EVOLUTION OF HR MGMT

1. EVOLUTION OF HR MGMT • SCIENTIFIC MANAGEMENT • Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth • INDUSTRIAL/ORGL PSYCHOLOGY • Munsterberg, Scott, Cattell • HUMAN RELATIONS MOVEMENT • Hawthorne Studies, Mayo, Follett, Lewin • GROWTH OF GOVERNMENTAL REGULATIONS • Wages (1930s), Unionization (1940s), Employment (1960s) • PROFESSIONALIZATION OF HR MANAGEMENT • Professional HR Societies & HRCI (Certification Institute)

2. HUMAN CAPITAL MANAGEMENTMANAGING & MEASURING WORKER PRODUCTIVITY What is the effect of HR on the bottom line of the firm? Is there a significant relationship between compensation and worker turnover in our organization? Does worker training and development enhance retention? …customer satisfaction? …repeat sales levels? What value would you attribute to each worker? How much is each employee “worth?” Are all employees alike and thus should be managed similarly, or should each employee be developed and managed uniquely? What brings out the “best” in each worker? What makes them maximally productive and valuable to the organization?

3. Human Resource Management • Utilization of individuals to achieve organizational objectives • All managers at every level must concern themselves with human resource management • Five functions

4. Human Resource Management Functions 1 Staffing Human Resource Management Human Resource Development Employee and Labor Relations Compensation Safety and Health

5. FUNCTIONAL AREAS WITHIN HR • EMPLOYMENT / STAFFING • RECRUITMENT • SELECTION • TRAINING AND DEVELOPMENT • APPRAISAL • EDUCATION AND DEVELOPMENT • COMPENSATION • SALARIES, WAGES AND BENEFITS • INCENTIVE PLANS • EMPLOYEE RELATIONS • GRIEVANCE RESOLUTION • UNION RELATIONS • HR PLANNING AND RESEARCH • FORECASTING • JOB ANALYSIS • ATTITUDE SURVEYS • VALIDATION STUDIES

6. Employment / Staffing • Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives • Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization • Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time . • Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization • Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

7. Training and Development • Training - Designed to provide learners with knowledge and skills needed for their present jobs • Development - Involves learning that goes beyond today's job; it has more long-term focus • Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed • Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals • Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization • Performance appraisal - Formal system of review and evaluation of individual or team task performance

8. Compensation • Direct Financial Compensation -Pay that person receives in form of wages, salaries, bonuses, and commissions. • Indirect Financial Compensation (Benefits) -All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. • Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

9. Safety and Health • Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization. • Safety - Involves protecting employees from injuries caused by work-related accidents • Health - Refers to employees' freedom from illness and their general physical and mental well being

10. Employee and Labor Relations • Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005. • Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them • Is the function of HR to control workers, or to help them and act as their advocate? • Resolving personnel grievances and disagreements fairly in both union and union-free environments

11. Human Resource Research • Human resource research pervadesall HR functional areas. • Forecasting and Planning • Job Analysis • Attitude Surveys • Validation Studies • Compensation Surveys

12. HR’s Changing Role: Questions That Are Being Asked • Can some HR tasks be performed more efficiently by line managers or outside vendors? • Can some HR tasks be centralized or eliminated altogether? • Can technology perform tasks that were previously done by HR personnel? • Many HR departments continue to get smaller

13. Who Performs Human Resource Management Tasks? • Human Resource Managers • Line Managers and Supervisors • HR Shared Service Centers • Outsourcing • Professional Employer Organizations (Employee Leasing)

14. Human Resource Executives, Generalists, and Specialists Vice President, Human Resources Vice President, Industrial Relations Manager, Training and Development Manager, Compensation Manager, Staffing Executive: Generalist: Specialist: Benefits Analyst

15. Traditional Human Resource Functions in a Large Firm President and CEO Vice President, Marketing Vice President, Operations Vice President, Finance Vice President, Human Resources Manager, Training and Development Manager, Compensation Manager, Staffing Manager, Safety and Health Manager, Labor Relations

16. A Possible Evolving HR Organization Example President and CEO Vice President, Operations Vice President, Strategic Human Resources Vice President, Finance Vice President, Marketing Director of Safety and Health Training & Development (Outsourced) Compensation (Shared Service Centers) Staffing (more involvement of Line Managers, etc)

17. AMA SARATOGA STUDYHow are HR Departments Changing? • ONLY 30% STILL DO ALL STANDARD IN-HOUSE HR FUNCTIONS • 32% HAVE ESTABLISHED AN IN-HOUSE “UNIVERSITY” • ONLY 27% HAVE RETAINED THE TRAINING AREA “AS IS” • BENEFITS HAVE BEEN OUTSOURCED OR MOVED TO SHARED SERVICE CENTERS • STAFFING IS BEING DELEGATED BACK TO LINE MANAGERS • RATIO OF EMPLOYEES SERVED PER HR EMPLOYEE HAS INCREASED

18. A RECENT SURVEY OF TOP HRM CONCERNS (Helman) • 84% COMPENSATION • 80% SUCCESSION PLANNING • 68% MANAGEMENT STAFFING • 40% HR STRATEGIC PLANNING • 40% EMPLOYEE COMMUNICATIONS • 34% WORKFORCE MANAGEMENT • 28% BENEFITS • 26% PERFORMANCE EVALUATION • 24% EMPLOYEE RELATIONS • 20% PERSONNEL POLICIES • 18% LABOR RELATIONS • 16% TRAINING AND DEVELOPMENT • 4% EEO/AFFIRMATIVE ACTION • 9% OTHER

19. CURRENT TRENDS IN HR • EMPHASIS ON STRATEGIC PLANNING & SUCCESSION • VP of HR is a Strategic Manager, Management Succession Planning • EMPHASIS ON COST-RELATED ISSUES / COST CONTROL • Global Competition, Outsourcing and Downsizing • NEW SPECIALTIES EMERGING IN HR • HR Planning, International HR, Employee Assistance Programs • GROWTH OF GOVERNMENTAL REGULATIONS • Wages (1930s), Unionization (1940s), Employment (1960s) • PROFESSIONALIZATION OF HR MANAGEMENT • Professional HR Societies & HRCI (Certification Institute) • THE INTERNET REVOLUTION • Electronic Recruiting, Records Management, and HRIS

20. PROFESSIONAL HR ORGANIZATIONS • SOCIETY FOR HUMAN RESOURCE MANAGEMENT • (SHRM) 185,000+ members • JNLS: HR Magazine, HR News • AMERICAN SOCIETY FOR TRAINING & DEVELOPMENT • (ASTD) 60,000+ members • JNL: Training & Development Journal • WORLD-AT-WORK (formerly the American Compensation Association) • (WAW) 23,000+ members • JNL: WAW/ACA Journal (formerly Compensation Review) • INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION • (IPMA) 6500+ members • JNL: Public Personnel Management • NATIONAL HUMAN RESOURCE ASSOCIATION (formerly the Intl Assn for Personnel Women) • (NHRA) 1500+ members • JNL: Human Resources: Jnl of the International Assn for Personnel Women

21. HUMAN RESOURCE CERTIFICATION INSTITUTE (HRCI) • PROFESSIONAL IN HUMAN RESOURCES (PHR) • Need 4+ yrs HR experience (full-time, exempt position) or • 2+ yrs HR experience w/ appropriate bachelor’s degree or • 1+ yr HR experience w/ appropriate master’s degree • Students may sit for PHR exam; and have 5 years to get experience • Must pass comprehensive PHR examination (need a score of 500+) • Certified for 3 years / Re-certification required every 3 years • SENIOR PROFESSIONAL IN HUMAN RESOURCES (SPHR) • Need 8+ yrs HR experience (full-time, exempt position) or • 6+ yrs HR experience w/ appropriate bachelor’s degree or • 5+ yrs HR experience w/ appropriate master’s degree • SPHR candidates also need 3+ yrs experience at policy-making level • Must pass comprehensive SPHR examination (need a score of 500+) • Certified for 3 years/ Re-certification required every 3 years

22. HR CERTIFICATION EXAMFor Professional and Senior Professional HR Designation • TOPICS PHR SPHR • Strategic Management 12% 26% • Workforce Planning & Employment 26% 16% • HR Development 15% 13% • Compensation & Benefits 20% 16% • Employee & Labor Relations 21% 24% • Health, Safety and Security 6% 5% 100% 100% Must correctly answer at least 75% of the questions in each of the six areas to earn a 500 score (the minimum passing score).

23. HR CERTIFICATION EXAMFor Global Professional in Human Resources Designation • TOPICS GPHR • Strategic HR Management 22% • Organizational Effectiveness & Employee Development 14% • Global Staffing 10% • International Assignment Management 28% • Global Compensation & Benefits 16% • International Employee Relations & Regulations 10% 100% Must correctly answer at least 75% of the questions in each of the six areas to earn a 500 score (the minimum passing score).

24. EXTERNAL ENVIRONMENTAL FACTORS THAT IMPACT HRM • GOVERNMENT REGULATIONS • Federal, State and Local • LABOR FORCE DEMOGRAPHICS • Women with Children • Workforce Diversity and Immigrants • Older Workers • People with Disabilities • Young Persons with Limited Skills • TECHNOLOGICAL ADVANCEMENT • Automation, Obsolescence and Renewal • GLOBAL COMPETITION AND CUSTOMER EXPECTATIONS • ECONOMIC CONDITIONS AND CYCLES • OTHER PUBLICS • Unions, Communities, Shareholders, etc.

25. Cyberwork • Possibility of never-ending workday • BlackBerrys, cell phones, text messaging, and e-mail create endless possibilities for communication • Some workers believe their employer wants them available 24/7

26. THE IMPACT OF THE ORGANIZATIONAL ENVIRONMENT ON HRM • CORPORATE MISSION, PHILOSOPHY & CULTURE • Who are we and what are we trying to accomplish? • CORPORATE STRATEGIES AND OBJECTIVES • Grand and Competitive Strategies • ORGANIZATION POLICIES AND PROCEDURES • Bureaucratic vs Organic? Is Discretion Encouraged? • TASKS, POSITIONS & WORK GROUPS • The Organizational “Chart” • LEADERSHIP STYLES

27. POWER & INFLUENCE MODEL(French & Raven) • LEGITIMATE POWER • Authority to Command, based on the Position Held • REWARD POWER • Positive, based on Desired Outcomes • COERCIVE POWER • Threats. Punishment • EXPERT POWER • Advice, Knowledge, Information • REFERENT POWER • Charisma, Social Liking, Identification

28. DISCOVERIES ON POWER-BASED LEADERSHIP (YUKL 89) • COERCIVE POWER • Generates Resistance (Minimal Cooperation) • LEGITIMATE & REWARD POWER • Generates Compliance (You Get Satisfactory Behaviors) • EXPERT & REFERENT POWER • Generates Commitment (Workers Go the 2nd Mile)

29. LIFE-CYCLE (MATURITY) THEORY(HERSEY & BLANCHARD 77) • LEADER BEHAVIORS NEED TO VARY, DEPENDING ON THE MATURITY OF THE INDIVIDUAL. • DIRECTIVE • Gives clear direction and instruction to immature employees • COACHING • Expands two-way communication; helps build confidence/motivation • SUPPORTING • Employee now feels confident; active two-way communication still needed for shared decisions • DELEGATING • Responsibility for planning and decision making given to highly mature employees

30. PATH-GOAL THEORY OF LEADERSHIP(House & Mitchell 74) • SITUATIONAL FACTORS • CHARACTERISTICS OF EMPLOYEES • Perceived Ability, N ACH, Locus of Control, etc. • CHARACTERISTICS OF THE ENVIRONMENT • Task Structure, Organizational Controls, Work Group, etc. • LEADERSHIP STYLES • DIRECTIVE • SUPPORTIVE • ACHIEVMENT ORIENTED • PARTICIPATIVE

31. IMPACT OF PERSONAL DIFFERENCES ON HRM INDIVIDUAL SKILLS & ABILITIES PERSONALITY EXPECTATIONS AND ASPIRATIONS MOTIVATION Equity Theory Expectancy Theory Reinforcement Theory

32. EQUITY THEORY (ADAMS 65) • I compare my work outcomes (Om) with my perception of what others’ outcomes are (Oo). I also compare my work inputs (Im) with what I think others are contributing to their jobs (Io). • If the relative ratio of my outcomes/inputs (Om/Im) is similar to the perceived outcomes/inputs (Oo/Io) of others at work, EQUITY exists and the organization is perceived to be “fair.” (Om/Im) = (Oo/Io) I feel fairly treated (content)

33. POSITIVE & NEGATIVE INEQUITY • If I believe my outcomes/inputs ratio is more generous than the outcome/input ratio of others, I feel guilty and over-rewarded. This is POSITIVE INEQUITY, and this perception may or may not motivate one to action. (Om/Im) > (Oo/Io) I feel over-rewarded (guilty) • If I think my outcomes/inputs ratio is less than the outcome/input ratio of others, I feel frustrated and under-rewarded. This is NEGATIVE INEQUITY, and this perception usually motivates one to act to resolve this “unfair” situation. (Om/Im) < (Oo/Io) I feel under-rewarded (frustrated)

34. LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED • CHANGE MY OUTCOMES • CHANGE MY INPUTS • RECONSIDER THE PERCEIVED RATIOS • CHANGE “OTHER’S” INPUTS OR OUTCOMES • CHANGE COMPARISON “OTHER” • LEAVE THE ORGANIZATION OR WITHDRAW

35. EXPECTANCY-VALENCE THEORYTHREE PERCEPTIONS EXPECTANCY (E P) If I put forth effort (E), what’s the probability that I can achieve the performance objective (P)? INSTRUMENTALITY (P  O) If I achieve the performance objective (P), what’s the probability that a specific outcome (O) or reward will be given to me? VALENCE (V) How much value (positive or negative) do I attach to receiving this outcome? MOTIVATION (EFFORT) = (E  P) x sum of [(P  O)i(V)i]

36. REINFORCEMENT THEORY(SKINNER 72) ASSUMPTIONS: The consequences of past actions will influence our future actions We repeat behaviors which lead to rewards and are satisfying We reduce behaviors which go unrewarded or lead to punishment Thus, tie valued rewards to desired behaviors in the workplace TYPES OF REINFORCEMENT POSITIVE AVOIDANCE (NEGATIVE) EXTINCTION PUNISHMENT

37. SCHEDULES OF REINFORCEMENT CONTINUOUS (every time) INTERMITTENT (not every time) Fixed-Ratio Fixed-Interval Variable-Ratio Variable-Interval