HR Challenges in 21st Century

Himani Avasthi

Meeting Present and Emerging Strategic Human Resource

Challenges

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• How can HR influence firm performance?

• How can HR cope with workplace changes and trends?

• What are HR strategies that help a firm achieve competitive advantage?

Challenges facing HR

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Key HR Challenges for Today’s Managers: Environmental

• Rapid change• Workforce diversity• Globalization• Internet revolution• Legislation• Evolving work and family roles• Skill Shortages • Rise of the service sector

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• Quality, distinctive capabilities• Decentralization• Downsizing• Organizational restructuring• Self-managed work teams• Small business growth• Technology• Outsourcing

Key HR Challenges for Today’s Managers: Organizational

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Basic assumptions and beliefs shared by members of an organization…

• rules, norms

• behaviors

• philosophy

• dominant values

• feeling or climate

Key HR Challenges for Today’s Managers: Cultural

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Individual Challenges

• Matching People and Organization• Ethical dilemmas • Social responsibility• Productivity• Empowerment• Brain drain• Job insecurity

Key HR Challenges for Today’s Managers:

Individual

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Mission Statement: Otis Elevator

Our mission is to: provide any customer a means of

moving people and things up, down and sideways over short distances with higher reliability than any similar enterprise in the world.

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HR Strategy Leads to Improved Organizational Performance

HR Strategies

Organizational Strategies

Organizational Characteristics

Organizational Capabilities

Environments

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Porter’s Differentiation Strategy

• Efficient production• Explicit job descriptions• Detailed work planning• Emphasis on technical skills• Emphasis on job-specific training• Emphasis on job-based pay• Use performance appraisal

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Porter’s Low-cost Leadership Strategy

• Efficient production• Explicit job descriptions

• Detailed work planning

• Emphasis on qualifications and skills

• Emphasis on job-specific training

• Emphasis on job-based pay

• Use of performance appraisal

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Miles and Snow Defender Strategy -- RECRUITING

• Internal recruitment• HR makes selection decision• Emphasis on qualifications and skills• Formal hiring and socialization process

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Miles and Snow Prospector Strategy -- RECRUITING

• External recruitment• Supervisor makes selection decision• Emphasis on applicant fit with culture• Informal hiring and socialization process of

new employees

© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 15

Miles and Snow Defender Strategy -- Compensation

• Fixed pay

• Job-based pay

• Seniority-based pay

• Centralized pay decisions

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Miles and Snow Prospector Strategy -- Compensation

• Variable pay

• Individual-based pay

• Performance-based pay

• Decentralized pay decisions

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LEADERSHIPHow HR can be a Strategic Partner

• Understand styles of leadership

• Display appropriate leadership

• Demonstrate leadership at all levels of performance – team, individual, unit or organization

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HR must understand…– internal / external customers

– key business disciplines

– business structure, vision, values, goals, strategies, finances

– competitors, products, technology and sources of competitive advantage

KNOWLEDGE OF BUSINESSHow HR can be a Strategic Partner

© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 19

STRATEGIC THINKINGHow HR can be a Strategic Partner

• Understand strategic business planning

• Apply a systematic HR planning process

• Integrate HR systems to build capability and competitive advantage for the firm

• Develop and integrate department strategies within corporate framework

© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 20

PROCESS SKILLSHow HR can be a Strategic Partner

• Know management processes

• Know process skills: consulting, problem solving, evaluation and communication

• Understand organizational development

• Facilitate and manage change

• Manage under uncertainty and instability

© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 21

TECHNOLOGYHow HR can be a Strategic Partner

• Maintain HR documentation using knowledge management and technology

• Build firm’s capability using info systems

• Provide training in use of technology

© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 22

3M has a $1 billion budget and staff of 7,000. To speed growth, 3M announced a series of performance objectives for individual business chiefs who before enjoyed much free rein. In addition, 3M introduced specially trained “black belts” to root out inefficiencies in departments. If you were a “black belt”, what would you look for?

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