HEADSTRATEGIC HUMAN RESOURCE CHANGE: WHY RAM CHARAN'S PROPOSAL TO SPLIT HR INTO TWO STANDS WAS NOT A SUCCESs

A decade after proposing the radical idea of splitting HR into two strands - HR Administration (HR-A) and HR Leadership & Organisation (HR-LO), Corporate Guru Ram Charan's plan remains yet to be fully embraced by the corporate world. Despite its initial support, many believe that his proposal was misguided due to concerns from within the HR fraternity, as well as structural obstacles.
Professor Kamal K Jain of IIM Raipur observes that most companies today are hesitant to restructure their human resources department owing to uncertainty surrounding the benefits. The costs and efforts involved in splitting HR into distinct administrative and strategic functions may also be major deterrents, he notes.
Josh Bersin, a prominent industry analyst, believes Ram Charan's proposal "back to the old idea that HR is cost centre." Furthermore, splitting might lead against delivering integrated solutions like internal mobility and retention. He also fears the "HR Admin" CHRO would push against the "HR Strategic" CHRO.
Raghunath Kale , Head - Human Resource Shared Services added modern Hr can increasingly leverage technology, analytics, and a focus on employee experience to drive strategic objectives. Unlike Ram charan's approach, he emphasizes integration rather than fragmentation.
Many experts agree that even though a change may or might not adopt it, the necessity of addressing the concerns underlying Ram Charan's proposal remains relevant today. Many business heads still point out the reality that most HR people are often caught up in internal processes and rarely demonstrate a keen interest in their organization's growth and strategy.
To effectively address these issues and bring about changes for employees’ performance and overall organizational objectives, splitting HR might not be necessary. Instead of this approach, developing CHROs with business acumen and operational exposure will be the more practical pathway to success.
These days, there are numerous leaders of large organizations taking on their CHRO who indeed perform roles as advisors, and strategic partners for CEO. These leaders suggest that the way forward should emphasize HR integration rather than its fragmentation.