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Global competition leads to re-focus on people development

Punita Jasrotia Phukan / New Delhi

How do you select and retain talented people? How can you create an environment, which helps people thrive at work? Many such questions form an integral part of a company’s HR policy and their importance has increased post the economic slowdown. Increased global competitiveness has given way to uncertainty, which is impacting the environment within an organisation. This is where the role of an HR manager is becoming even more crucial.

Industry observers point out that interesting changes are happening in HR circles. The increased focus on RoI, HR outsourcing and the need to have a productive and lean workforce, has made the job of an HR manager more difficult. The focus on people development, empowerment and organisation binding is figuring high on the priority list of HR managers as it ultimately leads to high retention.

Lately, there has been increased emphasis on aligning HR strategies to business goals. According to Vinod Malhotra, head of human resources at Escosoft, “In this scenario the primary demand on the HR manager is to improve the cost-benefit ratio pertaining to human resources while simultaneously ensuring that adequate skills exist to meet business pressures. All this needs to be done real fast.”

People development

Traditionally the HR department has played dual roles—an operational function (such as recruitment, personnel and performance management, employee relations and statutory compliances) and a human developmental role (comprising people development, culture and organisation-building). Both these functions have always been considered “soft” roles.

Today the equation has changed. The HR department plays a key role in the company’s overall business strategy. HR managers have a clear understanding of the business, the organisation, its vision, mission, values and are given ample freedom to bring processes in place to get people aligned to these values and goals. The focus of HR today is to create an agile organisation, which can innovate rapidly and exceed client expectations constantly, rather than just managing people. According to Ajit Issac of People One Consulting, an HR manager is now seen as an employee advocate, a change mentor and a strategic partner in business. “Successful organisations have understood that it is only the people who can make an impact on its business, and not the number of bodies but the competency of each employee that adds value,” he says.

Sabu Thomas, director of human resources for Netkraft, states that the HR is expected to give individual attention to each employee’s performance and continuous upgradation as per the business needs. Thomas adds that the situation has changed from running on pre-planned training calendars to helping the line HR managers draw the training plan. “This helps in continuous monitoring of each employee’s performance, as the concept of RoI is applicable even in people development activities,” he says.

Another change being witnessed is in the performance appraisal system based on qualitative assessment to target-based and metrics-driven performance measurement process. This helps in highlighting the individual contribution of an employee to the business during a particular period. Compensation system is also being directly linked to individual contribution to the business. On the other hand, career growth is now competency bound rather than time bound. “The end result is that more and more young bosses are found in performing organisations. These organisations are keen to recognise and reward employees who are ‘fast trackers’ and retain them within the company,” says Thomas.

Organisation driven efforts

People development is one of the critical responsibilities of the HR department in any progressive organisation. P K Gupta, director of strategic development of ICON Operations at Legato Systems says, “If people are not learning new skills and developing themselves, they will be out of job soon. This has made people development a high priority area in every HR department today and also an important factor for organisational growth and overall team development.” K M Bopanna, head of human resource at Tyco Electronics, adds that the ability of an employee to retain, modify and enhance his knowledge and skill levels depends on his on-job experience/ training imparted to him. However, Sanjay Aggarwal, managing director of HR Minds Consulting feels this has not been very successful, “The company expects a lot of self learning to happen while the employee expects all training to be imparted by the company.”

The need is to make a conscious effort to plan for employee development initiatives as part of the project plan. Greg D’Souza, vice president of human resources at vMoksha Technologies says, “Employees often complain that they do not see much focus on training and development or career planning. A structured approach to employee development helps in enhancing their morale and ensuring availability of trained resources to meet the business needs.”

Effective people management

The basic trait required in an efficient HR manager is his ability to gauge the strengths of his employees and put them to best use. Be a supportive manager and create an environment where employees feel assured that they can fall back for support in difficult situations. He should be able to delegate responsibility, while always retaining the accountability. Lastly, personal touch plays an important factor for creating a sense of belonging with the company. The person should be very effective at understanding people, their skill sets and emotional intelligence which will help in goal setting and finally achieving the desired results. Take the case of Vertex, which has a programme called “Management By Walking” (MBW) system. It makes it mandatory for managers to spend an adequate part of their work time on the operations floor interacting with employees and be easily accessible.

Empowering the employees

Empowerment forms a critical factor in case of people development. Industry studies point out that empowering employees does give them a good feeling of ownership and accountability.

Take the case of HCL Comnet, which has automated most of its processes to create a self-sufficient environment. Greg D’Souza points out that taking smaller decisions within one’s work area develops the decision-making ability and gives them the confidence to take difficult or high impact decisions in the future. “Provide them the broad operating framework and allow them some freedom to operate and you will see it showing much better results,” he says. According to him, an organisation that promotes a culture of empowerment can expect to identify potential leaders of the future from within.

Agrees Issac, who says that an empowered employee has dreams for the company and a great sense of ownership. He would be a person with the right skill sets to do the job and would naturally have the freedom to take decisions pertaining to his area of functioning. “In today’s highly competitive world of business, speed, efficiency, service and perfection differentiates you from competition. An empowered employee while facing a customer will be a very confident and effective representative of the company who can take quick decisions and implement things faster,” he says.

Choosing the best performers

Selecting top performers and working on them has been a recent trend, informs Atul Srivastava, head of people relationship management at Cap Gemini Ernst & Young. Talented people, who continue to develop skills and increase their value to the organisation and customers, are the most important assets in any organisation. The companies are creating different training programmes to help them graduate to future leaders within the organisation. “The idea is to prepare them for any job, anywhere and they will be successful,” he says.

Some key points to remember

The organisation has to ensure that communication is timely and open to retain employee trust. This also means that there is continuous feedback from employees, which helps in better productivity.

There has to be a common theme built relating to vision, participation, control, measurement of work processes, communication and commitment. Experts point out that if you create an environment where people truly participate, you don’t need control. The employees do what needs to be done.

Send feedback to punita@expresscomputeronline.com

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