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

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

• Spent time with executives, 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• Motivate employees

• Attention transferring

• Giving the future

• Growth with Loft

Con’s• Time consuming

• Insufficient investment

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• Reduces resources spent

• Concentrate on strategic activities

• HR not blamed if problem

• Paying extra money for functions HR can handle

• Hard time convincing Shargall

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?