Business Sustainability through 3G HRM

What is 3G HRM?

1st Generation - Personnel Administration

2nd Generation - Human Resources Management

3rd Generation - Organisational Effectiveness

The convergence between the challenges confronting business, the need for top talent to deliver, and the emerging shortage of just that talent calls for 3G HRM that is strategic, influential and credible. Still young, the Human Resources profession has been evolving over the past three decades. The first generation of HR, 'Personnel Administration', remains the foundation of the function across organisations of all sizes, and is predominantly a support role, providing the core administrative transactional HR services. Second generation 'Human Resources Management' meant working more closely with the line managers to truly understand their challenges. Generalist HR managers are the major interface between HR and the business unit. They are Business Partners, developing HR systems that facilitate the implementation of business plans.

"3G HRM" - this Strategic Partner role is expected to contribute to business strategy at the organisational level, based on considerations of human capital, organisational capabilities, readiness and strategically differentiating HR practices. This role is NOT about implementation but about thought leadership in the people management space. All three levels of service provided by the HR function are integral to customer satisfaction and organisational success, however the greatest impact can be had when the function is truly strategic in its thoughts and actions.

Implications for HR

Changing Role Requirements

Changing Skill Sets

Changing Metrics

The next generation of HR practitioners needs to be able to fulfil a whole new range of responsibilities that extend well beyond the original HR Position Description. The increased demand for more sophisticated and technically astute HR practitioners is therefore not surprising. There is a feeling however, that while tertiary qualifications are recognised, they do not equip graduates with the advanced interpersonal qualities that they will require, as well as the change management skills essential to today's rapidly evolving business environment. At the Strategic Partner, and even Business Partner level, line managers and senior executives often value experience more highly than qualifications. The use of HR metrics is integral to building credibility and illustrating the value that HR can add. Not surprisingly, HR metrics have evolved in parallel to the 3 generations of the HR function.

Obstacles?

Research has shown that senior executives value HR initiatives, such as facilitation of organisational change and improving engagement, highly however, they are less than satisfied with the progress made against these. One of the possible reasons for less effective progress and implementation of HR practices is the lack of clarity around ownership and accountability. Distinct lines have been drawn between HR practitioners and Line Managers on specific people related processes. Numerous other factors are also cited as contributors to the lack of traction that 3G HR is achieving across organisations. The first step is achieving credibility with business leaders which requires tying HR strategies to real business results and prioritising actions accordingly. HR's ability to overtly and directly assist business to deliver on their objectives will get them that "seat at the table".