The Role of HR in restructuring

Managing the process and HR’s role

John Campbell
CIPD Vice President International
International HR research findings

• many models
• differing interventions
• adding value
• increasing professionalism
p

Keys to success in International HRM

• communication
• alignment with business strategy
• top management support
• capability of HR staff
• global mindset
• diversity management
Critical competencies for the
HR function

• positioning as global business strategic partner - 69%

• ensuring flexibility in all HR programmes and

processes - 52%

• marketing HR globally - 36%

• establishing link to bottom-line performance - 37%

Management strategy
Top management attempts
to implement values, policies
and sentiments of parent
5% Top management emphasises
company regardless of
environmental or cultural environmental/cultural
12% differences and makes
differences
deliberate choices to make
foreign operations as regional
as possible
16%

Top management
emphasises
environmental/cultural
differences and makes 67% Top management strives
deliberate choices to make to create an integrated
foreign operations as local organisation
as possible
Into Europe

opportunities
• trade
• aid

threats
• job migration?
• adaptation to regulatory structure?
Into Europe

opportunities
• low cost producer
• talented people

threats
• rising prices?
• pay escalation?
Into Europe

opportunities
• Euro?
• local pay levels?

threats
• Euro?
• local pay levels?
Into Europe

opportunities
• trade
• aid

threats
• job migration?
• adaptation to regulatory structure?
Into Europe

opportunities
• greater exposure to different HR models
• redefinition of Maltese HR model

threats
• import of different employment practices
• limitation on flexibility?
Restructuring

What happens now?

What changes are anticipated?

Restructuring – critical factors

understand the organisation objectives

identify the implications for people

align the people issues with business direction

get senior management support

Restructuring – critical factors

know where you are

and where you are going !

Restructuring – critical factors

What is the existing culture?

What is the vision of the new culture?

Restructuring – critical factors

Identify the people implications

• leaner more efficient structures

• changed ways of working – new systems

• skill gaps?

• attitude gaps?
Restructuring – critical factors

Identify the people implications

• what are the barriers to change?

• how long do you have?

• what resources are at your disposal?

Restructuring – critical factors

• who are the opinion formers?

• what is in it for me?

• how can you overcome resistance to change?

• how to you develop the new skills?

Restructuring – critical factors

There may be casualties – how will you manage

these?

Maintaining good staff relations

Restructuring – critical factors

• plan but be flexible

• look for early “wins”

• be patient yet persistent

• stay focussed
Restructuring – critical factors

Communicate – early and often!