Deck 1: Managing Human Resources
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Deck 1: Managing Human Resources
1
CEO and CFO Relationships with HRM
Executives want HR leaders to play a key role in strategic planning, according to a survey of chief executive officers and chief financial officers in the United States and Europe. But while over half of CEOs think HR is fulfilling that role, few CFOs agree. This is partly because the financial officers want to measure hard numbers, and many HR executives are not delivering that quantitative view of performance.
What skills or competencies could help HR managers build stronger relationships with chief financial officers

Executives want HR leaders to play a key role in strategic planning, according to a survey of chief executive officers and chief financial officers in the United States and Europe. But while over half of CEOs think HR is fulfilling that role, few CFOs agree. This is partly because the financial officers want to measure hard numbers, and many HR executives are not delivering that quantitative view of performance.
What skills or competencies could help HR managers build stronger relationships with chief financial officers

The human resource managers require conjoining set of skills and capabilities in performing their duties. The HR managers cannot hire people without funding and no company can make money without people. Therefore, the Hr managers must understand the gap between wealth and talent while performing their roles within the organization.
Skills or competencies help HR managers to build stronger relationships with CFOs:
The HR department always needs the help of CFO so that they can better drive talent acquisition. The CFOs controls the costs and optimizes the investment. Hence, there should be a strong relationship between the CEO and HR to frame workforce planning, analytics and assessing the skill gaps. In this regard, the HR managers need effective skills and competencies to be an excellent contributor in balancing wealth and talent. This can be achieved through impeccable communication skills. Strong communication skills are the core of dealing with people related to wealth and talent. Secondly, relationship building skills helps in maximizing the potential of the business organization. The HR manager should be skilled in listening and responding to the care of concerns of various departments. Adaptability is also required while rethinking about the existing policies and crafting the new ones. The HR manager needs to be adaptable and capable in forecasting the need for changes. Most importantly, technological skills are mandatory today for a HR manager to handle a variety of duties within the organization.
Skills or competencies help HR managers to build stronger relationships with CFOs:
The HR department always needs the help of CFO so that they can better drive talent acquisition. The CFOs controls the costs and optimizes the investment. Hence, there should be a strong relationship between the CEO and HR to frame workforce planning, analytics and assessing the skill gaps. In this regard, the HR managers need effective skills and competencies to be an excellent contributor in balancing wealth and talent. This can be achieved through impeccable communication skills. Strong communication skills are the core of dealing with people related to wealth and talent. Secondly, relationship building skills helps in maximizing the potential of the business organization. The HR manager should be skilled in listening and responding to the care of concerns of various departments. Adaptability is also required while rethinking about the existing policies and crafting the new ones. The HR manager needs to be adaptable and capable in forecasting the need for changes. Most importantly, technological skills are mandatory today for a HR manager to handle a variety of duties within the organization.
2
HOW SHOULD AN EMPLOYER WEIGH CONFLICTING VALUES
One of the largest relief organizations in the United States recently struggled with HR policy. As a religious (Christian-based organization, it may use religion as the basis for employment standards. This organization has developed policies in an employee conduct manual intended to ensure that employees demonstrate the beliefs and morals of its founders' faith. Among those requirements is "abstinence before marriage and fidelity in marriage."
The problem for the organization's board of directors was that some states-including Washington, where it is headquartered -have made same-sex marriage legal, so the organization could potentially receive job applications from people who have married a partner of the same sex. To respect the values of employees and donors who hold traditional religious views, the organization had been denying them employment.
The board decided that religious views in the United States had become diverse enough that it should begin to allow people in same-sex marriages to work for the organization. However, when the board announced the decision, many donors became upset; by some reports, about 2,000 child sponsorships were ended. The board quickly reversed its decision. The organization's president expressed regret for not having consulted more with its community of supporters.
The organization tries to set high ethical standards for its employees. Neither the decision to allow hiring of workers in same-sex marriages nor the reversal of that decision violated the law as it applies to a religious-based organization. However, it did create embarrassing publicity for an organization that was trying to broaden its appeal and keep the focus on charity.
How well do you think the organization applied standards for ethical behavior Why
One of the largest relief organizations in the United States recently struggled with HR policy. As a religious (Christian-based organization, it may use religion as the basis for employment standards. This organization has developed policies in an employee conduct manual intended to ensure that employees demonstrate the beliefs and morals of its founders' faith. Among those requirements is "abstinence before marriage and fidelity in marriage."
The problem for the organization's board of directors was that some states-including Washington, where it is headquartered -have made same-sex marriage legal, so the organization could potentially receive job applications from people who have married a partner of the same sex. To respect the values of employees and donors who hold traditional religious views, the organization had been denying them employment.
The board decided that religious views in the United States had become diverse enough that it should begin to allow people in same-sex marriages to work for the organization. However, when the board announced the decision, many donors became upset; by some reports, about 2,000 child sponsorships were ended. The board quickly reversed its decision. The organization's president expressed regret for not having consulted more with its community of supporters.
The organization tries to set high ethical standards for its employees. Neither the decision to allow hiring of workers in same-sex marriages nor the reversal of that decision violated the law as it applies to a religious-based organization. However, it did create embarrassing publicity for an organization that was trying to broaden its appeal and keep the focus on charity.
How well do you think the organization applied standards for ethical behavior Why
An ideal workplace can be described where the employees can fit in perfectly and can be synced with the employer in terms of perceiving the future of the organization. Sadly, it is not possible always. In most of the organization, this is a real struggle for employees to settle in, adapt with the organizational culture and eventually make their mark. The case is about the relief organization's dealings with the conflicting values in relation to ethics.
The application of standards for ethical behavior:
The standards of ethical behavior are supposed to be applied in four situations. First, when the company is able to develop cordial relationships with its customers, venders, employees and clients. Secondly, when employees accepts their responsibilities for the actions of the organization. Third, when the organization and employees shares a common vision and values. Last, when the organization facilities fairness within the organization. As per the given case, the organization acted tactfully in getting high ethical standards for its employees. No decision of the organization was violated because of the status of a religious based organization.
The application of standards for ethical behavior:
The standards of ethical behavior are supposed to be applied in four situations. First, when the company is able to develop cordial relationships with its customers, venders, employees and clients. Secondly, when employees accepts their responsibilities for the actions of the organization. Third, when the organization and employees shares a common vision and values. Last, when the organization facilities fairness within the organization. As per the given case, the organization acted tactfully in getting high ethical standards for its employees. No decision of the organization was violated because of the status of a religious based organization.
3
" Talent Management Sounds Great, but... "
"We don't have time for it." At least, that seems to be the thinking at many companies.
Many managers agree that it sounds wise to plan for the kinds of people needed to carry out the organization's strategy, just as they would plan for every other resource. And it makes sense that managers would set goals for and measure the success of employee selection, training, performance feedback, and retention.
However, when the consulting firm Right Management surveyed hundreds of managers, the researchers found that only 12% have established and implemented a strategy for talent management.
Companies are much more likely to treat HR activities as separate processes disconnected from business objectives. In spite of that, about half the managers claimed that their company's leaders consider talent management a top priority. Even worse off may be the companies where 38% of managers said talent management is not a priority.
Why do you suppose half the managers say talent management is important at their company but only 12% say their company is doing it In other words, what is missing when people fail to do what they say is important
"We don't have time for it." At least, that seems to be the thinking at many companies.
Many managers agree that it sounds wise to plan for the kinds of people needed to carry out the organization's strategy, just as they would plan for every other resource. And it makes sense that managers would set goals for and measure the success of employee selection, training, performance feedback, and retention.
However, when the consulting firm Right Management surveyed hundreds of managers, the researchers found that only 12% have established and implemented a strategy for talent management.
Companies are much more likely to treat HR activities as separate processes disconnected from business objectives. In spite of that, about half the managers claimed that their company's leaders consider talent management a top priority. Even worse off may be the companies where 38% of managers said talent management is not a priority.
Why do you suppose half the managers say talent management is important at their company but only 12% say their company is doing it In other words, what is missing when people fail to do what they say is important
In simple sense, talent management can be described as an organization's commitment to hire, retain and enhance the skills of the most talented employee available in the workplace. It comprises almost all the work processes and systems concerned with establishing a superior workforce. However, most of the organization fails in implementing the concept though; they admit the importance of talent management in organization.
Reasons that people fail to do what they say is important:
The human resource department has numerous roles to fulfill. Among all, recruiting and retaining the most talented employees is a challenging one. The most common reason that HR fails in implementing talent management is higher total compensation demands. Additionally, the talent market is most often tightened and it is quite difficult for the management to find new personnel. A lack of leadership within the organization is also a barrier in implementing the concept of talent management for the HR department.
Reasons that people fail to do what they say is important:
The human resource department has numerous roles to fulfill. Among all, recruiting and retaining the most talented employees is a challenging one. The most common reason that HR fails in implementing talent management is higher total compensation demands. Additionally, the talent market is most often tightened and it is quite difficult for the management to find new personnel. A lack of leadership within the organization is also a barrier in implementing the concept of talent management for the HR department.
4
How "Good Things Happen to" Costco
Talking to a reporter, Costco's chief executive, Craig Jelinek, had a habit of stating the conditions in which "good things will happen to you." To summarize his retail company's strategy, Jelinek said, "As long as you continue to take care of the customer, take care of employees, and keep your expenses in line, good things are going to happen to you." Indeed, good things have happened to Costco, which stands out from other retailers for remaining profitable and avoiding layoffs during the Great Recession and beyond.
Although Costco has an online presence, the company is mainly a chain of warehouse stores that charge consumers a membership fee to enjoy rock-bottom prices. By ordering in bulk packages, displaying goods on pallets and steel shelving, and setting markups just a sliver over costs, Costco lures shoppers with low prices. It makes most of its profits from selling memberships. Consumers like the arrangement: the renewal rate is nearly 90%.
Costco's commitment to shaving expenses carries over to its plain headquarters but not to the way it treats employees. Since the 1980s, Costco has increased pay rates every three years, keeping compensation above industry norms. Even during the financial crisis in 2009, Costco announced raises. On average, a Costco worker earns $20.89 an hour, compared with $12.67 for an hourly employee working full-time for Walmart, which runs Costco's chief competitor, Sam's Club. In addition, Costco reported that 88% of its employees had company-sponsored health insurance plans, compared with Walmart's statement saying "more than half" of employees were covered. Costco also has resisted layoffs. For example, as other companies downsized store workforces and installed self-checkout lanes, Costco determined that its employees were more efficient and better suited to its customer service goals.
These decisions assume that satisfied employees will build a stronger company by being more committed to the organization and less likely to quit. Costco has a low rate of employee turnover (the percentage who quit each year): 5% among employees with at least a year on the job, or about one-fourth the industry average. The company therefore spends less to recruit and train new employees, and employees have more experience they can apply to providing great service. Costco also uses store employees as its main source of management talent. It pays tuition for hourly workers to pursue their education and move up the corporate ladder.
Costco's executives credit the treatment of employees with helping the company thrive. Its sales and stock price have been surging over the past few years. The company has been expanding in Europe and Asia, where it hopes its commitment to employee well-being will serve the company equally well.
What would you describe as Costco's basic strategy as a retailer How do its human resource practices support that strategy
Talking to a reporter, Costco's chief executive, Craig Jelinek, had a habit of stating the conditions in which "good things will happen to you." To summarize his retail company's strategy, Jelinek said, "As long as you continue to take care of the customer, take care of employees, and keep your expenses in line, good things are going to happen to you." Indeed, good things have happened to Costco, which stands out from other retailers for remaining profitable and avoiding layoffs during the Great Recession and beyond.
Although Costco has an online presence, the company is mainly a chain of warehouse stores that charge consumers a membership fee to enjoy rock-bottom prices. By ordering in bulk packages, displaying goods on pallets and steel shelving, and setting markups just a sliver over costs, Costco lures shoppers with low prices. It makes most of its profits from selling memberships. Consumers like the arrangement: the renewal rate is nearly 90%.
Costco's commitment to shaving expenses carries over to its plain headquarters but not to the way it treats employees. Since the 1980s, Costco has increased pay rates every three years, keeping compensation above industry norms. Even during the financial crisis in 2009, Costco announced raises. On average, a Costco worker earns $20.89 an hour, compared with $12.67 for an hourly employee working full-time for Walmart, which runs Costco's chief competitor, Sam's Club. In addition, Costco reported that 88% of its employees had company-sponsored health insurance plans, compared with Walmart's statement saying "more than half" of employees were covered. Costco also has resisted layoffs. For example, as other companies downsized store workforces and installed self-checkout lanes, Costco determined that its employees were more efficient and better suited to its customer service goals.
These decisions assume that satisfied employees will build a stronger company by being more committed to the organization and less likely to quit. Costco has a low rate of employee turnover (the percentage who quit each year): 5% among employees with at least a year on the job, or about one-fourth the industry average. The company therefore spends less to recruit and train new employees, and employees have more experience they can apply to providing great service. Costco also uses store employees as its main source of management talent. It pays tuition for hourly workers to pursue their education and move up the corporate ladder.
Costco's executives credit the treatment of employees with helping the company thrive. Its sales and stock price have been surging over the past few years. The company has been expanding in Europe and Asia, where it hopes its commitment to employee well-being will serve the company equally well.
What would you describe as Costco's basic strategy as a retailer How do its human resource practices support that strategy
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5
SHRM's Social-Media Presence
Members of the Society of Human Resource Management can connect with the organization's resources and with one another online, thanks to several applications of social media:
• SHRM has a Twitter account (http://twitter.com/shrm), so members can sign up for the group's Twitter feed.
• At the SHRM website, the SHRM Blog (http://blog.shrm.org) gives members a place to read the organization's latest thoughts and get involved in the conversation by reading and posting comments.
• Also at the website, SHRM has established its own members-only social network called SHRM Connect (http://community.shrm.org). Those who join the network can meet other SHRM members online and trade ideas. SHRM's features include search capabilities and e-mail alerts so members can look up and be aware of discussions on topics of interest.
• Another way to participate in member discussions at the website is to visit HR Talk (http://shrm.org/hrtalk), a discussion forum where members can post questions and answers in various HR subject areas.
• SHRM has a members-only group on LinkedIn, the careers networking site. The SHRM Group has more than 2,000 members.
Do you use Twitter or LinkedIn Would you be interested in seeing career-related information in social media such as these
Members of the Society of Human Resource Management can connect with the organization's resources and with one another online, thanks to several applications of social media:
• SHRM has a Twitter account (http://twitter.com/shrm), so members can sign up for the group's Twitter feed.
• At the SHRM website, the SHRM Blog (http://blog.shrm.org) gives members a place to read the organization's latest thoughts and get involved in the conversation by reading and posting comments.
• Also at the website, SHRM has established its own members-only social network called SHRM Connect (http://community.shrm.org). Those who join the network can meet other SHRM members online and trade ideas. SHRM's features include search capabilities and e-mail alerts so members can look up and be aware of discussions on topics of interest.
• Another way to participate in member discussions at the website is to visit HR Talk (http://shrm.org/hrtalk), a discussion forum where members can post questions and answers in various HR subject areas.
• SHRM has a members-only group on LinkedIn, the careers networking site. The SHRM Group has more than 2,000 members.
Do you use Twitter or LinkedIn Would you be interested in seeing career-related information in social media such as these
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6
Managing HR at a Services Firm
Susan K. Dubin describes herself as someone who enjoys helping others and making her company a positive place to work. Those attitudes have provided a strong basis for her successful career in human resource management. In two different companies, Dubin took on responsibilities for payroll, training, and employee relations. As she built her experience, she established a strong working relationship with Danone Simpson, an insurance agent.
Dubin was impressed with what she saw as Simpson's "commitment to client services." So when Simpson prepared to open her own insurance services business, Dubin was interested in signing on. For several years now, Dubin has been HR director for Montage Insurance Solutions (formerly Danone Simpson Insurance Services), which operates from offices in Woodland Hills, California. She also answers questions from clients who call the agency's HR hotline.
Dubin sees herself as contributing to the fastgrowing company's success. For example, she looks for the best deals in benefits programs in order to have room in her budget for the little things that contribute to an employee-friendly workplace: monthly luncheons, raffle prizes, and break rooms. That's a priority, Dubin says, because employees who are "happy at work" are "more productive, so everybody wins." Simpson sees that balance between nurturing and practicality in Dubin. According to Simpson, Dubin is supportive but also firm in enforcing standards: "She doesn't put up with any nonsense... but does it in a wonderful way."
Perhaps the Careers page of the company's website puts it best. Besides promoting the agency as an "honest and hardworking team," it says simply, "Please be advised that our organization cares about its employees."
How would you expect Dubin's job in a small services company to be different from a similar position in a large manufacturing company
Source: Montage Insurance Solutions corporate website, http://www.montageinsurance.com, accessed April 16, 2014; Susan Dubin, "How HR Inspires Me," Montage Blog, http://www.montageinsurance.com, accessed April 16, 2014; Mark R. Madler, "Valley's Top Human Resources Professionals: Susan K. Dubin," San Fernando Valley Business Journal , April 13, 2009, Business Company Resource Center, http://galenet.galegroup.com.
Susan K. Dubin describes herself as someone who enjoys helping others and making her company a positive place to work. Those attitudes have provided a strong basis for her successful career in human resource management. In two different companies, Dubin took on responsibilities for payroll, training, and employee relations. As she built her experience, she established a strong working relationship with Danone Simpson, an insurance agent.
Dubin was impressed with what she saw as Simpson's "commitment to client services." So when Simpson prepared to open her own insurance services business, Dubin was interested in signing on. For several years now, Dubin has been HR director for Montage Insurance Solutions (formerly Danone Simpson Insurance Services), which operates from offices in Woodland Hills, California. She also answers questions from clients who call the agency's HR hotline.
Dubin sees herself as contributing to the fastgrowing company's success. For example, she looks for the best deals in benefits programs in order to have room in her budget for the little things that contribute to an employee-friendly workplace: monthly luncheons, raffle prizes, and break rooms. That's a priority, Dubin says, because employees who are "happy at work" are "more productive, so everybody wins." Simpson sees that balance between nurturing and practicality in Dubin. According to Simpson, Dubin is supportive but also firm in enforcing standards: "She doesn't put up with any nonsense... but does it in a wonderful way."
Perhaps the Careers page of the company's website puts it best. Besides promoting the agency as an "honest and hardworking team," it says simply, "Please be advised that our organization cares about its employees."
How would you expect Dubin's job in a small services company to be different from a similar position in a large manufacturing company
Source: Montage Insurance Solutions corporate website, http://www.montageinsurance.com, accessed April 16, 2014; Susan Dubin, "How HR Inspires Me," Montage Blog, http://www.montageinsurance.com, accessed April 16, 2014; Mark R. Madler, "Valley's Top Human Resources Professionals: Susan K. Dubin," San Fernando Valley Business Journal , April 13, 2009, Business Company Resource Center, http://galenet.galegroup.com.
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7
Writing Effective HR Policies
Effective policies make it clear to employees what the organization requires. Policies should be easily understandable and relevant to employees. To write effective policies, apply the following guidelines:
• Decide whether a policy is needed for a situation. For example, does the law require a policy Does behavior by employees or managers suggest that they need guidance What would lead to better outcomes-a consistent standard or flexibility
• Find out whether any legal requirements affect the policy. For example, hiring and promotion decisions must meet legal requirements for avoiding discrimination.
• Consult with experts to be sure the needs of the situation are clear. Experts might include employees, managers, and the company's legal advisers.
• Be specific about the policy's purpose, the people it applies to, and the actions to take or avoid. Avoid jargon, and define any terms employees may not fully understand.
• Imagine scenarios where the policy might come into play. Make sure the way the policy applies in each situation is clear and appropriate, revising it if necessary.
• Tell where employees can ask questions or look up answers.
Why do you think it is important to tell employees the purpose of a policy
Effective policies make it clear to employees what the organization requires. Policies should be easily understandable and relevant to employees. To write effective policies, apply the following guidelines:
• Decide whether a policy is needed for a situation. For example, does the law require a policy Does behavior by employees or managers suggest that they need guidance What would lead to better outcomes-a consistent standard or flexibility
• Find out whether any legal requirements affect the policy. For example, hiring and promotion decisions must meet legal requirements for avoiding discrimination.
• Consult with experts to be sure the needs of the situation are clear. Experts might include employees, managers, and the company's legal advisers.
• Be specific about the policy's purpose, the people it applies to, and the actions to take or avoid. Avoid jargon, and define any terms employees may not fully understand.
• Imagine scenarios where the policy might come into play. Make sure the way the policy applies in each situation is clear and appropriate, revising it if necessary.
• Tell where employees can ask questions or look up answers.
Why do you think it is important to tell employees the purpose of a policy
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8
What skills are important for success in human resource management Which of these skills are already strengths of yours Which would you like to develop
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9
Managing HR at a Services Firm
Susan K. Dubin describes herself as someone who enjoys helping others and making her company a positive place to work. Those attitudes have provided a strong basis for her successful career in human resource management. In two different companies, Dubin took on responsibilities for payroll, training, and employee relations. As she built her experience, she established a strong working relationship with Danone Simpson, an insurance agent.
Dubin was impressed with what she saw as Simpson's "commitment to client services." So when Simpson prepared to open her own insurance services business, Dubin was interested in signing on. For several years now, Dubin has been HR director for Montage Insurance Solutions (formerly Danone Simpson Insurance Services), which operates from offices in Woodland Hills, California. She also answers questions from clients who call the agency's HR hotline.
Dubin sees herself as contributing to the fastgrowing company's success. For example, she looks for the best deals in benefits programs in order to have room in her budget for the little things that contribute to an employee-friendly workplace: monthly luncheons, raffle prizes, and break rooms. That's a priority, Dubin says, because employees who are "happy at work" are "more productive, so everybody wins." Simpson sees that balance between nurturing and practicality in Dubin. According to Simpson, Dubin is supportive but also firm in enforcing standards: "She doesn't put up with any nonsense... but does it in a wonderful way."
Perhaps the Careers page of the company's website puts it best. Besides promoting the agency as an "honest and hardworking team," it says simply, "Please be advised that our organization cares about its employees."
Based on the description in this case, how well would you say Susan Dubin appreciates the scope of human resource management What, if any, additional skills of an HR professional would you encourage her to develop
Source: Montage Insurance Solutions corporate website, http://www.montageinsurance.com, accessed April 16, 2014; Susan Dubin, "How HR Inspires Me," Montage Blog, http://www.montageinsurance.com, accessed April 16, 2014; Mark R. Madler, "Valley's Top Human Resources Professionals: Susan K. Dubin," San Fernando Valley Business Journal , April 13, 2009, Business Company Resource Center, http://galenet.galegroup.com.
Susan K. Dubin describes herself as someone who enjoys helping others and making her company a positive place to work. Those attitudes have provided a strong basis for her successful career in human resource management. In two different companies, Dubin took on responsibilities for payroll, training, and employee relations. As she built her experience, she established a strong working relationship with Danone Simpson, an insurance agent.
Dubin was impressed with what she saw as Simpson's "commitment to client services." So when Simpson prepared to open her own insurance services business, Dubin was interested in signing on. For several years now, Dubin has been HR director for Montage Insurance Solutions (formerly Danone Simpson Insurance Services), which operates from offices in Woodland Hills, California. She also answers questions from clients who call the agency's HR hotline.
Dubin sees herself as contributing to the fastgrowing company's success. For example, she looks for the best deals in benefits programs in order to have room in her budget for the little things that contribute to an employee-friendly workplace: monthly luncheons, raffle prizes, and break rooms. That's a priority, Dubin says, because employees who are "happy at work" are "more productive, so everybody wins." Simpson sees that balance between nurturing and practicality in Dubin. According to Simpson, Dubin is supportive but also firm in enforcing standards: "She doesn't put up with any nonsense... but does it in a wonderful way."
Perhaps the Careers page of the company's website puts it best. Besides promoting the agency as an "honest and hardworking team," it says simply, "Please be advised that our organization cares about its employees."
Based on the description in this case, how well would you say Susan Dubin appreciates the scope of human resource management What, if any, additional skills of an HR professional would you encourage her to develop
Source: Montage Insurance Solutions corporate website, http://www.montageinsurance.com, accessed April 16, 2014; Susan Dubin, "How HR Inspires Me," Montage Blog, http://www.montageinsurance.com, accessed April 16, 2014; Mark R. Madler, "Valley's Top Human Resources Professionals: Susan K. Dubin," San Fernando Valley Business Journal , April 13, 2009, Business Company Resource Center, http://galenet.galegroup.com.
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10
Traditionally, human resource management practices were developed and administered by the company's human resource department. Line managers are now playing a major role in developing and implementing HRM practices. Why do you think non-HR managers are becoming more involved
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11
Ingersoll Rand's Problem-Solving Approach to HRM
When Craig Mundy joined Ingersoll Rand as a human resources executive, he brought a business perspective. His approach was welcome at the company, which makes transportation and building products in support of a mission to create "comfortable, sustainable and efficient environments." The business's perspective is one of solving problems. In construction, for example, beyond selling heating and ventilation systems, it aims to improve air quality and comfort while reducing energy consumption. Likewise, in looking at its own operations, Ingersoll Rand has harnessed employee creativity to improve energy efficiency.
In contrast, Mundy knew that the focus of human resource management has often been on tasks more than on solutions. At a previous employer, Mundy had managed business projects. There, the company's HR staff was not always as helpful as he would have wished. Applying the experience, he came to Ingersoll Rand with determination to solve business problems.
Mundy started by identifying the strategic priorities of his business unit. He learned, for example, that Ingersoll Rand was seeking growth in countries with developing economies, a goal that required excellent country-level management. Mundy had the HR team determine how many country managers the company would need, when the need for each would arise, and what qualities make someone an excellent country manager. This information formed the basis of goals for supporting international growth. To achieve the goals, the HR team evaluated talent inside and outside the company and set up ways to help employees acquire the needed skills.
Mundy developed this approach into a Talent Solutions framework for addressing challenges facing each business area. He learned that one region had a problem with high turnover among sales representatives. Managers had tried to handle the problem by improving the process for recruiting new sales reps, but the high turnover continued. Applying the Talent Solutions framework, the HR team analyzed the pattern of turnover. The analysts found that turnover was highest after salespeople had been on the job about two and a half years, and that this was the point at which they were just becoming productive. The HR team decided to focus on helping salespeople become productive faster, so their jobs would become more rewarding faster. The team studied the entire process of hiring, training, and retaining employees and set goals for improvement in each stage of the process. Before long, salespeople were more engaged, delivered better results, and were less likely to quit.
Mundy's focus on business problems and solutions has improved Ingersoll Rand's performance. It also has reshaped the way Ingersoll Rand's business managers think about human resource management. Today they see Mundy's group as a strategic partner.
What important HRM skills has Craig Mundy applied to his role at Ingersoll Rand
When Craig Mundy joined Ingersoll Rand as a human resources executive, he brought a business perspective. His approach was welcome at the company, which makes transportation and building products in support of a mission to create "comfortable, sustainable and efficient environments." The business's perspective is one of solving problems. In construction, for example, beyond selling heating and ventilation systems, it aims to improve air quality and comfort while reducing energy consumption. Likewise, in looking at its own operations, Ingersoll Rand has harnessed employee creativity to improve energy efficiency.
In contrast, Mundy knew that the focus of human resource management has often been on tasks more than on solutions. At a previous employer, Mundy had managed business projects. There, the company's HR staff was not always as helpful as he would have wished. Applying the experience, he came to Ingersoll Rand with determination to solve business problems.
Mundy started by identifying the strategic priorities of his business unit. He learned, for example, that Ingersoll Rand was seeking growth in countries with developing economies, a goal that required excellent country-level management. Mundy had the HR team determine how many country managers the company would need, when the need for each would arise, and what qualities make someone an excellent country manager. This information formed the basis of goals for supporting international growth. To achieve the goals, the HR team evaluated talent inside and outside the company and set up ways to help employees acquire the needed skills.
Mundy developed this approach into a Talent Solutions framework for addressing challenges facing each business area. He learned that one region had a problem with high turnover among sales representatives. Managers had tried to handle the problem by improving the process for recruiting new sales reps, but the high turnover continued. Applying the Talent Solutions framework, the HR team analyzed the pattern of turnover. The analysts found that turnover was highest after salespeople had been on the job about two and a half years, and that this was the point at which they were just becoming productive. The HR team decided to focus on helping salespeople become productive faster, so their jobs would become more rewarding faster. The team studied the entire process of hiring, training, and retaining employees and set goals for improvement in each stage of the process. Before long, salespeople were more engaged, delivered better results, and were less likely to quit.
Mundy's focus on business problems and solutions has improved Ingersoll Rand's performance. It also has reshaped the way Ingersoll Rand's business managers think about human resource management. Today they see Mundy's group as a strategic partner.
What important HRM skills has Craig Mundy applied to his role at Ingersoll Rand
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12
If you were to start a business, which aspects of human resource management would you want to entrust to specialists Why
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13
How can human resource management contribute to a company's success
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Why do all managers and supervisors need knowledge and skills related to human resource management
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15
HOW SHOULD AN EMPLOYER WEIGH CONFLICTING VALUES
One of the largest relief organizations in the United States recently struggled with HR policy. As a religious (Christian-based organization, it may use religion as the basis for employment standards. This organization has developed policies in an employee conduct manual intended to ensure that employees demonstrate the beliefs and morals of its founders' faith. Among those requirements is "abstinence before marriage and fidelity in marriage."
The problem for the organization's board of directors was that some states-including Washington, where it is headquartered -have made same-sex marriage legal, so the organization could potentially receive job applications from people who have married a partner of the same sex. To respect the values of employees and donors who hold traditional religious views, the organization had been denying them employment.
The board decided that religious views in the United States had become diverse enough that it should begin to allow people in same-sex marriages to work for the organization. However, when the board announced the decision, many donors became upset; by some reports, about 2,000 child sponsorships were ended. The board quickly reversed its decision. The organization's president expressed regret for not having consulted more with its community of supporters.
The organization tries to set high ethical standards for its employees. Neither the decision to allow hiring of workers in same-sex marriages nor the reversal of that decision violated the law as it applies to a religious-based organization. However, it did create embarrassing publicity for an organization that was trying to broaden its appeal and keep the focus on charity.
In this situation, whose rights were affected What basic rights were at stake
One of the largest relief organizations in the United States recently struggled with HR policy. As a religious (Christian-based organization, it may use religion as the basis for employment standards. This organization has developed policies in an employee conduct manual intended to ensure that employees demonstrate the beliefs and morals of its founders' faith. Among those requirements is "abstinence before marriage and fidelity in marriage."
The problem for the organization's board of directors was that some states-including Washington, where it is headquartered -have made same-sex marriage legal, so the organization could potentially receive job applications from people who have married a partner of the same sex. To respect the values of employees and donors who hold traditional religious views, the organization had been denying them employment.
The board decided that religious views in the United States had become diverse enough that it should begin to allow people in same-sex marriages to work for the organization. However, when the board announced the decision, many donors became upset; by some reports, about 2,000 child sponsorships were ended. The board quickly reversed its decision. The organization's president expressed regret for not having consulted more with its community of supporters.
The organization tries to set high ethical standards for its employees. Neither the decision to allow hiring of workers in same-sex marriages nor the reversal of that decision violated the law as it applies to a religious-based organization. However, it did create embarrassing publicity for an organization that was trying to broaden its appeal and keep the focus on charity.
In this situation, whose rights were affected What basic rights were at stake
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Federal law requires that employers not discriminate on the basis of a person's race, sex, national origin, or age over 40. Is this also an ethical requirement A competitive requirement Explain.
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17
How "Good Things Happen to" Costco
Talking to a reporter, Costco's chief executive, Craig Jelinek, had a habit of stating the conditions in which "good things will happen to you." To summarize his retail company's strategy, Jelinek said, "As long as you continue to take care of the customer, take care of employees, and keep your expenses in line, good things are going to happen to you." Indeed, good things have happened to Costco, which stands out from other retailers for remaining profitable and avoiding layoffs during the Great Recession and beyond.
Although Costco has an online presence, the company is mainly a chain of warehouse stores that charge consumers a membership fee to enjoy rock-bottom prices. By ordering in bulk packages, displaying goods on pallets and steel shelving, and setting markups just a sliver over costs, Costco lures shoppers with low prices. It makes most of its profits from selling memberships. Consumers like the arrangement: the renewal rate is nearly 90%.
Costco's commitment to shaving expenses carries over to its plain headquarters but not to the way it treats employees. Since the 1980s, Costco has increased pay rates every three years, keeping compensation above industry norms. Even during the financial crisis in 2009, Costco announced raises. On average, a Costco worker earns $20.89 an hour, compared with $12.67 for an hourly employee working full-time for Walmart, which runs Costco's chief competitor, Sam's Club. In addition, Costco reported that 88% of its employees had company-sponsored health insurance plans, compared with Walmart's statement saying "more than half" of employees were covered. Costco also has resisted layoffs. For example, as other companies downsized store workforces and installed self-checkout lanes, Costco determined that its employees were more efficient and better suited to its customer service goals.
These decisions assume that satisfied employees will build a stronger company by being more committed to the organization and less likely to quit. Costco has a low rate of employee turnover (the percentage who quit each year): 5% among employees with at least a year on the job, or about one-fourth the industry average. The company therefore spends less to recruit and train new employees, and employees have more experience they can apply to providing great service. Costco also uses store employees as its main source of management talent. It pays tuition for hourly workers to pursue their education and move up the corporate ladder.
Costco's executives credit the treatment of employees with helping the company thrive. Its sales and stock price have been surging over the past few years. The company has been expanding in Europe and Asia, where it hopes its commitment to employee well-being will serve the company equally well.
In what ways does Costco meet the criteria for a "sustainable" organization
Talking to a reporter, Costco's chief executive, Craig Jelinek, had a habit of stating the conditions in which "good things will happen to you." To summarize his retail company's strategy, Jelinek said, "As long as you continue to take care of the customer, take care of employees, and keep your expenses in line, good things are going to happen to you." Indeed, good things have happened to Costco, which stands out from other retailers for remaining profitable and avoiding layoffs during the Great Recession and beyond.
Although Costco has an online presence, the company is mainly a chain of warehouse stores that charge consumers a membership fee to enjoy rock-bottom prices. By ordering in bulk packages, displaying goods on pallets and steel shelving, and setting markups just a sliver over costs, Costco lures shoppers with low prices. It makes most of its profits from selling memberships. Consumers like the arrangement: the renewal rate is nearly 90%.
Costco's commitment to shaving expenses carries over to its plain headquarters but not to the way it treats employees. Since the 1980s, Costco has increased pay rates every three years, keeping compensation above industry norms. Even during the financial crisis in 2009, Costco announced raises. On average, a Costco worker earns $20.89 an hour, compared with $12.67 for an hourly employee working full-time for Walmart, which runs Costco's chief competitor, Sam's Club. In addition, Costco reported that 88% of its employees had company-sponsored health insurance plans, compared with Walmart's statement saying "more than half" of employees were covered. Costco also has resisted layoffs. For example, as other companies downsized store workforces and installed self-checkout lanes, Costco determined that its employees were more efficient and better suited to its customer service goals.
These decisions assume that satisfied employees will build a stronger company by being more committed to the organization and less likely to quit. Costco has a low rate of employee turnover (the percentage who quit each year): 5% among employees with at least a year on the job, or about one-fourth the industry average. The company therefore spends less to recruit and train new employees, and employees have more experience they can apply to providing great service. Costco also uses store employees as its main source of management talent. It pays tuition for hourly workers to pursue their education and move up the corporate ladder.
Costco's executives credit the treatment of employees with helping the company thrive. Its sales and stock price have been surging over the past few years. The company has been expanding in Europe and Asia, where it hopes its commitment to employee well-being will serve the company equally well.
In what ways does Costco meet the criteria for a "sustainable" organization
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18
When a restaurant employee slipped on spilled soup and fell, requiring the evening off to recover, the owner realized that workplace safety was an issue to which she had not devoted much time. A friend warned the owner that if she started creating a lot of safety rules and procedures, she would lose her focus on customers and might jeopardize the future of the restaurant. The safety problem is beginning to feel like an ethical dilemma. Suggest some ways the restaurant owner might address this dilemma. What aspects of human resource management are involved
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19
How Abbott Laboratories Creates a Healthy Business
Anant Jain left a job at a consumer goods company to work for the finance department of Abbott Laboratories. It was a step that would propel him up the management ranks. Abbott paid for Jain to earn an MBA, including the skills necessary for making financial forecasts. Before long, Jain was ready to move to Dubai in the United Arab Emirates to take charge of financial planning for the Middle Eastern region.
Jain's story is hardly unique. Abbott's business strategy is based on hiring talented people and helping them develop their careers as they gain skills that increase their value to the company. When new employees join Abbott, the human resources department helps them set short-term goals and map out a career path. Reviews of employees' performance consider whether the employees are on track. Further development comes from a combination of on-the-job learning, training programs, and support from mentors.
Jain was hired by Abbott's subsidiary in India, but the commitment to employee growth and development is part of Abbott's global strategy. The company operates in more than 150 countries. Its industry-medical devices and (outside the United States) pharmaceuticals-undergoes constant change from innovation and regulation. To stay at the forefront of knowledge while remaining profitable in a turbulent industry, Abbott needs a special kind of employee who is flexible, open to change, and committed to excellence. Along with careful hiring and commitment to training, Abbott recruits and retains talent with efforts such as a mentoring program, surveys of employees, and in the United States, aid in translating veterans' military skills into career-related skills relevant to the civilian sector.
How do you think hiring and training could work hand-in-hand to help a company such as Abbott meet its business objectives
Anant Jain left a job at a consumer goods company to work for the finance department of Abbott Laboratories. It was a step that would propel him up the management ranks. Abbott paid for Jain to earn an MBA, including the skills necessary for making financial forecasts. Before long, Jain was ready to move to Dubai in the United Arab Emirates to take charge of financial planning for the Middle Eastern region.
Jain's story is hardly unique. Abbott's business strategy is based on hiring talented people and helping them develop their careers as they gain skills that increase their value to the company. When new employees join Abbott, the human resources department helps them set short-term goals and map out a career path. Reviews of employees' performance consider whether the employees are on track. Further development comes from a combination of on-the-job learning, training programs, and support from mentors.
Jain was hired by Abbott's subsidiary in India, but the commitment to employee growth and development is part of Abbott's global strategy. The company operates in more than 150 countries. Its industry-medical devices and (outside the United States) pharmaceuticals-undergoes constant change from innovation and regulation. To stay at the forefront of knowledge while remaining profitable in a turbulent industry, Abbott needs a special kind of employee who is flexible, open to change, and committed to excellence. Along with careful hiring and commitment to training, Abbott recruits and retains talent with efforts such as a mentoring program, surveys of employees, and in the United States, aid in translating veterans' military skills into career-related skills relevant to the civilian sector.
How do you think hiring and training could work hand-in-hand to help a company such as Abbott meet its business objectives
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20
Does a career in human resource management, based on this chapter's description, appeal to you Why or why not
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21
" Talent Management Sounds Great, but... "
"We don't have time for it." At least, that seems to be the thinking at many companies.
Many managers agree that it sounds wise to plan for the kinds of people needed to carry out the organization's strategy, just as they would plan for every other resource. And it makes sense that managers would set goals for and measure the success of employee selection, training, performance feedback, and retention.
However, when the consulting firm Right Management surveyed hundreds of managers, the researchers found that only 12% have established and implemented a strategy for talent management.
Companies are much more likely to treat HR activities as separate processes disconnected from business objectives. In spite of that, about half the managers claimed that their company's leaders consider talent management a top priority. Even worse off may be the companies where 38% of managers said talent management is not a priority.
How might a company that uses talent management gain an advantage over a competitor that treats HR tasks as unrelated activities
"We don't have time for it." At least, that seems to be the thinking at many companies.
Many managers agree that it sounds wise to plan for the kinds of people needed to carry out the organization's strategy, just as they would plan for every other resource. And it makes sense that managers would set goals for and measure the success of employee selection, training, performance feedback, and retention.
However, when the consulting firm Right Management surveyed hundreds of managers, the researchers found that only 12% have established and implemented a strategy for talent management.
Companies are much more likely to treat HR activities as separate processes disconnected from business objectives. In spite of that, about half the managers claimed that their company's leaders consider talent management a top priority. Even worse off may be the companies where 38% of managers said talent management is not a priority.
How might a company that uses talent management gain an advantage over a competitor that treats HR tasks as unrelated activities
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22
SHRM's Social-Media Presence
Members of the Society of Human Resource Management can connect with the organization's resources and with one another online, thanks to several applications of social media:
• SHRM has a Twitter account (http://twitter.com/shrm), so members can sign up for the group's Twitter feed.
• At the SHRM website, the SHRM Blog (http://blog.shrm.org) gives members a place to read the organization's latest thoughts and get involved in the conversation by reading and posting comments.
• Also at the website, SHRM has established its own members-only social network called SHRM Connect (http://community.shrm.org). Those who join the network can meet other SHRM members online and trade ideas. SHRM's features include search capabilities and e-mail alerts so members can look up and be aware of discussions on topics of interest.
• Another way to participate in member discussions at the website is to visit HR Talk (http://shrm.org/hrtalk), a discussion forum where members can post questions and answers in various HR subject areas.
• SHRM has a members-only group on LinkedIn, the careers networking site. The SHRM Group has more than 2,000 members.
How might participating in online discussion groups help you in your career
Members of the Society of Human Resource Management can connect with the organization's resources and with one another online, thanks to several applications of social media:
• SHRM has a Twitter account (http://twitter.com/shrm), so members can sign up for the group's Twitter feed.
• At the SHRM website, the SHRM Blog (http://blog.shrm.org) gives members a place to read the organization's latest thoughts and get involved in the conversation by reading and posting comments.
• Also at the website, SHRM has established its own members-only social network called SHRM Connect (http://community.shrm.org). Those who join the network can meet other SHRM members online and trade ideas. SHRM's features include search capabilities and e-mail alerts so members can look up and be aware of discussions on topics of interest.
• Another way to participate in member discussions at the website is to visit HR Talk (http://shrm.org/hrtalk), a discussion forum where members can post questions and answers in various HR subject areas.
• SHRM has a members-only group on LinkedIn, the careers networking site. The SHRM Group has more than 2,000 members.
How might participating in online discussion groups help you in your career
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23
Writing Effective HR Policies
Effective policies make it clear to employees what the organization requires. Policies should be easily understandable and relevant to employees. To write effective policies, apply the following guidelines:
• Decide whether a policy is needed for a situation. For example, does the law require a policy Does behavior by employees or managers suggest that they need guidance What would lead to better outcomes-a consistent standard or flexibility
• Find out whether any legal requirements affect the policy. For example, hiring and promotion decisions must meet legal requirements for avoiding discrimination.
• Consult with experts to be sure the needs of the situation are clear. Experts might include employees, managers, and the company's legal advisers.
• Be specific about the policy's purpose, the people it applies to, and the actions to take or avoid. Avoid jargon, and define any terms employees may not fully understand.
• Imagine scenarios where the policy might come into play. Make sure the way the policy applies in each situation is clear and appropriate, revising it if necessary.
• Tell where employees can ask questions or look up answers.
Suppose some employees are coming to work dressed in a way that distracts others. How could writing a dress code policy help in this situation If you were a manager, would you rather handle the situation by referring to a policy or discussing a specific employee's clothing choices Why
Effective policies make it clear to employees what the organization requires. Policies should be easily understandable and relevant to employees. To write effective policies, apply the following guidelines:
• Decide whether a policy is needed for a situation. For example, does the law require a policy Does behavior by employees or managers suggest that they need guidance What would lead to better outcomes-a consistent standard or flexibility
• Find out whether any legal requirements affect the policy. For example, hiring and promotion decisions must meet legal requirements for avoiding discrimination.
• Consult with experts to be sure the needs of the situation are clear. Experts might include employees, managers, and the company's legal advisers.
• Be specific about the policy's purpose, the people it applies to, and the actions to take or avoid. Avoid jargon, and define any terms employees may not fully understand.
• Imagine scenarios where the policy might come into play. Make sure the way the policy applies in each situation is clear and appropriate, revising it if necessary.
• Tell where employees can ask questions or look up answers.
Suppose some employees are coming to work dressed in a way that distracts others. How could writing a dress code policy help in this situation If you were a manager, would you rather handle the situation by referring to a policy or discussing a specific employee's clothing choices Why
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24
Managing HR at a Services Firm
Susan K. Dubin describes herself as someone who enjoys helping others and making her company a positive place to work. Those attitudes have provided a strong basis for her successful career in human resource management. In two different companies, Dubin took on responsibilities for payroll, training, and employee relations. As she built her experience, she established a strong working relationship with Danone Simpson, an insurance agent.
Dubin was impressed with what she saw as Simpson's "commitment to client services." So when Simpson prepared to open her own insurance services business, Dubin was interested in signing on. For several years now, Dubin has been HR director for Montage Insurance Solutions (formerly Danone Simpson Insurance Services), which operates from offices in Woodland Hills, California. She also answers questions from clients who call the agency's HR hotline.
Dubin sees herself as contributing to the fastgrowing company's success. For example, she looks for the best deals in benefits programs in order to have room in her budget for the little things that contribute to an employee-friendly workplace: monthly luncheons, raffle prizes, and break rooms. That's a priority, Dubin says, because employees who are "happy at work" are "more productive, so everybody wins." Simpson sees that balance between nurturing and practicality in Dubin. According to Simpson, Dubin is supportive but also firm in enforcing standards: "She doesn't put up with any nonsense... but does it in a wonderful way."
Perhaps the Careers page of the company's website puts it best. Besides promoting the agency as an "honest and hardworking team," it says simply, "Please be advised that our organization cares about its employees."
Look up descriptions of HR jobs by searching under "human resources" in the latest edition of the Bureau of Labor Statistics' Occupational Outlook Handbook (available online at www.bls.gov/OCO/). What position in the handbook best matches Dubin's job, as described in this case
Source: Montage Insurance Solutions corporate website, http://www.montageinsurance.com, accessed April 16, 2014; Susan Dubin, "How HR Inspires Me," Montage Blog, http://www.montageinsurance.com, accessed April 16, 2014; Mark R. Madler, "Valley's Top Human Resources Professionals: Susan K. Dubin," San Fernando Valley Business Journal , April 13, 2009, Business Company Resource Center, http://galenet.galegroup.com.
Susan K. Dubin describes herself as someone who enjoys helping others and making her company a positive place to work. Those attitudes have provided a strong basis for her successful career in human resource management. In two different companies, Dubin took on responsibilities for payroll, training, and employee relations. As she built her experience, she established a strong working relationship with Danone Simpson, an insurance agent.
Dubin was impressed with what she saw as Simpson's "commitment to client services." So when Simpson prepared to open her own insurance services business, Dubin was interested in signing on. For several years now, Dubin has been HR director for Montage Insurance Solutions (formerly Danone Simpson Insurance Services), which operates from offices in Woodland Hills, California. She also answers questions from clients who call the agency's HR hotline.
Dubin sees herself as contributing to the fastgrowing company's success. For example, she looks for the best deals in benefits programs in order to have room in her budget for the little things that contribute to an employee-friendly workplace: monthly luncheons, raffle prizes, and break rooms. That's a priority, Dubin says, because employees who are "happy at work" are "more productive, so everybody wins." Simpson sees that balance between nurturing and practicality in Dubin. According to Simpson, Dubin is supportive but also firm in enforcing standards: "She doesn't put up with any nonsense... but does it in a wonderful way."
Perhaps the Careers page of the company's website puts it best. Besides promoting the agency as an "honest and hardworking team," it says simply, "Please be advised that our organization cares about its employees."
Look up descriptions of HR jobs by searching under "human resources" in the latest edition of the Bureau of Labor Statistics' Occupational Outlook Handbook (available online at www.bls.gov/OCO/). What position in the handbook best matches Dubin's job, as described in this case
Source: Montage Insurance Solutions corporate website, http://www.montageinsurance.com, accessed April 16, 2014; Susan Dubin, "How HR Inspires Me," Montage Blog, http://www.montageinsurance.com, accessed April 16, 2014; Mark R. Madler, "Valley's Top Human Resources Professionals: Susan K. Dubin," San Fernando Valley Business Journal , April 13, 2009, Business Company Resource Center, http://galenet.galegroup.com.
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25
Ingersoll Rand's Problem-Solving Approach to HRM
When Craig Mundy joined Ingersoll Rand as a human resources executive, he brought a business perspective. His approach was welcome at the company, which makes transportation and building products in support of a mission to create "comfortable, sustainable and efficient environments." The business's perspective is one of solving problems. In construction, for example, beyond selling heating and ventilation systems, it aims to improve air quality and comfort while reducing energy consumption. Likewise, in looking at its own operations, Ingersoll Rand has harnessed employee creativity to improve energy efficiency.
In contrast, Mundy knew that the focus of human resource management has often been on tasks more than on solutions. At a previous employer, Mundy had managed business projects. There, the company's HR staff was not always as helpful as he would have wished. Applying the experience, he came to Ingersoll Rand with determination to solve business problems.
Mundy started by identifying the strategic priorities of his business unit. He learned, for example, that Ingersoll Rand was seeking growth in countries with developing economies, a goal that required excellent country-level management. Mundy had the HR team determine how many country managers the company would need, when the need for each would arise, and what qualities make someone an excellent country manager. This information formed the basis of goals for supporting international growth. To achieve the goals, the HR team evaluated talent inside and outside the company and set up ways to help employees acquire the needed skills.
Mundy developed this approach into a Talent Solutions framework for addressing challenges facing each business area. He learned that one region had a problem with high turnover among sales representatives. Managers had tried to handle the problem by improving the process for recruiting new sales reps, but the high turnover continued. Applying the Talent Solutions framework, the HR team analyzed the pattern of turnover. The analysts found that turnover was highest after salespeople had been on the job about two and a half years, and that this was the point at which they were just becoming productive. The HR team decided to focus on helping salespeople become productive faster, so their jobs would become more rewarding faster. The team studied the entire process of hiring, training, and retaining employees and set goals for improvement in each stage of the process. Before long, salespeople were more engaged, delivered better results, and were less likely to quit.
Mundy's focus on business problems and solutions has improved Ingersoll Rand's performance. It also has reshaped the way Ingersoll Rand's business managers think about human resource management. Today they see Mundy's group as a strategic partner.
How do talent management and evidence-based HR support Mundy's efforts to offer solutions
When Craig Mundy joined Ingersoll Rand as a human resources executive, he brought a business perspective. His approach was welcome at the company, which makes transportation and building products in support of a mission to create "comfortable, sustainable and efficient environments." The business's perspective is one of solving problems. In construction, for example, beyond selling heating and ventilation systems, it aims to improve air quality and comfort while reducing energy consumption. Likewise, in looking at its own operations, Ingersoll Rand has harnessed employee creativity to improve energy efficiency.
In contrast, Mundy knew that the focus of human resource management has often been on tasks more than on solutions. At a previous employer, Mundy had managed business projects. There, the company's HR staff was not always as helpful as he would have wished. Applying the experience, he came to Ingersoll Rand with determination to solve business problems.
Mundy started by identifying the strategic priorities of his business unit. He learned, for example, that Ingersoll Rand was seeking growth in countries with developing economies, a goal that required excellent country-level management. Mundy had the HR team determine how many country managers the company would need, when the need for each would arise, and what qualities make someone an excellent country manager. This information formed the basis of goals for supporting international growth. To achieve the goals, the HR team evaluated talent inside and outside the company and set up ways to help employees acquire the needed skills.
Mundy developed this approach into a Talent Solutions framework for addressing challenges facing each business area. He learned that one region had a problem with high turnover among sales representatives. Managers had tried to handle the problem by improving the process for recruiting new sales reps, but the high turnover continued. Applying the Talent Solutions framework, the HR team analyzed the pattern of turnover. The analysts found that turnover was highest after salespeople had been on the job about two and a half years, and that this was the point at which they were just becoming productive. The HR team decided to focus on helping salespeople become productive faster, so their jobs would become more rewarding faster. The team studied the entire process of hiring, training, and retaining employees and set goals for improvement in each stage of the process. Before long, salespeople were more engaged, delivered better results, and were less likely to quit.
Mundy's focus on business problems and solutions has improved Ingersoll Rand's performance. It also has reshaped the way Ingersoll Rand's business managers think about human resource management. Today they see Mundy's group as a strategic partner.
How do talent management and evidence-based HR support Mundy's efforts to offer solutions
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26
How Abbott Laboratories Creates a Healthy Business
Anant Jain left a job at a consumer goods company to work for the finance department of Abbott Laboratories. It was a step that would propel him up the management ranks. Abbott paid for Jain to earn an MBA, including the skills necessary for making financial forecasts. Before long, Jain was ready to move to Dubai in the United Arab Emirates to take charge of financial planning for the Middle Eastern region.
Jain's story is hardly unique. Abbott's business strategy is based on hiring talented people and helping them develop their careers as they gain skills that increase their value to the company. When new employees join Abbott, the human resources department helps them set short-term goals and map out a career path. Reviews of employees' performance consider whether the employees are on track. Further development comes from a combination of on-the-job learning, training programs, and support from mentors.
Jain was hired by Abbott's subsidiary in India, but the commitment to employee growth and development is part of Abbott's global strategy. The company operates in more than 150 countries. Its industry-medical devices and (outside the United States) pharmaceuticals-undergoes constant change from innovation and regulation. To stay at the forefront of knowledge while remaining profitable in a turbulent industry, Abbott needs a special kind of employee who is flexible, open to change, and committed to excellence. Along with careful hiring and commitment to training, Abbott recruits and retains talent with efforts such as a mentoring program, surveys of employees, and in the United States, aid in translating veterans' military skills into career-related skills relevant to the civilian sector.
How could a company such as Abbott benefit from sending an employee to school to study finance or another business subject
Anant Jain left a job at a consumer goods company to work for the finance department of Abbott Laboratories. It was a step that would propel him up the management ranks. Abbott paid for Jain to earn an MBA, including the skills necessary for making financial forecasts. Before long, Jain was ready to move to Dubai in the United Arab Emirates to take charge of financial planning for the Middle Eastern region.
Jain's story is hardly unique. Abbott's business strategy is based on hiring talented people and helping them develop their careers as they gain skills that increase their value to the company. When new employees join Abbott, the human resources department helps them set short-term goals and map out a career path. Reviews of employees' performance consider whether the employees are on track. Further development comes from a combination of on-the-job learning, training programs, and support from mentors.
Jain was hired by Abbott's subsidiary in India, but the commitment to employee growth and development is part of Abbott's global strategy. The company operates in more than 150 countries. Its industry-medical devices and (outside the United States) pharmaceuticals-undergoes constant change from innovation and regulation. To stay at the forefront of knowledge while remaining profitable in a turbulent industry, Abbott needs a special kind of employee who is flexible, open to change, and committed to excellence. Along with careful hiring and commitment to training, Abbott recruits and retains talent with efforts such as a mentoring program, surveys of employees, and in the United States, aid in translating veterans' military skills into career-related skills relevant to the civilian sector.
How could a company such as Abbott benefit from sending an employee to school to study finance or another business subject
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27
Imagine that a small manufacturing company decides to invest in a materials resource planning (MRP) system. This is a computerized information system that improves efficiency by automating such work as planning needs for resources, ordering materials, and scheduling work on the shop floor. The company hopes that with the new MRP system, it can grow by quickly and efficiently processing small orders for a variety of products. Which of the human resource functions are likely to be affected by this change How can human resource management help the organization carry out this change successfully
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