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How to Succeed in HR Without Really Trying: A Roadmap for HR Development in the Coming Decade. Presentation to the Evansville-Area Human Resource Association Dane M. Partridge, Ph.D. Associate Professor of Management University of Southern Indiana March 27, 2003.

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how to succeed in hr without really trying a roadmap for hr development in the coming decade

How to Succeed in HR Without Really Trying: A Roadmap for HR Development in the Coming Decade

Presentation to the Evansville-Area Human Resource Association

Dane M. Partridge, Ph.D.

Associate Professor of Management

University of Southern Indiana

March 27, 2003

is hr playing a strategic role in your organization
Is HR Playing a Strategic Role in Your Organization?
  • What’s the best change my organization can make to prepare for the future?
  • What makes an Ee want to stay with my organization?
  • How are we going to invest in HR so that my organization has a better HR dept than our competition?
          • Source: Halcrow (1988), reported in Noe et al. (2003)
staffing the hr function
Staffing the HR Function
  • What are the KSAs of HR staff?
    • What coursework?
      • Many MBA programs have no required HR course
    • What certification?
      • Bernardin (2003) indicates that only eleven percent of SHRM members have HR certification via HRCI
      • DMP not sure this figure is accurate – Bates (2002) reports ~56,000 HR professionals have passed a certification exam; 54% of PHR candidates are SHRM members, 72% of SPHR candidates (HRCI State of the Institute Report 2002).
staffing the hr function1
Staffing the HR Function
  • Inherent exaggeration of abilities re: “people skills”?
    • Survey of HS seniors
      • 70% believed they were above average in leadership ability; 2% believed they were below average
      • 100% believed they were above average in ability to get along with others, 60% believed they were in top 10%, 25% believed they were in top 1%
          • Source: Ruggiero (2001)
    • Should we even be teaching “people skills” at undergraduate level?
      • Research indicates UG students have less interest in and perceive less relevance of OB course than other required business courses
          • Mintzberg (1989), Burke and Moore (2003)
staffing the hr function2
Staffing the HR Function
  • More generalizable phenomenon, re: self-ratings?
    • Survey of 92 engineers (Meyer, 1980)
    • Asked to self-rate relative to peer group, 0-100 (percentile)
    • Mean: 78th percentile
    • Only two of 92 rated themselves below 50th percentile (45)
some discrepancies between research findings and hr practices
Some Discrepancies Between Research Findings and HR Practices
  • Recruitment
    • Research indicates that quantitative analysis of recruitment sources using yield ratios can facilitate efficiencies in recruitment
    • In practice, less than 5% of surveyed companies calculate yield ratios; less than 20% know how
          • Source: Bernardin (2002)
some discrepancies between research findings and hr practices1
Some Discrepancies Between Research Findings and HR Practices
  • Staffing
    • Research indicates that
      • Realistic job previews can reduce turnover
      • Weighted application blanks reduce turnover
      • Structured, behavioral, or situational interviews are more valid
      • Graphology is invalid and should not be used
    • In practice
      • Less than 20% of companies use RJPs in high-turnover jobs
      • Less than 10% know what a WAB is; less than 1% use
      • Less than 30% of companies use structured interviews
      • Graphology’s use is increasing in U.S.
some discrepancies between research findings and hr practices2
Some Discrepancies Between Research Findings and HR Practices
  • Performance Appraisal
    • Research indicates that
      • Traits should not be used on rating forms
      • Raters should be trained
      • The appraisal process should be an important element of managers’ jobs
    • In practice
      • More than 75% of companies still use traits
      • Less than 30% train raters
      • Less than 30% of managers are evaluated on performance appraisals
some discrepancies between research findings and hr practices3
Some Discrepancies Between Research Findings and HR Practices
  • Compensation
    • Research indicates that
      • Merit-based systems should not be tied into base salary
        • Because size of bonus that can be offered is greater, cost to org in long run is much less
      • Gainsharing is an effective pay-for-performance system
    • In practice
      • More than 75% of companies tie merit pay to base pay
      • Less than 5% of companies use gainsharing where they could
slide10
Quiz!!!
  • Think back to your first day in HR…
    • What were you most confident about, in terms of your preparation for your responsibilities?
    • What were you least confident about?
    • What, in terms of your preparation, contributed to your confidence or lack thereof?
    • How could your development have better addressed your deficiencies?
trw s hrm core competencies
TRW’s HRM Core Competencies
  • Leadership and Managing Change
  • Business Skills
  • HR Functional Leadership
  • HR Technical Skills
          • Source: Milkovich and Newman (1999)
  • “Core Competencies”: “The skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness.”
          • Source: Jones (2001)
trw s hrm core competencies1
TRW’s HRM Core Competencies
  • Leadership and Managing Change
    • Integrity
    • Efficiency
      • Performing in cost-effective manner
    • Objectivity
      • Clear perception of org and political reality
    • Proactivity
    • Risk taking
      • Taking action under conditions of uncertainty
trw s hrm core competencies2
TRW’s HRM Core Competencies
  • Leadership and Managing Change (cont.)
    • Decisiveness
    • Professionalism
      • Consciousness of one’s professional image
    • Negotiation Skills
      • Facilitating “win-win”
    • Communication Skills
      • Written, Oral, Non-verbal(!)
        • Brockbank (2003) found interpersonal competencies more important than verbal and written communication skills
    • Team Management Skills
trw s hrm core competencies3
TRW’s HRM Core Competencies
  • Business Skills
    • Industry Knowledge
      • Value chain, suppliers, competitors, how org satisfies customer needs
        • Knowledge of value chain has significant impact on business performance (Brockbank, 2003)
    • Strategic Management
      • Understanding and planning for environmental changes
    • Organizational Awareness
      • Understanding business operations, how business competes, cultural/value systems impacting org performance
trw s hrm core competencies4
TRW’s HRM Core Competencies
  • Business Skills (cont.)
    • Total Quality Management
      • Continuous Improvement
    • General Management Skills
      • Understanding of finance, marketing, law, IT
    • Partnership w/mngt team
  • Note: knowledge itself is insufficient to contribute to high-performing organization – must put knowledge into practice….Achieving results more important to personal credibility than getting along well w/mngt team.
          • Source: Brockbank (2003)
trw s hrm core competencies5
TRW’s HRM Core Competencies
  • HR Functional Leadership
    • Network Building
      • Working effectively w/others, both inside and outside org
    • Setting the Vision for HR
    • Selecting and Developing Staff
      • Identifying and implementing org and individual developments plans
    • Value-added perspective of HR
      • Communicating to mngt how HR can contribute to org
trw s hrm core competencies6
TRW’s HRM Core Competencies
  • HR Technical Skills
    • HR Planning
      • Competencies in org design now fundamental, including org and job restructuring (Brockbank, 2003)
    • Communications
      • Fostering understanding of key business and HR issues
    • Work Force Diversity
    • Selection and Placement
      • Including effective performance mngt system
    • Training & Development
trw s hrm core competencies7
TRW’s HRM Core Competencies
  • HR Technical Skills (cont.)
    • HR Information Systems
    • Compensation and Benefits
      • Performance-based, linked to performance mngt
    • Health, Safety, and Security
    • Org Effectiveness
      • Managing cultural change within org to impact org effectiveness
        • Note that culture management makes strategic contribution (Brockbank, 2003) [focusing internal culture on meeting needs of external customer, aligning HR w/ desired culture, facilitating quick change]
    • Ee and Labor Relations
additional competencies
Additional Competencies
  • International
    • Infusing org culture w/local talent worldwide
    • Integrating foreign Ees into U.S.-based businesses
    • Balancing differentiated pay scales/benefits levels to achieve internal equity
    • Restructuring recruiting practices to ensure org is capturing best talent globally
          • Source: Patel (2002) [SHRM Workplace Forecast: A Strategic Outlook]
top ten workplace trends as seen by hr professionals
Top Ten Workplace Trends as seen by HR professionals
  • Use of technology to communicate with Ees
  • Rising health care costs
  • Increased vulnerability of intellectual property
  • Managing talent
  • Greater demand for high-skilled workers than for low-skilled
top ten workplace trends as seen by hr professionals1
Top Ten Workplace Trends as seen by HR professionals
  • Labor shortage
  • Change from manufacturing to information/service economy
  • Increase in employment-related government regulations
  • Focus on domestic safety and security
  • Ability to use technology to more closely monitor Ees
          • Source: Patel (2002)
implications
Implications
  • Given these trends in organizational environments, what are the implications for HR function?
    • How do we get from where we are to where we need to be?
      • What organizational and individual development needs to be provided to facilitate change?
      • Are there additional competencies that need to be developed so as to effectively manage these trends?
evolving hr function
Evolving HR Function
  • Some traditional roles, e.g., HR generalist, benefit specialist, likely to become less common and less important
  • Will be increasingly important to be able to illustrate cost effectiveness, value-added contribution of HR practices
    • And will need to manage relationship w/providers of outsourced activities (transactional functions)
  • Know finance!
    • Will business degree be a requirement in the future?
    • What would be the implications?
    • “Human capital strategist”?
          • Source: Bates (2002), Glister (2000)
challenges potholes
Challenges (Potholes?)
  • David Ulrich (U of Michigan): “We have to shift the focus of HR away from training and process to the outcomes, away from a people function to an organization function. I’m not optimistic about all HR people” making that transition.
          • Source: Bates (2002)
staffing the hr function revisited
Staffing the HR Function (revisited)
  • KSAs for HR?
  • Preparation (Education and Experience)?
    • Certifications – value and nature
      • Specialist certifications (e.g., ACA’s Certified Compensation Professional and Certified Benefits Professional, IFEBP’s Certified Employee Benefits Specialist)
staffing the hr function revisited1
Staffing the HR Function (revisited)
  • HR Competencies – Build or Buy?
    • Re: HRIS, most HR certifications attest to non-technological body of knowledge. PHR, SPHR not intended to address individual systems or software (Glister, 2000)
      • Software-specific training (e.g., PeopleSoft)
      • New International Association for Human Resource Information Management (IHRIM) certification (purported to be both technical and functional)
      • Knowledge relevant to choosing right vendor
      • HRCI due to include more technology emphasis in revised curriculum
    • MBA w/ HR concentration? (Note that USI has moved in opposite direction…)
hrci core knowledge areas
HRCI Core Knowledge Areas
  • Knowledge of needs assessment and analysis
  • Knowledge of third-party contract management, including development of requests for proposals (RFPs)
  • Knowledge of communication strategies
  • Knowledge of adult learning processes
  • Knowledge of motivation concepts and applications
  • Knowledge of training methods
  • Knowledge of leadership concepts and applications
  • Knowledge of project management concepts and applications
  • Knowledge of diversity concepts and applications
hrci core knowledge areas1
HRCI Core Knowledge Areas
  • Knowledge of human relations concepts and applications (for example, interpersonal and organizational behavior)
  • Knowledge of HR ethics and professional standards
  • Knowledge of technology and human resource information systems (HRIS) to support HR activities
  • Knowledge of qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes
  • Knowledge of change management
  • Knowledge of liability and risk management
  • Knowledge of job analysis and job description methods
  • Knowledge of employee records management (for example, retention, disposal)
  • Knowledge of the interrelationships among HR activities and programs across functional areas
          • Source: http://www.hrci.org/certification/spec-core.html
conclusions and challenges
Conclusions and Challenges
  • As business organizations and the business environment continue to evolve, the competencies required of HR professionals are also evolving.
  • Knowledge is necessary but not sufficient prerequisite for success; skills and abilities are critical (i.e., the ability to put theory into practice).
  • Key org and individual development question pertains to those skills and abilities – build or buy?
  • To great extent, both degree programs and certification are indicators of knowledge, not necessarily competencies.
  • Hmmm…