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STRATEGIC
HUMAN
RESOURCE
MANAGEMENT
15 August 2016
PROGRAMME CUSTOMISATION – KZN DSR
A Steep Contribution Curve
Pursuing Excellence in Organisation Performance for Management and Leadership Delegates
Global Leadership
Vision
Strategy
Execution
Competencies
Differentiation
Values Driven
Driving
Performance
Relevance to
Sponsoring
Organisation
Execution
Capability
Process
Executive Leadership Development
Programme (ELDP)
Senior Management Development
Programme
(SMDP)
New Managers Development
Programme (NMDP)
Su
cc
es
sfu
l Ex
ec
utio
n
2016 2017 2018
KZN
DSR
Organisation
Value
Management Development
Programme (MDP)
Contribution of Leadership Development Programmes to KZN DSR
Performance
Contribution of Leadership Development Programmes to KZN DSR
Performance DESIGN: COMPETENCIES (VARIABLES)
• Context: SHRM
• HR Systems
• HR Processes –
Managing People and Change
in a VUCA World
• HR and Performance Management
AGENDA
• War for talent (supply and demand)
• VUCA World
• Recession and downturn
• Skills > Productivity > Performance > Competitiveness > Job
Creation > Standard of Living/Quality of Life (per capita GDP)
• Global trends and examples
CONTEXT: SHRM
Source: Goldman Sachs (2014)
2030: WHAT THE WORLD WANTS(Changing Global Consumption Patterns)
Source: World Health Organisation
2050: WORLD POPULATION GROWTH
Average hourly
compensation of
production
workers:
2003 vs. 2009
Source: Boston Consulting Group34.46
25.34
22.61
20.14
20.01
13.01
5.47
3.9
3.83
3.28
2.38
1.68
1.27
30.6
21.86
20.68
17.87
17.77
9.99
3.64
2.75
2.7
2.45
1.5
1.12
0.8
3.86
3.48
1.93
2.27
2.24
3.02
1.83
1.15
1.13
0.83
0.88
0.56
0.47
0 5 10 15 20 25 30 35
Germany
US
Japan
UK
France
Korea
Czech Republic
Brazil
Poland
Mexico
Russia
India
China
US$
Increase
2003
2009
*
Source: Vosburgh, Evolution of HR: Developing HR as an Internal Consulting Organisation p.15
Aligning HR Strategy to Business Strategy
• Context: SHRM
• HR Systems
• HR Processes –
Managing People and Change
in a VUCA World
• HR and Performance Management
AGENDA
ROAD MAP
Sourc
e T
ale
nt
Change M
gm
t
Com
pensa
tion
Incenti
ves
Success
ion
Leaders
hip
Benefi
ts
Locati
on
Cult
ure
/fi
t
Valu
es/
eth
ics
Skills, Reward Values, Motivation
Core Business Capability
Strategic
Priorities
Focus
People
Capability
Work
-Lif
e
Tim
eline
Talent Acquisition (Attraction)
People Engagement (Relationship)
People Retention (Development)
HR SYSTEMS
Planning to return to country of origin in the future
56
36
8
0
10
20
30
40
50
60
Yes Don't know No
%
When planning to return to country of origin
21
3028
710
4
0
5
10
15
20
25
30
35
1-2 3-4 5-6 7-8 9-10 11+
Years
%
Number of organisations employed with since
completing last qualification
53
30
124 1
0
10
20
30
40
50
60
One Tw o Three Four Five +
%
Preferred country for relocation Rank
UK 1
US 2
China 3
Australia 4
France 5
Canada 6
Switzerland 7
Spain 8
Germany 9
India 10
INTERNATIONAL MOBILITY
FINDING THE RIGHT FIT
Individual
Values
&
Goals
Job Satisfaction
Lifestyle Compensation
Talent paradox: high unemployment but employers can’t find skills needed
Source: Linkedin (2016), Global Recruiting Trends, p. 9
Measuring Quality of Talent Hired
NATIONAL PATTERNS OF CORPORATE CULTURE
OF CORPORATE CULTURE
Source: Riding the Waves of Culture, Fons Trompenaars
INCUBATOR GUIDED MISSILE
FAMILY EIFFEL TOWER
Decentral
Central
Informal Formal
Sweden
France
Belgium
India
JapanSpain
USA
Canada
UK
Denmark Netherlands
Germany
CULTURE
• Attitude and atmosphere of a company
• Fit person and culture (unspoken rules)
• Reading the cultural gaps (organ
transplant/rejection)
• Examples: lifestyle, pace of change, internal
competition, power centralised?
VALUES
Important or lasting beliefs or ideals shared by the members of a culture
about what is good or bad and desirable or undesirable. Values have a
major influence on a person’s behaviour and attitude and serve as
broad guidelines in all situationsSouce: BusinessDirectory.com
• Values, behavior and performance
• Global organisations
• Imposed versus emergent culture
● Integrity ● Fun ● Customer Service ● Honesty ● Excellence ● Reliability
Talent Acquisition (Attraction)
People Engagement (Relationship)
People Retention (Development)
HR SYSTEMS
PEOPLE ENGAGEMENT
Source: ILO (2016), Framework Strategy for Engagement in Africa, p. 16.
Engagement in Fragile States in Africa
EFFECTIVE TEAMS
- Why work in a team?
- A good team produces better results than an individual working alone
(ideas, solutions, scope)
- Dynamic teams
Planned process:
1. Introductions
2. Meetings
3. Ground rules
4. Project task
5. Roles
6. Problems
THINKING HATS
Human Knot
Everyone stands in a circle and puts
their right hand into the middle. Clasp
hands with someone across the
circle.
Everyone put their left hand into the
middle of the circle and clasp the
hand of a *different* person.
The team is now in a “knot”.
Object: team to untangle itself without
releasing anyone’s hand.
Conflict and dispute resolution (CCMA)
Legislation framework
Unionised bargaining
Implications for business and economy?
EMPLOYEE ENGAGEMENT: SA?
Case: Marikana - Mining Industry
Outlook for Mining Industry
CASE READINGS (ENGAGEMENT)
Q: Could Marikana tragedy have been averted?
Q: If yes, what actions could have been taken?
Q: If no, why not?
Readings/References:
Marikana as a Tipping Point, R. Harvey, SAIIA
Marikana Massacre: Historical Overview of the Labour Unrest in the
Mining Sector in South Africa, C. Twala, SAPSS
GLOBAL COMPENSATION
- $100,000 (basic gross salary)
- 7,550*0.10 = 755
- 30,650-7,551*.15 = 3,465
- 74,200-30,651*.25 = 10,887
- 100,000-74,201*.28 = 7,224
22,331
Add:
FICA tax: 7,650
7.65% of gross income
Total income tax: 29,981
(30%)
- £50,000 (basic gross salary)
- 2,150*.10 = 215
- 33,300-2,151*.22 = 6,853
- 50,000-33,301*.40 = 6,680
13,748
Add:
NI contributions:
11% to 34,840 3,832
Total income tax: 17,580
(35%)
Income Tax: US vs. UK
Non-resident
15% on earnings
Singapore
Resident individual
0-20% incremental scale
SA
40% marginal tax rate (>R638 600)
GLOBAL COMPENSATION
Income Tax: SA vs. Singapore
COMPENSATION /PERFORMANCE
- Communication
- Entrepreneurship
- Analytics
Skills and abilities most important to recruiters when hiring
international candidates
67
66
61
56
56
53
51
39
39
33
33
33
31
28
28
28
22
17
11
8
6
5
0 10 20 30 40 50 60 70 80
Communication skills and language fluency
Entrepreneurial, creative, innovative thinking
Analytical reasoning
High potential - ability to learn new skills
Self-starter, goal driven and independent
Leadership skills
Strategic thinking
Flexibility and adaptability to change
Participating in and leading international teams
International business experience
Ethics and values
Open mindedness
Quantitative skills
Aligned with corporate culture
Operating in a multi-cultural environment
Emotional intelligence and stability
Technical skills requirements
Transparency
Managing risk and uncertainty
Project management
IT capability
Other
%
Importance of
Competencies
Importance of
Competencies
67
66
61
56
56
53
51
39
39
33
33
33
31
28
28
28
22
17
11
8
6
5
60
23
25
39
28
30
25
36
31
43
14
22
12
18
49
26
27
6
15
17
3
5
0 10 20 30 40 50 60 70 80
Communication skills and language fluency
Entrepreneurial, creative, innovative thinking
Analytical reasoning
High potential - ability to learn new skills
Self-starter, goal driven and independent
Leadership skills
Strategic thinking
Flexibility and adaptability to change
Participating in and leading international teams
International business experience
Ethics and values
Open mindedness
Quantitative skills
Aligned w ith corporate culture
Operating in a multi-cultural environment
Emotional intelligence and stability
Technical skills requirements
Transparency
Managing risk and uncertainty
Project management
IT capability
Other
%
MBA Graduates
Recruiters
Comparison: recruiters and MBA graduates
AT QA TD CP CS MP EC IN
Business Core Function
Investment Management
COMPETENCIES
AT QA TD CP CS MP EC IN
Business Core Function
Production and Operations Management
COMPETENCIES
PRICES AND COST OF LIVING
- London weighting allowance
(c. 10%)
- Accommodation
(rent/mortgage)
- Food, meals
- Location
- Travel/car/petrol/rail
LIFESTYLE
- US and Asia: longer
working hours
- UK: longer than rest of
Europe
- Africa and SA?
Talent Acquisition (Attraction)
People Engagement (Relationship)
People Retention (Development)
HR SYSTEMS
• Immediacy
• Employer brand value (EVP)
• Talent engagement (key to retention)
• Employment value proposition
• Talent challenges
• Developed versus Emerging/Dynamic Markets
• Global talent pool
• Talent management in Africa/South Africa
TALENT RETENTION AND DEVELOPMENT
• What are you worth?
• What determines your value in the marketplace?
• Potential and experience
• Trends in supply and demand (across sectors, functions,
• geographies
THREE CAREER PHASES
PHASE 1:
Promise
Perceived Value
(Potential +
Experiential)
PHASE 2:
Momentum
PHASE 3:
Harvest
Value of
Human
Capital
Career Timeline
Career Beginning Retirement
Experiential value
Source: Citrin & Smith, 2003
LEARNING FROM LEADERS
What makes a successful leader?
• Overcome permissions paradox
• 20/80 performance principle
• Pragmatic and authentic leadership
• Find right fit (strengths, passions, people)
LEADER PROFILE : Greg Brenneman
“Making the complex simple”
• - Partner & VP: Bain & Company
(33)
• - CEO & President: Continental
Airlines (36)
• - CEO & President: PwC Consulting
(40)
“You've got to find what you love”
- Co-founded Apple at 20
• - Fired from Apple at 30
• - Founded Pixar
• (animation studio)
• - Returned to oversee Apple
growth (iPod)
LEADER PROFILE: Liu Chuanzhi
“Perseverance – stick to your goals
and keep trying all the time”
• - Lenovo Group Chairman
• - 1984: founded Legend as a
distributor of foreign PCs
• - 2004: China’s largest computer
manufacturer
• - Returning to core computer
business
LEADER PROFILES: South Africa
LEADER PROFILES: South Africa
Bonang Mohale
Greg Solomon
Patrice Motsepe
Wendy Luhabe
• Pravin Ghordan
Brian Molefe
Bridgette Radebe
Reuel Khoza
• Context: SHRM
• HR Systems
• HR Processes –
Managing People and Change
in a VUCA World
• HR and Performance Management
AGENDA
CHANGE MANAGEMENT
What is Change Management ?
Psychology of change:
– How to change attitudes and behaviour?
– Three levels of change:
1. Direct: companies act to achieve outcome
(e.g. divest non-core assets)
2. Adjust practices:
(e.g. new targets, waste reduction, innovation)
3. Culture change:
(e.g. vision, competitiveness; common to all in firm)
Sources: Kotter, Lawson
CHANGE MANAGEMENT
Conditions for changing mind-sets:
• How to change attitudes and behaviour?
• A purpose to believe in (Festinger, actions/beliefs, cognitive dissonance)
• Reinforcement systems (Skinner, conditioning, over time?)
• Skills required for change (Kolb, adult learning)
• Consistent role models (individuals and groups, across levels)
Transformation:
• On a large scale
• New ways of working
• New behaviours
• Leadership role?
• People processes as a source of competitive advantage
• Trust and commitment
Source: Kotter (2007)
Harvard Business Review p. 4
Leading Change: 8 Steps to Transforming an Organisation
• Context: SHRM
• HR Systems
• HR Processes –
Managing People and Change
in a VUCA World
• HR and Performance Management
AGENDA
• Aligning HR strategy with the strategy
of the business/organisation
• Adding value to the customer supply
chain process
• Understanding the bottom line and
key deliverables (financial
statements, economics, marketing
principles)
• Effectively using HR data and
information (capital asset pricing) in
decision making
• Stakeholder advocacy (community
and client engagement)
STRATEGIC HR BUSINESS PARTNERING
Source: The Human Resource function
contribution to human development in South
Africa, P. Abbott
‘Employee advocacy’ – bridging work and
society
• Strategy
• Organisation
• Culture
• Leadership
HIGH PERFORMANCE ORGANISATIONS
Up to 50% of senior management time is taken up with personnel matters.
Senior management spends less than 1% of their time on strategic planning.
Companies focused on issues have 16% greater profits than companies
focused on business units.
Harvard Business Review 2006
STRATEGY?
Finding the right issues and then focusing on them with all your
senior management attention is the only way forward in
business today.
Prof. Peter D Skinner Texas A&M
‘A Review of all major Business Schools in the USA’
EFFECTIVE ORGANISATIONS
Tight focus on customers and local markets
Flat structures and decentralized controls
Empowered Management and staff
A concentration on core activities
Controls that are both loose and tight
Consultative decision-making
Source: Ivarsson (2014) Best Practice in Sport and Physical Activity for Health Promotion, p.27
‘5’ Cs of Sport for Health Promotion
Source: Abbott (2013) adapted from Ulrich & Brockbank, p. 13
Roles of the HR Leader (People Advocacy)
Leadership
• Influencing
• Clear direction
• Dynamic
• Mobilise human resources
• Learning organisation (embrace change)
• Achieve measurable results
HIGH PERFORMANCE ORGANISATIONS
STRATEGIC
HUMAN
RESOURCE
MANAGEMENT
15 August 2016