1. Lecture 6 1 HR FUNCTION RE-ENGINEERING Lecture 6

2. 2 HR FUNCTION RE-ENGINEERING Summary 1.Some reasons for re-engineering the HR function 2.Impact analysis on strategy, organization, management and employment 3.Global impact on the HR function 4.Implementation plan 5.Main targets of the implementation plan 6.Consequences for operational and organizational issues

3. Lecture 6 3 HR FUNCTION RE-ENGINEERING 1_ Some reasons for re-engineering the HR function 1/3 Traditional activities In a context of low competition and vertical corporate structures, traditional HR activities were: - Recruitment: employment contracts - Headcount management - Payroll administration - Training program - Social insurances etc. All these activities made up the hard core of HR activities

4. Lecture 6 4 HR FUNCTION RE-ENGINEERING 1_ Some reasons for re-engineering the HR function 2/3 Trends and forecasts But due to the pressure of the market and the evolution of management practices, "soft HR" activities had to be considered: - market pressure = clients expect more competencies from the employees - managers from other corporate branches expect new services from HR

5. Lecture 6 5 HR FUNCTION RE-ENGINEERING 1_ Some reasons for re-engineering the HR function 3/3 TRENDS and FORECASTS Market Managers HARD HR FUNCTION SOFT HR FUNCTION IMPACT on: strategy organization management employment

6. Lecture 6 6 HR FUNCTION RE-ENGINEERING 2_ Impact analysis 1/3 Impact on: 1) Strategy = The HR function includes: - Change leadership - Support to managers in implementing strategic decisions - Search for new work organization - Implementation of new relationship between managers and employees 2 ) Organization = - The HR function has to reduce its own costs (less bureaucracy) - Optimization of all HR processes: recruitment, mobility, development

7. Lecture 6 7 HR FUNCTION RE-ENGINEERING 2_ Impact analysis 2/3 Impact on (continue) : 3) Management - The HR function needs to become a business partner able to understand the situation managers have to deal with (for example, to set up very quickly a new training programme because of competition and customer requirements, or to provide employees with new competency profiles as soon as possible) - HR managers have to develop a new relationship with other managers and even to share with them part of their responsibilities

8. Lecture 6 8 HR FUNCTION RE-ENGINEERING 2_ Impact analysis 3/3 As a result: The pressure of the market will oblige the HR function to adopt a sharing-based approach to traditional activities, with simplification of all processes and user-friendly HR management tools for managers The managers expect tools for job evaluation, career orientation, change management, administration of benefits and incentives, etc. - Autocratic management styles are being replaced by teamwork encompassing individual initiatives

9. Lecture 6 9 HR FUNCTION RE-ENGINEERING 4_ Global impact on the HR function Why change the orientation of the HR function ? 1) Turn the organization towards customer service 2) Go from a public service culture to a service organization culture 3) Develop collective competency 4) Orient employees towards emerging occupations 5) Welcome change in order to meet the market dynamics

10. Lecture 6 10 HR FUNCTION RE-ENGINEERING 5_ Main targets of the implementation plan 1/3 Make HR function into a management support tool - for the contributions they expect - with the competencies and the organization required Slash the cost of the HR function to improve the performance of the support functions Contribute to business development through the HR domain The HR function evolution project should be an opportunity for introducing a new, more effective management mode and improving the credibility of line management

11. Lecture 6 11 HR FUNCTION RE-ENGINEERING 5_ Main targets of the implementation plan 2/3 Three types of activity: CULTURE mobilizing line management empowering the staff ORGANIZATION build up HR at operational unit level clarify HR objectives at every level streamline the HR hierarchy set up HR service centres (sharing) HR professionalization plan PROCESS simplification automation

12. Lecture 6 12 HR FUNCTION RE-ENGINEERING 5_ Main targets of the implementation plan 3/3 Strong pressure for results: staff cuts for the HR function Top-level commitment: respect for individuals and recognition of HR competencies managers have to buy into the process, and provide top-level coordination of reforms gradual implementation of process

13. Lecture 6 13 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 1/11 Impact on the tasks of the different levels in the organization: national, regional/territorial, operational, HR service centre The regional/territorial level is the interface, it provides support to the operational level in the form of expert advice and a framework for sharing - management planning for jobs and competencies - mobility management (rules of the game, critical populations) - management of upgrading or/and transition programmes - managerial administration - customized support for operational unit executive

14. Lecture 6 14 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 2/11 Guidelines for division of responsibilities between operational and territorial (regional or central) units: -Anything to do directly with work situation ► inside Operational Unit (unit and team manager role) -All individual management decisions ► inside Operational Unit (manager tasks) -The management level above the operational unit retains the policy function, process design and specialized HR expertise (legal, workplace law, disputes etc.)

15. Lecture 6 15 HR budget Payroll employment budget Recruitment -Process -Offers and choice of jobs -Contract Pay -Policy (areas and components) -Changes Jobs -Quantitative and qualitative -Development of competencies -Evaluation/promotion -Management planning for jobs and competencies Territorial level X HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 3/11 Operational unit X

16. Lecture 6 16 Organization and conditions of work - organization - conditions of work Workforce relations - relations with labour representatives - internal communication Information system/management control IT system management control Other Social welfare system Territorial level ? X HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 4/11 Operational unit XXXXXXXX

17. Lecture 6 17 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 5/11 Example of HR function activities and organization in an operational unit I – Jobs and competencies Start reflection early and involve managers, to look at occupations, flows, needs Set up an individual development function for employees, to handle all processes involved in professional development Develop training and career management policy Success depends on two crucial factors: –timeliness –involvement of the management

18. Lecture 6 18 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 6/11 II – Social dialogue Involve the supervisors = social monitoring HRD of the Operational Unit is the first main player » acts by delegation of the OU director » recognized by the players: unions and managers Strengthen WHS committee competency and standards for workplace health and safety and coordinate the activity with logistics

19. Lecture 6 19 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 7/11 III - Communication and managing change Need to set up operational systems for communication and support for managers and their teams Action through a permanent mechanism to give impulse to management practice Effective translation, for the benefit of the teams, of the communication that takes place on HR issues with managers HR players need personal communication skills

20. Lecture 6 20 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 8/11 IV – HR control – synoptic reporting Strengthen the financial approach in HR Know how to translate specific decisions into budget terms BUT a steering mechanism is needed Ensure effective relations with HR Service Centre

21. Lecture 6 21 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 9/11 HR team of operational unit I – HR Director –Carries all HR activities, and coordinates them. –Puts policies into life and ensures consistency –Provides support/advice to management –Represents the OU director before the unions –Carries communication in its own domain –Organizes reporting –Is business partner

22. Lecture 6 22 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 10/11 II – The HR team –Includes experts, with a minimum of multi-role capability –Need strong skills in job management and guidance –Must allocate effective resources to individual development –Must strengthen its action and skills in HR control and guidance

23. Lecture 6 23 HR FUNCTION RE-ENGINEERING 6_ Consequences for operational and organizational issues 11/11 To be discussed: Allocate resources specifically for: moderation of social dialogue communication and management of change HR monitoring –Inclusion of activities: internal communication workplace health and safety