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STRATEGIC HUMAN RESOURCE MANAGEMENT MGMT 950 Lecture 1 Lecture Outline What is HRM? What do you expect from HRM? What are the contributions of HRM to organizations? Whose responsibility is HRM? The legal and cultural context for HRM. The reasons for negative attitudes towards HRM. HRM: What is it & What to expect from it? Stretch Your Expectation What should you expect from a high-performing HR department? Scoring: 1. Low score: Standard expectation; expected from an average HR dpt 2. Medium score: expected from a developed HR dpt 3. High score: expected from an HR dpt that is a strategic partner “For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes The Management Process Planning Organizing Staffing Leading Controlling Management Process Planning Goals and standards Rules and procedures Plans and forecasting. Organizing Tasks Departments Delegating Authority and communication Coordinating Management Process Staffing Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing Management Process Leading Getting the job done Morale Motivation Controlling Setting standards Comparing actual performance to standards Corrective action HRM Function Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns. Why fairness? Classroom notes Motivation Loyalty & Turnover Quality of output of product Trust Legal concerns Team environment destroyed Reputation Harm to the organization HRM People Functions Include: Job analysis Labor needs Recruitment Select candidates Orient and train Wages and salaries Incentives and benefits Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations HRM is Important to all Managers. Don’t Let These Happen to You! Hiring the wrong person High turnover Poor performance results Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices Why strategic HRM Perspective since 1990s? The competitive environment today: Problems with investments in process technology: Little of process technology is proprietary: same software, robots are also sold to competitors. It is more a matter of how you implement it effectively-> PEOPLE Investment in technology inevitably calls for more skilled workforce– IT IS NOT A SUBSTITUTE FOR PEOPLE. - Within 4 years of their introduction, 60% of the patented successful innovations were imitated. What is sustainable competitive advantage? Acts like a shield to the weaknesses of and threats towards the organization. Does not exist in the competitors Cannot be easily imitated by the competitors Cannot be easily replaced by other factors Excellence in HRM practices can be the only sustainable competitive advantage in today’s business environment. Does HRM have any contribution? Is HRM only a fad? Is HRM an empty trend that has been created to cover the mistakes of organizations, motivate employees, and overrate HR departments? Can HRM be not be an empty fad? Scientific Findings • A study of MTI conducted in automobile industry showed that HR focused applications doubled the quality and efficiency. (Similar findings are seen in the industries of iron and steel, confection, oil refinery, and semiconductor products). • It has been found that HR focused applications in 136 publiclyheld corporations increased the long-term survival of firms by 42 %. • The founder of Stanford Entrepreneurs Projects created HRM plans. These plans were found to be the determining factor of performance and success. Firms with managers who appraise the performance of employees appropriately and accurately have lower expenses and higher productivity, compared to firms with managers who conduct inappropriate or inaccurate performance appraisals. Employees who are satisfied with attitudes towards themselves have better relations with their colleagues and supervisors, and show lower tendency to quit, compared to employees who are less satisfied. Employees, who think that they have been treated unfairly, show more tendency to act deviant and reject company policies, compared to employees who think they have been treated fairly. Employees who have been treated badly by their managers, are more prone to psychological and physiological disorders, compared to employees who have been treated politely and respectfully . Companies that have been rated as superior in terms of payments / benefits, facilities, job security, collegiality, and felt pride towards the company profit twice as much as 500 companies of Standart & Poors. Similar results were found outside the U.S.A: For example, data collected from 138 large corporations in South Korea (local or international) showed that HR focused organizations had higher performance. Turkey? CFOs’ opinions about the impact of HR HRM: Whose responsibility is it? Internal Environment • Top management’s goals and values • Organizational strategy • Organizational culture • Technology • Structure • Size Scanning, Analyzing and Planning • Internal environment • External environment • Human resource planning • Job analysis Human Resource Management Staffing • Recruiting • Selecting Appraising • Gathering data • Using data Compensating • Total compensation • Performance based • Indirect External Environment • Economy/ market • Demographics • Values • Laws • Competitors Who’s Responsible? • Top management • Line managers • PHRM department • Employees General Goals • Attract • Retain • Motivate • Develop Improving • Training and development • Organizational improvement •Research Establishing and Maintaining • Employee rights • Safety and health • Union-management relationships Management Systems • Motivation • Leadership • Team work • Communication Specific Goals • Productivity • Quality of work life • Legal compliance • Gaining competitive advantage • Work force flexibility Bottom Line • Survival • Competitiveness • Growth • Profitability • Adaptability Whose responsibility is HRM? Activity Attraction Selection Retention Development Assessment Adjustment Line management responsibility HR department responsibility Activity Line management responsibility HR department responsibility Attraction Providing data for job analyses, job descriptions; integrating strategic plans with HR plans Job analysis, human resource recruitment, and employment equity concerns Selection Interviewing candidates, integrating information collected by HR department, and making final decisions Development of application blanks, development and validation of written tests, performance tests, interviews, background investigation, reference checks Retention Fair treatment of employees, open communication, promotion of teamwork, pay increases on the basis of merit. Compensation and benefits, labour relations, health and safety, and employee services Development On-the-job training, job enrichment, coaching, applied motivational strategies, feedback to subordinates Technical training, career planning, and counseling Assessment Performance appraisals and morale surveys, giving feedback Development of performance appraisal systems and morale surveys. Adjustment Discipline, discharge, promotions, and transfers Layoffs, retirement counseling, and outplacement services HRM Line Manager’s Jobs 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs that are new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the company’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees’ health and physical condition HRM: Cultural & Legal Context … China … Australia … Havaii … India … Teksas … Colombia … London … Caribean … USA What is Culture? Historically-transmitted and interrelated web of values, assumptions, norms, belief systems and behavioral patterns that differentiate one human group from another. Artefacts Religion Values, Assumptions Belief systems Legal and political system Language, Caveats: - Culture at multiple levels - Cultural heterogeneity - Cultural change Cousine, folklore Culture is like an illusion… The thing that one sees is not the same thing the other sees. There is no one way of looking at things and there are no absolute truths. Hofstede, 1980 HRM in Cultural Context (Aycan, 2005) Maintain Good Interpersonal Relationships & In-group Harmony Improve Performance 1. Individualism vs. Collectivism Collectivism 1 4 2. Performance-orientation 1 Low 7 4 Individualism 7 High 3. Attitudes towards work Work to live 1 4 7 Live to work 4. Attitudes towards rules Particularism 1 4 7 Universalism 5. Nature of work relationships Emotional 1 4 7 Contractual 6. Attitudes towards criticisms Negative 1 4 7 4 7 Positive 7. Communication style Indirect, subtle 1 Direct, assertive 8. Problem-solving approach Avoidance 1 4 Third-party involvement 7 Confrontation Maintain good interpersonal relationships and in-group harmony Improve performance Preference for internal or network-based recruitment Criteria used in recruitment, selection, and performance appraisal emphasize ability to maintain good interpersonal relationships and work in harmony with others. Subjective evaluations in recruitment, selection, and performance appraisal; indirect, subtle and non-confrontational feedback. Preference for formal, structured and widespread use of recruitment channels Criteria used in recruitment, selection, and performance appraisal emphasize job-related and technical competencies Criteria used in need assessment for training, career planning, and compensation and reward management emphasize loyalty Criteria used in need assessment for training, career planning, and compensation and reward management emphasize performance outcomes and merit Awards, recognition, and bonuses for good performance Strong emphasis on employee welfare programs and intrinsic rewards Objective and systematic evaluations in recruitment, selection, and performance appraisal; direct and explicit feedback. Maintain Status Hierarchy 1. Societal & Organizational Structure (Power Distance) Hierarchical 1 4 Promote egalitarianism & participation 7 Egalitarian 2. Decision making process Centralized 1 4 7 4 7 4 7 Consultative Participative 3. Attitudes towards rules Particularism 1 Universalism 4. Most common leadership Style 1 Autocratic Paternalistic Participative Maintain status hierarchy Promote egalitarianism & participation Differential criteria and methods used in recruitment, selection and performance appraisal Uniform criteria and methods used in recruitment, selection and performance appraisal Criteria used in recruitment, selection, performance appraisal, training and development need assessment, and compensation and reward management emphasize good interpersonal relationships with higher management, social class, seniority, and age Criteria used in recruitment, selection, performance appraisal, training and development need assessment, and compensation and reward management emphasize job-related competencies and merit. Equal employment opportunity is encouraged Top-down performance appraisal Multiple assessors and multiple criteria in performance appraisal Non-participative decision making in training need assessment, job analysis, and human resource and career planning Participative decision making in training need assessment, job analysis, and human resource and career planning One-way lecturing; role-modeling of superiors Participative, interactive training Characteristics of High Performing Organizations Decentralized organizational structure Flexibility and mobility in technology and workforce use Quality orientation Teamwork Importance of training and development Participation and empowerment Workplace security Trust (social capital) A model of change HRM Practices Leadership Organizational Culture HRM in Legal Context: The new Labor Law 15 Ağustos 2002 yılında Resmi Gazetede yayınlanan 4773 no’lu kanun 15 Mart 2003 tarihi itibarı ile yürürlüğe giriyor. Temel Amaç ve Etkileri İşverenin GEÇERLİ bir nedene dayanmaksızın işçiyi işten çıkartamaması Personel alımında ve performans değerlendirmelerinde sistematik olmak, fesih işlemlerini disipline etmek, işe alırken ve fesih esnasında duygusal yaklaşımlardan uzak durmak,KURUMSALLAŞMAK. Uygulama Alanı İşyeri bazında, 10 veya üstü işçi çalıştıran işyerlerinde uygulanacak. Personel bazında, İşyerindeki kıdemi 6 ayı aşan, Belirli süreli hizmet akti ile çalışmayan, personel yasa kapsamında olacaktır. İŞVEREN YASADAN ÖNCE ; İhbar öneline uyduğu ve Kıdem Tazminatını ödediği durumlarda işçinin iş akdini, herhangi bir sebep göstermeksizin de feshedebilirdi. YENİ YASA İLE ; İş akdini fesih sebebini işçiye yazılı ve net olarak bildirilecektir. Belirtilen sebep geçerli olacaktır. İspat yükümlülüğü işverene ait olacaktır. GEÇERLİ SEBEPLER İşyeri/İş ile ilgili İşyeri dışından kaynaklanan sebepler İşyeri içi sebepler İşçi ile ilgili İşçinin yetersizliğinden kaynaklanan sebepler İşçinin davranışlarından doğan sebepler İŞYERİ/İŞ İLE İLGİLİ SEBEPLER İşyeri dışından kaynaklanan sebepler Sürüm ve satış olanaklarının azalması Talep ve siparişin azalması Enerji sıkıntısı Ülkede yaşanan ekonomik kriz Piyasada genel durgunluk Dış Pazar kaybı Hammadde sıkıntısı gibi sebeplerle işyerinde işin sürdürülmesinin olanaksız hale gelmesi İşyeri içi sebepler Yeni çalışma yöntemlerinin uygulanması İşyerinin daraltılması Teknolojik değişimlerin işyerinde kullanılması İşyerinin bazı bölümlerinin kapatılması Bazı iş türlerinin işyerinde kaldırılması İŞÇİ İLE İLGİLİ SEBEPLER İşçinin yetersizliğinden kaynaklanan sebepler Ortalama olarak benzer işi görenlerden daha az verimli çalışma Gösterdiği (işe alınırken bildirdiği) niteliklere uygun performanstan daha düşük performans sergilemesi veya işe yatkın olmaması İşe konsantrasyonunun giderek azalması Öğrenme ve kendini yetiştirme yetersizliği Çalışamaz hale getirmese bile işini gerektiği gibi yapmasını önleyen bir hastalığa yakalanması ( sık sık hastalanma ) Uyum yeterliliğinin azlığı Emeklilik yaşına gelmiş olma İşçinin davranışlarından kaynaklanan sebepler İşverene zarar vermek yada zararın tekrarı tedirginliğini yaratmak, İşyerinde rahatsızlık yaratacak şekilde çalışmak, Arkadaşlarından borç para istemek, Arkadaşlarını işverene karşı kışkırtmak, İşini uyarılara rağmen eksik, kötü veya yetersiz olarak yerine getirmek, İşyerinde iş akışını ve iş ortamını olumsuz etkileyebilecek bir biçimde diğer kişilerle ilişkilere girmek, İşin akışını durduracak şekilde uzun telefon görüşmesi yapmak, Sık sık işe geç gelmek, İşini aksatarak işyerinde dolaşmak, Gibi..... GEÇERLİ OLMAYAN SEBEPLER • Sendika üyeliği veya çalışma saatleri dışında veya işverenin rızası ile çalışma saatleri içinde sendikal faaliyetlere katılmak • İşyeri sendika temsilciliği veya işçi temsilciliği yapmış olmak, yapmak veya temsilciliğe aday olmak • Mevzuattan veya sözleşmeden doğan haklarını takip için işveren aleyhine idari veya adli makamlara başvurmak veya bu hususta başlatılmış sürece katılmak • Irk, renk, din, cinsiyet, medeni hal, aile yükümlülükleri, hamilelik, siyasi görüş, etnik ve sosyal köken • İş kanunu madde 70 gereği kadın işçilerin çalıştırılmalarının yasak olduğu sürelerde işe gelmemek (doğum izni kullanmak) • Hastalık veya Kaza nedeniyle İş kanununun 17/I (b) fıkrasında öngörülen bekleme süresinde işe geçici olarak devam etmemek İSPAT KÜLFETİ Feshin GEÇERLİ bir sebebe dayandığını ispat külfeti işverene ait. AKDİN FESHİNDE USUL Feshi düşünmeden önce işveren, işçinin yetersizliği veya davranışları ile ilgili probleme ilişkin olarak açık ve net bir dille işçiye yazılı uyarı vermek ve bu işçiden, yazılı savunmasını almak zorundadır. Savunma alındıktan sonra, işçinin iş akdinin feshine karar verildiği takdirde,işveren fesih bildirimini yazılı olarak ve geçerli sebebi açık ve net bir dille bu bildirimde belirterek yapmak zorundadır. FESHE İTİRAZ Konunun özel hakeme intikali (Sözleşmelerde belirtildiği takdirde ) İşçinin yargı yolunu kullanması TOPLU İŞÇİ ÇIKARMA İşveren ancak, ekonomik, teknolojik,yapısal vb. sebeplerle toplu işçi çıkartımında bulunabilir. Bir ay içinde toplam 10 işçinin iş akdinin feshi halinde toplu işçi çıkarımı söz konusu olur. İşveren-işçi temsilcisi/temsilcileri arasında toplu feshe ilişkin toplantı yapılarak durum belirlenmelidir.(toplantı belgelendirilmelidir) En az 30 gün önceden işyeri işçi temsilcisine, ilgili Bölge Müdürlüğüne ve Türkiye İş Kurumuna bildirim yapılması gerekir. • YENİ YASA İLE; • İNSAN KAYNAKLARINA BAKIŞ VE BAĞLI OLARAK İNSAN KAYNAKLARI POLİTİKALARININ GÖZDEN GEÇİRİLMESİ • ÜST YÖNETİMİN BAKIŞ AÇISI • İK’ NIN KENDİNE BAKIŞ AÇISI • ÇALIŞANLARIN İK’ YA BAKIŞ AÇISI • SENDİKALARIN BAKIŞ AÇISI • YARGININ BAKIŞ AÇISI İnsan Kaynakları Yönetimine Modüler Bazda Bakarak Hazırlık Yapmak İnsan Kaynakları Planlama İş Tanımı İş Profilleri Sözleşmeler Yasal Hazırlık El Kitabı Yönetmelikler Eleman Seçimi ve Yerleştirme Ücret Sistemi Oryantasyon Yönetimi İşin İzlenmesi Disiplin Ödül&Ceza Eğitim Yönetimi Performans Yönetimi Yeterlilik Analizleri SEÇME VE YERLEŞTİRME SİSTEMİNE YANSIMASI PERFORMANS GÖSTERECEK ELEMANI SEÇMEK GİRİŞ ÇIKIŞI AZALTACAK KALİTEDE ELEMAN SEÇMEK YÖNETİCİLERİ SEÇİM KONUSUNDA EĞİTMEK İŞ TANIMLARINI EK OLARAK HAZIRLAMAK HER POZİSYON İÇİN YETERLİLİK ANALİZLERİ İŞ NİTELİKLERİNİ NETLEŞTİRMEK BAŞVURU FORMLARINI REVİZE ETMEK SEÇME SÜRECİ DAHA SİSTEMATİK VE BİLİMSEL VE DOKÜMANTE EŞİTLİK İLKESİ PSİKOMETRİK TESTLER SÖZLEŞME PERFORMANS HEDEFLERİ / BEKLENTİLER ORYANTASYON PROGRAMI PERFORMANS YÖNETİMİNE YANSIMALARI Performansın Etki Alanları ELEMAN SEÇİMİ ÜCRET YÖNETİMİ EĞİTİMYÖNETİMİ İMAJ MOTİVASYON KARİYER PLANLAMA ORGANİZAS YONEL YEDEKLEME Performans Yönetimi İK PLANLAMA ÖDÜL KÜÇÜLME İŞ TANIMI YÖNETİMİ BÜYÜME YETKİ SORUMLULUK ESOP ÇALIŞAN LARA HİSSE İÇ İLETİŞİM TAKIM OLMAK KALİTE YÖNETİMİ İDARİ İŞLER ÖZLÜK İŞLERİ MALİYET YÖNETİMİ KURUM KÜLTÜRÜ ENDÜST RİYEL İLİŞKİLER YENİ YASAYA GÖRE PERFORMANS SİSTEMİNDE YETERLİLİK ANALİZLERİ İŞ DEĞERLERİ STANDART DEĞERLER ÖLÇÜLEBİLİR PERFORMANS DEĞERLERİ EĞİTİM BAĞLANTISI KARİYER BAĞLANTISI ŞİRKET KÜLTÜRÜ VE KİMLİĞİ BAĞLANTISI YER ALMALIDIR PERFORMANS SİSTEMİ KARŞILIKLI YAPILMALI ÇALIŞAN TARAFINDAN ÖNCESİNDE İMZALANMALI BAŞARISIZLIK ÇALIŞANA KANITLANMALI EŞİTLİK İLKESİNE AYKIRI OLMAMALI İŞ GÜVENCESİ YASASINA HAZIRLIKTA DİĞER NOKTALAR OLMAZSA OLMAZLAR İŞ TANIMLARI PERFORMANS SİSTEMİ YETERLİLİK ANALİZLERİ VE TABLOSU EĞİTİM SİSTEMİ DİSİPLİN SİSTEMİ PERSONEL EL KİTABI/ŞİRKET ANAYASASI İLETİŞİM PANOLARI İŞÇİ TEMSİLCİSİ HİZMET AKTİ DİKKAT EDİLMESİ GEREKENLER Yazılı iş akitlerinin ekine çalışanın başvuru formu, özgeçmişi, pozisyonu için gerekli yetkinlikleri, iş tanımları eklenmeli,belirlenen iş tanımında belirlenen görevleri yerine getirebileceğine dair yetkinlik alınmalı, tüm bunlarda işçinin imzası ve tarih bulunmalı. İşçiye yapılacak tüm bildirimler imzası karşılığı yapılmalı Doğru elemanla çalışmak için kadro planlaması yapılmalı ve eleman alımı sistematik olmalı. Şirketteki her pozisyon için iş tanımları hazırlanmalı Pozisyonlar itibariyle gerekirse dönemler itibariyle performans değerlendirilmesi yapılmalı performans düşüklükleri halinde buna ilişkin olarak işçinin beyanı (savunması halinde) alınmalı. Performansta ölçülemeyen verimin ölçülebilir hale getirilmesi gerekli. Etkin bir disiplin (yönetmeliği) sistemi kurulmalı,imza karşılığı işçilere verilmeli. Tüm bu dokümantasyon korunmalı Duygusal ve ilişkisel yönetimden, kurumsal ve sistematik yönetime geçilmeli DİKKAT EDİLMESİ GEREKENLER Fesihlerde muhakkak savunma alınmalı, savunma işçinin el yazısıyla olmalı bu mümkün olmadığında imzası ve tarih bulunmalı. İşçiye yapılacak tüm bildirimler imzası karşılığı yapılmalı bu doğrultuda fesih bildirimi de aynı şekilde yapılmalı. İşçinin tebellüğden imtina ettiği durumlarda bildirim Noter kanalıyla yapılmalı, bu doğrultuda savunma vermeyen işçide savunma vermeye gerekirse Noter kanalı ile davet edilmeli. İşyerinde düzenlenecek tutanaklarda gerekli görüldüğünde işyeri temsilcisinin şahitliğine müracaat edilmeli. Feshe yetkin bir birim belirlenmeli bunun dışında yöneticilerin şahsi olarak bireysel bazda feshi gerçekleştirme yetkisi kaldırılarak bu birime bağlanmalı, durum işçilere bildirilmeli. Süreler söz konusu olduğu için işçi-işveren arasındaki yazışmalara tarih konmalı tebligatlar bildirimler imza karşılığı yapılmalı ve tebligatları tek elde toplamak için yetkili bir birim belirleyerek bunu çalışanlara bildirmeli. Development of HRM in the Turkish Context In the last 20 years, Human Resource Management (HRM) has been increasingly recognized as a key in maintaining competitive advantage in Turkish business organizations. There are a number of important forces behind this development: Turkey’s adoption of liberal economy, Shift from predominantly agricultural-based economy to an increasingly industrialized and service-based economy decrease in government intervention and increase in privatization, legal and economic changes that are geared towards EU membership, globalization, change in workforce characteristics as well as societal values. Until 1950s, personnel-related issues were limited to fulfilling legallyrequired practices that were taking place under the finance departments of organizations. Around 1960s, personnel departments emerged as a subdivision within finance departments. With the rapid growth of organizations after 1970s, personnel departments were officially formed to carry out personnel-related tasks, and the Personnel Management Association was formed in 1971. However, the scope was still limited to compensation, tax and social security, premiums. In 1980s, with the liberalization movement, organizations found themselves at the heart of the global competition and recognized the importance of human resources (HR) as a competitive advantage. The term "human resources management” was adopted at the beginning of 1990s. HRM as a term became synonymous with “modern management” that organizations were embracing. In 2000 the percentage of organizations with HRM departments has increased dramatically. However, the recent large-scale downsizings following the February 2001 economic crises disturbed the positive sentiments towards HRM departments. According to the Arthur Andersen’s (2000) survey of HRM in 307 private sector organizations in Turkey: “Human Resource Management Departments” exist in 65 % of the participating organizations. These are usually large-size firms in finance, IT, and service industries. In 12.2 % of the firms, HR manager is also one of the VPs in the organization. In half of the organizations, there are written HRM strategies which are in line with the firm’s overall business strategies. The main functions of HR departments include (in descending order) staffing, wage determination and compensation, training and development, employee health and safety, performance evaluation, pay-roll administration, employee transfers and promotions, catering services, transportation services, job security and career planning. HRM Challenges in Turkey Unemployment Qualified people at all levels. Motivating underemployed people. HR departments’ reputation and credibility. Downsizing or cuts from the HR budget. SMEs – many of them are family owned. SMEs – demand for HR, but not enough resources (i.e., expertise in HR and budget) Increased demand for good HR by SMEs and big corporations in order to attract big “international” partners HR departments must understand the basics of HR and catch up with recent developments at the same time. EU integration – European vs. American management traditions. In Europe: Egalitarian work relationships Intellectual autonomy Powerful public sector Powerful Unions Equality based pay HRM: Why doesn’t it see the respect it deserves? CASE: Why doesn’t this HR department get any respect? Characters: Robinson joins Loft. Washington is the former CEO; Shargall is the current CEO. Problems: - Lack of company culture - Loss of key personnel - Inability to attract and retain talent - New establishment of the HR department - Top execs dissonance with HR functions - HR’s mistakes in administrative execution Proposed solutions - Gather data to show problems with recruitment and morale. - Decentralize the HR dept to educate, counsel and guide line managers. This will help build the company culture. - Prevent the occurrence of administrative mistakes at all cost. - Return to the role of consultant and educate the executives. - Renegotiate his contract with senior mgmt team and get their formal commitment to his plans. - Present his plans and get feedback from senior mgmt. - Forget about the consultant mind-set and adopt the mgmt mind-set: get your hands dirty. - To keep people, change the compensation scheme. - Find out ways to attract and retain key talent other than compensation - To do recruitment right, identify desirable competencies and other hiring criteria. - If morale problem is related to stress due to work overload in the HR department, outsource the routine administrative duties. - Help CEO to clarify and articulate the firm’s vision and strategy. - Communicate strategy to the employees. - Create systems to implement strategy. - Learn Loft’s business: Quit the attitude of ‘let’s talk about you; how do you feel about me?’ - Involve line to develop his plans for Loft. - Learn more about the binding forces in the former company culture; conduct exit interviews. - Do things concurrently, not sequentially. - Find out ways to attract and retain key talent other than compensation. Why doesn’t HR get respect? Classroom Notes They don’t respect / trust themselves Little HR expertise & competencies Low in the power hierarchy Perceived as “outsourceable function” Perceived as money spender ROI is difficult to measure Teaming up with top management Bad wp! (??) Inability to market themselves No HR audit! Key take aways from Lecture 1 HRM is a business function that is not only nice to have, but must to have: Link with business results Legal compliance Professionalization & Institutionalization HRM is everybody’s responsibility HRM practices should be aligned with the legal and cultural context HR departments do not get the respect they deserve