HRM - Chapter 16

liason to the board 10%

a role of the CHRO that focuses on preparation for board meetings, phone calls with board members, and attendence at board meetings.

reegineering

review and redesign of work processes to make them more efficient and improve the quality of the end product or service. Steps: Identify the proess to be reengineered, understand the process, redesign the processs, and implement the new process.

representative of the firm 5%

A role of the CHRO that focuses on activities with external stakeholders, such as lobbying, speaking to outside groups, etc.

talent architect 17%

A role of the CHRO that focuses on building and identifying the human capital critical to the present and future of the firm.

Counselor/Confidante/Coach 17%

A role of the CHRO that focuses on counseling or coaching team members or resolving interpersonal or political conflicts among team members.

Workforce sensor 8%

A role of the CHRO that focuses on identifying workforce morale issues or concerns

leader of the HR function 22%

A role of the CHRO that focuses on working with HR team members regarding the development, design, and delivery of HR services.

outsourcing

An organization's use of an outside organization for a broad set of services.

Scan the external Environment Identify strategic business issues Identify people issues Develop HR strategy Communicate HR strategy

Basic process for HR strategy:

Marketing the function: evaluation is a sign to toher managers tha the HRM function really cares about he organization as a whole and is tring to support operations, production, marketing, and other functions of the company. Information regarding cost savings and benefits is useful to prove to internal customers that HRM practices contribute to the bottom line, Such information is also useful for gaining additional business for the HRM function. Providing accountability: Evaluation helps determine whether the HRM function is meeting its objectives and effectively using its budget.

Beneffits of measuring HRM function effectiveness:

transaction processing

Computations and calculations used to review and document HRM decisions and practices

expert systems

Computer systems incorporating decision rules of people deemed to have expertise in a certain area

new technologies

Current applications of knowledge, procedures, and equipment that have not been previously used. Usually involves replacing human labor with equipment, information processing, or some combination of the two.

first, they will need "business competence" knowing the company's business and understanding its economic financial capabilities. second, HR professionals will need "professional technical knowledge" of state of the art HRm practices in areas such as staffing, development, rewards, organizational design, and communication. thrid, they must be skilled in teh "management of change processes" suc has diagnosing problems, implementing organizational changes, and evaluating results. finally, professionals must have "integration competence" meaning the ability to integrate the three other competencis to increase the company's value.

HR professionals will need 4 basic competencies to beocme partners in the strategic management process (in the future):

1. develop a strategy for the HRM function, 2. assess the current effectiveness of the HRM function, and 3. redesign, reengineer, or outsource HRM process to improve efficiency and effectiveness.

HRM functions must increase their efforts in traditional and transformational activities. To do this, however requires that HR executives:

Line executives could simply provide input, by either surveying or interviewing them regarding the business challenges and strategy. They could be members of the team that actually develops the HR strategy. Once the strategy is developed, they could receive communications with the HR strategy information. They could have to formally approve the strategy, in essense "signing off" that the HR strategy fully supports the business strategy.

Involvement of line executives can occur in a few ways:

First, at the most elementary level, "HR-focused" HR functions' articulation of people outcomes stems more from an analysis of what their functions currently due than from an understanding of how those people relate to the larger business. second, "people-linked" HR functions have clearly identified, articulated, and aligned their HR activities around poeple issues and outcomes, but not business issues and outcomes. third, "business-linked" HR functions begin with an assessment of what HR is doing, then identify the major people outcomes they should focus on, and, in a few cases, how those might translate into positive business outcomes. finally, "business-driven" HR functions have fully developed HR strategies which begin by identifying the major business needs and issues, consider how people fit in and what people outcomes are necessary, and then build HR systems focused on meeting those needs.

Levels of linkage with the business:

True

One recent trend within the field of HRM, consistent with the total quality management philosophy, is for the HR executive to take a customer-oriented approach to implementing the function.

decision support systems

Problem-solving systems which usually include a "what-if" feature that allows users to see how outcomes change when assumptions or data change.

True

T/F For the HRM function to become truly strategic in its orientation, it must view itself as a separate business entity and engage in strategic management in an effor to effectively serve the various internal customers.

True

T/F In attempting to become strategic, the HRM function must also identify the products of hte HRM deparment. Line managers want to have high-quality employees committed to the organization. The strategic planning team requires information and recommendations for the planning process as well as programs that support the strategic plan once its been identified. Employees want compensation and benefit programs that are consistent, adequate, and equitable, and they want fair promotion decisions.

True

T/F In attempting to become strategic, the HRM function must first identify customers. The most obvious example of HRM customers are the line managers who require HRM services. In addition, the strategic planning team is a cusotmer in the sense that it rquires hte identification, analysis, and recommendations regarding people-oriented business problems. Employees are also HRM cusotmers because the rewards they receive from the employment relationship are determined and/or administered by the HRM department.

True

T/F Resource constraints in terms of time, money, and head count require that the HR executive make strategic choices about where and how to allocate resources for maximum value to the firm.

True

T/F The technologies through which HRM meets customer needs vary depending on the need being satisfied. Selection systems ensure that applicants selected for employmment have the necessary knowledge, skill, and abilities to provide value to the organization. Training and development systems meet the needs of both line managers and employees by giving employees development opportunities to ensure htey are constantly increasing their human capital and thus providing increased value to the company. Performance management systems maek clear to employees what is expected of them and assure line managers and strategic planners that employee behavior will be in line with the company's goals. Reward systems benefit all customers and assure line managers that employees will use their skillls for organization benefit and they provide strategic planners with ways to ensure that all employees are acting in ways that will support the strategic plan.

True

T/F While the HRM function began as a purely administrative function, most HR executives now see the function's major role as being much more strategic.

True

T/F virtually every HRM function in top companies is going through a transformation process to create a function that can play the new strategic role while successfulling fulfilling its other roles.

analytic approach

Type of assessment of HRM effectiveness that involves determining the impact of, or the financial cost and benefits of, a program or practice. This approach is more demanding.

audit approach

Type of assessment of HRM effectiveness that involves review of customer satisfaction or key indicators (like turnover rate or average days to fill a position) related to an HRM functional area (such as recruiting or training).

Transactional

activities (the day-to-day transactions such as benefits administration, record keeping, and employee services) that are low in their strategic value. HRM functions spend 65-75% of time on these activities.

Traditional

activities such as performance managmenet, training, recruiting, selection, compensation, and employee relations that are the nuts and bolts of HRM. HRM functions spend 15-30% of time on these activities. These activities have moderate strategic value becuase they often form the practices and systems to ensrue strategy execution.

Transformational

activities that create long-term capability and adaptability for the firm. They include knowledge management, management development, cultural change, and strategic redirection and renewal.These activities comprise the greatest strategic value for the firm. HRM functions spend 5-15% of time on these activities.

field generalists

consist of the HRM generalists who are assigned to a business unit whithin the firm. These individuals usually ahve dual reporting relationships to both the head of hte line buisness and the head of HRM (although the line business tends to take priority). They ideally take responsibility for helping the line executives in thier business strategically address people issues, and they ensure that the HRM systmes enable the buisness to execute its strategy.

centers for expertise

consist of the functional specialists in the traditional areas of HRM such a recruitment, selection, training, and compensation. These individuals usually act as consultants in the development of state of the art systems and processes for use in the organization.

service center

consists of individuals who ensure that the transactional activities are delivered throughout the organization.They often leverage IT to efficiently deliver employee services.

Centers for expertise, field generalists, and service center

the HRM function is divided into three divisions:

strategic advisor 21%

the role of the CHRO that focuses on the formulation and implementation of the firm's strategy

The HR Accounting approach attempts to place a dollar value on human resources as if they were physical resources (like plant and equipment) or financial resources (like cash). Utility analysis attempts to estimate the financial impact of employee behaviors (absenteeism, turnover, job performance, and substance abuse).

variosu types of cost-benefit analysis: