Transcript Mgmt 383 - University of Mississippi

Mgmt 383
Chapter 1
The Changing Nature of HRM
Fall 2008
SOBA and UM Policy:
No Food or Drink
in the Classroom
Course Syllabus
• Due to budget constraints, I will no longer
be handing out course syllabi. You may
download the syllabus from my WebPage:
http://faculty.bus.olemiss.edu/brobinson/
Are You Getting Ready?
• INDUSTRY: Manufacturing
TITLE: HR Manager
LOCATION: Gulfport, MS
COMPENSATION: $60-90K flex, Benefits
RELOCATION: Paid
SUMMARY: A world leader in providing
engineering thermoplastics materials solutions in
more than 60 countries worldwide, we help redefine
the way OEMs [original equipment manufacturers]
design -- from concept to reality. The candidate will
be responsible for all Human Resources (HR)
activities. Provide client support for all functions of
120 employee-based world-class plastics
manufacturing facility. The candidate is required to:
Are You Getting Ready?
• Provide overall HR responsibility for exempt/non-exempt teams
including staffing, training, leadership development/coaching, career
planning, performance management, compensation, salary planning,
policy interpretation/development, communications, benefits, early
ID program, leadership programs, cultural diversity, affirmative
action, integrity policy enforcement/application & employee
satisfaction.
• Lead all staffing, employee development, compliance/business
leadership processes as integral member of the site leadership staff.
• Implement strategic HR initiatives to create strong culture of leaders
& high-performing teams.
• Lead change initiatives to drive organizational effectiveness, talent
development for operations, both technology & commercial.
• Participate in Company-wide HR initiatives including leadership
development.
• Responsible for community/public affairs including community
donations, appearance & all media contacts.
Four Types of Assets in
Organizations
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Physical (Plant & Equipment)
Financial (Fiscal)
Intangible (Information)
Human
Management of Human Capital in
Organizations
• Human Capital (Organizational) - The sum of
capabilities, knowledge, skills, life experience, and
motivation of an organizational workforce.
• It is the KSA that a business needs in order to
accomplish its goals.
• It is also known as intellectual capital.
• Human Capital produces demonstrable value for
an organization, especially in labor intensive
industries (hospitality, retail, service, e.g.).
Core Competency
• Core Competency - a unique capability that
creates high value for customers and
differentiates a firm from its competitors.
• Possessing a unique technology (product or
manufacturing).
• Possessing a workforce with unique capabilities
(skills competitors cannot access, more
motivated employees, etc.)
The HR Activities
• Strategic HRM (a.k.a., HRP)
• Equal Employment Opportunity (a.k.a.,
Regulatory Compliance)
• Staffing (a.k.a., Recruiting & Selection)
• Talent Management (a.k.a. Training &
Development, HR Development )
• Total Rewards (a.k.a., Compensation & Benefits)
• Risk Management & Worker Protection (a.k.a.,
Health, Safety, & Security)
• Employee & Labor Relations (a.k.a., Industrial
Relations)
Strategic HRM
• HR Planning (HRP)
• Anticipating/forecasting future HR
supply and demand.
• HR Measurement
• Providing for measures of HR
effectiveness
• HR Technology (HRMS/HRIS)
• HR Retention
Equal Employment Opportunity
• Regulatory compliance with employment
laws.
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Civil Rights Act of 1964, Title VII
ADEA
ADA
EPA (Equal Pay Act)
FLSA
• Diversity
• Affirmative action
Staffing
• Job analysis.
• Job descriptions.
• Job specifications.
• Performance standards.
• Recruiting.
• Selection.
Talent Management
• Employee orientation.
• HR Training.
• Training needs analysis.
• Job skill training.
• HR Development.
• Career planning.
• Performance management (assessing
employee performance).
Compensation & Benefits
• Compensation
• Wage & Salary Administration
• Performance v. entitlement pay systems.
• Merit-based v. seniority based pay systems.
• Incentives
• Individual
• Group
• Organizational
• Benefits
• Cost v. employee retention.
Risk Management & Worker
Protection
• Health – reducing work-related
illnesses.
• Employee assistance programs (EAP).
• Wellness programs.
• Safety – reducing work-related
injuries.
• Security –providing a secure work
environment.
• Disaster and Recovery Planning
Employee & Labor Relations
• Employee rights and responsibilities in
the workplace.
• Privacy concerns.
• Developing HR policies, employment
practices and work rules.
• IR in organized (unionized) work
places, contract administration.
Size and the HR Job
• HR’s job varies based on the size of the
organization.
• HR Generalist are typically found in small to
medium size businesses.
• HR Specialists do not usually appear until
large HR departments can be supported, usually
large companies.
Concerns in Small Businesses
• Small businesses account annually for 6080% of new job growth and >50% of total
U.S. employment.
• Primary concerns
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Shortage of qualified workers
Increasing benefits costs
Increasing taxes
Regulatory compliance.
Three Organizational Roles of
HRM
• Administrative Role [50% (59%)]
• Operational Role [30% (35%)]
• Strategic Role [20% (6%)]
The Administrative Role of
HRM
• Administrative Role – focus is on clerical
administration and records keeping.
• Day-to-day administering benefit programs.
• Preparing EEO reports.
• Conducting new employee orientations.
• Two major changes are projected to reduce
the time allocated to administrative tasks. :
• IT improvements
• Outsourcing
The Operational Role of HRM
• Operational Role – identifying and
implementing needed policies related to
implementation of strategic plans.
• Cooperation with operational managers is
crucial.
• Developing EEO compliance policies.
• Recruiting and selecting candidates for
current openings.
• Employee advocate role (grievance
resolution, litigation avoidnce).
The Strategic Role of HRM
• Strategic Role – Helping top management to
define strategy and effectively use of human
capital to gain a competitive advantage.
• HR Planning.
• Monitoring evolving legal issues.
• Community workforce development.
• Organizational restructuring.
• Evaluating acquisitions and mergers.
• Planning compensation strategies.
Contributing at the Table
• Examples of HR contributions:
• Evaluating the viability of mergers &
acquisitions (KSA, Staffing needs, structural
changes, etc.)
• Conducting HRP
• Identify attrition of critical KSA
• Planning for workforce expansion or contraction.
• Leading site selection for new facilities or
transferring operations internationally based on
workforce needs..
Contributing at the Table
• Examples of HR contributions:
• Instituting a HRMS/HRIS to reduce
administrative time and expenses (including
staff reductions).
• Working with top management to develop
compensation strategies to motivate employees.
• Sales incentives.
• New product/service incentives.
• Profit sharing or gainsharing plans.
Challenges Facing HRM
• Globalization of Business
• International outsourcing
• Global competition
• Manufacturing to service economy (IT, Health care,
retail services, financial services)
• Labor costs are increasingly important
• Labor markets are international
• Global expansion
• HSS issues related to security and
terrorism.
• Off-shoring – contracting out goods or
services to unaffiliated companies in
another country (licensing, e.g.).
• In-shoring – foreign business shifting their
business activates to the U.S.
• Outsourcing - contracting out goods or
services to unaffiliated companies either at
home or overseas.
Global Forces Impacting HR
Management
• HR is a transnational process in MNCs.
• Expatriates
• Host country nationals
• Third country nationals
• Continued outsourcing of jobs to the
developing world, especially India, PRC,
Philippines, Mexico, etc.
Economic & Technological
Changes
• Occupational Shifts
• U.S has shifted from manufacturing
economy to a service economy (>80% of
GDP is from services)
• Heaavy growth predicted in healthcare
Economic & Technological
Changes
• Occupational shifts Projected growth in jobs
thru 2014 [BLS]:
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Home health aides
Medical assistants
Computer software engineers
Personal and home care aides
Postsecondary teachers
Accountants and auditors
Janitors and cleaners
Retail salespersons
General and operations managers
56.0%
52.1%
48.4%
41.0%
32.2%
22.4%
18.5%
17.3%
17.0%
Workforce Availability and
Quality Issues
• Increased demand for certain skills and knowledge,
less demand for unskilled labor
• Education & Training
• Over 50% of workforce will need training.
• Increasing illiteracy (About one in 20 adults is not literate in
English).
• Poor math/computer skills.
• Public education system is failing to produce job-related KSA.
• In 2005, half of all Cal. State freshmen need remedial
courses.
• Over 57% of University of Illinois-Chicago freshmen took
remedial math.
• We do poorly in international educational comparisons.
Workforce Availability and
Quality Issues
• Education & Training
• Standardized test scores have decline to the point that some are normed
annually.
• Foreign students account for nearly 40% of graduate students in science
and engineering [Michael Mandel, Business Week Nov. 20, 2006]
• In 2005, only 61% of high school seniors performed at or above the Basic
level, and 23 percent performed at or above Proficient. (National
Assessment of Education Progress)
• HR responses:
• Emphasis on accurately assessing education skills of current and potential
employees.
• More in-house literacy programs.
• More training at all levels in the organization.
• Hiring inpatriates [H-1B visas]
Economic & Technological
Changes
• Growth in the Contingent Workforce
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Temporaries
Independent contractors
Part-time
Leased employees
• Reasons for the increased demand for Contingent
workers:
• Paid less
• Fewer benefits
• Reduced exposure to litigation
Economic & Technological
Changes
• Technological Shifts & the Internet
• Technology enables more people to work from
home.
• Technology means that more people (i.e., managers)
are more “available.”
• Technology means that more employees are “on
call.”
• There is a rise of virtual employees, those who do not
work on site.
• Computers also mean appropriate use policies.
• Technology enhance HR functions through HRIS
and OCI.
Workforce Demographics &
Diversity
• More representation of ethnic minorities in
workforce
• Multilingual workplaces.
• Educational & skill deficiencies.
• Underrepresentation in sciences and professions.
• More individuals are calling themselves
multi-racial (“two or more races”) indicating
that the “melting pot” is very much alive.
Workforce Demographics &
Diversity
• Women are increasing in their participation in
the workforce.
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Demand for more flexible work hours.
Careers may have gaps.
Job sharing child care concerns.
Flexible leave.
• More dual career couples (60% of all married
couples).
• People are marrying later (27/24).
• Same-sex arrangements
Workforce Demographics &
Diversity
• Balancing Family & Work
• Two groups of female managers [Felice
Schwartz, Harvard Business Review, 1989] an idea not popular in feminist circles
• Career-Primary - career first, family
second.
• Career-and-Family - gravitate to middle
management jobs, accept less pay to devote
more time to families. May account for
much of the pay inequity statistics.
Organizational Cost Pressures and
Restructuring
• Re-engineering
• Identifying & eliminating marginal activities.
• Downsizing (a.k.a., Right-sizing) - Intentional
reduction of the workforce.
• May result from closing facilities.
• Look out for Organizational Anemia.
• Outsourcing (subcontracting)
• Merging with other companies (consider the airline
and computer industries).
• Outplacing workers
HR Technology
• Human Resource Management System
(HRMS) –an integrated system provided
information used in HR decision-making.
• Enable more accurate and time work flow
analysis.
• Reducing data collection and analysis.
• Reduction of “paperwork.”
• A.k.a., HRIS
HR Technology
• Typical uses of HR Technology:
• Bulletin boards
• Databases access by employees (intra- and
extranet access to information)
• Employee self-service (benefit enrollment, e.g.)
• Extended linkage
• Access to venders and HR resources
• On-line training
• On-line recruiting
Ethics and HR Management
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Ethics - what ought to be done.
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More than just legal compliance (there is
right, there is wrong and there is the law).
Ethical codes must answer two questions:
(1) Does the behavior conform with applicable
laws, regulations, and government mandates?
(2) Does the behavior conform to both company
standards and professional standards of
behavior?
Ethics and HR Management
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Examples of ethical dilemmas:
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Should employees be forced to quit smoking.
Should employees be fired for objecting to
alternative life styles on religious grounds?
Should coworkers be informed if an employee
has a serious communicable disease.
Should employees be informed that they are
under video surveillance while at work?
Ethics and HR Management
• Four elements of effective ethics programs:
• A written code of ethics/standards of conduct.
• Training on ethical behavior at all levels in the
organization (executive, management, rankand-file).
• Provides a a means of employees to obtain
advice on ethical situations.
• Provides a system for confidential reporting of
questionable or unethical behavior.
Sarbanes-Oxley
• Sarbanes-Oxley Act of 2002 – requires
publicly-trade companies to follow certain
accounting controls to reduce the likelihood
of fraudulent or unethical behavior.
• A response to a number of major corporate and
accounting scandals (i.e., Enron & WorldCom).
• Compensation records have come under
increased scrutiny (attendance).
• Enhance financial disclosure.
HR Competencies
• Five Sets of HR Competencies:
• Strategic Contribution – focus on long-term
organizational success.
• Business Knowledge
• HR Delivery
• HR Technology – HRMS/HRIS
• Personal Credibility
HR as a Career
• HR Generalist - performs a variety of HR
activities (i.e., T&D, recruiting, regulatory
compliance, staffing, etc.).
• HR Specialist - in-depth expertise in a
limited HR area (i.e, Employee Relations
Specialist, Industrial Relations Specialist,
Benefits Administrator, Classification
Specialist).
Professional HR Certification
• PHR Professional in Human Resources, a
minimum of two years practical HR
experience and passing the HRCI’s PHR
examination.
• SPHR Senior Professional in Human
Resources, a minimum of six years practical
experience and passing the HRCI’s PHR
examination.
Other Certifications
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CCP - Certified Compensation Professional 1
CBP - Certified Benefits Professional 1
CEBS - Certified Employee Benefits Specialist 2
CPT - Certified Performance Technologist
CSP - Certified Safety Professional
OHST - Occupational Health & Safety Technologist
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1 American
Compensation Association
2 International Foundation of Employee Benefits