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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
Types of Organisations & their characteristics …

     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
Types of Organisations & their characteristics …

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




Copyright © Rane                                         8
Types of Organisations & their characteristics …
       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
                                                          (b) Leadership focus
                                                          (c) Approach to Customers
                                                          (d) Approach to Improvements
                                                          (e) Approach to Employees
Copyright © Rane                                                                         9
Types of Organisations & their characteristics …
       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
                                                                    (b) Leadership focus
            Loyalty not competency, is rewarded                    (c) Approach to Customers
                                                                    (d) Approach to Improvements
                                                                    (e) Approach to Employees
Copyright © Rane                                                                                   10
Types of Organisations & their characteristics …
       Systemic
     Organisation focuses on systems
            Slow & bureaucratic in approach
            Low level of vibrancy & creativity
     Leadership focuses on Structure & Order
            Management of boundaries

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

            no closeness                                (d) Approach to Improvements
                                                        (e) Approach to Employees
Copyright © Rane                                                                       11
Types of Organisations & their characteristics …
    Systemic …
   Approach to Improvements
       Small improvements, no major changes
       Any major change is a “project”, involving massive
        resources

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

               rewarded
Copyright © Rane
                                                (e) Approach to Employees
                                                                               12
Types of Organisations & their characteristics …
       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

      Approach to Customers
            Viewed as opportunity
            Organisation invests in them to create         a) Organisational focus
            value                                           (b) Leadership focus
                                                            (c) Approach to Customers
            Closeness with customers emphasized            (d) Approach to Improvements
                                                            (e) Approach to Employees
Copyright © Rane                                                                           13
Types of Organisations & their characteristics …
       Purposive …
      Approach to Improvements
            Big improvements
            Development of products & processes
            Market expansion
            Changes in management methodology

      Approach to Employees
            Recognizing them as key resources
                                                   a) Organisational focus
            Investing in developing their         (b) Leadership focus

            competencies                           (c) Approach to Customers
                                                   (d) Approach to Improvements
            Rewarding performance                 (e) Approach to Employees
Copyright © Rane                                                                  14
Types of Organisations & their characteristics …
       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
                                                    (b) Leadership focus
            Both relationship & opportunity        (c) Approach to Customers
                                                    (d) Approach to Improvements
            Establish international brands         (e) Approach to Employees
Copyright © Rane                                                                   15
Types of Organisations & their characteristics …
       Institutional …
      Approach to Improvements
            Breakthrough changes in strategy
            Proprietary product development
            Ability to reinvent the organisation

      Approach to Employees
            Leadership at all levels
            Nurturing & career development         a) Organisational focus

            Employees experience dignity & pride   (b) Leadership focus
                                                    (c) Approach to Customers
                                                    (d) Approach to Improvements
                                                    (e) Approach to Employees
Copyright © Rane                                                                   16
Total Quality Management

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




Copyright © Rane                                   17
Total Quality Management …
       Essence of TQM


                                    Create
                                   value for
                                  customers




                                   TQM
                    Continuous                    Total
                   Improvements                 Employee
                                               Involvement



Copyright © Rane                                             18
Total Quality Management …
       TQM in Action

                               Create Value for
                                 customers



       Continuously improve                                Educate and
            processes                                   involve employees



                                  Actualize
                                 stakeholder
                                 expectations




                              Building an Institution
Copyright © Rane                                                            19
Total Quality Management …
       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

Copyright © Rane                                                        20
Total Quality Management …
       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




Copyright © Rane                                                           21
Total Quality Management …
       Characteristics of a TQ organisation …

                           Goal Alignment!




Copyright © Rane                                22
Total Quality Management …
       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




Copyright © Rane                                                           23
The Rane Journey

                    Institutional

                     Humanistic

                     Purposive

                     Systemic

                   Opportunistic

                    Mechanistic

Copyright © Rane                    24
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 …
Copyright © Rane                                               25
HR’s Next Agenda




Copyright © Rane                      26
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
Copyright © Rane                                         27
HR’s Next Agenda …
     The focus areas of development


                          Innovation
                              &         Problem Solving
                           Creativity


                                   Continuous
                                    Learning


                   Collaboration                Risk Taking
                                    Response
                                       to
                                     Change


Copyright © Rane                                              28
HR’s Next Agenda …
     The new paradigm




             Administrative                           Business Partner
               Advisor            The shift


             Benevolent                                   Architect
             Prescriptor




               It is about a shift in MINDSET and CAPABILITIES …
Copyright © Rane                                                         29
HR’s Next Agenda …
    Business Partner–   Deep understanding of
                        Business agenda

    Architect           –    The HR landscape




Copyright © Rane                                30
HR’s Next Agenda …
     Let go of the past and Engage the future

     Intertwine Business and People value streams




Copyright © Rane                                     31
HR’s Next Agenda …




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




Copyright © Rane                                    32
 “Man is the measure of all things”


                                           Greek Sophists




Copyright © Rane                                            33
Copyright © Rane   34

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Towards Institution Building and HR’s Next Agenda

  • 1. Towards Institution Building and HR’s Next Agenda National HRD Network November 28, 2008 12th Annual Conference Copyright © Rane Chennai 1
  • 2. Table of Contents  Introduction  Types of Organisations and their characteristics  Total Quality Management (TQM)  The Rane Journey  HR’s Next Agenda Copyright © Rane 2
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. Types of Organisations & their characteristics … Institutional Humanistic Purposive Systemic Opportunistic Mechanistic Copyright © Rane 6
  • 7. Types of Organisations & their characteristics … 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
  • 8. Types of Organisations & their characteristics … Of the six, four “identities” have characterized Rane in its evolution Copyright © Rane 8
  • 9. Types of Organisations & their characteristics … 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 (b) Leadership focus (c) Approach to Customers (d) Approach to Improvements (e) Approach to Employees Copyright © Rane 9
  • 10. Types of Organisations & their characteristics … 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 (b) Leadership focus  Loyalty not competency, is rewarded (c) Approach to Customers (d) Approach to Improvements (e) Approach to Employees Copyright © Rane 10
  • 11. Types of Organisations & their characteristics … Systemic Organisation focuses on systems  Slow & bureaucratic in approach  Low level of vibrancy & creativity Leadership focuses on Structure & Order  Management of boundaries Approach to Customers  Basically contractual in nature  Give “value” for money, no more, no less a) Organisational focus (b) Leadership focus  Mechanical relationship with customers, (c) Approach to Customers no closeness (d) Approach to Improvements (e) Approach to Employees Copyright © Rane 11
  • 12. Types of Organisations & their characteristics … Systemic … Approach to Improvements  Small improvements, no major changes  Any major change is a “project”, involving massive resources Approach to Employees  Focus on role clarity & boundaries Clear organisation structure a) Organisational focus Clear role definitions (b) Leadership focus (c) Approach to Customers  Conformance, not performance is (d) Approach to Improvements rewarded Copyright © Rane (e) Approach to Employees 12
  • 13. Types of Organisations & their characteristics … 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 Approach to Customers  Viewed as opportunity  Organisation invests in them to create a) Organisational focus value (b) Leadership focus (c) Approach to Customers  Closeness with customers emphasized (d) Approach to Improvements (e) Approach to Employees Copyright © Rane 13
  • 14. Types of Organisations & their characteristics … Purposive … Approach to Improvements  Big improvements  Development of products & processes  Market expansion  Changes in management methodology Approach to Employees  Recognizing them as key resources a) Organisational focus  Investing in developing their (b) Leadership focus competencies (c) Approach to Customers (d) Approach to Improvements  Rewarding performance (e) Approach to Employees Copyright © Rane 14
  • 15. Types of Organisations & their characteristics … 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 (b) Leadership focus  Both relationship & opportunity (c) Approach to Customers (d) Approach to Improvements  Establish international brands (e) Approach to Employees Copyright © Rane 15
  • 16. Types of Organisations & their characteristics … Institutional … Approach to Improvements  Breakthrough changes in strategy  Proprietary product development  Ability to reinvent the organisation Approach to Employees  Leadership at all levels  Nurturing & career development a) Organisational focus  Employees experience dignity & pride (b) Leadership focus (c) Approach to Customers (d) Approach to Improvements (e) Approach to Employees Copyright © Rane 16
  • 17. Total Quality Management Although there are definitions of TQM, my preference is to leave it undefined Copyright © Rane 17
  • 18. Total Quality Management … Essence of TQM Create value for customers TQM Continuous Total Improvements Employee Involvement Copyright © Rane 18
  • 19. Total Quality Management … TQM in Action Create Value for customers Continuously improve Educate and processes involve employees Actualize stakeholder expectations Building an Institution Copyright © Rane 19
  • 20. Total Quality Management … 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 Copyright © Rane 20
  • 21. Total Quality Management … 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 Copyright © Rane 21
  • 22. Total Quality Management … Characteristics of a TQ organisation … Goal Alignment! Copyright © Rane 22
  • 23. Total Quality Management … 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 Copyright © Rane 23
  • 24. The Rane Journey Institutional Humanistic Purposive Systemic Opportunistic Mechanistic Copyright © Rane 24
  • 25. 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 … Copyright © Rane 25
  • 27. 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 Copyright © Rane 27
  • 28. HR’s Next Agenda …  The focus areas of development Innovation & Problem Solving Creativity Continuous Learning Collaboration Risk Taking Response to Change Copyright © Rane 28
  • 29. HR’s Next Agenda …  The new paradigm Administrative Business Partner Advisor The shift Benevolent Architect Prescriptor It is about a shift in MINDSET and CAPABILITIES … Copyright © Rane 29
  • 30. HR’s Next Agenda … Business Partner– Deep understanding of Business agenda Architect – The HR landscape Copyright © Rane 30
  • 31. HR’s Next Agenda …  Let go of the past and Engage the future  Intertwine Business and People value streams Copyright © Rane 31
  • 32. HR’s Next Agenda … I A D C THOUGHT T E EXECUTION LEADERSHIP I A S O N Copyright © Rane 32
  • 33.  “Man is the measure of all things” Greek Sophists Copyright © Rane 33