Mgmt 383

1. Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008

2. SOBA and UM Policy: No Food or Drink in the Classroom

3. 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/

4. Are You Getting Ready? • INDUSTRY: ManufacturingTITLE:  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:

5. 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.

6. Four Types of Assets in Organizations • Physical (Plant & Equipment) • Financial (Fiscal) • Intangible (Information) • Human

7. 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.).

8. 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.)

9. 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)

10. 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

11. 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

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

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

14. 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.

15. 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

16. 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.

17. 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.

18. Concerns in Small Businesses • Small businesses account annually for 60-80% of new job growth and >50% of total U.S. employment. • Primary concerns • Shortage of qualified workers • Increasing benefits costs • Increasing taxes • Regulatory compliance.

19. Three Organizational Roles of HRM • Administrative Role [50% (59%)] • Operational Role [30% (35%)] • Strategic Role [20% (6%)]

20. 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

21. 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).

22. 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.

23. 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..

24. 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.

25. 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.

26. 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.

27. 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.

28. 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

29. 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%

30. 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, halfof 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.

31. 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]

32. 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

33. 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.

34. 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.

35. 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

36. 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.

37. 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

38. 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

39. 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

40. 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?

41. 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?

42. 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.

43. 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.

44. 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

45. 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).

46. 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.

47. 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