Jack Welch- WinningElevate 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 ManagementHuman Resource (HR) ManagementThe 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 ConceptsThe bottom line of managing:

Getting resultsHR 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 ManagersSo that you dont.........

Hire the wrong person for the jobExperience high turnoverHave your people not doing their bestWaste time with useless interviewsHave your employees thing Company is unfair and unethicalAllow lack of trainingNot manage performance and reward in proper way.

Distinguishing Between HRM and PM

Guests Model of HRMLinked to the strategic management of an organisation. Seeks commitment to organisational goalsFocuses on the individual needs rather than the collective workforce.Enables organisations to devolve power and become more flexibleEmphasises 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 HRMBeliefs and assumptions1. ContractCareful delineation of written contractsAim to go 'beyond contract'2. RulesImportance of devising clear rules/mutuality'Can-do' outlook; impatience with 'rule'3. Guide to management actionProcedures'Business need'4. Behaviour referentNorms/custom and practiceValues/missionManagerial task vis a vis labourMonitoringNurturing6. Nature of relationsPluralistUnitarist7. ConflictInstitutionalisedDe-emphasised

Strategic aspects

Personnel /IR HRM8. Key relationsLabour managementCustomer9. InitiativesPiecemealIntegrated10.Corporate planMarginal toCentral to11. Speed of decisionSlowFast

Key Levers

Personnel / IR HRM17. SelectionSeparate, marginal taskIntegrated, key task18. PayJob evaluation (fixed grades)Performance related19. ConditionsSeparately negotiatedHarmonisation20. Labour managementCollective bargaining contractsTowards individual contracts21. Thrust of relations with stewardsRegularised through facilities and trainingMarginalised (with exception of some bargaining for change models)22. Job categories and gradesManyFew23. CommunicationRestricted flowIncreased flow24. Job designDivision of labourTeamwork25. Conflict handlingReach temporary trucesManage climate and culture26. Training and developmentControlled access to coursesLearning companies27. Foci of attention for interventionsPersonnel proceduresWide ranging cultural, structural and personnel strategies

A Model of the Shift to HRM

Hard HRMThe 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy

Soft HRMThe '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 HRMLine managerA manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks.Staff managerA manager who assists and advises line managers.

*

Line Managers HRM ResponsibilitiesPlacing the right person on the right jobStarting new employees in the organization (orientation)Training employees for jobs that are new to themImproving the job performance of each personGaining creative cooperation and developing smooth working relationshipsInterpreting the firms policies and proceduresControlling labor costsDeveloping the abilities of each personCreating and maintaining department moraleProtecting employees health and physical condition

*

High-Performance Work System PracticesEmployment securitySelective hiringExtensive trainingSelf-managed teams/decentralized decision makingReduced status distinctionsInformation sharingContingent (pay-for-performance) rewardsTransformational leadershipMeasurement of management practicesEmphasis on high-quality work

*

Benefits of a High-Performance Work System (HPWS)Generate more job applicantsScreen candidates more effectivelyProvide more and better trainingLink pay more explicitly to performanceProvide a safer work environmentProduce more qualified applicants per positionHiring based on validated selection testsProvide more hours of training for new employeesConduct 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 http://hrcenter.bna.com or call 800-372-1033. Used with permission.

HR ActivitiesStrategic HR ManagementWhat is Strategic?MetricsEnvironmental Scanning/AnticipationHigh Performance Work PracticesLeveraging Core Competencies

HR Activities ContinuedEqual Employment OpportunityCompliance Multicultural OrganizationsDiversityAffirmative ActionGlobal Impacts: Resources, Markets, EmployeesEEOC and the OFCCP

HR Activities ContinuedStaffingAttractionSelectionAttrition ModelJob DescriptionJob Analysis QualificationsRecruiting, InterviewingHR DevelopmentOrientationSocializationJob TrainingLeadership DevelopmentPerformance Management

HR Activities ContinuedCompensation and BenefitsBase PayMerit Pay/IncentivesGainsharingEmployee OwnershipManagement of Health and Dental CostsCafeteria PlansEmployee Rewards

HR Activities ContinuedHealth, Safety, and SecurityOSHA (1970)who has the responsibility for healthy employees?Safety in the workplaceSecurity post 9-11EAPsHealth PromotionEmployee and Labor RelationsUnionizationPolicies and ProceduresCommunication (Justice Theory)

Issues of Greatest ConcernSmall BusinessesLarge piece of economic sectorLarger piece of job creation in U.S.

When do we need an HR person? (80-100 employees)

Management of Human Capital In OrganizationsPhysical, Financial, Intangible andHuman CapitalThe 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 CompetencyA unique capability that creates high value and differentiates an organization from its competition.HR competencies: a source of competitive advantage.

HR Management ChallengesGlobalization of BusinessOutsourcing and increased competitionStockholder, 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 ChallengesGlobalization of BusinessThe threat of terrorism- How does this impact what we do? OSHA?Economic and Technological ChangesOccupational 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 InternetGrowth of information technology.

Source: U.S. Bureau of Labor Statistics, www.bls.gov.

HR Management ChallengesWorkforce Availability and Quality ConcernsInadequate supply of workers with needed skills for knowledge jobs80% of manufacturing jobs report shortage of qualified workersEducation of workers in basic skillsNot enough specific skills, not enough technology skillsGrowth in Contingent WorkforceRepresents 20% of the workforceIncreases in temporary workers, independent contractors, leased employees, and part-timers caused by:Need for flexibility in staffing levelsIncreased difficulty in firing regular employees.Reduced legal liability from contract employeesBoeing Strategy- manage employment cycles in suppliers and partners

*

HR Management ChallengesWorkforce Demographics and DiversityIncreasing Racial/Ethnic DiversityFrom the Melting Pot to the Salad BowlMore Women in the WorkforceSingle-parent householdsDual-career couplesDomestic partnersWorking mothers and family/childcareSignificantly Aging WorkforceAge discrimination

*

HR Management ChallengesOrganizational Cost Pressures and RestructuringMergers and AcquisitionsRight-sizingeliminating of layers of management, closing facilities, merging with other organizations, and outplacing workersIntended 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 RolesAdministrative RoleClerical 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 costsOperational and Employee Advocate RoleChampion for employee concernsEmployee crisis managementResponding to employee complaints

Note: Example percentages are based on various surveys.

Strategic Role for HRAdministrative RoleOperational RoleEmployee Advocate RoleStrategic RoleContributing 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 processesAccounting 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 TechnologyHuman Resource Management System (HRMS)An integrated system providing information used by HR management in decision making.Purposes (Benefits) of HRMSAdministrative and operational efficiency in compiling HR dataAvailability of data for effective HR strategic planningUses of HRMSAutomation of payroll and benefit activitiesEEO/affirmative action trackingHR Workflow: increased access to HR informationEmployee self-service reduces HR costs.

Uses of an HRMSHRMS Bulletin boardsWhat information will be available and what is information needed?Data accessTo what uses will the information be put?Employee self-serviceWho will be allowed to access to what information?Web-based services and accessExtended linkageWhen, where, and how often will the information be needed?

Ethics and HR ManagementFirms with High Ethical StandardsAre more likely to reach strategic goals.Are viewed more positively by stakeholdersAre better able to attract and retain human resources.Ethics and Global DifferencesDifferent 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 EthicsHR 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 consequencesMultiple alternativesMixed outcomesUncertain consequencesPersonal 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 CultureOrganizational CultureThe shared values and beliefs in an organizationCommon forms of unethical conduct:Lying to supervisorsEmployee drug use or alcohol abuseFalsification of recordsFostering Ethical BehaviorA written code of ethics and standards of conductTraining on ethical behavior for all employeesA means for employees to obtain ethical adviceConfidential reporting systems for ethical misconduct

Ethical Behavior and Organizational CultureClassic Management ArticleThe perpetuation of unethical practices in organizationsSocializationAttritionJustification from small to large

HR Management Competencies and CareersImportant HR CompetenciesStrategic contribution to organizational successBusiness knowledge of organization and its strategiesEffective and effective delivery of HR servicesFamiliarity with HRMS technologyPersonal credibility

SPEAK THE LANGUAGE OF THE BUSINESS

HR Management as a Career FieldHR GeneralistA person with responsibility for performing a variety of HR activities.HR SpecialistA person with in-depth knowledge and expertise in a limited area of HR.HR ManagerA 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 http://hrcenter.bna.com 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, www.hrci.org.

Other HR CertificationsCertified Compensation Professional (CCP), sponsored by the World at Work AssociationCertified Employee Benefits Specialist (CEBS), sponsored by the International Foundation of Employee Benefits PlansCertified Benefits Professional (CBP), sponsored by the WorldatWork AssociationCertified Performance Technologist (CPT), co- sponsored by the American Society for Training & Development and the International Society for Performance ImprovementCertified Safety Professional (CSP), sponsored by the Board of Certified Safety ProfessionalsOccupational Health and Safety Technologist (OHST), given by the American Board of Industrial Hygiene and the Board of Certified Safety ProfessionalsCertified Professional Outsourcing, provided by New York University and the Human Resource Outsourcing Association

*

*

*

*

*

*

*

*