Leadership by Human Resources

1. Leadership by Human Resources Organizational Roles and Choices

2. Top 5 Barriers to HR Leadership • HR and its employees lack business and strategic orientation • HR executives not respected by top management • HR holding on too much to the HR of the past- paper-pushing roles • HR unwilling to take the lead in facilitating revolutionary change • HR chases too many fads/ quick fixes

3. Module Objectives • HR Responsibilities and Objectives • HR Roles • Management Choices/ Constraints on HR Decision-making • Delivery of HR Roles • Human Resource Effectiveness: Contrasting Approaches

4. Think about companies that you or someone you know have worked for or you’ve read about. What is it about these employers HR practices that might lead you or experts to rate them as being particularly effective? Employees are valued Innovative HR policies (invested in employees) Strategic HR orientation: Goal of HR was to make the business successful What is Effective Management of Human Resources?

5. Why is Effectively Managing HR Critical to Organizational Success? • Labor costs are a major organizational operating expense • People affect productivity • Having a skilled, motivated, and adaptable work force or (“people embodied organizational skills”), is directly related to firm profitability.

6. Introduction: Traditional (Old) HR Paradigm • Think “People” First - The Conscience • Less sensitive to Business Impact • Leverage Human Assets to Maximize Employee Satisfaction and Contribution • Think “Bottom Line” First • Less Alert to People Impact • Leverage Financial and Capital Assets to Generate Profits, and “Delight” Customers Source: Adapted from Conner, J. And Wirtenberg, J. “Managing the Transformation of Human Resources Work”

7. New HR Paradigm Business Unit Managers Human Resource Managers Shared Accountability for Business Results and Managing People • Integrate Business and People Strategic Planning • Joint Responsibility to share effective human resource management learning • Leverage financial, technological, and human assets to create value, “Delight” customers and maximize employee satisfaction Source: Adapted from Conner, J. And Wirtenberg, J. “Managing the Transformation of Human Resources Work”

8. Purpose of the Human Resource Function: to design systems and policies to manage human assets in a way that enhances the individual and collective contribution of people to the short and long term success of the enterprise. HR Policy Clusters Strategy & Organization Talent Identification and Deployment Human Capital Development Reward Management Employee Relations and Voice HR Responsibilities and Objectives

9. HR is at a Critical Historical Juncture

10. Most firms have not completely switched to new HR paradigm HR strategies are important because they are malleable and affect human capital Key to differentiate between management of HR function Vs. HR management While orgs. cannot easily change firm assets, they can change how they manage people. HR practices can operate in 2 ways: increase value lower human capital investments HR Under Pressure

11. HR Strategy Execution • Ensure critical HR strategies and processes are aligned with critical to the business • Provide insights that lead to developing/strengthening competitive advantage • Work with line management to develop and implement practices

12. Model for Understanding HR Strategy: Context, Roles, & Constraints

13. Transaction Routine HR Day to day operational processes Administrative Expert Translation Day to day people communication Promote employee commitment Facilitate open lines of communication and feedback Transition Execute firm strategy Integrate & Develop future HR practices and processes Transformation Massive organizational change role New organizational cultures, structures, work design to support major strategic business change HR Roles: The Four Ts

14. Transitional Transactional Transformational Translational Roles Transfer Value PROCESSES PEOPLE Transmit Business Goals & Objectives

15. Management HR Decision-Making Constraints/Choices • Unilateral • Full management discretion or decision-making rights • Negotiated • Jointly decided between employees and management or labor and management • Imposed • Out of firm’s control (e.g. legislation, critical customer demands)

16. Basic Organizational Criteria for Effective HR Delivery • Roles and Choices Occur in All Policy Domains • Integrated Line-Staff Relationship& Delivery • Top Management Commitment to HR • Employee Relations Climate of Openness and Respect • Ability to balance tensions in HR decision-making • Competent HR Department

17. HR Competencies • Masters of Global Operating Skills • Business Experts • Technology Leveragers • Expert Communicators • Employee Champions • Change Managers

18. Strategic Emphasis Ford 2000 shift from mostly transactional activities toward transformational emphasis (reengineering mix of activities and level of management and employee involvement Shared Services Service centers: the consolidation or combining of transaction services in an organization; (Example 1-800 HR) Transformation-Based/Centers of Excellence: Non-routine & Non-administrative HR activities that help transform a firm Outsourcing HR Role Delivery: Current Trends

19. Service Center vs. Center of Expertise

20. HR Effectiveness: Contrasting Ways to Transfer Value Stakeholder/Multiple Constituency: • Perceptions of customers • HR should be Customer service-oriented • Utility: Translate economic utility of HR practices through financial indices • People and HR practices generate costs that should be managed • Strategic: Practices impact a business’s ability to accomplish strategic goals • HR practices should match business strategies

21. High Performance Model HR Leader HR Manager HR Specialist Success Factors Source: Adapted from Conner, J. And Wirtenberg, J. “Managing the Transformation of Human Resources Work”

22. Application: Turnover of Key Staff Positions by Year

23. Application: Contracts Not Renewed Due to Employee Turnover

24. Application: Answer Worksheet Separation Costs

25. Application: Answer Worksheet Replacement Costs

26. Application: Answer Worksheet Training Costs

27. AT&T

28. AT&T: New Practices