• Oct 25, 2019

From the new era of production and business

In a remarkable article on the Harvard Business Review, the world's leading business magazine, Dave Ulrich, who is considered the world's No. 1 "brain" on Human Resource, presents five points of change of the times today and that is also the reason why HR must change.

Globalization: This process has been happening in a rush and does not exclude any country or any business. It drives companies more than ever to "think globally, act locally". That is, the business activities, business production must be based on customer understanding, local understanding being to meet each specific needs of each specific customer group.

Profitability through growth: Previously, to increase profits, people often focused on cutting costs, saving. But today, that way is no longer effective, but only growth can create significant profits.

Technology: Technology is making the world smaller and faster. The task of managers is how to use technology effectively, to make them an integral part of production and business activities.

Intellectual Capitial: Knowledge has become a competitive advantage of businesses today. Therefore, the challenge for businesses is how to find, develop, treat and retain talent.

Changing: The world is constantly changing, making organizations need to have flexible people who adapt to change, constantly giving out creative ideas.


To the new role of HR

Changes in production and business environment require enterprises to make movements in order to adapt and develop, in which, the most important movement is personnel work. In his paper, Dave Ulrich also pointed out the four new roles of HR in the new era.

  • Partners in strategic planning and implementation: For a long time, the planning and implementation of the strategy was the work of the planning, strategy and implementation departments, HR only had the task of finding people to "assemble" into the planned 'picture' of strategy. With this new role, HR must participate at the beginning of the organization's strategic planning process, as well as with other departments to implement the strategy.
  • Administrative expert: For many years HR's work has been primarily recognized as an "administrator". Ulrich thinks they need to turn into "administrative expert". That is, not only does it act as a person who just enforces the regime policies properly, seeking to cut one, the other makes other parts of the business feel HR only as a hindrance. Instead, HR must advise other departments on how to streamline administrative tasks and processes in accordance with the strategy that is effective.
  • Recruiting employees: Jobs are becoming more and more demanding, in many companies, employees are constantly required to do more but pay less. In order to create and maintain a desired machine, HR must undertake the mission to motivate, inspire and work for employees, make employees understand the meaning of their work, and then join hands and heart. "Fight" for the development of the company. In addition, HR must be the voice of employees in discussions with management levels, an effective and reliable bridge between employees and manager levels.
  • At the center of change: "Change or die" is the slogan that all businesses across the globe are to set. But the mentality of employees is "fear of change" and fear of not being able to change. The job of HR is how to transform the psychology of change into exciting innovation, along with other departments to create and maintain change to survive and develop. In other words, HR must be at the center of the change of the whole organization.