HREvolution Moving from Tactical to Strategic

1. HREvolutionMoving from Tactical to Strategic Barbara Mitchell Cornelia Gamlem

2. You have to know where you’ve been to know where you’re going David McCullough, Author and Historian

3. Beginning of our Profession • Late 1800s. • Employment decisions were at discretion of foreman. • General disregard for health & safety and child labor practices. • High immigration rates and low skill levels meant an abundant supply of cheap labor • Unionization attempts were ineffective.

4. Beginning of our Profession • By 1900. • Only 6 percent of private-sector workforce was unionized. • Employment agents and clerks were responsible for selecting the daily help while few hiring halls/hiring offices existed. • 6 out of 10 families lived near poverty—most families lived on $500 a year. • Few women who worked earned $52 a year!

5. Beginning of our Profession • Major strike at National Cash Register at turn of 20th Century. • John H. Patterson, president, creates a new department he called “personnel” to handle: • Grievances • Discharges • Safety • New laws impacting employees

6. HR Trivia Question • What year was the U.S. Department of Labor established? • 1913, ten years after Congress created the Department of commerce & Labor which included the Bureau of Labor Statistics, Bureau of Immigration and Naturalization, and the Children's Bureau

7. Beginning of our Profession • Between 1915-20, the number of large US employers with personnel departments rose from 5% to 25%. • The End of WWI and the Depression brought a decline to this fledging profession • Opened the door for labor to look to legislation and not personnel management for solutions to unemployment. • In the 1930s Norris-LaGuardia Act, NLRA passed and set in motion resurgence of personnel administration.

8. HR Trivia In what year was the FLSA signed into law? 1938 and it applied to industries whose combined employment represented one third of the labor force. What was the minimum wage? 25 cents per hour; What was the maximum number of hours in the workweek? 44 hours

9. After World War II Personnel Administration seen as critical Personnel Directors began communicating about their needs ASPA started in 1948 with 67 members

10. Personnel Administration in the 50’s • In 1954, Peter Drucker coined the term “Human Resources” by saying there were three broad managerial functions: • Managing the business • Managing other managers • Managing workers and work which he defined as “the worker is the human resource”

11. The 60’s Feminist movement Equal Pay Act of 1963 Civil Rights Act of 1964 Social Security Act of 1965 establishes Medicare and Medicaid By 1969, 40% of US labor force were women ASPA had 10 employees and 5,000 members

12. The 70’s OSHA goes into effect in 1971 The Employment Retirement Income Security Act (ERISA) is enacted in 1974 The Pregnancy Discrimination Act is enacted in 1978 ASPA membership reaches 28,471

13. The 80’s Immigration Reform and Control Act—1986 Consolidated Omnibus Budget Reconciliation Act (COBRA)—1986 Worker Adjustment and Retraining Notification Act (WARN)—1988 ASPA becomes SHRM--1989

14. The 90’s Americans with Disabilities Act—1990 Civil Rights Act—1991 Family and Medical Leave Act—1993 SHRM celebrates 50th anniversary SHRM membership 131,571

15. The 2000’s Global Professional in HR (GPHR)—2004 SHRM membership reaches 200,000—2005 Enron, Worldcom, Arthur Andersen scandals Sarbanes-Oxley—2002 SHRM membership at 230,000

16. What Hasn’t Changed… SHRM’s dedication to the HR Professional. SHRM providing members tools to succeed and grow as HR professionals. SHRM spreading the word about the vital role HR plays in the success of business.

17. Moving Forward Growing shortage of skilled workers Generations at work Increase of contingent employees Virtual employees the norm Globalization

18. Growing Shortage of Skilled Employees Declining birthrate in industrial nations Aging population Previously valuable skills no longer required in our information driven enconomy

19. Rise of Millennial and Internet Generations People born between 1980 and 2000 will soon make up largest segment of US population These employees have a totally different approach to work than previous generations

20. Generations • Veterans, Boomers, Xers, Millennials and NOW: • Generation Z or I or Internet Generation • Born after 1991 • Never lived in a world without the internet • Never lived in a world without the threat of terrorism

21. Internet Generation More environmentally conscious than their co-workers Multi-tasking is a common as breathing Not brand loyal—get product reviews from Facebook and Twitter Privacy has less meaning Email is too slow

22. Bridging Generational Gaps Millennials need for work/life balance is aligned with Baby Boomers needs Boomers, Veterans, and Millennials share a desire to give back HR must be aware we can’t meet everyone’s needs so do what is best for your organization and your culture

23. Generations • Boomers—what value to they bring to their organization is a key driver • Xers—the end result is a key driver • Millennials—being part of a team is a key driver • Internets—being proud of their organization’s reputation is a key driver

24. Trivia Question When did the internet become widely used commercially? What drives Internet Generation employees crazy about their co-workers? Who said he invented the internet?

25. Increase of Contingent Workers Economy has forced businesses to be hesitant to hire full-time workers or to even fill positions with employees Currently, 10 million contingent workers (more than the number of union members) 22 million US companies don’t have any payroll

26. Increase of Virtual Employees 42% of US organizations provide some sort of flexible working options Issue is how to provide the connections working in the same place used to provide Work is a “state of mind”—not a “place to be”

27. Globalization Madeleine Albright, former Secretary of State, was asked at a book signing, “How do you stop globalization?” Her response was “You don’t.”

28. Globalization Successful organizations have embraced the concept of “moving the work—not the worker” Need awareness of vast cultural differences as how work gets done Must be aware of major differences in laws and regulations

29. HR Trivia When was the Employee Retirement Income Security Act (ERISA) into law? 1974 Bonus question: What was the name of the company featured on an NBC broadcast Pensions: The Broken Promise?

30. History of Communication 1455 to Present – News books to Newspapers (to current modes of communication) ERISA mandates certain communications. How are you communicating with your employees about benefits?

31. Benefit Communications Jellyvision Benefits Counselor, an interactive online tool that walks employees, new hires and their family members through the process of selecting and enrolling in benefits. Decision support tools based on animated stories to educate employees on benefits. Best Buy Corp’s on-line Watercooler is used to communicate worldwide during benefits enrollment.

32. Technology & Communication Cloud computing, mobile devices, social media and workforce analytics are seriously impacting how we work Employees expect their employers to offer similar capabilities in mobile and social media as they have access to outside work HR Magazine October 2011

33. HR Trivia How much did Henry Ford pay his assembly workers in 1914?

34. Henry Ford & Steve Jobs Industrialist • Outsourcer

35. Henry Ford & Steve Jobs Manufactured in the USA Assembled in China Foxcomm

36. Economic Factors Occupy Wall Street NLRB adopts final rules that will significantly expedite the processing of election petitions filed by unions.

37. HR Trivia Where did the Triangle Shirtwaist Company fire occur? Bonus question: In what year? Bonus question: Who are these notable, historic figures: Robert Wagner (not the actor)? Frances Perkins?

38. Worker’s Claim Right to Rant on Facebook • NLRB Guidelines regarding social media • Employee Protected behavior: discussing with each other pay or workplace conditions, or speaking on behalf of others about (Protected concerted activity • Name-calling that doesn’t involve physical or verbal threats • Unprotected behavior: griping solely by and on behalf of oneself with no evidence of group action to improve conditions. • Physical or verbal threats • Unlawful employer behavior: Restricting worker’s rights to discuss online with co-workers wages and working conditions • Firing an employee engaging in protected concerted behavior. Wall Street Journal, Friday December 2, 2011

39. Embracing change Preparing for the future How can HR professionals embrace these forces and challenge themselves, individually and collectively, and adapt to the future in creative and strategic ways?

40. HR Today • What do we call it? • HR • Human Capital Management • Talent Management • People Operations (Google) • Other??

41. HR Today • What does HR need to do to add value? • Encourage organizations to invest in talent • Lead using metrics and data • Commit to innovation • Ed Lawler, Director of the Center for Effective Organizations and Professor at USC

42. HR Value Added • Ask yourself these questions? • Can I participate with understanding discussions around your organization’s business objectives? • Do I constantly look for ways to improve productivity through better labor utilization or other measures?

43. HR Value Added Do I anticipate challenges and resolve potential problems? Can I ask the right questions to help your organization meet its mission? Do I lead change? Do I communicate effectively? Do I lead the organization in an ethical fashion?

44. Case Study--Google • Google People Operations Vision and Mission: • Make people metrics universally useful and accessible • Enable all People Operations processes to be analysis driven • Use analytics to attract, retain and increase productivity • Be a laboratory for breakthrough ideas

45. Case Study--Zappos • We decided that we’re a service company that just happens to sell shoes • We interview people for culture fit. We want people who are passionate about what Zappos is about—service. I don’t care if they’re passionate about shoes. • Tony Hsieh, CEO

46. Case Study--Zappos • How Zappos lives its values: • New hires are interviewed for culture fit • Every new hire goes through five weeks of new-hire training—including two weeks in a call center • They believe “that customer service shouldn’t be just a department—it should be the whole company.”

47. Sustainable Management • More agile and adaptable • More outward looking • More effective at addressing the demands of multiple stakeholders Ed Lawler and Christopher Worley Management Reset, Organizing for Sustainable Effectiveness

48. Sustainable Management • Four Core issues: • Robust strategies are used that are capable of changing to address short-term opportunities and threats. • Structure, work & management processes facilitate innovation & execution, collaboration & efficiency.

49. Sustainable Management • Four Core issues: • The right talent is attracted, retained, developed and motivated. Rewards & talent management systems are tied to organizational strategy. • Behavior is guided by an approach that creates leaders throughout the organization and a culture that thrives on change, innovation and sustainable performance.

50. Leadership Characteristics • Possess integrity and honesty in relations with others • Engage in visionary strategic planning • Create innovative and imaginative business solutions • Work with ambiguity and are able to resolve resistance • Articulate areas needing specific changes and provide value-added solutions