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GEORGE L. WHALEY Ph.D. OCTOBER 27, 2008

BUSINESS 251. SEMINAR IN STRATEGIC HUMAN CAPITAL MANAGEMENT AN OVERVIEW OF THE GOALS, ROLES, FIELD AND FUNCTIONS. GEORGE L. WHALEY Ph.D. OCTOBER 27, 2008. OCTOBER 27, 2008 AGENDA. GREENSHEET REVIEW HUMAN CAPITAL MANAGEMENT OVERVIEW DEVELOPMENT OF HCM FIELD STRATEGIC HRM

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GEORGE L. WHALEY Ph.D. OCTOBER 27, 2008

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  1. BUSINESS 251 SEMINAR IN STRATEGIC HUMAN CAPITAL MANAGEMENTAN OVERVIEW OF THE GOALS, ROLES, FIELD AND FUNCTIONS GEORGE L. WHALEY Ph.D. OCTOBER 27, 2008

  2. OCTOBER 27, 2008 AGENDA • GREENSHEET REVIEW • HUMAN CAPITAL MANAGEMENT OVERVIEW • DEVELOPMENT OF HCM FIELD • STRATEGIC HRM • CLASS EXERCISE • NEXT CLASS ASSIGNMENT

  3. BUS. 251 GREENSHEET • INSTRUCTOR CONTACT INFORMATION • OFFICE HOURS • COURSE DESCRIPTION • COURSE OBJECTIVES • COURSE METHODOLOGY • EVALUATION CRITERIA • EXAMS • TEXTBOOKS • WEEKLY/SEMESTER ASSIGNMENTS • STUDENT CONTACT INFORMATION

  4. WHAT IS PEOPLE MANAGEMENT? THE POLICIES, PRACTICES AND SYSTEMS THAT INFLUENCE THE WORKFORCE

  5. HUMAN CAPITAL MANAGEMENT ACTIVITIES HR MANAGEMENT IS COMPOSED OF SEVERAL GROUPS OF INTERLINKED ACTIVITIES (TEXTBOOK EXAMPLES) • ORGANIZATIONAL DESIGN • STAFFING • PERFORMANCE MANAGEMENT AND APPRAISAL • EMPLOYEE TRAINING AND ORGANIZATIONAL DEVELOPMENT • REWARD SYSTEMS, BENEFITS AND COMPLIANCE

  6. HUMAN CAPITAL MANAGEMENT SUBSYSTEMS HCM OVERLAPPING CIRCLES MODEL development organization rewards rewards development selection evaluation maintenance CONCLUSIONS?

  7. COMPARISON OF HR APPROACHES

  8. COMPARISON OF HR APPROACHES • IF HR FUNCTIONS CAN BE COMPARED TO DOTS, WHAT IS MOST IMPORTANT? • COUNTING THE NUMBER OF DOTS? • KNOW THE CONTENT OF THE DOTS? • KNOW VALUE OF THE CONTENT OF THE DOTS • PACKAGING THE DOTS? • MEASURING THE DOTS? • CONNECTING THE DOTS? • ______________________?

  9. MAJOR TRENDS AFFECTING HRM/HCM • INCREASED GLOBALIZATION • TECHNOLOGICAL CHANGES • CHANGING BUSINESS ENVIRONMENT • INCREASED LITIGATION RELATED TO HRM • CHANGING CHARACTERISTICS OF THE WORKFORCE

  10. MAJOR HCM CHALLENGES • PERSPECTIVE CHALLENGE • METRICS CHALLENGE • EXECUTION CHALLENGE

  11. WORKFORCE SCORECARD • IDENTIFY AND DEFINE OUTCOME MEASURES RELATED TO STRATEGY • TRANSLATE OUTCOME MEASURES INTO ACTION AND ACCOUNTABILITY • DEVELOP DESCRIPTION OF IMPROVEMENTS • IDENTIFY LOW AND HIGH PERFORMING EMPLOYEES AND INCENTIVE PROGRAM TIED TO PERFORMANCE • DEVELOP SUPPORTING MANAGEMENT AND MEASUREMENT SYSTEMS • SPECIFY LEADERSHIP ROLES AND LINK TO STRATEGY EXECUTION

  12. INTERNAL AND EXTERNAL HR IMPLICATIONS OF TRENDS SCANNING THE EXTERNAL ENVIRONMENT • Government influences • Economic conditions • Geographic and competitive concerns • Technological changes • Social values INTERNAL ASSESSMENT OF ORGANIZATIONAL WORKFORCE • Organizational culture • Auditing jobs and skills • Organizational capabilities inventory • Components • Using data

  13. EXTERNAL FORCES ON HUMAN CAPITAL MANAGEMENT LAWS AND REGULATION ECONOMICS development organization VALUE SHIFTS rewards rewards development selection evaluation maintenance COMPETITION TECHNOLOGY

  14. IMPACT OF LEGAL AND REGULATORY FORCES ON HRC FEHA VEVRA PRIVACY development organization ADA EO#11246 rewards WARN rewards NLRA development selection evaluation maintenance WRONGFUL TERMINATION TITLE VII CRA AGE ACT REHAB ACT FLSA

  15. EXAMPLE : MANAGING A HUMAN CAPITAL SURPLUS • LEGAL IMPLICATION(WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT) • HR SYSTEMS IMPLICATIONS • IMPACT ON DIFFERENT FUNCTIONS OF HR INTERRELATIONSHIP OF IMPACTS ON DIFFERENT FUNCTIONS OF HR INFORMATION FLOWS • DOWNSIZING IMPACT • CAUSES • CONSEQUENCES • MANAGING SURVIVORS • OTHER LAWS AND LEGAL ISSUES INVOLVED • DOWNSIZING APPROACHES • ATTRITION AND HIRING FREEZES • EARLY RETIREMENT BUYOUTS • PAY IN LIEU OF NOTICE • LAYOFFS • OUTPLACEMENT SERVICES

  16. Accelerated technological change Very competitiveservice environment - “do more for less” Global work place Changing social & work / life values Changing employment contract Demographic Changes Diversity dynamics Educated but not necessarily skilled workforce - skill gaps Continuous learning needed Regulation/Deregulation Changing composition of “the family” A SEA OF CHANGE HUMAN CAPITAL TRENDS IN NEW ECONOMY

  17. HISTORICALDEVELOPMENT OF THE FIELD • PERSONNEL • INDUSTRIAL RELATIONS • HUMAN RELATIONS • EMPLOYEE RELATIONS • MANPOWER MANAGEMENT • HUMAN RESOURCE ADMINISTRATION • HUMAN RESOURCE MANAGEMENT • HUMAN CAPITAL MANAGEMENT • ________________________________?

  18. KEY COMPARISONS IN EVOLUTION OF FIELD PEOPLE MANAGEMENT HUMAN RESOURCE MANAGEMENT HUMAN CAPITAL MANAGEMENT PERSONNEL MANAGEMENT WHAT ARE THE KEY DIFFERENCES ?

  19. COMPARISON OF HR APPROACHES

  20. 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 CORECOMPETENCIES HUMAN RESOURCES AND HUMAN CAPITAL MANAGEMENT

  21. OVERLAPPING ROLES COMPANY EMPLOYEE MANAGER HR DEPARTMENT

  22. BALANCING AUTHORITY TOP MANAGEMENT LINE STAFF WHAT ARE THEY? APPLY TO HRM/HRIS ?

  23. STAFF AUTHORITY • PURE ADVISORY • AUDITING • COMPULSORY • CONCURRING/VETO • FUNCTIONAL

  24. CHANGES IN HRM ROLES • SERVANT • SERVICE • TACTICAL • STRATEGIC • VISIONARY

  25. CHANGES IN HRM ROLES STRATEGIC FOCUS STRATEGIC PARTNER CHANGE AGENT SYSTEMS PEOPLE ADMINISTRATIVE EXPERT EMPLOYEE CHAMPION OPERATIONAL FOCUS ULRICH, 1998

  26. HIERARCHY OF PLANNING • VISION= GENERAL PURPOSE OF COMPANY • MISSION= CURRENT/FUTURE DIRECTION • OBJECTIVES= FUNCTIONAL GOALS • STRATEGY= INTEGRATED GOALS/ACTIONS • POLICIES= GOALS TO SUPPORT STRATEGY • PROGRAMS=CAPITALS SUPPORT POLICY • PROCEDURES= STEPS SUPPORT POLICIES • RULES= TASKS TO SUPPORT PROCEDURES

  27. TYPICAL HR ROLES IN PLANNING HIERARCHY • VISION= CHCO • MISSION= VP OF HR • OBJECTIVES= VP OF HR AND DIRECTORS • STRATEGY= HR MANAGERS AND DIRECTORS • POLICIES= HR MANAGERS AND ANALYSTS • PROGRAMS=HR ADMINISTRATORS • PROCEDURES= HR CLERK • RULES= HR ASSISTANT

  28. STRATEGIC HIERARCHY AND COMPETITIVE ADVANTAGE CORPORATE STRATEGY BUSINESS LEVEL STRATEGY BUSINESS LEVEL STRATEGY FUNCTIONAL/DEPT. LEVEL HRM DEPARTMENT/AREA LEVEL HRIS

  29. COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE CUSTOMER VALUE SOURCE UNIQUENESS WHAT ARE THEY? APPLY TO HRM/HRIS ?

  30. VALUE-ADDED ELEMENTS • VISION/MISSION DRIVEN • BOTTOM-LINE ORIENTED • BALANCED • MEASUREABLE

  31. SWOTSTRATEGIC PLANNING MODEL s w INTERNAL EXTERNAL ALIGNMENT? T O ENTERPRISE s w T O HR FUNCTION CAN YOU PROVIDE EXAMPLES?

  32. STRATEGIC FIT MATRIX HR ALIGNMENT WITH LIFE CYCLE? WOULD LIFE CYCLE MODELS HELP?

  33. BUS. 251 CLASS EXERCISE 3XTECH ORGANIZATIONAL STRUCTURE AND HUMAN CAPITAL MANAGEMENT • DEVELOP IDEAL STRUCTURE • PRIORITY/PLACEMENT OF HRM • ROLE OF METRICS • FUTURE ROLE OF HRM IN STRATEGY • WHICH EMPLOYMENT LAWS COVER 3XTECH • BEST PERSON TO LEAD 3XTECH • RESPOND TO QUESTIONS • CASE ANALYSIS FORMAT

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