Personnel Management: Historical Perspective

• Industrial Revolution– Consolidation & Mechanization of Production

• from cottage system to factory system

– Routinization of Work– Workers: greater income, but longer hours– Conditions: unsafe & unhealthy

Emergence of Personnel Management

• Industrial Welfare Movement– administered by “welfare secretaries”– point of contact between company &

employees

• Scientific Management– work studies & work standards for efficiency– training in work standards for employees– hiring; fitting workers to the work

A Changing Labor Force: 1910s to 1930s

• WWI-- labor shortage

• compounding high turnover

• who deals with these issues?

• Seek people that better fit organization

• Immigration laws tighten

• people’s educational level increases

• workers demand better treatment

• Hawthorne Study

• relationships can make a difference

• satisfaction can improve productivity– grease the wheels

• Great Depression

• unemployment compensation/SS

Workforce: WWII & Post-WWII

• WWII– Labor shortage; women in workforce– Training increases

• Post WWII– Demand for production increases– Technology increases– Government regulations

• Civil Rights; Equal Pay Act; OSHA; EEOC

Approaches to Human 'Resource' Management

Control-Based

Commitment-Based

The Organization as an Open System: Its Forces & Resources

People

Organizational Environment

Industry Environment

External Environment

Emerging in the 1980s:A Challenge to “Personnel Management”

• Globalization– World Markets– Dynamic Nature

• Geometric (rate of) Change/Growth– Knowledge– Technology

• Management & Organizations– Mechanical Organic– Control Development– Employment Contract: Economic Psychological

Implication: Human Resource Management

is now more than Personnel Management

• The HR function is basic to the success of all organizations

• Spans across the organization

• Touches most aspects of the organization– Heterogeneous vs Homogeneous (knowledge base)

• Human Resource Function = HRM + HRD • ‘Personnel Management’

• Organizational & Individual Development– Integrating the human dimension with the organizational

structure Optimization of Human Resource

The Role of HR Professional

People

•Individual Development

•Organizational Development

•Integrating Humans w/ Structure

•Employee Relations

•Employee Benefits

•Information & Reward Systems

•Job Design

•Performance Management

•HR Planning

HRM HRD

HRM x HRD

HUMAN RESOURCE MANAGEMENT

For Discussion: What is the practical significance of switching from the term “personnel” to “human resources?”

Resources ==> Organizational Capabilities

Resources

Complex coordinated network of people, processes & practices--the patterns of work & relationships

Organizational

Capabilities

=

"If you're not thinking all the time about making every person more valuabe, you don't have a chance"

How Important Are People?(see inset page 320)

"The first great lie of management: 'employees are our most valuable asset'."

Jack Welch, CEO GE Scott Adams, of Dilbert

As Knowledge replaces Capital, the Organization-Employee Contract Changes

• Yesterday, Economic Only– Wages– Employment Benefits + Safe Work

• Today, Economic & Psychological– Mutual Commitment– Meaningful Work

What are the implications for a Leader of People?

Management of People is Now a Strategic Issue

• High levels of quality requires commitment from the people of the organization

• Commitment requires Psychological Contract• HR is instrumental to turn human resources into

resourceful humans• Its not the traditional personnel management anymore:

– requires the development of ‘high commitment’ practices that meet the needs & expectations of the individual and the organization.

From Personnel to Strategic HR• Clarify rules and

procedure for personnel

• Support function• Control & Monitor

labor matters• Not of concern to the

‘real’ business of the organization

• Emphasis on business needs

• Facilitative, Consultative function

• Develop the Individual & the Organization

• Integrated with business strategy

HUMAN RESOURCE PLANNING

• Human resource planning: the development of a comprehensive staffing strategy for meeting the organization’s future human resource needs.

Human Resource PlanningA Strategic Orientation to Optimal Staffing

Organizational Strategyand Structure

HR Strategic Planning

Assess Capabilities

Forecast NeedsEvaluate

Develop HR Plans

HUMAN RESOURCE PLANNING (continued)

The Human Resource Planning System Model1. Assess current staffing needs

Job analysis: the process of determining the fundamental elements of jobs through systematic observation and analysis.

Job description: a clear and concise summary of the duties of a specific jobs and the qualifications for holding it.

2. Forecast future human resource needs3. Formulate staffing strategy4. Evaluate and update

Strategic Componentsof a Business

BusinessStrategy

Strategic Alliances and CollaborativePartnerships

Responses to Changing Conditions

Basic CompetitiveApproach

Moves toSecureCompetitiveAdvantage

Geographic coverage;approach to verticalintegration

ManufacturingStrategy

Marketing Strategy

R & DStrategy

Human Resource Strategy Finance Strategy

An Integrated Approach

Organization’s Vision

Corporate Mission

Business StrategyExternal Scan

Internal Scan

HR Mission & Strategy

Mutually reinforcing & integrative HR actions, policies, programs that span across the

organization

Strategic HR• The pattern of planned human resource

deployments and activities intended to enable the firm to realize its mission.

• Helping the organization achieve its objectives with and through people– employment relationships, policies & practices– selection & recruiting strategies– training strategies– development of human resourcefulness &

organizational capability strategies• All actions affecting the behavior of individuals in

their efforts to formulate & implement the strategic needs of the business

HR Management Essentials

Attracting Quality People

Maintaining Quality People

Developing Quality People

Union-Management Issue

Eliminate Unions?

Avoid Conflict?

Change Relationship?

Bluestone's Suggestions

Productivity growth goals jointly determinedLinking wages and productivity for global competitivenessPrices jointly setRight to strike to ensure world-class qualityGuaranteed employment securityProfit-sharing and gain-sharing incentivesJoint labor-managemnt decision making at all levels

Delta’s Delimma

• What are some of the unique aspects about the members of the Air Line Pilots Association that present challenges for a CEO like Mullin?

• How would Bluestone’s seven principles help?

Enhancing the Legality (Defensibility)of Performance Appraisals

Performance Criteria Linked to Job

Performance Criteria are Behavior-Oriented

Performance is Reviewed with Appraisee

Techniques Used to Assess Performance

Performance vs GoalsPerformance as Evidenced in Critical IncidentsPerformance RatingsPerformance RankingsPerformance Utilizing Multiple Appraisers

Purpose of Performance Appraisals

Evaluative

Developmental

System's ViewMechanistic View

System's ViewMechanistic View

Consequence Consequence

PERFORMANCE APPRAISAL

Performance appraisal: the process of evaluating individual job performance as a basis for making personnel decisions.

PERFORMANCE APPRAISAL (continued)

Criteria for Legally-defensible Performance Appraisals

1. A job analysis used to develop the performance appraisal system.

2. The appraisal system is behavior-oriented, not trait-oriented.

3. Evaluators follow specific written instructions when conducting appraisals.

4. Evaluators review the results of appraisals with ratees.

PERFORMANCE APPRAISAL (continued)

For Discussion: What has been your personal experience with performance appraisals? What improvements could have been made?

ALTERNATIVE PERFORMANCE APPRAISAL TECHNIQUES

• Goal setting (management by objectives)• Written essays• Critical incidents• Graphic rating scales

Behaviorally anchored rating scales (BARS): performance rating scales divided into increments of observable job behavior determined through job analysis.

ALTERNATIVE PERFORMANCE APPRAISAL TECHNIQUES

(continued)

• Weighted check lists• Rankings / comparisons• Multi-rater appraisals

360-Degree review: a manager is evaluated by her or his boss, peers, and subordinates.

ALTERNATIVE PERFORMANCE APPRAISAL TECHNIQUES

(continued)

For Discussion:

1. As a top-level executive, which appraisal technique would you use in your organization? Why?

2. As a first-line supervisor, which technique would you prefer? Why?

3. Which technique would you like to have manager use for appraising your job performance? Why?

Ways of Providing Training

On-the-Job

Off-the-Job

Good Training Requires

RelevancyUtilize the Familiar to get to UnfamiliarInvolvement & ParticipationMultiple Instructional StrategiesEnthused InstructorProductive Feedback

Agree or Disagree? Why?

Implications for HR management

"Modern organizations are a direct refelction of society in general."

Discouraging Sexual Harassment

_____________________

_____________________

_____________________

_____________________

Management's ResponsibilityIn regards to Sexual Harassment

Provide Policy

Provide Training

Provide Grievance Procedure

Compare and Contrast Affirmative Action & Diversity

Why?

"...But more often, critics say, diversity training is ineffectual in altering employee behavior: at its worst, it exacerbates the very stereotyping and divisiveness it is meant to alleviate"