historical perspectives on managing human resources
TRANSCRIPT
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HISTORICAL
PERSPECTIVES ONMANAGING HUMAN
RESOURCES
Implementing Behavioral Science
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Comparison OB Theory ConstructionDeductive (Mostly)
HR Implementation
Inductive (Mostly)
Difference between theory
prediction & result
Actions taken on
employees
Theoretical
Creativity
Practical Innovation
Theory
Rational
Empirical
Closed Loop of
Scientific Theory
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EMERGENCE OF HR
AS A PROFESSION
Civil Service (Pendleton Act)
Personnel specialists in industry
Emergence of the Personnel Dept.
The Science Base of HR
Inclusion in university curricula
Globalization of management practice
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A BRIEF HISTORY OF
AMERICAN HRM
Scientific Management
Industrial Welfare
Movement
Early Industrial Psych
Human relations
Movement
The Organization as a
Social System
The Labor Movemento The Growth of Unionso Violence in Labor Relationso Government & Labor:
Clayton Act 1914
NLRB 1918 Railway Labor Act 1926 Norris LaGuardia 1932 National Indl Recovery Act
1933 Wagner Act 1935
Fair labor Standards Act1938 Taft-Hartley 1947 Landrum Griffin 1959
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HR and OrganizationalEffectivness
Porter (1985) HR systems can:o Help organizations gain advantage by lowering costs, increasing
sources of differentiation, or some combination of the two
Effective management of human capital is crucialto profitability and ability of the firm to compete(Boxall & Purcell, 2000; Delery & Shaw, 2001)
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Issue Traditional HR Strategic HR
Mind set Transactional
Compliance/enforcement
Transformational
ConsultativeView of Org Micro
Narrow skill application Macro Broad skill
application
Education HR Specialist Limited bus. Acumen
Basic buscompetency
Knowledge ofo Org Theoryo Org Cultureo Org Changeo Strategic Mgmto Job Design
View ofemployees
Heads Costs
Minds; assets Critical resources
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Issue Traditional HR Strategic HR
Time frame Short-term, immediateneeds
Longer term,current & futureneeds
View of Org Micro Narrow skill application
Macro Broad skill
application
Process v.Outcome
Process focused Process controlling
Results oriented Process innovation
Risk
Risk averse Reliance on what is
proven
Risk takers Experimentalism
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HR METRICSTraditional HR Metrics:
Rarely emphasize strategicperformance drivers in the firm
Not embedded within the strategy-implementation process
Result: inability to show how HRdecisions and issues influence firmperformance
The Usual Suspects:
Hours of training Time to fill an open position Number of insurance claims
processed Number of tests administered
Current Metrics:
Cost Control Driving out costs in the HR function Contributing to operational efficiencies
outside of HR
Value Creation How does the overall HR system
intersect with the process ofimplementing the strategy of the
business? How do effective HR systems contribute
to human capital that is valuable, rare,
and difficult to imitate?
AlignmentThe entire HRM system is:
Internally consistentExternally aligned with strategy
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How Does HRM Add
Value? Cost Controlo Finding the HR highest expenses & minimizing them
o Negotiating the best deal in benefits
Value Creation
o Providing human resources that give the competitive edge
Alignment with Strategy
o Ensuring the right people with the right attitude and the right training
to execute the strategy
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HUMAN RESOURCE
INFORMATION SYSTEMS HRIS maintains comprehensive data for all
employees: Instantly available real time data
HRIS allows HR to measure all of HumanResource Management activities fromrecruitment to succession planning
HRIS can also be used for cost planning &reporting
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When it works really well . . . Organizations are productive because they achieve financially,
with customer satisfaction, with process improvement, and withknowledge & learning
HR staffers are internal consultants - - provide help in solvingpeople problems
HR measures results using accepted metrics
HR staffers actually understand the business
Top Management is involved in HR strategy because its part ofthe overall strategy
VP of HR is equal to VP of Finance, etc.
Organizations are managed as if tomorrow really matters