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HR Transformations:New tendencies in the HR Function
and Human Capital ManagementAssoc Prof Charles-Henri Besseyre des Horts, PhD
HEC Paris [email protected]
Agenda1. Evolution of Human Resources Management (HRM)
2. Critical HR practices
3. Five domains of HR transformations
• Cultural change
• Value creation
• Organizational agility
• Digital revolution
• Employee engagement
4. Future of HR : Outside-in roleHR transformations Prof CH Besseyre des Horts
"People-Oriented" Performance"Creating People Advantage" BGC 2012 Study
HR transformations Prof CH Besseyre des Horts
Evolution of HRM : Expertise + Sharing
AdministrativeLegal
Psychological
ManagerialStrategic
Innovative
Expertise1945 1965 1980 1995 2013
Lin
e M
an
ag
ers
'R
esp
on
sib
ilit
y
Marketer
Collective
Individual
(Diversity)
(Tools)
(Motivation)
(Protection)(Discipline)
(Business Partner)(Added Value)
Incubator (People Partner)
HR transformations Prof CH Besseyre des Horts
External & Internal Challenges
Local, National
Authorities,
Stakeholders
Customers
Providers
Competitors
Partners
Gen Y Employees
Managers
Unions
Shareholders
Financial
Markets
CHANGE
Internet
Social Networking
Internationalization
HR transformations Prof CH Besseyre des Horts
Key HR Tensions What is centralized...
…or decentralized
Combination of rolesbetween HR…
..and line managementWhat is done
internally or
...outsourced
Source : adapted from Bournois, 2008, 2010
Individual
Collective
Hard
Soft
HR transformations Prof CH Besseyre des Horts
HR / non HR Perceptions"Creating People Advantage" BGC 2012 Study
HR transformations Prof CH Besseyre des Horts
Most Critical HR Practices"Creating People Advantage" BGC 2012 Study
HR transformations Prof CH Besseyre des Horts
Low NeedTo Act
Strong NeedTo Act
5 Domains of HR
Transformations1. Cultural Change
2. Value Creation
3. Organizational Agility
4. Digital Revolution
5. Employee Engagement
HR transformations Prof CH Besseyre des Horts
Cultural Change
CLAN(Loyalty)
ADHOCRACY(Innovation)
BUREAUCRACY(Rules)
MARKET(Performance)
ClosedSystem
OpenSystem
Flexibility / LT
Rigidity / ST
Source : Adapted from Quinn & Cameron, 1998,2005
1980's 1990's
2000's
HR transformations Prof CH Besseyre des Horts
Cultural Change & HRM• Corporate culture and values represent the "glue" of the firm, they are founded
on basic assumptions and present beliefs
• Culture and values are becoming important in highly changing environments,
they represent guides for actions
• Most HR activities are concerned : recruitment, integration, training,
development, mobility, promotion, evaluation, compensation & benefits,
coaching…
• Matrix Values/Performance : an example of HR contribution
Low Performance High Performance
High on Values Training, development,
evaluation.
Mobility up (promotion, bonus,
development)
Low on Values Mobility out, coaching Second chance, coaching,
mobility
HR transformations Prof CH Besseyre des Horts
HRM Potential of
Value Creation
Administration Administration
StrategyStrategy
Traditional Approach VC Approach
ProcessesProcesses
HR transformations Prof CH Besseyre des Horts
Value Creation & HRM• Beyond the business partner role, HRM can play a more proactive role in bringing
innovative ideas and solutions to strategic issues : from a cost to a value creation view
of HRM
• Value creation role of HRM becomes important with the increasing number of
stakeholders in a sustainable development framework (e.g. : shareholders,
customers, suppliers, employees, community…)
• Value creation through HRM can occur in many strategic areas :
– Corporate culture : HR programs (e.g. training) reinforcing the firm’s values
– Organizational change : HR initiatives developing individual/collective resilience
– Company attractiveness : employer branding and induction programs
– Company performance : performance management system (assessment/rewards)
– International expansion : development of global and local HR processes (balance)
• Measurement of HR contribution to strategy becomes compulsory
HR transformations Prof CH Besseyre des Horts
• Organizational agility characteristics :
– Change as the DNA of the organization
– Anticipation and forecasting through the weak signals
– Flexible structures and network as dominant organizational forms
– Processes permanently questioned and revisited
– Lifelong learning and the right to fail
– Managerial upheaval with a real inversion of the pyramid
– Empowerment of "value zone" employees
• HRM contributions
– Highly visible and proactive role of HR in the change strategies
– Reinforcement of agility through HR policies and practices : recruitment, training,
development, performance management, compensation & benefits, career
management & mobility….
Organizational Agility & HRM
HR transformations Prof CH Besseyre des Horts
Digital Revolution & HRM• Digital revolution
– Web2.0 : one to many � many to many, top/down-bottom/up, content may be
dissociated from the tool
– Mobility and nomadic tools : anytime, anywhere, anybody
– Explosion of social networks (SN) :+ 1 billion users on Facebook, +200 million on
Linkedln, development of company internal social networks….
– 95 % of firms in Europe declare to use social networks in the recruitment
processes to source potential talents (2013)
• Consequences for HRM
– Time pressures, "crowd" effect , transparency imperative….
– In order to meet these challenges, HRM will have to revisit most of the
processes : strategic workforce planning, recruitment, training , compensation &
benefits, careers & mobility…
HR transformations Prof CH Besseyre des Horts
Recruitment 2.0 : Equality between Recruiters & Candidates !
Recruitment
Marketing HR :
Employer Brand
Informations about the candidate
Job search
Personal Marketing :
Individual digital identity
Informations about the
company and the recruiter
Re
cru
itm
en
t2
.0e
-re
cru
itm
en
t
20
07
> S
ocia
l N
etw
ork
s 1
99
8 >
Jo
bb
oa
rds
The company& and Recruiter
The Candidatewww.siteEntreprise.com
Source : Apec, 2011HR transformations Prof CH Besseyre des Horts
Employee Engagement & HRM• Engagement is the extent to which employees put discretionary effort into their work, in the
form of extra time, brainpower and energy for the company success (Towers Perrin). A model :
• HRM activities fostering employee engagement : values, CSR, training, development, rewards strategy … employer branding
Source : http://www.boston.com/jobs/nehra/062308.shtml
HR transformations Prof CH Besseyre des Horts
Employer Brand
The unique and
differentiating promise a
business makes to its
employees and potential
candidates
Employee experience
Actual delivery of the
promise throughout the
employee lifecycle
Brand strength
Attraction of the right candidates
Employee engagement and
retention
Differentiation from competitors
Customer engagement and
retention
+
• Attraction and retention of high quality employees is a competitive
necessity in order to differentiate from competitors
• HRM activities directly involved in employer branding : recruitment,
integration, training, development, compensation & benefits...
Employer Branding
HR transformations Prof CH Besseyre des Horts
Future of HR: Outside-in Role• Proposed by Dave Ulrich (and his colleagues) as the next wave of HR with a focus on external
issues by taking into account:
– The context and the setting in which the business operates
– The expectations of key stakeholders (customers, employees, managers, investors, communities, suppliers, partners….)
– The strategies that give to the firm a unique competitive advantage
• It is an appeal to go beyond the traditional boundaries of HRM : geographical, functional, technical…
• The outside-in role for HRM, for example, leads :
– To use customers’ expectations as standards for recruitment
– To involve investors and customers in the design of training programs
– To include communities environmental goals in performance management
– To take into account customers’ satisfaction index in the bonus package
• This role is supported by the development of 6 HR competencies
Source : Ulrich D., Younger, Brockbank & Ulrich M., 2012
HR transformations Prof CH Besseyre des Horts
6 Competences to Develop Outside-In Role
Strategic Positioner
Credible Activist
Change
Champion
HR Innovator &
Integrator
Capability
Builder
Technology
Proponent
Source : Ulrich D., Younger, Brockbank & Ulrich M., 2012HR transformations Prof CH Besseyre des Horts
Example of an
European MNCXXX BUSINESS AWARENESS
ROLE OF MANAGERFINANCE
HR COMPETENCIES
Know XXX business
Meet with Customer
Coach, Be a Leader
HR as Influential Business PartnerMaster financial basics,
Manage people costs and
productivity
Report on significant indicators
Master Key HR Competencies
Recruitment, Reward, Training and Development, Career Management,
Change Management, Communication and Employee Satisfaction etc
Source : Internal document, XXX, 2011HR transformations Prof CH Besseyre des Horts