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

2. © 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

3. © 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

4. © 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

5. © 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

6. © 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

7. © 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”

8. © 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

9. © 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

10. © 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

11. © 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

12. © 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

13. © 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.”

14. © 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

15. © 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)

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

17. © 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

18. © 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

19. © 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)

20. © 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.

21. © 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

22. © 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

23. © 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.”