1. Copyright 2000 - South-Western College Publishing Leadership by Human Resources Organizational Roles and Choices

2. Copyright 2000 - South-Western College Publishing Module 3 - 1 Top 5 Barriers to HR Leadership HR and its employees lack business and strategic orientation HR executives not respected by top management HR holding on too much to the HR of the past- paper-pushing roles HR unwilling to take the lead in facilitating revolutionary change HR chases too many fads/ quick fixes

3. Copyright 2000 - South-Western College Publishing Module 3 - 2 Module Objectives  HR Responsibilities and Objectives  HR Roles  Management Choices/ Constraints on HR Decision-making  Delivery of HR Roles  Human Resource Effectiveness: Contrasting Approaches

4. Copyright 2000 - South-Western College Publishing Module 3 - 3 What is Effective Management of Human Resources? Think about companies that you or someone you know have worked for or you’ve read about. What is it about these employers HR practices that might lead you or experts to rate them as being particularly effective? Employees are valued Innovative HR policies (invested in employees) Strategic HR orientation: Goal of HR was to make the business successful

5. Copyright 2000 - South-Western College Publishing Module 3 - 4 Why is Effectively Managing HR Critical to Organizational Success? Labor costs are a major organizational operating expense People affect productivity Having a skilled, motivated, and adaptable work force or (“people embodied organizational skills”), is directly related to firm profitability.

6. Copyright 2000 - South-Western College Publishing Module 3 - 5 Introduction: Traditional (Old) HR Paradigm Think “People” First - The Conscience Less sensitive to Business Impact Leverage Human Assets to Maximize Employee Satisfaction and Contribution Think “Bottom Line” First Less Alert to People Impact Leverage Financial and Capital Assets to Generate Profits, and “Delight” Customers Source: Adapted from Conner, J. And Wirtenberg, J. “Managing the Transformation of Human Resources Work”

7. Copyright 2000 - South-Western College Publishing Module 3 - 6 New HR Paradigm Integrate Business and People Strategic Planning Joint Responsibility to share effective human resource management learning Leverage financial, technological, and human assets to create value, “Delight” customers and maximize employee satisfaction Shared Accountability for Business Results and Managing People Human Resource Managers Business Unit Managers Source: Adapted from Conner, J. And Wirtenberg, J. “Managing the Transformation of Human Resources Work”

8. Copyright 2000 - South-Western College Publishing Module 3 - 7 HR Responsibilities and Objectives Purpose of the Human Resource Function: to design systems and policies to manage human assets in a way that enhances the individual and collective contribution of people to the short and long term success of the enterprise. HR Policy Clusters Strategy & Organization Talent Identification and Deployment Human Capital Development Reward Management Employee Relations and Voice

9. Copyright 2000 - South-Western College Publishing Module 3 - 8 HR is at a Critical Historical Juncture

10. Copyright 2000 - South-Western College Publishing Module 3 - 9 HR Under Pressure Most firms have not completely switched to new HR paradigm HR strategies are important because they are malleable and affect human capital Key to differentiate between management of HR function Vs. HR management While orgs. cannot easily change firm assets, they can change how they manage people. HR practices can operate in 2 ways: increase value lower human capital investments

11. Copyright 2000 - South-Western College Publishing Module 3 - 10 HR Strategy Execution Ensure critical HR strategies and processes are aligned with critical to the business Provide insights that lead to developing/strengthening competitive advantage Work with line management to develop and implement practices

12. Copyright 2000 - South-Western College Publishing Module 3 - 11 Model for Understanding HR Strategy: Context, Roles, & Constraints

13. Copyright 2000 - South-Western College Publishing Module 3 - 12 HR Roles: The Four Ts Transaction –Routine HR –Day to day operational processes –Administrative Expert Translation –Day to day people communication –Promote employee commitment –Facilitate open lines of communication and feedback Transition –Execute firm strategy –Integrate & Develop future HR practices and processes Transformation –Massive organizational change role –New organizational cultures, structures, work design to support major strategic business change

14. Copyright 2000 - South-Western College Publishing Module 3 - 13 Roles Transitional Transactional Transformational Translational

15. Copyright 2000 - South-Western College Publishing Module 3 - 14 Management HR Decision- Making Constraints/Choices Unilateral Full management discretion or decision-making rights Negotiated Jointly decided between employees and management or labor and management Imposed Out of firm’s control (e.g. legislation, critical customer demands)

16. Copyright 2000 - South-Western College Publishing Module 3 - 15 Basic Organizational Criteria for Effective HR Delivery Roles and Choices Occur in All Policy Domains Integrated Line-Staff Relationship& Delivery Top Management Commitment to HR Employee Relations Climate of Openness and Respect Ability to balance tensions in HR decision-making Competent HR Department

17. Copyright 2000 - South-Western College Publishing Module 3 - 16 HR Competencies Masters of Global Operating Skills Business Experts Technology Leveragers Expert Communicators Employee Champions Change Managers

18. Copyright 2000 - South-Western College Publishing Module 3 - 17 HR Role Delivery: Current Trends Strategic Emphasis –Ford 2000 shift from mostly transactional activities toward transformational emphasis (reengineering mix of activities and level of management and employee involvement Shared Services –Service centers: the consolidation or combining of transaction services in an organization; (Example 1-800 HR) Transformation- Based/Centers of Excellence: –Non-routine & Non- administrative HR activities that help transform a firm –Outsourcing

19. Copyright 2000 - South-Western College Publishing Module 3 - 18 Service Center vs. Center of Expertise

20. Copyright 2000 - South-Western College Publishing Module 3 - 19 HR Effectiveness: Contrasting Ways to Transfer Value Stakeholder/Multiple Constituency: Perceptions of customers –HR should be Customer service-oriented Utility: Translate economic utility of HR practices through financial indices –People and HR practices generate costs that should be managed Strategic: Practices impact a business’s ability to accomplish strategic goals –HR practices should match business strategies

21. Copyright 2000 - South-Western College Publishing Module 3 - 20 High Performance Model HR LeaderHR ManagerHR Specialist Success Factors Source: Adapted from Conner, J. And Wirtenberg, J. “Managing the Transformation of Human Resources Work”

22. Copyright 2000 - South-Western College Publishing Module 3 - 21 Application: Turnover of Key Staff Positions by Year

23. Copyright 2000 - South-Western College Publishing Module 3 - 22 Application: Contracts Not Renewed Due to Employee Turnover

24. Copyright 2000 - South-Western College Publishing Module 3 - 23 Application: Answer Worksheet Separation Costs

25. Copyright 2000 - South-Western College Publishing Module 3 - 24 Application: Answer Worksheet Replacement Costs

26. Copyright 2000 - South-Western College Publishing Module 3 - 25 Application: Answer Worksheet Training Costs

27. Copyright 2000 - South-Western College Publishing Module 3 - 26 AT&T

28. Copyright 2000 - South-Western College Publishing Module 3 - 27 AT&T: New Practices