Chapter 9 Human Resource Considerations Managing the Information Technology Resource Jerry N. Luftman © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 1

Chapter Outline Market for IT professionals What IT professionals seek in a position Characteristics of IT environment contributing to HR complexity Future for IT professionals Skills required for successful IT future Retention of IT talent Stress in the workplace IT career development © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 2

National Average of IT Salaries Senior Systems Programmer $68,900 Web Application Developer $61,700 Network Administrator $60,000 Programmer/Analyst $55,100 Help Desk Operator $39,700 CIO/VP of IT $165,100 Director of IT/IS/MIS $108,200 Project Manager $88,200 Database Manager $84,800 Senior Systems Analyst $72,300 © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 3

What IT Professionals Are Looking For Career advancement Salary requirements Empowerment to affect company success Ability to telecommute Discuss career goals with management Reasonable workload Company-sponsored training and seminars Less stress © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 4

© 2004 Managing the Information Technology Resource, Jerry N. Luftman © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 5

Top IT Jobs in Percentage of Growth Computer Engineer 108% Computer Support Specialist 102% System Analyst 94% Database Administrator 77% Desktop Publishing Specialist 73% © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 6

Skills for Future in IT Business analyst Change management Communication Finance Project management Leadership Managing value Marketing Mentoring/career development Stakeholder management Team building Training © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 7

General Technology Skills Needed Application software Databases Hardware infrastructure/architecture Knowledge of general IT management issues Networks and networking architecture Systems development and programming Integration within and across all architectures © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 8

Industry and Firm-Type Knowledge Industry Knowledge Best practices Industry issues Industry-specific solutions Firm-Type-Specific Knowledge Business processes Generalized business strategies Influencing decision making Marketing © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 9

Necessary Managerial Skills Ability to communicate across business disciplines Ability to employ consulting skills Ability to influence decision making Information about business process Understanding organizational philosophy Understanding the strategic goals and objectives © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 10

Becoming a First-Line Manager Become responsible for output of other people Act as leader Stay informed on technical issues Acquire new and unfamiliar administrative duties Deal with employees and their problems Face new situations that have unclear action requiring judgment © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 11

Problems of Retention of IT Talent Difficult to know how to plan to use human resources Disruptive to organization and negative impact on morale when talented workers leave Real costs of losing skilled employees and replacing them © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 12

Recruiting IT Talent Source: Lee Hecht Harrison, Inc., http://www.lhh.com/us/rsrchinfo/res&info.html © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 13

Gartner’s Successful Retention Guidelines Compensation Pay within 10% of market rates Integrate HR and IT functions Allow IT function managers greater flexibility Build defensive intelligence sources and survey often Set aside money for training that vests over time Offer time- and performance-based bonuses that pay out over 3-5 year period Stock options © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 14

Gartner’s Successful Retention Guidelines Benefits Health, dental, and vision Financial benefits include 401-K Pension plan Employee stock purchase plans Tuition/education reimbursement Lifestyle benefits Casual dress Telecommuting Flexible hours Sabbaticals © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 15

Gartner’s Successful Retention Guidelines Training Invest at least 10% in training and upgrading skills Work Environment Provide chance to work with new technologies Make work environment fun Recognition programs © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 16

Gartner’s Successful Retention Guidelines Eliminate Burnout Through Staffing/Time Off Staff to meet objectives, negotiate service levels, increase after-hours premium support Offer time-off to employees who put in long hours Poll Employees Employee satisfaction data once a year 360° review process Implement skip-level lunches to gain better insight © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 17

Gartner’s Successful Retention Guidelines Hire Appropriate Profile Beware of “go-getters” Understand person’s cultural fit within organization Open Career Paths NO artificial boundaries on career ladders Allow people to build process management skills © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 18

© 2004 Managing the Information Technology Resource, Jerry N. Luftman © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 19

Source: Personnel Decisions Inc. , Minneapolis, MN, http://www © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 20

Motivation Factors for IT Staff Allow people to learn new technologies Give people necessary resources Be competitive in terms of salary and benefits Provide for worker’s personal development Provide strong leadership during rapid change Make certain people perceive that work is meaningful © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 21

Common Sources of Stress Pace of technology change Commuting Work-life balance Office politics Increasing workloads Other © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 22

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Stress-Reduction Techniques Bring in outside contractors to reduce workloads Improve communications and encourage team building Involve employees in decisions about managing workloads Plan and promote outside activities to break monotony © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 24

IT Management Can Reduce IT Staff Stress Keep staff updated on project status Let people know what is expected Set priorities Manage deadlines Make sure staff takes breaks regularly Make sure staff knows updates on latest developments © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 25

IT Management Can Reduce IT Staff Stress Arrange for massages/exercise Arrange for well-balanced food Encourage work with “stress buddies” Keep stress diary Encourage time off if highly stressed Encourage staff to ask for help Provide ergonomic work environment © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 26

Career Development Personal career development Increased quality of work Improved capacity to solve problems Better team performance Improved capacity to cope with change in workplace Higher success rate in promoting employees Increased output of products and services Increased employee retention © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 27

Ethical Conduct and Data Management Provide training in ethical conduct Employees understand rules of ethical behavior and actions Enforce ethical conduct on management of firm Bring visibility to all information Formal and on-the-job Can cover broad range of topics © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 28

Six Commandments of Ethical Management Data is valuable corporate asset. CIO is steward of corporate data and responsible for managing it over its life cycle. CIO is responsible for controlling access to and use of data. CIO is responsible for preventing inappropriate destruction of data. CIO is responsible for brining technological knowledge to development. CIO should partner with executive peers to develop and execute data management policies. © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 29

© 2004 Managing the Information Technology Resource, Jerry N. Luftman © 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 9 - Slide 30