WHY DOESN’T THIS HR
DEPARTMENT GET ANY
RESPECT?
ANALYSIS PRESENTATION
Team H
Andrew Compton
Justin Holden
Natalie Stovicek
Chao-Ching (Jimmy) Lien
Paul Wroten
Questions
• What do YOU think about the case?
• Can you relate to it?
• Who has issues or stories about their HR Department
• Have you gotten a bad check?
• Have you filed a complaint that was ignored?
Short Clip
Bad HR
Summary of Loft
• Luke Robinson is recruited by new CEO to solve
several company issues.
• HR’s purpose was administrative under CEO,
Washington
• When Washington left, the company suddenly lost the
talent of attracting and retaining talented employees.
• Luke Robinson, an experienced top HR consultant, is
recruited by new CEO, Bernie Shargall, to solve the
issues.
• He takes the position as career challenge, however, he
is running into trouble.
Summary of
Incidents at Loft
Robinson’s Attempts
• Company had never before • Spent time with executives,
•
•
•
•
•
paid much attention to HR
Lost 4 key employees in
under two years
Conflicting opinions of Loft
Executives don’t pay
attention to Robinson’s
plans to fix things
Payroll mishap
Mishandling of
discrimination investigation
•
•
•
•
managers, brokers,
administrative staff, HR
staff, and external contacts
HR Ambassador program
Regular Meetings with
business-unit heads
Replaced ineffective HR
staff
Plan to educate employees
about role of HR
Character Analysis
• List of Characters
• 1. Luke Robinson (Managing Partner of HR)
• 2. Philip Washington (Former CEO)
• 3. Bernie Shargall (Current CEO) + Executive Committee
Luke Robinson, Managing Partner of HR
Philip Washington, Former CEO
Bernie Shargall, CEO & Executive Committee
Problems
1.
Hierarchical Structure
2.
Lack of Leadership
3.
Recruitment and Retention
4.
Improving employee morale and commitment
5.
Routine Administrative Problems
Problem 1 - Hierarchical Structure
• Centralized on Top Management
• Little support from employees
• Focused on consulting, thinking and planning, rather than doing
Solutions
• Decentralize!
• Distribute work/Give lower employees more power
• Wide range of skill sets needed
• Implement practices to enhance employee skill sets
Pros & Cons
• Pros:
• Decentralizing will take pressure off Robinson
• Distributing work will give employees more responsibility
• Emphasis of team work
• Greater support from employees
• Robinson may form better relationship with line managers and
employees
• Create a self-managing workforce
• Convince Shargall and executives of importance of HR Department
• Cons
• Long-term commitment
• Needed commitment from both Robinson and Executive committee
Problem 2 - Lack of Leadership
• Robinson & Shargall lack leadership that Washington
possessed
• Shargall from outside firm
• Robinson’s lack of leadership and initiative
• HR Ambassador Program is not effective
Solutions
• Create leadership model
• Specify goals and expected contributions from executives and
managers
• Create a democratic leadership style
• Collaboration & Information Sharing
• Create an open and honest work force within the organization
• Information Sharing
• Involve employees and managers
Pros & Cons
• Pros:
• Leadership model increases executive and manager motivation
• Leadership model supplies a starting point
• Information sharing emphasizes trust, transparency, and
collaboration
• Cons:
• Employees could leak information if it is shared with them
Problem 3 - Recruiting and Retention
• Recruiting
• Loss of attractiveness to talent candidates
• No well-defined regulation on recruiting
• Retention
• Loss of two senior managers
• Current employees do not think Loft is a better place to work
anymore.
• Employees do not trust HR
Solutions
• Outsource recruiting function (short-term)
• Focus on long-term goals first
• Robinson’s profession
• Pick-up later
• Retention:
• Conducting series of survey.
• Outsource the retention paperwork with detail requirement
Pros & Cons
• Pro’s
• Achieve the career
•
•
•
•
transaction of Robinson
Put more focus on strategic
goal
More professional emphasis
on attracting talent
Gain efficiency on simplify HR
roles to achieve flexibility
Hold back two functions
• Con’s
• Selection of strategic partner
• Strategy, position, personnel,
•
•
•
•
not clear defined
Less control in process
New employees not familiar
with Loft’s culture
Increasing on employees’
transaction cost
(Increasing turnover)
Problem 4 - Improving employee morale
and commitment
• Employees are not familiar with the HR people
• Employees can’t see the future of the company
• The rumors by two left senior manager
Solutions
• Career development (RBV)
• Training / presentation
• Weekly conference
• Memo form
• Talent management program
• Behavior perspective & cybernetic system in theory
• Focusing on idea sharing
• Information & technical support in the work
• Encourage self motivation
Pros & Cons
Pro’s
• Motivate employees
Con’s
• Time consuming
• Attention transferring
• Insufficient investment
• Giving the future
• Growth with Loft
Problem 5 - Routine Administrative
Problems
• Mishandled discrimination charge
• Year-end executive bonus check error
• Problems occurred before Robinson was hired
Solutions
• Outsource routine administrative work to 3rd party
• Common outsourced functions:
• Payroll
• 401k plans
• Health and welfare benefits
• Background checking
• Defined benefit plans
Pros
Cons
• Reduces time
• Paying extra money for
• Reduces resources
functions HR can
handle
• Hard time convincing
Shargall
spent
• Concentrate on
strategic activities
• HR not blamed if
problem
Conclusion
• Hierarchical structure
• Decentralize
• Empower employees
• Range of skill sets
• Implement practices
• Lack of leadership
• Create leadership model
• Democratic leadership
• Information sharing
Conclusion
• Recruiting and retention
• Recruitment: Outsourcing recruitment for the short term
• Retention: Conducting surveys
• Improving employee morale and commitment
• Career development
• Talent management program
• Routine administrative problems
• Outsource routine administrative work
Questions?