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Much resentment and hard feeling can be avoided by keeping issues rather than individuals the topic of discussion. Regardless of how one may feel, it is less argumentative to keep the discussion objective and at a matured level, rather than finger pointing or buck-passing. Similarly, it is valuable to learn to disagree without being disagreeable. A recommendation made by a colleague that has negative human resource consequences can simply be opposed or it can be acknowledged and countered with other recommendations that accomplish the same objective but don’t have the negative aftermath. It is particularly important to stay open-minded because invariably there is more than one good solution to a business issue. Principle #6: Human Resource Executives must accept that Constant Learning and Skill enhancement are essential to their being Contributor to the Business The speed of change makes the half-life of much business knowledge so short that constant learning and skill enhancement are necessary. The competencies required to effective human resource executives include not only functional expertise (compensation, management development, etc.) but also business knowledge, financial understanding, consulting skills, and interpersonal skills. People in HR positions must continuously expand their know-how and avoid the mistake of carrying old skills, notions and styles nostalgically forward. HR must lead the discovery of new ways for mobilizing the talents and energies of employees so they are able to contribute more. HR must promote the idea that for people to be effective as employees, they have to be managed effectively as people. These principles go a long way in explaining that HR professionals along with knowing their theory inside out have to also gain a deeper and more wholesome understanding of their internal end external environment. The tools and techniques are developed after a lot of thought and consideration. The opportunity exists for the Human Resource function to demonstrate beyond a doubt that it is equipped to take a lead in integrating this reality into how organization behaves. Thus, goes kaput another myth that “HR is full of fads”. Champion of Globalization In order to survive and prosper in the new global competition, companies are embracing global integration and coordination, but at the same time they must push for local flexibility and speed. Global companies have to nurture global organization learning by stimulating creativity, innovation and the free-flow of ideas across boundaries, but also advocate a disciplined and methodical approach to global continuous improvement. To succeed in global competition requires an open and empowered organizational climate, but also a tightly focused global competitive culture. If global organizational capability, intrinsically linked to people issues, is the principal tool of competition, it is only natural that HR in the future should become the pivotal partner in the globalization process. Developing Global Mindset: Having a global HR mindset implies a recognition of benefits that can flow to the whole organization from encouraging and valuing cultural diversity in people, not just as members of distinct cultural groups but as individuals. Yet valuing diversity must go well beyond the traditional emphasis on bridging the distance between the clusters of national cultures by focusing on average national characteristics. The barrier that hinders effective cross-cultural interactions is the lack of comprehension about diversity within a given culture by outsiders who do not understand the historical, political, and social context of culture differences and thus have to often rely on often misleading general assumptions and stereotypes. Outsiders view cultures through coloured lens. The role of HR is to implement the necessary organizational strategies with sensitivity to specific cultural influences. ©
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Globalizing HR Processes: Global staffing and global leadership development are the two components of global human resources with the greatest potential for powerful leverage for global firms. In both the areas, a major paradigm shift is required in comparison to the traditional perspective. Global Staffing: While it may be obvious that global firms will need more and more employees with “global brains”, translating this attractive vision into operational reality is not simple. Most managers are not born global; they acquire global brains through a series of experiences, many of them at a substantial cost to the organization. Making a rational business case concerning the future need and use of global managers is one of the critical decisions the global HR function and business leaders must make together. •
• Global Leadership Development: One of the principal tasks of global leadership development should be to create and support an environment where global mindsets can flourish. It will focus on providing a broad spectrum of employees with opportunities to acquire and enhance their global leadership skills and capabilities, often using nontraditional developmental techniques such as cross-border job swaps or assignments to multicultural task forces and project teams. The challenges facing human resources in the future as the function strives to become the champion of globalization can be generalized under three problem areas: (1) developing a global mindset inside the HR organization, including a deep understanding of the new global competitive environment and the impact it has on the management of people worldwide; (2) aligning core human resource processes and activities with the new requirements of competing globally while simultaneously responding to local issues and requirements; and (3) enhancing global competencies and capabilities within the HR function so it can become a borderless business partner in rapidly exploiting business opportunities worldwide. Corporate Perspective This view is widely accepted in the industry. Being a HR manager in turbulent times like these can’t be easy. These treasurers of human capital have simply too much to contend with. If on one hand they’re protecting their functions from coming under the axe, on the other they’re grappling to satisfy a new breed of customers. The truth is that these backroom gentlemen are managing a corporate’s most valuable customer – the internal customer – and thereby driving strategy. The last few years have witnessed the metamorphosis of the archetypal human resource department, thanks to the rush of technology. The common assumption most people make is that it is the technology that is changing the role of the human resource manager. However, technology is merely one of the many tools that the department can use to save jobs and contribute to the company’s bottom line in terms of hard cash. HR managers need to act fast if they have to protect their breed from becoming extinct. To that effect, the role and responsibility of the human capital chief is involving. Reinventing the role of HR appears to be one of the bigger challenges that HR practitioners face today. For long, R has traditionally been perceived as a support function rather than a key business driver. This rather traditional perception probably stems from the fact that HR as a function has evolved from personnel management, which was predominantly administrative in nature. “One of the bigger shifts in mindset has been that HR now plays an integral part of strategic decision-making and the facilitation of moving a business in the right direction. Most commercial decision typically have a residual effect on the people of the organization and therefore, HR is placed to provide key inputs into the ramifications of decisions.” – Patrick David, HR director of Ford Motor Company, Corporate Dossier. ©
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However, it is an uphill task for HR professionals to fight perceptions that the HR department is still back-office in nature, and strategic HR is limited to compensation and benefits related matters. HR managers are caught on the back foot in times of recession when their budgets are hacked. If HR deploys HR tools as business processes, they can clearly show the result it as on productivity. No company can ignore savings in hard cash. If a chief HR manager has to do this, it will change his core audience. Carol Ward of Calipers UK (the people who measure success) makes a point by saying it is important to reshape the profile of the future HR professional to include the competencies associated with entrepreneurial leadership and strong influence skills. “HR professionals need to be able to demonstrate qualitative and quantitative return on the investments made in attracting, training and developing the highest caliber human resources for their business,’ she says. IBM has taken many initiatives in HR to develop its employees and to improve the quality of service provided. Robert Danbeck, country manager, IBM says, “In Asia, we’ve taken the next sep in this evolution by building a virtual call center, which uses our technology to route work to people, rather than incurring the costly exercise of moving people to a single physical location. This highly successful center supports over 50,000 IBM employees in Asia and enabled us to save over $4 million in 2001 alone.” Another factor that’s going to make HR more important is globalization of businesses. As global business alliances grow in number, the marketplace will demand the development of an international workforce. According to Danbeck, HR professionals will need to have advanced knowledge of international business practices, labour laws and multicultural sensitivity. Corporations are moving away from treating their employees as commodities and are seeing them as customers instead. David adds that HR has to view its employees as customers, and therefore service levels have realigned themselves to be a direct reflection of the needs and aspirations of their people. Employees typically are concerned about longer term goals, which means a shift toward training, developmental opportunities, whether it is laterally or upward. HR managers in the new service paradigm necessarily have to be more responsive, and be in a position to gauge the pulse of an organization. Another major trend in HR is the growing emergence of e-HR and the migration of HR processes from being manual and administrative to more automated and self-service in nature. David explains, “The growth of e-learning as opposed to traditional instructor-led training is indicative of the globalization of organizations, along with multi-geography teams comprising different nationalities and cultures. This is another challenge for HR practitioners.” Successful HR departments will need to focus on these issues and evolve from just being an implementer of good policies and processes to the role of strategic leadership driving change and results and not just monitoring them. This will be HR’s greatest contribution to any corporation. Traditionally, HR managers pore over appraisal forms, which would go back and forth, but with the influx of the web these processes can be automated and moved online. Moving processes online can save time and increase efficiency, which translates into financial savings. Commenting on the impact of technology on HR, Danbeck says the company’s transformation efforts have resulted in radical changes to every aspect of the company, including its organizational model, core processes and IT systems. They have also affected the way employees work at IBM. The company realized that its transformation initiatives would take root only if they were driven by a passionate executive team, embraced by all employees in the company and framed within a new ©
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leadership model. As with all change, these too met with resistance, says Danbeck. Skepticism and the fear of losing control were significant barriers. Ultimately, however, the company’s passionate leadership, commitment to driving change, and sustained focus on consistent and frequent communications led most employees to adopt the new IBM culture. This was arguably one of the most remarkable achievements of IBM’s transformation. How far can it go? The extent to which HR function has undergone a change over the past decades gives the impression that; there is apparently no saturation point for the growth of the profession. From being the personnel functionaries to strategic partners, the transition has been gradual and impacted by the internal and external environment changes. In this age of mergers and acquisitions, the role of HR has become all the more critical and fundamental for the success of the ventures. Besides, the cultural issues that crop up at such times, there is a need to create synergies between goals, systems and processes. With the industry in constant flux, there is always the need for renewed skills and competencies in the people to meet the challenges. Also, the goals and strategies of the firms undergo continuous revision. Under such circumstances, it is the HR department that has to garner the talent necessary to tide over the trials and tribulations of survival and growth. Unless the people issues are not taken care of in an optimal and timely manner, success in any venture - long-term or short-term, stand-alone or joint venture cannot be guaranteed. This goes as far as saying that when firms develop policies and frameworks keeping in mind the people issue, it is capable of attracting and retaining the top talent in the market. With change management becoming the buzzword in HR circles, it is incomplete without HR becoming the focal point in these transactions. We can put the whole issue in correct perspective by charting the transition of the HR function as follows: It started as a sideline function when industrialization gave way to huge firms with large number of employees. It went on to become a function to be reckoned with when labour problems took root. This was again due to unfair and at times inhuman practices. When technology started growing and business was carried on a larger scale, there was a need for a department that could handle behavioural issues, since an average person’s life started dealing with a lot more stress and strain. Employees needed to be kept satisfied in their work environment. HR HR HR ©
HRFolks.com...Empowerment through Education
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HRFolks.com...Empowerment through Education
When compensation and other transactional issues have begun to be outsourced or insourced (IT department), the strategic function of the HR work started receiving attention. Now this function encompasses the business unit. To acquire synergy in operations, HR becomes indispensable. HR The emergence of the global economy, over capacity in many industries, monumental improvements in the power of computers and telecommunication tools, and the emergence of the knowledge economy are among the forces that are resulting in fundamental change in the design of HR arena of activities. A whole constellation of organizational features – vertical integration, managerial control, stability and two-way loyalty between organization and employee, that fit in a benevolent, relatively stable environment are giving way to new organizational designs for competitiveness, flexibility, continuous improvement, and self-management. Organizations are downsizing, reshaping themselves, outsourcing, joint venturing, merging, divesting, and partnering in order to improve their competencies and capabilities. The preeminent criterion for all organizational design decisions is contribution to the accomplishment of organization strategy. As strategies have become more complex, global and developed, this criterion has led to the reexamination of organization designs at all organization levels: corporation, business units, work units, work processes that cut across the organization and jobs. Within the same organization, different units are being constructed with very different logics, each optimizing the value that it adds by tailoring its design features to the work it does. In traditional bureaucratic organizations, human resource professionals have, for decades, created and administered the systems, career development, training, selection and rewards that define the key parameters of the stage on which employees have enacted roles and careers. The human resource function added value by creating systems that produced bureaucratically correct behaviour as well as the predictable and orderly development of people and their careers. Not surprisingly, it gained a reputation as the bastion of the status quo. But the era of traditional bureaucratic organizations is over; stability needs to be replaced by change, innovation and new organizational designs. This fact represents both a major threat and a major opportunity for the human resource function. The human resource function can deliver immense value to corporations and to society by helping them navigate the uncharted waters of the new era.