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)

HUMAN CAPITAL MANAGEMENT

MANAGING & 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?

Human Resource Management

Utilization of individuals to achieve organizational objectives All managers at every level must concern themselves with human resource management Five functions

Human Resource Management Functions

Human Resource 1 Management

Safety and Health

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

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

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

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.

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

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 firms 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

Human Resource Research

Human resource research pervades all HR functional areas. Forecasting and Planning Job Analysis Attitude Surveys Validation Studies Compensation Surveys

HRs 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

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

Human Resource Executives, Generalists, and Specialists

Vice President, Human Resources Vice President, Industrial Relations

Manager, Compensation

Manager, Training and Development

Manager, Staffing

Benefits Analyst

Executive: Generalist: Specialist:

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

A Possible Evolving HR Organization Example

President and CEO
Vice President, Strategic Human Resources Director of Safety and Health

Vice President, Operations

Vice President, Finance

Vice President, Marketing

Training & Development (Outsourced)

Compensation (Shared Service Centers)

Staffing (more involvement of Line Managers, etc)

AMA SARATOGA STUDY

How 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

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

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

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

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 bachelors degree or 1+ yr HR experience w/ appropriate masters 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 bachelors degree or 5+ yrs HR experience w/ appropriate masters 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

HR CERTIFICATION EXAM
For Professional and Senior Professional HR Designation

TOPICS
Strategic Management Workforce Planning & Employment HR Development Compensation & Benefits Employee & Labor Relations Health, Safety and Security

PHR
12% 26% 15% 20% 21% 6% 100%

SPHR
26% 16% 13% 16% 24% 5% 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).

HR CERTIFICATION EXAM
For Global Professional in Human Resources Designation

TOPICS
Strategic HR Management Organizational Effectiveness & Employee Development Global Staffing International Assignment Management Global Compensation & Benefits International Employee Relations & Regulations

GPHR
22% 14% 10% 28% 16% 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).

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.

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

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

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

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)

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

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

IMPACT OF PERSONAL DIFFERENCES ON HRM

INDIVIDUAL SKILLS & ABILITIES
PERSONALITY

EXPECTATIONS AND ASPIRATIONS

MOTIVATION
Equity Theory Expectancy Theory Reinforcement Theory

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)

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)

LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED

CHANGE MY OUTCOMES

CHANGE MY INPUTS
RECONSIDER THE PERCEIVED RATIOS

CHANGE OTHERS INPUTS OR OUTCOMES

CHANGE COMPARISON OTHER

LEAVE THE ORGANIZATION OR WITHDRAW

EXPECTANCY-VALENCE THEORY
THREE PERCEPTIONS

EXPECTANCY (E P) If I put forth effort (E), whats the probability that I can achieve the performance objective (P)? INSTRUMENTALITY (P O) If I achieve the performance objective (P), whats 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]

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

SCHEDULES OF REINFORCEMENT

CONTINUOUS (every time)

INTERMITTENT (not every time) Fixed-Ratio Fixed-Interval Variable-Ratio Variable-Interval