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How to Succeed in HR Without Really Trying:


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How to Succeed in HR Without Really Trying:

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