1. Why Doesn’t This HR Department Get Any Respect? Analysis Presentation
Team H
Andrew Compton
Justin Holden
Natalie Stovicek
Chao-Ching (Jimmy) Lien
Paul Wroten
andrew

2. Questions What do YOU think about the case? Can you relate to it?
Who has issues or stories about their HR Department
Have you gotten a bad check?
Have you filed a complaint that was ignored?
andrew

3. Short Clip Bad HR

4. Summary of Loft
Luke Robinson is recruited by new CEO to solve several company issues.
HR’s purpose was administrative under CEO, Washington
When Washington left, the company suddenly lost the talent of attracting and retaining talented employees.
Luke Robinson, an experienced top HR consultant, is recruited by new CEO, Bernie Shargall, to solve the issues.
He takes the position as career challenge, however, he is running into trouble.
andrew

5. Summary of Incidents at Loft
Robinson’s Attempts
Company had never before paid much attention to HR
Lost 4 key employees in under two years
Conflicting opinions of Loft
Executives don’t pay attention to Robinson’s plans to fix things
Payroll mishap
Mishandling of discrimination investigation
Spent time with executives, managers, brokers, administrative staff, HR staff, and external contacts
HR Ambassador program
Regular Meetings with business-unit heads
Replaced ineffective HR staff
Plan to educate employees about role of HR

6. Character Analysis List of Characters
1. Luke Robinson (Managing Partner of HR)
2. Philip Washington (Former CEO)
3. Bernie Shargall (Current CEO) + Executive Committee
Justin

7. Luke Robinson, Managing Partner of HR
Successful HR Director at Powell Group, shows initiative to take on challenges, shows a lack of drive and motivation to continue after failures, sees the value of HR and has knowledge of HR management, lacks confidence and leadership, fails to communicate effectively with higher authority figures, neurotic personality.

8. Philip Washington, Former CEO
Charismatic leader, single-handedly performed strategic HR functions, business-savvy executive who gave Loft Securities a high reputation.

9. Bernie Shargall, CEO & Executive Committee
Shargall recruited outside the firm, lacks the charisma and leadership Philip Washington brought to Loft, shows the desire to improve Loft’s recruiting of talent, lacks knowledge of strategic HR functions, Shargall and committee do not demonstrate active-listening abilities.

10. Problems Hierarchical Structure Lack of Leadership
Recruitment and Retention
Improving employee morale and commitment
Routine Administrative Problems
Justin

11. Problem 1 - Hierarchical Structure
Centralized on Top Management
Little support from employees
Focused on consulting, thinking and planning, rather than doing
natalie

12. Solutions Decentralize!
Distribute work/Give lower employees more power
Wide range of skill sets needed
Implement practices to enhance employee skill sets
natalie

13. Pros & Cons Pros: Cons Decentralizing will take pressure off Robinson
Distributing work will give employees more responsibility
Emphasis of team work
Greater support from employees
Robinson may form better relationship with line managers and employees
Create a self-managing workforce
Convince Shargall and executives of importance of HR Department
Cons
Long-term commitment
Needed commitment from both Robinson and Executive committee
natalie

14. Problem 2 - Lack of Leadership
Robinson & Shargall lack leadership that Washington possessed
Shargall from outside firm
Robinson’s lack of leadership and initiative
HR Ambassador Program is not effective
natalie

15. Solutions Create leadership model Create a democratic leadership style
Specify goals and expected contributions from executives and managers
Create a democratic leadership style
Collaboration & Information Sharing
Create an open and honest work force within the organization
Information Sharing
Involve employees and managers

16. Pros & Cons
Pros:
Leadership model increases executive and manager motivation
Leadership model supplies a starting point
Information sharing emphasizes trust, transparency, and collaboration
Cons:
Employees could leak information if it is shared with them
natalie

17. Problem 3 - Recruiting and Retention
Loss of attractiveness to talent candidates
No well-defined regulation on recruiting
Retention
Loss of two senior managers
Current employees do not think Loft is a better place to work anymore.
Employees do not trust HR
jimmy

18. Solutions Outsource recruiting function (short-term) Retention:
Focus on long-term goals first
Robinson’s profession
Pick-up later
Retention:
Conducting series of survey.
Outsource the retention paperwork with detail requirement

19. Pros & Cons Pro’s Con’s Achieve the career transaction of Robinson
Put more focus on strategic goal
More professional emphasis on attracting talent
Gain efficiency on simplify HR roles to achieve flexibility
Hold back two functions
Con’s
Selection of strategic partner
Strategy, position, personnel, not clear defined
Less control in process
New employees not familiar with Loft’s culture
Increasing on employees’ transaction cost
(Increasing turnover)
jimmy

20. Problem 4 - Improving employee morale and commitment
Employees are not familiar with the HR people
Employees can’t see the future of the company
The rumors by two left senior manager
jimmy

21. Solutions Career development (RBV) Talent management program
Training / presentation
Weekly conference
Memo form
Talent management program
Behavior perspective & cybernetic system in theory
Focusing on idea sharing
Information & technical support in the work
Encourage self motivation

22. Pros & Cons Pro’s Motivate employees Attention transferring
Giving the future
Growth with Loft
Con’s
Time consuming
Insufficient investment
jimmy

23. Problem 5 - Routine Administrative Problems
Mishandled discrimination charge
Year-end executive bonus check error
Problems occurred before Robinson was hired

24. Solutions Outsource routine administrative work to 3rd party
Common outsourced functions:
Payroll
401k plans
Health and welfare benefits
Background checking
Defined benefit plans
paul

25. Pros Cons Reduces time Reduces resources spent
Concentrate on strategic activities
HR not blamed if problem
Paying extra money for functions HR can handle
Hard time convincing Shargall
Paul

26. Conclusion Hierarchical structure Lack of leadership Decentralize
Empower employees
Range of skill sets
Implement practices
Lack of leadership
Create leadership model
Democratic leadership
Information sharing
Managerial implication
It is not easy to build or implement practices from scratch. There is also no best solution for the HR Department’s problems. If Robinson wants to take the career challenge, here is how. Changing the HR Department and maintaining competitiveness is time consuming. Instead of trying to access entire HR functions, Robinson should outsource some functions such as recruiting, and administrative functions to stop the slow bleeding in Loft’s human capital. Although outsourcing might not be the best solution for Loft in the end, Robinson can focus his best effort to recover the HR overall alignment by implementing HIWP. While outsourcing certain functions, implementation of HIWP will help decentralize the organization, and gain back management’s support and leadership.

27. Conclusion Recruiting and retention
Recruitment: Outsourcing recruitment for the short term
Retention: Conducting surveys
Improving employee morale and commitment
Career development
Talent management program
Routine administrative problems
Outsource routine administrative work
Managerial implication
It is not easy to build or implement practices from scratch. There is also no best solution for the HR Department’s problems. If Robinson wants to take the career challenge, here is how. Changing the HR Department and maintaining competitiveness is time consuming. Instead of trying to access entire HR functions, Robinson should outsource some functions such as recruiting, and administrative functions to stop the slow bleeding in Loft’s human capital. Although outsourcing might not be the best solution for Loft in the end, Robinson can focus his best effort to recover the HR overall alignment by implementing HIWP. While outsourcing certain functions, implementation of HIWP will help decentralize the organization, and gain back management’s support and leadership.

28. Questions?