Towards Institution Building and HR’s Next Agenda

Towards Institution Building
and

HR’s Next Agenda

National HRD Network
November 28, 2008 12th Annual Conference
Copyright © Rane
Chennai 1

Table of Contents

 Introduction
 Types of Organisations and their characteristics
 Total Quality Management (TQM)
 The Rane Journey
 HR’s Next Agenda

Copyright © Rane 2

Introduction
Rane - Mission and Value
 Provide superior products and services to our
customers and maintain market leadership
 Evolve as an institution that serves the best
interests of all stakeholders
 Pursue excellence through total quality
management
 Ensure the highest standards of ethics and
integrity in all our actions

Copyright © Rane 3

Introduction …

 What is an institution and how does an
organisation evolve into being one ?

 What is TQM and how is it relevant to
Institution building?

 What could be the role of HRM and how can it
contribute to Institution building?

Copyright © Rane 4

Types of Organisations & their characteristics

 Typically an organisation goes through six
stages in its evolution. Each stage is a
“state of being” or “identity”

Copyright © Rane 5

Types of Organisations & their characteristics …

Institutional

Humanistic

Purposive

Systemic

Opportunistic

Mechanistic
Copyright © Rane 6


The determinants of the various stages are :-
(a) Organisational focus

(b) Leadership focus

(c) Approach to customers

(d) Approach to improvements

(e) Approach to employees

Copyright © Rane 7


Of the six, four “identities” have characterized
Rane in its evolution

Copyright © Rane 8

Mechanistic …
Organisation focuses on survival

Leadership focuses on maintenance

Approach to Customers
 Only top management & few key people deal with
customers
 For most , lack of awareness of customers – at best, a
distant relationship
a) Organisational focus
(c) Approach to Customers
(d) Approach to Improvements
(e) Approach to Employees
Copyright © Rane 9

Mechanistic …
Approach to Improvements
 The concept does not exist
 There is only maintenance

Approach to Employees
 Paternalistic, “Father – Son” kind of relationship
 Top down, giving orders, expecting obedience
 No upward flow of ideas / suggestions, “Waiting for
orders” a) Organisational focus
 Loyalty not competency, is rewarded (c) Approach to Customers
Copyright © Rane 10

Systemic
Organisation focuses on systems
 Slow & bureaucratic in approach
 Low level of vibrancy & creativity
Leadership focuses on Structure & Order
 Management of boundaries

 Basically contractual in nature
 Give “value” for money, no more, no less a) Organisational focus
 Mechanical relationship with customers, (c) Approach to Customers

no closeness (d) Approach to Improvements

Systemic …
 Small improvements, no major changes
 Any major change is a “project”, involving massive
resources

 Focus on role clarity & boundaries
Clear organisation structure
Clear role definitions (b) Leadership focus
 Conformance, not performance is (d) Approach to Improvements

rewarded
Copyright © Rane
12

Purposive
Organisation focuses on aspirations and achievements
 The organisation is dynamic & full of energy

Leadership focuses on providing strategic direction
 Management of cross functional interfaces

 Viewed as opportunity
 Organisation invests in them to create a) Organisational focus
value (b) Leadership focus
 Closeness with customers emphasized (d) Approach to Improvements

Purposive …
 Big improvements
 Development of products & processes
 Market expansion
 Changes in management methodology

 Recognizing them as key resources
 Investing in developing their (b) Leadership focus

competencies (c) Approach to Customers
 Rewarding performance (e) Approach to Employees

Institutional
Organisation focuses on expression & relatedness
 The organisation must express itself
 It must relate to others
 It is full of energy & passion

Leadership focuses on inspiration
 It must inspire people

Approach to Customers a) Organisational focus
 Both relationship & opportunity (c) Approach to Customers
 Establish international brands (e) Approach to Employees

Institutional …
 Breakthrough changes in strategy
 Proprietary product development
 Ability to reinvent the organisation

 Leadership at all levels
 Nurturing & career development a) Organisational focus

 Employees experience dignity & pride (b) Leadership focus

Total Quality Management

Although there are definitions of TQM, my
preference is to leave it undefined


Total Quality Management …
Essence of TQM

Create
value for
customers

TQM
Continuous Total
Improvements Employee
Involvement


TQM in Action

Create Value for
customers

Continuously improve Educate and
processes involve employees

Actualize
stakeholder
expectations

Building an Institution

Characteristics of a TQ organisation
Customer Focus
 QFD
 FMEA
Continuous Improvements
 Standard Operating Procedures enable repeatability of
processes
 Daily Routine Management provides stable output and real time
control
 Fact based decision making
 Policy Deployment targets breakthrough improvements


Characteristics of a TQ organisation …
Employees
 Well trained, enabled and empowered employees driving
processes

 Cross functional teams, problem solving skills, and process
orientation

 Clear understanding of long term goals

 Perfect goal alignment



Goal Alignment!


Employees
 Well trained, enabled and empowered employees driving
processes

 Cross functional teams, problem solving skills, and process
orientation

 Clear understanding of long term goals

 Perfect goal alignment


The Rane Journey

Institutional

Humanistic

Purposive

Systemic

Opportunistic

Mechanistic


The Rane Journey …
 Mechanistic attributes were characteristic of Rane in
early 90’s
 Mid 90’s, Rane transited towards being Systemic
 Rane has discovered TQM to be a powerful enabler
in the process of evolution
 TQM practices have enabled Rane get to the
Purposive stage
 The goal is to become an institution. The learning
and practices continue …

HR’s Next Agenda


HR’s Next Agenda
 Employee expectations influenced by …
 Media
 Globalisation
 Wider choices
 Increasing income levels

 These have resulted in a new set of aspirations…
 To experience dignity and pride
 Perpetual Competency development
 Enhance employability

 These trends drive HR’s Next Agenda

HR’s Next Agenda …
 The focus areas of development

Innovation
& Problem Solving
Creativity

Continuous
Learning

Collaboration Risk Taking
Response
to
Change


 The new paradigm

Administrative Business Partner
Advisor The shift

Benevolent Architect
Prescriptor

It is about a shift in MINDSET and CAPABILITIES …

Business Partner– Deep understanding of
Business agenda

Architect – The HR landscape


 Let go of the past and Engage the future

 Intertwine Business and People value streams



I A
D C
THOUGHT T
E EXECUTION
LEADERSHIP I
A
S O
N


 “Man is the measure of all things”

Greek Sophists


Towards Institution Building and HR’s Next Agenda

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