MGT 430 – Spring, 2016 Class 1 – Chapter 1 Introduction to Human Capital Management

MGT 430 – Prof. Ken Moore 518-374-1050 kmoore01@nycap.rr.com Dates: January 20, 2016 – May 4, 2016 Time & location: Call #5237 Mon – Wed 10:15 am – 11:35 am, BB 205 Call #2896 Mon – Wed 11:45 am – 1:05 pm, BB 205   Course website: http://www.albany.edu/faculty/vanness/Moore.pdf Textbook: HUMAN RESOURCES MANAGEMENT: Managing Employees for Competitive Advantage, 2nd edition; Lepak & Gowan, ISBN: 978-0-9833324-3-5

MGT 430 - Major Subject Areas Strategic Human Resources Management & Competitive Advantage Employment Law & Recruiting HRM Planning, Recruiting, Selection & Placement Performance Management Employee Benefits Compensation Collective Bargaining & Labor Relations Global HRM Practical exercises

MGT 430 Graded Activities 500 points Exam #1 500 points Exam #2 500 points Final exam 500 points Group presentation 250 points Executive Briefing paper #1 250 points Executive Briefing paper #2 100 points Peer evaluation Total points: 2600 Extra credit 100 points Perfect attendance 50 points Team President 1 25 points Team Vice President

The Many Strategic Purposes of Human Resources (Pick your favorites) Advance the objectives of the organization Help gain and sustain competitive advantages Help ensure and promote the financial health of the organization Help ensure and promote sound business policies and practices Find, attract, retain and develop good people Keep the company in compliance with employment laws Help ensure that you and your colleagues will have a job next Monday when you show up for work

Organizational Structure HR Finance Accounting Marketing Sales Production Logistics Purchasing Transportation Legal Maintenance Administration M.I.S. Public Relations Business Plan Top Management Team

HRM SUPPORTS THE ACHIEVEMENT OF THE OBJECTIVES OF: Purchasing Marketing Accounting Sales Finance M.I.S. Logistics R & D Maintenance Legal Transportation Administration Others ______________________________________________________ Human Resources Management

CREATING THE PERFECT H.R. WORLD SUPERIOR PROFITABLE & TRANSACTIONAL PRODUCTIVE SKILLS BUSINESS PARTNERSHIP £

Charge to HRM: Linking HRM Contributions To: PROFITABILITY Factors PRODUCTIVITY LEGAL COMPETITIVE ADVANTAGE

Being a Profitable and Productive Business Partner Requires: Transactional mastery of HR (Mktg, Fin, Acct, IT, R&D, Logistics etc.) areas of expertise Finely developed level of business intelligence Financial literacy Ability to create internal and external value by what HR does – as viewed by the consumers of HR services Focus on what HR achieves, not what HR does

STRATEGY Examining Competitiveness – It is a company’s ability to maintain and gain market share in its line of business Human Resource Management – The policies, practices, and systems that influence employees’ behavior, attitudes, and performance – leading to above average returns and sustained competitive advantages Competitiveness refers to a company’s ability to maintain and gain market share in its industry. Competitiveness is related to company effectiveness, which is determined by whether the company satisfies the needs of stakeholders (groups affected by business practices). Important stakeholders include stockholders, who want a return on their investment; customers, who want a high-quality product or service; and employees, who desire interesting work and reasonable compensation for their services. Human resource management refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance --Many companies refer to HRM as involving “people practices" 1-11 .

HRM Challenge 1 Meeting Organizational demands Strategy Company Characteristics Organizational culture Employee concerns

HRM Challenge 2 Labor Force Trends Technology (e.g. online recruiting, virtual management) Economics (focus on value-adding deliverables) Ethics & social responsibility Cross-functional and business literacy Generational issues Multi-discipline team settings Weaknesses in STEM skills

HRM Challenge 3 Regulatory Issues Labor laws Tax laws Compliance Differing global perspectives

THE PRIMARY ROLE OF HUMAN RESOURCES IS TO: ADVANCE THE OBJECTIVES OF THE ORGANIZATION

IS TO ADVANCE THE OBJECTIVES The Primary Roll Of: Marketing Finance Accounting Sales R&D Production Logistics Maintenance Purchasing Administration MIS Credit IS TO ADVANCE THE OBJECTIVES OF THE ORGANIZATION

KSAs Common to HRM Analysis, design & description of work Recruitment & Selection Training & Development Compensation & Benefits Employment law HRIS (data support) Performance Management Policies & procedures Employee/labor relations

Challenges to HRM Value-adding Work Previous slides describe what HR does (i.e. transactional activities). What does HR achieve by doing these activities (Strategic)?

Skills of HRM Professionals With such varied responsibilities, the human resource department needs to bring together a large pool of skills. These skills fall into the six basic categories shown in Figure 1.3 on this slide. Credible activists – being so well respected in the organization that you can influence the positions taken by managers. Cultural steward: involves understanding the organization’s culture and helping to build and strengthen or change that culture by identifying and expressing its values through words and actions Talent manager/ organizational designer: knows the ways that people join the organization and move to different positions within it Strategy architect: requires awareness of business trends and an understanding of how they might affect the business, as well as the opportunities and threats they might present. Business allies – know how the business makes money, who its customers are, and why customers buy what the company sells Operational executors: at the most basic level carry out particular HR functions such as handling the selection, training, or compensation of employees. To excel in each of these areas it requires interpersonal skills to share information, build relationships and influence people.

Challenges for HR Management: Measurement of Our Worth Can we show the linkage between measures of human capital and financial returns? How do we tell our value-creation story? How can we use these data to create competitive advantage?

What is the relationship between Human Resources and Marketing Accounting and Human Resources M.I.S. and Human Resources Human Resources and R&D

Potential HRM Responses Re-Active & Pro-active Reduce organizational exposure to legal liabilities Operational and transactional efficiencies Compliance with all state, federal & international employment laws Advocate for employee concerns Describe & justify value adding deliverables Adequate & appropriate staffing according to our business plan

Human Capital Pro-Active Human Capital strategies that advance the business objectives of the organization Effective and appropriate assignment of employees Selection, development and retention of high quality employees Strategic human capital plan + strategic business plan alignment RESULT: Right people…right KSAs…right place…right time

END OF CLASS 1