1. OBHR E-100 Tonight Final Exam Course Evaluation
Due on 5/12 at 5:30 p.m. via
750 words per question (not in total)
Course Evaluation
Online
Tonight

2. Course Feedback Additional concepts Trends in SHRM Key learnings
OBHR E-100 Tonight
Course Feedback
Additional concepts
Trends in SHRM
Key learnings
Wrap-up

4. 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.

5. 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

6. 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, (Available at:

7. 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

8. 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

9. HRM - The Traditional View

10. HRM -- The Strategic View

11. Transforming HR People Requires:
HR transformation  linked to  organization’s 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

12. Enhancing Administrative Efficiency
Increase Efficiency of Current HR Practices
Centralized HR Services -- “One-Stop Shop”
Outsourcing

13. The Strategic Planning Process
Mission, Goals, and Values Statements
Environmental Threats & Opportunities
Organizational Strengths & Weaknesses
Goals and Objectives
Formulation of Strategies

14. 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

15. HR Fit Requires Right HR Choices
Staffing
Appraising
Compensating
Training and Development
Employee Influence
Work Systems

16. Developing Partnership
Learn about the firm’s business
Respond to and be aware of the firm’s needs and direction
Shift away from traditional HRM functions
Move toward supportive, collaborative relationships with line managers
Demonstrate how HR is critical to business success

17. Measuring HRM Inward HR Function Measures Outward Focused HR Measures
Operational measures
Service quality measures
Outward Focused HR Measures
Results measures
Business impact measures

18. Is SHRM Worth All The Trouble?
Huselid 1997 study
Sears study
A study in Germany, Italy, Japan and the USA
New Zealand Study

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

24. 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.

25. 2008 Forrester Research Study
Trends for 2009
Managing and developing talent
Embracing HRM analytics
Web 2.0 adoption
HR technology strategy

26. 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.

27. 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).

28. 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.

29. 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).

30. 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.

31. 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 Eighty-eight percent of companies say they will continue to recruit bilingual candidates, as well.

32. 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.

33. 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

34. SHRM Report: HR Challenges Worldwide Through 2015
8 critical HR challenges identified for the future:
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.

35. 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

36. 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.

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

38. 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)

39. 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

40. 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

41. Invest in Technology
Gantry Group Research: U.S. companies plan to allocate 46% of HR IT budgets for to strategic functions such as:
Talent Management
Performance Management
Leadership/Development
Recruitment

42. 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.

43. 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.

44. 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

45. Approaches to IHRM (cont’d)
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

46. Approaches to IHRM (cont’d)
Factors Affecting the Approach to IHRM (cont’d)
Method of Subsidiary Founding
Technology and the Nature of the Product
Strategic Importance of Particular Employee Groups
Organizational Culture
Organizational Life Cycle

47. 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

48. 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

49. 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

50. 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

51. 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

52. I - Put your policy in writing
Why, when and how
Preparedness is vital
Managers must be trained

53. 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

54. 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 it’s a no-fault situation

55. 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

56. 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

57. VI - Avoid sudden-death discharges
Reduces shock and humiliation
Don’t create impression that termination is a punishment
Consider option of decompression period:
2 weeks of notice
Opportunity to finish tasks, complete projects, etc.

58. 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

59. “Layoff Survivor Sickness”
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…

60. Stemming Flight
“Job embeddedness”: total compensation ($, benefits, childcare, etc.)
Procedural justice: policies, ombudsman, grievance, etc.
Perception of fairness
Overcommunicate, tell truth, keep lines open
Don’t act like it’s the same

61. 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

62. SHRM Info Systems
Source: CedarCrestone IT Survey, 2008

63. SHRM Analytics Retiring workforce Skill shortages Retention
Employee engagement
Escalating benefit costs
Non-competitive or unaligned compensation
Compensation’s contribution to turnover
Merger/acquisition activity
Revenue per employee
Source: CedarCrestone Whitepaper, 2008

64. SHRM Analytics
Source: CedarCrestone Whitepaper, 2008

65. SHRM Analytics
Source: CedarCrestone Whitepaper, 2008

66. SHRM Analytics
Source: CedarCrestone Whitepaper, 2008

67. SHRM Analytics
Source: CedarCrestone Whitepaper, 2008