles

Core values

Partnering

HR processes add value

Fast, flexible and cost effective delivery

Maintain priorities

Continuous learning opportunities

People

Right people, right jobs

Aligned workforce

Communications

Teaming for results

People

Diverse workforce

Continuous learning

Recognition/Reward

Performance Management Process

Results-drivenFacts-based and documentedInfrastructureCentres of Expertise

External Influences

Globalization

Rapid technological change

Demanding customer requirements

Innovation

External Influences

Sourcing talent

Partnering

Competition

HR Organization: Organization Diagnosis to build HR infrastructure

HR Organization

Road MapFour-step process

Step 1: Define Organizational Architecture

Six factors

1.Shared mindset

2.Competence

3.Consequence

Step 1: Define Organizational Architecture

Six factors

4.Governance

5.Work process/Capacity for change

6.Leadership

Step 2: Assessment Process

Probing strengths and weaknesses of HR organisation

Assessment: Does HR Organization have?

FactorsRight Shared MindsetRequired competencies (knowledge, skills, abilities)Right Performance Management System (measures, rewards, incentives)

Assessment: Does HR Organization have?

FactorsRight organisational structure, communication and policiesAbility to improve, learn and changeRight Leadership

Step 3: Provide Leadership in Improvement Practices

Shared MindsetClear vision and missionCommon identity

Step 3: Provide Leadership in Improvement Practices

Competence

Four:

1.Knowledge of business

2.Delivery of HR

3.Management of Change

4.Personal credibility

Competencies

Three options:1.Buy2.Build3.Borrow

Buying Competencies

Talent from outsideTargetedNot wholesale outsourcing

Building Competencies

Upgrading skills and knowledge of current HR professionals

Training and Development

Formal training

Job assignments

Career mobility

Task Force assignments

Borrowing Competencies

OutsourcingJoint VenturePartnershipAlliance

Consequences

Standards and measures of HR professionalsPerformance Management Systems

Performance Management System (PMS)

HR professionals their worst enemiesDesign and advocate company’s PMSDo not apply in HR Departments

Performance Management System (PMS)

Three goals

Set standards for expectations from HR professionals

1. Behavioural - what HR professional should do

2. Outcomes - what HR professionals accomplish

3. Understandable, Controllable, Significant, Shared Commitment

Performance Management System (PMS)

• Rewards contingent on meeting standards• Financial and non-financial

Performance Management System (PMS)

Collect and share feedback on resultsSelf-monitoringTimely, Helpful, Candid Performance Reviews

Governance

Organization structure for delivering HR

Communication - HR agendas, goals, activities, results

Fair and equitable administration of policies

Model for how to treat staff

Restructuring work, communication, marketing of ideas

Work Process/Capacity for Change

Speed, agility and responsivenessTaking risksUnderstanding processes for making change quicklyTrailblazers imbedded in policies and procedures

HR Leadership

Report to CEOCreate and transform organisational cultureTop-qualityMany hats“Leader-Managers”

Step 4: Set PrioritiesFocus attention on few critical issuesCriteria:ImpactImplementability

Differences among Strategic HR, HR Strategy and HR Organization

Purpose

Strategic Intent HR Strategy HR Organization

Translating business strategies into organisational capabilities and into HR practices

Building strategy, organisation and action plan making HR function/department

more effective

Crafting, designing and improving HR function to deliver HR services

Owners

Strategic Intent

HR Strategy HR Organization

Business results through HR practices

Effectiveness and Efficiency of HR practices

Effectiveness and Efficiency of HR function

Audience

Strategic Intent

HR Strategy HR Organization

• Managers• Employees• Customers• Investors

• HR professionals• Line Managers

• HR professionals

Roles

Strategic Intent

HR Strategy HR Organization

• Line Manager as owner• HR professionals as facilitator

• Line Manager as investor• HR professionals as creator

• Line Manager as investor• HR professionals as leader

Summary: HR for HR

HR Professionals

Helping others and themselvesHR principles applied to HR functionManagement three sets of activities

1. Strategic HR2. HR Strategy3. HR Organization

HR Professionals

Model principles we preachCredibleSuccessful business partners

Human Resources

• Like natural resources• Buried deep• Not lying on surface• Have to look