Brief Overview of Historical Brief Overview of Historical Events that Affected Human Events that Affected Human

ResourcesResources

Reasons Why Things Are As they Are Today

Historical Turning Points in HRHistorical Turning Points in HR

• 1793 Samuel Slater – father of Industrial Revolution in US

• 1886 American Federation of Labor (AFL) – 1st union in US

• 1890 Sherman Antitrust Act - balance power of mgmt & labor

• 1907 Immigration Act of 1907 – slowed labor growth

• 1909 Frederick Winslow Taylor – scientific mgmt

• 1911 Triangle Shirt Waist Company fire – attention to empl. safety

• 1913 Henry Ford – 5$ day; systematic tng; tenure-based outcomes

• 1914-1918 World War I – systems approach to empl. testing; DOT

• 1926 Railway Labor Act – 1st govt policy to encourage unions,• 1930s Early HR Research

• Hawthorne Experiments – (1927-1932)• Maslow’s Need Hierarchy – (1939-1943)• McGragor’s Theory X & Y – (1960)• Herzberg’s Motivators and Satisfiers – (1960)• George Odiorne’s Management By Objectives – (1965)

HistoricalHistorical HRHR (cont) (cont)

• 1932 Norris-LaGuardia Act – “yellow-dog” contracts were unenforceable

• 1935 Social Security Act – beginning of social welfare• 1935 National Labor Relations Act – prohibits employer unfair practice, NLRB

• 1938 Fair Labor Standards Act – minimum wage, exempt/nonexempt, overtime

• 1941-1945 World War II – women in workforce, health care introduced

• 1946 Numerous labor strikes • 1947 Taft-Hartley Act – unfair labor practices for unions/outlaws closed shop

• 1954 Brown vs. Topeka Board of Education – integrates schools

• 1964 Civil Right Act of 1964 – creates EEOC

• 1965 Equal Employment Opportunity Commission (EEOC) – enf EEO

• 1970 Occupational Safety and Health Act (OSHA) – ERISA (1974), others

• 1977 Human Resources Planning Society (now SHRM)• 1979 Office of Personnel Management – personnel function more visibility

Historical HR (con’t)Historical HR (con’t)

• 1980s Stock option developed – for high level execs• 1981 Professional Air Traffic Controllers (PATCO) strike – decline of unions• 1985 Sperry Rand & Burroughs merge to form Unisys

• First of mergers and acquisitions• Corporate downsizings

• 1987 PeopleSoft Inc – first HR management software

• 1980s (late) Global competition increases• 1991 Clarence Thomas-Anita Hill hearings - sexual harassment

• 1994 Monster Board – online recruiting

• 1999 BP Amoco and Exult – $600M outsourcing arrangement (1st for HR)

• 2001 World Trade Center attack – security on everyone’s job

• 2001 Fraud at Enron – govt reform - SOX

• 2006 IBM permanently stop defined benefit pensions – decline of benefits• 2008 Government provides TARP funds to bankrupt businesses

Historical View of HR RolesHistorical View of HR Roles

ServiceAdvisory

Control

• Assistsorganization,its employees,and the public.

• Assists linemanagers withHR functions.

Implements:• Policies.• Procedures.• Rules.

Current HR RolesCurrent HR Roles

Strategic

Administrative

Operational

Global, long-term perspectiveFocuses on building the right culture and organization

Day-to-day perspectiveFocuses on running the organization

Focuses on compliance issues and record keeping

Strategic Human Resource ManagementStrategic Human Resource Management

The Diagnostic ModelThe Diagnostic Model

ASSESSENVIRONMENT

SETOBJECTIVES

APPLY HUMAN

RESOURCEACTIVITIES

EVALUATERESULTS

F E E D B A C K

EXTERNALCONDITIONS• World Conditions• Economic Conditions• Government Regulations• Unions• TechnologyORGANIZATIONALCONDITIONS• Nature of the Organization• Nature of the WorkEMPLOYEECONDITIONS• Abilities (KSA)• Motivation• Interests

EFFICIENCY• Organization• Employee

EQUITY• Organization• Employee

PLANNING

STAFFING

DEVELOPMENT

EMPLOYEE/UNIONRELATIONS

COMPENSATION

EFFICIENCY

EQUITY

THE DIAGNOSTIC MODELGeorge MilkovichJohn Boudreau

External Environmental External Environmental ScanningScanning

• Interprets data related to external opportunities and threats.

• Prepares HR to participate in strategic planning.

– Employment– Demographics– Political

Looks at seven key factors.Economic

International

Technological

Social

EconomicEconomicFactorsFactors

Interestrates

Interestrates

InflationInflation DisposableIncome

DisposableIncome

CPICPI

GDPGDP

Economicfactors

Economicfactors

International FactorsInternational Factors

• European Union

• Wage comparisons

• Trade agreements

• Globalization

Technological and Social FactorsTechnological and Social Factors

• Technological factors– Advances in technology

– Technological skills

– Process changes

• Social factors– Worker skills

– Corporate responsibility

– Population shifts

Trends in Technology:Trends in Technology:Access to Knowledge and InformationAccess to Knowledge and Information

• Knowledge management– Enhances the ability to retain intellectual capital.

• Web portals– Provide an interface to resources needed on the job.

• Internet– Provides information, enhances productivity, and

improves communication.

Trends in Technology: Trends in Technology: Increased Training AccessIncreased Training Access

• Streaming desktop video– Delivers training to the desktop.

• Provides access to E-learning– Provides access to training at home or work,

– 24 hours a day/7 days a week.

• Virtual-reality technology– Paper-based training modules are replaced with

ability to “see” training tasks or environment.

Trends in Technology:Trends in Technology:Changes in How Business Is DoneChanges in How Business Is Done

• Business-to-business integration– B-to-B e-commerce will become the dominant

business model.

• E-procurement– Online ordering processes streamline transactions.

• Electronic signatures– Carry the same weight as a pen-and-ink signature.

• Application service providers– Host and manage an organization's software

applications on the Internet.

Trends in Technology:Trends in Technology:Widening of the Digital DivideWidening of the Digital Divide

• Refers to the gap between people who have computer access and those who do not.

• HR is instrumental in analyzing skill and technology levels in employees.

Employment FactorsEmployment Factors

• Immigration• Migration• Occupational and

industry shifts• Recruitment• Unions• Unemployment trends

Turnover trendsRelocation

Demographic FactorsDemographic Factors

Generationaldifferences

Nontraditional labor force

Unskilledlabor

WomenAge

Political FactorsPolitical Factors

• New President – (1st Afro-American)

• New legislation– Assess organization’s liability.

– Maintain compliance.

– Integrate with other laws.

– Train supervisors.

• Partisan climate– Analyze party priorities and

platforms.Butter

Guns

Internal Environmental Internal Environmental ScanningScanning

• Nature of the Work– What Business are we in?

– How can we benchmark ourselves?

• Nature of the Organization– Are we optimally structured?

– Do we have the right mix (amount) of resources?

• The Employee– Do they have the right knowledge, skills, abilities,

attitudes (KSAAs)

– Are they properly trained?

HR’s Role in Strategic PlanningHR’s Role in Strategic Planning

• Serve the organization’s needs.• Learn about the organization’s industry.• Serve as a consultant.• Gather facts and data.• Build partnerships.

Phase 1: Strategy FormulationPhase 1: Strategy Formulation

Must understand:What business the company is in.When to change the mission and alter strategy.How and when to communicate the mission.

Strategy Formulation

• Develop mission and vision statements.

• Define organizational values.

Phase 2: Strategy DevelopmentPhase 2: Strategy Development

S = Internal strengths

W = Internal weaknesses

O = External opportunities

T = External threats

Strategy Development

• Conduct a SWOT analysis.

• Establish long-term objectives (three to five years).

• Identify corporate, unit, and functional strategies.

Diagnostic Model

Phase 3: Strategy ImplementationPhase 3: Strategy Implementation

Resources needed toachieve objectives:• Financial• Physical• Human• Technological

Strategy Implementation

• Establish short-term objectives (six months to a year).

• Develop action plans.• Allocate resources.• Motivate employees.

Phase 4: Strategy EvaluationPhase 4: Strategy Evaluation

• Assess strategies by noting changes in:– Internal strengths and

weaknesses.– External opportunities

and threats.

• Take corrective action when changes have occurred.

Strategy Evaluation

• Review strategies at planned intervals.

• Measure performance.• Take corrective action.

Functions of ManagementFunctions of ManagementHenri FayolHenri Fayol

Planning Studying the future, forecasting, setting goals, and planning actions.

Organizing Designing a structure to meet goals and assigning resources.

Coordinating Uniting all organizational activities and giving resources to accomplish goals.

Directing Engaging in leadership and motivational activities that ensure effective results.

Controlling Ensuring that the plan is followed.

Which of the following activities best prepares HR to participate in the strategic

planning process?

A. Evaluating a new HRIS system

B. Restructuring HR’s recruiting system

C. Training line managers on interviewing techniques

D. Reviewing the company’s key financial data

Answer: D

Which of the following typically appeals to Generation X workers?

A. A project that requires collaboration and rewards team performance

B. Time off to balance the needs of aging parents and children

C. Supervisors who can create an effective team environment for them

D. Structured work environments that reward individual creativity

Answer: A

How can HR meet staffing needs in a small, privately held company affected by swiftly

developing technologies?

A. Recruit highly skilled workers who are flexible and adaptable.

B. Promote entrepreneurial initiatives to help avoid unionization.

C. Expand the global recruitment of technical workers.

D. Train workers to be better prepared mentally and professionally for uncertainty.

Answer: A