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

d
e an s
loye
on
Emp Relati
or
Lab

Human
Resource
1
Management

Safety and
Health

Hu
m
De an
ve Re
lop so
m urc
en e
t

Com
pens
ation

g
n
i
f
af
t
S

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

Manager,
Compensation

Benefits Analyst

Vice President,
Industrial
Relations

Manager,
Training and
Development
Executive:
Generalist:
Specialist:

Manager,
Staffing

Traditional Human Resource Functions

in a Large Firm
President
and CEO
Vice President,
Marketing

Manager,
Training and
Development

Vice President,
Operations

Manager,
Compensation

Vice President,
Finance

Manager,
Staffing

Vice President,
Human
Resources

Manager,
Safety and
Health

Manager,
Labor
Relations

A Possible Evolving HR
Organization Example
President
and CEO
Vice
President,
Operations

Vice
President,
Strategic
Human
Resources

Training &
Development
(Outsourced)

Vice
President,
Finance

Compensation
(Shared Service
Centers)

Vice
President,
Marketing

Staffing (more
involvement of Line
Managers, etc)

Director
of Safety
and
Health

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

SPHR

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

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 underrewarded. 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