human resource management
Balancing work life and personal life Survey of 3000 workers 86% work fulfillment and work-life balance is top priorities 35% said "moving up the ladder" is top priority
Changing Attitudes toward Work
Business mastery HR mastery Change mastery Personal credibility
Competencies
The planned elimination of jobs ("head count").
Downsizing
The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.
Employee Leasing
Equal Employment Opportunity Union representation, if desired Safe and healthy work environment Government pension plans regulations Equal pay for men and women performing essentially the same job Privacy in the workplace Employment-at-will doctrine
Employee Rights
Taking Action: Reconciling Supply and Demand
Step Five: Strategy Implementation
Strategy Formulation SWOT analysis
Step Four: Formulating Strategy
Evaluation and Assessment Issues Benchmarking: The process of comparing the organization's processes and practices with those of other companies Human capital metrics Assess aspects of the workforce Examples: separation costs, voluntary separation rate, human capital return on investment (ROI) HR metrics Assess the performance of the HR function itself
Step Six: Evaluation and Assessment
What human resources are needed and what are available?
Strategic Analysis
What is required and necessary in support of human resources?
Strategic Formulation
The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals
Strategic Human Resources Management (SHRM
How will the human resources be allocated?
Strategic Implementation
Employees who have unique skills that are directly linked to the company's strategy. Example: R&D scientists
Strategic Knowledge Workers
Procedures for making decisions about the organization's long-term goals and strategies
Strategic Planning
A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent
Strategic Vision
Moving from simple analysis to devising a coherent course of action.
Strategy Formulation
—providing input as to what is possible given the types and numbers of people available.
Strategy formulation
—making primary resource allocation decisions about structure, processes, and human resources.
Strategy implementation
80% of baby boomers expect to work past the traditional retirement age More health, less turnover, no dependents, no retirement benefits
Aging workforce
Individuals and groups with unique skills, but those skills are not directly related to a company's core strategy. Example: consultants
Alliance Partners
A measurement framework that helps managers translate strategic goals into operational objectives financial customer processes learning
Balanced Scorecard (BSC)
Flexible work hours, day care, elder care, part-time work, job sharing, pregnancy leave, parental leave Executive transfer, spousal involvement in career planning , assistance with family problems (drug abuse), telecommuting, four-day work week Reduces turnover, attracts and retains top people Must balance benefits for majority of workers that have no children that are under the age of 18
Balancing Work and Family
The process of comparing the organization's processes and practices with those of other companies Human capital metrics Assess aspects of the workforce Examples: separation costs, voluntary separation rate, human capital return on investment (ROI) HR metrics Assess the performance of the HR function itself
Benchmarking:
Privacy Act of 1974 (federal agencies) EU prohibits transfer of personal data to countries with inadequate data protection laws (China)
Concern for Privacy
Rapid reallocation of resources with contingency workforce of part-times, temps, contract workers
Coordination Flexibility
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.
Core Capabilities
Employees with skills to perform a predefined job that are quite valuable to a company, but not particularly unique or difficult to replace. Example: salespeople
Core Employees
The strong and enduring beliefs and principles that the company uses as a foundation for its decisions
Core Values
-Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers
Core competencies
is a competitive advantage through people Resources must have value: increases the efficiency or effectiveness of the company Resources must be rare: people's skill, knowledge, abilities are unique Resources must be difficult to imitate: employee capabilities and contributions not copied Resources must be organized: employee talent can be combined and deployed to work on new assignments
Core competencies criteria:
Outsource functions so the organization can do the ---, that is, "what they do best."
Core functions of outsourcing
The responsibility of the firm to act in the best interests of the people and communities affected by its activities HRM's roles is to spearhead the development and implementation of corporate citizenship throughout the firm
Corporate Social Responsibility (CSR)
Audits of the culture and quality of work life in an organization.
Cultural Audits
How do employees spend their time? How do they interact with each other? Are employees empowered? What is the predominant leadership style of managers? How do employees advance within the organization?
Cultural Audits
Importance Employee-oriented cultures considered critical to success Determine clear understanding of employees' views Importance of workload and treatment by bosses Determine if subcultures exist Sears found positive employee attitudes on 10 essential factors directly linked to customer satisfaction and revenue increases
Cultural Audits
An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals. The final forecast represents a composite group judgment.
Delphi Technique
More diverse workforce Aging workforce More educated workforce
Demographic Changes
: compete on added value Involves providing something unique and distinctive to customers that they value.
Differentiation strategy
Economic factors: general, regional, and global conditions Industry and competitive trends: new processes, services, and innovations Technological changes: robotics and office automation Government and legislative issues: laws and administrative rulings Social concerns: child care and educational priorities Demographic and labor market trends: age, composition, literacy, and immigration
Environmental Scanning
Panel of experts
Expert Opinions
Focuses on the connection between the business objectives and the major initiatives in HR.
External Fit/Alignment
Parental leave Part-time employment Flexible work schedules Job sharing Telecommunting Child and elder care assistance
Family-friendly workplace
Staffing Tables Markov Analysis
Forecasting Internal Labor Supply
forecasting the demand for labor forecasting the supply of labor balancing supply and demand considerations.
Forecasting involves:
Select a business factor that best predicts human resources needs. Plot the business factor in relation to the number of employees to determine the labor productivity ratio. Compute the productivity ratio for the last year of actual data (2008) 3880/310 = 12.52 Calculate human resources demand by dividing the business factor of the forecast year (2009) by the productivity ratio of last year of actual data (2008) 4095/12.52 = 327.076 = 327 employees needed for the year of 2009 Project human resources demand out to the target year(s).
Forecasting labor demand based on an organizational index such as sales:
Staffing Tables Markov Analysis Skill Inventories Replacement Charts Succession Planning
Forecasting the Supply of Employees: Internal Labor Supply
Ensuring Alignment
Functional Strategy:
60% of the women 16 years and older participate in the labor force 71% of the mothers with school-age children are in employed in some capacity In 2006, women earned 81% of what men made
Gender Distribution of the Workplace
The trend toward opening up foreign markets to international trade and investment
Globalization
Different geographies, cultures, laws, and business practices Issues: Identifying capable managers and workers Developing foreign culture and work practice training programs to limit "culture shock." Adjusting compensation plans for overseas work Expatriate managers: US managers living abroad
Globalization's Impact on HRM
What are your mission, vision, and values? What are your current pressing business issues? What are our organizational strengths? Who are our competitors' organizational strengths? How do we compare? What core capabilities do we need to win in our markets?• What are the required knowledge, skills, and abilities we need to execute the winning strategy? What are the barriers to optimally achieving the strategy? What types of skills and positions will be required or no longer required? Which skills should we have internally versus contract with outside providers? What actions need to be taken to align our resources with strategy priorities? What recognition and rewards are needed to attract, motivate, and retain the employees we need? How will we know if we are effectively executing our workforce plan and staying on track?
HR Planning and Strategy Questions to Ask Business Managers
Allows HR teams to focus on people issues instead of data problems. Allows HR and line managers to share information for better decision making.
HR investment factors
Fit of the application to the firm's employee base. Ability to upgrade to increase efficiency and time savings Compatibility with current systems Availability of technical support Time required to implement and train staff members to use HRIS Initial and annual maintenance costs Training time required for HR and payroll
HR investment factors
staffing, performance appraisal, rewards system, communication, organizational design
HR mastery
Layoffs, early retirement, voluntary separation programs, sabbaticals for continuing education, survivors' morale, severance pay, downsize through reassigning, retraining 17% merger, 21% fundamental realignments, 34% strengthen company's position Requires new union agreements, org structure, closed/modified plants, job descriptions creates growth
HRM Impact on downsizing
get most from employees and provide a work environment that meets the employees short-term and long-term needs
HRM role:
KSAs Core Competencies Competitive Advantage Success is capturing, storing, leveraging what employees know - Lew Platt, Hewlett-Packard Employees own their human capital, not the organizations
Human Capital
The knowledge, skills, and capabilities of individuals that have economic value to an organization. Knowledge, skills, and abilities (KSAs)
Human Capital
is based on company-specific skills. is gained through long-term experience. can be expanded through development.
Human Capital is valuable because
A computerized system that provides current and accurate data for the purposes of control and decision making.
Human Resources Information System (HRIS)
The process of managing human resources (human capital and intellectual assets) to achieve an organization's objectives.
Human Resources Management (HRM)
Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.
Human Resources Planning (HRP)
"Anything, anytime, anywhere" markets 24/7/365 Partnerships with foreign firms In Bev, a Belgian firm, purchased Anheuser Busch 97% of all US exports are small companies Lower trade and tariff barriers NAFTA, EU, APEC trade agreements WTO and GATT (established rules and guidelines for trading)
Impact of Globalization
Skill Inventories Succession Planning
Internal Demand Forecasting Tools
Aligning HR practices with one another to establish a configuration that is mutually reinforcing.
Internal Fit/Alignment
"Touch labor" requires little skill ----- whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.
Knowledge Workers
Severance and rehiring costs Pension and benefit payoffs Loss of institutional memory and trust in management Survivors become risk averse, paranoid, and political With no layoffs: fiercely loyal, more productive workforce, not afraid to innovate, knowing their jobs are safe
Layoffs may backfire from downsizing
The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization's future employment needs.
Management Forecasts
Formal change management programs help to keep employees focused on the success of the business.
Managing Change through HR
Being aware of characteristics common to employees, while also managing employees as individuals
Managing Diversity
Being acutely aware of characteristics common to employees Managing these employees as individuals Accommodating differences and supporting, nurturing, and utilizing these differences to the organization's advantage
Managing diversity
A method for tracking the pattern of employee movements through various jobs.
Markov Analysis
A method for tracking the pattern of employee movements through various jobs. Shows percentages/actual numbers of employees that remain in each job from 1 year to the next (i.e., from 2007 to 2008) Shows percentages of those who are promoted, demoted, transferred, or exit the organization Used to track patterns of employee movements through jobs and to develop transition matrix for forecasting labor supply
Markov Analysis
Strategy Mapping and the Balanced Scorecard Balanced Scorecard (BSC) A measurement framework that helps managers translate strategic goals into operational objectives financial customer processes learning
Measuring a Firm's Strategic Alignment
The basic purpose of the organization as well as its scope of operations
Mission
Ethnic and cultural challenges Need sources of talent - immigrant labor
More diverse workforce
Necessity of basic skills training
More educated workforce
value added in a sub-market Involves providing something unique and distinctive to a niche or subset of customers
Niche strategy:
Global Sourcing, Outsourcing Overseas Business practice of sending jobs to other countries.
Offshoring
Cost reduction ( 40% - 60% labor cost reduction) Grow the business of the company Allocate work across the countries that the company does business With reduced costs, may save a failing company Make better use of US skilled labor Deliver products more cheaply and quickly because at locations across the globe that are closer to the final customers
Offshoring purpose
Capacity of the organization to act and change in pursuit of sustainable competitive advantage. Coordination flexibility The ability to rapidly reallocate resources to new or changing needs. Contingency workforce of part-timers, temps, contract workers Resource flexibility Having human resources who can do many different things in different ways.
Organizational Capability
Ensuring Strategic Flexibility for the Future
Organizational Capability
Contracting outside the organization to have work done that formerly was done by internal employees.
Outsourcing
competitive challenge, HUman resources, employee concerns
Overall Framework for Human Resources Management
= f (ability, motivation, environment) Low on any one productivity suffer
Performance
Outputs/Inputs: "output gained from a fixed amount of inputs" Increases by reducing inputs or by increasing outputs
Productivity
results in a combination of employees' abilities, motivation, and work environment and technology
Productivity
motivation, environment, ability
Productivity Enhancements
Getting the right person in the right position at the right time to accomplish the organization's goals Solve labor shortages/surpluses, support protected classes, determine training needs
Purpose of human resource planning
Management Forecasts Delphi Technique Expert Opinions
Qualitative Approaches
responsibilities, competencies
Qualities of HR Managers
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Requires that managers create an environment for change. Depends on effective leadership and communication processes. Requires that administrative systems be reviewed and modified. Requires recruiting, selection, job descriptions, training, career planning, performance appraisal, compensation, labor relations of potentially all involved employees.
Reengineering and HRM
Listings of current jobholders and persons who are potential replacements if an opening occurs. Skill and management inventories are also called talent inventories, used to develop replacement charts Displays current job performance and promotability
Replacement Charts
Cross-training, job rotations, team-based work model
Resource Flexibility
Advice and counsel Service Policy formulation and implementation Employee advocacy
Responsibilities
Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.
Staffing Tables
A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes. Use the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses.
SWOT analysis
Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds. Need to be an up-to-date confidential database When data is compiled on management then it is called management inventories
Skill Inventories
The process of identifying, developing, and tracking key individuals for executive positions. Succession plans are needed for the stability of the company Estimated 33% turnover in executive ranks in the next five years "Average one-year estimated replacement cost is $750,000"
Succession Planning
Employees whose skills are of less strategic value and generally available in the labor market. Example: clerical workers
Supporting Labor
Are valuable. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for teamwork and cooperation.
Sustained competitive advantage through people is achieved if these human resources:
Balancing demand and supply considerations Forecasting business activities (trends) Locating applicants Organizational downsizing, outsourcing, offshoring Reducing "headcount" Making layoff decisions Seniority or performance? Labor agreements
Taking Action: Reconciling Supply and Demand
Your most important issues Human capital value added Human capital ROI Separation cost Voluntary separation rate Total labor-cost/revenue percentage Total compensation/revenue percentage Training investment factor Time to start Revenue factor
Ten Measures of Human Capital
Strategic Knowledge Workers Core Employees Supporting Labor Alliance Partners
The Human Capital Architecture
Competing, recruiting, and staffing globally Embracing new technology Managing change Managing talent, or human capital Responding to the market Containing costs
The most pressing competitive issues facing firms:
better utilization of talent, increased market place understanding, enhanced creativity, increased quality of team problem solving, breadth of understanding in leadership positions,
The primary business reasons for diversity management
A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.
Total Quality Management (TQM)
responding to the market involves
Total Quality Management (TQM), six sigma
Reactive change Change that occurs after external forces have already affected performance Proactive change Change initiated to take advantage of targeted opportunities
Types of Change
The systematic monitoring of the major external forces influencing the organization.
step 2 Environmental Scanning
What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted (value = benefits — costs). Low-cost strategy: competing on productivity and efficiency Keeping costs low to offer an attractive price to customers (relative to competitors). Differentiation strategy: compete on added value Involves providing something unique and distinctive to customers that they value. Niche strategy: value added in a sub-market Involves providing something unique and distinctive to a niche or subset of customers
Value Creation
Not establishing a sense of urgency. Not creating a powerful coalition to guide the effort. Lacking leaders who have a vision. Lacking leaders who communicate the vision. Not removing obstacles to the new vision. Not systematically planning for and creating short-term "wins." Declaring victory too soon. Not anchoring changes in the corporate culture. "Back sliding" - not allowing people to revert to the old ways
Why Change Efforts Fail at managing change
recruiting, selecting, training, development
ability
business acumen, customer orientation, external relations,
business mastery
interpersonal skills, influence, problem solving skills, reward systems, innovativeness and creativity
change mastery
changes in the marketplace and economy, globalization, technology, cost containment, leveraging employee differences
competitive challenge
As HR professionals, we are responsible for adding value to the organizations we serve and contributing to the ethical success of those organizations. We accept professional responsibility for our individual decisions and actions. We are also advocates for the profession by engaging in activities that enhance its credibility and value.
core principle for SHRM code of ethical and professional standards in HRM
Growth and Diversification Mergers and Acquisitions Strategic Alliances and Joint Ventures
corporate strategy
employee rights. concern for privacy
cultural changes
to contain costs they
downsize
Less than 50% of high school seniors can handle math problems involving fractions, decimals, percents, and simple algebra Between 45% - 50% of US adults have only limited reading and writing abilities needed to handle the minimal demand of daily living or job performance US firms are spending billions of dollars on basic skills training for the their employees "...American business will have to hire a million new workers a year who can't read, write, or count." David Kearns, former CEO of Xerox Corporation
education of the workplace
job security, health care issues, age and generational issues, retirement issues, gender issues, educational level, employee rights, privacy issues, work attitudes, family concerns,
employee concerns
employee empowerment, teams, leader support, culture
environment
rival firms, suppliers, new entrants, customers, substitutes
five forces of framework
qualitative and quatitative methods
forecast demands
triangle, top part says business mastery, middle is HR mastery, bottom is personal credibility
human resource competency model
Benefits: Automation of routine tasks, lower administrative costs, increased productivity and response times-personnel data. Self-service access to information and training for managers and employees-update personal information on online Online recruiting, screening, and pretesting of applicants Training, tracking, and selecting employees based on their record of skills and abilities-search for specific skill Organization-wide alignment of "cascading" goals
human resource information systems
planning, recruiting, staffing, job design, training/developing, appraisal, communications, compensation, benefits, labor relations,
human resources
employee rights, concern for privacy, balancing work and family, attitudes toward work, all involve jobs and organization.
impact of culture change
composition, capabilities, culture
step 3 internal analysis
To build respect, credibility and strategic importance for the HR profession within our organizations, the business community, and the communities in which we work. To assist the organizations we serve in achieving their objectives and goals. To inform and educate current and future practitioners, the organizations we serve, and the general • public about principles and practices that help the profession. To positively influence workplace and recruitment practices. To encourage professional decision-making and responsibility. To encourage social responsibility.
intent for SHRM code of ethical and professional standards in HRM
TQM, downsizing, reengineering, outsourcing, merging
managing change
job enrichment, promotion, coaching, feedback, rewards
motivation
Advertising firms for ad campaigns, law firms for legal issues, maintenance, security, catering, HR and payroll functions
outsourcing Functions
Freelance, part-time, contract individual Employee leasing, contractor hires displaced personnel
outsourcing individuals
trust, personal relationships, lived values, courage
personal credibility
"In absolute terms, the US remains the world's most productive nation. US workers produce more output collectively that any other country--$63,000 per worker Additional productivity will come from the enhanced ability of employees, their motivation, and work environment
productivity
All areas influenced by HR activities
productivity
re-engineering and human resource management
respond to the market with
A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. Continuous improvement drives toward disequilibrium and focus on customers and management systems provides restraining forces that keep the system together. HR stresses employee motivation, change in corporate culture, and employee education
six sigma
that a company can essentially maintain its working relationships with its employees but shift some of the employment costs to the professional employer organization (PEO) A larger PEO takes over the HR functions of another company's employees The PEO can be a "co-employer" of a smaller company's employees and offer more benefits
the value of Employee Leasing
Forecasting labor demand based on an organizational index such as sales:
trend analysis
culture, opportunity, leadership
valuing diversity in the workplace
Tasks performed HRM: Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues. Relevant to line managers and HR managers "You can get capital and erect a building, but it takes people to build a business" - Thomas J. Watson, IBM
why study human resource management