HR 2024 and Beyond

Challenges of the New HR Paradigm

for HR Leaders in Indonesia

The purpose, scope, and function of HR is fundamentally

changing, bringing about new paradigms for managing people,
organisations and the ecosystem of work.

HRM ASIA | CHRO INDONESIA 1

Dr. Bob Aubrey | Founder & Chair of AHDO Advisory Board
Founder and Chair of the Advisory Board, ASEAN
Human Development Organisation
Chairman, European Chamber of Commerce
Singapore Human Development Committee
Human development consultant with 25 years
experience across 6 continents. Lived in USA,
Europe, China
Author of 14 books including 2 recent books on
ASEAN and careers for human development
professionals

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Paradigm Shift
A paradigm shift is a
fundamental change in the
basic concepts and practices
of science or a professional
field.

It started as a concept in the

philosophy of science
introduced in 1962 by the
American physicist and
philosopher Thomas Kuhn.

HRM ASIA | CHRO INDONESIA 3

 • HD economics
• Personal • Sustainability
computer, internet • Technology
• Future of work
• WW2 & Cold • Globalisation • Covid pandemic
War • Multinationals
• Training and
Human Development
Organisational
(HD)
Development
American Human •Sustainable workforce
expansion Resources (HR) •Diversity, Equity,
Inclusion
•Performance
•Managing stakeholders
•Cost cutting
Personnel •Ethics and decent work
•Delocalisation
S •Labour law •Human development for
•War for Talent
C •Productivity contingent and self-
Labour / •HR business employed workers
O Manpower •International partner
Social welfare standards •Corporate social
P •Management •Human capital responsibility
E •Fair wages •Leadership
•Skills •Learning and
•Worker •Civil rights development
•Scientific
welfare
•Unions
production We are here

20th century 21st century

For AHDO, work is a human development experience for individuals with

a Net Human Positive impact for workers

HRM ASIA | CHRO

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The old paradigm

There is one and only one social

responsibility of business – to
use its resources and engage in
activities designed to increase
its profits, so long as it stays
within the rules of the game,
which is to say, engages in open
Milton Friedman
and free competition without University of Chicago
deception or fraud. Nobel Prize 1976

HRM ASIA | CHRO INDONESIA 5

 How it became the dominant HR
paradigm in the 1990s

In this 1996 classic book by Dave Ulrich, HR Champions, these statements

were meant to define the “new” HR (page 18)
• The purpose of HR is the help companies win in the marketplace
• The HR function does not own compliance – managers do.
• HR professionals must translate their work into financial performance.
• HR professionals must create practices that make employees more
competitive, not more comfortable.
• HR practices do not exist to make employees happy but to help them
become committed.

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Consequence for American Workers
wage stagnation, growing inequality

Americans are
working more
productively than
ever, but wages
stagnated until post-
Covid rebalancing.

CEO compensation
has grew 940% since disconnect
1978 while worker
compensation has
risen only 12%.

Source: Economic Policy Institute 6 November 2020

https://www.statista.com/chart/23410/inequality-in-productivity-and-compensation/

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The New Paradigm started in 1990s at the UN

Amartya Sen Mahbub ul Haq

Nobel Prize in Economics 1998 Created the UN Human Development Index

• Development is a “process of expanding the real freedoms that people

enjoy”

• The expansion of freedom is ‘the primary end and the principal means of
development’

• Work sums up the aspirations of people in their working lives and includes
personal development and social integration, freedom to express oneself,
participate in the decisions that affect life as well as work and ensures equal
opportunity -- International Labour Organisation
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Framework

AHDO’s mission impacts Goals #1, #2, #3, #4, #5, #8, #9, #10, #16 & #17

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AHDO concept of the Sustainable
Workforce
The sustainable workforce is defined by
AHDO as a diverse and inclusive Workers ensure
workforce that continues to develop sustainable
social stakeholders as well achieving the development of the
Organisation
economic goals of business.

Simply put, a sustainable workforce is a

circular relationship where human
development drives business sustainability
and business, in turn, invests in the The Organisation
sustainable human development of its ensures sustainable
stakeholders. development workers
(including stakeholders

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 Paradigm Shift: HR/HC -> HD
Fong Tuan
HR HC HD
• People are a Purpose
People contribute to People increase as well as contributing
Purpose
business goals economic value to organisational goals

• Development Strategy
• United Nations/ ASEAN
Frame of Labour Contribution
• Human Development
Reference Cost to Profit
Science

• Development
Cost, Productivity, Share Price,
Priorities • Wellbeing
Compliance Assets
• Sustainability
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The ASEAN Opportunity
The ASEAN Socio Cultural Community is "committed to lift the quality of
life of its peoples through cooperative activities that are people-oriented,
people-centred and socially responsible.

ASEAN professionals have a “greenfield opportunity” without the

institutional barriers of change as in the USA and Europe.

https://asean.org/our-communities/asean-socio-cultural-community/

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How can Indonesian CHROs become
Leaders in the New Paradigm?

© ASEAN Human Development Organisation 2021

1. Professional
transformation

https://www.aseanhdo.com/courses-2

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2. Organisational
Transformation

Advancement in Human Enterprise and Development (AHEAD) is designed

for organisations committed to human development in business,
government, social enterprise, or higher education. Get AHEAD in human
development today.

https://www.aseanhdo.com/accreditations
3. Compete as a leading First Corporate Human
Development Award
with HRM Asia 2023

Best ASEAN Human

Development Award is given for
fair and inclusive development
of workers and stakeholders in at
least two ASEAN countries.
recognizes the company’s
leadership in defining a human
purpose, organising functions to
deliver human development,
provides programmes for human
development, and measures
human development outcomes.

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What a Human Development Organisation Looks Like
1. Purpose, Goals,
Strategy

8. Measurement, Impact, 2. HD functions, Stakeholders Social

Sustainability Contribution

7. Investment, Resources, 3. Capability, Innovation,

Technology Performance

4. Learning and Development of

6. Freedom, Voice, Participation employees, contingent workers,
leaders

5. Rights, Diversity, Inclusion

3 types of strong human
development organisations
3 types of HD excellence
HD Purpose and
Strategy
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Regional engagement in 4 HD Organisation & 1. Undefined
HD Productivity
3 2. Defined
2
3. Developing
1
Measurement and Compared ASEAN 4. Capable
0
impact characteristics 5.World-class Leader
Company A
Company B
Employee development
Leadership development Company C
& experience

Rights and ethics

Company A: excellent at developing people in the workplace

Company B: excellent in ASEAN purpose, stakeholders and leadership
Company C: excellent in global ethics, strategy and measurement

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