Future Human Resource Practices and the Changing Function

Current Developments in HRM in Australian Organisations

(Sheehan, Holland & De Cieri 2006)

• Improved educational qualifications (46% graduate degrees)

• Younger people entering the profession through HR functional
area – restricted exposure to a broader business experience
(Sheehan, 2005 case studies suggest reduced credibility)
• Increasing levels of strategic involvement (49% active
involvement & 25% HR Board representation)
• New skill sets & rewarding roles however changes to IR &
devolution of ‘ee-’er relationship increase employee-IR activities
• Limiting influences e.g. understanding value of HRM to bottom
line 45%, lack of acceptance by snr mgrs 22% or support from
CEO 17% or culture 15% consistent with Lawler, Levenson &
Boudeau’s (2004) findings - efficiency over program outcome metrics
 Top Business Challenges Rated by CEOs
Foundation for Malcolm Baldridge National Quality Award 1999 USA Survey

Finding: Half of CEOs’ top leadership challenges for the future

88%lie squarely
#2 activitywithin HR’s strategic
– improving knowledgeresponsibilities,
management & and
IT many
71%others involve– amanaging
#6 activity heavy human capital
contingent component
workers
69% #7 activity – developing performance-based
‘ee relns
68% #8 activity – improving HRM
60% #11 activity – measuring & managing org. processes
56% # 12 activity - building a consistent global culture
52% #14 activity – creating a learning organisation
 ….prompting demand for new sets of HR activities
gn m e nt
Leade lue s Ali
Trans rship io n & Va
forma t VisEmplo
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ngage
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w ledg ment
Kno
M&A
se lectio
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Continuous Change
Management

n t Ret ent ion

Key Tale
Strategic/OD consulting

Line managemen
Workforce Sc t decision suppo
enario plannin rt
g
 And Future Roles
(Lawler; Cascio; Roberts & Hirsch, 2005)

• Chief Integrative Officer: responsible for connecting disparate

parts within a company
• Deliverer of business success: participant in the success of the
enterprise
• Diversity Manager: responsible for helping manage all types of
employee diversity
• Employee Champion: responsible for human capital
• Productivity Czar: responsible for doing more with less; and
• Chief Effectiveness Expert: responsible for making the
organization not just people-effective
Increasing Expectations of the HR Professional

Best Employers have a higher order purpose—it’s about more

than making money. They offer a different work experience:
•Autonomy e.g. Salesforce’s 3F employment brand
•Challenge
•Experimentation
•Improvement

so HR professionals need to be…………

Competent
Curious
Courageous
Caring about People
(Meisinger, 2005)
HR Professionals Must Have New Competencies
(Losey, Meisinger & Ulrich, 2005)

• Mastering the decision science of HR (Boudreau & Ramstad)

• Understanding & managing people (Tsu & Wu)
• Discerning, creating, and adapting culture or mindset to
business conditions (Pfeffer)
• Rethinking organizations as capabilities, not structures, and
ensuring agility as a critical capability (Dyer & Ericksen)
• Creating collaboration throughout the organization through
cooperation (Gratton)
• Responding to social expectations and public policy by
ensuring values (Wright & snell) and
• Learning to play new roles (Lawler)
Influencing Behaviour Through Strategy – so what is the “space” we claim?

External Context

Employment branding,
Business Context Recruitment,
Planning & Assessment & Selection
Job Design

HRM Structure
Performance
Remuneration, Management
Reward & Leadership System
Recognition Culture

Learning,Training & Orientation &

Development
Induction
 Redefinition of HR’s Priorities and Role

HR - Line Partner HR - Business Leader

- sell traditional HR interventions - support critical business
objectives
- serve internal ‘customers’ - service company’s customers

- build individual employee’s skills - build the organisation’s capabilities

- execute business strategy - formulate business strategy

- defend company culture - ensure value proposition

- develop policies & programs - develop guidelines & VBO

 Measures of HR Effectiveness

• Employee satisfaction
VS
employee engagement and productivity

• Internal ‘customer’ satisfaction

VS
external customer satisfaction

• HR activity levels
VS
strength of organisation capabilities

• Staffing levels
VS
company’s internal alignment with value proposition to customers
Transforming HR into a Strategic Business Partner
HR Service Delivery Model
 The “Knowing-Doing Gap”
(Pfeffer and Sutton, 1999)

• Decisions which change nothing

• Knowledge transferred but not implemented
• Substitution of talking activities for action
• Quash inconsistent ideas, don’t admit to mistakes
Personal Transformation Precedes Organisational
Transformation

” . . . personal change must precede or at least accompany

management or organizational change ... attempting to change an
organization without first changing one's own habit patterns is
analogous to attempting to improve one's tennis game before
developing the muscles that make better strokes possible”

(Source: Stephen Covey (1990), “Principle-Centered Leadership” Simon & Schuster: London)
Steps for Identifying & Building HR Competencies

Step 1: Planning & Assessment

-assessing individuals & id comp. gaps
Step 2: Communication
-expectations of roles, programs, consequences
Step 3: Performance Review
-comp. dev. in plans
Step 4:Training
Step 5: Development
-job assignments, stretch assignments, rotations, peer
learning networks, coaching & mentoring rel’ns w. snr HR
professionals
Questions