1. • MYTHS VS REALITIES IN HR FUNCTION
• HR VALUE PROPOSITION
ASHISH KUMAR
MBA(IB)
HR VALUES
2. CHALLENGE ONE : GLOBALIZATION
• HR will need to treat models and processes for attaining global
agility, effectiveness and competitiveness.
CHALLENGE TWO : VALUE CHAIN FOR BUSINESS
COMPETITIVENESS
• Competitiveness requires faster customer responsiveness – innovation,
faster decisions, leading an industry in price or value , effectively linking
with suppliers and vendors to build a value chain for customers.
• To support value chain argument, research indicates that
employee attitude correlates highly with customer attitude.
3. CHALLENGE THREE : PROFITABILITY THROUGH
COST & GROWTH
• How can the organization create a commitment to rapid
growth and the culture that supports it while simultaneously
controlling cost.
• What are the HR implications of entering new businesses, of
leveraging core technologies that lead into unfamiliar
businesses.
4. CHALLENGE FOUR : CAPABILITY FOCUSED
HR professionals need to constantly seek the capabilities
necessary for success and routinely ask the following
questions:
• What capabilities currently exists and what will be required in
the future.
• How can capabilities be aligned with business strategies?
• How can HR practices be designed to create the needed
capabilities.
5. CHALLENGE FIVE : TRANSFORMATION
• Transformation changes the fundamental image of the
business as seen by customers.
• Managers and HR professionals need to focus on
transformation to create fundamental and enduring change.
6. IMPLICATIONS OF BUSINESS CHALLENGES FOR HR
AS A PROFESSION
• As champions of competitiveness, HR professionals must
focus more on the deliverables of their work rather than doing
their work better.
• They must learn to measure results in terms of business
competitiveness rather than employee comfort and to lead
cultural transformation.
• The HR function has been plagued by myths. It is time these
myths are overcome.
7. MYTHS V/S NEW REALITIES IN HR FUNCTION
• People get into HR because they like
people.
• Anyone can do HR.
• HR deals with the soft side and
therefore cannot be measured and
linked to Business performance.
• HR professionals must create the
practices that make employees more
competitive, not more comfortable.
• HR processes & systems are based on
proper theory & research which needs
to be mastered.
• The impact of HR practices on business
can and must be measured. HR
professionals must learn how to
translate their work into financial
performance.
8. MYTHS V/S NEW REALITIES IN HR FUNCTION
• HR focuses on costs, which must
be controlled.
• HR job is to be the policy police
and the health and happiness
patrol.
• HR professionals should learn to
add value and not reduce cost.
• HR practices do not exist to
make employees just happy but
to make employees committed
& competent.
9. THE PREMISE OF HR VALUE
• HR value proposition means that HR practices and
professionals are able to produce positive outcomes for key
stakeholders-employees, line managers, customers &
investors.
• When others receive value from HR work, HR will be credible,
respected & influential.
• Attempts at HR effectiveness without defining value will not
be desirable.
10. THE PREMISE OF THE HR VALUE PROPOSITION
• Influence with impact occurs when HR professionals start with
the beliefs and goals of the receivers.
• Who are the key stakeholders I must serve?
• What are the goals & values of the receiving stakeholders?
• What is important to them?
• What exactly do they want?
• When these requirements are fully understood, then the HR
professional can show an investment in an HR practice that will
help the stakeholders gain value.
11. HOW DO WE MEASURE THE VALUE OF HR
SERVICES?
• Two most common questions are raised by HR practitioners:
• How can we measure the value of what we do in HR in terms
that line and General Managers will understand and respect.
• How can HR metrics be incorporated in organization's
measures of business performance.
• To demonstrate its strategic contribution to senior managers, HR
needs a measurement system that focuses on two dimensions.
• Cost measurement
• Value creation
12. A SIMPLE ILLUSTRATION OF VALUE CREATION
____________________________________________
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FINANCIAL
_________________________________________________
CUSTOMER
_________________________________________________
INTERNAL/BUSINESS
PROCESS
_________________________________________________
LEARNING & GROWTH
Return of Capital
Employed
Customer
Loyalty
On-time
Delivery
Process Quality
Process Cycle
Time
Employee Skills
