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 andrew

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? andrew

Short Clip Bad HR http://www.funnyordie.com/videos/ca58a4515e/bad-hr-episode-2-special-needs?playlist=312339

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. andrew

Summary of Incidents at Loft Robinson’s Attempts 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 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 Justin

Luke Robinson, Managing Partner of HR Successful HR Director at Powell Group, shows initiative to take on challenges, shows a lack of drive and motivation to continue after failures, sees the value of HR and has knowledge of HR management, lacks confidence and leadership, fails to communicate effectively with higher authority figures, neurotic personality.

Philip Washington, Former CEO Charismatic leader, single-handedly performed strategic HR functions, business-savvy executive who gave Loft Securities a high reputation.

Bernie Shargall, CEO & Executive Committee Shargall recruited outside the firm, lacks the charisma and leadership Philip Washington brought to Loft, shows the desire to improve Loft’s recruiting of talent, lacks knowledge of strategic HR functions, Shargall and committee do not demonstrate active-listening abilities.

Problems Hierarchical Structure Lack of Leadership Recruitment and Retention Improving employee morale and commitment Routine Administrative Problems Justin

Problem 1 - Hierarchical Structure Centralized on Top Management Little support from employees Focused on consulting, thinking and planning, rather than doing natalie

Solutions Decentralize! Distribute work/Give lower employees more power Wide range of skill sets needed Implement practices to enhance employee skill sets natalie

Pros & Cons Pros: Cons 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 natalie

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 natalie

Solutions Create leadership model Create a democratic leadership style 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 natalie

Problem 3 - Recruiting and Retention 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 jimmy

Solutions Outsource recruiting function (short-term) Retention: 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 Con’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) jimmy

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 jimmy

Solutions Career development (RBV) Talent management program 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 jimmy

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 paul

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 Paul

Conclusion Hierarchical structure Lack of leadership Decentralize Empower employees Range of skill sets Implement practices Lack of leadership Create leadership model Democratic leadership Information sharing Managerial implication It is not easy to build or implement practices from scratch. There is also no best solution for the HR Department’s problems. If Robinson wants to take the career challenge, here is how. Changing the HR Department and maintaining competitiveness is time consuming. Instead of trying to access entire HR functions, Robinson should outsource some functions such as recruiting, and administrative functions to stop the slow bleeding in Loft’s human capital. Although outsourcing might not be the best solution for Loft in the end, Robinson can focus his best effort to recover the HR overall alignment by implementing HIWP. While outsourcing certain functions, implementation of HIWP will help decentralize the organization, and gain back management’s support and leadership.

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 Managerial implication It is not easy to build or implement practices from scratch. There is also no best solution for the HR Department’s problems. If Robinson wants to take the career challenge, here is how. Changing the HR Department and maintaining competitiveness is time consuming. Instead of trying to access entire HR functions, Robinson should outsource some functions such as recruiting, and administrative functions to stop the slow bleeding in Loft’s human capital. Although outsourcing might not be the best solution for Loft in the end, Robinson can focus his best effort to recover the HR overall alignment by implementing HIWP. While outsourcing certain functions, implementation of HIWP will help decentralize the organization, and gain back management’s support and leadership.

Questions?