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HR’s Strategic Role

Human Resources Series

HR Development & Training

Human Resources Series

1. HR’s Strategic Role

2. Effective Recruitment & Selection


3. Benefits

4. Labor & Employee Relations

5. Compensation Fundamentals

6. Health, Wellness, & Disability


7. HR Development

Agenda - HR’s Strategic Role

1. HR’s Evolving Role

2. Strategic Planning & the Change

Management Process


4. Organization Design

5. Measuring Organization Performance

6. Measuring Human Performance

7. Ethics

HR’s Role

• Roles are evolving from administrative (personnel function) to strategic partner.

– Consultative Role: Coach managers to manage their resources within the laws &

ensure maximum potential.

– Change Management Role, systems design.

– Administrative Role, e.g. records maintenance.

HR’s Role in New Economy

• Focus on Business Objectives

– Structure activities around key business objectives

• Focus on the Environment

– Scenario planning on workforce issues to anticipate changes in the environment.

• Focus on Core Values

– Ensure that core values are embedded in key HR elements, e.g. hiring, job

requirements, rewards.

Role of Human Resources: General

Emerging Roles Examples of Strategic


– Effectively managing & utilizing people

– Tying performance appraisal & compensation to competencies.

– Developing competencies that enhance individual & organizational performance

– Increasing the innovation, creativity & flexibility necessary to enhance competitiveness.

– Applying new approaches to work process design, succession planning, career development & interorganizational mobility.

– Managing the implementation & integration of technology through improved staffing,

training & communication with employees.

Change Management

• Change Management is a Critical HR Professional Skill

• Change Defined:

– “The adoption of a new idea or behavior by an organization.”

• HR’s role in the change process is to help forecast future changes, develop systems and policies for managing human capital before, during & after the change.

• HR Management’s Role in Strategic Organizational Change comes in 2


– Planning

– Implementation

Change Management – Planning

• Horizon scan & strategic planning process:

– Identify potential change drivers through SWOT analysis: (Strengths, Weaknesses, Opportunities, Threats)

• Economic

• International

• Technological

• Social

• Employment

• Demographics

• Political

– Use SWOT (Strengths, Weaknesses, Opportunities, Threats) to identify organizational changes or human resource needs for the future.

• Identify business strategies for Dealing With

Each, (High Level Directions/Initiatives)

• ID Key Actions for each strategy

• Identify Targets

• Create Communications/Management Strategy

Change Management – Implementation

• Lewin’s Three-Step Procedure of Change:

– Unfreeze present level of behavior

– Movement from present to new

– Refreezing process

• Kotter’s Change Management Model

– Unfreeze

• Establish Sense of Urgency

• Form Powerful Guiding Coalition

• Create the Vision

• Communicate the Vision

– Movement

• Empower Others to Act

• Plan for Short Term Wins

• Consolidate Improvements

– Re-Freeze

• Institutionalize

Change Management – People

• 4 Phases of Transition:

– Denial – diagnosis: common to observe withdrawal; focusing

on the past; increased activity with reduced productivity.

Management: confront with information; reinforce reality of

change; explain what they can do; give them time.

– Resistance – diagnosis: anger, blame, depression,

resentment, continued lack of productivity. Management:

listen, acknowledge feelings, be empathetic; help people to say

good by to the old; sometimes ritual is important. Offer rewards

for change, be optimistic.

– Exploration – diagnosis: confusion, chaos; energy; new ideas;

lack of focus. Management: facilitate brainstorming, planning,

help people to see opportunity, create focus through short term


– Commitment – diagnosis: enthusiasm & cooperation; people

identify with organization; look for new challenges.

Management – set long term goals; reward those who have


Human Resources Information Systems

Role of HRIS

• Strategic Management:

– Environmental scanning results, quality & productivity improvement monitoring.

• Workforce planning & employment:

– Tracks promotion, transfers, hiring, and termination rates for each employee by job group.

– Records the number and percentage of protected categories of employees.

– EEOC data

– Applicant info & utilization reports to help monitor affirmative action programs.

• Human Resource Development:

– ID career paths

– Records for education, skills, & completed training

– Course registration/administration.

– Evaluate Performance.

• Comp & Benefits:

– Track salary survey results

– Facilitate benefit administration

– Track tuition reimbursement

– Track retirement planning

– Track COBRA & HIPAA documentation.

• Employee & Labor Relations:

– EE discipline records

– Labor distribution data

– Union service data

– Attitude survey results

• Occupational health, safety & security

– Accident & illness trends

– Insurance & workers’ comp claims

– Illness & injury medical exam & follow-up


– ID’s high risk conditions

• Monitors accidents & their costs by type and


Organizational Design

Indicators of Organizational Design

• Define Work activities – core functions

• Reporting Relationships – who reports to whom

• Departmental Grouping – 5 Options

Option 1: Functional

Administration & Research


•Slow response time to change

•Slow decision making, hierarchy overload

•Poor horizontal coordination among departments

•Less innovation

•Restricted view of organizational goals.


• Allows economies of scale within functional departments

• Enables in depth skill development

• Enables organization to accomplish functional goals

• Works best in small to medium sized organizations

• Works best with 1 or a few products.

Option 2: Divisional


•Good for fast change in unstable environment

•High client satisfaction due to product responsibility & contact points are clear

•High coordination across functions

•Units can adapt to differences in products, regions, clients

•Best in large organizations with several products

•Decentralizes decision making


•Eliminates economies of scale

•Leads to poor coordination across product lines

•Eliminates in-depth competence & technical specialization

•Makes integration & standardization across product lines difficult.

Option 3: Geographic

Strengths & Weaknesses similar to divisional

Option 4: Hybrid


•Adaptability & coordination in product divisions & efficiency in

centralized functional departments

•Better alignment between corporate and division level goals

•Achieves coordination within & between product lines


•Potential for excessive administrative overhead

•Leads to conflict between division & corporate departments.

Option 5: Matrix


•Achieves coordination to meet dual demands from environment

•Flexible sharing of human resources across products

•Works for complex decisions & frequent changes in unstable


•Provides opportunity for functional and product skill development

•Best in medium organizations with multiple products.


• Dual authority, can be frustrating & confusing.

• All need good interpersonal skills & extensive


• Time consuming, involves frequent meetings &

conflict resolution

• Requires collegial rather than vertical type


• Requires dual pressure from environment to

maintain power balance.

Measuring Organizational Performance: Balanced Scorecard

• Balanced scorecard helps individual business function measures with organizational strategies.

• 4 Major categories for the balanced scorecard:

– Innovation & Learning

• Measures skill and motivation of employees.

• Example measure – employee engagement.

• Value proposition – link to organization productivity.

– Internal Processes

• Core processes are identified along with key measures.

• Example measure – employee productivity.

– Financial

• Profit or budget performance against goals.

– Customer

• Quality, effectiveness of delivery, and overall customer satisfaction.

Measuring the Performance of Human Capital

• HR Audit – Example Areas to Investigate

– Organization of HR Department

– Organization Development (Staffing Forecasts)

– Recruitment & Selection

– Compensation

– Employee Benefits

– Employee Relations & Communications

– Personnel Policies/Workplace Rules

– EEO/Regulatory Compliance

– Training & Development

– Labor Relations

– Safety, Health & Wellness

• Human Capital Metrics

• Absence rate

– [# days absent] / [Avg # employees x # workdays]

• Cost per Hire

– Total cost of hiring process / # employees hired

• Health Care costs per employee

– Health care costs / # Employees

• HR expense factor

– HR expense / Total Operating Expense

• Human Capital ROI

– [Revenue – Operating Expense – (Compensation Cost + Benefits

Cost)] / [Compensation cost + Benefits Cost]

• Human Capital Value Added

– Revenue – [Operating Expense – (Compensation cost + Benefit Cost)]

• Turnover Rate

– [# Separations during month / average # of employees] x 100

Code of Conduct

• Trustworthy Conduct – including dependability, loyalty, & honesty in communications and actions.

• Respectful behavior – treating everyone with civility, courtesy, tolerance & acceptance, and recognizing the worth, dignity and unique characteristics of each individual.

• Accountability – taking personal responsibility for one’s actions & decisions.

• Fair & just actions – utilizing equitable processes in decision making.

• Compassion – caring for others, both within & apart from the UCSF community, & providing the highest quality service to patients & humanity.

• Good citizenship – striving to make the UCSF community function well now & in the future.

• Responsible management – including prudent use of University resources in a fiscally responsible manner.

Human Resource Values

• The core values and beliefs that support our vision should be/are:

– Ethics and Integrity: Committing to the highest

standards of behavior demonstrated by being open, fair, honest and consistent in dealing with the campus community and the public;

– Supportive Work Environment: Developing a work environment that enables productivity and develops human potential;

– Diversity: Respecting individual differences and ways of thinking, and celebrating individual differences;

– Customer Service: Providing high-quality services that are measured by satisfaction from those we serve;

– Innovation and Quality: Recognizing and rewarding creativity and "out of the box thinking that results in positive change and creates a new standard of performance;

– Teamwork and Collaboration: Working together collectively to achieve goals and purposes common to the organization's strategic directions, and where the

result is greater than the sum of its parts;

– Champions of Change: Taking risks that encourage new methods and tolerate honest mistakes when peak performance and limited resources are combined for a

positive outcome;

– Effective Communications: Listening and speaking in a manner that is timely, honest, thorough, open, and sensitive within our organization as well as between


– High Performance/Maximum Accountability: Providing the ability to make choices and take responsibility for them so that individuals can be measured by the goals they set and their commitment and ability to achieve them.

– Fun: Enjoying the work, relationships and time we share together as colleagues focused on a common mission.


From India, Nasik
i want to do PHD because i have been qualified for JRF. i just want to know some new concept is that any body give me some idea. i am confused
From India, New Delhi
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