The Evolution of HR

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THE EVOLUTION OF HRIF WE DO NOT STEP FORWARD WITH COMPELLING HR LEADERSHIP, THE FUTURE WILL BE DETERMINED FOR US


ARE YOU JUST FILLING IN GAPS BY ADDING PEOPLE

You have to be able to multiply your talent by (re)combining skills, knowledge and organizational processes thereby increasing the contributions of individuals, teams, workgroups and entire workforces to increase adaptability, learning, flexibility, innovation and performance and as such create extraordinary value through people.

TRADITIONAL ORGANIZATIONBuilt by adding spare parts on need to have bases

TALENT POWERED ORGANIZATIONEngineered to truly compete on talent


ENGINEERED TO TRULY COMPETE ON TALENT

“You’re looking for three things, generally, in a person,” says Warren Buffett. “Intelligence, energy, and integrity. And if they don’t have the last one, don’t even bother with the first two.”

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As the role and impact of the HR profession continue to evolve, we have reached a critical crossroad. Together and now, business leaders and HR professionals have the opportunity to understand the history that brings us to our current situation. We have to be informed by predictable trends, and to make the transformation necessary to result in organizational competitive advantage and HR functional viability.

THE CROSSROAD

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BUILDING RESPECTWE KNOW THAT HR PROFESSIONALS ARE EXPERIENCING THE NEGATIVE VIEWS OF THE FUNCTION DIRECTLY.Some individuals and companies still cling to an old style of personnel administration and policy police, and some leaders and companies more fully recognize the connection between talent and results, and the function of HR is well integrated with the implementation of business strategy.


Lack of powerWalking a tightropeSkeptical clientsNegative view of HR VulnerabilityOverwhelmed

In a recent study, Kahnweiler identified five key challenges faced by successful HR professionals

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DEFINING THE CHALLENGES FOR HR

HR as a profession does not have the same “grounding” in legally mandated processes and reporting as does Finance, so there continues to be more “art” than “science” and much greater variability in the quality and completeness of how the work is defined and delivered.HR in the C-Suite has not been uniformly accepted. CFO Research Services found that HR reports to the CEO in only about 52 percent of companies.The role of HR as a function within organizations might best be described as a scattergram. There are huge variations by industry, global geography, and CEO preferences on what HR is asked to do.HR as a personal skill set must also continue to grow and develop. The activities and skills to deliver the transactional parts of HR are quite different than those required to deliver the transformational parts of HR.The role of HR as policy police has to be put on the table. Some describe HR as a “henchmen for the chief financial officer” and as a “dark bureaucratic force that blindly enforces nonsensical rules, resists creativity, and impedes constructive change.”Twitter @AskTheHRguy - Follow us! | askthehrguy.com | [email protected]

HR must get relevant now or risk continued marginalization

Profession - Art vs. Science

Influence - Boardroom vs Department

Skills - Transactional

vs Transformation

al

Perception - Enforcer vs. Advocate

HR Challeng

es

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EVOLUTION OF HR ACCOUNTABILITIES


Small Business & Guilds - Did not yet even exist - Owners owned the HR issuesIndustrial Revolution - Labor Relations - People as interchangeable parts

Civil Service & WWI - Industrial Relations - Workers’ rights and more formalized processes

Modern Organizations - Organization Effectiveness; Human Capital; Organizational Capability - No new official names, but lots of “morphing” as the transactional parts get outsourced and the transformational parts get defined

Global Economy and e-Enabled Technologies - TBD - Still Evolving, Focus on Talent; Capability; Culture; Consulting—Challenged to Be an Effective Internal Consulting Organization

1920

1940

1960

1980

2000

2014

Pre -1900 - 1900

TIME

Scientific Management & WWII - Personnel Administration - Efficiency experts and more highly evolved HR processes

Civil Rights & Compliance - Personnel - Legal compliance and reporting; “policy police”

Human Relations, the Knowledge/Service Economy, and Mergers & Acquisitions - Human Resources People - Relevance in a fast-changing world; motivation and “human relations”

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THE HR MATURITY SCALE


Stage 1 Stage 2 Stage 3 Stage4 Stage 5 Stage 6 Stage 7

Personnel AdministrationPersonnel Administration

Personnel ManagementEffective HR Management

HRMTransition phase from operational HR to strategic focus

VALUE CREATION

Personnel AdministrationNo Conscious Personnel Management

Personnel ManagementGood Professional Practice

HRMHRM becomes integral to business operations

Effective Business Partner OrganizationOrganisation becomes a holistic system

REACTIVE STRATEGIC

Most ’HR’ departments are really just old style Personnel departments but with a new name. They do lots of new activities (psychometrics, 360 feedback etc.) but none of these activities have much, if any, value because they are not part of a strategy.

HUMAN CAPITAL BARRIER

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FRAMEWORK OF HR ACTIVITIES SUPPORTING BUSINESS STRATEGY


Reward management

Grading

HR Policies Job evaluation

Job analysis

Organization development

Business process design

Strategy Development

Manpower Planning

Training & Development

Leadership & Assessment

Competencies

Performance management

Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance ...

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THE ORGANIZATIONAL CASCADE


Jobs

Organizational structure

Strategy Plan

Organization Mission

Job Analysis describes

contribution

Job Evaluation ‘evaluates’

contribution

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FOUR ROLES AND SIXTEEN ACCOUNTABILITIES OF HR


• Employee Relations• Safety & Workers’

Compensation• Diversity and Saudization

• Compensation• Benefits• HR Information Systems• Compliance

• Talent Acquisition • Talent Management

(Saudization)• Organizational Design• Survey Action Planning• Performance

Management• Training & Development

• Strategic HR Planning• HR as Business Partner• Employer Brand &

Employment Value Proposition Strategic

PartnerChange Agent

Admin Expert

Employee

Relations Expert

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HR CONTINUES TO EVOLVE


Limit Liability & Protect Downside

Impa

ct/C

ontri

butio

n to

the

Busin

ess

Add Value & Maximize Upside

Labor Relations Employee Relations Personnel Human Resources HRBP

LaborRelations

Safety & Workers’

Comp

EmployeeRelations

Benefits

Compliance

Survey Action

Planning

Training &Developmen

t

Compensation

Diversity&

LoclaizationPerformanc

eManagemen

tHR

InformationSystems

Organizational

DesignTalent

Acquisition & Talent

Management

Employer Brand &

EVP

HR asA Business

Partner

Strategic HR

PlanningTalent

Analytics

A Century of Evolution in the Function