1. The Role of Mission and Values in Strategic Human Resource Management
Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

2. Learning Objectives At the completion of this module, students will:
Analyze mission and values statements from various organizations.
Link HR functions to an organization’s mission statement.
Assess organizational behavior as a reflection of the organization’s mission statement.
Formulate HR activities to reinforce the mission statement.
Objectives for the class.
©SHRM 2009

3. The Organization’s Mission and Values
Session 1

4. Why does your organization exist?
Mission and Values
Why does your organization exist?
Start the class by asking how many students are employed. No doubt many will raise their hands. Ask them to identify the purpose of their organization – “Why is your organization in business?” Most will answer “To make money.”
Continue the discussion. If the organization’s only purpose is to make money, then why does it do what it does? Why does the coffee shop sell coffee? Why does The Gap sell clothes? Why does H&R Block do income taxes? Remind students that there are many ways to make money, even some that are illegal. So the real question goes far deeper than just making money. The question is: why does an organization do a particular thing in the name of profit, instead of doing something else?
Ask students to set aside making money for the moment and then identify why their organization is in business. Some will have an answer right away and will be on target but others will have a difficult time. When you take money out of the picture, some may not be able to answer the question. Ask them if they know their organization’s mission statement. Some will, but very likely, most won’t. Some may not know what a mission statement is or even if their organization has one.
Remind them that an organization’s mission statement gets directly to the heart of why the company exists.
©SHRM 2009

5. A Mission Statement Defines the organization’s purpose.
Tells why the organization exists.
Tells what the organization hopes to achieve in the future.
Resonates with employees and focuses energy.
Shapes organizational culture and values.
Adds focus, direction and a sense of purpose to daily decisions.
A mission statement articulates the purpose of an organization. It states the reason the organization exists and identifies its essential nature. In a brief statement, it establishes the basis of the organizational culture and establishes the baseline for daily decisions. It tells employees as “members of the organization”, it tells employees where they are going in the future and what is important to the organization.
Mission statements don’t always involve the entire organization. You could substitute “department” or “team” in place of “organization” and the mission statement would serve the same purpose. You might think about the questions “Why does my department exist?” or “Why does my team exist?” What do the answers to these questions tell you about the work that is done in your department or by your team members?
Mission statements can even be written for individuals. Some success coaches advocate writing a personal mission statement geared to identifying your own values and purpose in life. For suggestions regarding writing personal mission statements see:
©SHRM 2009

6. Mission Statement What is the organization’s purpose?
What is the organization’s business?
What are the organization’s values?
Mission statements address three basic questions:
What is the organization’s purpose?
What is the organization’s business?
What are the organization’s values?
©SHRM 2009

7. What’s wrong with this mission statement?
“Our mission is to continue to continually utilize world-class intellectual capital so that we may proactively maintain emerging content while maintaining the highest standards.”
What’s wrong with this mission statement?
It doesn’t answer the three questions. It doesn’t identify the group involved, nor does it tell us its purpose or its values. It really doesn’t say anything.
©SHRM 2009

8. Mission Statement
“The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help people prevent, prepare for, and respond to emergencies.” Mission statement of the American Red Cross
Ask students to find the answers to the three questions in the American Red Cross’ mission statement.
What is the organization’s purpose?
To provide relief to victims of disaster.
What is the organization’s business?
To help people prevent, prepare for, and respond to emergencies.
What are the organization’s values?
Humanitarian
Volunteers
Congressional Charter
Principles of the International Red Cross
Mission statement retrieved January 8, 2009, from:
©SHRM 2009

9. Whose Mission Statement Is This?
“__________’s mission is to organize the world’s information and make it universally accessible and useful.” “____________is to be one of the world's leading producers and providers of entertainment and information. We create happiness by providing the finest in entertainment to people of all ages, everywhere.” “Saving people money so they can live better. To become the worldwide leader in retailing. Our first responsibility is to provide all consumers with the best products and services with guaranteed satisfaction under one roof.” _____________
When a mission statement clearly identifies the purpose and values of an organization, it’s not hard to guess what company the statement represents.
This slide is animated so that you can call up the mission statements one at a time. Call up the first mission statement and ask students to identify the organization. Do the same with the second and third statements.
The first mission statement belongs to Google. The second is the Walt Disney Company and the third mission statement is Wal-Mart’s.
©SHRM 2009

10. The Role of HR in the Organization’s Mission
Human resource functional areas:
Strategic management and planning.
Staffing.
Human resource development.
Compensation.
Employee relations.
Safety and health/risk management.
The human resource environment:
Legal compliance and EEOC.
HR in global organizations.
Briefly review the HR functions. Remind students that HR cannot sit on the sidelines but must play a key role in the organization’s implementation of its mission and values.
Strategic management and planning: Strategic management involves planning for the organization’s future and putting into place people and resources necessary to attain that future. HR’s role in strategic management is to help the organization prepare for change, forecast human capital needs, and structure performance management systems that support the organization’s objectives.
Staffing: Staffing is the process of ensuring the organization has the human capital necessary to achieve its goals. This includes forecasting staffing needs and hiring that ensures the organization has the right number of employees with the right skills at the time they are needed.
Human resource development: Includes employee training and career development to ensure employees have the necessary skills to meet present and future job demands.
Compensation: Compensation includes all rewards paid to employees in return for work done, including direct compensation and indirect compensation in the form of benefits.
Employee relations: Involves actions taken to maintain the employer-employee relationship, including performance management, grievance resolution, employee discipline and employee exit from the organization. In employee relations, the HR department serves as an advocate for both the employee and the employer.
Safety and health/risk management: This area includes all processes within the organization intended to promote a safe and healthy workplace. Such activities include safety training as well as compliance and maintenance of safety records. Risk management includes all activities intended to protect the organization’s assets
Legal compliance and civil rights law affects all areas of the organization and therefore requires that all HR activities are carried out without discrimination and that proper reporting is maintained.
HR functions in a global environment for organizations with facilities offshore. Global issues are of particular concern in the areas of staffing, compensation and legal compliance.
©SHRM 2009

11. Relating the Mission and Aligning with HR
Ask students to discuss how organizations relate their mission statements to the public. How do they get the word out? Most deliver their message through advertising. Many organizations cite their mission and values on their web sites and in their annual reports.
In-class activity: Distribute Microsoft’s mission and values statement and the accompanying question sheet. You will find copies of these in the instructor's manual. Students could do this individually or you could divide the class into groups to discuss the questions, with each group reporting back to the class. Discuss their answers as a class.
Which of the HRM functions are identified in Microsoft’s mission and values?
Strategic management and planning:
Openness in discussing future direction.
Working with others to ensure platforms work well together.
Staffing:
a. Requires great people.
b. Employing a multicultural workforce.
c. Acquisition of key talent.
HRD
a. Committed to personal excellence and self improvement.
b. Integrate with new and existing partners.
Employee relations:
a. Open and respectful.
b. Excellence in everything we do.
Which of the functions are missing?
a. Compensation
b. Safety and health
Answers to all questions are found in the instructor's manual.
How do organizations relate their mission statement to the public?
What does the organization say about itself?
How do HR functions align with mission and values?
©SHRM 2009

12. Mission Statements in Action
How do we recognize that a company is living its mission statement?
From a consumer point of view.
From an employee point of view.
Class Discussion –
Companies use a variety of methods to articulate their mission statements. We know what they say, but how do we identify if a company is (or is not) living its mission statement?
Ask the class to discuss this from a consumer and employee point of view.
Consumers: Most consumers will identify an organization’s mission by the words it uses to describe itself. Marketing plays a primary role in sending the organization’s message to the public. For example, Wal-mart uses “Everyday low prices” in its marketing and Disney uses “Providing entertainment to people of all ages”. For Volvo, it’s all about safety. Consumers will then compare what the company says with what consumers observe in their interactions with the organization.
Employees: If you are an employee, you will identify your company’s mission statement through the organization’s policies, particularly its HR policies. For example, if a company states that it believes in a “high level of customer service,” an employee is going to expect service and product training; compensation that rewards good service; and a work environment that supports the commitment.
If a company says it values professional development, an employee would expect to see tuition reimbursement, career ladders and organizational support for training.
When the organization fails to live up to its mission statement and there is incongruence between what the organization says and what it does, consumers and employees become cynical and mistrustful of the organization.
©SHRM 2009

13. Living the Mission and Values: Assignment
Assignment for next time :
What does an organization say about itself?
How do we know it’s true?
Assignment for next class session –
Students will research the mission and values statements of a specified organization. Students must use a for-profit organization. What does the organization say about itself? Mission and values statements can usually be found on an organization’s web site or in its annual report.
Students will do further research to determine what the organization does (or does not do) to live its mission and values. What does the press say? What do activist groups say about the organization? What do employees and customers say?
Students will write a short (2-3 page) paper summarizing their findings and should be prepared to discuss their findings at the next class meeting.
More detailed instructions are found in the instructor’s manual.
Suggested organizations follow. Ask students to suggest others.
Nike –
Starbucks –
The Gap –
Olive Garden Restaurants –
Toyota -
Sara Lee -
Anheuser-Busch -
Kellogg’s -
Pepsico - `
©SHRM 2009

14. Living the Mission and Values
Session 2

15. Living the Mission and Values
What organization did you investigate?
What does it say about itself?
What do others say about the organization?
Is it living its mission and values?
What HR activities does it engage in that reinforces its mission and values?
Start your second class session with student research reports. Ask them to briefly discuss:
The organization they investigated.
The organization’s mission and values statement. What does the organization say about itself?
What do others say about it? Employees? Consumers? The media? Activists? Others as appropriate?
How is the organization living its mission and values? Is there congruence between what it says and what it does?
What HR activities does it engage in that reinforces its mission and values?
©SHRM 2009

16. Wal-Mart’s Mission, Vision and Values
“Saving people money so they can live better”.
Three basic beliefs:
Respect for the individual.
Service to the customers.
Strive for excellence.
Class Activity: After the research reports, distribute the Wal-Mart handout found in the instructor's manual. It includes the discussion of Wal-Mart’s beliefs and values statement found on Wal-Mart’s web site at
Spend a few minutes discussing the Wal-Mart values before viewing the video.
Show the 20-minute summary version of the video, “Wal-Mart: the High Cost of Low Price.” You will find the summary version under “highlights” on the menu. As they view the video, ask students to think about the HR issues portrayed in the video.
Note: The video, Wal-Mart: The High Cost of Low Price, is NOT available at
Wal-Mart. You may find it at your public library or purchase it from Amazon.com.
©SHRM 2009

17. Wal-Mart: The High Cost of Low Price
Is there congruence between what the organization says in its mission and values statement and what others say about it?
What HR issues are discussed in this film?
How does HR influence an organization’s corporate citizenship?
At the end of the video, come back to the three questions on this slide.
Congruence?
Students will see the obvious incongruence between the video and what is portrayed on the Wal-Mart web site. Ask them to comment on how they will determine what is true regarding Wal-Mart as well as any other organization. Remind them to be aware of bias in reporting. Of course, every organization will make itself look like “the good guys” in its corporate press, but films and other media sources may contain bias as well. Where else can we get information and how will we decide what to believe?
HR issues identified in the film:
Outsourcing.
Overtime compensation.
Health benefits.
Discrimination.
HR’s influence:
Corporate citizenship, also known as corporate social responsibility, is based on the idea that when organizations make decisions, they must consider the broad effect of that decision, including its effect on customers, partners and employees as well as the effect on the economy, environment and society as a whole. Strategic human resource decisions will have a long-term effect reaching far beyond the organization.
For example, decisions about compensation, benefits and training will all influence the local economy. When employees receive training, the skill level of the immediate labor force is elevated. A skilled labor force translates, in the long term, into attracting additional businesses to the community, thereby increasing jobs and strengthening the economy. Certainly, compensation directly affects the community through employee spending.
Organizations demonstrate corporate social responsibility through their actions, such as supporting a charity or allowing employees an extra paid day off each year for volunteer work. HR can play a significant role in influencing the organization’s policies that support social responsibility. What we do and how we do it as HR managers is part of a larger responsibility that affects our profession, our organizations and our communities.
In your opinion, how much influence does the HR department at Wal-Mart have on how the company does business?
©SHRM 2009

18. Aligning HR and the Organization’s Mission
The Green Team at DPI Printing
How do human resource functions reinforce the mission and values of the organization?
Assignment for Session #3
Assign the Green Team at DPI Printing case. Students could complete this assignment individually or as a group project, depending on what works best in your class. The case requires students to design HR strategies that will reinforce the mission and values and support the new direction of DPI Printing. Students will present their findings during the next class session.
Further instructions and materials for this case are found in the instructor’s manual.
©SHRM 2009

19. Aligning Human Resource Functions with the Organization’s Mission
Session 3

20. The Green Team at DPI Printing
The Green Team at DPI Printing The HR manager’s report
Class Activity:
Students will present their findings and discuss what DPI’s HR department can do to reinforce the organization’s new direction.
As with all cases, there is no one right answer. Students will have a variety of suggestions, so be sure there is enough time to hear from everyone and discuss their ideas.
©SHRM 2009

21. HR Practices in Alignment with Mission and Values
Go back to the HR functions (slide 10) introduced earlier and discuss each area in terms of the activities that can strategically influence attainment of the organization’s mission.
Ask students to suggest ideas. Most HR activities can be aligned to reinforce an organization’s mission and values. Support--or lack of support--for the mission depends on how HR policies are structured. Some suggestions follow, but students will likely add more.
Strategic management and planning:
HR must be a key player in the organization’s strategic planning.
Forecast future HR staffing needs.
Maintain HRIS system with current data on employee numbers and skill levels.
Establish succession plans.
Staffing:
In conjunction with the strategic plan, maintain staffing levels that meet the present and future needs of the organization. Depending on where the organization is going, this may involve hiring, retraining, transfer or retrenchment of employees. Plan for replacement of retiring Baby Boomer employees.
Human resource development:
Training should be ongoing to ensure employees have the skill levels needed to carry the organization into the future.
Align with succession plans to ensure there is leadership training available to present and future management personnel.
Compensation:
Design and implement a compensation system that is in harmony with the organization’s mission and values. Ensure there is a blend of direct and indirect compensation that reflects the organization’s objectives while maintaining appropriate budget levels. For example, if the organization desires longevity, ensure there are longevity awards and compensation that favors retention. If the organization favors employee development, include tuition reimbursement and professional development funds in the compensation package.
Employee relations:
Encourage communication and open-door policies at all levels within the organization. Ensure there is a grievance process for managing employee issues. Create an employee hotline, ombudsperson, peer review committee, etc. as is appropriate to hear and recommend solutions to employee issues. Conduct regular employee surveys. Report and act on the survey results. Provide training to managers at all levels on skills such as conducting performance appraisals, managing discipline, sexual harassment, conflict resolution, etc.
Safety and health/risk management:
Establish and maintain safety committees. Foster an environment that values and rewards safety. Create and enforce safety policies, including appropriate behavior, drug and alcohol abuse, workplace weapon bans, etc. Ensure careful screening, reference checking and selection of employees. Establish a no-tolerance policy for safety violations. Ensure employees are aware of hazards in the workplace and practice emergency drills. Monitor and ensure strict adherence to OSHA standards. Monitor records management to ensure employee privacy as well as appropriate employee right-to-know policies.
EEOC and legal compliance:
Maintain records and compliance as directed by state and federal regulations. Train employees, especially managers, in civil rights and legal compliance. Monitor and ensure that equal employment opportunity is a reality and not just words in the employee manual. Establish a no-tolerance policy for harassment of any kind; train all employees and enforce policy. Ensure employee legal rights and allow no retaliation for employees exercising those rights.
HR Practices in Alignment with Mission and Values
What HR practices reinforce the mission and values of the organization?
Strategic management and planning
Staffing
Human resource development
Compensation
Employee relations
Safety and health/risk management
EEOC and legal compliance
©SHRM 2009

22. Strategic Human Resource Management
Mission
Strategic HRM
Values
HR functions become strategic when they align with the organization’s mission and values. Strategic HR is a key player in the organization’s success.
©SHRM 2009