Saturday November 13, 2010
Transform role of HR to meet challenges of new economy
KUALA LUMPUR: Business leaders must keep pace with the rapidly changing world by transforming the role of human resource (HR) and boosting the human capital performance to be more relevant to the challenges of the new economy.International Centre for Leaderhip in Finance chief executive officer Rajeev Peshawaria said the world was flat and changing faster than ever before but the human resource specialists were still largely focused on competency models, compensation and benefits and formulaic leadership development.“Some of the above are still very important, but business leaders need to adapt to the challenges of the new economy where strategy gets outdated too quickly,” he said in his keynote address yesterday at the American Malaysian Chamber of Commerce HR Conference with the theme HR Transformation to Improve Business Competitiveness and Sustainability.Peshawaria said the key to success in making HR more relevant in this uncertain world was to keep it simple so that everyone could understand and accept the vision and strategy of the company.“The brave new HR is a dependable catalyst that understands the challenges of the flat new world.“HR becomes the eyes and ears of the chief executive officer in helping drive responsible and sustainable growth of the business,” he said.Another speaker, Mercer Malaysia human capital head Eustace Gomez, said HR transformation today focused on the use of technology to deliver best practice HR services to business partners efficiently and consistently at lower costs so as to achieve the best business results.
“The objectives of HR transformation include being able to proactively respond to a business environment that is dynamic and constantly evolving,” he said.“HR needs to have a global mindset and not a ‘home’ mentality.”
http://biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7420155&sec=business
According to the article above, I start to think beyond of it. As a HR student for sure it’s very relate with my future life. Am I able to be a good HR and transform more than I should for the unexpected life with the unexpected economy? Seriously, I feel a bit worry to imagine what kind of changes that will be occur. It still 2011 and we are going to 2012 where I was 20 years old. How about next 20 years which I believe that there are a lot of changes either from economy aspects or anything else. Really curious and sounds scary to know it right? I realize that HR function is quite important to make a development for an organization to success greatly. Of course it will contribute for progress in our country. So basically it’s important for HR to get prepared and transform for all the challenges that will come across. As a good HR , they are supposed to know how to tackle all the employees as it is important for leadership development. HR have to plan and organize a simple and effective strategies and missions in order to make their employees understand more about what should they follow otherwise it will ruin the organization. Many HR operations are bogged down with personnel department transaction processing activities and struggle to deliver real business value. Some organizations in some developed countries are operating in an era of increasing global competition, aging workforces, ongoing skills shortages and under-performing educational systems. Their HR operations are prime weapons to address these challenges. Yet many HR functions today still struggle to define and deliver value above and beyond personnel department transaction processing activities. HR executives face a barrage of challenges, from cost-cutting to process improvement directives. HR organisations are under increased pressure to simultaneously reduce costs while continuing to improve service levels and capabilities. This bifurcated goal is increasingly encapsulated in the somewhat vague and nebulous – but alluring – concept of HR ‘transformation’. One immediate element of pursuing transformation often includes focusing on HR information technology (HRIT) and process outsourcing.The perception of HR as a strategic asset is critical in assessing an organisation’s commitment and desire to transform HR. HR organisations viewed purely as cost centres are more likely to focus on cost-cutting over process-improvement efforts. HR decision-makers were very receptive to the concept of HR transformation, according to the poll. For the purposes of the study, transformation was defined as “significant and sustainable improvement in the efficiency and effectiveness of core HR processes”. Forty-three per cent of respondents cited HR transformation as extremely important to their organisations, and the average score overall was 4.3 on a 5.0 scale, with only 1 per cent of respondents indicating transformation was extremely unimportant. There were many barriers cited, however, to successfully undertaking transformational efforts.
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