THE ROLE OF HUMAN RESOURCES IN THE PROCESS OF PRIVATISATION

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THE ROLE OF HUMAN RESOURCES IN THE PROCESS OF
PRIVATISATION
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INTRODUCTION

• This presentation will look at the changing role
  of human resources during the process of
  privatisation. This process involves change of
  ownership form the state owned to allow private
  sector participation in the industry concerned.
  As people are the key to the success of any
  organisation. Human Resources Department has a
  pivotal role to play in ensuring the success of
  the prvatisation process.

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WHY DO GOVERNMENTS PRIVATISE

• It is very important for Human Resources to
  understand the reasons for change.
• To attract foreign direct investment
• To raise public enterprise efficiency
• To improve services to the public in conjunction
  with competition.

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WHY DO GOVERNMENTS PRIVATISE CONT

• To re-deploy resources more efficiently
• To allow governments to focus on core activities
• To encourage an enterprise culture
• To strengthen the local private sector
• To raise credibility for investment

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WHY DO GOVERNMENTS PRIVATISE CONT

• To raise revenue for government
• To obtain assistance in technology and knowledge
  on the sector

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WAYS TO PRIVATISE

• Strategic partnership
• Strategic sale-by negotiation or tender
• Public offering stock exchange
• Employee share ownership
• Management buyout-consortium organized and led by
  present management
• Farming out services ( non core)

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BENEFITS TO PRIVATISATION

• Reduction of accumulated debts
• New management ideas and technology transfer into
  the sector
• Efficient utilisation of resources
• Improved services provision
• Improved profits

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DISADVANTAGES OF PRIVASATION

• Adverse impact on Employment
• Removal of state role of being an employer
• Marginalisation of certain levels of the society

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CONDITIONS FOR EFFECTIVE PRIVATISATION

• Liberalized economy
• Presence of a regulator (to set rules for
  operating) commitment from all stakeholders

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IMPLICATIONS FOR THE ORGANISATION

• Privatisation involves change ( organizations do
  not change but people do change ) change is
  required in the following-
• Culture
• Values
• Structures ( lean structure and right sizing)
• Conditions of services to match the market

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THE ROLE OF HUMAN RESOURCES (THE IMPORTANCE OF
PEOPLE)

• Human resources has to understand the strategic
  goals of the organization and the need for change
• People ultimately determine the success of change
  
• People are the basis for competitive advantage

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THE ROLE OF HUMAN RESOURCES (THE IMPORTANCE OF
PEOPLE CONT.

• Technologies are converging (culture and values
  can not be easily copied)
• As the environment changes people have to change
  to embrace the changes.

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THE NEW ROLE HUMAN RESOURCES

• Communication getting employees to accept
  change
• Create suitable environment ( change culture)
• Training for change
• Counseling and advising

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THE NEW ROLE HUMAN RESOURCES CONT.

• 5. Managing the change
• 6. Career Development and Management
• 7. Managing performance
• 8. Outplacement and re-deployment.

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COMMUNICATE

• Human Resources will need clear goals on what
  change involves
• Communicate the benefits for change to the
  individual and the organization
• Induce change in employee mentality
• Obtain acceptance to change
• Keep people informed at all stages

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CREATE SUITABLE ENVIRONMENT CHANGE OF CULTURE

• To support strategic changes
• To keep the firms strategy on course
• To change values, beliefs and assumptions about
  the organization
• To support change from the old way of doing
  things

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THE LEARNING ORGANISATION

• Change is continuous
• Requires learning new ideas
• Un learning old habits
• Relearning of new ideas
• Encourage team learning and teamwork
• Encourage sharing of knowledge
• Evaluate results of change through performance
  management

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TRAINING FOR CHANGE

• Where are we going and how do we get there?
• Decide what skills are required in the new
  organization (multi-skilling)
• Employees are adaptable resources
• Decide on new processes and involve individuals
  learning new ways of doing things

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TRAINING FOR CHANGE CONT

• Link the success of the individual to the success
  of the organization
• Implement career oriented development

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COUSELLING AND ADVISING

• Clarify expectations ( rightsizing)
• Define supporting behaviors
• Give feedback
• Reward positive behaviors
• Provide compensation packages (market related)

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MANAGING THE CHANGE PROCESS

• Identify consequences anticipated from the change
  
• Identify losses and sympathize with losers
• Compensate for losses
• Look out for anxiety, old weakness and
  absenteeism

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MANAGING THE CHANGE PROCESS CONT

• Look out for unreliable systems
• Make small changes at a time
• Plan for and find way to overcome resistance

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CAREER MANAGEMENT IN A CHANGING ENVORNMENT

• Career planning and development
• Counseling
• Pathing
• Career information systems
• Human Resources Planning
• The skills and numbers required

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MANAGING PERFORMANCE

• Keep performance results the primary objective of
  behavior and skill change
• Continually increase the number of individuals
  managing their own change
• Ensure each person knows why his performance
  matter to the end results

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MANAGING PERFORMANCE CONT.

• Compress the experience cure by managing
  knowledge
• Knowledge sharing through the untrained
• Encourage people to cut across functional
  barriers.

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OUTPLACEMENT

• People must leave the organization with good
  feelings for the image of the organization
• Develop new business skills
• Start new businesses ( for those who do not fit
  in)
• Prepare people for the future and out of the
  organization.