New tendencies in the HR Function and Human Capital Managementhrforum2013.bapm.bg/uploads/HR Forum 2013/Besseyre.pdf · Agenda 1. Evolutionof Human Resources Management (HRM) 2. CriticalHR

HR Transformations:New tendencies in the HR Function

and Human Capital ManagementAssoc Prof Charles-Henri Besseyre des Horts, PhD

HEC Paris [email protected]

Agenda1. Evolution of Human Resources Management (HRM)

2. Critical HR practices

3. Five domains of HR transformations

• Cultural change

• Value creation

• Organizational agility

• Digital revolution

• Employee engagement

4. Future of HR : Outside-in roleHR transformations Prof CH Besseyre des Horts

"People-Oriented" Performance"Creating People Advantage" BGC 2012 Study

HR transformations Prof CH Besseyre des Horts

Evolution of HRM : Expertise + Sharing

AdministrativeLegal

Psychological

ManagerialStrategic

Innovative

Expertise1945 1965 1980 1995 2013

Lin

e M

an

ag

ers

'R

esp

on

sib

ilit

y

Marketer

Collective

Individual

(Diversity)

(Tools)

(Motivation)

(Protection)(Discipline)

(Business Partner)(Added Value)

Incubator (People Partner)

HR transformations Prof CH Besseyre des Horts

External & Internal Challenges

Local, National

Authorities,

Stakeholders

Customers

Providers

Competitors

Partners

Gen Y Employees

Managers

Unions

Shareholders

Financial

Markets

CHANGE

Internet

Social Networking

Internationalization

HR transformations Prof CH Besseyre des Horts

Key HR Tensions What is centralized...

…or decentralized

Combination of rolesbetween HR…

..and line managementWhat is done

internally or

...outsourced

Source : adapted from Bournois, 2008, 2010

Individual

Collective

Hard

Soft

HR transformations Prof CH Besseyre des Horts

HR / non HR Perceptions"Creating People Advantage" BGC 2012 Study

HR transformations Prof CH Besseyre des Horts

Most Critical HR Practices"Creating People Advantage" BGC 2012 Study

HR transformations Prof CH Besseyre des Horts

Low NeedTo Act

Strong NeedTo Act

5 Domains of HR

Transformations1. Cultural Change

2. Value Creation

3. Organizational Agility

4. Digital Revolution

5. Employee Engagement

HR transformations Prof CH Besseyre des Horts

Cultural Change

CLAN(Loyalty)

ADHOCRACY(Innovation)

BUREAUCRACY(Rules)

MARKET(Performance)

ClosedSystem

OpenSystem

Flexibility / LT

Rigidity / ST

Source : Adapted from Quinn & Cameron, 1998,2005

1980's 1990's

2000's

HR transformations Prof CH Besseyre des Horts

Cultural Change & HRM• Corporate culture and values represent the "glue" of the firm, they are founded

on basic assumptions and present beliefs

• Culture and values are becoming important in highly changing environments,

they represent guides for actions

• Most HR activities are concerned : recruitment, integration, training,

development, mobility, promotion, evaluation, compensation & benefits,

coaching…

• Matrix Values/Performance : an example of HR contribution

Low Performance High Performance

High on Values Training, development,

evaluation.

Mobility up (promotion, bonus,

development)

Low on Values Mobility out, coaching Second chance, coaching,

mobility

HR transformations Prof CH Besseyre des Horts

HRM Potential of

Value Creation

Administration Administration

StrategyStrategy

Traditional Approach VC Approach

ProcessesProcesses

HR transformations Prof CH Besseyre des Horts

Value Creation & HRM• Beyond the business partner role, HRM can play a more proactive role in bringing

innovative ideas and solutions to strategic issues : from a cost to a value creation view

of HRM

• Value creation role of HRM becomes important with the increasing number of

stakeholders in a sustainable development framework (e.g. : shareholders,

customers, suppliers, employees, community…)

• Value creation through HRM can occur in many strategic areas :

– Corporate culture : HR programs (e.g. training) reinforcing the firm’s values

– Organizational change : HR initiatives developing individual/collective resilience

– Company attractiveness : employer branding and induction programs

– Company performance : performance management system (assessment/rewards)

– International expansion : development of global and local HR processes (balance)

• Measurement of HR contribution to strategy becomes compulsory

HR transformations Prof CH Besseyre des Horts

• Organizational agility characteristics :

– Change as the DNA of the organization

– Anticipation and forecasting through the weak signals

– Flexible structures and network as dominant organizational forms

– Processes permanently questioned and revisited

– Lifelong learning and the right to fail

– Managerial upheaval with a real inversion of the pyramid

– Empowerment of "value zone" employees

• HRM contributions

– Highly visible and proactive role of HR in the change strategies

– Reinforcement of agility through HR policies and practices : recruitment, training,

development, performance management, compensation & benefits, career

management & mobility….

Organizational Agility & HRM

HR transformations Prof CH Besseyre des Horts

Digital Revolution & HRM• Digital revolution

– Web2.0 : one to many � many to many, top/down-bottom/up, content may be

dissociated from the tool

– Mobility and nomadic tools : anytime, anywhere, anybody

– Explosion of social networks (SN) :+ 1 billion users on Facebook, +200 million on

Linkedln, development of company internal social networks….

– 95 % of firms in Europe declare to use social networks in the recruitment

processes to source potential talents (2013)

• Consequences for HRM

– Time pressures, "crowd" effect , transparency imperative….

– In order to meet these challenges, HRM will have to revisit most of the

processes : strategic workforce planning, recruitment, training , compensation &

benefits, careers & mobility…

HR transformations Prof CH Besseyre des Horts

Recruitment 2.0 : Equality between Recruiters & Candidates !

Recruitment

Marketing HR :

Employer Brand

Informations about the candidate

Job search

Personal Marketing :

Individual digital identity

Informations about the

company and the recruiter

Re

cru

itm

en

t2

.0e

-re

cru

itm

en

t

20

07

> S

ocia

l N

etw

ork

s 1

99

8 >

Jo

bb

oa

rds

The company& and Recruiter

The Candidatewww.siteEntreprise.com

Source : Apec, 2011HR transformations Prof CH Besseyre des Horts

Employee Engagement & HRM• Engagement is the extent to which employees put discretionary effort into their work, in the

form of extra time, brainpower and energy for the company success (Towers Perrin). A model :

• HRM activities fostering employee engagement : values, CSR, training, development, rewards strategy … employer branding

Source : http://www.boston.com/jobs/nehra/062308.shtml

HR transformations Prof CH Besseyre des Horts

Employer Brand

The unique and

differentiating promise a

business makes to its

employees and potential

candidates

Employee experience

Actual delivery of the

promise throughout the

employee lifecycle

Brand strength

Attraction of the right candidates

Employee engagement and

retention

Differentiation from competitors

Customer engagement and

retention

+

• Attraction and retention of high quality employees is a competitive

necessity in order to differentiate from competitors

• HRM activities directly involved in employer branding : recruitment,

integration, training, development, compensation & benefits...

Employer Branding

HR transformations Prof CH Besseyre des Horts

Future of HR: Outside-in Role• Proposed by Dave Ulrich (and his colleagues) as the next wave of HR with a focus on external

issues by taking into account:

– The context and the setting in which the business operates

– The expectations of key stakeholders (customers, employees, managers, investors, communities, suppliers, partners….)

– The strategies that give to the firm a unique competitive advantage

• It is an appeal to go beyond the traditional boundaries of HRM : geographical, functional, technical…

• The outside-in role for HRM, for example, leads :

– To use customers’ expectations as standards for recruitment

– To involve investors and customers in the design of training programs

– To include communities environmental goals in performance management

– To take into account customers’ satisfaction index in the bonus package

• This role is supported by the development of 6 HR competencies

Source : Ulrich D., Younger, Brockbank & Ulrich M., 2012

HR transformations Prof CH Besseyre des Horts

6 Competences to Develop Outside-In Role

Strategic Positioner

Credible Activist

Change

Champion

HR Innovator &

Integrator

Capability

Builder

Technology

Proponent

Source : Ulrich D., Younger, Brockbank & Ulrich M., 2012HR transformations Prof CH Besseyre des Horts

Example of an

European MNCXXX BUSINESS AWARENESS

ROLE OF MANAGERFINANCE

HR COMPETENCIES

Know XXX business

Meet with Customer

Coach, Be a Leader

HR as Influential Business PartnerMaster financial basics,

Manage people costs and

productivity

Report on significant indicators

Master Key HR Competencies

Recruitment, Reward, Training and Development, Career Management,

Change Management, Communication and Employee Satisfaction etc

Source : Internal document, XXX, 2011HR transformations Prof CH Besseyre des Horts