Jack Welch- Winning
Elevate HR to a position of power and primacy in
the organization, and make sure HR people have
the special qualities to help managers build leaders
and careers. In fact, the best HR types are pastors
and parents in the same package.
The head of human resources at any company
should be at least as important as the CFO.
Today
HR Activities- what do HR people do?
HR Management Challenges- what external
and internal factors influence what HR people
do?
HR Roles- how do HR people do their jobs?
Nature of Human Resource
Management
Human Resource (HR) Management
The design of formal systems in an organization
to ensure effective and efficient use of human
talent to accomplish organizational goals.
Nature of Human Resource
Management cont
Who Is an HR
Manager?
In the course carrying
out their duties, every
operating manager is,
in essence, an HR
manager.
HR specialists design
processes and
systems that
operating managers
help implement.
Basic HR Concepts
The bottom line of managing:
Getting results
HR creates value by engaging in activities
that produce the employee behaviors that the
company needs to achieve
its strategic goals.
Objectives:
Maximize the return on investment
from the organization's human capital
and minimize financial risk.
To align the capabilities and
behaviors of employees with the
short-term and long-term goals of the
retail firm.
Why HRM Important to All Managers
So that you dont.........
i. Hire the wrong person for the job
ii. Experience high turnover
[Link] your people not doing their best
[Link] time with useless interviews
v. Have your employees thing Company is unfair and
unethical
[Link] lack of training
[Link] manage performance and reward in proper
way.
Distinguishing Between HRM
and PM
Guests Model of HRM
Linked to the strategic management of an
organisation.
Seeks commitment to organisational
goals
Focuses on the individual needs rather
than the collective workforce.
Enables organisations to devolve power
and become more flexible
Emphasises people as an asset to be
positively utilised by the organisation.
Storeys Definition of
HRM
'Human capability and commitment'. Storey argues
that this is what differentiates organisations.
Strategic importance of HRM. It needs to be
implemented into the organisational strategy and
needs to be considered at the highest
management level.
The long term importance of HRM. It needs to be
integrated into the management functions and is
seen to have importance consequences on the
ability of the organisation to achieve its goals.
The key functions of HRM which are seen to
encourage commitment rather than compliance.
Points of Difference between
Personnel and IR Practices
and HRM Practices
Dimension
Personnel/IR
HRM
Beliefs and assumptions
1. Contract
Careful delineation of written
contracts
Aim to go 'beyond contract'
2. Rules
Importance of devising clear
rules/mutuality
'Can-do' outlook; impatience
with 'rule'
3. Guide to management
action
Procedures
'Business need'
4. Behaviour referent
Norms/custom and practice
Values/mission
Managerial task
vis a vis labour
Monitoring
Nurturing
6. Nature of relations
Pluralist
Unitarist
7. Conflict
Institutionalised
De-emphasised
Strategic aspects
Personnel /IR
HRM
8. Key relations
Labour
management
Customer
9. Initiatives
Piecemeal
Integrated
[Link] plan
Marginal to
Central to
11. Speed of
decision
Slow
Fast
Key Levers
Personnel / IR
HRM
17. Selection
Separate, marginal task
Integrated, key task
18. Pay
Job evaluation (fixed
grades)
Performance related
19. Conditions
Separately negotiated
Harmonisation
20. Labour management
Collective bargaining
contracts
Towards individual
contracts
21. Thrust of relations
with stewards
Regularised through
facilities and training
Marginalised (with
exception of some
bargaining for
change models)
22. Job categories and
grades
Many
Few
23. Communication
Restricted flow
Increased flow
24. Job design
Division of labour
Teamwork
25. Conflict handling
Reach temporary truces
Manage climate and
culture
26. Training and
development
Controlled access to
courses
Learning companies
27. Foci of attention for
Personnel procedures
Wide ranging cultural,
A Model of the Shift to
HRM
Hard HRM
The 'hard' approach rooted in the manpower
planning approach is concerned with aligning
human resource strategy with business
strategy
Soft HRM
The 'soft' approach is rooted in the human
relations school, with concern for workers'
outcomes and encourages commitment to the
organisation by focussing on workers'
concerns.
The Human Resource
System
The Harvard Model of Human
Resource Management
Guests Model of HRM
Line and Staff Aspects of
HRM
Line manager
A manager who is authorized to direct the work
of subordinates and is responsible for
accomplishing the organizations tasks.
Staff manager
A manager who assists and advises line
managers.
Line Managers HRM
Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firms policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees health and physical condition
High-Performance Work
System
Practices
Employment security
Selective hiring
Extensive training
Self-managed teams/decentralized decision making
Reduced status distinctions
Information sharing
Contingent (pay-for-performance) rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work
Benefits of a HighPerformance
Generate more job applicants
Screen candidates more effectively
Work
System (HPWS)
Provide more and better training
Link pay more explicitly to performance
Provide a safer work environment
Produce more qualified applicants per position
Hiring based on validated selection tests
Provide more hours of training for new employees
Conduct more performance appraisals
Source: HR Department Benchmarks and Analysis Survey 2004
(Washington, DC: Bureau of National Affairs, 2004), 21. To purchase
this publication and find out more about other BNA HR solutions visit
[Link] or call 800-372-1033. Used with permission.
HR Activities
Strategic HR
Management
What is Strategic?
Metrics
Environmental
Scanning/Anticipation
High Performance Work
Practices
Leveraging Core
Competencies
HR Activities Continued
Equal Employment Opportunity
Compliance Multicultural Organizations
Diversity
Affirmative Action
Global Impacts: Resources, Markets, Employees
EEOC and the OFCCP
HR Activities Continued
Staffing
AttractionSelectionAttrition Model
Job Description
Job Analysis Qualifications
Recruiting, Interviewing
HR Development
Orientation
Socialization
Job Training
Leadership Development
Performance Management
HR Activities Continued
Compensation and Benefits
Base Pay
Merit Pay/Incentives
Gainsharing
Employee Ownership
Management of Health and Dental Costs
Cafeteria Plans
Employee Rewards
HR Activities Continued
Health, Safety, and Security
OSHA (1970)who has the responsibility for
healthy employees?
Safety in the workplace
Security post 9-11
EAPs
Health Promotion
Employee and Labor Relations
Unionization
Policies and Procedures
Communication (Justice Theory)
Small Businesses
Large piece of economic sector
Larger piece of job creation in U.S.
When do we need an HR person?
(80-100 employees)
Compliance
Compliancewith
with
Government
Government
Regulations
Regulations
Shortage
Shortageof
of
Qualified
Qualified
Workers
Workers
Issues
Issuesof
of
Greatest
Greatest
Concern
Concern
Rising
RisingTaxes
Taxes
Increasing
Increasing
Costs
Costsof
of
Benefits
Benefits
Management of Human Capital
In Organizations
Physical, Financial, Intangible and
Human Capital
The collective value of the capabilities, knowledge,
skills, life experiences, and motivation of an
organizational workforce.
Also known as intellectual capital.
How to measure the strategic value of human
assets?
Core Competency
A unique capability that creates high value and
differentiates an organization from its competition.
HR competencies: a source of competitive advantage.
HR Management
Challenges
Globalization of Business
Outsourcing and increased competition
Stockholder, employee, manager concerns?
Is this socially responsible?
Should the U.S. pass legislation protecting these
jobs? Why/Why not?
What about the perspective that this is good for the
long run as it lowers the costs of goods and
services? Do you agree? Why/Why not?
HR Management
Challenges
Globalization of Business
The threat of terrorism- How does this impact what
we do? OSHA?
Economic and Technological Changes
Occupational shifts from manufacturing and
agriculture to service industries and
telecommunications.
Pressures of global competition causing firms to
adapt by lowering costs and increasing productivity.
Technological Shifts and the Internet
Growth of information technology.
Source: U.S. Bureau of Labor Statistics, [Link].
HR Management
Challenges
Workforce Availability and Quality Concerns
Inadequate supply of workers with needed skills for
knowledge jobs
80% of manufacturing jobs report shortage of qualified workers
Education of workers in basic skills
Not enough specific skills, not enough technology skills
Growth in Contingent Workforce
Represents 20% of the workforce
Increases in temporary workers, independent contractors,
leased employees, and part-timers caused by:
Need for flexibility in staffing levels
Increased difficulty in firing regular employees.
Reduced legal liability from contract employees
Boeing Strategy- manage employment cycles in suppliers and
partners
HR Management
Challenges
Workforce Demographics
and Diversity
Increasing Racial/Ethnic
Diversity
From the Melting Pot to
the Salad Bowl
More Women in the
Workforce
Single-parent households
Dual-career couples
Domestic partners
Working mothers and
family/childcare
Significantly Aging
Workforce
Age discrimination
HR Management
Challenges
Organizational Cost Pressures and Restructuring
Mergers and Acquisitions
Right-sizingeliminating of layers of
management, closing facilities, merging with
other organizations, and outplacing workers
Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
Costs are survivor mentality, loss of employee
loyalty, and turnover of valuable employees.
HR managers must work toward ensuring cultural
compatibility in mergers.
HR Management Roles
Administrative Role
Clerical and administrative support operations
(e.g., payroll and benefits work)
Technology is transforming how HR services are
delivered.
Outsourcing HR services to reduce HR staffing costs
Operational and Employee Advocate Role
Champion for employee concerns
Employee crisis management
Responding to employee complaints
Note: Example percentages are based on various surveys.
Strategic Role for
Administrative Role
HR Role
Operational
Employee Advocate Role
Strategic Role
Contributing at the Table to organizational results
HR becomes a strategic business partner by:
Focusing on developing HR programs that enhance
organizational performance.
Involving HR in strategic planning at the onset.
Participating in decision making on mergers, acquisitions, and
downsizing.
Redesigning organizations and work processes
Accounting and documenting the financial results of HR
activities.
Some HR people get this, some dontCEOs want
those that do and oust those that dont
HR Technology
Human Resource Management System (HRMS)
An integrated system providing information used
by HR management in decision making.
Purposes (Benefits) of HRMS
Administrative and operational efficiency in compiling
HR data
Availability of data for effective HR strategic planning
Uses of HRMS
Automation of payroll and benefit activities
EEO/affirmative action tracking
HR Workflow: increased access to HR information
Employee self-service reduces HR costs.
Uses of an HRMS
HRMS
Bulletin boards
What information will be available and what is
information needed?
Data access
To what uses will the information be put?
Employee self-service
Who will be allowed to access to what information?
Web-based services and access
Extended linkage
When, where, and how often will the information be
needed?
Ethics and HR
Management
Firms with High Ethical Standards
Are more likely to reach strategic goals.
Are viewed more positively by stakeholders
Are better able to attract and retain human
resources.
Ethics and Global Differences
Different legal, political, and cultural factors in
other countries can lead to ethical conflicts for
global managers.
Foreign Corrupt Practices Act (FCPA)
Prohibits U.S. firms from engaging in bribery and other
practices in other countries.
Leaders are Readers
The Smartest Guys in the Room (2004)
McLean and Elkind
The tale of Enron is a story of human
weakness, of hubris and greed and rampant
self-delusion; of ambition run amok; of a
grand experiment in the deregulated world; of
a business model that didnt work; and of
smart people who believed their next gamble
could cover up their last disasterand who
couldnt admit they were wrong.
HRs Role in Organizational
Ethics
HR management plays a key role as the
keeper and voice of organizational ethics.
What is Ethical Behavior?
What ought to be done.
Dimensions of decisions about ethical issues in
management:
Extended consequences
Multiple alternatives
Mixed outcomes
Uncertain consequences
Personal effects
HRs Role in Organizational
Ethics (contd)
Responses to Ethical Situations
Are guided by values and personal behavior
codes that include:
Does
response meet all applicable laws, regulations,
and government codes?
Does response comply with all organizational
standards of ethical behavior?
Does response pass the test of professional
standards for ethical behavior?
The newspaper test
Ethical Behavior and
Organizational Culture
Organizational Culture
The shared values and beliefs in an organization
Common forms of unethical conduct:
Lying to supervisors
Employee drug use or alcohol abuse
Falsification of records
Fostering Ethical Behavior
A written code of ethics and standards of conduct
Training on ethical behavior for all employees
A means for employees to obtain ethical advice
Confidential reporting systems for ethical
misconduct
Ethical Behavior and
Organizational Culture
Classic Management Article
The perpetuation of unethical practices in
organizations
Socialization
Attrition
Justification from small to large
HR Management Competencies
and Careers
Important HR Competencies
Strategic contribution to organizational success
Business knowledge of organization and its
strategies
Effective and effective delivery of HR services
Familiarity with HRMS technology
Personal credibility
SPEAK THE LANGUAGE OF THE BUSINESS
HR Management as a Career
Field
HR Generalist
A person with responsibility for performing a
variety of HR activities.
HR Specialist
A person with in-depth knowledge and
expertise in a limited area of HR.
HR Manager
A person who is a line manager for HR
Generalists and Specialists
Source: HR Department Benchmarks and Analysis 2004 (Washington, DC: Bureau of National
Affairs, 2004), 119. To purchase this publication and find out more about other BNA HR
solutions visit [Link] or call 800-372-1033. Used with permission.
The Human Resource Certification Institute offers three types of
professional certifications for HR generalists.
Details on these certifications are available from the
Human Resources Certification Institute, [Link].
Other HR Certifications
Certified Compensation Professional (CCP), sponsored by the World at
Work Association
Certified Employee Benefits Specialist (CEBS), sponsored by the
International Foundation of Employee Benefits Plans
Certified Benefits Professional (CBP), sponsored by the WorldatWork
Association
Certified Performance Technologist (CPT), co- sponsored by the
American Society for Training & Development and the International Society
for Performance Improvement
Certified Safety Professional (CSP), sponsored by the Board of Certified
Safety Professionals
Occupational Health and Safety Technologist (OHST), given by the
American Board of Industrial Hygiene and the Board of Certified Safety
Professionals
Certified Professional Outsourcing, provided by New York University
and the Human Resource Outsourcing Association
