The C hanging Role
& Functions of HR
• H R as th e e m p loye e ad vocate
• H R as th e cons u ltative b u s ine s s p artne r
• H R as th e age nt of C h ange
HR Republic S ummit 2011: Trends & C hallenges Unfold

Zu lkifli M oh d
19 October
2011


CONTENTS
•
•
•
•
•

The E volution of HR
The C hanging Role of HR
HR as S trategic Partner
HR as C hange A gent
HR as E mployee A dvocate


The E volution of HR


Origins of HR
A B rief His tory of HR

End of 18th
Century:
Welfare
Officers
• P rote ction for fe m ale
e m p loye e s & ch ild re n
• C are fo r inju re d &
s ick e m p loye e s
• C re ate d in re s p ond to
h ars h ne s s in
ind u s trial cond itions

The World
Wars:
Labour/
Employment
Manager

• Ad m in is tratio n of
ab s e nce , trainin g &
re cru itm e nt
• S tate / Trad e U nion
p artn e rs h ip s
• H and le d q u e rie s on
com p e ns ation
m atte rs
• E m p lo ye e d ata

1945 – 1979:
Personnel Mgt

• We lfare &
e m p lo ym e n t m gt
we re inte grate d →
P e rs on ne l Mgt
• O u tp u t cou ld b e
in flu e nce d b y
e m p lo ym e n t p olicie s
• S tru ctu re d
com p e ns ation p olicy
• C o lle ctive b argaining
& IR
• S p e cialize d fu nctions
(70’s )

1980 – 2000:
Human
Resource /
Compliance Officer
• Ad m in is trator &
te ch nical e xp e rt
• F ocu s e d on
im p roving e fficie ncy
& e ffe ctive n e s s
• C om p e ns ation
e ngine e ring as ke y to
p rod u ctivity (ince n tive
p lans , d e fe rre d
com p , op tio ns )

2001 till now:

Strategic HR
• S trate gic Bu s ine s s
P artne r
• C h ange Age nt
• E m p lo ye e C h am p ion
• COE
• S h are s e rvice


The E volution of HR
The HR J ourney
High

Value → Impact/C ontribution to the Bus ines s

Strategic HR
Human
Resource
Management

Personnel
Management

Labor
Manager

Welfare
Officer

1890 - 1913

2 nd Ind ustrial R e volution

• Ad m inis trative
focu s
• C om p liance
• Trad itional m ind
set
• Lim ite d s cop e o f
activity
• S p e cialize d
fu nctions

1914- 1939

1945 - 1979
World Wars

• Ad m inis trative
focu s with
e nlarge d s cop e of
activitie s
• S u p p ort fu nction
• Le s s re active &
m ore p roactive

1980- 1990
G lob alization

• B u s ine s s P artne r
• F ocu s on valu e ad d e d activitie s

• P roactive
• M u ltid is cip linary
• M u lti-face te d role s

2000 till now


The E volution of HR
The HR J ourney: Nature of Work

continue to
evolve

Value → Impact/C ontribution to the Bus ines s

High

Strategic
HR Planning
HR as
Business
Partner

Organizational
Design
Survey Action
Planning
Staffing

Transactional

Work
Labor/Union
Relations
Safety &
Workers’
Compensation

COE

Performance
Management

Shared
Svc
Centre

Culture
& Image

HRIS
Employee
Relations

Training &
Development

Benefits

Compensation


Transformational
Work

Compliance

Welfare /
Employee
Care
Employee
Welfare

Labor
Relations

Employee
Relations

Personnel
Admin

Human
Resource

Organizational
Effectiveness
S ou rce : R ich Vos b u rgh


The C hanging Role of HR



The C hanging Role of HR

HR is s hifting from focus ing on the
organization of the bus ines s to focus ing on
the bus ines s of the organization


The C hanging Role of HR

HR is more important than ever, people are
the only s us tainable s ource of competitive
advantage.
Wats on Wyatt S tu d y

“ You can take my factories , burn up my buildings , but give me my
people, and I’ll bring my bus ines s right back again.”
- H e nry F ord -


What C E Os Really Want from HR
Reality C hec k

E mployers want HR to addres s s trategic is s ues involving the
c ompetitivenes s and performanc e of the firm… More than the role
of protec tor and adminis trator.


What C E Os Really Want from HR
Reality C hec k


The bus ines s
environment:
Globalization
Economic
uncertainties
Technology
innovations
Profitability thru Cost
& Growth
Intensified
Competition

Requires companies
to focus on:
•
•

•
•

Increasing value
Organizational
capabilities → fast,
responsive, cost
effective
Creating climate for
action
Unique competitive
advantage


Requires HR to
change:

Business savvy
Align with strategy
Strong bench
strength
Change catalyst
Help biz leaders to
achieve objectives


The C hanging Role of HR
Reality C hec k

A s urvey of 500 HR directors acros s E urope,
the Middle E as t and A s ia, found out that
only 15% of the activities carried out by HR
departments are related to " pure s trategic
interventions " .
Wats on Wyatt S tu d y


The C hanging Role of HR
The S hift in the B alanc e of HR Roles

HR needs to realign its service delivery model to add
more strategic value to the organization


Strategic
15%
Strategic
60%
Trans actional/
Operational
85%

Trans actional/
Operational
40%

% of available resources

Need to expand focus beyond its traditional & transactional role.


The Role of HR
Ulrich’s Four-Role Model

Four Roles for HR
• A dminis trative E xpert
• E mployee C hampion
• C hange A gent
• S trategic Partner

Dave Ulrich identifies four distinct roles of HR professional
that may add value to a business and create sustainable
competitive advantage.



The Roles of HR
Ulrich’s Four-Role Model
F u tu re /S trate gic F ocu s

S trategic Partner
P
R
O
C
E
S
S
E
S

A ligning HR & B us ines s S trategy
Active Role in setting strategic direction

C hange A gent
Managing Trans formation &
C hange
Effecting Transformation & Change

A dminis trative E xpert

E mployee C hampion

Managing The
Firm’s HR Infras tructure


Managing E mployees ’
C ontribution

Process Optimization & Efficiency

Motivated & Competent Personnel

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

D ay-To-D ay/O p e rational F ocu s

P
E
O
P
L
E


The Roles of HR
Ulrich’s Four-Role Model
F u tu re /S trate gic F ocu s
S trategic Partner

P
R
O
C
E

S
S
E
S

• Develops & aligns strategies with biz
• Assists line managers in solving organization,
people & change-related issues
• Contributes to management team’s strategic
decision-making
• Fosters systems thinking, customer focus
• Strategically manages workforce development

A dminis trative E xpert
• Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
• Manages people & HR related costs
• Ensures internal &external customer focus
• Applies information technology to rapidly
deliver quality HR products and services

C hange A gent
• Understands the organization’s culture & what
is effective and ineffective
• Institutionalizes change capability within the
organization
• Assists line managers to lead & facilitate change
• Acts as a consultant in organizational
effectiveness

• Enhances management development

E mployee C hampion
• Develops strategies and helps implement
actions that enhance human capital
contribution
• Helps build workforce commitment
• Ensures fair, ethical, and equitable people
processes and practices
• VOE

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

D ay-To-D ay/O p e rational F ocu s

P
E
O
P
L
E


The Roles of HR
Ulrich’s Four-Role Model
F u tu re /S trate gic F ocu s
S trategic Partner

P
R

O
C
E
S
S
E
S

• Develops & aligns strategies with biz
• Assists line managers in solving organization,
people & change-related issues
• Contributes to management team’s strategic
decision-making
• Fosters systems thinking, customer focus
• Strategically manages workforce development

C hange A gent
• Understands the organization’s culture & what
is effective and ineffective
• Institutionalizes change capability within the
organization
• Assists line managers to lead & facilitate change
• Acts as a consultant in organizational
effectiveness
• Enhances management development

when NOT done well… create a lot of
is s ues

A dminis trative E xpert

• Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
• Manages people & HR related costs
• Ensures internal &external customer focus
• Applies information technology to rapidly
deliver quality HR products and services

E mployee C hampion
• Develops strategies and helps implement
actions that enhance human capital
contribution
• Helps build workforce commitment
• Ensures fair, ethical, and equitable people
processes and practices

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

D ay-To-D ay/O p e rational F ocu s

P
E
O
P
L
E


The Roles of HR
Ulrich’s Four-Role Model

F u tu re /S trate gic F ocu s
S trategic Partner

P
R
O
C
E
S
S
E
S

• Develops & aligns strategies with biz
• Assists line managers in solving organization,
people & change-related issues
• Contributes to management team’s strategic
decision-making
• Fosters systems thinking, customer focus
• Strategically manages workforce development

A dminis trative E xpert
• Creates and delivers effective & efficient HR
processes and services tailored to unique
business needs
• Manages people & HR related costs
• Ensures internal &external customer focus
• Applies information technology to rapidly
deliver quality HR products and services


C hange A gent
• Understands the organization’s culture & what
is effective and ineffective
• Institutionalizes change capability within the
organization
• Assists line managers to lead & facilitate change
• Acts as a consultant in organizational
effectiveness
• Enhances management development

E mployee C hampion
• Develops strategies and helps implement
actions that enhance human capital
contribution
• Helps build workforce commitment
• Ensures fair, ethical, and equitable people
processes and practices

when done well give the organization
a great s trategic advantage

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

D ay-To-D ay/O p e rational F ocu s

P
E
O
P
L

E


HR as S trategic Partner


HR as S trategic Partner

•

Participates in designing & defining organization’s strategies

•

Contributes to management team’s strategic decision-making

•

Focuses on aligning HR strategies & practices with business
strategy → translate business strategy into HR priorities

•

Strategically manage people & infrastructure to support the
execution of strategies & the creation of value

 Strategically manages workforce development

Deliverable/outcome: S trategy execution



HR as S trategic Partner
C ore C ompetencies
HR as Strategic Partner should be able to:
S trate gic Partne r
C ore C om p e te ncie s
B us ines s Mas tery
Pers onal C redibility
HR Mas tery

Facilitate strategy development
for business teams by using
different techniques
Plan and facilitate strategy
deployment to the whole
organization
Align the organization strategy
with the business strategy to
ensure it will be delivered
Redesign the organization to
support strategy


HR as S trategic Partner
B ec oming A S trategic B us ines s Partner
Becoming A S trategic B us ines s Partner

Knowledge
Requirements
Bring

Bring
strong
strong
technical
technical
expertise to the table
and an understanding of
your company and its
strategy.

Develop
Develop
new
new
skills
skills
asas
needed. Understand the
data, the financials, the
market, etc.

Staying
Stayingfocused
focusedon
on
issues
issuesthat
thatmatter
matterto
tothe

the
business
business

Delivering capabilities
that make a real
difference

What
What
are
are
the
the
issues
issues
that
that
matter?
matter?
What’s
What’s
keeping
keeping
business
business
leaders
leadersup
upat
atnight?

night?
What’s
What’s
the
the
“elephant
“elephant
onon
the
thetable”
table”regarding
regardingthe
the
future?
future?
What
What
drives
drives
the
the
bottom
bottom
line?
line?
Focus
Focus
onon
business
business

objectives
objectives
Focus
Focus
onon
environment
environment

Provide
Provide
organizational
organizational
capabilities as required
by the business
strategy
objectives:
People
People
Goal
alignment
Strategy
Culture
Culture


HR as S trategic Partner
B ec oming A S trategic B us ines s Partner

Becoming a bus ines s partner s ounds eas y
but in practice demands a s hift in minds et

and capability


HR as S trategic Partner
Minds et S hift

•

Becoming a true "player" on strategic business issues → able
to challenge business leaders on their own ground

•

Architect who can synthesize best practices e.g. Total
Reward, Talent Management, OD, etc into integrated solutions
and implement at speed

•

Shifting from advising and consulting to challenging,
provoking, confronting business leaders

•

Letting go of the past and engaging with the future


HR as S trategic Partner
You are moving towards S trategic Partnering When…


You are involved in dis cus s ions (by invitation!) on the " people
implications " of a change or a new initiative in the organization before
things go wrong
Line Managers in confide in you about their concerns and problems ,
even when you are not providing a s olution then and there
Managers encourage you to tackle is s ues in their areas and expres s
confidence in your ability to do things you may never have done
before
You engage in genuine dialogue with line managers
The time frame of your work moves from pres ent/pas t to future es pecially longer term future
The " why” of what you is doing is very clear - in terms of
organizational need (not " becaus e we always do it/ have done it)