Human Resources Management

Transcription

1 Human Resources 1 Management Human Resources Management The management function devoted to acquiring, training, appraising, and compensating employees! (hiring-training-retaining).. And well, firing.

2 Strategic Human 2 Resources Management The linking of the human resource function with the company s strategies to accomplish that strategy. Culture Change

3 The HR crisis 3 For the past several decades, massive efforts have been put forth to improve human resources. Numerous research, numerous how-tobooks, numerous programs Yet, where are the payoffs? Not in finding right talent for work Not in worker productivity Not in the absence of strikes Not in amicable labor relations Not in public confidence Big hat, no cattle! (Skinner, 1981)

4 Big Hat, No Cattle 4 In a Dallas (Texas) airport, the author saw many tall, well dressed, and impressive looking men wearing large Stetson (brand name) cowboy hats. As he walked past one such hat-wearer, he noticed two middle-aged men standing nearby. They eyed the same man, looked him up and down, and then said to each other, Big hat, no cattle.

5 But why? 5 Capturing the loyalty of a larger number of employees is difficult. The goals of most corporations are long-range usually profit and growth while employees usually focus on the short range wages, salaries, work conditions, fair treatment, promotion, etc. Connecting these sets of goals is not easy. Employees often resent forces that manage or control them, such as big business, directors, the industrial establishment, the boss, the boss s boss, etc.

6 Multiple domains within HR 6 Personnel Management involves the recruiting, selecting, training, compensating, and developing of employees Labor Relations applies to labor laws, public policy, economics, demographics, collective bargaining, contracts, and grievances Industrial Engineering concentrates on designing jobs that fit technology and human capabilities to control performance with industrial standards Human Relations Individual behavior focuses on individual psychology, leadership, responsibility, and the subconscious Organizational development goes further to focus on the need for people to reason together about common difficulties

7 Time is another enemy 7 Acquiring and developing the right employees for the business as it changes strategy, technology, products, and requires long-range planning than any other corporate endeavor. Few companies have resolved this issue. For example, companies can often replace technology in 3 to 5 years. But, how long does it take to change the attitudes of 1,000 employees? Further, managers seldom stay put long enough to see their human resources efforts pay off and executive compensation packages rarely reward managers for investments in human resources management policies and activities.

8 And the result is.. 8 HR is viewed narrowly as personnel management: a housekeeping function. HR is mistaken for use of common sense Individual and organizational development is left to chance Control becomes the guiding philosophy Companies focus on improving things rather than on those who will do so

9 Making HR both humane and resourceful 9 Set a longer time horizon (i.e. seven years rather than 1, 2, or 3) for their human resources planning and operation Having a longer time horizon requires that companies develop a long term HR philosophy, objectives, and a strategy Diffuse HR philosophy through company culture (Let s take a look at Google culture) Big hat & cattle!

10 What did we learn so far 10 Distinction between HR and strategic HR The HR crisis- big hat, not cattle Underlying reasons for the HR crisis- size, time horizon, multiple domains Different HR domains Way forward- diffuse HR philosophy in company culture, develop a culture of caring

11 Strategic HR initiatives that pay- off 11 Invest in leadership development- develop a future leaders cohort Develop a culture of collaboration across divisions/disciplines Embrace diversity rise beyond convenience Leverage diversity- rise beyond symbolic/token and optical diversity ( Emphasize and reward emotional intelligence Avoid negativity before it poisons the culture- listen, provide outlets Emphasize and reinforce core values (core values could include, for example, customers first, employees first, quality first, safety first, equity first, etc.)

12 Strategic HR initiatives that pay- off 12 Clear expectations with flexibility Standardized/customized performance parameters Give employees reasons to be proud of- make them your ambassadors Work-life balance flexi-hours, tele-work etc.

13 Closing comments 13 Strategic HR is potentially expensive many question the value of expending such efforts when there are enough people seeking jobs! But research suggests that innovation, sales, profitability, and competitiveness significantly improve with well-crafted strategic HR policies The top 3% of salespeople produce up to 250% more than average; the top 20% produce 120% more Paper plants managed by top managers have 94% higher profits than other paper plants Shareholder returns for companies that seek out and foster high performing talent average 22% more than industry means

14 References 14 Skinner, W. (1980). Big hat, no cattle: managing human resources. Harvard Business Review, 59(5),