EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Transcription from Powerpoint Presentation 07/27/2013 EVOLUTION OF HUMAN RESOURCE MANAGEMENT Scientific Management Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth Industrial/ Organizational Psychology Munsterberg, Scott, Cattell Human Relations Movement Hawthorne Studies, May, Follett, Lewin Growth of Governmental Regulations Wages (1930s), Unionization (1940s), Employment (1960s) Professionalization of Human Resource Management Professional Human Resource Societies & HRCI (Certification Institute) Human Capital Management: Managing & Measuring Worker Productivity What is the effect of HR on the bottom line of the firm? Is there a significant relationship between compensation and worker turnover in our organization? Does worker training and development enhance retention?... Customer Satisfaction?... Repeat Sales levels? What value would you attribute to each worker? How much is each worker worth? Are all employees alike and thus should be managed similarly, or should each employee be developed and manged uniquely? What brings out the best in each worker? What makes them maximally productive and valuable to the organization? Human Resource Management Functions

Functional Areas Within Human Resource Management Emplyment/ Staffing Recruitment Selection Training & Development Appraisal Educational & Development Compensation Salaries, Wages, & Benefits Incentive Plans Employee Relations Grievance Resolution Union Relations HR Planning & Research Forecasting Job Analysis Attitude Surveys Validation Studies Employment/Staffing Staffing Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at the right time to achieve organizational objectives Job Analysis Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

Human Resource Planning Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time Recruitment- Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications to apply for jobs within an organization Selection Process of choosing from a group of applicants the individuals best suited for a particular position and the organization. Training & Development Training - Designed to provide learners with knowledge and skills needed for their present jobs Development Involves learning that goes beyond today's job; It has a more long-term focus Career Development Formal approach used by an organization to ensure that people with proper qualification and experiences are available when needed. Organizational Development A Planned Process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals. Performance Management Goal-Oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization. Performance Appraisal Formal system of review and evaluation of individual or team task performance. Compensation Direct Financial Compensation Pay that person receives in form of wages, salaries, bonuses, and commissions. Indirect Financial Compensation (Benefits) All financial Rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. Non-Financial Compensation Satisfaction that person receives from job itself or from psychological and/or physical environments in which person works. Safety & Health Employees who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to the organization. Safety- Involves protecting employees from injuries caused by work-related accidents Health- Refers to employees freedom from illness and their general physical and mental well being Employee & Labor Relations Private sector union membership has fallen from 39% in 1958 to 7.8 % in 2005 Business is required by law to recognize a union and bargain with it in good faith if the firm's employee's want the union to represent them Is the function of the HR to control workers, or to help them and act as their advocate? Resolving personnel grievances and disagreements fairly in both union and union free environments. Human Resource Research Human Resource Research Pervades all HR functional areas Includes: Forecasting and planning job analysis attitude surveys validation studies

 compensation surveys HR's Changing Role: Questions that are being Asked Can come HR tasks be performed more efficiently by line managers or outside vendors? Can some HR tasks be centralized or eliminated all together? Can technology perform tasks that were previously done by HR personnel? Many HR departments continue to get smaller. Who Performs Human Resource Management Tasks? HR Managers Line Mangers & Supervisors HR shared service centers Outsourcing Professional employer organizations (Employee leasing)

Executives, Generalists, & Specialists

Traditional Human Resource Functions in a Large Firm

A possible Evolving HR Organization Example

AMA SARATOGA STUDY: How are HR Departments Changing? Only 30% still do all the standard in-house HR Functions 32% have established an in-house University Only 27% have retained the training area as is Benefits have been outsourced or moved to shared service centers Staffing is being delegated back to line managers Ratio of employees served per HR employee has increased Top HRM Concerns: A Percentage Survey (Helman) 84% compensation 80% Succession Planning 68% Management Staffing 40% Employee Communications 34% Workforce Management 28% Benefits 26% Performance Evaluation 24% Employee relations 20% Personnel Policies 18% Labor Relations 16% Training & Development 4% EEO/Affirmative Action 9% Other Current Trends in HR Emphasis on strategic planning & Succession VP of HR is a strategic Manger, Management Succession planning Emphasis on cost related issues/ cost control global competition, Outsourcing, and Downsizing Growth of Governmental Regulations Wages (1930s), Unionization (1940s), Employment (1960s) Professionalization of HR Management Professional HR societies & HRCI (certification Institute) Professional HR Organizations Society for Human Resource Management SHRN 185,000+ members JNLS: HR magazine, HR News American Society for Training & Development ASTD 60,000+ members JNL: Training & Development Journal World-At-Work (Formerly the American Compensation Association) WAW 23,000+ members JNL: WAW/ACA Journal (formerly Compensation Review) International Personnel Management Association IPMA 6,500+ Members JNL: Public Personnel Management National Human Resource Association (Formerly the International Association for Personnel

Women) NHRA 1,500+ members JNL: Human Resources Journal of International Association for Personnel women HUMAN RESOURCE CERTIFICATION INSTITUTE (HRCI) PROFESSIONAL IN HUMAN RESOURCES (PHR) Need 4+ years HR experience (fulltime, exempt position) or 2+ years HR experience w/ appropriate bachelor's degree or 1+ yr HR experience w/ appropriate master's degree Students may sit for PHR exam and have 5 years to get experience Must pass comprehensive PHR examination (need a score of 500+) Certified for 3 years/ Re-certification required every 3 years SENIOR PROFESSIONAL IN HUMAN RESOURCES (SPHR) Need 8+ years HR experience (full time, exempt position) or 6+ yars HR experience w/ appropriate bachelor's degree or 5+ years HR experience w/ appropriate master's degree. SPHR candidates also need 3+ years experience at policy making level Must pass comprehensive SPHR examination (need a score of 500+) Certified for 3 years, re-certification required every 3 years. HR CERTIFICATION EXAM: FOR PROFESSIONAL & SENIOR PROFESSIONAL HR DESIGNATION TOPICS PHR SPHR STRATEGIC MANAGEMENT WORKFORCE PLANNING & EMPLOYMENT HR DEVELOPMENT COMPENSATION & BENEFITS EMPLOYEE & LABOR RELATIONS HEALTH, SAFETY, & SECURITY TOTALS 12% 26% 15% 20% 21% 6% 100% 26% 16% 13% 16% 24% 5% 100%

HR CERTIFICATION EXAM: FOR GLOBAL PROFESSIONAL IN HUMAN RESOURCES DESIGNATION TOPICS STRATEGIC MANAGEMENT WORKFORCE PLANNING & EMPLOYMENT HR DEVELOPMENT COMPENSATION & BENEFITS EMPLOYEE & LABOR RELATIONS HEALTH, SAFETY, & SECURITY TOTALS GPHR 22% 14% 10% 28% 16% 10% 100%

EXTERNAL ENVIRONMENTAL FACTORS THAT IMPACT HRM GOVERNMENT REGULATIONS Federal, State, & Local LABOR & WORK FORCE DEMOGRAPHICS Women with children Work force diversity & immigrants Older workers people with disabilities Young persons with limited skills TECHNOLOGICAL ADVANCEMENT Automation, obsolescence, and renewal GLOBAL COMPETITION & CUSTOMER EXPECTATIONS ECONOMIC CONDITIONS & CYCLES OTHER PUBLICS Unions, communities, Shareholders, etc. CYBERWORK Possibility of a never-ending workday Blackberrys, cell phones, text messaging, and emails create endless possibilities for communications Some workers believe that their employer wants them available 24/7 THE IMPACT OF THE ORGANIZATIONAL ENVIRONMENT ON HRM CORPORATE MISSION, PHILOSOPHY, AND CULTURE Who are we and what are we trying to accomplish? CORPORATE STRATEGIES & OBJECTIVES Grand & competitive strategies ORGANIZATION POLICIES & PROCEDURES Bureaucratic vs Organic? Is discretion encouraged? TASKS, POSITIONS & WORKGROUPS The organizational chart LEADERSHIP STYLES POWER & INFLUENCE MODEL Legitimate Power Authority to command based on the position held Reward Power Positive, based on desired outcomes Coercive Power Threats & punishment Expert Power Advice, knowledge, & information Referent Power Charisma, Social Liking, Identification DISCOVERIED ON POWER-BASED LEADERSHIP Coercive Power Generates resistance (minimal Cooperation)

Legitimate & Reward Power Generates compliance (you get satisfactory behaviors) Expert & Referent Power Generates Commitment (Workers go the extra mile) LIFE-CYCLE/MATURITY THEORY (HERSHEY & BLANCHARD, 1977) Leader behaviors need to vary, depending on the maturity of the individual Types of Leader behaviors Directive Gives clear direction and instruction to immature employees Coaching Expands two way communication: helps build confidence/motivation Supporting Employee now feels confident: active two way communication still needed for shared decisions Delegating responsibility for planning and decision making is given to highly mature employees PATH-GOAL THEORY OF LEADERSHIP (HOUSE & MITCHELL, 1974) Situational Factors Characteristics of employees perceived ability, N ACH, Locus of control, etc Characteristics of the environment Task structure, organizational controls, work group, etc. Leadership styles Directive Supportive Achievement Oriented Participative IMPACT OF PERSONAL DIFFERENCES ON HRM Individual skills & abilities Personality Expectations & aspirations MOTIVATION equity theory expectancy theory reinforcement theory EQUITY THEORY (ADAMS, 1965) I compare my outcomes (Om) with my perception of what others outcomes are (Oo). I also compare my work inputs (Im) with what I think others are contributing to their jobs (Io). If the relative ratio of my outcomes/inputs (Om/Im) is similar to the perceived outcomes/inputs (Oo/Io) of others at work, EQUITY exists and the organization is perceived to be fair. Om/Im=Oo/Io I feel fairly treated (content) POSITIVE & NEGATIVE INEQUITY If I believe that my outcomes/inputs ratio is more generous than the outcome/input ratio of others, I feel guilty and over-rewarded. This is POSITIVE INEQUITY, and this perception may or may not motivate one to action.

 Om/Im > Oo/Io I feel over-rewarded (Guilty) If I think my outcomes/inputs ratio is less than the outcome/input ratio of others, I feel frustrated and under-rewarded. This is NEGATIVE INEQUITY, and this perception usually motivates one to act to resolve this unfair situation. Om/Im <Oo/Io I feel under-rewarded (FRUSTRATED) LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED Change my outcomes Change my inputs Reconsider the perceived ratios Change others inputs &/or Outcomes Change comparison other Leave the organization or withdraw EXPECTANCY-VALENCE THEORY (THREE PERCEPTIONS) EXPECTANCY (E P) If I put forth effort (E), what is the probability that I can achieve the performance objective (P)? INSTRUMENTALITY (P O) If I achieve the performance objective (P), what is the probability that a specific outcome (O) or reward will be given to me? VALENCE (V) How much value (positive or negative) do I attach to receiving this outcome? MOTIVATION (EFFORT) (E P) x sum of [(P O)i(V)i] REINFORCEMENT THEORY (SKINNER, 1972) Assumptions: The consequences of past actions will influence our future actions We repeat behaviors which lead to rewards and are satisfying We reduce behaviors which go unrewarded or lead to punishment Thus, we tie valued rewards to desired behaviors in the workplace Types of Reinforcement Positive Avoidance (Negative) Extinction Punishment SCHEDULES OF REINFORCEMENT Continuous (Everytime) Intermittent (not Every time) Fixed-ratio Fixed-Interval Variable-Ratio Variable-Interval ____________________________________________________END OF PRESENTATION