Dheeraj jain

HR’s Scenario In 2020

NOW
Local markets, operations
Manufacturing, clerical work
Hierarchy
Intermediaries; face-to-face
Obedience to formal authority
Stability, efficiency, control
Full time job
Customer service
Work done by employees
Fixed work location
Management prerogative
Loyal service
White, male workforce
Financial performance
“Get a job”
In 2020
Global markets, operations
Service, knowledge work
Networks
Direct access,virtual relationship
Questioning of formal authority
Change, creativity, flexibility, order
Part-time and project work
Shareholder, stakeholder value
Work done by many contributors
Diverse work locations
Social licence
Marketable knowledge, skills
Diverse workforce
Triple bottom line
“Get a life”

HR AT A CROSSROADS
 “Significant change is inevitable for HR” but “what HR will be and do is
not yet clear”
 SRHM is doing research to develop a vision for the future of HR and a
profile of the future HR practitioner
 An HR practitioner might be "a hybrid line manager" who is "first and
foremost a business executive" but has expertise in at least one HR
function.
SHRM President and CEO, Helen Drinan
 “We have to get management to understand that they're responsible for
people” AND “If we do our job—and work ourselves out of a job—so be
it."

EMERGING LEGAL ISSUES AT WORK

 NEW TECHNOLOGY ISSUES
 AGE CONSCIOUSNESS IN THE WORKPLACE
 GLOBALISATION OF EMPLOYMENT LAW
 TRAINING FOR LEGAL COMPLIANCE
 WORKPLACE SAFETY

HR EXECUTIVES’ VIEW OF THE FUTURE

TOP 5 BUSINESS CHALLENGES TOP 3 HR CHALLENGES

 Developing new markets
 Improving profitability
 Market share growth
 Becoming the recognised global
market leader
 Building shareholder value
 Attracting and retaining
talented people
 Improving organisational
capabilities
 Developing leadership skills
 Dheeraj jain

The bad and the ugly in HR”

 “Many HR people still lack business acumen”
 “We have not adequately managed high expectations
of HR”
 “There’s too much modeling of mediocrity… and way too little real
research going on”
 “We have overhyped e-learning and some other fads”
 “We do much order-taking… and mistaking talk for action”

Jim Moore, former Director of Workforce Development at Sun

Microsystems
in his address to the 2001 SHRM Annual Conference

FUTURE OF ORGANISATIONS: Scenario 1

SMALL COMPANIES,LARGE NETWORKS

 Autonomous teams of 1-10 people
 Temporary - task or project based
 Linked by high bandwidth, electronic network
 Venture capital infrastructure identifies promising teams and provides
financing
 Independent organisations for social networking, recreation,
learning,reputation building and income smoothing
 evolved from professional associations, unions, clubs, university
alumnis, neighbourhoods, families, churches
 they are home for our identity as projects come and go
Examples: Film industry; Prato Mills (Italy); Nike; Nokia PC Display Division

Small Company, Large Network HR

 Very specific HR scope focused on project organisation (e.g. talent
scouting/selection, pay, health & safety)
 Outsourced
 agents, brokers, specialist providers
 contract staff organisations handle the HR for their talent
as part of their brand and competitive strategy
 Mutual employment obligations spelled out in project contracts
 or implicit in industry standards
 or assumed from past working experience
 Project Manager’s reputation depends on his/her people skills and hence
there is a reluctance to delegate to HR specialists
 Selection is via networks, personal references, reputation
 Performance management is via peer pressure and industry/ professional
standards
 Rewards are contractual or entrepreneurial (equity based)
 Development is via doing leading edge projects
 Innovation is via brokers, deal makers, agents, sponsors
 Individuals rely on professional associations, “guilds”, managers/agents

FUTURE OF ORGANISATIONS: Scenario 2

 Dheeraj jain

VIRTUAL COUNTRIES
 Keiretsu-like alliances with operating companies in every country
 Minimal national allegiance - primary loyalty is to the corporation
 Traditional hierarchy or decentralised divisional structure
 Company is the focus for individual identity
 Company meets employees’ needs from cradle to grave
 Employees own the firm AND have right to elect the Board and
management
 Open book accounting informs management elections
 Specialist “organisational designers” travel through firm brokering
partnerships and fostering cross boundary communication
 Role of governments, industry unions is significantly reduced

CHANGING “HR” ROLES: Some Generalisations

PAST FUTURE

HR ROLE WAS CLEARLY PEOPLE/LEADERSHIP ROLE IS

DIFFERENTIATED
 mechanistic
(Personnel Admin)
 ritualistic, legalistic (IR)
 CEO’s eyes and ears
with the troops
 distinct professional
career paths
HR is HR’s responsibility
DISTRIBUTED AND DIFFUSE
 knowledge management
 relationship
management; teamwork
 legal compliance
 change management
 no distinct HR profession
- new hybrid roles
emerge
People/Leadership is
everyone’s responsibility

NEW CRITERIA FOR RATING “HR”?

 Profit generated per employee (compared to industry benchmark)
 Salary/wages costs compared to industry median (reflecting
value of corporate reputation/intangibles in labour market)
 Number of talented candidates applying for advertised (and
unadvertised) vacancies
 Time taken to satisfy customer orders, inquiries, complaints (compared to
agreed service standards)
 Incidence of customer complaints caused by employee behaviour
 Cost of re-work
 Cost/risk due to time lost through injuries, absences, disputes
 Rate/cost of unplanned turnover among good performers
 Percentage of customers citing “service quality” or “competent, caring
staff” as a competitive edge for the company
 Net cost of generating organisational improvements
 Percentage of revenue/profits coming from initiatives taken in
last 3 years
 Dheeraj jain
 Share price premium compared to industry peers