Human Resources

Human Resources is…

Function of an organization dedicated to Function of an organization dedicated to managing employees (the human element) managing employees (the human element) to help achieve organizational goalsto help achieve organizational goals

Roles

Recruitment and Selection (Staffing)Recruitment and Selection (Staffing) Training and DevelopmentTraining and Development Performance AppraisalPerformance Appraisal Compensation and Benefits ManagementCompensation and Benefits Management Labor RelationsLabor Relations SafetySafety

History

Function began as “personnel”Function began as “personnel” Dedicated to employee discipline and Dedicated to employee discipline and

record keepingrecord keeping

Now called “Human Resources” to reflect Now called “Human Resources” to reflect changing functionchanging function

5 years ago, HR spent about 25% of time on 5 years ago, HR spent about 25% of time on employee data. Today HR spends about employee data. Today HR spends about 16%, and spends 20% of their time on 16%, and spends 20% of their time on strategic business partner functionsstrategic business partner functions

Source: Iowa Human Resource Source: Iowa Human Resource

Department Management Department Management

Report 2001 YearbookReport 2001 Yearbook

Human Resource Managers

Give Advice and CounselGive Advice and Counsel Provide services such as testing, selection, Provide services such as testing, selection,

and trainingand training Formulate and Implement policiesFormulate and Implement policies Advocate for employeesAdvocate for employees

HR functions are performed by everyone who HR functions are performed by everyone who supervises/manages employees. Some companies supervises/manages employees. Some companies have a dedicated person or department.have a dedicated person or department.

Companies tend to need a specialist/department as Companies tend to need a specialist/department as they approach 100 employeesthey approach 100 employees

In 2000-2001 the average is one HR employee for In 2000-2001 the average is one HR employee for every 100 workers (Source: BNA Bulletin to every 100 workers (Source: BNA Bulletin to Management, Vol. 52, Number 26, 6/28/2001)Management, Vol. 52, Number 26, 6/28/2001)

Schools, city governments, and healthcare Schools, city governments, and healthcare companies tend to have lower staffs than companies tend to have lower staffs than manufacturing, association and social service manufacturing, association and social service agenciesagencies

Functional structures

Specialists in the HR functionsSpecialists in the HR functions Supervisor of StaffingSupervisor of Staffing Director of CompensationDirector of Compensation Labor Relations ManagerLabor Relations Manager

In 2001, specialists in benefits, In 2001, specialists in benefits, employment/ recruitment, and training are employment/ recruitment, and training are most common.most common.

Generalist structures

HR Supervisor/Manager/Director who HR Supervisor/Manager/Director who serves a department, division or companyserves a department, division or company HR Supervisor for Marketing HR Supervisor for Marketing HR Manager for the Consumer Products HR Manager for the Consumer Products

DivisionDivision

Structure of Human Resources

How does Human Resources work in a How does Human Resources work in a local organization ? local organization ?

Current Challenges

Going globalGoing global Embracing new technologiesEmbracing new technologies Managing changeManaging change Developing human capitalDeveloping human capital Responding to the marketResponding to the market Containing costsContaining costs

Going Global

Technology

Managing Change

Change is inevitable - except from a Change is inevitable - except from a vending machine.  ~Robert C. Gallaghervending machine.  ~Robert C. Gallagher

It is not necessary to change.  Survival is It is not necessary to change.  Survival is not mandatory.  ~W. Edwards Denning not mandatory.  ~W. Edwards Denning

Developing Human Capital

I’m rare, I’m organized, I’m

valuable and I’m one of a kind!!!

Responding to Market

T Q MT Q M

Six SigmaSix Sigma

Total Quality Management (TQM) Management approach that aims for long-Management approach that aims for long-

term success by focusing on customer term success by focusing on customer satisfaction. satisfaction.

Requires participation of all members of an Requires participation of all members of an organization in improving processes, organization in improving processes, products, services, and cultureproducts, services, and culture

Six Sigma management philosophy management philosophy setting extremely high objectives, collecting setting extremely high objectives, collecting

data, and analyzing results to reduce defects data, and analyzing results to reduce defects in products and servicesin products and services

sigmasigma denotes variation from a standard denotes variation from a standard

MeasureMeasure errorserrors eliminate errors eliminate errors Six Sigma required less than 3.4 defects per Six Sigma required less than 3.4 defects per

million opportunities (an opportunity is million opportunities (an opportunity is defined as a chance for nonconformance) defined as a chance for nonconformance)

Containing Costs

Employee Issues

Demographic ChangesDemographic Changes Age issuesAge issues Diversity Diversity

Cultural ChangesCultural Changes Employee rightsEmployee rights Attitudes toward workAttitudes toward work