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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

Techniques

3. Benefits

4. Labor & Employee Relations

5. Compensation Fundamentals

6. Health, Wellness, & Disability

Management

7. HR Development

Agenda - HR’s Strategic Role

1. HR’s Evolving Role

2. Strategic Planning & the Change

Management Process

3. HRIS

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

Partnering

– 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

phases:

– 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

wins.

– Commitment – diagnosis: enthusiasm & cooperation; people

identify with organization; look for new challenges.

Management – set long term goals; reward those who have

changed.

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

procedures.

– ID’s high risk conditions

• Monitors accidents & their costs by type and

location.

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

Weaknesses:

•Slow response time to change

•Slow decision making, hierarchy overload

•Poor horizontal coordination among departments

•Less innovation

•Restricted view of organizational goals.

Strengths:

• 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

Strengths:

•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

Weaknesses:

•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

Strengths

•Adaptability & coordination in product divisions & efficiency in

centralized functional departments

•Better alignment between corporate and division level goals

•Achieves coordination within & between product lines

Weaknesses

•Potential for excessive administrative overhead

•Leads to conflict between division & corporate departments.

Option 5: Matrix

Strengths:

•Achieves coordination to meet dual demands from environment

•Flexible sharing of human resources across products

•Works for complex decisions & frequent changes in unstable

environment

•Provides opportunity for functional and product skill development

•Best in medium organizations with multiple products.

Weaknesses:

• Dual authority, can be frustrating & confusing.

• All need good interpersonal skills & extensive

training

• Time consuming, involves frequent meetings &

conflict resolution

• Requires collegial rather than vertical type

relationships

• 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

individuals;

– 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.



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