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Human Capital Management in India

By Manoj K. Sharma, Head HR – Solar Manufacturing & Renewable Energy, Adani Green Energy

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Manoj K. Sharma, Head HR – Solar Manufacturing & Renewable Energy, Adani Green Energy

Ever since the industrial era started in 20th century, the necessity of skills and hiring of required supportive skills started forming the human capital management. India witnessed the organized form of recognizing the need of personnel function somewhere in 1920s with a deep concern for labour welfare inmanufacturing facilities.

By the end of 90’s globalization and the era of Information and technology have posed multiple challenges & complexities for the businesses to operate in globally competitive market. Human capital has gained not only competence with the globalization but also opportune to leverage potential to perform to next level with the rapid expansion of off shore businesses in India. This need of the business opened new market of professionalised consulting in Human Capital Management to focus the area of Talent Management, Organizational Development, Employee engagement, Organizational Effectiveness Learning & development for such professional who were coming from unionised & legislative environment.

During this time, regulatory authorities on the one hand shed control over areas like telecom, cement, petroleum etc. and provided an opportunity for the private sector to take the reins in their control to bring in more effectiveness, efficiency and professionalism. Eventually businesses which have passed through Volatility Uncertainty, Complexity and Ambiguous situation either due to economic downturn or on the face of deregulation recognised the importance of people especially from those companies which could come up during this time. Businesses felt the need for strategic orientation as a core competency in the leadership team that can a differentiator to leverage people potential.

Broad Themes that are Prevalent across Businesses to Leverage to Move to Next Level

1. Organizations re-design to take on the business challenges of next level. Cost pressures in order to sustain in the market are forcing the organizations to re-visit their organizational designs. Only then internal structure can be formulated with zero bases.

2. Focus on key and critical positions for their development and career augmentation.

3. Creating leadership pipeline starting from entry level to leadership role. Giving meaningful role to the identified potential engineer and management trainee right from the beginning.

4. Performance Management and creating role based organization than struggling with designation fit organization.Roles are more scientific than designations based organization.

5. Technology enabled digital HR environment is going to be a differentiator and competitive advantage to raise the productivity of employees and for HR to stay focussed in transformational objectives of the business than merely remain engaged in transactional work environment.

6. As you grow, and people in the organization start giving different versions for same systems and processes in many forms in the organization, it is high time to get your teams in sync for many vital to trivial areas that impacts either the people behaviour or the organization at large.

7. There is a need for the last man in hierarchy to know the objectives of the organization and where he is impacting in the entire supply chain.

8. Communication is the life line of the organization. This is the power by which employee remains energized and synchronised towards the yearly goals and changing objectives & its timelines during the year.

9. Corporate governance and grievance redressal system. Having knowledge of corporate governance and imbibing in true spirits are two different connotations.

10. More often it is seen that the least development of any person in the organization that has happened is of HR. The custodians or the process owners that manages the Human Capital and last rung of the management review or development or growth plans. It is very sure, if these process owners are creating future ready organization and working on the above core issues needs high attention for their development.

When organizations are simplifying their systems and processes to the changing need of the organization and digitizing the transactional aspects of Human Capital Management, it is high time for HR professional to catch-up with the specialised areas of HCM that impacts the top line or bottom line of the business. There is quick need for such organization to hire HR people in Talent Acquisition with certification of psychometric tools and certified TA, L&D also with psychometric certification besides qualified or certified in psychological/ behavioural interventions and as a certified trainer to be impactful and efficient in meeting organizational objectives.

Temp staffing companies have gained ground in taking the burden of companies, where such pocket of excellence is not available. It is for obvious reasons if they have to manage large manpower of industry it will be a need of the temp staffing company as well as the concerned business to join together to address the areas of Human Capital Management to leverage optimum potential of resources in the interest of business.

The biggest threat for HR professionals in the business is that Art part of Human Capital Management is already enjoyed by line managers. After digitization, each and every part of Science is getting tech-enabled leaving minimal scope for HR to support. Unless HR people learn the business and handle additional & direct line role in the business is a million dollar question of survival and nightmare for many to get job in HR in the times to come.

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