SEMINAR IN STRATEGIC SEMINAR IN STRATEGIC HUMAN CAPITAL MANAGEMENTHUMAN CAPITAL MANAGEMENT

AN OVERVIEW OF THE GOALS, AN OVERVIEW OF THE GOALS, ROLES, FIELD AND FUNCTIONS ROLES, FIELD AND FUNCTIONS

GEORGE L. WHALEY Ph.D. GEORGE L. WHALEY Ph.D.

OCTOBER 27, 2008OCTOBER 27, 2008

BUSINESS 251BUSINESS 251

OCTOBER 27, 2008 AGENDAOCTOBER 27, 2008 AGENDA

GREENSHEET REVIEWGREENSHEET REVIEW

HUMAN CAPITAL MANAGEMENT OVERVIEWHUMAN CAPITAL MANAGEMENT OVERVIEW

DEVELOPMENT OF HCM FIELDDEVELOPMENT OF HCM FIELD

STRATEGIC HRMSTRATEGIC HRM

CLASS EXERCISECLASS EXERCISE

NEXT CLASS ASSIGNMENTNEXT CLASS ASSIGNMENT

BUS. 251 GREENSHEETBUS. 251 GREENSHEET INSTRUCTOR CONTACT INFORMATIONINSTRUCTOR CONTACT INFORMATION OFFICE HOURSOFFICE HOURS COURSE DESCRIPTIONCOURSE DESCRIPTION COURSE OBJECTIVESCOURSE OBJECTIVES COURSE METHODOLOGYCOURSE METHODOLOGY EVALUATION CRITERIAEVALUATION CRITERIA EXAMSEXAMS TEXTBOOKSTEXTBOOKS WEEKLY/SEMESTER ASSIGNMENTSWEEKLY/SEMESTER ASSIGNMENTS STUDENT CONTACT INFORMATIONSTUDENT CONTACT INFORMATION

THE POLICIES, PRACTICES AND SYSTEMS THAT INFLUENCE THE WORKFORCE

WHAT IS PEOPLE MANAGEMENT?WHAT IS PEOPLE MANAGEMENT?

HR MANAGEMENT IS COMPOSED OF SEVERAL GROUPS HR MANAGEMENT IS COMPOSED OF SEVERAL GROUPS OF INTERLINKED ACTIVITIES (TEXTBOOK EXAMPLES)OF INTERLINKED ACTIVITIES (TEXTBOOK EXAMPLES)

ORGANIZATIONAL DESIGNORGANIZATIONAL DESIGN STAFFINGSTAFFING PERFORMANCE MANAGEMENT AND APPRAISALPERFORMANCE MANAGEMENT AND APPRAISAL EMPLOYEE TRAINING AND ORGANIZATIONAL EMPLOYEE TRAINING AND ORGANIZATIONAL

DEVELOPMENTDEVELOPMENT REWARD SYSTEMS, BENEFITS AND COMPLIANCEREWARD SYSTEMS, BENEFITS AND COMPLIANCE

HUMAN CAPITAL MANAGEMENT HUMAN CAPITAL MANAGEMENT ACTIVITIESACTIVITIES

HUMAN CAPITAL MANAGEMENT HUMAN CAPITAL MANAGEMENT SUBSYSTEMSSUBSYSTEMS

rewards

maintenance

selectiondevelopment

rewards

organizationdevelopment

evaluation

HCM OVERLAPPING CIRCLES MODELHCM OVERLAPPING CIRCLES MODEL

CONCLUSIONS?CONCLUSIONS?

COMPARISON OF HR APPROACHESCOMPARISON OF HR APPROACHES

TEXTBOOKTEXTBOOK CIRCLES MODELCIRCLES MODEL

ORGANIZATIONAL DESIGNORGANIZATIONAL DESIGN ORGANIZATIONORGANIZATION

STAFFINGSTAFFING SELECTIONSELECTION

PERFORMANCE PERFORMANCE MANAGEMENT AND MANAGEMENT AND APPRAISALAPPRAISAL

EVALUATIONEVALUATION

REWARD SYSTEMS, BENEFITS REWARD SYSTEMS, BENEFITS AND COMPLIANCEAND COMPLIANCE

REWARDSREWARDS

EMPLOYEE TRAINING AND EMPLOYEE TRAINING AND ORGANIZATIONAL ORGANIZATIONAL DEVELOPMENTDEVELOPMENT

DEVELOPMENTDEVELOPMENT

REWARD SYSTEMS, BENEFITS REWARD SYSTEMS, BENEFITS

AND COMPLIANCEAND COMPLIANCE MAINTENANCEMAINTENANCE

COMPARISON OF HR APPROACHESCOMPARISON OF HR APPROACHES

IF HR FUNCTIONS CAN BE COMPARED TO IF HR FUNCTIONS CAN BE COMPARED TO DOTS, WHAT IS MOST IMPORTANT?DOTS, WHAT IS MOST IMPORTANT?

1.1. COUNTING THE NUMBER OF DOTS?COUNTING THE NUMBER OF DOTS?

2.2. KNOW THE CONTENT OF THE DOTS?KNOW THE CONTENT OF THE DOTS?

3.3. KNOW VALUE OF THE CONTENT OF THE DOTSKNOW VALUE OF THE CONTENT OF THE DOTS

4.4. PACKAGING THE DOTS?PACKAGING THE DOTS?

5.5. MEASURING THE DOTS?MEASURING THE DOTS?

6.6. CONNECTING THE DOTS?CONNECTING THE DOTS?

7.7. ______________________?______________________?

MAJOR TRENDS MAJOR TRENDS AFFECTING HRM/HCMAFFECTING HRM/HCM

INCREASED GLOBALIZATION TECHNOLOGICAL CHANGES CHANGING BUSINESS ENVIRONMENT INCREASED LITIGATION RELATED

TO HRM CHANGING CHARACTERISTICS OF

THE WORKFORCE

MAJOR HCM CHALLENGESMAJOR HCM CHALLENGESPERSPECTIVE CHALLENGE

METRICS CHALLENGE

EXECUTION CHALLENGE

WORKFORCE SCORECARDWORKFORCE SCORECARD1.1. IDENTIFY AND DEFINE OUTCOME MEASURES IDENTIFY AND DEFINE OUTCOME MEASURES

RELATED TO STRATEGYRELATED TO STRATEGY

2.2. TRANSLATE OUTCOME MEASURES INTO ACTION TRANSLATE OUTCOME MEASURES INTO ACTION AND ACCOUNTABILITYAND ACCOUNTABILITY

3.3. DEVELOP DESCRIPTION OF IMPROVEMENTSDEVELOP DESCRIPTION OF IMPROVEMENTS

4.4. IDENTIFY LOW AND HIGH PERFORMING IDENTIFY LOW AND HIGH PERFORMING EMPLOYEES AND INCENTIVE PROGRAM TIED TO EMPLOYEES AND INCENTIVE PROGRAM TIED TO PERFORMANCEPERFORMANCE

5.5. DEVELOP SUPPORTING MANAGEMENT AND DEVELOP SUPPORTING MANAGEMENT AND MEASUREMENT SYSTEMSMEASUREMENT SYSTEMS

6.6. SPECIFY LEADERSHIP ROLES AND LINK TO SPECIFY LEADERSHIP ROLES AND LINK TO STRATEGY EXECUTION STRATEGY EXECUTION

SCANNING THE EXTERNAL ENVIRONMENTSCANNING THE EXTERNAL ENVIRONMENT Government influencesGovernment influences Economic conditionsEconomic conditions Geographic and competitive concernsGeographic and competitive concerns Technological changesTechnological changes Social valuesSocial values

INTERNAL ASSESSMENT OF ORGANIZATIONAL WORKFORCEINTERNAL ASSESSMENT OF ORGANIZATIONAL WORKFORCE Organizational cultureOrganizational culture Auditing jobs and skills Auditing jobs and skills Organizational capabilities inventory Organizational capabilities inventory

ComponentsComponents Using dataUsing data

INTERNAL AND EXTERNAL HR INTERNAL AND EXTERNAL HR IMPLICATIONS OF TRENDSIMPLICATIONS OF TRENDS

EXTERNAL FORCES ON HUMAN EXTERNAL FORCES ON HUMAN CAPITAL MANAGEMENTCAPITAL MANAGEMENT

rewards

maintenance

selectiondevelopment

rewards

organizationdevelopment

evaluation

TECHNOLOGYTECHNOLOGYCOMPETITIONCOMPETITION

VALUE VALUE

SHIFTSSHIFTS

LAWS AND REGULATIONLAWS AND REGULATIONECONOMICSECONOMICS

IMPACT OF LEGAL AND IMPACT OF LEGAL AND REGULATORY FORCES ON HRCREGULATORY FORCES ON HRC

rewards

maintenance

selectiondevelopment

rewards

organizationdevelopment

evaluation

WARNWARN

NLRANLRA

AGE ACTAGE ACT

PRIVACPRIVACYY

EO#11246EO#11246

VEVRAVEVRA

WRONGFUL WRONGFUL TERMINATIONTERMINATION

ADAADA

TITLE VII CRATITLE VII CRA

REHAB ACTREHAB ACT

FEHAFEHA

FLSAFLSA

EXAMPLE : MANAGING A HUMAN CAPITAL SURPLUSEXAMPLE : MANAGING A HUMAN CAPITAL SURPLUS

LEGAL IMPLICATIONLEGAL IMPLICATION ((WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACTWORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT))

HR SYSTEMS IMPLICATIONSHR SYSTEMS IMPLICATIONS IMPACT ON DIFFERENT FUNCTIONS OF HR INTERRELATIONSHIP OF IMPACTS ON DIFFERENT FUNCTIONS OF HR INFORMATION FLOWS

DOWNSIZING IMPACTDOWNSIZING IMPACT

CAUSES CONSEQUENCES MANAGING SURVIVORS OTHER LAWS AND LEGAL ISSUES INVOLVED

DOWNSIZING APPROACHESDOWNSIZING APPROACHES ATTRITION AND HIRING FREEZES EARLY RETIREMENT BUYOUTS PAY IN LIEU OF NOTICE LAYOFFS OUTPLACEMENT SERVICES

A SEA OF CHANGEA SEA OF CHANGE

Accelerated Accelerated technological changetechnological change

Very competitiveVery competitiveservice environment - service environment - “do more for less”“do more for less”

Global work placeGlobal work place Changing social & Changing social &

work / life valueswork / life values Changing employment Changing employment

contractcontract

HUMAN CAPITAL TRENDS IN NEW ECONOMYHUMAN CAPITAL TRENDS IN NEW ECONOMY Demographic ChangesDemographic Changes Diversity dynamicsDiversity dynamics Educated but not Educated but not

necessarily skilled necessarily skilled workforce - skill gapsworkforce - skill gaps

Continuous learning Continuous learning neededneeded

Regulation/DeregulationRegulation/Deregulation Changing composition of Changing composition of

“the family”“the family”

HISTORICALHISTORICAL DEVELOPMENT DEVELOPMENT OF THE FIELD OF THE FIELD

•PERSONNELPERSONNEL

•INDUSTRIAL RELATIONSINDUSTRIAL RELATIONS

•HUMAN RELATIONSHUMAN RELATIONS

•EMPLOYEE RELATIONSEMPLOYEE RELATIONS

•MANPOWER MANAGEMENTMANPOWER MANAGEMENT

•HUMAN RESOURCE ADMINISTRATIONHUMAN RESOURCE ADMINISTRATION

•HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT

• HUMAN CAPITAL MANAGEMENTHUMAN CAPITAL MANAGEMENT

•________________________________?________________________________?

KEY COMPARISONS IN KEY COMPARISONS IN EVOLUTION OF FIELDEVOLUTION OF FIELD

PEOPLE MANAGEMENTPEOPLE MANAGEMENT

HUMAN HUMAN RESOURCE RESOURCE

MANAGEMENTMANAGEMENT

HUMAN CAPITAL HUMAN CAPITAL MANAGEMENTMANAGEMENT

WHAT ARE THE KEY DIFFERENCES ?WHAT ARE THE KEY DIFFERENCES ?

PERSONNEL PERSONNEL MANAGEMENTMANAGEMENT

COMPARISON OF HR APPROACHESCOMPARISON OF HR APPROACHESCRITERIACRITERIA PERSONNELPERSONNEL HRMHRM HCMHCM

FOCUSFOCUS TACTICALTACTICAL

EXPENSEEXPENSE

EFFECIENCYEFFECIENCY

ADD VALUEADD VALUE

REVENUEREVENUE

EFFECTIVENESEFFECTIVENES

STRATEGIC VISIONSTRATEGIC VISION

ASSET INVESTMENTASSET INVESTMENT

METRICSMETRICS

CHANGECHANGE EVOLUTIONARYEVOLUTIONARY TRANSITORYTRANSITORY TRANSFORMATIONTRANSFORMATION

COMPETENCIESCOMPETENCIES ADMINISTRATIVEADMINISTRATIVE USE OF TOOLS USE OF TOOLS AND AND TECHNIQUESTECHNIQUES

COLLABORATIONCOLLABORATION

ROLEROLE EMPLOYEE EMPLOYEE CHAMPIONCHAMPION

FUNCTIONAL FUNCTIONAL EXPERTEXPERT

BUSINESS BUSINESS

PARTNERPARTNER

CORECORE COMPETENCIESCOMPETENCIES

Credibility Metrics Orientation Aligned With

Organizational Goals HR Competency Service Orientation Risk-taking Utilization of Technology

Planning Paradigm Systems Orientation Environmental

Sensitivity Principle Centered Consultation Creative/Innovative Body of Knowledge

HUMAN RESOURCES AND HUMAN CAPITAL MANAGEMENT

OVERLAPPING OVERLAPPING ROLESROLES

EMPLOYEECOMPANY

MANAGERHR DEPARTMENT

BALANCING AUTHORITYBALANCING AUTHORITY

TOP MANAGEMENT

LINE STAFF

WHAT ARE THEY? APPLY TO HRM/HRIS ?WHAT ARE THEY? APPLY TO HRM/HRIS ?

STAFF AUTHORITYSTAFF AUTHORITY•PURE ADVISORYPURE ADVISORY

•AUDITINGAUDITING

•COMPULSORYCOMPULSORY

•CONCURRING/VETOCONCURRING/VETO

•FUNCTIONALFUNCTIONAL

CHANGES IN HRM ROLESCHANGES IN HRM ROLES

•SERVANTSERVANT

•SERVICESERVICE

•TACTICALTACTICAL

•STRATEGIC STRATEGIC

•VISIONARY VISIONARY

CHANGES IN HRM ROLESCHANGES IN HRM ROLESSTRATEGIC FOCUSSTRATEGIC FOCUS

OPERATIONAL FOCUSOPERATIONAL FOCUS

PEOPLEPEOPLESYSTEMSSYSTEMS

CHANGE AGENTCHANGE AGENT

EMPLOYEE CHAMPIONEMPLOYEE CHAMPION

STRATEGIC PARTNERSTRATEGIC PARTNER

ADMINISTRATIVE EXPERTADMINISTRATIVE EXPERT

ULRICH, 1998

HIERARCHY OF PLANNINGHIERARCHY OF PLANNING

VISIONVISION = GENERAL PURPOSE OF COMPANYGENERAL PURPOSE OF COMPANY

MISSIONMISSION= CURRENT/FUTURE DIRECTIONCURRENT/FUTURE DIRECTION

OBJECTIVESOBJECTIVES= FUNCTIONAL GOALSFUNCTIONAL GOALS

STRATEGYSTRATEGY= INTEGRATED GOALS/ACTIONSINTEGRATED GOALS/ACTIONS

POLICIESPOLICIES= GOALS TO SUPPORT STRATEGYGOALS TO SUPPORT STRATEGY

PROGRAMSPROGRAMS=CAPITALS SUPPORT POLICYCAPITALS SUPPORT POLICY

PROCEDURESPROCEDURES= STEPS SUPPORT POLICIESSTEPS SUPPORT POLICIES

RULESRULES = TASKS TO SUPPORT PROCEDURESTASKS TO SUPPORT PROCEDURES

TYPICAL HR ROLES IN TYPICAL HR ROLES IN

PLANNING HIERARCHYPLANNING HIERARCHY VISIONVISION = CHCOCHCO

MISSIONMISSION= VP OF HRVP OF HR

OBJECTIVESOBJECTIVES= VP OF HR AND DIRECTORSVP OF HR AND DIRECTORS

STRATEGYSTRATEGY= HR MANAGERS AND DIRECTORSHR MANAGERS AND DIRECTORS

POLICIESPOLICIES= HR MANAGERS AND ANALYSTSHR MANAGERS AND ANALYSTS

PROGRAMSPROGRAMS=HR ADMINISTRATORSHR ADMINISTRATORS

PROCEDURESPROCEDURES= HR CLERKHR CLERK

RULESRULES = HR ASSISTANTHR ASSISTANT

STRATEGIC HIERARCHY AND STRATEGIC HIERARCHY AND COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE

CORPORATE STRATEGY

BUSINESS LEVEL STRATEGYBUSINESS LEVEL STRATEGY BUSINESS LEVEL STRATEGYBUSINESS LEVEL STRATEGY

FUNCTIONAL/DEPT. LEVEL FUNCTIONAL/DEPT. LEVEL

HRMHRM

DEPARTMENT/AREA LEVEL DEPARTMENT/AREA LEVEL

HRISHRIS

COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE

COMPETITIVE ADVANTAGE

CUSTOMER VALUE SOURCE UNIQUENESS

WHAT ARE THEY? APPLY TO HRM/HRIS ?WHAT ARE THEY? APPLY TO HRM/HRIS ?

VALUE-ADDED ELEMENTSVALUE-ADDED ELEMENTS

VISION/MISSION DRIVENVISION/MISSION DRIVENBOTTOM-LINE ORIENTEDBOTTOM-LINE ORIENTEDBALANCEDBALANCEDMEASUREABLEMEASUREABLE

SWOTSWOT STRATEGIC STRATEGIC PLANNING MODELPLANNING MODEL

ENTERPRISEENTERPRISE

HR FUNCTIONHR FUNCTION

ALIGNMENT?ALIGNMENT?ss

ss ww

ww

TT

TT

OO

OO

CAN YOU PROVIDE EXAMPLES?CAN YOU PROVIDE EXAMPLES?

INTERNALINTERNAL

EXTERNALEXTERNAL

STRATEGIC FIT MATRIXSTRATEGIC FIT MATRIX

STAGE/FACTORSTAGE/FACTOR INTRODUCTION GROWTH MATURITY DECLINE

FUNCTIONAL FOCUS

RESEARCH AND RESEARCH AND DEVELOPMENTDEVELOPMENT

SALES AND SALES AND MARKETINGMARKETING

FINANCE AND FINANCE AND PRODUCTIONPRODUCTION

FINANCE AND FINANCE AND HRMHRM

STRATEGIC FOCUS

DIFFERENTIATIONDIFFERENTIATION DIFFERENTIATIONDIFFERENTIATION FOCUS COST FOCUS COST LEADERSHIPLEADERSHIP

GENERAL COST GENERAL COST LEADERSHIPLEADERSHIP

HR FOCUS/ MANAGEMENT STYLE?

?? ?? ?? ??

HR ALIGNMENT WITH LIFE CYCLE?HR ALIGNMENT WITH LIFE CYCLE?

WOULD LIFE CYCLE MODELS HELP?WOULD LIFE CYCLE MODELS HELP?

BUS. 251 CLASS EXERCISEBUS. 251 CLASS EXERCISE

3XTECH ORGANIZATIONAL STRUCTURE 3XTECH ORGANIZATIONAL STRUCTURE AND HUMAN CAPITAL MANAGEMENTAND HUMAN CAPITAL MANAGEMENT

DEVELOP IDEAL STRUCTURE DEVELOP IDEAL STRUCTURE PRIORITY/PLACEMENT OF HRMPRIORITY/PLACEMENT OF HRM ROLE OF METRICS ROLE OF METRICS FUTURE ROLE OF HRM IN STRATEGY FUTURE ROLE OF HRM IN STRATEGY WHICH EMPLOYMENT LAWS COVER 3XTECHWHICH EMPLOYMENT LAWS COVER 3XTECH BEST PERSON TO LEAD 3XTECHBEST PERSON TO LEAD 3XTECH RESPOND TO QUESTIONSRESPOND TO QUESTIONS

CASE ANALYSIS FORMATCASE ANALYSIS FORMAT