Transforming Hr Into Strategic Functions Management Essay

Trans get toing Hr Into Strategic Functions Management EssayHigh competition, pressure imposed by environmental wobbles, accelerated trends for change, and overbold trouble techniques have ca utilize enterprises to evolve dramatically with respect to their coordinate as well as cultural and human resources (Garcia, 1997 cited in ).Nowadays, it is primary(prenominal) to consider HRM as a strategic proportionality within the wider improvement of quality and good marketing position. HRM can be said to be a strategic coherent approach to the concern of an heavy laws roughly nourishd assets- the muckle starting there, who individually and collectively contribute to the achievement of its objectives (Armstrong, 2000).The field of strategic human resources counsel has enjoyed a remarkable ascendancy during the one- cartridge clip(prenominal) two decades, as some(prenominal) an academic literature and focus on worry practice (Becker Huselid, 2006). The transition from the older HR practice with focus on staff matter to a subject of re-birth which focuses on linking people as organisational asset with the vexation strategy of the firm (Niehaus, 1995) means that the HR passe-partout is performing a recent and more than challenging responsibility that requires new competencies and skills. The Human Resource function should be strategically integrated with a companys personal line of credit plan to help the company achieve its condescension objectives. The objective of HR callingals is to plug that HR adds measure out to strategic planning and production line results of the organization (Ulrich, 2001).HR privations alignment with new(prenominal) departmental goalsTo be involved with the over-all strategy, HR pauperizations to be line up with the organization. One Harvard survey found that 80% of HR departments lack a strategic planning exercise that aligns it spending with the organizations strategy (Norton, 2001). HR needs to break inte rdependent with the rest of the organization. HR needs to take a comprehensive approach that aligns its actions with the entire organizational strategy. The motivation to correct these HR problems is high because the strategic integration of HR into an organization achieves a competitive advantage. HR has much to contribute in a strategic controling role. The ultimate goal is for HR to support an organization through the management of human capital, which is the major(ip) subset of the broader organizations strategy. HR needs to be part of the organizations strategy suppuration. In order for HR to effectively align itself with the strategy of an organization, it must present surmount management with solutions that address the strategic need and support of the organization (Freedman, 2004).Definition of Human Resource switchingBeer (1997) argued that the HR function needs to shed its traditional administrative role and adopt a new strategic role, aimed at developing the organis ation and the capabilities of its managers. The drive towards a more strategic HR function has pre-occupied the profession for some time and HR functions ar increasingly under pressure to stick a strategic traffic mate or an internal consultant, to become aligned to the stemma strategy, demonstrate its added value (Alvargons, 1997, p.9), and latterly, to become involved in Human Capital Management. HR masters aspire to a strategic role because it get alongs their status, makes their work more interesting, lifts their personal career horizons and (hope risey) is better for the business as a whole. One of the biggest perceived barriers to achieving this strategic role is the amount of time spent on administrative work although the amount of time spent on administration has been steadily falling over recent years, to 36% from 50% between 2003 and 2007 (CIPD, 2007a), a Mercer report on the HR function (Mercer, 2007) confirmed that HR teams would like to reduce the time spent on d elivering assistances, transactions and compliance even more. The rejoinder by legion(predicate) HR functions has been to undertake a programme of significant organisational change, frequently labelled as variation.Human Resources conversion has been defined as followsThe mould of recreating or reinventing the HR function such(prenominal) as re-engineering, restructuring, implementing new systems or a new HR service delivery model, outsourcing or co-sourcing with the specific jailed of enhancing HRs contribution to the business (Mercer, 2007, p.1).HR shift key is something through internally to improve the ability of the human resources group to work more effectively with management teams, creating great value, bringing more timely information, becoming a better business partner. Steve Klingbeil, Partner Chazey PartnersA true definition of HR shift key is an integrated, aligned, innovative, and business-focused approach to redefining how HR work is done within an organiz ation so that it helps the organization deliver on the promises made to customers, investors, stakeholders, and other stakeholders. (HRT- building Human Resources from the outside in, Ulrich, 2009)Drivers and Barriers for HR TransformationAccording to a 2005 survey (Rampat 2005, p. 7) key drivers for HR transformation embroil the followingMaking HR strategicImproving HR serviceResponding to changes in businessBenefiting from new technologyBetter managing the cost of internal cognitive processesThe same survey also revealed the following key barriers to the success of HR transformation escape of appropriate skills among HR staffLack of appropriate support technologyAn unwillingness to take risk or deal with complexityDifficulties in dealing with bureaucracyDifficulties in dealing with corporate or international cultural differencesLack of employee buy-in to HR TransformationFailure in building a business case to support changeLack of genuine top management supportRegulatory cons traintsUnionsAccording to the 2008 Global HR Transformation Report done by Human Resource Outsourcing Association (HROA) in association with Automatic Data Processing (ADP), among the keys to success in achieving HR transformation goals are access to better tools/resources improved/new technology, use of online tools and services, and automation of processesChange management and education change management planning prior to implementing a transformation programme, cultural acceptance of change, training and motivation to encourage and engage staff in the transformation, and pre-transformation agreement on the programme goalsManagement support at both the top and line take aims gaining top-level management support, and as much line-manager level buy-in as possible, prior to programme introduction and, continually demonstrating the benefits of the programme to attempt to increase line-level buy-in over timeAlignment, focus and standardisation alignment between HR and business units, harmonisation of processes, centralisation of services, standardised reportingThe New Roles and Competencies of the HR ProfessionalDavid Ulrich and Wayne Brockbank (2005) have created a model that describes the new roles of human resource victors. They stress on the importance of building professional, credible relationships across the organization, and performing in a manner that both supports the business and preserves the integrity of the profession. As they outline the new capabilities of the human resource function the role of strategic talent management begins to emerge. Human resources professionals become less responsible for providing service and more accountable for facilitating better decisions.David Ulrich defined 5 major HR Roles in his HR Model to build streamlined and modern Human Resources professionals.Figure 2.1 HR roles defined by UlrichHR Professionals are Employee Advocate, with the responsibility to make sure that the employer -employee relationship is one of reciprocal value Furthermore, the build workforce of the futurity through the Human Capital Developer. They are also Functional Expert who design and delivers hr practices that ensures individual competence and organizational strength. As Strategic Partner, they help line managers at all levels meet their goals. And to sum the first four roles, HR Leaders need to lead and value their protest function. Ulrich et Al., (2005)There are six major factors of HR competencies according to Ulrich et al., (2009), they believe that it is vital for the HR function to be a strategic professional player in a changing world. The two arrows (see figure 2.2 below) illustrate that HR must consider both aspects of the business, i.e. people and business oriented. The characteristics/roles HR people must have or play (six circles within the V shape below) to achieve will be described come along.Figure 2.2 Competency model by Ulrich and BrockbankCredible activists build relationships of trust based on facts and have a point of view not just or so HR issues, but about business issues.Operational executors do the operational work that have to be addressed by HR, using information systems to ensure better, faster and cheaper HR delivery. business organisation allies demonstrate a firm grasp on how the organization operates, how they work to enable to make a profit and compete.Culture and change stewards support the organization in identifying and facilitating important changes that improve the capabilities of the organization to compete. It is important that HR professionals help to formulate, communicate and create the organizational coating.Talent managers and organizational designers submit important support and counsel in both employees emergence (for example, competence and career development) and how the organization capability.Strategy architects contribute to the development, execution and communication of winning strategies. They prepare themselves for the future b y drawing strategies to meet upcoming challenges.Possessing the competencies and performing the roles mentioned above, HR departments will derive their goals from the business objectives of the organization and become more strategically involved.HR Transformation and TechnologyRapid improvements in technologies are changing the way work is performed by HR professionals from being administrative to todays a more strategic role. With new approaches such as Human Resource Information System (HRIS), web-enabled HR applications, HR self-service and Enterprise Resource Planning (ERP), HR practitioners are forthwith more involved in strategic decision making.A key development in the field of IT is the emergence of enterprise resource planning (ERP) applications, such as Oracle, SAP and PeopleSoft. Enterprise resource planning systems are commercial software packages that enable the integration of transaction-oriented data and business processes throughout an organization (Markus and Tanis , 2000). ERP packages whitethorn be configured to more well-nigh fit an enterprises structure, business practices and workflow (Chalmers, 1999).Recently, the HR function has had to adopt a more value adding role to the organization. With the egression of information technology, HR can be relieved from the burden of transactional human resource activities and this can be accomplished either by outsourcing some of the HR function, but what would be more relevant to this study, is to use technology solutions.There is a greater opportunity for HR professionals to become a strategic partnerSelf-ServiceHR self-service technology assists in meeting the needs of employees and managers, while supporting business objectives (Keebler Rhodes, 2002). Employee Self Service allow employees to manage their own HR activities such as updating their own personal details, leave application, nominate themselves for training, facilitating feedback and giving them visibility of the information held abo ut them on HR systems. Eventually, HR professionals can concentrate on value added HR activities and spend fewer resources in managing administrative HR activities. Manager Self-Service (MSS) jells the information managers need at their fingertips giving them the ability to more closely monitor and direct their team towards the strategic goals of the organization. line of descent Partner ModelWithin this transformational HRM area, Walker (2001) breaks this down further into three types of work done in transformational e-HRM. These types of work include strategic partnering with the business, creating centres of expertise and administration of service centres.In order to move to the third level of HRM, Beatty (2001) identifies five success factors.These include changing the culture of HR, the people employed in the HR function, and also their competencies, developmental needs and their achievement the roles and responsibilities of individuals performing HR activities, that is, the structure of the HR function HR processes or HR products service delivery and development and finally the technology used for HR functions, which whitethorn include enterprise-wide systems and custom systems.HR Shared Services CentresHR shared service centre is defined as follows by (Brescia and Hartness, 2001)A centralized location where customer transactions and customer enquiries are handledIncreasingly, HR are presently using the shared services concept to drive down costs, provide increased levels of service and improve data accuracy and integrity. HR shared service centers help transform HR into a business-driven function focused on facilitating and supporting organizational change. HR shared service centre is usually a part of a wider transformation of HR structure within the organization. Shared service centers are usually proposed for the organizations strategic reasons in order to improve the capability and effectiveness of HR function. The HR shared service centre can in clude the full service from routine administration in recruitment, payroll and training, or provide specialist HR information and advice on HR policy and practice.While HR shared services provide quantifiable benefits in terms of cost reduction (through achieving economies of scale, the standardization of process, better management structures, etc.), the strategic benefits achievable from HR transformation are significantly more important. Strategic benefits of HR shared services include sharing more relevant and accurate information across the organization (sharing HR best practice, leveraging HR expertise, pooling knowledge across different parts of the organization and different geographical regions), achieving greater structural flexibility, improving organizational learning, and freeing up HR from day-to-day routine enquiries.Centres of Expertise (CoE)CoE provide specialist technical and professional support to the business and other areas of HR on specialist HR topics. CoE HR professionals play a number of important roles that should be clarified in an HR transformationThey create service menus aligned with the capabilities driving business strategy.They diagnose needs and recommend services around appropriate to the situation.They collaborate with embedded HR professionals in selecting and implementing the right services.They create new menu offerings if the current offerings are insufficient.They manage the menu.They shepherd the learning community within the organization.Strategic Business PartnerSenior HR professionals workings closely with business leaders influencing and steering strategy and strategy implementation. The role can vary enormously depending on organisational size and business priorities. Some activities that strategic partners are likely to be involved in includeorganisational and people capability buildinglonger term resource and talent management planningusing business insights to drive change in people management practicesIntell igence gathering of good people management practices internally and externally, so they can raise issues that executives may not be aware of.Model for HR TransformationThe following HR Transformation is a four phased model proposed by Ulrich et al., (2009)Business Context (Why)Phase one addresses the question why carry out transformation? To start Human Resource Transformation journey it is important to ensure that the context of the business is clearly understood by all those involved in the transformation process. Ulrich et al., (2009) believe that when the presenting problem for HR transformation comes from the context of the business and from the expectations of key stakeholders, then the case for transformation is stronger than if the presenting problem originates primarily inside the business.Outcomes (What)Phase two explains the expected outcomes from the transformation. Hr transformation should also change the fundamental identity, culture, or image of the business. This out come is referred to as defining and building capabilities. These capabilities become the identity of the firm, the deliverables of HR practices, and the keys to implementing business strategy.Redesign HR (How)This phase has three components, all(prenominal) of which is a way of defining what we mean by HRThe HR function or department may need to be redesigned.HR professionals may be upgraded to possess the competencies required to do their work.HR practices may be transformed to be more effectively or more fully aligned, integrated, and innovative.The transformation model focuses on redesigning the HR function to make sure that it is aligned with business strategy. The redesigned of HR needs to differentiate between transactional and transformational work. Furthermore competencies of HR professional may need upgrade in order to perform their roles in the new organization.Hr practices may need to be revamped. Four domains representing the flows or process central to organizational s uccess are as follows extend of people- ensuring talent availability to accomplish organisational strategy.Flow of performance management- promoting accountability for performance and rewarding itFlow of information- ensuring employees is given information needed to do their work properly.Flow of work- who does the work, how and where work is done and ensure quality outputs.The flows should also be integrated with each other to bring results.Accountability (Who)Line managers are ultimately accountable for ensuring that the organization has the right talent and right structures in place to deliver on the expectations of customers, shareholders and communities. light-headed role definition and rigorous accountability will help an HR transformation succeed.HR Transformation achieved at AT TAnne Fritz, vice-president HR, who has been with ATT for almost 30 years, said As competition, rapid technological breakthroughs and globalization turned our business upside down the old HR model co uld not support the need for strategic change. Now, our role is to help internal partners to succeed in sometimes-fragile states of competitiveness and to ensure that we have the talent in place to build future business capability. Doing so delivers a value-adding service.HR transformation was achieved through key steps that represent a good-practice model for integrating the HR function with business strategies and reorient organizational performance to corporate goals. The key steps wereDetermining strategic business needs customers, growth, reducing cost and technology reviewing organizational structure, dynamics and systems define the strategic implications for HR continuous learning, team working and empowermentIdentifying HR systems those that were required to support organizational, structural and cultural changeLeveraging HR capability through leading-edge practices leading, staffing, performance management and educationDevising high-level HR initiatives for special ne eds, such as workforce planning and downsizing.Implications of the Human Resource Transformation in the Telecommunication IndustryThe HR Transformation model proposed by Ulrich and HRT process at AT T will be used as background for this study. The different components in the above transformation process at AT T key steps are interrelated, only those that on the face of it represent the important practices and or potential constraints in HRT will be further explained below.EmpowermentEmpowerment is an essential element of organizational change and transformation as the global business environment becomes ever more competitive.By enabling managers and employees to have more control over their work and their working lives, they are being empowered.Employee Self-Service (ESS) has a great influence on the empowerment aspect. ESS allows employees to help themselves (changing their personal details, checking or applying for leaves, etc), thus HR professionals are now free to spend less time on day-to-day recordkeeping and focus on value-added functions that aid in meeting the goals and objectives of the organization (i.e., talent management, staff development and retention, performance management, rewards, etc.). Furthermore MSS enable managers processing basic HR transaction (appraisals) and retrieve data without involving the HR professionals. leadingEffective lead of the change process is fundamental to its success (Buckingham, 2005Hunt Buzan, 1999 Johnson Uline, 2005 Kamener, 2004).The concept of managerial leadership permeates and structures the theory and practice of work organizations and hence the way we understand SHRM. In the management texts, leadership has been defined in terms of traits, behaviour, contingency, power, and occupation of an administrative position. Most definitions reflect the assumption that leadership involves a process whereby an individual exerts influence upon others in anorganizational context.Employee satisfaction, motivation, and dedication are of major importance when it comes to retain the most valuable employees and this is where a strong leadership becomes very important. There is a difference between management and leadership. Leadership means understanding the corporate mission, developing goals which support the mission, then using personal and management skills to help build a stable, skillful, productive and well-to-do workforce. Leadership is seen as the power to inspire and motivate the ability to permeate employees with the desire to change the organization to the best.Training and developmentSwanson (1995) defined employee training and development as the process of systematically developing expertise in individuals for the purpose of improving performance. Trainings strategic contributions to the organizations goal include new employee orientations, diagnosis and correction of skills problems, remedial training and sometimes long-term career development (Ceriello and Freeman, 1991).Indee d training and development is an important aspect in HRT, with new technologies, enhancement of HR practices and processes put in place, training will be required to adapt to new HR requirements.Link Survey of Global HR Challenges Yesterday, today and tomorrow PWCLeadership development also proves to be a big challenge. HR professionals continue to wrestle with understanding the best ways to keep people in the air and develop leaders for future succession planning. Increasingly recognized as becoming strategic business partners within their organizations, HR professionals are expected to provide the essential frameworks, processes, tools, and points of view needed for the selection and development of future leaders. Across the globe leadership development has been identified as a critical strategic initiative in ensuring that the right employees are retained, that the culture of the organization supports performance from within to gain market position, and that managers are equippe d to take on leadership roles of the future so that the organization is viable in the long term.Performance ManagementPerformance management is a holistic process, bringing together many of the elements which go to make up the successful practice of people management, including in particular learning and development. Performance management is about establishing a culture in which individuals and groups take responsibility for the continuous improvement of business processes and of their own skills, behavior and contributions.At AT T performance HR initiatives is monitored by using the corporations top-level business performance measuresCustomer value-added. The degree to which the competencies, people-planning and culture/design requirements have an impact on customer satisfaction.Financials. Revenues, cost reductions and earnings realized from the deployment of competencies, people planning and performance management.People value-added. A measure of the degree to which employee per ceptions of leadership, job satisfaction and diversity issues, among others, meet or exceed corporate goals and objectives for all four requirements of the performance-system model.Performance management will aid the HR Transformation process, measuring the performance of employees will help in monitoring the productivity in the organization and establishing a culture of continuous learning, motivation that will result in better ROI. HR managers and professionals must take the lead in building and maintaining this performance culture and in ensuring it permeates the organization. Rewards are often credited as a source of motivation.CommunicationGood communication between HR function, line managers and employees is essential. Employees need to feel they form part of the organisation and have to be made aware of what is happening within their workplace. Lack of communication to employees can lead to confusion, rumours, misinterpretations and negative morale. Managers often theorize t hat employees are more aware than they really are. By building strong communication messages to employees this could help obtain commitment of employees which is important to the good functioning of the business where HRM is being transformed strategically.User involvementAll parties should be involvedChange management (structural and cultural change) The Inside Track on HROutsourcing well-kept HR and Other Success StrategiesBruce Barge, Namrata Mundhra and Hameedah Merchant, 2007The changes associated with HR transformation put enormous pressure on HR. HR transformation has a wide reach, often affecting the entire organization. With the emphasis of HRO on self-service, managers and employees often have concerns about the decrease in face-to-face contact with HR. HR staff often have fears about performance expectations that are connected more strategically to the business. Business leaders might have doubts about HRs ability to attain a more strategic role.Further, while HR is ofte n the champion of change in an organization, there are unique challenges in managing change around HR transformation. HR is alleged(a) to be a role model of effective change management, yet in this case it is the function that will need to navigate through the most wrenching change as HR transforms itself to accept a new and difficult role.A strong understanding of stakeholder concerns and interests is necessary to take a proactive approach to change management. An impact analysis provides a basis from which enablers and barriers to change can be identified. In an impact analysis, a sample population from the stakeholder groups, including executives, managers, employees and HR staff, is surveyed through focus groups and interviews. The findings of the impact analysis drive the development and execution of practical approaches to effect change, which are documented in a change management plan. HRO should help the HR generalist, or business partner, staff focus more resources on the crucial change and talent issues that drive competitive success of the business.HR needs to change and lead change initiatives to transform other functions. If HR transformation is implemented skillfully, HR professionals will become a much more vital contributor to organizational success through business partnership and strong leadership.Hr professionalsEngage in projects with other departmentsRole and competenciesTraining, coaching directAttract, hire, retain talentEmployeesBe more empoweredParticipateEngage on self-learningCommittedLine ManagersEncourage movement of staff to work collaboratively with other departmentsEmpower and motivate staffsBuilding Employee Commitmentencouraging employees professional development, compensating them fairlyuse MSSfine tune hr strategy to fit with org strategystructure and resource allocationcommunicating strategy, organization changes at all levels