Rio Tinto | Minerals and Metals for the world

People
Peter Brigg talks to Karen McLeod about how a global corporation brings a highly disciplined and professional approach to the people side of its business.

To most people, "Human Resources" might seem to be little more than a fashionable rebranding of the old Personnel department – in other words, old wine in new bottles. However, for Karen McLeod, head of Human Resources in Rio Tinto, there's rather more to it than that.

"If you trace the way the people dimension has been managed in business, you can see how Personnel has evolved into Human Resources," she says. "Historically, personnel departments focused on employee welfare and industrial relations.

"Today, our focus is much more on organizational effectiveness and on meeting the business needs of the Group. While the distinction might sound semantic the professional response is quite different.

"That's not to say, of course, that employee welfare and effective relations with the unions are no longer important," McLeod adds. "They'll always be a vital part of the HR portfolio. But they are not ends in themselves.

"In modern business, HR is more about helping to create an alignment of values between the Group and its employees and about safeguarding its future by ensuring that a steady flow of high potential people – tomorrow's leaders – is in the pipeline.



People Peter Brigg talks to Karen McLeod about how a global corporation brings a highly disciplined and professional approach to the people side of its business. To most people, "Human Resources" might seem to be little more than a fashionable rebranding of the old Personnel department – in other words, old wine in new bottles. However, for Karen McLeod, head of Human Resources in Rio Tinto, there's rather more to it than that. "If you trace the way the people dimension has been managed in business, you can see how Personnel has evolved into Human Resources," she says. "Historically, personnel departments focused on employee welfare and industrial relations. "Today, our focus is much more on organizational effectiveness and on meeting the business needs of the Group. While the distinction might sound semantic the professional response is quite different. "That's not to say, of course, that employee welfare and effective relations with the unions are no longer important," McLeod adds. "They'll always be a vital part of the HR portfolio. But they are not ends in themselves. "In modern business, HR is more about helping to create an alignment of values between the Group and its employees and about safeguarding its future by ensuring that a steady flow of high potential people – tomorrow's leaders – is in the pipeline.
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Review is published by Rio Tinto, 6 St James' Square, London SW1Y 4LD, England Telephone +44 (0)20 7930 2399 Editor: Cherry DeGeer