How to Succeed in HR How to Succeed in HR Without Really Trying: Without Really Trying:

A Roadmap for HR Development A Roadmap for HR Development in the Coming Decadein the Coming Decade

Presentation to the Evansville-Area Human Resource Presentation to the Evansville-Area Human Resource AssociationAssociation

Dane M. Partridge, Ph.D.Dane M. Partridge, Ph.D.Associate Professor of ManagementAssociate Professor of Management

University of Southern IndianaUniversity of Southern IndianaMarch 27, 2003March 27, 2003

Is HR Playing a Strategic Role in Is HR Playing a Strategic Role in Your Organization?Your Organization?

What’s the best change my organization What’s the best change my organization can make to prepare for the future?can make to prepare for the future?

What makes an Ee want to stay with my What makes an Ee want to stay with my organization?organization?

How are we going to invest in HR so that How are we going to invest in HR so that my organization has a better HR dept than my organization has a better HR dept than our competition?our competition?

Source: Halcrow (1988), reported in Noe et al. Source: Halcrow (1988), reported in Noe et al. (2003)(2003)

Staffing the HR FunctionStaffing the HR Function

What are the KSAs of HR staff?What are the KSAs of HR staff? What coursework?What coursework?

Many MBA programs have no required HR courseMany MBA programs have no required HR course What certification?What certification?

Bernardin (2003) indicates that only eleven percent of SHRM Bernardin (2003) indicates that only eleven percent of SHRM members have HR certification via HRCImembers have HR certification via HRCI

DMP not sure this figure is accurate – Bates (2002) reports DMP not sure this figure is accurate – Bates (2002) reports ~56,000 HR professionals have passed a certification exam; ~56,000 HR professionals have passed a certification exam; 54% of PHR candidates are SHRM members, 72% of SPHR 54% of PHR candidates are SHRM members, 72% of SPHR candidates (HRCI State of the Institute Report 2002).candidates (HRCI State of the Institute Report 2002).

Staffing the HR FunctionStaffing the HR Function

Inherent exaggeration of abilities re: “people Inherent exaggeration of abilities re: “people skills”?skills”? Survey of HS seniorsSurvey of HS seniors

70% believed they were above average in leadership ability; 70% believed they were above average in leadership ability; 2% believed they were below average2% believed they were below average100% believed they were above average in ability to get 100% believed they were above average in ability to get along with others, 60% believed they were in top 10%, 25% along with others, 60% believed they were in top 10%, 25% believed they were in top 1%believed they were in top 1%

Source: Ruggiero (2001)Source: Ruggiero (2001) Should we even be teaching “people skills” at Should we even be teaching “people skills” at

undergraduate level?undergraduate level?Research indicates UG students have less interest in and Research indicates UG students have less interest in and perceive less relevance of OB course than other required perceive less relevance of OB course than other required business coursesbusiness courses

Mintzberg (1989), Burke and Moore (2003)Mintzberg (1989), Burke and Moore (2003)

Staffing the HR FunctionStaffing the HR Function

More generalizable phenomenon, re: self-More generalizable phenomenon, re: self-ratings?ratings?

Survey of 92 engineers (Meyer, 1980)Survey of 92 engineers (Meyer, 1980)

Asked to self-rate relative to peer group, 0-100 Asked to self-rate relative to peer group, 0-100 (percentile)(percentile)

Mean: 78Mean: 78thth percentile percentile

Only two of 92 rated themselves below 50Only two of 92 rated themselves below 50thth percentile (45)percentile (45)

Some Discrepancies Between Some Discrepancies Between Research Findings and HR PracticesResearch Findings and HR Practices

RecruitmentRecruitment Research indicates that quantitative analysis Research indicates that quantitative analysis

of recruitment sources using yield ratios can of recruitment sources using yield ratios can facilitate efficiencies in recruitmentfacilitate efficiencies in recruitment

In practice, less than 5% of surveyed In practice, less than 5% of surveyed companies calculate yield ratios; less than companies calculate yield ratios; less than 20% know how20% know how

Source: Bernardin (2002)Source: Bernardin (2002)

Some Discrepancies Between Some Discrepancies Between Research Findings and HR PracticesResearch Findings and HR Practices

StaffingStaffing Research indicates that Research indicates that

Realistic job previews can reduce turnoverRealistic job previews can reduce turnoverWeighted application blanks reduce turnoverWeighted application blanks reduce turnoverStructured, behavioral, or situational interviews are more Structured, behavioral, or situational interviews are more validvalidGraphology is invalid and should not be usedGraphology is invalid and should not be used

In practiceIn practiceLess than 20% of companies use RJPs in high-turnover jobsLess than 20% of companies use RJPs in high-turnover jobsLess than 10% know what a WAB is; less than 1% useLess than 10% know what a WAB is; less than 1% useLess than 30% of companies use structured interviewsLess than 30% of companies use structured interviewsGraphology’s use is increasing in U.S.Graphology’s use is increasing in U.S.

Some Discrepancies Between Some Discrepancies Between Research Findings and HR PracticesResearch Findings and HR Practices

Performance AppraisalPerformance Appraisal Research indicates thatResearch indicates that

Traits should not be used on rating formsTraits should not be used on rating forms

Raters should be trained Raters should be trained

The appraisal process should be an important element of The appraisal process should be an important element of managers’ jobsmanagers’ jobs

In practiceIn practiceMore than 75% of companies still use traitsMore than 75% of companies still use traits

Less than 30% train ratersLess than 30% train raters

Less than 30% of managers are evaluated on performance Less than 30% of managers are evaluated on performance appraisalsappraisals

Some Discrepancies Between Some Discrepancies Between Research Findings and HR PracticesResearch Findings and HR Practices

CompensationCompensation Research indicates thatResearch indicates that

Merit-based systems should not be tied into base salaryMerit-based systems should not be tied into base salary Because size of bonus that can be offered is greater, cost to Because size of bonus that can be offered is greater, cost to

org in long run is much lessorg in long run is much less

Gainsharing is an effective pay-for-performance systemGainsharing is an effective pay-for-performance system In practiceIn practice

More than 75% of companies tie merit pay to base payMore than 75% of companies tie merit pay to base pay

Less than 5% of companies use gainsharing where they Less than 5% of companies use gainsharing where they couldcould

Quiz!!!Quiz!!!

Think back to your first day in HR…Think back to your first day in HR… What were you most confident about, in terms What were you most confident about, in terms

of your preparation for your responsibilities?of your preparation for your responsibilities? What were you least confident about?What were you least confident about? What, in terms of your preparation, What, in terms of your preparation,

contributed to your confidence or lack contributed to your confidence or lack thereof?thereof?

How could your development have better How could your development have better addressed your deficiencies?addressed your deficiencies?

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

Leadership and Managing ChangeLeadership and Managing Change

Business SkillsBusiness Skills

HR Functional LeadershipHR Functional Leadership

HR Technical SkillsHR Technical SkillsSource: Milkovich and Newman (1999)Source: Milkovich and Newman (1999)

““Core Competencies”: “The skills and abilities in Core Competencies”: “The skills and abilities in value creation activities that allow a company to value creation activities that allow a company to achieve superior efficiency, quality, innovation, achieve superior efficiency, quality, innovation, or customer responsiveness.”or customer responsiveness.”

Source: Jones (2001)Source: Jones (2001)

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

Leadership and Managing ChangeLeadership and Managing Change IntegrityIntegrity EfficiencyEfficiency

Performing in cost-effective mannerPerforming in cost-effective manner ObjectivityObjectivity

Clear perception of org and political realityClear perception of org and political reality ProactivityProactivity Risk takingRisk taking

Taking action under conditions of uncertaintyTaking action under conditions of uncertainty

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

Leadership and Managing Change (cont.)Leadership and Managing Change (cont.) DecisivenessDecisiveness ProfessionalismProfessionalism

Consciousness of one’s professional imageConsciousness of one’s professional image Negotiation SkillsNegotiation Skills

Facilitating “win-win”Facilitating “win-win” Communication SkillsCommunication Skills

Written, Oral, Non-verbal(!)Written, Oral, Non-verbal(!) Brockbank (2003) found interpersonal competencies more Brockbank (2003) found interpersonal competencies more

important than verbal and written communication skillsimportant than verbal and written communication skills

Team Management SkillsTeam Management Skills

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

Business SkillsBusiness Skills Industry KnowledgeIndustry Knowledge

Value chain, suppliers, competitors, how org satisfies Value chain, suppliers, competitors, how org satisfies customer needscustomer needs

Knowledge of value chain has significant impact on business Knowledge of value chain has significant impact on business performance (Brockbank, 2003)performance (Brockbank, 2003)

Strategic ManagementStrategic ManagementUnderstanding and planning for environmental changesUnderstanding and planning for environmental changes

Organizational AwarenessOrganizational AwarenessUnderstanding business operations, how business Understanding business operations, how business competes, cultural/value systems impacting org performancecompetes, cultural/value systems impacting org performance

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

Business Skills (cont.)Business Skills (cont.) Total Quality ManagementTotal Quality Management

Continuous ImprovementContinuous Improvement General Management SkillsGeneral Management Skills

Understanding of finance, marketing, law, ITUnderstanding of finance, marketing, law, IT Partnership w/mngt teamPartnership w/mngt team

Note: Note: knowledgeknowledge itself is insufficient to contribute itself is insufficient to contribute to high-performing organization – must put to high-performing organization – must put knowledge into practice….Achieving results knowledge into practice….Achieving results more important to personal credibility than more important to personal credibility than getting along well w/mngt team.getting along well w/mngt team.

Source: Brockbank (2003)Source: Brockbank (2003)

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

HR Functional LeadershipHR Functional Leadership Network BuildingNetwork Building

Working effectively w/others, both inside and outside orgWorking effectively w/others, both inside and outside org Setting the Vision for HRSetting the Vision for HR Selecting and Developing StaffSelecting and Developing Staff

Identifying and implementing org and individual Identifying and implementing org and individual developments plansdevelopments plans

Value-added perspective of HRValue-added perspective of HRCommunicating to mngt how HR can contribute to orgCommunicating to mngt how HR can contribute to org

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

HR Technical SkillsHR Technical Skills HR PlanningHR Planning

Competencies in org design now fundamental, including org Competencies in org design now fundamental, including org and job restructuringand job restructuring (Brockbank, 2003) (Brockbank, 2003)

CommunicationsCommunicationsFostering understanding of key business and HR issuesFostering understanding of key business and HR issues

Work Force DiversityWork Force Diversity Selection and PlacementSelection and Placement

Including effective performance mngt systemIncluding effective performance mngt system Training & DevelopmentTraining & Development

TRW’s HRM Core CompetenciesTRW’s HRM Core Competencies

HR Technical Skills (cont.)HR Technical Skills (cont.) HR Information SystemsHR Information Systems Compensation and BenefitsCompensation and Benefits

Performance-based, linked to performance mngtPerformance-based, linked to performance mngt Health, Safety, and SecurityHealth, Safety, and Security Org EffectivenessOrg Effectiveness

Managing cultural change within org to impact org Managing cultural change within org to impact org effectivenesseffectiveness

Note that culture management makes strategic contribution Note that culture management makes strategic contribution (Brockbank, 2003) [focusing internal culture on meeting needs (Brockbank, 2003) [focusing internal culture on meeting needs of external customer, aligning HR w/ desired culture, facilitating of external customer, aligning HR w/ desired culture, facilitating quickquick change] change]

Ee and Labor RelationsEe and Labor Relations

Additional CompetenciesAdditional Competencies

InternationalInternational Infusing org culture w/local talent worldwideInfusing org culture w/local talent worldwide Integrating foreign Ees into U.S.-based Integrating foreign Ees into U.S.-based

businessesbusinesses Balancing differentiated pay scales/benefits Balancing differentiated pay scales/benefits

levels to achieve internal equitylevels to achieve internal equity Restructuring recruiting practices to ensure Restructuring recruiting practices to ensure

org is capturing best talent globallyorg is capturing best talent globallySource: Patel (2002) [Source: Patel (2002) [SHRM Workplace Forecast: A SHRM Workplace Forecast: A Strategic Outlook]Strategic Outlook]

Top Ten Workplace Trends as Top Ten Workplace Trends as seen by HR professionalsseen by HR professionals

Use of technology to communicate with Use of technology to communicate with EesEes

Rising health care costsRising health care costs

Increased vulnerability of intellectual Increased vulnerability of intellectual propertyproperty

Managing talentManaging talent

Greater demand for high-skilled workers Greater demand for high-skilled workers than for low-skilledthan for low-skilled

Top Ten Workplace Trends as Top Ten Workplace Trends as seen by HR professionalsseen by HR professionals

Labor shortageLabor shortageChange from manufacturing to Change from manufacturing to information/service economyinformation/service economyIncrease in employment-related Increase in employment-related government regulationsgovernment regulationsFocus on domestic safety and securityFocus on domestic safety and securityAbility to use technology to more closely Ability to use technology to more closely monitor Eesmonitor Ees

Source: Patel (2002)Source: Patel (2002)

ImplicationsImplications

Given these trends in organizational Given these trends in organizational environments, what are the implications environments, what are the implications for HR function?for HR function? How do we get from where we are to where How do we get from where we are to where

we need to be?we need to be?What organizational and individual development What organizational and individual development needs to be provided to facilitate change?needs to be provided to facilitate change?

Are there additional competencies that need to be Are there additional competencies that need to be developed so as to effectively manage these developed so as to effectively manage these trends?trends?

Evolving HR FunctionEvolving HR Function

Some traditional roles, e.g., HR generalist, benefit Some traditional roles, e.g., HR generalist, benefit specialist, likely to become less common and less specialist, likely to become less common and less importantimportantWill be increasingly important to be able to illustrate cost Will be increasingly important to be able to illustrate cost effectiveness, value-added contribution of HR practiceseffectiveness, value-added contribution of HR practices

And will need to manage relationship w/providers of outsourced And will need to manage relationship w/providers of outsourced activities (transactional functions)activities (transactional functions)

Know finance!Know finance! Will business degree be a requirement in the future?Will business degree be a requirement in the future? What would be the implications?What would be the implications? ““Human capital strategist”?Human capital strategist”?

Source: Bates (2002), Glister (2000)Source: Bates (2002), Glister (2000)

Challenges (Potholes?)Challenges (Potholes?)

David Ulrich (U of Michigan): “We have to David Ulrich (U of Michigan): “We have to shift the focus of HR away from training shift the focus of HR away from training and process to the outcomes, away from a and process to the outcomes, away from a people function to an organization people function to an organization function. I’m not optimistic about all HR function. I’m not optimistic about all HR people” making that transition.people” making that transition.

Source: Bates (2002)Source: Bates (2002)

Staffing the HR Function (revisited)Staffing the HR Function (revisited)

KSAs for HR?KSAs for HR?

Preparation (Education and Experience)?Preparation (Education and Experience)? Certifications – value and natureCertifications – value and nature

Specialist certifications (e.g., ACA’s Certified Specialist certifications (e.g., ACA’s Certified Compensation Professional and Certified Benefits Compensation Professional and Certified Benefits Professional, IFEBP’s Certified Employee Benefits Professional, IFEBP’s Certified Employee Benefits Specialist)Specialist)

Staffing the HR Function (revisited)Staffing the HR Function (revisited)

HR Competencies – Build or Buy?HR Competencies – Build or Buy? Re: HRIS, most HR certifications attest to non-Re: HRIS, most HR certifications attest to non-

technological body of knowledge. PHR, SPHR not technological body of knowledge. PHR, SPHR not intended to address individual systems or software intended to address individual systems or software (Glister, 2000)(Glister, 2000)

Software-specific training (e.g., PeopleSoft)Software-specific training (e.g., PeopleSoft)New International Association for Human Resource New International Association for Human Resource Information Management (IHRIM) certification (purported to Information Management (IHRIM) certification (purported to be both technical and functional)be both technical and functional)Knowledge relevant to choosing right vendorKnowledge relevant to choosing right vendorHRCI due to include more technology emphasis in revised HRCI due to include more technology emphasis in revised curriculumcurriculum

MBA w/ HR concentration? (Note that USI has moved MBA w/ HR concentration? (Note that USI has moved in opposite direction…)in opposite direction…)

HRCI Core Knowledge AreasHRCI Core Knowledge Areas

Knowledge of needs assessment and analysis Knowledge of needs assessment and analysis Knowledge of third-party contract management, Knowledge of third-party contract management, including development of requests for proposals (RFPs) including development of requests for proposals (RFPs) Knowledge of communication strategies Knowledge of communication strategies Knowledge of adult learning processes Knowledge of adult learning processes Knowledge of motivation concepts and applications Knowledge of motivation concepts and applications Knowledge of training methods Knowledge of training methods Knowledge of leadership concepts and applications Knowledge of leadership concepts and applications Knowledge of project management concepts and Knowledge of project management concepts and applications applications Knowledge of diversity concepts and applications Knowledge of diversity concepts and applications

HRCI Core Knowledge AreasHRCI Core Knowledge Areas

Knowledge of human relations concepts and applications (for Knowledge of human relations concepts and applications (for example, interpersonal and organizational behavior) example, interpersonal and organizational behavior) Knowledge of HR ethics and professional standards Knowledge of HR ethics and professional standards Knowledge of technology and human resource information systems Knowledge of technology and human resource information systems (HRIS) to support HR activities (HRIS) to support HR activities Knowledge of qualitative and quantitative methods and tools for Knowledge of qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes analysis, interpretation, and decision-making purposes Knowledge of change management Knowledge of change management Knowledge of liability and risk management Knowledge of liability and risk management Knowledge of job analysis and job description methods Knowledge of job analysis and job description methods Knowledge of employee records management (for example, Knowledge of employee records management (for example, retention, disposal) retention, disposal) Knowledge of the interrelationships among HR activities and Knowledge of the interrelationships among HR activities and programs across functional areasprograms across functional areas

Source: http://www.hrci.org/certification/spec-core.htmlSource: http://www.hrci.org/certification/spec-core.html

Conclusions and ChallengesConclusions and Challenges

As business organizations and the business environment As business organizations and the business environment continue to evolve, the competencies required of HR continue to evolve, the competencies required of HR professionals are also evolving.professionals are also evolving.Knowledge is necessary but not sufficient prerequisite Knowledge is necessary but not sufficient prerequisite for success; skills and abilities are critical (i.e., the ability for success; skills and abilities are critical (i.e., the ability to put theory into practice).to put theory into practice).Key org and individual development question pertains to Key org and individual development question pertains to those skills and abilities – build or buy? those skills and abilities – build or buy? To great extent, both degree programs and certification To great extent, both degree programs and certification are indicators of knowledge, not necessarily are indicators of knowledge, not necessarily competencies.competencies.Hmmm…Hmmm…