KB 2 Human Resource Strategy, Development & World Class

2

sept 2008

a h u m a n r e s o u r c e n e w s l e t t e r

highlights of this issue - IndustryChampion,Dr.Pradeep focusesondevelopingHumanResourceStrategy. -MonimoyandSajiri highlight theCompetencybasedEmployeeDevelopment System. -Niket Karajagi underlines the importanceof virtual teams inbuilding WorldClassOrganizations.

the editor’s column

industry champion Dr. N.G. Pradeep is currently Global Head – Organization Development at HexawareTechnologies Ltd.He has a richand varied experience of over 13 years spanning consulting, training, research and line management in Human Resources. He also holds a certificate in Organization Development from NationalTraining Laboratories,USA. Dr.N.G.Pradeep

Neha Arora is a young, pro-active, and energetic individual, with a passion for Human Resource Management & Training. She comes with a clear focusonmanagingHRinterventionsasacareer.She has worked onmultiple key projects in training and consulting areas over a period of time inAtyaasaa. The October edition will deal with aspects of Innovation inWorld Class Companies in continua- tion to the founders note,the Spiritual Quotient in corporates by an industry champion and check out the space for German Project Manager, Karsten Scherling. Neha Arora Editor Atyaasaa- Knowledge Beans editor@atyaasaa.com Information has value. In erstwhile days, the people who held on to their information, held the most power but today, the power resides in sharing information thus “ Knowledge Beans ” new edition reaches out to you. Let’s join hands together to share and spread information. The overwhelming response and feedback to the introductory issue of the“Knowledge Beans” gives me great pleasure and satisfaction. We honour your feedbacks and look forward to the same so that we can make reading the newsletter an enriching experience. Feel free to share your thoughts.

The exhortation that the HR Function in an organization must transform itself from playing an administrative/transactional role to becoming a Strategic Partner is here to stay.This has led senior HR Managers in several organizations to think on the lines of evolving a HR Strategy in alignment with the Business Strategy.Yet, there seems to be little clarity onwhat a HR Strategy should contain,and how to go about evolving it.This challenge becomes more daunting in the absence of a well-articulated Business Strategy.Inwhat follows,I attempt to outline the key components of a HR Strategy,and the basis for developing it. HR Strategy must articulate the following, if it has to enable the achievement of business objectives : 1. What competencies do we need to possess/build in our people?What kind of culture do we need to evolve? 2. What structure will be appropriate to best implement our business strategy and better serve our customers? 3. What systems do we deploy to ensure alignment and focus in implementation of our business strategy? The starting point of developing HR strategy, with or without a well-articulated business strategy,is to understand : 1. Themarkets / customer segments served by the organization 2. The value proposition underlying the organization’s offerings to different customer segments 3. The growth aspirations of the organization and potential avenues for growth

The customer value proposition helps to define the competency building agenda, and the behaviours and values (culture) that must be nurtured to deliver performance.The customer segments that we are serving (including geographical / industry scope), the nature of our offerings (products/services), our value proposition and our growth aspirations taken in tandem, enable the creation of an appropriate organization structure to better serve customers,while delineating accountabilities of various roles. To actualize the HR Strategy in terms of required competencies,desired culture,appropriate structure and creating alignment and focus in implementation of business strategy, HR should effectively leverage its various subsystems – Recruitment, Performance Management, Training, Operations, Compensation Management, Career Management and Leadership Development – each dovetailing well with the other. For example a) the scale of recruitment must be proportionate to growth aspirations b) recruitment and training should focus on acquiring/developing competencies critical to delivering the value proposition c) performance objectives should be effectively cascaded down the line using a system like the Balanced Scorecard d) performance objectives should be defined in line with business targets and accountabilities implied by the organization structure e) individual compensation must be tied to performance f) market positioning on compensation should reflect the supply-demand equation for competencies g) career progressionmust be tied to the potential to demon- strate required competencies for the next role h) behaviors that align with the desired culturemust be recognized / rewarded.

The alignment of HR subsystems is vital to the performance of any organization.What gives direction andmakes these subsystems distinct across organizations is the uniqueness of the HR Strategy,which is derived from the organization’s Business Strategy.

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