Mgmt 383

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Mgmt 383

• Chapter 1
• The Changing Nature of HRM
• Fall 2008

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SOBA and UM Policy No Food or Drink in the
Classroom
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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/

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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

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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.

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Four Types of Assets in Organizations

• Physical (Plant Equipment)
• Financial (Fiscal)
• Intangible (Information)
• Human

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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.).

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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.)

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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)

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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

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Equal Employment Opportunity

• Regulatory compliance with employment laws.
• Civil Rights Act of 1964, Title VII
• ADEA
• ADA
• EPA (Equal Pay Act)
• FLSA
• Diversity
• Affirmative action

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Staffing

• Job analysis.
• Job descriptions.
• Job specifications.
• Performance standards.
• Recruiting.
• Selection.

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Talent Management

• Employee orientation.
• HR Training.
• Training needs analysis.
• Job skill training.
• HR Development.
• Career planning.
• Performance management (assessing employee
  performance).

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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.

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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

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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.

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Size and the HR Job

• HRs 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.

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Concerns in Small Businesses

• Small businesses account annually for 60-80 of
  new job growth and gt50 of total U.S. employment.
• Primary concerns
• Shortage of qualified workers
• Increasing benefits costs
• Increasing taxes
• Regulatory compliance.

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Three Organizational Roles of HRM

• Administrative Role 50 (59)
• Operational Role 30 (35)
• Strategic Role 20 (6)

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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

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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).

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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.

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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..

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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.

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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.

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• 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.

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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.

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Economic Technological Changes

• Occupational Shifts
• U.S has shifted from manufacturing economy to a
  service economy (gt80 of GDP is from services)
• Heaavy growth predicted in healthcare

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Economic Technological Changes

• Occupational shifts Projected growth in jobs thru
  2014 BLS
• Home health aides 56.0
• Medical assistants 52.1
• Computer software engineers 48.4
• Personal and home care aides 41.0
• Postsecondary teachers 32.2
• Accountants and auditors 22.4
• Janitors and cleaners 18.5
• Retail salespersons 17.3
• General and operations managers 17.0

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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.

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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

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Economic Technological Changes

• Growth in the Contingent Workforce
• Temporaries
• Independent contractors
• Part-time
• Leased employees
• Reasons for the increased demand for Contingent
  workers
• Paid less
• Fewer benefits
• Reduced exposure to litigation

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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.

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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.

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Workforce Demographics Diversity

• Women are increasing in their participation in
  the workforce.
• 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

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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.

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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

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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

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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

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Ethics and HR Management

• Ethics - what ought to be done.
• More than just legal compliance (there is right,
  there is wrong and there is the law).
• Ethical codes must answer two questions
• Does the behavior conform with applicable laws,
  regulations, and government mandates?
• Does the behavior conform to both company
  standards and professional standards of behavior?

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Ethics and HR Management

• Examples of ethical dilemmas
• 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?

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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,
  rank-and-file).
• Provides a a means of employees to obtain advice
  on ethical situations.
• Provides a system for confidential reporting of
  questionable or unethical behavior.

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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.

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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

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HR as a Career

• HR Generalist - performs a variety of HR
  activities (i.e., TD, 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).

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Professional HR Certification

• PHR Professional in Human Resources, a minimum
  of two years practical HR experience and passing
  the HRCIs PHR examination.
• SPHR Senior Professional in Human Resources, a
  minimum of six years practical experience and
  passing the HRCIs PHR examination.

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Other Certifications

• 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
• 1 American Compensation Association
• 2 International Foundation of Employee Benefits