Human resource management

Jussi LeponiemiJussi.tapani.leponiemi@gmail.com

+358-44-2387860

The “New” HRD• Employees as org. assets• Driving business strategy• Spanning organizational functions• HRD Deliverables:

– Performance– Capacity Building– Problem solving/consulting– Org. change and development

The “New” HRD• Employees as org. assets• Driving business strategy• Spanning organizational functions• HRD Deliverables:

– Performance– Capacity Building– Problem solving/consulting– Org. change and development

Strategic HRD

• Integration of HRD with strategy formulation and implementation

• Long-term view of HR policy• Horizontal integration among HR functions• Vertical integration with corporate strategy• SHR as core competitive advantage

Firm Capitals• Human Capital

– Knowledge, skills, abilities of individuals• Social Capital

– Relationships in social networks• Structural, cognitive, relational dimensions

• Intellectual capital– Knowledge and knowing capability of social collectivities

• Procedural/declarative; tacit/explicit; individual/social

• Value and Uniqueness of capitals

Multiple Roles for HR (Ulrich, 1997)

Future/Strategic Focus

Day-to-day/Operational Focus

Processes People

Mgmt of SHR Mgmt of Trans-Formation/Change

Mgmt of FirmInfrastructure

Mgmt of EmployeeContributions

Definition of HR Roles

Role/Cell Deliverable/Outcome

Metaphor Core Activity

Mgmt of SHR Executing corp. strategy

Strategic Partner Aligning HR and bus. Strategy

Mgmt of Firm Infrastructure

Building an efficient infrastructure

Administrative Expert

Reengineering org. Processes

Mgmt of Employee Contributions

Increasing employee commitment and capability

Employee Champion

Providing resources to employees

Mgmt of Transformation/Change

Organizational renewal

Change Agent Managing transformation and change,

Universal/Best Practice Models

• TQM– Corporate culture, communications, voice/involvement, job design,

training, performance measurement/evaluation, rewards, health/safety, selection/promotion, career development

• Peters and Waterman “In search of excellence”– Org. culture, leadership, customer focus, core competency

• High involvement management (Lawler)– Developing skills and knowledge, pay for performance, investment in HR,

flexible operations, self-designing work systems, autonomous work-teams

Universal HR Models• Pfeffer (1998)

– Employment security– Selective hiring– Self-managed teams/decentralization of decision-making– Comparatively high pay linked to firm performance– Extensive training – Reduction of status differentials– Shared information

• Quality Awards (M. Baldrige, State Awards, etc.)– HR Focus (work systems, education/training, well-being and

satisfaction)

Human Capital Architecture

Uniqueness of HC: High

Uniqueness of HC: Low

HC

Val

ue: L

ow

HC

Val

ue: H

igh

Quadrant 1:Empl’t Mode: Internal developmentEmpl’t Rel.: Organization focusedHR Configuration: Commitment

Quadrant 2:Empl’t Mode: AcquisitionEmpl’t Rel.: SymbioticHR Configuration: Market-based

Quadrant 3:Empl’t Mode: ContractingEmpl’t Rel.: TransactionalHR Configuration: Compliance

Quadrant 4:Empl’t Mode: AllianceEmpl’t Rel.: PartnershipHR Configuration: Collaborative

Architecture of Intellectual Capital

Uniqueness of IC: High

Uniqueness of IC: Low

IC V

alue

: Low

IC V

alue

: Hig

h

Core Knowledge

Compulsory KnowledgeAncillary Knowledge

Idiosyncratic Knowledge

Strategic HRD Roles

• Swanson/Toracco (1995):

• Helping implement strategy• Helping determine strategy• Setting strategy

HR Capitals• Human Capital

– Individual level store of knowledge, skills, abilities (e.g., Becker)

• Social Capital– Group level, network characteristics, density, centrality,

marginality (e.g., Adler and Kwon, 2002)• Intellectual Capital

– Firm-level, formal (e.g., patents), informal (e.g., process knowledge (e.g., Nahapiet & Ghoshal, 1999)

Johnson Diversey CaseCurrent vs. Future State of HR

Strategic Partner Change Agent

Administrative Expert Employee Advocate

35

20

2540

Current vs. Future State of HR

Strategic Partner Change Agent

Administrative Expert Employee Advocate

35

20

2540

Organization Development Roles & Responsibilities

• The OD CEO has a dual responsibilityo Global implementation of strategic interventions

Cultural assessment and alignment Performance Management Succession Planning Leadership Bench strength

o Support to HRs on regional and client interventions Process improvement tools Intervention design Knowledge transfer of OD skills

Global OD Model

HR Business Partners

Leadership Team

HR/OD

Business Strategy

Solutions Emerging Needs/

Feedback

MeasuresOf

Effectiveness

Global OD Services• Program Management of global initiatives -

– Core Employee Development– ES&D– Performance Management– Leadership Development – Consultation with senior leaders regarding - – Customized interventions– Assessment tools

• Services contracted with HRs (based on the capacity of the OD COE) - – Regional OD intervention design

HRD Definitions

HRD is…“the integrated use of training and

development, organization development, and career development to improve individual, group, and organizational effectiveness.” (McLagan, 1989)

HRD Definitions

HRD is…“a process of developing and/or unleashing

human expertise through organization development and personnel training and development for the purpose of improving performance.” (Swanson, 1995)

Example: Multinational Corporation

• Abbott Laboratories• 60,000+ employees in 120 countries• Five divisions• Corporate and division level HRD• Director of Training and Organizational Development, Ph.D. HRD• Staff of 15 (instructional designers, trainers, OD consultants)• Performance Management, Leadership Development, Quality

Management, Expatriate Training, New employee orientation, regulatory/mandated training

• Diversity Initiatives• Clients: Everybody!• Divisional and corporate roles (committees, councils, strategic planning)

Trends in Professional HRD Work

• Higher Visibility• Higher Accountability• Greater Cross-Functional Involvement• Higher Performance Demands• Multiple Projects• Greater need for comprehensive business knowledge• Need for solid research and theory know-how

Definition of HRD

• A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.

Line versus Staff Authority

• Line Authority – given to managers directly responsible for the production of goods and services (direct function)

• Staff Authority – given to units that advise and consult line units

Limits of Authority

• HRM & HRD units have staff authority (Overhead function)

• Line authority takes precedence• Scope of authority – how far (how much) can

you authorize?

Critical HRD Issues

• Strategic management and HRD• The supervisor’s role in HRD• Organizational structure of HRD

Strategic Management & HRD

• Strategic management aims to ensure organizational effectiveness for the foreseeable future – e.g., maximizing profits in the next 3 to 5 years

• HRD aims to get managers and workers ready for new products, procedures, and materials

Supervisor’s Role in HRD

• Implements HRD programs and procedures• On-the-job training (OJT)• Coaching/mentoring/counseling• Career and employee development• A “front-line participant” in HRD

Organizational Structure of HRD Departments

• Depends on company size, industry and maturity

• No single structure used• Depends in large part on how well the HRD

manager becomes an institutional part of the company – i.e., a revenue contributor, not just a revenue user

HRD Organization in a Large Company

HR Manager Role

• Integrates HRD with organizational goals and strategies

• Promotes HRD as a profit enhancer• Tailors HRD to corporate needs and budget• Institutionalizes performance enhancement

HR Strategic Advisor Role

• Consults with corporate strategic thinkers• Helps to articulate goals and strategies• Develops HR plans• Develops strategic planning education and

training programs

HR Systems Designer/Developer

• Assists HR manager in the design and development of HR systems

• Designs HR programs• Develops intervention strategies• Plans HR implementation actions

Organization Change Agent

• Develops more efficient work teams• Improves quality management• Implements intervention strategies• Develops change reports

Organization Design Consultant

• Designs work systems• Develops effective alternative work designs• Implements changed systems

Learning Program Specialist

• Identifies needs of learners• Develops and designs learning programs• Prepares learning materials and learning aids• Develops program objectives, lesson plans,

and strategies

Instructor/Facilitator

• Presents learning materials• Leads and facilitates structured learning

experiences• Selects appropriate instructional methods and

techniques• Delivers instruction

Individual Development and Career Counselor

• Assists individuals in career planning• Develops individual assessments• Facilitates career workshops• Provides career guidance

Performance Consultant (Coach)

• Advises line management on appropriate interventions to improve individual and group performance

• Provides intervention strategies• Develops and provides coaching designs• Implements coaching activities

Researcher

• Assesses HRD practices and programs• Determines HRD program effectiveness • Develops requirements for changing HRD

programs to address current and future problems

Challenges for HRD

• Changing workforce demographics• Competing in global economy• Eliminating the skills gap• Need for lifelong learning• Need for organizational learning

Changing Demographics in the U.S. Workplace

By 2020, it is predicted that:• African-Americans will remain at 11%• Hispanics will increase from 9% to 14%• Asians will increase from 4% to 6%• Whites will decrease from 76% to 68%• Women will increase from 46% to 50%• Older workers (>55) will increase to 25%

Competing in the Global Economy

• New technologies• Need for more skilled and educated workers• Cultural sensitivity required• Team involvement• Problem solving• Better communications skills

Eliminating the Skills Gap

• US example: In South Carolina, 47% of entering high school freshmen don’t graduate.– Best state is Vermont, with 81% graduating

• Employees need to be taught basic skills:– Math– Reading– Applied subjects

• Need to improve U.S. schools??

Need for Lifelong Learning

• Organizations change• Technologies change• Products change• Processes change• Should people change too?

Need for Organizational Learning

• Organizations must be able to learn, adapt, and change

• Principles:– Systems thinking– Personal mastery– Mental models– Shared visions– Team learning

A Framework for the HRD Process

HRD efforts should use the following four phases (or stages):

• Needs assessment• Design• Implementation• Evaluation

(“A DImE”)

Training & HRD Process Model

Needs Assessment Phase

• Establishing HRD priorities• Defining specific training and objectives• Establishing evaluation criteria

Design Phase

• Selecting who delivers program• Selecting and developing program content• Scheduling the training program

Implementation phase• Implementing or delivering the program

Evaluation Phase

Determining program effectiveness – e.g.,• Keep or change providers?• Offer it again?• What are the true costs?• Can we do it another way?

Summary on HRD

• HRD is too important to be left to amateurs• HRD should be a revenue producer, not a

revenue user• HRD should be a central part of company• You need to be able to talk MONEY

Some Characteristics of a good Human Resources Strategy

Three key elements:• Diagnostic – a comprehensive and systematic evaluation of current

practice and performance to identify both where improvement is required and where policies and institutions are working well

• Aspirational – a vision of effective HR practices which produce specific outcomes that contribute to achieving the institution’s strategy, underpinned by clear values and principles

• Developmental – a plan for achieving progress and building greater capacity to bring about change in the future (bearing in mind that effective human resource management depends as much on good quality line management as it does on skilled human resorce professionals)

Clear Targets

SMART targets – specific, measurable, agreed, realistic, time-limited

Input targets eg appointing a new member of staffProcess targets eg developing new policies or procedures, or

undertaking a review of practiceOutput targets eg producing a report introducing a new payments or

job evaluation schemeOutcome targets eg increasing the number of women in management

positions or the proportion of people with disabilities

Performance measures

Project management – subprojects, milestones

Resource Allocation

• MUST be a clear link between human resource plans and resource allocation

• Clarity of approach: actions-responsibilities-outcomes-timescale-cost

Monitoring

• Assessment of progress against input. Process and output targets• Summative evaluation – what works and what doesn’t work.

Formative process• Problems of identifying cause and effect• Importance of good feedback

Implementation is assisted by:• Adequate levels of involvement• Feedback on performance• Focus on what is achievable• Clear allocation of responsibilities• Effective training and support• Incentives and rewards

Key Issues: Recruitment and Retention

• Data collection• Comparative analysis• Identification of problems – particular disciplines (eg computing,

management, economics), particular categories of staff (eg electronics technicians, cleaners), particular regions (eg big cities)

• Some possible actions – improving the recruitment process, startup packages, pay and rewards, market supplements, job evaluation, career routes, fast-track promotion, training and development

Key Issues: Staff Development and Training

• Necessary to enhance the institution’s skills and knowledge base• Important to identify needs at ALL levels• All categories of staff should be involved• Programmes require regular evaluation – problems of relevance

Different forms of staff development:• Induction programmes• Programmes for new academic staff (often linked with probation)• Skills programmes – particular activities, new technology, updating• Management development programmes – leadership and

management

Key Issues: Equal Opportunities -> Diversity management

• Data collection• Staff development• Possible actions – awareness raising, flexible working,

improvements to recruitment processes and literature, targeted skills development, progression

• Job evaluation – equal pay for equal work, promotions based on work-related issues

Key Issues: Staff Profiles

• Data collection• Audit of existing staff – current staff numbers, distribution by

grade/level of responsibility, skills profiles, age profiles (succession planning, “new blood”), patterns of leavers and joiners (high and low turnover), which posts are difficult to fill, staffing costs, gender profiles, pay distribution

• External environment – national and local labour markets, comparative analysis

• Link with institutional strategies – where will more/less staff be needed

• Possible actions – training/retraining, redeployment, severance

Key Issues: Performance

• Performance review – vital in improving staff effort• Must be regular• All staff are entitled to feedback• Formative process• Rewarding good performance – monetary and non-monetary• Tackling poor performance – clear agreed targets, opportunities for

training, monitoring, training for managers, clear disciplinary procedures (including appeals)

Staff Development for Professional Services

• Career development – recruitment, training and enhancement, performance and rewards, retention

• Training programmes for new staff in professional services (wide range of backgrounds)

• Specialist training and career development – professional qualifications

• Training programmes for senior staff in professional services• Formal programmes; Continuing Professional Development• Some particular themes – broadening and deepening, sharing

expertise and experience, formative and process benchmarking, leadership and management