WHY DOESN’T THIS HR DEPARTMENT GET ANY RESPECT?

ANALYSIS PRESENTATION Team H Andrew Compton Justin Holden Natalie Stovicek Chao-Ching (Jimmy) Lien Paul Wroten

Questions

• What do YOU think about the case?

• Can you relate to it?

• Who has issues or stories about their HR Department • Have you gotten a bad check?

• Have you filed a complaint that was ignored?

Short Clip Bad HR

Summary of Loft

• Luke Robinson is recruited by new CEO to solve several company issues.

• HR’s purpose was administrative under CEO, Washington • When Washington left, the company suddenly lost the talent of attracting and retaining talented employees.

• Luke Robinson, an experienced top HR consultant, is recruited by new CEO, Bernie Shargall, to solve the issues.

• He takes the position as career challenge, however, he is running into trouble.

Summary of Incidents at Loft

• Company had never before paid much attention to HR • Lost 4 key employees in under two years • Conflicting opinions of Loft • Executives don’t pay attention to Robinson’s plans to fix things • Payroll mishap • Mishandling of discrimination investigation

Robinson’s Attempts

• Spent time with executives, managers, brokers, administrative staff, HR staff, and external contacts • HR Ambassador program • Regular Meetings with business-unit heads • Replaced ineffective HR staff • Plan to educate employees about role of HR

Character Analysis

•

List of Characters

• 1. Luke Robinson (Managing Partner of HR) • 2. Philip Washington (Former CEO) • 3. Bernie Shargall (Current CEO) + Executive Committee

Luke Robinson, Managing Partner of HR

Philip Washington, Former CEO

Bernie Shargall, CEO & Executive Committee

Problems

1.

Hierarchical Structure 2.

Lack of Leadership 3.

Recruitment and Retention 4.

Improving employee morale and commitment 5.

Routine Administrative Problems

Problem 1 - Hierarchical Structure

• Centralized on Top Management • Little support from employees • Focused on consulting, thinking and planning, rather than doing

Solutions

• Decentralize!

• Distribute work/Give lower employees more power • Wide range of skill sets needed • Implement practices to enhance employee skill sets

Pros & Cons

• Pros: • Decentralizing will take pressure off Robinson • Distributing work will give employees more responsibility • Emphasis of team work • Greater support from employees • Robinson may form better relationship with line managers and employees • Create a self-managing workforce • Convince Shargall and executives of importance of HR Department • Cons • Long-term commitment • Needed commitment from both Robinson and Executive committee

Problem 2 - Lack of Leadership

• Robinson & Shargall lack leadership that Washington possessed • Shargall from outside firm • Robinson’s lack of leadership and initiative • HR Ambassador Program is not effective

Solutions

• Create leadership model • Specify goals and expected contributions from executives and managers • Create a democratic leadership style • Collaboration & Information Sharing • Create an open and honest work force within the organization • Information Sharing • Involve employees and managers

Pros & Cons

• Pros: • Leadership model increases executive and manager motivation • Leadership model supplies a starting point • Information sharing emphasizes trust, transparency, and collaboration • Cons: • Employees could leak information if it is shared with them

Problem 3 - Recruiting and Retention

• Recruiting • Loss of attractiveness to talent candidates • No well-defined regulation on recruiting • Retention • Loss of two senior managers • Current employees do not think Loft is a better place to work anymore.

• Employees do not trust HR

Solutions

• Outsource recruiting function (short-term) • Focus on long-term goals first • Robinson’s profession • Pick-up later • Retention: • Conducting series of survey. • Outsource the retention paperwork with detail requirement

Pros & Cons

• Pro’s • Achieve the career transaction of Robinson • Put more focus on strategic goal • More professional emphasis on attracting talent • Gain efficiency on simplify HR roles to achieve flexibility • Hold back two functions • Con’s • Selection of strategic partner • Strategy, position, personnel, not clear defined • Less control in process • • New employees not familiar with Loft’s culture Increasing on employees’ transaction cost • (Increasing turnover)

Problem 4 - Improving employee morale and commitment

• Employees are not familiar with the HR people • Employees can’t see the future of the company • The rumors by two left senior manager

Solutions

• Career development (RBV) • Training / presentation • Weekly conference • Memo form • Talent management program • Behavior perspective & cybernetic system in theory • Focusing on idea sharing • Information & technical support in the work • Encourage self motivation

Pros & Cons

Pro’s • Motivate employees • Attention transferring • Giving the future • Growth with Loft Con’s • Time consuming • Insufficient investment

Problem 5 - Routine Administrative Problems

• Mishandled discrimination charge • Year-end executive bonus check error • Problems occurred before Robinson was hired

Solutions

• Outsource routine administrative work to 3 rd party • Common outsourced functions: • Payroll • 401k plans • Health and welfare benefits • Background checking • Defined benefit plans

Pros

• Reduces time • Reduces resources spent • Concentrate on strategic activities • HR not blamed if problem

Cons

• Paying extra money for functions HR can handle • Hard time convincing Shargall

Conclusion

• Hierarchical structure • Decentralize • Empower employees • Range of skill sets • Implement practices • Lack of leadership • Create leadership model • Democratic leadership • Information sharing

Conclusion

• Recruiting and retention • Recruitment: Outsourcing recruitment for the short term • Retention: Conducting surveys • Improving employee morale and commitment • Career development • Talent management program • Routine administrative problems • Outsource routine administrative work

Questions?