Personnel Management: Historical Perspective Industrial Revolution –Consolidation & Mechanization of Production from cottage system to factory system –Routinization of Work –Workers: greater income, but longer hours –Conditions: unsafe & unhealthy

Emergence of Personnel Management Industrial Welfare Movement –administered by “welfare secretaries” –point of contact between company & employees Scientific Management –work studies & work standards for efficiency –training in work standards for employees –hiring; fitting workers to the work

A Changing Labor Force: 1910s to 1930s WWI-- labor shortage compounding high turnover who deals with these issues? Seek people that better fit organization Immigration laws tighten people’s educational level increases workers demand better treatment Hawthorne Study relationships can make a difference satisfaction can improve productivity –grease the wheels Great Depression unemployment compensation/SS

Workforce: WWII & Post-WWII WWII –Labor shortage; women in workforce –Training increases Post WWII –Demand for production increases –Technology increases –Government regulations Civil Rights; Equal Pay Act; OSHA; EEOC

The Organization as an Open System: Its Forces & Resources People Organizational Environment Industry Environment External Environment

Emerging in the 1980s: A Challenge to “Personnel Management” Globalization –World Markets –Dynamic Nature Geometric (rate of) Change/Growth –Knowledge –Technology Management & Organizations –Mechanical Organic –Control Development –Employment Contract: Economic Psychological

Implication: Human Resource Management is now more than Personnel Management The HR function is basic to the success of all organizations Spans across the organization Touches most aspects of the organization –Heterogeneous vs Homogeneous (knowledge base) Human Resource Function = HRM + HRD ‘Personnel Management’ Organizational & Individual Development –Integrating the human dimension with the organizational structure Optimization of Human Resource

The Role of HR Professional People Individual Development Organizational Development Integrating Humans w/ Structure Employee Relations Employee Benefits Information & Reward Systems Job Design Performance Management HR Planning HRM HRD HRM x HRD

HUMAN RESOURCE MANAGEMENT For Discussion: What is the practical significance of switching from the term “personnel” to “human resources?”

Resources ==> Organizational Capabilities Resources Complex coordinated network of people, processes & practices--the patterns of work & relationships Organizational Capabilities =

As Knowledge replaces Capital, the Organization- Employee Contract Changes Yesterday, Economic Only –Wages –Employment Benefits + Safe Work Today, Economic & Psychological –Mutual Commitment –Meaningful Work What are the implications for a Leader of People?

Management of People is Now a Strategic Issue High levels of quality requires commitment from the people of the organization Commitment requires Psychological Contract HR is instrumental to turn human resources into resourceful humans Its not the traditional personnel management anymore: –requires the development of ‘high commitment’ practices that meet the needs & expectations of the individual and the organization.

From Personnel to Strategic HR Clarify rules and procedure for personnel Support function Control & Monitor labor matters Not of concern to the ‘real’ business of the organization Emphasis on business needs Facilitative, Consultative function Develop the Individual & the Organization Integrated with business strategy

HUMAN RESOURCE PLANNING Human resource planning: the development of a comprehensive staffing strategy for meeting the organization’s future human resource needs.

HUMAN RESOURCE PLANNING (continued) The Human Resource Planning System Model 1.Assess current staffing needs u Job analysis: the process of determining the fundamental elements of jobs through systematic observation and analysis. u Job description: a clear and concise summary of the duties of a specific jobs and the qualifications for holding it. 2.Forecast future human resource needs 3.Formulate staffing strategy 4.Evaluate and update

Strategic Components of a Business Business Strategy Strategic Alliances and Collaborative Partnerships Responses to Changing Conditions Basic Competitive Approach Moves to Secure Competitive Advantage Geographic coverage; approach to vertical integration Manufacturing Strategy Marketing Strategy R & D Strategy Human Resource Strategy Finance Strategy

An Integrated Approach Organization’s Vision Corporate Mission Business Strategy External Scan Internal Scan HR Mission & Strategy Mutually reinforcing & integrative HR actions, policies, programs that span across the organization

Strategic HR The pattern of planned human resource deployments and activities intended to enable the firm to realize its mission. Helping the organization achieve its objectives with and through people –employment relationships, policies & practices –selection & recruiting strategies –training strategies –development of human resourcefulness & organizational capability strategies All actions affecting the behavior of individuals in their efforts to formulate & implement the strategic needs of the business

Delta’s Delimma What are some of the unique aspects about the members of the Air Line Pilots Association that present challenges for a CEO like Mullin? How would Bluestone’s seven principles help?

PERFORMANCE APPRAISAL Performance appraisal: the process of evaluating individual job performance as a basis for making personnel decisions.

PERFORMANCE APPRAISAL (continued) Criteria for Legally-defensible Performance Appraisals 1.A job analysis used to develop the performance appraisal system. 2.The appraisal system is behavior-oriented, not trait- oriented. 3.Evaluators follow specific written instructions when conducting appraisals. 4.Evaluators review the results of appraisals with ratees.

PERFORMANCE APPRAISAL (continued) For Discussion: What has been your personal experience with performance appraisals? What improvements could have been made?

ALTERNATIVE PERFORMANCE APPRAISAL TECHNIQUES Goal setting (management by objectives) Written essays Critical incidents Graphic rating scales Behaviorally anchored rating scales (BARS): performance rating scales divided into increments of observable job behavior determined through job analysis.

ALTERNATIVE PERFORMANCE APPRAISAL TECHNIQUES (continued) Weighted check lists Rankings / comparisons Multi-rater appraisals 360-Degree review: a manager is evaluated by her or his boss, peers, and subordinates.

ALTERNATIVE PERFORMANCE APPRAISAL TECHNIQUES (continued) For Discussion: 1.As a top-level executive, which appraisal technique would you use in your organization? Why? 2.As a first-line supervisor, which technique would you prefer? Why? 3.Which technique would you like to have manager use for appraising your job performance? Why?