The Future of Human Resources: Unlocking Human Potential
The Future of Human Resources: Unlocking Human Potential
The Future of Human Resources: Unlocking Human Potential
Tim Baker
The Future of Human Resources: Unlocking Human Potential
10 9 8 7 6 5 4 3 2 1
To HR professionals wherever they may be, devoted
to their profession, and striving to create
employee-centered organizations.
Description
The tired cliché that employees are our greatest asset is false. It’s unlock-
ing the potential of employees that’s the greatest asset. COVID-19 has
accelerated an examination of HR and all that it does. Releasing people’s
potential at work is key to business success more than ever.
The Future of Human Resources confronts the conventional employ-
ment practices of selecting, inducting, developing, rewarding, and exiting
employees. This book is a comprehensive blueprint for HR professionals
to make the necessary changes to accommodate a new mentality.
Thirteen traditional practices are challenged, and fresh, practical path-
ways offered. The Future of Human Resources sheds light on what works,
what doesn’t work, and why. It shines a spotlight on an uncertain pathway
forward for the world of work.
By critiquing the employee’s organizational journey—from starting
to parting—the aim of the book is to cultivate the right environment for
people at work to prosper in the postpandemic world.
Dr. Tim Baker, according to leadership guru, Marshall Goldsmith,
is “one of today’s most influential HR experts.” He offers new insights
about what’s still considered conventional wisdom, such as employee
inductions, job descriptions, and succession planning.
The central idea of The Future of Human Resources is the imperative
for companies to adopt an employee-centered approach. Baker’s employee
lifecycle model tracks the familiar passage employees take in their
employment route, from job interview to exit interview.
Keywords
human resources; trends in human resources; HR; managing perfor-
mance; performance management; employee development; job design;
employee engagement; attraction and retention
Contents
Testimonials������������������������������������������������������������������������������������������xi
Acknowledgments���������������������������������������������������������������������������������xiii
Introduction����������������������������������������������������������������������������������������� xv
Action Plan����������������������������������������������������������������������������������������181
Notes�������������������������������������������������������������������������������������������������191
References�������������������������������������������������������������������������������������������199
About the Author��������������������������������������������������������������������������������205
Index�������������������������������������������������������������������������������������������������207
Testimonials
“Tim asks timely and pertinent questions and offers equally relevant sugges-
tions. While scientific control methods may have been reliable and relevant in
the last century, we live in a fast and mind-blowingly changing world. His
well-researched and thoughtful book encourages us to evolve or … become
irrelevant. This is a ‘must read’ for HR practitioners and senior executives.”
—Bill Lee-Emery, Keynote Speaker, Corporate facilitator and author
of How To Be Bulletproof From Criticism.
“As we navigate the impact of the Covid pandemic, there has never been
a more important nor opportune time to challenge and improve our ways
of managing work. Tim’s timely, thought-provoking book challenges some
of the long-held mindsets and perspectives and offers an alternative path for
the future of HR.”—David Concannon, Head of Insights & Strategy,
Employer Branding Australia
“Reading The Future of Human Resources will help you build, lead,
and inspire teams to flourish in the post-Covid world. Tim Baker provides
insights—based on the latest research, examples from real world business
success, and his decades in leadership and organizational development—to
help you transform the employee experience. It’s a practical, hands-on approach
that you can read now and apply tomorrow.”—Clio Robertson, Senior
L&D Specialist, Team Management Systems
Acknowledgments
Thanks to Dr. Mike Provitera for his guidance, reassurance, and encourage-
ment. I also acknowledge Scott Isenberg, managing executive editor of
Business Express Press for showing faith in the ideas in this book and
guiding me through the editorial process so professionally. The talented
Charlene Kronstedt for creating great cover design for this book, with a
minimum amount of fuss.
Introduction
Frederick Taylor conducted time and motion studies on the Ford Motor
Company assembly line 112 years ago. Taylor’s idea was to make every
step along the assembly line more efficient and effective. No more guess
work. The “one best way” became the mantra. And the Model T Ford was
the first successful product of scientific management.
Scientific management is based on a simple principle. Workers are
more productive when they are assigned narrow and clearly defined tasks.
Creativity and guess work are removed. Taylor believed that productivity
improved by eliminating unnecessary effort.
In 1908, the Model T Ford was priced at $825 and initially sold well
over 10,000 cars.
When Taylor—the first and perhaps the most influential manage-
ment consultant—came on the scene, he formed his management theo-
ries in his best-selling book, The Principles of Scientific Management.1 The
book, published in 1911 is still selling like hot cakes on Amazon with
a four-and-a-half star rating. Taylor’s ideas grabbed Henry Ford’s atten-
tion. Observing Ford’s workers, Taylor considered the most efficient and
time-saving methods for increasing the production of the Model T Ford.
After a few years, the application of his scientific management principles
reduced the average production time of a car to 93 minutes. The sales
price dropped to $575. And by 1914, Ford captured 48 percent of the
automobile market.2
Fast forward 100 years. Most industries still adopt scientific manage-
ment principles like those used on Ford’s assembly line. Although the
world of work has profoundly changed, we still use the same systems to
manage the production of goods and services. The application of scien-
tific management isn’t isolated to the manufacturing sector. They have
been applied across the board, including service industries. Telemarketers
are given a script to read. Franchise food outlets are based on a system
that entrepreneurs pay millions of dollars to purchase. Five-star hotels are
xvi Introduction
It’s the perfect time for reflection and renewal as we emerge from the
pandemic. Although there is evidence that the changes I am suggesting
are occurring in some companies, many businesses are taking tentative
steps in the right direction. I will share some successful innovations com-
panies around the world are making. This will hopefully provide you with
the confidence to continue the transformation journey.
PART 1 puts the case for change. We look at the changing world of
work and map out the necessary mindset shifts. These shifts are oppo-
site to the practices used for a century. These traditional practices have
served industry well. But it’s time to let go of them and embrace new
perspectives. To continue to add value, I argue that HR needs fresh think-
ing. There are 13 mindset shifts I urge you to consider. During PART 1,
I also introduce you to the employee lifecycle framework. This framework
provides the structure for implementing these changes.
PART 2 examines the starting phase of employment. Specifically,
I look at the recruitment and selection process, induction, working
remotely, and the changing expectations managers and employees have of
each other in the employment relationship.
PART 3 focuses on the developing phase of employment. In this phase,
we look at the obsolete job description. The job description isn’t an adequate
method for capturing all that the employee is expected to do in the modern
workplace. The increasingly important value of nonjob roles is discussed.
I also challenge the job design framework we refer to as job specification.
We consider a new model of multidimensional learning and development
(L&D), to replace the old functional training model. Although job crafting
is slow to take hold, it’s now time to embrace it to strengthen job specifi-
cation, the traditional job design mechanism. And finally in this phase, we
consider the role of Artificial Intelligence (AI) and smart machines in the
workplace. Instead of viewing machines as a competitor for jobs, we need
to view AI as a collaborator in super team structures.
PART 4 considers the rewarding phase of employment. Rewarding
people for their technical knowhow rather than their people skills must
change. Developing performance rather fixating on appraising perfor-
mance is a shift necessary in the new world of work. Using reward and
punishment doesn’t ignite human spirit and work. Intrinsic motivation is
the driver for success.
xx Introduction
Employee-Centered
Approach
CHAPTER 1
Let me remind you of some of the events in the past decade. From
royal weddings to missing planes, there were a plethora of history-defining
moments in the second decade of the 21st century. Prince William and
Prince Harry’s royal weddings, al-Qaeda and Islamic State of Iraq and
Syria (ISIS) terror leaders killed, missing Malaysian planes, legalization of
same-sex marriage, reality star Donald Trump becoming president, and
tech diversity, are just some of the momentous happenings we experienced
since 2010.
More specifically, Apple released the world’s first iPad, the game-
changing piece of technology on April 3, 2010. The South Korean pop
superstar Psy created Gangnam Style, which became the first video in
YouTube’s history to reach one billion views in 2012. The world said
goodbye on December 05, 2013 to Nelson Mandela, the former president
of South Africa and the country’s first black head of state. Described as being
one of the biggest aviation mysteries in history, MH370, the Malaysian
Airlines plane with 239 passengers and crew on board completely vanished
on March 08, 2014. The year 2014 was a disastrous one for Malaysian
Airlines. Just four months after MH370 went missing, MH17 was shot
down while flying over eastern Ukraine, killing all 283 passengers and
15 crew. There was the rise and fall of ISIS. Brutally graphic beheadings,
horrific attacks, and suicide bombings from the ISIS hit the western
world during its peak in 2015. While the jihadi group‑who controlled a
population of 8 million at its height‑may have been the most powerful
and wealthiest force. The ISIS caliphate dream collapsed mid-2017.
The world struck a deal on climate change, dubbed the Paris Agreement,
in 2016, dealing with greenhouse gas emissions mitigation, adaptation, and
finance. In a history-defining moment on June 26, 2015, the United States
legalized same-sex marriage across all 50 states. Ireland, Finland, Green-
land, Colombia, Malta, Australia, Germany, Austria, Taiwan, and Ecuador
all followed. Greece became the first developed country to default the Inter-
national Monetary Fund in 2015, which alongside the European Union,
provided the nation with €110 billion in loans over three years.
The Brexit Referendum took place. As 52 percent of Britain voted
to leave the European Union in 2016, the political debate is still rife.
Donald Trump became U.S. president. The television personality, real
estate developer, writer, entrepreneur, and investor added another
The Changing World of Work 5
Is HR Ready?
Surveys show that HR enhanced its reputation in the way it dealt with
the COVID crisis.3 HR is in a great position to capitalize on its new
status. But if we dig a little deeper, it’s the traditional domains of HR
that get high marks. Executives praise HR for its handling of health and
safety matters, its workforce communication strategies, and promoting
the well-being of employees. HR now needs to expand its influence in
other areas.
If we assume that disruption is now the constant (and this is a fair
assumption), HR must adjust. While keeping its good reputation in cus-
tomary areas, tackling some of the other issues affecting employee perfor-
mance is the next frontier. I will discuss these in the following chapter.
Before we consider these HR issues, let’s consider some of the broad
strategic issues for business.
6 The Future of Human Resources
• Profitability
• Quality
• Excellence
predicted. Values are enduring and more reliable indications in the face
of ambiguity.
For HR, setting a clear set of values that are both terminal and instru-
mental would be a good place to start. I’m hoping that the 13 mindset
shifts I introduce in Chapter 5 will give you a basis for formulating a new
set of values consistent with these transformations.
Ken Sneader and Bob Sternfels of McKinsey in their article, From
Surviving to Thriving: Reimagining the Post-COVID-19 Return,5 suggest
that to come back stronger, companies should reimagine their business
model as they return to full speed. They identify four areas to focus on:
recovering revenue, rebuilding operations, rethinking the organization,
and accelerating the adoption of digital solutions. For businesses to
rethink their operating model, HR must adapt too.
As a survival mechanism, employees exercised agility during 2020.
The challenge is to maintain this agility while the business recovers to
full profitability. Undoubtedly, there are lessons to be learned from the
pandemic. What were the success factors that facilitated this agility?
Agility
Agility can mean many things. It’s a word we tossed around before the
pandemic. In the context of speed in a crisis, it means putting into place
new operating models that focus on the end-user, the customer, supported
by rigorous processes. Being able to be responsive and pivot quickly is
critical to success in a post-COVID marketplace, as it was during the
peak of the pandemic. Operationally, it means accelerating end-to-end
value chain digitalization. Digitalization tools are available, and they can
significantly reduce the cost of flexibility. Low-cost and flexible operat-
ing systems are not only now possible, but they are also available. The
challenge for HR is how they can synchronize people with these tools to
provide speed and precision. The benefits are higher productivity, more
flexibility, enhanced quality, and more customer connectivity. I discuss
this further in Chapter 14.
Undoubtedly, the future of work involves more automation and use
of technology. The pandemic has hastened the pace. Working remotely,
employees across all functions of the business have learned how to com-
plete tasks, using digital communication and collaboration tools. With
increased technology, we’re seeing humans doing less manual and repeti-
tive tasks. And this means that employees are doing more analytical and
technical support work. As Sneader and Sternfels of McKinsey point out,
“This shift will call for substantial investment in workforce engagement
and training in new skills, much of it delivered using digital tools.” They’re
right and we should prepare for this if we haven’t already.
Matching talent with agile practices is challenging. Hierarchy and past
performance can be roadblocks. Simplifying and streamlining organiza-
tional structures, centered around project-based teams is required. Aptitude
and getting results are now more valuable than expertise and experience.
Developing leaders shouldn’t be confined to the hierarchical positioning of
people. Leaders can emerge from everywhere in the structure. Leadership
development programs should be more dynamic. A renewed emphasis on
talent development will help to attract and retain top talent.
Digital communication is now commonplace. During 2020, there
was a transformation in the way we interactive with one another. It wasn’t
just the way we communicated with work colleagues, but in some cases
The Changing World of Work 9
our loved ones, and with suppliers of specialist services, such as medical
care, and routine transactions. The pandemic has accelerated the migra-
tion to digital communication technologies. This will surely be a turning
point in history. We need to accept that remote working in some form,
probably in a hybrid format as I suggest in Chapter 8, is likely to be con-
tinued well after the pandemic has passed.
As we move back to full recovery, some fundamental communica-
tion changes will need to be addressed. Consumers now are connecting
with businesses in many more ways than previously. Businesses need to be
geared up for all the access channels customers elect to use with businesses.
In the next chapter, we look at some of the big HR issues and how
this shapes their services.