Transforming the HR Function

In recent years, various companies have transformed the human resource function, using a combination of new technologies, new models of service delivery, and new perspectives on HR's organizational role.
Recent articles in the HR media contain examples of organizations that have restructured HR. One is American Family Insurance, which implemented an e-HR program dubbed "HR 2002." The system includes "People Place," an HR portal; "Ask HR," a customer call center; and an online new-employee orientation program. The HR portal, for example, was customized to individuals through personal identification numbers and access levels. Initial plans called for open enrollment to be the first self-service module rolled out, but HR felt it lacked the "wow factor" they wanted. Instead, the salary administration process was brought online, streamlining a paper-burdened, six-week process to just minutes. The firm continued rolling out new Web-based tools every quarter, including direct deposit, W-4s, transfers, promotions, merits, schedule changes, and others.
In addition, an Online New Employee Orientation was introduced, providing new hires with a video welcome and information on American Family's history, culture, policies and benefits in a self-paced program that replaced time-consuming classroom sessions. The overall program was put together with the help of cross-functional teams, which laid the groundwork. Strict adherence to delivery dates and goals were part of the "ruthless execution" philosophy, according to Workspan magazine. An employee survey found that 75% feel the changes have been very positive.
General Motors Corporation has also implemented a strategy over the past couple of years to reshape its HR function. It began when GM's CEO Rick Wagoner gave chief HR officer Kathleen Barclay the task of building a global network of HR professionals for GM. Barclay focused on what she refers to as the 3T's – technology, talent and transformation. The technology prong of the strategy focused on providing a corporate intranet that is both effective and accessible, then transforming it into an HR portal. In HR Magazine, Barclay is quoted as saying, "The portal is helping us to achieve our goals of developing a Web-savvy workforce, of improving our ability to communicate and collaborate with one another."
One feature of the transformation was moving most training from lecture-based, traditional classroom formats to online courses. In April 2001, GM introduced "HR Skills for Success," a completely online training program that is required for HR professionals. Transformation quickly followed. Helen Elliott, manager for HR development for Europe, finds it helpful to have standard training programs in each country so that everyone is on the same page. Communication between GM's Detroit headquarters and facilities around the world have also opened up.
Of course, all firms are unique and must restructure HR to meet their specific needs, according to Jay Jamrog, Executive Director of the Human Resource Institute. He says that there are three things that companies embarking on such a transformation should keep in mind. First, use consultants wisely. Don't let them take over the whole transformation process. Instead, ask them for their ideas and use the ones that best suit your organization. Second, don't start by looking outside the organization for best practices. Look inside first. Truly understand why you want to transform HR. Once you've identified what you want to do, then look for best practices. Third, make sure to involve line managers in the restructuring process "because they're usually the people you're ultimately serving," says Jamrog.
Indeed, any ambitious restructuring plan should consider all the potential HR customers. As the examples of GM and American Family Insurance show, HR restructurings may change not only the HR department but the entire organization. They demonstrate just how integral HR is to ensuring that organizations can effectively respond to an increasingly global and integrated marketplace.

For more on the HR changes at American Family Insurance, see Danielle McDonald's "Radical Change: Breaking Ground for e-HR Implementation" in Workspan, February 2002, pp. 39-43. For more information on this periodical, see
http://www.worldatwork.org/Content/Infocentral/info-periodicals-frame.html
For more on the HR changes at General Motors, see Bill Leonard's "GM Drives HR to the Next Level" in HR Magazine, March 2002, pp. 47-50. For more information on this periodical, see
http://www.shrm.org/hrmagazine/