Jussi Leponiemi's sample lecture material on HRM

1. Human resource management
Jussi Leponiemi
Jussi.tapani.leponiemi@gmail.com
+358-44-2387860

2. The “New” HRD
• Employees as org. assets
• Driving business strategy
• Spanning organizational functions
• HRD Deliverables:
– Performance
– Capacity Building
– Problem solving/consulting
– Org. change and development

3. The “New” HRD
• Employees as org. assets
• Driving business strategy
• Spanning organizational functions
• HRD Deliverables:
– Performance
– Capacity Building
– Problem solving/consulting
– Org. change and development

4. Strategic HRD
• Integration of HRD with strategy formulation and
implementation
• Long-term view of HR policy
• Horizontal integration among HR functions
• Vertical integration with corporate strategy
• SHR as core competitive advantage

5. Firm Capitals
• Human Capital
– Knowledge, skills, abilities of individuals
• Social Capital
– Relationships in social networks
• Structural, cognitive, relational dimensions
• Intellectual capital
– Knowledge and knowing capability of social collectivities
• Procedural/declarative; tacit/explicit; individual/social
• Value and Uniqueness of capitals

6. Multiple Roles for HR (Ulrich, 1997)
Future/Strategic Focus
Day-to-day/Operational Focus
Processes People
Mgmt of SHR Mgmt of Trans-
Formation/Change
Mgmt of Firm
Infrastructure
Mgmt of Employee
Contributions

7. Definition of HR Roles
Role/Cell Deliverable/
Outcome
Metaphor Core Activity
Mgmt of SHR Executing corp.
strategy
Strategic Partner Aligning HR and
bus. Strategy
Mgmt of Firm
Infrastructure
Building an
efficient
infrastructure
Administrative
Expert
Reengineering org.
Processes
Mgmt of
Employee
Contributions
Increasing
employee
commitment and
capability
Employee
Champion
Providing
resources to
employees
Mgmt of
Transformation/Ch
ange
Organizational
renewal
Change Agent Managing
transformation and
change,

8. Universal/Best Practice Models
• TQM
– Corporate culture, communications, voice/involvement, job design,
training, performance measurement/evaluation, rewards, health/safety,
selection/promotion, career development
• Peters and Waterman “In search of excellence”
– Org. culture, leadership, customer focus, core competency
• High involvement management (Lawler)
– Developing skills and knowledge, pay for performance, investment in HR,
flexible operations, self-designing work systems, autonomous work-
teams

9. Universal HR Models
• Pfeffer (1998)
– Employment security
– Selective hiring
– Self-managed teams/decentralization of decision-making
– Comparatively high pay linked to firm performance
– Extensive training
– Reduction of status differentials
– Shared information
• Quality Awards (M. Baldrige, State Awards, etc.)
– HR Focus (work systems, education/training, well-being and
satisfaction)

10. Human Capital Architecture
Uniqueness of HC: High
Uniqueness of HC: Low
HCValue:Low
HCValue:High
Quadrant 1:
Empl’t Mode: Internal development
Empl’t Rel.: Organization focused
HR Configuration: Commitment
Quadrant 2:
Empl’t Mode: Acquisition
Empl’t Rel.: Symbiotic
HR Configuration: Market-based
Quadrant 3:
Empl’t Mode: Contracting
Empl’t Rel.: Transactional
HR Configuration: Compliance
Quadrant 4:
Empl’t Mode: Alliance
Empl’t Rel.: Partnership
HR Configuration:
Collaborative

11. Architecture of Intellectual Capital
Uniqueness of IC: High
Uniqueness of IC: Low
ICValue:Low
ICValue:High
Core Knowledge
Compulsory KnowledgeAncillary Knowledge
Idiosyncratic
Knowledge

12. Strategic HRD Roles
• Swanson/Toracco (1995):
• Helping implement strategy
• Helping determine strategy
• Setting strategy

13. HR Capitals
• Human Capital
– Individual level store of knowledge, skills, abilities (e.g.,
Becker)
• Social Capital
– Group level, network characteristics, density, centrality,
marginality (e.g., Adler and Kwon, 2002)
• Intellectual Capital
– Firm-level, formal (e.g., patents), informal (e.g., process
knowledge (e.g., Nahapiet & Ghoshal, 1999)

14. Johnson Diversey Case
Current vs. Future State of HR
Strategic Partner Change Agent
Administrative Expert Employee Advocate
35
20
25
40

15. Current vs. Future State of HR
Strategic Partner Change Agent
Administrative Expert Employee Advocate
35
20
25
40

16. Organization Development Roles &
Responsibilities
• The OD CEO has a dual responsibility
o Global implementation of strategic interventions
 Cultural assessment and alignment
 Performance Management
 Succession Planning
 Leadership Bench strength
o Support to HRs on regional and client interventions
 Process improvement tools
 Intervention design
 Knowledge transfer of OD skills

17. Global OD Model
HR Business Partners
Leadership Team
HR/OD
Business
Strategy
Solutions Emerging
Needs/
Feedback
Measures
Of
Effectiveness

18. Global OD Services
• Program Management of global initiatives -
– Core Employee Development
– ES&D
– Performance Management
– Leadership Development
– Consultation with senior leaders regarding -
– Customized interventions
– Assessment tools
• Services contracted with HRs (based on the
capacity of the OD COE) -
– Regional OD intervention design

19. HRD Definitions
HRD is…
“the integrated use of training and
development, organization development, and
career development to improve individual,
group, and organizational effectiveness.”
(McLagan, 1989)

20. HRD Definitions
HRD is…
“a process of developing and/or unleashing
human expertise through organization
development and personnel training and
development for the purpose of improving
performance.” (Swanson, 1995)

21. Example: Multinational Corporation
• Abbott Laboratories
• 60,000+ employees in 120 countries
• Five divisions
• Corporate and division level HRD
• Director of Training and Organizational Development, Ph.D. HRD
• Staff of 15 (instructional designers, trainers, OD consultants)
• Performance Management, Leadership Development, Quality
Management, Expatriate Training, New employee orientation,
regulatory/mandated training
• Diversity Initiatives
• Clients: Everybody!
• Divisional and corporate roles (committees, councils, strategic planning)

22. Trends in Professional HRD Work
• Higher Visibility
• Higher Accountability
• Greater Cross-Functional Involvement
• Higher Performance Demands
• Multiple Projects
• Greater need for comprehensive business knowledge
• Need for solid research and theory know-how

23. Definition of HRD
• A set of systematic and planned activities
designed by an organization to provide its
members with the necessary skills to meet
current and future job demands.

24. Line versus Staff Authority
• Line Authority – given to managers directly
responsible for the production of goods and
services (direct function)
• Staff Authority – given to units that advise and
consult line units

25. Limits of Authority
• HRM & HRD units have staff authority
(Overhead function)
• Line authority takes precedence
• Scope of authority – how far (how much) can
you authorize?

26. Critical HRD Issues
• Strategic management and HRD
• The supervisor’s role in HRD
• Organizational structure of HRD

27. Strategic Management & HRD
• Strategic management aims to ensure
organizational effectiveness for the
foreseeable future – e.g., maximizing profits in
the next 3 to 5 years
• HRD aims to get managers and workers ready
for new products, procedures, and materials

28. Supervisor’s Role in HRD
• Implements HRD programs and procedures
• On-the-job training (OJT)
• Coaching/mentoring/counseling
• Career and employee development
• A “front-line participant” in HRD

29. Organizational Structure of HRD
Departments
• Depends on company size, industry and
maturity
• No single structure used
• Depends in large part on how well the HRD
manager becomes an institutional part of the
company – i.e., a revenue contributor, not just
a revenue user

30. HRD Organization in a Large Company

31. HR Manager Role
• Integrates HRD with organizational goals and
strategies
• Promotes HRD as a profit enhancer
• Tailors HRD to corporate needs and budget
• Institutionalizes performance enhancement

32. HR Strategic Advisor Role
• Consults with corporate strategic thinkers
• Helps to articulate goals and strategies
• Develops HR plans
• Develops strategic planning education and
training programs

33. HR Systems Designer/Developer
• Assists HR manager in the design and
development of HR systems
• Designs HR programs
• Develops intervention strategies
• Plans HR implementation actions

34. Organization Change Agent
• Develops more efficient work teams
• Improves quality management
• Implements intervention strategies
• Develops change reports

35. Organization Design Consultant
• Designs work systems
• Develops effective alternative work designs
• Implements changed systems

36. Learning Program Specialist
• Identifies needs of learners
• Develops and designs learning programs
• Prepares learning materials and learning aids
• Develops program objectives, lesson plans,
and strategies

37. Instructor/Facilitator
• Presents learning materials
• Leads and facilitates structured learning
experiences
• Selects appropriate instructional methods and
techniques
• Delivers instruction

38. Individual Development and Career
Counselor
• Assists individuals in career planning
• Develops individual assessments
• Facilitates career workshops
• Provides career guidance

39. Performance Consultant (Coach)
• Advises line management on appropriate
interventions to improve individual and group
performance
• Provides intervention strategies
• Develops and provides coaching designs
• Implements coaching activities

40. Researcher
• Assesses HRD practices and programs
• Determines HRD program effectiveness
• Develops requirements for changing HRD
programs to address current and future
problems

41. Challenges for HRD
• Changing workforce demographics
• Competing in global economy
• Eliminating the skills gap
• Need for lifelong learning
• Need for organizational learning

42. Changing Demographics in the U.S.
Workplace
By 2020, it is predicted that:
• African-Americans will remain at 11%
• Hispanics will increase from 9% to 14%
• Asians will increase from 4% to 6%
• Whites will decrease from 76% to 68%
• Women will increase from 46% to 50%
• Older workers (>55) will increase to 25%

43. Competing in the Global Economy
• New technologies
• Need for more skilled and educated workers
• Cultural sensitivity required
• Team involvement
• Problem solving
• Better communications skills

44. Eliminating the Skills Gap
• US example: In South Carolina, 47% of entering high
school freshmen don’t graduate.
– Best state is Vermont, with 81% graduating
• Employees need to be taught basic skills:
– Math
– Reading
– Applied subjects
• Need to improve U.S. schools??

45. Need for Lifelong Learning
• Organizations change
• Technologies change
• Products change
• Processes change
• Should people change too?

46. Need for Organizational Learning
• Organizations must be able to learn, adapt,
and change
• Principles:
– Systems thinking
– Personal mastery
– Mental models
– Shared visions
– Team learning

47. A Framework for the HRD Process
HRD efforts should use the following four
phases (or stages):
• Needs assessment
• Design
• Implementation
• Evaluation
(“A DImE”)

48. Training & HRD Process Model

49. Needs Assessment Phase
• Establishing HRD priorities
• Defining specific training and objectives
• Establishing evaluation criteria

50. Design Phase
• Selecting who delivers program
• Selecting and developing program content
• Scheduling the training program
Implementation phase
• Implementing or delivering the program

51. Evaluation Phase
Determining program effectiveness – e.g.,
• Keep or change providers?
• Offer it again?
• What are the true costs?
• Can we do it another way?

52. Summary on HRD
• HRD is too important to be left to amateurs
• HRD should be a revenue producer, not a
revenue user
• HRD should be a central part of company
• You need to be able to talk MONEY

53. Some Characteristics of a good Human
Resources Strategy
Three key elements:
• Diagnostic – a comprehensive and systematic evaluation of current
practice and performance to identify both where improvement is
required and where policies and institutions are working well
• Aspirational – a vision of effective HR practices which produce
specific outcomes that contribute to achieving the institution’s
strategy, underpinned by clear values and principles
• Developmental – a plan for achieving progress and building greater
capacity to bring about change in the future (bearing in mind that
effective human resource management depends as much on good
quality line management as it does on skilled human resorce
professionals)

54. Clear Targets
SMART targets – specific, measurable, agreed, realistic, time-limited
Input targets eg appointing a new member of staff
Process targets eg developing new policies or procedures, or
undertaking a review of practice
Output targets eg producing a report introducing a new payments or job
evaluation scheme
Outcome targets eg increasing the number of women in management
positions or the proportion of people with disabilities
Performance measures
Project management – subprojects, milestones

55. Resource Allocation
• MUST be a clear link between human resource plans and resource
allocation
• Clarity of approach: actions-responsibilities-outcomes-timescale-
cost

56. Monitoring
• Assessment of progress against input. Process and output targets
• Summative evaluation – what works and what doesn’t work.
Formative process
• Problems of identifying cause and effect
• Importance of good feedback
Implementation is assisted by:
• Adequate levels of involvement
• Feedback on performance
• Focus on what is achievable
• Clear allocation of responsibilities
• Effective training and support
• Incentives and rewards

57. Key Issues: Recruitment and Retention
• Data collection
• Comparative analysis
• Identification of problems – particular disciplines (eg computing,
management, economics), particular categories of staff (eg
electronics technicians, cleaners), particular regions (eg big cities)
• Some possible actions – improving the recruitment process, startup
packages, pay and rewards, market supplements, job evaluation,
career routes, fast-track promotion, training and development

58. Key Issues: Staff Development and Training
• Necessary to enhance the institution’s skills and knowledge base
• Important to identify needs at ALL levels
• All categories of staff should be involved
• Programmes require regular evaluation – problems of relevance
Different forms of staff development:
• Induction programmes
• Programmes for new academic staff (often linked with probation)
• Skills programmes – particular activities, new technology, updating
• Management development programmes – leadership and
management

59. Key Issues: Equal Opportunities -> Diversity
management
• Data collection
• Staff development
• Possible actions – awareness raising, flexible working,
improvements to recruitment processes and literature, targeted skills
development, progression
• Job evaluation – equal pay for equal work, promotions based on
work-related issues

60. Key Issues: Staff Profiles
• Data collection
• Audit of existing staff – current staff numbers, distribution by
grade/level of responsibility, skills profiles, age profiles (succession
planning, “new blood”), patterns of leavers and joiners (high and low
turnover), which posts are difficult to fill, staffing costs, gender
profiles, pay distribution
• External environment – national and local labour markets,
comparative analysis
• Link with institutional strategies – where will more/less staff be
needed
• Possible actions – training/retraining, redeployment, severance

61. Key Issues: Performance
• Performance review – vital in improving staff effort
• Must be regular
• All staff are entitled to feedback
• Formative process
• Rewarding good performance – monetary and non-monetary
• Tackling poor performance – clear agreed targets, opportunities for
training, monitoring, training for managers, clear disciplinary
procedures (including appeals)

62. Staff Development for Professional Services
• Career development – recruitment, training and enhancement,
performance and rewards, retention
• Training programmes for new staff in professional services (wide
range of backgrounds)
• Specialist training and career development – professional
qualifications
• Training programmes for senior staff in professional services
• Formal programmes; Continuing Professional Development
• Some particular themes – broadening and deepening, sharing
expertise and experience, formative and process benchmarking,
leadership and management