OBHR E-100 Tonight

Final Exam
Due on 5/12 at 5:30 p.m. via email
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Course Evaluation
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OBHR E-100 Tonight

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Additional concepts
Trends in SHRM
Key learnings
Wrap-up

A Definition of Human Resource

Management
Human Resource Management (HRM)
involves all management decisions and
practices that directly affect the people
who work for the organization.
Human Resources the people who work
for the organization.

Recurring Themes in Human Resource

Management
Strategic Approach
International Human Resource Management
Maintaining Ethical Policies and Behavior
Stakeholders
Ethical Duties

Benchmarking, Measuring, and Evaluating Human

Resources Results

Table 1.1: Top

Challenges for
Organizations
and the HR
Profession

Sources: Adapted from More on What CEOs Want from HR, HRFocus, Vol. 80 (4), 2003, pp.5-6; New Study Identifies Key Competencies Necessary for
HR, Society for Human Resource Management, June 22, 2003. (Available at: http://www.shrm.org/press_published/1CMS_004834.asp#P28_180)

Current and Future Challenges to

Human Resource Management
Corporate Reorganizations
Global Competition
International Joint Ventures (IJVs)

Cyclical Growth
Increasing Diversity in Workplace
Employee Expectations
Organizations as Vehicles for Reaching
Societal Goals

Why Is Managing Human Resources

So Important?
Rapid Change
Uncertainty About Basic Business Conditions
Rising Costs
Rapid Technological Change
More Limited Supplies of Highly Trained Labor
Rapidly Changing Government Legislation and
Regulations
Increased Globalization of Industries

HRM - The Traditional View

HRM -- The Strategic View

Transforming HR People Requires:

HR transformation linked to
organizations strategic orientation
Active participation by HR staff,
supported by HR champion
Line managers involved in defining
skills HR needs
HR transformation = major change
effort by firm

Enhancing Administrative Efficiency

Increase Efficiency of Current HR
Practices
Centralized HR Services -- One-Stop
Shop
Outsourcing

Fitting HR Practices to Business

Strategy and One Another
Vertical Fit = the match between HR
practices and overall business strategy
Horizontal fit = the consistency and
interrelationship among HR activities
External fit = how well HR activities
match the demands of the external
environment

HR Fit Requires Right HR Choices

Staffing
Appraising
Compensating
Training and Development
Employee Influence
Work Systems

Measuring HRM
Inward HR Function Measures
Operational measures
Service quality measures

Outward Focused HR Measures

Results measures
Business impact measures

Is SHRM Worth All The Trouble?

Huselid 1997 study
Sears study
A study in Germany, Italy, Japan and
the USA
New Zealand Study

SHRM Trends

Recent surveys/views
Economic realities
Short- & long-term visions
Which are you experiencing?
What views have changed
during course?

2008 Forrester Research Study

Human resource management (HRM) will be key area of
focus in 2009 as companies and government organizations
put in place strategies to cope with economic crisis and
recovery.
The so called "war for talent" is on the backburner; focus
shifts to hiring freezes, benefits and compensation cost
management, and workforce reductions in the hardest-hit
segments.
HRM technology solutions can help savvy human resources
professionals strategically manage through crisis and prepare
as the climate shifts to the upside.

2008 Forrester Research Study

Trends for 2009
Managing and developing talent
Embracing HRM analytics
Web 2.0 adoption
HR technology strategy

CareerBuilder.com 2009 Job Forecast

Surveyed 3,259 hiring managers and human
resource professionals in private sector companies.
Trend No. 1: Bigger paychecks (?)
Despite the fact that many employers are looking for ways
to cut costs, they don't anticipate trimming salaries as a
way to do so. Sixty-six percent of employers plan to
increase pay for existing employees and one third of hiring
managers estimate increasing salaries on initial offers to
new employees in 2009.

CareerBuilder.com 2009 Job Forecast

Trend No. 2: Flexible work arrangements
Companies are catching on to the flexible work
arrangements that allow employees more freedom in the
office. Thirty-one percent of employers say they plan to
provide the following options for workers in 2009:
alternate schedules (70 percent); telecommuting (48
percent); compressed workweeks (40 days); summer
hours (19 percent); job sharing (13 percent); and
sabbaticals (7 percent).

CareerBuilder.com 2009 Job Forecast

Trend No. 3: Green jobs
Employers have tried to gain traction using
environmentally friendly policies for a while and the New
Year shows more of the same. Last year, one-in-ten
hiring managers added "green jobs," which are
environmentally conscious positions, compared to 13
percent of employers who plan to add them in 2009.

CareerBuilder.com 2009 Job Forecast

Trend No. 4: Recruitment tools
As employers slow down on hiring, recruitment budgets
shrink as well. As a result, more employers are using the
Internet as an employment medium. Twenty-three percent of
employers say that although their hiring budgets will
decrease in 2009, they will spend money on the following
staffing vehicles: online recruitment sites (19 percent);
newspaper classifieds (15 percent); career fairs (12 percent);
staffing firms and recruiters (12 percent); and social
networking sites (7 percent).

CareerBuilder.com 2009 Job Forecast

Trend No. 5: Retaining retirees
Though baby boomers are approaching retirement age,
many are continuing to work -- both out of desire and
necessity. Employers are looking at ways to retain these
workers; 17 percent say they will likely rehire retirees
from other companies in 2009 and 12 percent plan to
offer incentives for baby boomers to stay on with the
company longer.

CareerBuilder.com 2009 Job Forecast

Trend No. 6: Diversity recruitment
Hiring managers will also focus recruitment
efforts on employing diverse workers. Employers
said they plan to hire Hispanic, African American
and mature workers aggressively in 2009.
Eighty-eight percent of companies say they will
continue to recruit bilingual candidates, as well.

CareerBuilder.com 2009 Job Forecast

Trend No. 7: Freelance or contract hiring
To continue their cost-cutting efforts, employers
are using freelance or contract workers to help
support their businesses. Twenty-eight percent of
hiring managers expect to utilize these workers
in 2009.

SHRM Report: Creating People

Advantage--How to Address HR
Challenges Worldwide Through 2015
Talent and leadership scarcer than ever before
Workforce growing older and people are having
fewer children
Globalization - companies are becoming global
organizations
Emotional well-being of employees is more
important than ever before

SHRM Report: HR Challenges

Worldwide Through 2015
8 critical HR challenges identified for the future:
1.
2.
3.
4.
5.
6.
7.
8.

Managing talent
Improving leadership development
Managing change and cultural transformation
Managing globalization
Managing demographics, especially aging workforce
Becoming a learning organization
Transforming HR into a strategic partner
Managing work/life balance.

SHRM Report: HR Challenges

Worldwide Through 2015
8 critical HR challenges identified for the future:
Category 1: Developing and Retaining the Best Employees
1 - Managing talent
2 - Improving leadership development
3 - Managing change and cultural transformation

Category 2: Anticipating Change

4 - Managing globalization
5 - Managing demographics, especially aging workforce
6 - Becoming a learning organization

SHRM Report: HR Challenges

Worldwide Through 2015
8 critical HR challenges identified for the future:
Category 3: Enabling the Organization
7 - Transforming HR into a strategic partner
8 - Managing work/life balance.

SHRM Report: HR Challenges

Worldwide Through 2015
5 key steps for making the best decisions:
1. Build an internal capacity to analyze trends in the external
environment.
2. Use quantitative and qualitative indicators that give a detailed
view of the HR impact on the company's internal environment.
3. Set priorities based on the issues of most critical importance as
determined by both external and internal factors.
4. Initiate projects to tackle these priorities with dedicated teams.
5. Perhaps most important, secure support from top management.

Adecco Institute Study

Survey of 5,000 HR professionals heavily
supports Category 2.
Top 3 challenges facing corporations today
are:

Globalization
Demographic change
Technical progress (skills shortages)

Mercer Consulting Report

60 senior-level HR executives, 70% of whom hold
global positions
Biggest Challenge: finding a global service delivery
model for the administration of HR and benefits
Increasingly: HR executives are promoted to carry out
global responsibilities.
45% of surveyed have taken on global roles within the last two
to three years
40% of surveyed have assumed such responsibilities within
the last 12 months alone

Mercer Consulting Report

Key drivers of globalization challenge:
Rapid employee growth in emerging markets (many
companies reported having more than 50% of their
workforce located outside of their corporate home country or
region)
An increase in global workforce mobility
More stringent governance and compliance requirements
that vary dramatically by region
Pressure for overall cost savings through process and policy
standardization

Invest in Technology
Gantry Group Research: U.S. companies plan
to allocate 46% of HR IT budgets for 20082009 to strategic functions such as:

Talent Management
Performance Management
Leadership/Development
Recruitment

Invest in Technology
Adecco Institute Report:
Technology will infiltrate the HR function automating
transactional services
HR practitioners will increasingly rely on knowledge
management tools to track
Skills, experience, background, interests
Formal/informal feedback on employee performance

55% of companies maintain standardized records of

business critical knowledge
30% publish information about knowledge holder in an
internal directory
Traditional administrative tasks will be handled by
outsourcing, automation and self-service.

Going Global: What is IHRM?

International HRM (IHRM) is the
process of:
procuring,
allocating, and
effectively utilizing human resources
in a multinational corporation, while
balancing the integration and differentiation
of HR activities in foreign locations.

Domestic HRM vs IHRM

Compared to Domestic HRM, IHRM
Encompasses more functions
Has more heterogeneous functions
Involves constantly changing perspectives
Requires more involvement in employees lives
Influenced by more external sources, and
finally
Involves a greater level of risk than typical
domestic HRM

Approaches to IHRM (contd)

Factors Affecting the Approach to IHRM
Political Policies and Legal Regulations
Managerial, Educational, and
Technological Development in the Host
Country
Home and Host Country Cultures
International Experience of the Firm

Approaches to IHRM (contd)

Factors Affecting the Approach to IHRM (contd)
Method of Subsidiary Founding
Technology and the Nature of the Product
Strategic Importance of Particular Employee
Groups
Organizational Culture
Organizational Life Cycle

Managing Human Resources in a

Foreign Subsidiary
Culture and HR Functions within a
Foreign Subsidiary
Staffing in the Subsidiary
Training in the Subsidiary
Appraising Performance of Subsidiary
Staff
Subsidiary Compensation Systems

Global Managers

Understand the worldwide business

Learn about many cultures
Work with many types of people
Create cultural synergy
Adapt to living in many cultures
Use cross-cultural skills daily
Treat foreign colleagues as equals
Use foreign assignments as career
development

IHRM: Adding Value in the Global

Business Environment

HR Activities that Should Be Assessed on a Value-Added

Basis that Are Unique to IHRM:
Costs and Benefits of Repatriation Programs
Whether the Mix of PCN, HCN, and TCN (parent, host and
third country nationals) Managers is Optimal for Efficiency
and Effectiveness
Costs and Benefits of Localization Programs in Foreign
Subsidiaries
Costs and Benefits of HR Activities Customized for Particular
National Cultures and Legal Systems
Costs and Benefits of HR Programs Related to Foreign
Taxation and Social Security Systems

7 Best Practices For Handling Layoffs

And Downsizings
(Bayer, 2009)

Handling terminations correctly:

Helps separated employees
make best of bad situation
Calms nerves of coworkers
Salvages public opinion of
organization

Terminate with Dignity

Many HR professionals aren't using right

protocols
Must terminate employees with dignity
If bad appearance, best talent will think
twice before applying
Negative word can spread quickly
Same care taken when hiring should be
taken when terminating

I - Put your policy in writing

Why, when and how

Preparedness is vital
Managers must be trained

II - Train managers in realities of hurt

Great sensitivity is required

Listen attentively and respond
to employee distress
Human lives and futures are at
stake
Organization's image is on line

III - Develop positive scripts to help

people keep dignity
Carefully prepared (flexible), positive
scripts are indispensable
Kindness helps employee maintain
confidence needed to find new job
Nice words play critical role in
keeping dignity
In downsizing or merger, assure its a
no-fault situation

IV - Be up-front about why

Be prepared to explain
Be sensitive to feelings of the
person being singled out
Be as open and honest as possible
More likely to feel empowered if
they understand

V - Prepare fair severance package &

be ready to describe

Must allocate severance pay fairly

Severance pay (when possible)
Ongoing career coaching
In-house counseling
Full explanation of benefits
provided at termination

VI - Avoid sudden-death discharges

Reduces shock and humiliation
Dont create impression that termination
is a punishment
Consider option of decompression
period:
2 weeks of notice
Opportunity to finish tasks, complete
projects, etc.

VII - Assure employee you'll be a good

reference
Empower employee and enable to
move ahead
Convey good news to prospective
employers
Even poor performers deserve
statement of good points

Other Issues - RIF

Layoff Survivor Sickness

Fear, insecurity and uncertainty

Frustration, resentment and anger
Sadness, depression and guilt
Unfairness, betrayal and distrust
Exodus? Data confirms it

Stemming Flight
Job embeddedness: total compensation
($, benefits, childcare, etc.)
Procedural justice: policies, ombudsman,
grievance, etc.
Perception of fairness
Overcommunicate, tell truth, keep lines
open
Dont act like its the same

Other Strategies
On-site counseling, EAPs,
outplacement
Train: listening, empathy, skills
Involve top managers
Executives: do something visible
Give survivors a reason to stay
Hire-back bonuses

SHRM Info Systems

QuickTime and a
decompressor
are needed to see this picture.

Source: CedarCrestone IT Survey, 2008

SHRM Analytics
Retiring workforce
Skill shortages
Retention
Employee engagement
Escalating benefit costs
Non-competitive or
unaligned compensation
Compensations
contribution to turnover
Merger/acquisition activity
Revenue per employee

Source: CedarCrestone Whitepaper, 2008

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decompressor
are needed to see this picture.

SHRM Analytics

QuickTime and a
decompressor
are needed to see this picture.

Source: CedarCrestone Whitepaper, 2008

SHRM Analytics

QuickTime and a
decompressor
are needed to see this picture.

Source: CedarCrestone Whitepaper, 2008

SHRM Analytics

QuickTime and a
decompressor
are needed to see this picture.

Source: CedarCrestone Whitepaper, 2008