Maximizing HR’s impact for Organizational
Excellence: A Post-Pandemic HRD Audit & Score Card 2500 based Intervention
T. V. Rao
Chairman, TVRLS
It is about 45 years back we created the new Human
Resources Development (HRD) Department and a Human Resources Function (HRF) first
in this part of the world. HRF was intended to be distinctive and differentiated
from Personnel. It was conceptualized with new vision, philosophy, values, and
goals to humanize the workplace. Subsequently in recent years I have even
argued and propagated HRD as philosophy and value based and is the job of every
individual, team, and organization and not merely that of a specific department
or function. When we conceptualized HRD in mid-1970s, it focused on competence
building (of individuals, roles, dyads, teams, and organization), Commitment
building and Culture building. HRF was given a larger goal of designing and
managing organizational excellence by restructuring, differentiating,
integrating, strategizing, planning, reviewing etc. with the help of various HR
systems and processes. Six subsystems identified to facilitate this process with
critical attribute identification (now
competency mapping) as a starting point were: , (i) performance management
(focus earlier was on appraisal), (ii) feedback and coaching, (iii) potential
appraisal development, (iv) career planning and development, (v) training and
(vi)OD. In the initial stages HRD
focused on supervisory and managerial class taking cognizance of the industrial
situation around that time, HRF included HR Administration, Worker Affairs
including welfare, Recruitment, HRIS etc.; making it a substitute for Personnel
function with Human Focus. The formation of CHRD at XLRI, NHRDN as a
professional body and AHRD as an institution to promote HR research and
education are attempts to keep HRD and HRF human focused. Recent attempts to
focus on Human as Possibilities than merely as resources is another attempt to
keep “Human” focused. Renaming personnel function as HR and in some cases Training
Centers as HRD venters without incorporating anything else prompted us to start
these institutions to keep the original thinking intact. Each of these
institutions (CHRD, NHRDN and AHRD) achieved to a significant extent the goals
though a lot more could have been done.
Opening of the Indian economy in early nineties, raises
in salaries, pay for performance initiatives and consequent pressure of talent
to compete globally, and create excellence, provided a new opportunity for HRD
to make a higher-level impact. A few organizations have propelled by the new
economy and liberalization, made a marvelous shift using HR as a strategic
business partner. Many remained to struggle using traditional personnel management
tools and approaches (largely control centric) with small changes. A few of
them have succeeded. High degree of target orientation, strategic search for talent
to remain competitive, using new opportunities to make an impact with short
term results and some times at any cost, mergers, acquisitions without caring
for employee interests in mind have brough new form of reputations as well as
disrepute to HRF. HRD became a “department” than “development” and “Human” slowly
got pushed to the background in our search to be competitive and global. The
focus shifted to achieving quarterly targets for brand building and win talent
wars in global platforms. A few organizations continued to do great work with
occasional ups and downs but not giving up their Human focus. Some of the
business houses and professionally managed corporations in India like Tatas,
Murugappa Group, TVS, Aditya Birla group, JK, Eicher, L&T, Bajaj, are examples of this as HRD philosophy and
values are largely ingrained in them. In the new IT sector corporations like
TCS, Wipro, Infosys etc. to mention a few also exhibited a high degree of HR
values and philosophy. Many PSUs and PSBs had these values as a part of their
DNA but struggled balance this with administrative issues and project this
adequately to the employees as well as community. Their good work often got
drowned under their success or failure in making them profitable and project
themselves adequately. There were many good ideas and practices from public
sector that got drowned under them under rated profitability and social
responsibilities. It is recognizing this need for continuous focus on people as
instruments of change and making things happen, we have even started a new
slogan “Human is not merely a resource but also a Possibility”. Accepting and
promoting the new slogan “ Human is not a resource” was meant to draw attention of employers and
employees to the forgotten or underplayed “H” and “D” in HRD reducing it to “R”
(Resources to achieve KRAs and targets.
Pandemic Provides new Opportunity to
Re-focus on forgotten HRD
Covid19 and
the Corona Virus pandemic has hit the entire world uniformly. Even well-developed
nations with high Human Development Index (HDI) were the first to be affected badly.
The pandemic has demonstrated the following:
1.
With all the developments in science and technology
(AI, MI, etc.) and invasion into space by reaching the moon and the mars, there
is still a lot that we do not know, and we cannot control.
2.
When such unknown factors like the Corona virus
or Covid19 or the pandemic strikes us, all human beings look equal. It strikes
us without caring for country, caste, religion, community, geographic
positioning, richness, economics status etc.
3.
Everyone should take care of self by using
protective gears like the masks, washing of hands, and avoiding contacts with
potential people and spaces that spread the virus. “Self-Management” becomes
the new norm by focusing on taking care of Self. In Eastern cultures like Asia,
where relationships are valued, the care for self extends to family. Individuals
and their families become the targets for safety and survival
4.
Assault on nature creates a very unhealthy
atmosphere and live and let live philosophy gets extended from humans to
animals, plants and all other forms of life and energy. The five elements of
nature earth, air, sun, space, water needs to be respected (ancient Indians
used to worship each of them as Gods). It is important to recognize that we are
a part of nature and assault on nature is not in the best interests of humans
in the long run.
5.
When pandemic struck the world some of the firms
started disappearing and or transforming and a new economic activity that aimed
at protecting lives and livelihood of people started emerging. For example,
some hotels got converted into hospitals and schools became shelters for
migratory workers and many started diversifying their activities to manufacture
equipment to guard lives. Corporations changed their orientation to care first
for people (employees) a, their families, and the communities where they live
and “Human” got refocused.
These significant lessons from
Pandemic are likely to remain as reports from across the world from scientific
community warn us to be prepared for more such universally impacting
emergencies or crisis situations like the pandemic.
Role of HR Post-Pandemic
I have argued in many of my recent
webinars, posts, and videos that anyone designated as HR Manager or HR Leader or HR facilitator must come to the
forefront and demonstrate that he/she can make a difference in the lives of
people. This is the most needed as well as opportune time to demonstrate the
might of HR Profession and professionals. Like the health professionals
designated as Corona Warriors (Doctors, Nurses, Paramedical staff, drivers,
support staff at hospitals and many others), has the single most important task
of saving the lives of people, HR facilitators in firms have the even more
challenging task of saving the lives as well ss livelihoods of the employees.
To work towards this purpose, I argued that first protect yourself (keep yourself healthy and fit to function
well) and your family, then your employees and their families, also ensure the
community where you live and community at large are also protected from the
pandemic and future calamities. All business activity is to be focused
therefore on remaining healthy and keeping each other healthy and planning for
future to make our environment healthy and the company we work healthy. The five
focal responsibilities of HR are: self, family, employees and their families,
community and employers who provide livelihood for all these. Remain healthy
and protecting all from the virus become top priority. The next priority is helping
the organization to be productive and ensure its economic and monetary wellbeing.
It is only a healthy and productive organization that can provide for the
livelihoods of employees. HR has the difficult and yet challenging role of ensuring
the lives and livelihoods of Humans beings that work for them. Work from Home,
wearing masks, remote meetings, remote discussions social media become focal
points besides restructuring work, multiskilling employees, creating new
product and service lines, cost savings, reallocation of portfolios, work
redistribution and compensation management. For example, some firms have
reduced the salary of high-end managers and ensured the bottom levels are secure
economically. These created perhaps some new tensions in the world of work and
new opportunities for some.
This has brought in new
perspective for HR. Once the pandemic is over or even when it is going on what
will be the role of HR? What happens to all that we talked of earlier as HR
systems and processes or practices? Will there be a culture change or
philosophy change? Will there be a new Avatar for HR? How should HR people sue
the pandemic as an opportunity to build a new culture or use new technologies
or systems and processes to make the organizations a healthy and happy place to
live?
What Changes and What Does not Change
Almost three decades ago I
presented a framework to help understand HRD’s contributions to organizational
excellence in my book on “The HRD Missionary”. In this framework organizational
excellence outlined five dimensions: (I) productivity measured by financial
performance, (ii) Growth and diversification, (iii) Cost management, (iv) brand
and (v) shareholder value. In recent years I added to this intellectual capital
value of the firm as represented by market value minus tangible assets and went
on to argue that HR’s role is to build both tangible and intangible assets
through people processes. In this conceptualization: HR systems and practices
are instruments designed to facilitate achievement of these organizational
excellence indicators and outcomes. HRD systems or instruments create HR
processes like role clarity, collaboration, positive organizational culture,
HRD climate and values. These in turn lead to HRD outcomes like more competent
employees, higher work commitment, higher utilization of employees, better job satisfaction,
or happiness at work higher retention etc. In this model HR systems and
Practices lead to creation of a Development Climate and positive Organizational
culture and should result in tangible talent management and intellectual
capital building. These in turn affect organizational excellence.
While converting this to audit methodology
for HR and its impact we identified a four-dimensional model of auditing. These
a were considered as four pillars of HRD audit to create organizational
excellence. These are: (i) HR systems
and strategies, (ii) HRD values and Organizational culture, (ii) HR Competencies
including those of HR staff, Top
management, Line managers and other categories of employees; and (iv) HR’s Impact
on talent management, intellectual
capital building and financial performance. In this framework the dependent
variables are both tangibles like increase in sales, financial performance, and
cost savings etc. and less tangibles like intellectual capital and talent. The independent
variables are (i) HR systems and strategies, (ii) HRD Climate & Positive
Culture and (iii) HR competencies (five categories of people). These three sets
of independent variables are interactive but also independent. Our research has
indicated that good HR systems effect firm performance through creation of
culture (Fr. Abraham’s work at XLRI). Both are driven by competent HR managers,
line mangers and top management and all other employees. Our research indicated
that each one’s impact on the other is not automatic. It must be driven in an
integrated way. However, we found very competent HR staff sometimes did not
deliver results if the culture is not well set and systems are not fully
mature. Similar way we found that even without sophisticated systems some
businesses houses in the past have created a HRD culture and impacted
performance. Our approach assumed each of these three sets of variables need to
be independently evaluated and an improved. Alongside their impact on tangible
talent management, less tangible intellectual capital, and financial performance
also to be assessed. This provided the framework for HRD audit and HRD Score
card 2500.The audit was based on an assessment of 12 HRD systems and 8 HRD strategies
which can be combined now to be termed as 20 HRD systems and processes. These
include:
1.
COMPETENCY MAPPING: Current and Future
2.
WORK MANAGEMENT SYSTEMS & MANPOWER PLANNING: Aligned with Vision and strategy
3.
RECRUITMENT: Scientific & Aligned
4.
INDUCTION AND INTEGRATION: All levels culture focused
5.
PERFORMANCE MANAGEMENT: Ownership & Performer focused
6.
COACHING AND MENTORING: Performance & Potential
7. LEADERSHIP DEVELOPMENT: 360
Feedback & ADCs focus on agility and resilience
8.
EMPLOYEE MOTIVATION & ENGAGEMENT: Rewards & Recognition
9.
CAREER DEVELOPMENT: VESATILITY, MULTISKILLING
10.
TRAINING AND LEARNING
11.
WORK FROM HOME or REMOTE WORKING MANAGEMENT
12.
SELF RENEWAL SYSTEMS & ORGANIZATION DEVELOPMENT
HR Processes (Earlier called as strategies)
13.
COMMUNICATION- families and community
14.
EMPLOYEE ENGAGEMENT
15.
QUALITY ORIENTATION
16.
CUSTOMER ORIENTATION
17.
EFFICIENCY ORIENTATION
18.
ENTREPRENEURIAL MIND SET
19.
HEALTH, SAFETY AND ENVIRONMENT
20.
CORPORATE SOCIAL RESPONSIBILITY
Each of these ae audited to make a
1000-point scale
HRD Values and Organizational
Culture was conceptualized as contoured by the following variables
1.
Openness
2.
Collaboration and Teamwork
3.
Trust and Trustworthiness
4.
Authenticity
5.
Proactivity and Initiative
6.
Autonomy
7.
Confrontation
8.
Experimentation
9.
Leadership Climate
10.
Motivation
11.
Communication
12.
Decision Making
13.
Goal setting
14.
Control, direction, and supervision of work,
15.
Shared Values
16.
Quality Orientation
17.
Rewards and Recognition
18.
Information
19.
Empowerment
20.
Learning Orientation
21.
Openness to Change
22.
Corporate Social Responsibility
23.
Health
24.
Safety
25.
Work Satisfaction and Motivation
Some of these variables figure out
both as systems and culture. For example, safety, quality, CSR, care for
environment etc. figure out both as systems and processes as well as culture.
They are distinguished and defined accordingly.
HRD Competencies are considered
separately for the following categories of employees
1.
HR Staff (10 competencies were identified also
incorporating Dave Ulrich’s earlier studies across the globe
2.
Top Management (Focus on styles)
3.
Managerial supervisory staff (Learning
orientation)
4.
Labor and Workmen and
5.
HR Department’s credibility
20 variables were identified to assess the Impact of HR on
Talent management, Intellectual capital, and Financial performance. These
include 5 dimensions of impact on Talent Management, 10 Dimensions of impact of
Intellectual capital and 5 dimensions of impact on financial performance:
HRD Impact on Talent
1. Talent attraction and
acquisition
2. Talent management: induction
and integration
3. Talent management: human
resource utilization, and employee engagement— (PMS, placements, incentives,
etc., performance management, mentoring and coaching, feedback)
4. Talent management: HR
development or competency building, and renewal
5. Retention and separations
management
HRD Impact on Intellectual capital
6.
Intellectual capital formation and structural
capital: customer capital
7.
Intellectual capital: impact on structural
capital formation attributable to HR interventions
8.
Intellectual capital formation: contributions to
human capital formation
9.
Intellectual capital formation: contributions to
social capital
10.
Intellectual capital: contributions to emotional
capital
11.
Intellectual capital: HR contributions to
relationship capital
12.
Intellectual capital: contributions to knowledge
capital formation
13.
HRD systems, strategy, and structure
14.
HRD competencies
15.
Values and culture
Business Linkages on Financial
parameters
16.
Cost reductions attributable to competencies
17.
Degree of financial literacy among employees
18.
Increases in sales per employee attributable to
HR interventions
19.
Market value to book value attributable to HR
(image and brand building due to competent managers and leadership development)
20.
Extent to which top management shows commitment
to leadership and knowledge sharing
Dave Ulrich’s Framework of Organizational (HR) Excellence
