Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

47
Mgmt 383 Mgmt 383 Chapter 1 Chapter 1 The Changing Nature of The Changing Nature of HRM HRM Fall 2008 Fall 2008

Transcript of Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Page 1: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Mgmt 383Mgmt 383

Chapter 1Chapter 1

The Changing Nature of HRMThe Changing Nature of HRM

Fall 2008Fall 2008

Page 2: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

SOBA and UM Policy:

No Food or Drink in the Classroom

Page 3: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Course SyllabusCourse Syllabus

• Due to budget constraints, I will no longer Due to budget constraints, I will no longer be handing out course syllabi. You may be handing out course syllabi. You may download the syllabus from my WebPage:download the syllabus from my WebPage:

http://faculty.bus.olemiss.edu/brobinson/http://faculty.bus.olemiss.edu/brobinson/

Page 4: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Are You Getting Ready?Are You Getting Ready?• INDUSTRY: INDUSTRY: ManufacturingManufacturing            

TITLE:  TITLE:  HR Manager HR Manager LOCATION:  LOCATION:  Gulfport, MS Gulfport, MS COMPENSATION:  COMPENSATION:  $60-90K flex, Benefits $60-90K flex, Benefits RELOCATION:  RELOCATION:  Paid Paid

SUMMARY: SUMMARY: A world leader in providing A world leader in providing engineering thermoplastics materials solutions in engineering thermoplastics materials solutions in more than 60 countries worldwide, we help redefine more than 60 countries worldwide, we help redefine the way OEMs [original equipment manufacturers] the way OEMs [original equipment manufacturers] design -- from concept to reality. design -- from concept to reality. The candidate will The candidate will be responsible for all Human Resources (HR) be responsible for all Human Resources (HR) activitiesactivities. Provide client support for all functions of . Provide client support for all functions of 120 employee-based world-class plastics 120 employee-based world-class plastics manufacturing facility. The candidate is required to:manufacturing facility. The candidate is required to:

Page 5: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Are You Getting Ready?Are You Getting Ready?• Provide overall HR responsibility for Provide overall HR responsibility for exempt/non-exempt teamsexempt/non-exempt teams

including including staffingstaffing, , trainingtraining, , leadership development/coachingleadership development/coaching, , career planningcareer planning, , performance managementperformance management, , compensationcompensation, , salary salary planningplanning, policy interpretation/development, communications, , policy interpretation/development, communications, benefitsbenefits, early ID program, leadership programs, , early ID program, leadership programs, cultural diversitycultural diversity, , affirmative actionaffirmative action, integrity policy enforcement/application & , integrity policy enforcement/application & employee satisfaction.employee satisfaction.

• Lead all Lead all staffingstaffing, , employee developmentemployee development, , compliance/business compliance/business leadership processesleadership processes as integral member of the site leadership staff. as integral member of the site leadership staff.

• Implement Implement strategic HRstrategic HR initiatives to create strong culture of leaders initiatives to create strong culture of leaders & high-performing teams.& high-performing teams.

• Lead change initiatives to drive organizational effectiveness, talent Lead change initiatives to drive organizational effectiveness, talent development for operations, both technology & commercial.development for operations, both technology & commercial.

• Participate in Company-wide HR initiatives including leadership Participate in Company-wide HR initiatives including leadership development.development.

• Responsible for community/public affairs including community Responsible for community/public affairs including community donations, appearance & all media contacts.donations, appearance & all media contacts.

Page 6: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Four Types of Assets in Four Types of Assets in OrganizationsOrganizations

• Physical (Plant & Equipment)Physical (Plant & Equipment)• Financial (Fiscal)Financial (Fiscal)• Intangible (Information)Intangible (Information)• HumanHuman

Page 7: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Management of Human Capital in Management of Human Capital in OrganizationsOrganizations

• Human CapitalHuman Capital (Organizational)(Organizational) - The sum of - The sum of capabilities, knowledge, skills, life experience, capabilities, knowledge, skills, life experience, and motivation of an organizational workforce.and motivation of an organizational workforce.• It is the KSA that a business needs in order to It is the KSA that a business needs in order to

accomplish its goals.accomplish its goals.

• It is also known as It is also known as intellectual capitalintellectual capital..

• Human Capital produces demonstrable value for Human Capital produces demonstrable value for an organization, especially in an organization, especially in labor intensive labor intensive industriesindustries (hospitality, retail, service, e.g.). (hospitality, retail, service, e.g.).

Page 8: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Core CompetencyCore Competency

• Core Competency - a unique capability that Core Competency - a unique capability that creates high value for customers and creates high value for customers and differentiates a firm from its competitors.differentiates a firm from its competitors.• Possessing a unique technology (product or Possessing a unique technology (product or

manufacturing).manufacturing).• Possessing a workforce with unique capabilities Possessing a workforce with unique capabilities

(skills competitors cannot access, more (skills competitors cannot access, more motivated employees, etc.)motivated employees, etc.)

Page 9: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

The HR ActivitiesThe HR Activities• Strategic HRM Strategic HRM (a.k.a., HRP)(a.k.a., HRP)• Equal Employment Opportunity Equal Employment Opportunity (a.k.a., (a.k.a.,

Regulatory Compliance)Regulatory Compliance)• Staffing Staffing (a.k.a., Recruiting & Selection)(a.k.a., Recruiting & Selection)• Talent Management Talent Management ((a.k.a. a.k.a. Training & Training &

Development, HR Development )Development, HR Development )• Total Rewards Total Rewards (a.k.a., Compensation & Benefits)(a.k.a., Compensation & Benefits)• Risk Management & Worker Protection Risk Management & Worker Protection (a.k.a., (a.k.a.,

Health, Safety, & Security)Health, Safety, & Security)• Employee & Labor Relations Employee & Labor Relations (a.k.a., Industrial (a.k.a., Industrial

Relations)Relations)

Page 10: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Strategic HRMStrategic HRM

• HR Planning (HRP)HR Planning (HRP)• Anticipating/forecasting future HR Anticipating/forecasting future HR

supply and demand.supply and demand.

• HR MeasurementHR Measurement• Providing for measures of HR Providing for measures of HR

effectiveness effectiveness

• HR Technology (HRMS/HRIS)HR Technology (HRMS/HRIS)• HR RetentionHR Retention

Page 11: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Equal Employment OpportunityEqual Employment Opportunity

• Regulatory compliance with employment Regulatory compliance with employment laws.laws.• Civil Rights Act of 1964, Title VIICivil Rights Act of 1964, Title VII• ADEAADEA• ADAADA• EPA (Equal Pay Act)EPA (Equal Pay Act)• FLSAFLSA

• DiversityDiversity• Affirmative actionAffirmative action

Page 12: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

StaffingStaffing

• Job analysis.Job analysis.

• Job descriptions.Job descriptions.

• Job specifications.Job specifications.

• Performance standards.Performance standards.• Recruiting.Recruiting.• Selection.Selection.

Page 13: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Talent ManagementTalent Management

• Employee orientation. Employee orientation. • HR Training.HR Training.

• Training needs analysis.Training needs analysis.• Job skill training.Job skill training.

• HR Development.HR Development.• Career planning.Career planning.• Performance managementPerformance management (assessing (assessing

employee performance).employee performance).

Page 14: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Compensation & BenefitsCompensation & Benefits

• Compensation Compensation • Wage & Salary Administration Wage & Salary Administration • Performance v. entitlement pay systems.Performance v. entitlement pay systems.• Merit-based v. seniority based pay systems.Merit-based v. seniority based pay systems.

• Incentives Incentives • IndividualIndividual• GroupGroup• OrganizationalOrganizational

• BenefitsBenefits• Cost v. employee retention.Cost v. employee retention.

Page 15: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Risk Management & Worker Risk Management & Worker ProtectionProtection

• HealthHealth – reducing work-related – reducing work-related illnesses.illnesses.• Employee assistance programs (EAP).Employee assistance programs (EAP).• Wellness programs.Wellness programs.

• SafetySafety – reducing work-related – reducing work-related injuries.injuries.

• SecuritySecurity –providing a secure work –providing a secure work environment.environment.

• Disaster and Recovery PlanningDisaster and Recovery Planning

Page 16: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Employee & Labor RelationsEmployee & Labor Relations

• Employee rights and responsibilities in Employee rights and responsibilities in the workplace.the workplace.

• Privacy concerns.Privacy concerns.• Developing HR policies, employment Developing HR policies, employment

practices and work rules.practices and work rules.• IR in organized (unionized) work IR in organized (unionized) work

places, contract administration.places, contract administration.

Page 17: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Size and the HR JobSize and the HR Job

• HR’s job varies based on the size of the HR’s job varies based on the size of the organization.organization.• HR GeneralistHR Generalist are typically found in small to are typically found in small to

medium size businesses.medium size businesses.• HR SpecialistsHR Specialists do not usually appear until do not usually appear until

large HR departments can be supported, usually large HR departments can be supported, usually large companies.large companies.

Page 18: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Concerns in Small BusinessesConcerns in Small Businesses

• Small businesses account annually for 60-Small businesses account annually for 60-80% of new job growth and 80% of new job growth and >>50% of total 50% of total U.S. employment.U.S. employment.

• Primary concernsPrimary concerns• Shortage of qualified workersShortage of qualified workers• Increasing benefits costsIncreasing benefits costs• Increasing taxesIncreasing taxes• Regulatory compliance.Regulatory compliance.

Page 19: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Three Organizational Roles of Three Organizational Roles of HRMHRM

• Administrative Role Administrative Role [[50%50% (59%)] (59%)]

• Operational Role Operational Role [[30%30% (35%)] (35%)]

• Strategic Role Strategic Role [[20%20% (6%)] (6%)]

Page 20: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

The Administrative Role of The Administrative Role of HRMHRM

• Administrative RoleAdministrative Role – focus is on clerical – focus is on clerical administration and records keeping. administration and records keeping. • Day-to-day administering benefit programs.Day-to-day administering benefit programs.• Preparing EEO reports.Preparing EEO reports.• Conducting new employee orientations.Conducting new employee orientations.

• Two major changes are projected to reduce Two major changes are projected to reduce the time allocated to administrative tasks. :the time allocated to administrative tasks. :• IT improvementsIT improvements• OutsourcingOutsourcing

Page 21: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

The Operational Role of HRMThe Operational Role of HRM

• Operational RoleOperational Role – identifying and – identifying and implementing needed policies related to implementing needed policies related to implementation of strategic plans. implementation of strategic plans. • Cooperation with operational managers is Cooperation with operational managers is

crucial.crucial.• Developing EEO compliance policies.Developing EEO compliance policies.• Recruiting and selecting candidates for Recruiting and selecting candidates for

current openings.current openings.• Employee advocate role (grievance Employee advocate role (grievance

resolution, litigation avoidnce).resolution, litigation avoidnce).

Page 22: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

The Strategic Role of HRMThe Strategic Role of HRM

• Strategic RoleStrategic Role – Helping top management to – Helping top management to define strategy and effectively use of human define strategy and effectively use of human capital to gain a competitive advantage. capital to gain a competitive advantage. • HR Planning.HR Planning.• Monitoring evolving legal issues.Monitoring evolving legal issues.• Community workforce development.Community workforce development.• Organizational restructuring.Organizational restructuring.• Evaluating acquisitions and mergers.Evaluating acquisitions and mergers.• Planning compensation strategiesPlanning compensation strategies ..

Page 23: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Contributing at the TableContributing at the Table

• Examples of HR contributions:Examples of HR contributions:• Evaluating the viability of mergers & Evaluating the viability of mergers &

acquisitions (KSA, Staffing needs, structural acquisitions (KSA, Staffing needs, structural changes, etc.)changes, etc.)

• Conducting HRPConducting HRP• Identify attrition of critical KSAIdentify attrition of critical KSA• Planning for workforce expansion or contraction.Planning for workforce expansion or contraction.

• Leading site selection for new facilities or Leading site selection for new facilities or transferring operations internationally transferring operations internationally based on based on workforce needs..workforce needs..

Page 24: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Contributing at the TableContributing at the Table

• Examples of HR contributions:Examples of HR contributions:• Instituting a HRMS/HRIS to reduce Instituting a HRMS/HRIS to reduce

administrative time and expenses (including administrative time and expenses (including staff reductions).staff reductions).

• Working with top management to develop Working with top management to develop compensation strategies to motivate employees.compensation strategies to motivate employees.

• Sales incentives.Sales incentives.

• New product/service incentives.New product/service incentives.

• Profit sharing or gainsharing plans.Profit sharing or gainsharing plans.

Page 25: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Challenges Facing HRMChallenges Facing HRM

• Globalization of BusinessGlobalization of Business• International outsourcingInternational outsourcing

• Global competitionGlobal competition• Manufacturing to service economy (IT, Health care, Manufacturing to service economy (IT, Health care,

retail services, financial services)retail services, financial services)

• Labor costs are increasingly importantLabor costs are increasingly important

• Labor markets are internationalLabor markets are international

• Global expansionGlobal expansion

• HSS issues related to security and HSS issues related to security and terrorism.terrorism.

Page 26: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

• Off-shoringOff-shoring – contracting out goods or – contracting out goods or services to unaffiliated companies services to unaffiliated companies in in another countryanother country (licensing, e.g.). (licensing, e.g.).

• In-shoringIn-shoring – foreign business shifting their – foreign business shifting their business activates to the U.S.business activates to the U.S.

• OutsourcingOutsourcing - contracting out goods or - contracting out goods or services to unaffiliated companies services to unaffiliated companies either at either at home or overseashome or overseas..

Page 27: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Global Forces Impacting HR Global Forces Impacting HR ManagementManagement

• HR is a transnational process in MNCs.HR is a transnational process in MNCs.• ExpatriatesExpatriates• Host country nationalsHost country nationals• Third country nationalsThird country nationals

• Continued outsourcing of jobs to the Continued outsourcing of jobs to the developing world, especially India, PRC, developing world, especially India, PRC, Philippines, Mexico, etc.Philippines, Mexico, etc.

Page 28: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Economic & Technological Economic & Technological ChangesChanges

• Occupational ShiftsOccupational Shifts • U.S has shifted from manufacturing U.S has shifted from manufacturing

economy to a service economy (>80% of economy to a service economy (>80% of GDP is from services)GDP is from services)

• Heaavy growth predicted in healthcareHeaavy growth predicted in healthcare

Page 29: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Economic & Technological Economic & Technological ChangesChanges

• Occupational shifts Projected growth in jobs Occupational shifts Projected growth in jobs thru 2014 [BLS]:thru 2014 [BLS]:

• Home health aidesHome health aides 56.0%56.0%• Medical assistantsMedical assistants 52.1%52.1%• Computer software Computer software engineersengineers 48.4%48.4%• Personal and home care aidesPersonal and home care aides 41.0%41.0%• Postsecondary teachersPostsecondary teachers 32.2%32.2%• Accountants and auditorsAccountants and auditors 22.4%22.4%• Janitors and cleanersJanitors and cleaners 18.5%18.5%• Retail salespersonsRetail salespersons 17.3%17.3%• General and operations managersGeneral and operations managers 17.0%17.0%

Page 30: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Workforce Availability and Workforce Availability and Quality IssuesQuality Issues

• Increased demand for certain skills and knowledge, Increased demand for certain skills and knowledge, less demand for unskilled laborless demand for unskilled labor

• Education & TrainingEducation & Training• Over Over 50%50% of workforce will need training. of workforce will need training.

• Increasing illiteracy (About one in 20 adults is not literate in Increasing illiteracy (About one in 20 adults is not literate in English).English).

• Poor math/computer skills.Poor math/computer skills.• Public education system is failing to produce job-related KSA.Public education system is failing to produce job-related KSA.

• In 2005, halfIn 2005, half of all Cal. State freshmen need remedial of all Cal. State freshmen need remedial courses.courses.

• Over 57% of University of Illinois-Chicago freshmen took Over 57% of University of Illinois-Chicago freshmen took remedial math.remedial math.

• We do poorly in international educational comparisons.We do poorly in international educational comparisons.

Page 31: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Workforce Availability and Workforce Availability and Quality IssuesQuality Issues

• Education & TrainingEducation & Training• Standardized test scores have decline to the point that some are normed Standardized test scores have decline to the point that some are normed

annually.annually.

• Foreign studentsForeign students account for nearly 40% of graduate students in science account for nearly 40% of graduate students in science and engineering [Michael Mandel, Business Week Nov. 20, 2006]and engineering [Michael Mandel, Business Week Nov. 20, 2006]

• In 2005, only 61% of high school seniors performed at or above the In 2005, only 61% of high school seniors performed at or above the BasicBasic level, and 23 percent performed at or above level, and 23 percent performed at or above ProficientProficient. (National . (National Assessment of Education Progress)Assessment of Education Progress)

• HR responsesHR responses::• Emphasis on accurately assessing education skills of current and potential Emphasis on accurately assessing education skills of current and potential

employees.employees.

• More in-house literacy programs.More in-house literacy programs.

• More training at all levels in the organization.More training at all levels in the organization.

• Hiring Hiring inpatriates inpatriates [H-1B visas][H-1B visas]

Page 32: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Economic & Technological Economic & Technological ChangesChanges

• Growth in the Contingent WorkforceGrowth in the Contingent Workforce• TemporariesTemporaries

• Independent contractorsIndependent contractors

• Part-timePart-time

• Leased employeesLeased employees

• Reasons for the increased demand for Contingent Reasons for the increased demand for Contingent workers:workers:

• Paid lessPaid less

• Fewer benefitsFewer benefits

• Reduced exposure to litigationReduced exposure to litigation

Page 33: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Economic & Technological Economic & Technological ChangesChanges

• Technological Shifts & the InternetTechnological Shifts & the Internet• Technology enables more people to work from Technology enables more people to work from

home.home.• Technology means that more people (i.e., managers) Technology means that more people (i.e., managers)

are more “available.”are more “available.”• Technology means that more employees are “on Technology means that more employees are “on

call.”call.”• There is a rise of There is a rise of virtual employeesvirtual employees, those who do , those who do

not work on site.not work on site.• Computers also mean appropriate use policies.Computers also mean appropriate use policies.• Technology enhance HR functions through HRIS Technology enhance HR functions through HRIS

and OCI.and OCI.

Page 34: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Workforce Demographics & Workforce Demographics & DiversityDiversity

• More representation of ethnic minorities in More representation of ethnic minorities in workforceworkforce

• Multilingual workplaces.Multilingual workplaces.

• Educational & skill deficiencies.Educational & skill deficiencies.

• Underrepresentation in sciences and professions.Underrepresentation in sciences and professions.

• More individuals are calling themselves More individuals are calling themselves multi-racial (“two or more races”) indicating multi-racial (“two or more races”) indicating that the “melting pot” is very much alive.that the “melting pot” is very much alive.

Page 35: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Workforce Demographics & Workforce Demographics & DiversityDiversity

• Women are increasing in their participation in Women are increasing in their participation in the workforce.the workforce.• Demand for more flexible work hours.Demand for more flexible work hours.• Careers may have gaps.Careers may have gaps.• Job sharing child care concerns. Job sharing child care concerns. • Flexible leave.Flexible leave.

• More dual career couples (60% of all married More dual career couples (60% of all married couples). couples).

• People are marrying later (27/24).People are marrying later (27/24).• Same-sex arrangementsSame-sex arrangements

Page 36: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Workforce Demographics & Workforce Demographics & DiversityDiversity

• Balancing Family & WorkBalancing Family & Work• Two groups of female managers [Felice Two groups of female managers [Felice

Schwartz, Schwartz, Harvard Business ReviewHarvard Business Review, 1989] -, 1989] -an idea not popular in feminist circlesan idea not popular in feminist circles• Career-PrimaryCareer-Primary - career first, family - career first, family

second.second.• Career-and-FamilyCareer-and-Family - gravitate to middle - gravitate to middle

management jobs, accept less pay to devote management jobs, accept less pay to devote more time to families. May account for more time to families. May account for much of the pay inequity statistics.much of the pay inequity statistics.

Page 37: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Organizational Cost Pressures and Organizational Cost Pressures and RestructuringRestructuring

• Re-engineeringRe-engineering• Identifying & eliminating marginal activities.Identifying & eliminating marginal activities.

• Downsizing (a.k.a., Right-sizing) - Downsizing (a.k.a., Right-sizing) - Intentional Intentional reduction of the workforce.reduction of the workforce.

• May result from closing facilities.May result from closing facilities.

• Look out for Look out for Organizational Anemia.Organizational Anemia.

• Outsourcing Outsourcing (subcontracting)(subcontracting)• Merging with other companiesMerging with other companies (consider the airline (consider the airline

and computer industries).and computer industries).• Outplacing workersOutplacing workers

Page 38: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

HR TechnologyHR Technology

• Human Resource Management System Human Resource Management System (HRMS) –an integrated system provided (HRMS) –an integrated system provided information used in HR decision-making.information used in HR decision-making.• Enable more accurate and time work flow Enable more accurate and time work flow

analysis.analysis.• Reducing data collection and analysis.Reducing data collection and analysis.• Reduction of “paperwork.”Reduction of “paperwork.”

• A.k.a., HRISA.k.a., HRIS

Page 39: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

HR TechnologyHR Technology

• Typical uses of Typical uses of HR TechnologyHR Technology::• Bulletin boardsBulletin boards• Databases access by employees (intra- and Databases access by employees (intra- and

extranet access to information)extranet access to information)• Employee self-service (benefit enrollment, e.g.)Employee self-service (benefit enrollment, e.g.)• Extended linkageExtended linkage

• Access to venders and HR resourcesAccess to venders and HR resources• On-line trainingOn-line training• On-line recruitingOn-line recruiting

Page 40: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Ethics and HR ManagementEthics and HR Management

• Ethics - what ought to be done.Ethics - what ought to be done.• More than just legal compliance (there is More than just legal compliance (there is

right, there is wrong and there is the law).right, there is wrong and there is the law).• Ethical codes must answer two questions:Ethical codes must answer two questions:

(1)(1) Does the behavior conform with applicable Does the behavior conform with applicable laws, regulations, and government mandates?laws, regulations, and government mandates?

(2)(2) Does the behavior conform to both company Does the behavior conform to both company standards and professional standards of standards and professional standards of behavior?behavior?

Page 41: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Ethics and HR ManagementEthics and HR Management

• Examples of ethical dilemmas:Examples of ethical dilemmas:• Should employees be forced to quit smoking.Should employees be forced to quit smoking.• Should employees be fired for objecting to Should employees be fired for objecting to

alternative life styles on religious grounds?alternative life styles on religious grounds?• Should coworkers be informed if an employee Should coworkers be informed if an employee

has a serious communicable disease.has a serious communicable disease.• Should employees be informed that they are Should employees be informed that they are

under video surveillance while at work?under video surveillance while at work?

Page 42: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Ethics and HR ManagementEthics and HR Management

• Four elements of effective ethics programs:Four elements of effective ethics programs:• A written code of ethics/standards of conduct.A written code of ethics/standards of conduct.• Training on ethical behavior at all levels in the Training on ethical behavior at all levels in the

organization (executive, management, rank-organization (executive, management, rank-and-file).and-file).

• Provides a a means of employees to obtain Provides a a means of employees to obtain advice on ethical situations.advice on ethical situations.

• Provides a system for confidential reporting of Provides a system for confidential reporting of questionable or unethical behavior.questionable or unethical behavior.

Page 43: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Sarbanes-OxleySarbanes-Oxley

• Sarbanes-Oxley Act of 2002Sarbanes-Oxley Act of 2002 – requires – requires publicly-trade companies to follow certain publicly-trade companies to follow certain accounting controls to reduce the likelihood accounting controls to reduce the likelihood of fraudulent or unethical behavior.of fraudulent or unethical behavior.• A response to a number of major corporate and A response to a number of major corporate and

accounting scandals (i.e., Enron & WorldCom). accounting scandals (i.e., Enron & WorldCom). • Compensation records have come under Compensation records have come under

increased scrutiny (attendance). increased scrutiny (attendance). • Enhance financial disclosure.Enhance financial disclosure.

Page 44: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

HR CompetenciesHR Competencies

• Five Sets of HR Competencies:Five Sets of HR Competencies:• Strategic Contribution – focus on long-term Strategic Contribution – focus on long-term

organizational success.organizational success.• Business KnowledgeBusiness Knowledge• HR Delivery HR Delivery • HR Technology – HRMS/HRISHR Technology – HRMS/HRIS• Personal CredibilityPersonal Credibility

Page 45: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

HR as a CareerHR as a Career

• HR GeneralistHR Generalist - performs a variety of HR - performs a variety of HR activities (i.e., T&D, recruiting, regulatory activities (i.e., T&D, recruiting, regulatory compliance, staffing, etc.).compliance, staffing, etc.).

• HR SpecialistHR Specialist - in-depth expertise in a - in-depth expertise in a limited HR area (i.e, Employee Relations limited HR area (i.e, Employee Relations Specialist, Industrial Relations Specialist, Specialist, Industrial Relations Specialist, Benefits Administrator, Classification Benefits Administrator, Classification Specialist).Specialist).

Page 46: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Professional HR CertificationProfessional HR Certification

• PHR PHR Professional in Human Resources, a Professional in Human Resources, a minimum of two years practical HR minimum of two years practical HR experience and passing the HRCI’s PHR experience and passing the HRCI’s PHR examination.examination.

• SPHR SPHR Senior Professional in Human Senior Professional in Human Resources, a minimum of six years practical Resources, a minimum of six years practical experience and passing the HRCI’s PHR experience and passing the HRCI’s PHR examination.examination.

Page 47: Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008.

Other CertificationsOther Certifications

• CCPCCP - Certified Compensation Professional - Certified Compensation Professional 11

• CBPCBP - Certified Benefits Professional - Certified Benefits Professional 11

• CEBS - Certified Employee Benefits Specialist CEBS - Certified Employee Benefits Specialist 22 • CPT - Certified Performance TechnologistCPT - Certified Performance Technologist• CSP - Certified Safety ProfessionalCSP - Certified Safety Professional• OHST - Occupational Health & Safety TechnologistOHST - Occupational Health & Safety Technologist

• 1 1 American Compensation AssociationAmerican Compensation Association

• 2 2 International Foundation of Employee BenefitsInternational Foundation of Employee Benefits