The document discusses the strategic role of HR and how it must link to business strategy, especially for small and medium enterprises (SMEs). It emphasizes that the HR strategy should evolve from the organizational strategy. It also highlights some effective HR practices for driving growth, such as centralizing policies, competency-focused restructuring, and aligning HR practices with strategic business objectives. Finally, it discusses the emerging role of HR and skills needed for HR to become a strategic business partner, including business knowledge, communication skills, and leadership skills.

1. Strategic Role of HR Linking Human Resource to Business Strategy Estimated Time- 20 minutes HR Summit on Building an Effective HR Strategy Presentation by Mr. Sourav Daspatnaik Director HRD & Strategy Apeejay Surrendra Group

2. Reflecting on the Organizations Small is Beautiful ! What holds good for Large Organization, may not be relevant to Small or Medium organizations

3. India’s Growth Story Real GDP Growth happening for Entrepreneurial zeal and SME sector providing growth through industries like Manufacturing Infrastructure Services Every Organization Small or Big wants to grow and while growing, there are inherent organizational challenges like Scalability Organization Building & Effectiveness Effective Strategy of SMEs

5. Critical Components for Effective HR Strategy Organizational Background Organization’s Ability to Scale Up Entrepreneurial Ability Because HR Strategy evolves from Organizational Strategy In SMEs , the Organizational Strategy is driven by Owner and not the Board as in the large companies The critical issue > Owner/ Entrepreneur has huge stake and ability to steer a professional environment

6. Driving Growth through Effective HR Practices

7. Effective HR Practices through Transformation Traditional HR professionals focused on recruiting, training, pay, and industrial relations. Strategic, consultative HR professionals focus on strategy and organizational culture , including ways to contribute to an entire organization’s productivity and effectiveness . HR Transformational Models for driving Growth Centralizing for Consistent Performance Improvement Increase consistency in HR policy implementation across the organization to facilitate necessary performance improvements Competency-Focused Restructuring at the Division Level Improve the corporate-level personnel function’s ability to respond to agency and government challenges in a strategic way Aligning HR Practices with Strategic Business Objectives Align HR strategy with corporate strategy and reinforce corporate strategy across the company for improved performance

8. Continued In order to facilitate strategic partnership between the HR Department and the growing Business Units, the HR Department needs a dual structure divided between Operations and Management HR Operations HR Management Employees Business HR Management deals with strategic & tactical issues: HR staff attends business unit meetings to play important roles like: Develop Leadership teams, Succession Planning, Talent Management, produce HR metrics and develop strategy for that particular line of business HR Operations should coordinate transactional functions This could be outsourced

9. Role of HR In Building Productive & Engaging Workforce

10. Engaged Not Engaged Actively Disengaged Physically Present but Psychologically Disruptive, Unhappy and Insist on Sharing Their Unhappiness with Others Building Productive & Engaging Workforce

12. The Big Question to Ponder….. While HR Professionals strive to engage its’ Executives, how do they Engage all it’s Stakeholders

13. Upskilling HR for Moving Beyond Transactional Role

14. As the job picture for HR develops, new roles are emerging as essential to strategic partnership. These include positions in the leadership, generalist, specialist, and transactional functions.In addition, research notes the option of creating a ‘dual career path’ for HR that divides transactional and strategic Key Factors Influencing Required HR Skills Demographics — The aging workforce, in combination with a shortage of qualified talent, requires HR to focus heavily on strategic recruiting and hiring Technology — The workforce is becoming less traditional and more distributed, both nationally and globally. Connecting HR’s strategy to the goals of the company is increasingly difficult in this environment Economics — HR faces organizational pressure to become a profit center,which will lead to organizational change through mergers, acquisitions, and strategic alliances. Globalization — A global business environment will require sophisticated managerial skills to face new labor markets Outsourcing — To relieve HR from administrative work, companies are turning to outsourcing Strategic partnership with the line — Line managers now seek out more strategic involvement with HR, e.g. , asking HR for advice on how to create‘stretch roles’ for an employee as they take on more responsibility for HR issues, such as employee development HR Deliverables as a Business Partner

15. Skill Gaps of HR as Strategic Business Partner Financial comprehension — Ability to demonstrate HR’s value in money Analytical skills — Ability to analyze strategic position of HR within the business Technology — Functional understanding of HRIS technology Understanding of Market strategy Managing Change — Ability to manage change during mergers and acquisitions Risk-taking ability — Possessing the understanding of key business situations to determine appropriate risks Understanding of Market Issues — Ability to define the executive skills and aptitudes compatible with new markets and associated problems International Skills — Ability to assess the costs and benefits of recruiting executives on a global basis; international executive development Management of Environment & External Stake holders- Public at large, Public policy, CSR, Engaging with catchment population

16. Emerging Role of HR New Skills or Enhancement of Existing Skills for HR as Strategic Partner Business Knowledge — Capacity to understand competitive issues impacting the business market and to understand how business can create profit and value Credibility and Integrity — Act with integrity in all business interactions and honor personal commitments – Anchor Role! Effective Communication — Ability to provide both verbal and written information clearly, succinctly, and persuasively, ability to influence others- key communicator! Negotiation and Conflict Resolution Skills — Capacity to reach agreements and consensus despite differing goals and priorities Systemic Perspective — Ability to view problems and issues in the context of the bigger picture and understand relationships among sub-components Research Skills — Diagnostic and analytical skills; ability to use the research method effectively, including data collection Leadership Skills — Project management, resource management, strategic planning skills and more importantly

18. Questions & Answers

19. Thank You