1. How to Succeed in HR Without Really Trying: A Roadmap for HR Development in the Coming Decade Presentation to the Evansville-Area Human Resource Association Dane M. Partridge, Ph.D. Associate Professor of Management University of Southern Indiana March 27, 2003

2. Is HR Playing a Strategic Role in Your Organization? What’s the best change my organization can make to prepare for the future? What makes an Ee want to stay with my organization? How are we going to invest in HR so that my organization has a better HR dept than our competition? Source: Halcrow (1988), reported in Noe et al. (2003)

3. Staffing the HR Function What are the KSAs of HR staff? What coursework? What coursework? Many MBA programs have no required HR course What certification? What certification? Bernardin (2003) indicates that only eleven percent of SHRM members have HR certification via HRCI DMP not sure this figure is accurate – Bates (2002) reports ~56,000 HR professionals have passed a certification exam; 54% of PHR candidates are SHRM members, 72% of SPHR candidates (HRCI State of the Institute Report 2002).

4. Staffing the HR Function Inherent exaggeration of abilities re: “people skills”? Survey of HS seniors Survey of HS seniors 70% believed they were above average in leadership ability; 2% believed they were below average 100% believed they were above average in ability to get along with others, 60% believed they were in top 10%, 25% believed they were in top 1% Source: Ruggiero (2001) Should we even be teaching “people skills” at undergraduate level? Should we even be teaching “people skills” at undergraduate level? Research indicates UG students have less interest in and perceive less relevance of OB course than other required business courses Mintzberg (1989), Burke and Moore (2003)

5. Staffing the HR Function More generalizable phenomenon, re: self- ratings? More generalizable phenomenon, re: self- ratings? Survey of 92 engineers (Meyer, 1980) Asked to self-rate relative to peer group, 0-100 (percentile) Mean: 78 th percentile Only two of 92 rated themselves below 50 th percentile (45)

6. Some Discrepancies Between Research Findings and HR Practices Recruitment Research indicates that quantitative analysis of recruitment sources using yield ratios can facilitate efficiencies in recruitment Research indicates that quantitative analysis of recruitment sources using yield ratios can facilitate efficiencies in recruitment In practice, less than 5% of surveyed companies calculate yield ratios; less than 20% know how In practice, less than 5% of surveyed companies calculate yield ratios; less than 20% know how Source: Bernardin (2002)

7. Some Discrepancies Between Research Findings and HR Practices Staffing Research indicates that Research indicates that Realistic job previews can reduce turnover Weighted application blanks reduce turnover Structured, behavioral, or situational interviews are more valid Graphology is invalid and should not be used In practice In practice Less than 20% of companies use RJPs in high-turnover jobs Less than 10% know what a WAB is; less than 1% use Less than 30% of companies use structured interviews Graphology’s use is increasing in U.S.

8. Some Discrepancies Between Research Findings and HR Practices Performance Appraisal Research indicates that Research indicates that Traits should not be used on rating forms Raters should be trained The appraisal process should be an important element of managers’ jobs In practice In practice More than 75% of companies still use traits Less than 30% train raters Less than 30% of managers are evaluated on performance appraisals

9. Some Discrepancies Between Research Findings and HR Practices Compensation Research indicates that Research indicates that Merit-based systems should not be tied into base salary Because size of bonus that can be offered is greater, cost to org in long run is much less Because size of bonus that can be offered is greater, cost to org in long run is much less Gainsharing is an effective pay-for-performance system In practice In practice More than 75% of companies tie merit pay to base pay Less than 5% of companies use gainsharing where they could

10. Quiz!!! Think back to your first day in HR… What were you most confident about, in terms of your preparation for your responsibilities? What were you most confident about, in terms of your preparation for your responsibilities? What were you least confident about? What were you least confident about? What, in terms of your preparation, contributed to your confidence or lack thereof? What, in terms of your preparation, contributed to your confidence or lack thereof? How could your development have better addressed your deficiencies? How could your development have better addressed your deficiencies?

11. TRW’s HRM Core Competencies Leadership and Managing Change Business Skills HR Functional Leadership HR Technical Skills Source: Milkovich and Newman (1999) “Core Competencies”: “The skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness.” Source: Jones (2001)

12. TRW’s HRM Core Competencies Leadership and Managing Change Integrity Integrity Efficiency Efficiency Performing in cost-effective manner Objectivity Objectivity Clear perception of org and political reality Proactivity Proactivity Risk taking Risk taking Taking action under conditions of uncertainty

13. TRW’s HRM Core Competencies Leadership and Managing Change (cont.) Decisiveness Decisiveness Professionalism Professionalism Consciousness of one’s professional image Negotiation Skills Negotiation Skills Facilitating “win-win” Communication Skills Communication Skills Written, Oral, Non-verbal(!) Brockbank (2003) found interpersonal competencies more important than verbal and written communication skills Brockbank (2003) found interpersonal competencies more important than verbal and written communication skills Team Management Skills Team Management Skills

14. TRW’s HRM Core Competencies Business Skills Industry Knowledge Industry Knowledge Value chain, suppliers, competitors, how org satisfies customer needs Knowledge of value chain has significant impact on business performance (Brockbank, 2003) Knowledge of value chain has significant impact on business performance (Brockbank, 2003) Strategic Management Strategic Management Understanding and planning for environmental changes Organizational Awareness Organizational Awareness Understanding business operations, how business competes, cultural/value systems impacting org performance

15. TRW’s HRM Core Competencies Business Skills (cont.) Total Quality Management Total Quality Management Continuous Improvement General Management Skills General Management Skills Understanding of finance, marketing, law, IT Partnership w/mngt team Partnership w/mngt team Note: knowledge itself is insufficient to contribute to high-performing organization – must put knowledge into practice….Achieving results more important to personal credibility than getting along well w/mngt team. Source: Brockbank (2003)

16. TRW’s HRM Core Competencies HR Functional Leadership Network Building Network Building Working effectively w/others, both inside and outside org Setting the Vision for HR Setting the Vision for HR Selecting and Developing Staff Selecting and Developing Staff Identifying and implementing org and individual developments plans Value-added perspective of HR Value-added perspective of HR Communicating to mngt how HR can contribute to org

17. TRW’s HRM Core Competencies HR Technical Skills HR Planning HR Planning Competencies in org design now fundamental, including org and job restructuring (Brockbank, 2003) Communications Communications Fostering understanding of key business and HR issues Work Force Diversity Work Force Diversity Selection and Placement Selection and Placement Including effective performance mngt system Training & Development Training & Development

18. TRW’s HRM Core Competencies HR Technical Skills (cont.) HR Information Systems HR Information Systems Compensation and Benefits Compensation and Benefits Performance-based, linked to performance mngt Health, Safety, and Security Health, Safety, and Security Org Effectiveness Org Effectiveness Managing cultural change within org to impact org effectiveness Note that culture management makes strategic contribution (Brockbank, 2003) [focusing internal culture on meeting needs of external customer, aligning HR w/ desired culture, facilitating quick change] Note that culture management makes strategic contribution (Brockbank, 2003) [focusing internal culture on meeting needs of external customer, aligning HR w/ desired culture, facilitating quick change] Ee and Labor Relations Ee and Labor Relations

19. Additional Competencies International Infusing org culture w/local talent worldwide Infusing org culture w/local talent worldwide Integrating foreign Ees into U.S.-based businesses Integrating foreign Ees into U.S.-based businesses Balancing differentiated pay scales/benefits levels to achieve internal equity Balancing differentiated pay scales/benefits levels to achieve internal equity Restructuring recruiting practices to ensure org is capturing best talent globally Restructuring recruiting practices to ensure org is capturing best talent globally Source: Patel (2002) [SHRM Workplace Forecast: A Strategic Outlook]

20. Top Ten Workplace Trends as seen by HR professionals Use of technology to communicate with Ees Rising health care costs Increased vulnerability of intellectual property Managing talent Greater demand for high-skilled workers than for low-skilled

21. Top Ten Workplace Trends as seen by HR professionals Labor shortage Change from manufacturing to information/service economy Increase in employment-related government regulations Focus on domestic safety and security Ability to use technology to more closely monitor Ees Source: Patel (2002)

22. Implications Given these trends in organizational environments, what are the implications for HR function? How do we get from where we are to where we need to be? How do we get from where we are to where we need to be? What organizational and individual development needs to be provided to facilitate change? Are there additional competencies that need to be developed so as to effectively manage these trends?

23. Evolving HR Function Some traditional roles, e.g., HR generalist, benefit specialist, likely to become less common and less important Will be increasingly important to be able to illustrate cost effectiveness, value-added contribution of HR practices And will need to manage relationship w/providers of outsourced activities (transactional functions) And will need to manage relationship w/providers of outsourced activities (transactional functions) Know finance! Will business degree be a requirement in the future? Will business degree be a requirement in the future? What would be the implications? What would be the implications? “Human capital strategist”? “Human capital strategist”? Source: Bates (2002), Glister (2000)

24. Challenges (Potholes?) David Ulrich (U of Michigan): “We have to shift the focus of HR away from training and process to the outcomes, away from a people function to an organization function. I’m not optimistic about all HR people” making that transition. Source: Bates (2002)

25. Staffing the HR Function (revisited) KSAs for HR? Preparation (Education and Experience)? Certifications – value and nature Certifications – value and nature Specialist certifications (e.g., ACA’s Certified Compensation Professional and Certified Benefits Professional, IFEBP’s Certified Employee Benefits Specialist)

26. Staffing the HR Function (revisited) HR Competencies – Build or Buy? Re: HRIS, most HR certifications attest to non- technological body of knowledge. PHR, SPHR not intended to address individual systems or software (Glister, 2000) Re: HRIS, most HR certifications attest to non- technological body of knowledge. PHR, SPHR not intended to address individual systems or software (Glister, 2000) Software-specific training (e.g., PeopleSoft) New International Association for Human Resource Information Management (IHRIM) certification (purported to be both technical and functional) Knowledge relevant to choosing right vendor HRCI due to include more technology emphasis in revised curriculum MBA w/ HR concentration? (Note that USI has moved in opposite direction…) MBA w/ HR concentration? (Note that USI has moved in opposite direction…)

27. HRCI Core Knowledge Areas Knowledge of needs assessment and analysis Knowledge of third-party contract management, including development of requests for proposals (RFPs) Knowledge of communication strategies Knowledge of adult learning processes Knowledge of motivation concepts and applications Knowledge of training methods Knowledge of leadership concepts and applications Knowledge of project management concepts and applications Knowledge of diversity concepts and applications

28. HRCI Core Knowledge Areas Knowledge of human relations concepts and applications (for example, interpersonal and organizational behavior) Knowledge of HR ethics and professional standards Knowledge of technology and human resource information systems (HRIS) to support HR activities Knowledge of qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes Knowledge of change management Knowledge of liability and risk management Knowledge of job analysis and job description methods Knowledge of employee records management (for example, retention, disposal) Knowledge of the interrelationships among HR activities and programs across functional areas Source: http://www.hrci.org/certification/spec-core.html

29. Conclusions and Challenges As business organizations and the business environment continue to evolve, the competencies required of HR professionals are also evolving. Knowledge is necessary but not sufficient prerequisite for success; skills and abilities are critical (i.e., the ability to put theory into practice). Key org and individual development question pertains to those skills and abilities – build or buy? To great extent, both degree programs and certification are indicators of knowledge, not necessarily competencies. Hmmm…