managing hr in turbulent times[1]
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© 2003 SHRM
HR: Leading People, Leading Organizations
““Managing HR Talent inManaging HR Talent in
Turbulent Times”Turbulent Times”
David C. Forman, SPHRDavid C. Forman, SPHR
Senior Vice PresidentSenior Vice President
Professional and Business DevelopmentProfessional and Business Development
Society for Human Resource ManagementSociety for Human Resource Management
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© 2003 SHRM
HR: Leading People, Leading Organizations
DefinitionsDefinitions
““Turbulent”(adj.):Turbulent”(adj.): movement ormovement or
agitation.agitation.
““Turbulence”(noun):Turbulence”(noun): confusion.confusion.
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HR: Leading People, Leading Organizations
““The Future Ain’t hat !tThe Future Ain’t hat !t
"sed To #e $$$$"sed To #e $$$$
%ource: &ogi #era%ource: &ogi #era
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HR: Leading People, Leading Organizations
““The Future arrived 'hen 'eThe Future arrived 'hen 'e
'eren’t looing so 'e’re still'eren’t looing so 'e’re still
dealing 'ith issues ideas anddealing 'ith issues ideas and
*rograms that don’t fit the*rograms that don’t fit the
'orld’s ne' realities.”'orld’s ne' realities.”
%ource: +eter Drucer %ource: +eter Drucer
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HR: Leading People, Leading Organizations
hat is the Future of the ,umanhat is the Future of the ,uman
-esources +rofession -esources +rofession
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HR: Leading People, Leading Organizations
Which of These is True? Which of These is True?
!"e ne#t ten years $ill %e t"e HR decade.&
Professor David 'lric"
Human Resource C"ampions&
( am descri%ing your "uman resources
department, and "ave a modest proposal)
*"y not %lo$ it up+&!"omas . Ste$art
Fortune& Maga-ine
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HR: Leading People, Leading Organizations
GeneralGeneral Electric Electric
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General ElectricGeneral ElectricAnnouncement to em*lo/ees of the “,uman -esource 0eadershi* +rogram”Announcement to em*lo/ees of the “,uman -esource 0eadershi* +rogram”
,-0+ (,uman -esources 0eadershi* +rogram),-0+ (,uman -esources 0eadershi* +rogram)
,-0+ 'ill *re*are /ou for a d/namic role in the human dimension of 12. #/ hel*ing,-0+ 'ill *re*are /ou for a d/namic role in the human dimension of 12. #/ hel*ing
to develo* our future leadershi* /our 'or 'ill influence the direction of our com*an/.to develo* our future leadershi* /our 'or 'ill influence the direction of our com*an/.
+rogram %ummar/+rogram %ummar/
A 34/ear entr/4level *rogram consisting of 5 challenging and in4de*th 64monthA 34/ear entr/4level *rogram consisting of 5 challenging and in4de*th 64month
assignmentsassignments
#road business sills develo*ed via hands4on e7*erience in t'o ,- assignments#road business sills develo*ed via hands4on e7*erience in t'o ,- assignments*lus a third assignment in an area such as finance 8ualit/ or business develo*ment*lus a third assignment in an area such as finance 8ualit/ or business develo*ment
Formal classroom training in advanced human resources techni8ues and businessFormal classroom training in advanced human resources techni8ues and business
conce*tsconce*ts
27tensive contract 'ith *eers and senior business leaders from around the 'ord27tensive contract 'ith *eers and senior business leaders from around the 'ord
27*ansion of /our no'ledge base critical *roblem4solving sills and net'or of27*ansion of /our no'ledge base critical *roblem4solving sills and net'or of
valuable contactsvaluable contacts
9andidate 9riteria9andidate 9riteria
Demonstrated academic e7cellence business acumen and leadershi* abilit/Demonstrated academic e7cellence business acumen and leadershi* abilit/
%elf4confidence strong anal/tic *roblem4solving sills and e7ce*tional%elf4confidence strong anal/tic *roblem4solving sills and e7ce*tional
communication sillscommunication sills
#A;A in #usiness or an ,-4related disci*line *lus several /ears 'or e7*erience#A;A in #usiness or an ,-4related disci*line *lus several /ears 'or e7*erience
*referred*referred
1eogra*hic fle7ibilit/ and global mindset< able to o*erate across cultures1eogra*hic fle7ibilit/ and global mindset< able to o*erate across cultures
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HR: Leading People, Leading Organizations
GE’s HR-Development OpportunitiesGE’s HR-Development Opportunities
• 2m*lo/ee4relations *roblem4solving assignment2m*lo/ee4relations *roblem4solving assignment• ,-4generalist assignment,-4generalist assignment• Technical4s*eciali=ation assignmentTechnical4s*eciali=ation assignment• >rgani=ation4effectiveness intervention e7*erience>rgani=ation4effectiveness intervention e7*erience• +rocess4consulting e7*erience+rocess4consulting e7*erience• 9ommunit/4relationshi* e7*erience9ommunit/4relationshi* e7*erience• %tretch job assignment%tretch job assignment
• 27*osure to global issues27*osure to global issues• %taff assignment%taff assignment• 9ross4functional e7*erience9ross4functional e7*erience• Fi74it assignmentFi74it assignment• %tart4u* assignment%tart4u* assignment• 0arge4scale change effort0arge4scale change effort• >rgani=ation4structuring assignment>rgani=ation4structuring assignment
• 9or*orate assignment9or*orate assignment• ,- functional4leadershi* assignment,- functional4leadershi* assignment• #usiness4team *artnershi* e7*erience#usiness4team *artnershi* e7*erience• #usiness4leaders su**ort assignment#usiness4leaders su**ort assignment• 27*osure to role models27*osure to role models• 27tended *rofessional net'or27tended *rofessional net'or
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HR: Leading People, Leading Organizations
• “This business game is all aboutwinning. The team that wins is theteam with the best players. Your jobis to field the best players.”
• Jac !elch" #ormer $%& 'eneral %lectric$orporation
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HR: Leading People, Leading Organizations
Which of These is True? Which of These is True?
!"e ne#t ten years $ill %e t"e HR decade.&
Professor David 'lric"
Human Resource C"ampions&
( am descri%ing your "uman resources
department, and "ave a modest proposal)
*"y not %lo$ it up+& !"omas . Ste$artFortune& Maga-ine
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HR: Leading People, Leading Organizations
The $ontainer (tore
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HR: Leading People, Leading Organizations
The $ontainer (tore
The $ontainer (tore has )& HR &fficer or
*epartment+++++++++
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HR: Leading People, Leading Organizations
Which of These is True? Which of These is True?
!"e ne#t ten years $ill %e t"e HR decade.&
Professor David 'lric"
Human Resource C"ampions&
( am descri%ing your "uman resources
department, and "ave a modest proposal)
*"y not %lo$ it up+& !"omas . Ste$artFortune& Maga-ine
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HR: Leading People, Leading Organizations
The 2ssential ?uestionThe 2ssential ?uestion
,o' can ,- *rofessionals
*roduce significant valueand deliver results
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HR: Leading People, Leading Organizations
#ecome#ecome aa %trategic%trategic
#usiness +artner #usiness +artner
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HR: Leading People, Leading Organizations
&) ,%-)' “(TRT%'-$ /RT)%R”&) ,%-)' “(TRT%'-$ /RT)%R”
Only 34% of HR
Executive Are Viewed
As “Strategic Partners”
SHRM/BSCol Survey, 2002
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HR: Leading People, Leading Organizations
,usiness %n0ironment1
!orforce issues are at the top of theagenda for $%&s
-ncreasing recognition among businessleaders that people represent the only real
competiti0e ad0antage a company can
sustain
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HR: Leading People, Leading Organizations
!here is HR 'oing in These
Turbulent Times 2
• There can be an %3$-T-)' future for the
profession.
• ,ut human resource professionals ha0e to
be prepared" willing and able to embrace
that future+
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HR: Leading People, Leading Organizations
!hat re The $urrent ,usiness!hat re The $urrent ,usiness-ssues-ssues
!hat are HR /rofessionals (aying2!hat are HR /rofessionals (aying2
!hat are $%&4s (aying2!hat are $%&4s (aying2
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HR: Leading People, Leading Organizations
The Top (e0en
/eople5Related HR -ssues
6. Retaining Talent7. ttracting Talent with $ritical (ills
8. -mpro0ing !orplace /erformance
9. 'aining $ontrol of Health $are $osts
:. ;sing the !eb %ffecti0ely for -nformation. ,uilding )ew !orforce (ills for the )e?t Round of
'rowth
(&;R$%1 Towers /errin inter0iew of HR /rofessionals
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HR: Leading People, Leading Organizations
T&/ $%& -ssues1
$ustomer @oyalty
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T&/ $%& -ssues HR4s !or
$ustomer @oyalty
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© 2003 SHRM
HR: Leading People, Leading Organizations
HR Has Bey &pportunities
'reatest opportunities for impact1
6. (trategic business partner1 part of the business
7. pplying new technology
8. chie0ing competiti0e ad0antage through people
9. Mergers C cDuisition < business reconfiguration
:. Reducing costs < HR metrics
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HR: Leading People, Leading Organizations
Key HR Transformations Key HR Transformations
Develo*ing a @e' vision and Theor/ of theDevelo*ing a @e' vision and Theor/ of the
9ase9ase
%hifting to 9onsulting and 9lient %ervice%hifting to 9onsulting and 9lient %ervice
>rientation>rientation
A**l/ing -e42ngineering and or -e4DesignA**l/ing -e42ngineering and or -e4Design
+rinci*les to the ,- Function and !ts -oles+rinci*les to the ,- Function and !ts -oles
+roducing >*erational alue+roducing >*erational alue
(ource1 (HRM #oundation(ource1 (HRM #oundation
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HR Transition HR Transition#unctional (pecialist to (trategic ,usiness /artner#unctional (pecialist to (trategic ,usiness /artner
@ature of ,-
*rograms and function
@ature of ,- strateg/
and *olic/
>rgani=ation of ,-
function
+rofile of ,-*rofessionals
-es*onsive
>*erational
!nternal
,- de*artment fullres*onsibilit/
2m*lo/ee advocate
Functional structure
-e*orting to staff
9areer in ,-
%*ecialist
0ac of financial sills
9urrent focus
onolingual
@ational *ers*ective
Functional Specialist+roactive
%trategic
%ocietal
,- and linemanagement share
res*onsibilit/
#usiness *artner
Fle7ible structure
-e*orting to line
-otation
1eneralist
Financial e7*ertise
Focus on future
ultilingual
1lobal *ers*ective
Business Partner
26
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HR: Leading People, Leading Organizations
)ew $ompetencies for (trategic
Human Resource @eaders
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HR: Leading People, Leading Organizations
#ramewor #or HR $ompetencies
#usiness -esultsActivities9om*etencies
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© 2003 SHRM
HR: Leading People, Leading Organizations
HR $ompetency *omainsHR $ompetency *omains
• (trategic $ontribution
• /ersonal $redibility
• HR *eli0ery
• ,usiness Bnowledge
• HR Technology (ource1 ;ni0ersity of Michigan ,usiness (chool(ource1 ;ni0ersity of Michigan ,usiness (chool
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HR: Leading People, Leading Organizations
HR $ompetency *omainsHR $ompetency *omains
• (trategic $ontribution 98E98E
• /ersonal $redibility 78E78E
• HR *eli0ery 6FE6FE
• ,usiness Bnowledge 66E66E
• HR Technology :E:E
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HR: Leading People, Leading Organizations
)ew Role and a )ew Title for
HR /rofessionals
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HR: Leading People, Leading Organizations
(ources of $ompetiti0e d0antage(ources of $ompetiti0e d0antage
%conomic<
#inancial
$apability
(trategic<
Mareting
$apability
Technological
$apability
“>rgani=ational 9a*abilit/”
David "lrich and Dale 0ae
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HR: Leading People, Leading Organizations
&rganiGational$apabilitythe )ew Role for HRI
Sources of Competitie !dantageSources of Competitie !dantage
%conomic<
#inancial
$apability
(trategic<
Mareting
$apability
Technological
$apability
“>rgani=ational 9a*abilit/”
David "lrich and Dale 0ae
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HR: Leading People, Leading Organizations
&rganiGtional $apability
• “ &rganiGational $apability is a business4s
ability to establish internal structures and
processes that influence its members to createorganiGation5specific competencies and thus
enable the business to adapt to changing
customer and strategic needs”.
*. ;lrich C *. @ae 6KI. &rganiGational
$apability”. John !iley
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HR: Leading People, Leading Organizations
The )ew HR Title
$hief &fficer
*irectorI
of “&rganiGational $apability”
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6. To create programs of recruitment"de0elopment and retention of world class
talent and leaders to support the growth
of the organiGation.
The )ew HR Job *escription
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6. To create programs of recruitment"de0elopment and retention of world class
talent and leaders to support the growth
of the organiGation.
7. To champion the nurturing of a culture"
aligned with organiGational strategy" to
bring about organiGational commitment
to ethical practices" lifelong learning and a
sense of responsibility to all staeholders.
The )ew HR Job *escription
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© 2003 SHRMHR: Leading People, Leading Organizations
6. To create programs of recruitment" de0elopmentand retention of world class talent and leaders to
support the growth of the organiGation.
7. To champion the nurturing of a culture" aligned
with organiGational strategy" to bring about
organiGational commitment to ethical practices"
lifelong learning and a sense of responsibility to
all staeholders.
8. To create programs that will continuously raise
the competencies and capabilities of the members
of the organiGation to assure achie0ement of
organiGational objecti0es.
The )ew HR Job *escription
S
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© 2003 SHRMHR: Leading People, Leading Organizations
Wall Street "ournal Wall Street "ournal
#ice President, Human Resources#ice President, Human Resources
'lobal #ortune :KK $ompany of 8K"KKK employees" the leader in its
field" is seeing a $orporate Aice /resident of Human Resources with a
strong bacground and focus in organiGation effecti0eness" de0elopment and
training. “/artnering” with corporate senior management and business sector
heads to bring forth a new business culture" the A/ will establish HR as a
strategically focused internal consulting arm to the company. The successful
candidate will ha0e a businessperson4s perspecti0e and a demonstrated trac
record in change management" re5engineering" leadership de0elopment and
training. Respond to1 M5=>" /.&. ,o? 6>6F7" /hiladelphia" / 66K: %&%.
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© 2003 SHRMHR: Leading People, Leading Organizations
• “$hange is the law of life" and
those who loo only to the past or
present are certain to miss the
future.”
• (ource1 John #. Bennedy
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© 2003 SHRMHR: Leading People, Leading Organizations
Than You
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© 2003 SHRMHR: Leading People, Leading Organizations
Luestions /lease2222222222222222222
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© 2003 SHRMHR: Leading People, Leading Organizations
Suggested ReadingsSuggested Readings*a0e ;lrich. Human Resource $hampions" Har0ard ,usiness (chool /ress.
Jeffrey . Mello. (trategic Human Resource Management" (outh5!estern.
*a0e ;lrich C *ale @ae. &rganiGational $apability. John !iley and (ons"
,ecer" Huselid and ;lrich. The HR (corecard" Har0ard ,usiness (chool
/ress
Jim $ollins. 'ood to 'reat. Harper$ollins /ublishers" -nc.
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(er0ice
d0ice
(trategy
(trategy
d0ice
(er0ice-T
(elf5
(er0ice
&ut
(ource
(hared (er0ices
&ld
)ew)ew
Source: Prof. E !a"ler# spea$in% at SHR& 'ounation T(ou%(t !eaer )onference# *u%ust# +,,+
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Topic &utsourcecompletely
&utsourcepartially
$ompletelyin5house
9K6I dministration 88.7E :6.6E 6:.>E
%mployee ssistanceE
/ension dministration 7>.:E 9:.E 7=.=ETemporary (taffing 7>.>E 99.KE 7F.8E
,acground $hecs 9K.FE 7=.=E 87.:E
Training and Management*e0elopment /rograms
:.9E :6.6E 98.:E
%?ecuti0e *e0elopment and $oaching >.=E 9=.=E 9:.EHealth $are ,enefits dministration 68.>E 8.>E 9=.=E
%mployee benefit administration >.9E 96.:E :6.6ENote: Of respondents whose organizations offer that particular function.
SOU!": S#$ %ee&l' Online Poll ( )ul' 2**+
What HR Functions, If Any, Does Your Organization
Outsource? (Please Select All That Apply.)
i f A O i i
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Topic &utsource
completely
&utsource
partially
$ompletely
in5house/ayroll F.:E 9K.6E :6.9E
Ris Management F.:E 8>.=E :8.E
%?ecuti0e (taffing 9.FE 8.8E ::.E
%mployee Relocation 6F.:E 77.KE :.:E
HR-( (election" Training and-mplementation
9.7E 8:.>E =K.6E
Recruitment K.=E 86.8E =F.7E
%?ecuti0e $ompensation and -ncenti0e/lans
6.7E 6=.6E F7.>E
/olicy !riting 6.9E 68.7E F:.9Edministration of $ompensation and-ncenti0e /lans
6.:E 67.=E F:.E
!age and (alary dministration 7.8E F.=E F.6ENote: Of respondents whose organizations offer that particular function.
SOU!": S#$ %ee&l' Online Poll ( )ul' 2**+
What HR Functions, If Any, Does Your Organization
Outsource? (Please Select All That Apply.)
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!hy *oes Your &rganiGation &utsource HR #unctions2
/lease (elect ll That pply.I
$hoice $ount /ercent of (ample
(a0e Money.=E
&ffer (er0ices !e &therwise $ould )ot == 6=.FE
llow the $ompany to #ocus on its $ore ,usiness :> 69.:E
&ther 6 9.FE
!e *o )ot $urrently &utsource ny HR #unctions 6F= 9>.8E