Becoming an Employer of Choice: Mapping the Practices of a Winning Organisation

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Becoming an Employer of Choice: Mapping the Practices of a Winning Organisation

Transcript of Becoming an Employer of Choice: Mapping the Practices of a Winning Organisation

  • 1. Becoming an Employer of Choice:Mapping the Practices of a WinningOrganisationLiz GriffinSenior ManagerOrganisational Development

2. Overview The link between culture &high performance HR as a strategic businesspartner Developing winning peoplestrategies within yourorganisation Emerging trends 3. Ernst & Young Global network comprising morethan 100 000 people in 130countries Our vision is to contribute most tothe success of our people andclients by creating value andconfidence EY Australia: 4 000 People 10 offices (Sydney, Melbourne,Brisbane, Canberra, Adelaide,Perth, Darwin, Cairns, Townsville,Gold Coast) 4. Culture and High Performance 5. What is Culture?A pattern of basic assumptions invented, discovered or developed by agiven group as it learns to cope with theproblems of external adaptation andinternal integration that has workedwell enough to be considered valid andtherefore to be taught to new membersas the correct way to perceive, thinkand feel in relation to these problems(Schein,1985).Schein, E., Organisational Culture and Leadership, 1985. 6. Where Does Culture Fit?ClearDirectionCommunicationof DirectionAdapt Culture Keep strengths from currentcultural state that support direction Change other aspects to move todesired cultural state that willsupport directionUnique CurrentCultureBuild a Clear Direction Based on the strengths ofthe current cultureHubbard, G., Samuel, D., Heap, S., Cocks, G., The First XI: WinningOrganisations in Australia, 2002.Communicationof DirectionApproach 1Approach 2 7. The Research Culture has a significantimpact on a firms economic performance Nohria, Joyce and Roberson: What Really Works (2003) Hubbard, Samuel, Heap & Cocks: The First XI WinningOrganisations in Australia (2002) Watson Wyatt: Human Capital Index Human Capital as aLead Indicator of Shareholder Value (2001) Hewitt Associates: Best Employers to Work for in AustraliaStudies (2001-2003) Deal & Kennedy: The New Corporate Cultures (2000) Buckingham & Coffman: First, Break All Of The Rules (1999) Collins & Porras: Built to Last (1994) Kotter & Heskett: Corporate Culture & Performance (1992) Peters & Waterman: In Search of Excellence (1982) 8. The Business Basics: What Really Works4 + 2 = High PerformancePrimary ManagementPractices (4) Strategy Execution Culture StructureSecondary ManagementPractices (2) Talent Innovation Leadership Mergers & PartnershipsNohria, N., Joyce, W., & Robinson, B.,What Really Works, HBR, July 2003. 9. Benchmarking Successful Organisations7 Keys to High Performance Performance ManagementSystem Performance Culture Manager - Employee Interaction Formal Performance Review Informal Performance Feedback Day to Day Work Job OpportunitiesNB: The research found that although financial incentives contribute to retentionthey have less impact on high performanceCorporate Leadership Council, Benchmarking The High PerformanceOrganisation, 2003. 10. Building the Right Culture No culture or mix of cultures is bad or wrong in itself,only inappropriate to its circumstances (Handy, 1995). It is less about about creating a fun environment andmore about championing high level performance andethical behaviour. In winning organisations, everyoneworks at the highest level (Nohria, Joyce, Roberson,2003). In high performance cultures, talent is identified &utilised, performance is rewarded, potential is developedand everyone is accountable for outcomes. 11. Investing in Cultural Development getting culture right has virtually replaced cost cuttingrhetoric in senior management circles in the newmillennium. Australias blue chips across a range of industries areinvesting and engaging in cultural development. Its not about touchyfeely hugging sessions. It is about high performance, ownership, trust,transparency, accountability, empowerment, bettersystems, creativity, performance leadership, integrity,courage, respect, building communities and bottom lineresults.Fox, C., Workers By Design, AFR Boss, August 2003. 12. HR as a Strategic Business Partner 13. Developing & Implementing Business Strategy Strategy is about finding the matchbetween what an organisation can do -internal strengths and weaknesses - andwhat it might do - external opportunitiesand threats (Arrow, 1980). Strategy is also about matching,committing and adapting significantresources financial, people, physical,technology etc. At the heart of strategy is peopleorganisations dont implement strategy,people do. 14. Levels of Strategy Corporate strategy growth,portfolio, value proposition, position Business strategy growth,products & services, target clients &markets, position in industry Business unit strategy businessunit activities Personal strategy personalcontribution, personal goals andbehavioursHubbard, G., Samuel, D., Heap, S., Cocks, G., The First XI: WinningOrganisations in Australia, 2002. 15. Where does HR fit? Acting as operational managers vs businesspartners Known as personnel management vs strategichuman resource management Defined by what HR does vs what HR delivers Providing support vs integrating with firmstrategic development and implementation toachieve successful outcomes Transactional vs transformational facilitator File management & employee welfare vsstrategy and organisational culture focusUrlich, D., A New Mandate for Human Resources, HBR, Jan-Feb 1998. 16. Acting as a Business Partner Member of top executive team Contributor to strategy development andimplementation Strategy reflects an understanding of peoplecapabilities within the organisation Measures are identified to enhance capabilities Leaders are accountable for managing anddeveloping people capabilities People are engaged and committedBooth, A., A Look At Strategic Human Resource Management, Agenda, AIM,August 2003. 17. Developing Winning People StrategiesWithin Your Organisation 18. Developing Your Culture to Realise yourBusiness Strategy Leadership team engagement andcommitment Diagnosis & analysis - current state,future state, causal factors of currentstate, levers for change to achievefuture state Cultural development plan includingalignment of organisational systems,processes and structures Communication Implementation Review & evaluation 19. Inspirational Leadership ..the only thing of real importance thatleaders do is to create and manage culture and the uniquetalent of leaders is to work with culture (Schein, 1992). Culture is not a job a CEO can delegate.You will get thebehaviour you tolerate (McGilvary, CEO, Bayer, 2003). Culture is the most important driver of organisationalperformance. I spend 60% of my time on people, leadershipand culture (Cairns, CEO, Lion Nathan, 2001). BHP Charter: Every employee starts each day with a sense ofpurpose and ends each day with a sense of accomplishment(Anderson, CEO, BHP, 1998). 20. Attract, Retain and Develop the Best Peopleto Realise your Business Strategy Identification of core organisationalcompetencies Recruitment of people with capabilities, potentialand organisational fit Open, regular and constructive performancefeedback & development Reward & recognition linked to individual, teamand organisational outcomes Ongoing formal & informal learning &development opportunities Practical and supportive career development Commitment to succession leadership includingdevelopment and assessment centres 21. Creating a People Value Proposition2002 Compelling job attributes research manager quality* external equity* bonus* travel promotion opportunity internal equity flexible work environmentOther top attributes from 1999 research base pay hours worked job fit retirement benefits, empowerment location* Appeared in both studiesCorporate Leadership Council, Benchmarking The High PerformanceOrganisation, 2003. 22. Emerging Trends 23. Where is HR now? Adoption of SHRM has been slow SHRM has not always been accepted by key organisational players Often seen as only providing administrative support & a functional role Some HR practitioners still have a short term focus Perception is that HR practitioners are often lacking the commercialskills to assist with strategic planning Difficult to specify a direct relationship between certain peoplepractices & organisational performance HR practitioners are often lower paid than executives in similarpositions in the business HR practitioners often have limited exposure to a range of businessexperiences Perceived effectiveness of the contribution of HR to organisationalperformance & strategic outcomes is moderate to fairMichelson,G., & Kramer, R.,The State of HRM in Australia: Progress & Prospects,Asiapacific Journal of Human Resources, August 2003. 24. Emerging Issues Different workplace expectations - Gen X & Y Shortage of qualified and talented people as fewer peopleentering the workforce More people living longer with capability & a need to work to anolder age More focus by people on building social capital Less secure and continuous employment & less vertical careerstructures Outsourcing of administrative functions Need to manage even more flexible work arrangements Need to continue to address the issues of diversity in theworkplace Increase in managing global and transitional teams Increasing shareholder demands for corporate sustainability 25. Where is HR heading? Significant role in strategic development, strategicimplementation and change management Effective balancing of short & long term outcomes Constant reassessment of HR theory and practices Flexible people management Role in corporate social responsibility development Alignment of all people and business practices Less HR people, as line managers take up more people managementresponsibilities Outsourcing of some HR functions that are deemed to have less strategicrelevance HR practitioners who are flexible, a