Chapter 16: Understanding the HR Profession Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition

© 2003 South-Western College Publishing. All rights reserved.16–2 Chapter Outline  Human Resource Professionals Play Many Roles  The HR Triad  Staffing the Human Resource Department  Professionalism in Human Resource Management  Organizing the Human Resource Department

© 2003 South-Western College Publishing. All rights reserved.16–3 Human Resource Roles  Strategic Management Role  Enabler Consultant Role  Monitoring and Maintaining Role  Change and Knowledge Facilitator Role  Innovator Role

© 2003 South-Western College Publishing. All rights reserved.16–4 Strategic Management Role  Linking the firm’s HR policies and practices to the broader, longer-term needs of the firm and its stakeholders  Includes:  Setting the direction  Crafting corporate- and business-level plans  Developing and implementing functional plans  Measuring, evaluating, revising and refocusing

© 2003 South-Western College Publishing. All rights reserved.16–5 Enabler and Consultant Role  Enabling line managers to make things happen  Includes  Training  Assisting with problem diagnosis  Developing solutions with managers  Being accessible and attuned to employee needs and concerns

© 2003 South-Western College Publishing. All rights reserved.16–6 Monitoring and Maintaining Role  Monitoring compliance with legal regulations and effectiveness of HR activities  Includes  Monitoring morale and esprit de corps  Providing support during change and uncertain times

© 2003 South-Western College Publishing. All rights reserved.16–7 Innovator Role  Improving productivity and quality of work life  Includes:  Adapting to an environment of uncertainty, energy conservation, and international competition  Justifying the benefits and costs of programs  Setting an example by being “bureaucracy busters”

© 2003 South-Western College Publishing. All rights reserved.16–8 Change and Knowledge Facilitator Role  Facilitating organizational change and maintaining organizational flexibility  Includes  Focusing on the future  Guiding the flow of knowledge, information and learning throughout the organization

© 2003 South-Western College Publishing. All rights reserved.16–9 The HR Triad  All managers responsible for leading people  Employees share responsibility for human resource management  “Customerization” means:  Viewing people inside and outside the organization as customers to be satisfied  Involving customers in the design of products and services

© 2003 South-Western College Publishing. All rights reserved.16–10 Staffing the HR Department Competencies Needed by the Human Resource Leader  Strategic management  Leadership and managerial  Change and knowledge management  Professional and technical

© 2003 South-Western College Publishing. All rights reserved.16–11 The Human Resource Staff  Build working relationships with line mangers  Specialists  Focus on one aspect of HR (e.g., recruitment and selection)  Generalists  Have broad knowledge and experience  May serve all HR needs of the business unit

© 2003 South-Western College Publishing. All rights reserved.16–12 Professionalism in HR Management  Ethical issues  Code of conduct  Professional certification  Global competencies for HR professionals

© 2003 South-Western College Publishing. All rights reserved.16–13 Code of Ethics for Human Resource Management  “Practitioners must regard the obligation to implement public objectives and protect the public interest as more important than blind loyalty to an employer’s preferences.”

© 2003 South-Western College Publishing. All rights reserved.16–14 Expectations for HR Professionals  Understand problems assigned  Stay competent and professional through study and research  Maintain high standards of personal honesty and integrity  Consider the personal interests, welfare, and dignity of all employees affected by recommendations and actions  Ensure organizations maintain high regard for public interest and personal interests and dignity of employees

© 2003 South-Western College Publishing. All rights reserved.16–15 Professional Societies & Certification  Society for Human Resource Management (SHRM)  Human Resource Certification Institute  Basic accreditation (PHR)  Senior Certification (SPHR)  World Federation of Personnel Management Associations (WFPMA)

© 2003 South-Western College Publishing. All rights reserved.16–16 Organizing the HR Function  Cost control  Reengineering and outsourcing Centralization versus Decentralization

© 2003 South-Western College Publishing. All rights reserved.16–17 Centralization vs. Decentralization  Trend toward greater decentralization  Less formalization of policies  Greater flexibility to cope with change  Greater openness  Less consistency of HR practices  May use broad policy statements to achieve common culture

© 2003 South-Western College Publishing. All rights reserved.16–18 Controlling Costs  In 2000:  Medial HR budget for each employee was $787  Median ratio of HR staff to workers= 1/100  Information technology reduces HR administrative costs  Shared services may reduce costs of decentralization  Service centers handle transaction-based activities  Centers of excellence house HR specialists with in- depth expertise

© 2003 South-Western College Publishing. All rights reserved.16–19 ReengineeringReengineering  Reengineering  Reconsider what the HR department is doing  Determine whether it can do it better and more effectively  Identifies What countsWhat counts What adds valueWhat adds value What can be best done by someone else (e.g. consulting firm)What can be best done by someone else (e.g. consulting firm)

© 2003 South-Western College Publishing. All rights reserved.16–20 OutsourcingOutsourcing  Outsourcing  Cost per employee should be lower with the efficiencies of vendors who serve multiple organizations. Results are often disappointing.Results are often disappointing.

© 2003 South-Western College Publishing. All rights reserved.16–21 Common Outsourcing Pitfalls  Not planning strategically  Failing to anticipate resistance to change  Failing to specify the “ideal” service delivery model  Mismanaging contract negotiation and vendor communication  Choosing vendor that doesn’t perform  Underestimating the time and resources required

© 2003 South-Western College Publishing. All rights reserved.16–22 Stepping into the Future: Globalization  Changes for the future:  More functions and activities  Broader perspective  More involvement in employees’ lives  More risk exposure  More external influences

© 2003 South-Western College Publishing. All rights reserved.16–23 Globalization and HRM “The primary causes of failure in multinational ventures stem from a lack of understanding of the essential differences in managing human resources, at all levels, in foreign environments.”