WHY DOESN’T THIS HR

DEPARTMENT GET ANY RESPECT?

ANALYSIS PRESENTATION

Team H
Andrew Compton
Justin Holden
Natalie Stovicek
Chao-Ching (Jimmy) Lien
Paul Wroten
Questions
• What do YOU think about the case?

• Can you relate to it?

• Who has issues or stories about their HR Department

• Have you gotten a bad check?
• Have you filed a complaint that was ignored?
Short Clip

Bad HR
Summary of Loft
• Luke Robinson is recruited by new CEO to solve
several company issues.
• HR’s purpose was administrative under CEO,
Washington
• When Washington left, the company suddenly lost the
talent of attracting and retaining talented employees.
• Luke Robinson, an experienced top HR consultant, is
recruited by new CEO, Bernie Shargall, to solve the
issues.
• He takes the position as career challenge, however, he
is running into trouble.
Summary of Incidents at
Loft
• Company had never before • Spent time with executives,
paid much attention to HR
• Lost 4 key employees in
under two years
• Conflicting opinions of Loft
• Executives don’t pay
attention to Robinson’s
plans to fix things
• Payroll mishap
• Mishandling of
discrimination investigation
Robinson’s Attempts
managers, brokers,
administrative staff, HR
staff, and external contacts
• HR Ambassador program
• Regular Meetings with
business-unit heads
• Replaced ineffective HR
staff
• Plan to educate employees
about role of HR
Character Analysis
• List of Characters

• 1. Luke Robinson (Managing Partner of HR)

• 2. Philip Washington (Former CEO)

• 3. Bernie Shargall (Current CEO) + Executive Committee

Luke Robinson, Managing Partner of HR
Philip Washington, Former CEO
Bernie Shargall, CEO & Executive Committee
Problems
1. Hierarchical Structure

2. Lack of Leadership

3. Recruitment and Retention

4. Improving employee morale and commitment

5. Routine Administrative Problems

Problem 1 - Hierarchical Structure
• Centralized on Top Management

• Little support from employees

• Focused on consulting, thinking and planning, rather than doing

Solutions
• Decentralize!

• Distribute work/Give lower employees more power

• Wide range of skill sets needed

• Implement practices to enhance employee skill sets

Pros & Cons
• Pros:
• Decentralizing will take pressure off Robinson
• Distributing work will give employees more responsibility
• Emphasis of team work
• Greater support from employees
• Robinson may form better relationship with line managers and
employees
• Create a self-managing workforce
• Convince Shargall and executives of importance of HR Department

• Cons
• Long-term commitment
• Needed commitment from both Robinson and Executive committee
Problem 2 - Lack of Leadership

• Robinson & Shargall lack leadership that Washington

possessed

• Shargall from outside firm

• Robinson’s lack of leadership and initiative

• HR Ambassador Program is not effective

Solutions
• Create leadership model
• Specify goals and expected contributions from executives and
managers

• Create a democratic leadership style

• Collaboration & Information Sharing
• Create an open and honest work force within the organization

• Information Sharing
• Involve employees and managers
Pros & Cons
• Pros:
• Leadership model increases executive and manager motivation

• Leadership model supplies a starting point

• Information sharing emphasizes trust, transparency, and

collaboration

• Cons:
• Employees could leak information if it is shared with them
Problem 3 - Recruiting and Retention
• Recruiting
• Loss of attractiveness to talent candidates

• No well-defined regulation on recruiting

• Retention
• Loss of two senior managers

• Current employees do not think Loft is a better place to work

anymore.

• Employees do not trust HR

Solutions
• Outsource recruiting function (short-term)
• Focus on long-term goals first

• Robinson’s profession

• Pick-up later

• Retention:
• Conducting series of survey.

• Outsource the retention paperwork with detail requirement

Pros & Cons
• Pro’s
• Achieve the career
transaction of Robinson
• Put more focus on strategic
goal
• More professional emphasis
on attracting talent
• Gain efficiency on simplify HR
roles to achieve flexibility
• Hold back two functions
• Con’s
• Selection of strategic partner
• Strategy, position, personnel,
not clear defined
• Less control in process
• New employees not familiar
with Loft’s culture
• Increasing on employees’
transaction cost
• (Increasing turnover)
Problem 4 - Improving employee morale and
commitment

• Employees are not familiar with the HR people

• Employees can’t see the future of the company

• The rumors by two left senior manager

Solutions
• Career development (RBV)
• Training / presentation
• Weekly conference
• Memo form

• Talent management program

• Behavior perspective & cybernetic system in theory
• Focusing on idea sharing
• Information & technical support in the work
• Encourage self motivation
Pros & Cons
Pro’s Con’s
• Motivate employees • Time consuming

• Attention transferring • Insufficient investment

• Giving the future

• Growth with Loft

Problem 5 - Routine Administrative Problems
• Mishandled discrimination charge

• Year-end executive bonus check error

• Problems occurred before Robinson was hired

Solutions

• Outsource routine administrative work to 3rd party

• Common outsourced functions:

• Payroll
• 401k plans
• Health and welfare benefits
• Background checking
• Defined benefit plans
Pros Cons
• Reduces time • Paying extra money for
• Reduces resources functions HR can
spent handle
• Concentrate on • Hard time convincing
strategic activities Shargall
• HR not blamed if
problem
Conclusion
• Hierarchical structure
• Decentralize
• Empower employees
• Range of skill sets
• Implement practices

• Lack of leadership
• Create leadership model
• Democratic leadership
• Information sharing
Conclusion
• Recruiting and retention
• Recruitment: Outsourcing recruitment for the short term
• Retention: Conducting surveys

• Improving employee morale and commitment

• Career development
• Talent management program

• Routine administrative problems

• Outsource routine administrative work
Questions?