“Is HR (function) on the table or at the table?”
To my mind, the above statement says it all about the relevance and credibility of Human Resource Function. While “on the table” situation means that HR is a problem or the pain area in the organizational eco-system. The later one depicts the solution provider or value driver role in the journey of growth and excellence of an organization.
In a large majority of professional environments, HR has a key and critical role to play. But for HR to be at that stated place, calls for solid intent, orientation and execution capabilities. The success depends on how rather that what impact is created for each of the deliverables. Hence, HR needs to take a position of a line function rather than a staff function.
The essence of HR lies in three H’s i.e. H: Head (intellect or capability); H: Heart (emotion or humane approach) and H: Hand (action or deliverable). It is also critical to get aligned and oriented to overall business objectives of an organization. To be an effective contributor, HR needs to organize itself in to a structure which is focused on Human Capital and its development/growth. I think following architecture illustrates the various buckets of operations.
HR Framework
HR – Strategic Partner
• Vision, Mission and Values orientation
• Strategic alignment of HR function in creating stakeholder value
• Organization Architecture / structure creation
• Focus on leadership identification and development
• Talent identification and management initiatives – Retention focus
HR – Business Partner
• Understand Business and provide suitable HR services
• Attract & retain talent for the business
• Interface with Business Managers for implementation of various HR initiatives
• Create a culture of learning and growth
• Provide employees’ feedback and action planning
HR – Operational Expert / Functional Custodian
• Set and build suitable policies and processes
• Introduce effective performance measurement system
• Robust HRIS and reporting
• Focus on training including induction and orientation
• Compensation, Benefits & Reward Management
HR – Employee Champion
• Set and monitor effective communication process
• Employee engagement initiatives
• Focus on Work-life balance
• Create a culture of trust and transparency
• Providing opportunities for career growth and continuous learning
HR Structure:
The function has to perform mainly two roles, transactional & transformational. The transactional role focuses on hygiene factors while the transformational role focuses on creating value proposition for employee and organization. Both the roles are essential and are complementary to each other. It is critical to define competences for each of the roles and put suitable resource/s to carry out the set of deliverables.
Centralized HR
Decentralized HR Hybrid
HR Function is
mostly run out of the
corporate center Separate HR heads exist
in each business unit and
have little coordination with
the corporate center HR Function
operates through
specialized centers
of expertise
While the above broad framework is generic in nature, the most suited structure depends on size, phase of growth, complexity of operation and geographical spread.
HR Competencies:
Each HR professional requires following competences in order to contribute positively. However the degree (possession) of such competences will depend up on the role played.
• Functional knowledge
• Business Knowledge
• People Orientation
• Strategic Orientation
The junior member of the HR team is expected to have more focus on functional knowledge. At middle layer, apart from functional knowledge, it is critical to possess relevant business and people skills as well. At the HR leadership level, one is expected to possess all the above competences thoroughly.
HR Measurement:
Evaluation and Improvement (E&I) is a continuous process for all the professional / personal / social requirements. E&I create focus on the current and future needs and help in fostering innovation. Following methods provide suitable assessment and improvement plans.
• HR metrics
• HR Audits
• Surveys and polls
• Informal feedback
• Benchmarking
HR Interface:
Internal Interface:
As a service provider, HR interacts internally with one and all. It fosters effective two way communication, helps in creating positive work culture and facilitates effective measurement mechanism & employee development. As a people custodian, HR sets and regulates suitable policy implementation. Trust, Transparency & Togetherness should be the motto of every HR professional.
External Interface:
HR plays a vital role in providing support to organizational initiatives and requirements. Liaison with governmental agencies for compliances, industry interface for networking and better practices orientation, and interface with customers for understanding the expectations and translating them in to HR plans for suitable people strategies are some of the key action items. HR also helps in brand building, employer of choice and other corporate social responsibility initiatives.