Historical View of HR Roles

ServiceAdvisory

Control

• Assistsorganization,its employees,and the public.

• Assists linemanagers withHR functions.

Implements:• Policies.• Procedures.• Rules.

Historical Turning Points in HR

• 1793 Samuel Slater• 1886 American Federation of Labor (AFL)• 1890 Sherman Antitrust Act• 1907 Immigration Act of 1907• 1909 Frederick Winslow Taylor• 1911 Triangle Shirt Waist Company fire• 1913 Henry Ford• 1914-1918 World War I• 1926 Railway Labor Act• 1930s Early HR Research

• Hawthorne Experiments • Maslow’s Need Hierarchy• McGragor’s Theory X & Y• Herzberg’s Motivators and Satisfiers

Historical HR (cont)

• 1932 Norris-LaGuardia Act• 1935 Social Security Act• 1935 National Labor Relations Act • 1938 Fair Labor Standards Act • 1941-1945 World War II• 1946 Numerous labor strikes• 1947 Taft-Hartley Act• 1954 Brown vs. Board of Education• 1964 Civil Right Act of 1964• 1965 Equal Employment Opportunity Commission (EEOC)• 1970 Occupational Safety and Health Act (OSHA)• 1977 Human Resources Planning Society (now SHRM)• 1979 Office of Personnel Management

Historical HR (con’t)

• 1980s Stock option developed• 1981 Professional Air Traffic Controllers (PATCO) strike• 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• 1991 Clarence Thomas-Anita Hill hearings (sexual harassment)• 1994 Monster Board – online recruiting• 1999 BP Amoco and Exult – $600M HR outsourcing arrangement• 2001 World Trade Center attack• 2001 Fraud at Enron• 2006 IBM permanently stop defined benefit pensions

Current 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

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

Environmental Scanning

• 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

EconomicFactors

Interestrates

Interestrates

InflationInflation DisposableIncome

DisposableIncome

CPICPI

GDPGDP

Economicfactors

Economicfactors

International Factors

• European Union

• Wage comparisons

• Trade agreements

• Globalization

Technological and Social Factors

• Technological factors– Advances in technology

– Technological skills

– Process changes

• Social factors– Worker skills

– Corporate responsibility

– Population shifts

Trends in Technology: Increased 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:Access 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:Changes 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:Widening 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 Factors

• Immigration• Migration• Occupational and

industry shifts• Recruitment• Unions• Unemployment trends

Turnover trendsRelocation

Demographic Factors

Generationaldifferences

Nontraditional labor force

Unskilledlabor

WomenAge

Political Factors

• New legislation– Assess organization’s liability.

– Maintain compliance.

– Integrate with other laws.

– Train supervisors.

• Partisan climate– Analyze party priorities and

platforms.

EconomicFactors

Interestrates

Interestrates

InflationInflation DisposableIncome

DisposableIncome

CPICPI

GDPGDP

Economicfactors

Economicfactors

International Factors

• European Union

• Wage comparisons

• Trade agreements

• Globalization

HR’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 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 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.

Phase 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 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.

Phase 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 Management

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