Evolution of Industry post liberalization

Report
HRM
Past >Present >Future >>>
Presentation by Dayanand Allapur
Head of Human Resources, Tesco HSC
Paradigm Shifts in 3 decades post liberalisation
Booming
of
telecom
and start
up of IT
Brain
drain out
of the
country
Transform
ation of
IR into
Personnel
and HR
mostly
transactional
2000’s
Growth of
FDI in IT
and ITES
MNC’s and
pure play
Indian
companies
Migration
of
knowledge
talent
across
country
Transform
ation of
HR into a
strategic
function
Business
Partnering
role
2010’s
Growth of
ITES up
the value
chain and
Growth of
retail
Global
orgs,
MNC’s
and
strong
Indian
players
Rural
Indian
emerging
as key
markets
in retail
Change in
demographi
cs , socio
economic
trends
redefining
HR
1990’s
Growth of
mfg and
services
Internal
Consulting/
Customer
facing
2
Evolution of Industry post liberalization
1990’s
2000’s
● Liberalization - A historic
decade in India
● Exponential Growth of
IT/ITES & Telecom
● IT/ITES to move up to
knowledge value chain
● Liberalized economic
policies
● Indian outsourcing
valued at $60BN
● Retail industry to
contribute 10% of the GDP
● Contribution of
Manufacturing & Service
sector to GDP increased
rapidly
● Direct employment
2.3mn. Indirect to 6.5 million
● 'Organized Retail
estimated to reach US $50
billion by 2011 and to be
worth US $ 175-200BN by
2016 with 25% pa growth
● Overwhelming migrants
out of India
● Telecom contributed to
1% of the GDP
● Foray of 'Organized
Retail Sector'
2010’s
● Retail inching towards
next boom in India
3
Retail Industry in India
Retail Industry Opportunities
• 35% y-o-y growth in the last few years
• Raising consumption expenditure and
disposable income
• Top 20 cities generated 60% of surplus
income and 31% disposable income
• Efficient supply chains
• Ability to penetrate rural market
• Expected to grow at a CAGR* 23% to 25%
between 2008 to 2022
• Increasing size from Rs.96,500 crore (US $19
billion) in 2008 to Rs.17,36,000 (US
$347to350 billion) in 2022
HR Challenges
• Skills unique to different segments and
formats in organised Retail
• Demand side issues in Human Resource
(Communication and other softskill, Lack of
product/process knowledge, Poaching across
industries, etc.,)
• Supply side issues in Human Resource
(Limited training opportunities, Demand of
manpower in big cities being met with people
from smaller cities, finding higher skill level
candidates in smaller cities, etc.,)
• Human Resource requirement (in 000’s):
• PG – 867
• Graduate – 5202
• Diploma/Vocational – 1734
• 12th standard – 6937
• 10th standard – 2601
CAGR: Compound Annual Growth Rate
4
Skill pyramid for organized retail-emerging industry…
4% to 5 %
30% to 33%
10% to 15 %
50% to 53 %
4% to 5 %
Skill level 4
(skills which
are highly
specialized
involving
research and
design)
30% to 33 %Skill level 3 (skills which
require long drawn preparation as
demonstrated by acquisition of
degrees, and involve highly technical
or functional skills)
The skill pyramid, in summary, captures
where the Organized Retail Industry
stands relatively in terms of skills
(a function of activity, educational
requirements, and amount of
‘preparatory’ time required to inculcate a
specific skill)
as compared to all other industries.
10% to 15 % Skill level2 (Skills which require
technical training inputs, knowledge of complex
operations and machinery, skills of supervision)
50% to 53% Skill level1 (skills which can be acquired with a
short/modular and focussed intervention and thereby enhancing
employability of those with a minimal education)
5
HR Challenges
Profession
Influence
Art VS Science
Board Room Vs
Department
HR
Challenges
Skill
Transactional Vs
Transformational
Perception
Enforcer Vs
Advocate
6
Evolution of HR in India post liberalization…
2000’s
2010
Transformation IR >
Personnel> HR
Strategic HR and Business
Partnering
HR as Internal Consultants
Policies,
labour relations,
Welfare, compensation,
benefits
Business partnering
through performance
management,
training and development,
talent management,
quick development of
broad based selection
Transactional roles being
outsourced,
Transformational roles on
building talent,
capability, culture,
consulting
1990’s
7
Four Roles and Sixteen Accountabilities – Ulrich’s model
Future/strategic focus
Strategic Partner
Change Agent
Strategic HR Planning
Talent Management
HR as Business Partner
Organizational Design
Culture and Image
Survey Action Planning
Performance Mgmnt
Training & Development
Processes
People
Employee Relations
Administrative
Expert
Comp & Benefits
HR Info Systems
Compliance
Labor Relations
Safety & Workers’
Compensation
Diversity and EEO
Day-to-day operational focus
The Future of HR Profession….
 Some questions for us to ask ourselves….
 What is the most compelling work in HR Today?
 What skills/experience are necessary for the successful HR
Professional today?
 How will the way HR work done today change in the next decade?
 How will outsourcing play a part in the future?
 Will the HR function survive in the next decade?
9
The Future of HR Profession….
 Some questions for us to ask ourselves….
 What is the most compelling work in HR Today?
 What skills/experience are necessary for the successful HR
Professional today?
 How will the way HR work done today change in the next decade?
 Will the HR function survive in the next decade?
10
The Future of HR Profession….
 What is the most compelling work in HR Today?
 Globalization
 Flawless execution
 Partnering with executive leadership
 Managing HR technology
 Measurement / bottom-line impact
11
The Future of HR Profession….
 What skills/experience are necessary for the
successful HR Professional today?
1. Business skills-knowing how business works
2. Leadership skills-ability to create a vision & strategy
3. Consulting skills - focus on ability to market their work
4. Technology skills-proficiency in broad HR applications
5. Global mindset-understand dynamics of global market place
6. Change management
12
The Future of HR Profession….
 Will the HR function survive in the next decade?
1. Its not about HR survival-but in what form & shape!
2. HR Function may get outsourced!
3. HR will have to learn “what” & “how” to Outsource!
4. HR must define standards / License for the profession
13
The Future of HR Profession….
 How will the way HR work done today change in
the next decade?
1. Dramatic shift in use of technology
2. Self service- web based technologies
3. Ever more sophisticated Call centers
4. Outsourcing- new meaning to HR internal & external
5. Cloud computing!
6. Globalization- work gets done with follow the sun model..
14
HR The peoples business!
If businesses managed their
money as carelessly as they
managed their people, most
would be bankrupt!
- Ram Charan & Bill Conaty- “Talent Masters”

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