Brief Overview of Historical Events that Affected Human Resources Reasons Why Things Are As they Are Today

Historical Turning Points in HR 1793 Samuel Slater – father of Industrial Revolution in US 1886 American Federation of Labor (AFL) – 1 st union in US 1890 Sherman Antitrust Act - balance power of mgmt & labor 1907 Immigration Act of 1907 – slowed labor growth 1909 Frederick Winslow Taylor – scientific mgmt 1911 Triangle Shirt Waist Company fire – attention to empl. safety 1913 Henry Ford – 5$ day; systematic tng; tenure-based outcomes World War I – systems approach to empl. testing; DOT 1926 Railway Labor Act – 1 st govt policy to encourage unions, 1930s Early HR Research Hawthorne Experiments – ( ) Maslow’s Need Hierarchy – ( ) McGragor’s Theory X & Y – (1960) Herzberg’s Motivators and Satisfiers – (1960) George Odiorne’s Management By Objectives – (1965)

Historical HR (cont) 1932 Norris-LaGuardia Act – “yellow-dog” contracts were unenforceable 1935 Social Security Act – beginning of social welfare 1935 National Labor Relations Act – prohibits employer unfair practice, NLRB 1938 Fair Labor Standards Act – minimum wage, exempt/nonexempt, overtime World War II – women in workforce, health care introduced 1946 Numerous labor strikes 1947 Taft-Hartley Act – unfair labor practices for unions/outlaws closed shop 1954 Brown vs. Topeka Board of Education – integrates schools 1964 Civil Right Act of 1964 – creates EEOC 1965 Equal Employment Opportunity Commission (EEOC) – enf EEO 1970 Occupational Safety and Health Act (OSHA) – ERISA (1974 ), others 1977 Human Resources Planning Society (now SHRM) 1979 Office of Personnel Management – personnel function more visibility

Historical HR (con’t) 1980s Stock option developed – for high level execs 1981 Professional Air Traffic Controllers (PATCO) strike – decline of unions 1985 Sperry Rand & Burroughs merge to form Unisys First of mergers and acquisitions Corporate downsizings 1987 PeopleSoft Inc – first HR management software 1980s (late) Global competition increases 1991 Clarence Thomas-Anita Hill hearings - sexual harassment 1994 Monster Board – online recruiting 1999 BP Amoco and Exult – $600M outsourcing arrangement (1 st for HR) 2001 World Trade Center attack – security on everyone’s job 2001 Fraud at Enron – govt reform - SOX 2006 IBM permanently stop defined benefit pensions – decline of benefits 2008 Government provides TARP funds to bankrupt businesses

Historical View of HR Roles

Current HR Roles Strategic Administrative Operational Global, long-term perspective Focuses on building the right culture and organization Day-to-day perspective Focuses on running the organization Focuses on compliance issues and record keeping

Strategic Human Resource Management The Diagnostic Model

ASSESS ENVIRONMENT SET OBJECTIVES APPLY HUMAN RESOURCE ACTIVITIES EVALUATE RESULTS F E E D B A C K EXTERNAL CONDITIONS World Conditions Economic Conditions Government Regulations Unions Technology ORGANIZATIONAL CONDITIONS Nature of the Organization Nature of the Work EMPLOYEE CONDITIONS Abilities (KSA) Motivation Interests EFFICIENCY Organization Employee EQUITY Organization Employee PLANNING STAFFING DEVELOPMENT EMPLOYEE/UNION RELATIONS COMPENSATION EFFICIENCY EQUITY THE DIAGNOSTIC MODEL George Milkovich John Boudreau

External Environmental Scanning Interprets data related to external opportunities and threats. Prepares HR to participate in strategic planning. –Employment –Demographics –Political Looks at seven key factors. Economic International Technological Social

Economic Factors Economic factors GDPCPI Disposable Income Inflation Interest rates

International Factors European Union Wage comparisons Trade agreements Globalization

Technological and Social Factors Technological factors –Advances in technology –Technological skills –Process changes Social factors –Worker skills –Corporate responsibility –Population shifts

Trends in Technology: Access to Knowledge and Information Knowledge management –Enhances the ability to retain intellectual capital. Web portals –Provide an interface to resources needed on the job. Internet –Provides information, enhances productivity, and improves communication.

Trends in Technology: Increased Training Access Streaming desktop video –Delivers training to the desktop. Provides access to E-learning –Provides access to training at home or work, – 24 hours a day/7 days a week. Virtual-reality technology –Paper-based training modules are replaced with ability to “see” training tasks or environment.

Trends in Technology: Changes in How Business Is Done Business-to-business integration –B-to-B e-commerce will become the dominant business model. E-procurement –Online ordering processes streamline transactions. Electronic signatures –Carry the same weight as a pen-and-ink signature. Application service providers –Host and manage an organization's software applications on the Internet.

Trends in Technology: Widening of the Digital Divide Refers to the gap between people who have computer access and those who do not. HR is instrumental in analyzing skill and technology levels in employees.

Employment Factors Immigration Migration Occupational and industry shifts Recruitment Unions Unemployment trends Turnover trends Relocation

Demographic Factors Generational differences Nontraditional labor force Unskilled labor WomenAge

Political Factors New President –(1 st Afro-American) New legislation –Assess organization’s liability. –Maintain compliance. –Integrate with other laws. –Train supervisors. Partisan climate –Analyze party priorities and platforms. Butter Guns

Internal Environmental Scanning Nature of the Work –What Business are we in? –How can we benchmark ourselves? Nature of the Organization –Are we optimally structured? –Do we have the right mix (amount) of resources? The Employee –Do they have the right knowledge, skills, abilities, attitudes (KSAAs) –Are they properly trained?

HR’s Role in Strategic Planning Serve the organization’s needs. Learn about the organization’s industry. Serve as a consultant. Gather facts and data. Build partnerships.

Phase 1: Strategy Formulation Must understand: What business the company is in. When to change the mission and alter strategy. How and when to communicate the mission. Strategy Formulation Develop mission and vision statements. Define organizational values.

Phase 2: Strategy Development S =Internal strengths W =Internal weaknesses O =External opportunities T =External threats Strategy Development Conduct a SWOT analysis. Establish long-term objectives (three to five years). Identify corporate, unit, and functional strategies. Diagnostic Model

Phase 3: Strategy Implementation Resources needed to achieve objectives: Financial Physical Human Technological Strategy Implementation Establish short-term objectives (six months to a year). Develop action plans. Allocate resources. Motivate employees.

Phase 4: Strategy Evaluation Assess strategies by noting changes in: –Internal strengths and weaknesses. –External opportunities and threats. Take corrective action when changes have occurred. Strategy Evaluation Review strategies at planned intervals. Measure performance. Take corrective action.

Functions of Management Henri Fayol Planning Studying the future, forecasting, setting goals, and planning actions. Organizing Designing a structure to meet goals and assigning resources. Coordinating Uniting all organizational activities and giving resources to accomplish goals. Directing Engaging in leadership and motivational activities that ensure effective results. Controlling Ensuring that the plan is followed.

Which of the following activities best prepares HR to participate in the strategic planning process? A.Evaluating a new HRIS system B.Restructuring HR’s recruiting system C.Training line managers on interviewing techniques D.Reviewing the company’s key financial data Answer: D

Which of the following typically appeals to Generation X workers? A.A project that requires collaboration and rewards team performance B.Time off to balance the needs of aging parents and children C.Supervisors who can create an effective team environment for them D.Structured work environments that reward individual creativity Answer: A

How can HR meet staffing needs in a small, privately held company affected by swiftly developing technologies? A.Recruit highly skilled workers who are flexible and adaptable. B.Promote entrepreneurial initiatives to help avoid unionization. C.Expand the global recruitment of technical workers. D.Train workers to be better prepared mentally and professionally for uncertainty. Answer: A