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How to Succeed in HR Without Really Trying: How to Succeed in HR Without Really Trying: Presentation Transcript

  • How to Succeed in HR Without Really Trying: A Roadmap for HR Development in the Coming Decade Presentation to the Evansville-Area Human Resource Association Dane M. Partridge, Ph.D. Associate Professor of Management University of Southern Indiana March 27, 2003
  • Is HR Playing a Strategic Role in Your Organization?
    • What’s the best change my organization can make to prepare for the future?
    • What makes an Ee want to stay with my organization?
    • How are we going to invest in HR so that my organization has a better HR dept than our competition?
            • Source: Halcrow (1988), reported in Noe et al. (2003)
  • Staffing the HR Function
    • What are the KSAs of HR staff?
      • What coursework?
        • Many MBA programs have no required HR course
      • What certification?
        • Bernardin (2003) indicates that only eleven percent of SHRM members have HR certification via HRCI
        • DMP not sure this figure is accurate – Bates (2002) reports ~56,000 HR professionals have passed a certification exam; 54% of PHR candidates are SHRM members, 72% of SPHR candidates (HRCI State of the Institute Report 2002).
  • Staffing the HR Function
    • Inherent exaggeration of abilities re: “people skills”?
      • Survey of HS seniors
        • 70% believed they were above average in leadership ability; 2% believed they were below average
        • 100% believed they were above average in ability to get along with others, 60% believed they were in top 10%, 25% believed they were in top 1%
            • Source: Ruggiero (2001)
      • Should we even be teaching “people skills” at undergraduate level?
        • Research indicates UG students have less interest in and perceive less relevance of OB course than other required business courses
            • Mintzberg (1989), Burke and Moore (2003)
  • Staffing the HR Function
      • More generalizable phenomenon, re: self-ratings?
        • Survey of 92 engineers (Meyer, 1980)
        • Asked to self-rate relative to peer group, 0-100 (percentile)
        • Mean: 78 th percentile
        • Only two of 92 rated themselves below 50 th percentile (45)
  • Some Discrepancies Between Research Findings and HR Practices
    • Recruitment
      • Research indicates that quantitative analysis of recruitment sources using yield ratios can facilitate efficiencies in recruitment
      • In practice, less than 5% of surveyed companies calculate yield ratios; less than 20% know how
            • Source: Bernardin (2002)
  • Some Discrepancies Between Research Findings and HR Practices
    • Staffing
      • Research indicates that
        • Realistic job previews can reduce turnover
        • Weighted application blanks reduce turnover
        • Structured, behavioral, or situational interviews are more valid
        • Graphology is invalid and should not be used
      • In practice
        • Less than 20% of companies use RJPs in high-turnover jobs
        • Less than 10% know what a WAB is; less than 1% use
        • Less than 30% of companies use structured interviews
        • Graphology’s use is increasing in U.S.
  • Some Discrepancies Between Research Findings and HR Practices
    • Performance Appraisal
      • Research indicates that
        • Traits should not be used on rating forms
        • Raters should be trained
        • The appraisal process should be an important element of managers’ jobs
      • In practice
        • More than 75% of companies still use traits
        • Less than 30% train raters
        • Less than 30% of managers are evaluated on performance appraisals
  • Some Discrepancies Between Research Findings and HR Practices
    • Compensation
      • Research indicates that
        • Merit-based systems should not be tied into base salary
          • Because size of bonus that can be offered is greater, cost to org in long run is much less
        • Gainsharing is an effective pay-for-performance system
      • In practice
        • More than 75% of companies tie merit pay to base pay
        • Less than 5% of companies use gainsharing where they could
  • Quiz!!!
    • Think back to your first day in HR…
      • What were you most confident about, in terms of your preparation for your responsibilities?
      • What were you least confident about?
      • What, in terms of your preparation, contributed to your confidence or lack thereof?
      • How could your development have better addressed your deficiencies?
  • TRW’s HRM Core Competencies
    • Leadership and Managing Change
    • Business Skills
    • HR Functional Leadership
    • HR Technical Skills
            • Source: Milkovich and Newman (1999)
    • “ Core Competencies”: “The skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness.”
            • Source: Jones (2001)
  • TRW’s HRM Core Competencies
    • Leadership and Managing Change
      • Integrity
      • Efficiency
        • Performing in cost-effective manner
      • Objectivity
        • Clear perception of org and political reality
      • Proactivity
      • Risk taking
        • Taking action under conditions of uncertainty
  • TRW’s HRM Core Competencies
    • Leadership and Managing Change (cont.)
      • Decisiveness
      • Professionalism
        • Consciousness of one’s professional image
      • Negotiation Skills
        • Facilitating “win-win”
      • Communication Skills
        • Written, Oral, Non-verbal(!)
          • Brockbank (2003) found interpersonal competencies more important than verbal and written communication skills
      • Team Management Skills
  • TRW’s HRM Core Competencies
    • Business Skills
      • Industry Knowledge
        • Value chain, suppliers, competitors, how org satisfies customer needs
          • Knowledge of value chain has significant impact on business performance (Brockbank, 2003)
      • Strategic Management
        • Understanding and planning for environmental changes
      • Organizational Awareness
        • Understanding business operations, how business competes, cultural/value systems impacting org performance
  • TRW’s HRM Core Competencies
    • Business Skills (cont.)
      • Total Quality Management
        • Continuous Improvement
      • General Management Skills
        • Understanding of finance, marketing, law, IT
      • Partnership w/mngt team
    • Note: knowledge itself is insufficient to contribute to high-performing organization – must put knowledge into practice….Achieving results more important to personal credibility than getting along well w/mngt team.
            • Source: Brockbank (2003)
  • TRW’s HRM Core Competencies
    • HR Functional Leadership
      • Network Building
        • Working effectively w/others, both inside and outside org
      • Setting the Vision for HR
      • Selecting and Developing Staff
        • Identifying and implementing org and individual developments plans
      • Value-added perspective of HR
        • Communicating to mngt how HR can contribute to org
  • TRW’s HRM Core Competencies
    • HR Technical Skills
      • HR Planning
        • Competencies in org design now fundamental, including org and job restructuring (Brockbank, 2003)
      • Communications
        • Fostering understanding of key business and HR issues
      • Work Force Diversity
      • Selection and Placement
        • Including effective performance mngt system
      • Training & Development
  • TRW’s HRM Core Competencies
    • HR Technical Skills (cont.)
      • HR Information Systems
      • Compensation and Benefits
        • Performance-based, linked to performance mngt
      • Health, Safety, and Security
      • Org Effectiveness
        • Managing cultural change within org to impact org effectiveness
          • Note that culture management makes strategic contribution (Brockbank, 2003) [focusing internal culture on meeting needs of external customer, aligning HR w/ desired culture, facilitating quick change]
      • Ee and Labor Relations
  • Additional Competencies
    • International
      • Infusing org culture w/local talent worldwide
      • Integrating foreign Ees into U.S.-based businesses
      • Balancing differentiated pay scales/benefits levels to achieve internal equity
      • Restructuring recruiting practices to ensure org is capturing best talent globally
            • Source: Patel (2002) [ SHRM Workplace Forecast: A Strategic Outlook]
  • Top Ten Workplace Trends as seen by HR professionals
    • Use of technology to communicate with Ees
    • Rising health care costs
    • Increased vulnerability of intellectual property
    • Managing talent
    • Greater demand for high-skilled workers than for low-skilled
  • Top Ten Workplace Trends as seen by HR professionals
    • Labor shortage
    • Change from manufacturing to information/service economy
    • Increase in employment-related government regulations
    • Focus on domestic safety and security
    • Ability to use technology to more closely monitor Ees
            • Source: Patel (2002)
  • Implications
    • Given these trends in organizational environments, what are the implications for HR function?
      • How do we get from where we are to where we need to be?
        • What organizational and individual development needs to be provided to facilitate change?
        • Are there additional competencies that need to be developed so as to effectively manage these trends?
  • Evolving HR Function
    • Some traditional roles, e.g., HR generalist, benefit specialist, likely to become less common and less important
    • Will be increasingly important to be able to illustrate cost effectiveness, value-added contribution of HR practices
      • And will need to manage relationship w/providers of outsourced activities (transactional functions)
    • Know finance!
      • Will business degree be a requirement in the future?
      • What would be the implications?
      • “ Human capital strategist”?
            • Source: Bates (2002), Glister (2000)
  • Challenges (Potholes?)
    • David Ulrich (U of Michigan): “We have to shift the focus of HR away from training and process to the outcomes, away from a people function to an organization function. I’m not optimistic about all HR people” making that transition.
            • Source: Bates (2002)
  • Staffing the HR Function (revisited)
    • KSAs for HR?
    • Preparation (Education and Experience)?
      • Certifications – value and nature
        • Specialist certifications (e.g., ACA’s Certified Compensation Professional and Certified Benefits Professional, IFEBP’s Certified Employee Benefits Specialist)
  • Staffing the HR Function (revisited)
    • HR Competencies – Build or Buy?
      • Re: HRIS, most HR certifications attest to non-technological body of knowledge. PHR, SPHR not intended to address individual systems or software (Glister, 2000)
        • Software-specific training (e.g., PeopleSoft)
        • New International Association for Human Resource Information Management (IHRIM) certification (purported to be both technical and functional)
        • Knowledge relevant to choosing right vendor
        • HRCI due to include more technology emphasis in revised curriculum
      • MBA w/ HR concentration? (Note that USI has moved in opposite direction…)
  • HRCI Core Knowledge Areas
    • Knowledge of needs assessment and analysis
    • Knowledge of third-party contract management, including development of requests for proposals (RFPs)
    • Knowledge of communication strategies
    • Knowledge of adult learning processes
    • Knowledge of motivation concepts and applications
    • Knowledge of training methods
    • Knowledge of leadership concepts and applications
    • Knowledge of project management concepts and applications
    • Knowledge of diversity concepts and applications
  • HRCI Core Knowledge Areas
    • Knowledge of human relations concepts and applications (for example, interpersonal and organizational behavior)
    • Knowledge of HR ethics and professional standards
    • Knowledge of technology and human resource information systems (HRIS) to support HR activities
    • Knowledge of qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes
    • Knowledge of change management
    • Knowledge of liability and risk management
    • Knowledge of job analysis and job description methods
    • Knowledge of employee records management (for example, retention, disposal)
    • Knowledge of the interrelationships among HR activities and programs across functional areas
            • Source: http://www.hrci.org/certification/spec-core.html
  • Conclusions and Challenges
    • As business organizations and the business environment continue to evolve, the competencies required of HR professionals are also evolving.
    • Knowledge is necessary but not sufficient prerequisite for success; skills and abilities are critical (i.e., the ability to put theory into practice).
    • Key org and individual development question pertains to those skills and abilities – build or buy?
    • To great extent, both degree programs and certification are indicators of knowledge, not necessarily competencies.
    • Hmmm…