Strategic Human Resource Management Management 5340 EMBA 2012 George S. Benson, Ph. D. benson@uta.edu http://management.uta.edu/Benson/default.htm This is an applied course that examines how modern corporations use human resource management (HRM) to enhance organizational capabilities and achieve strategic objectives. Through the assigned readings, case discussion and various class exercises we will examine how the acquisition, deployment, assessment and retention of an organization’s workforce impacts productivity and firm performance in various contexts. Readings will cover the theory and research on strategic HRM as well as the various parts of a typical HR system. Some of the topics we will discuss include HR planning, recruitment strategies, methods of selection, competency modeling and job design, training and implementation of performance management processes. Case discussions will then be used to focus on specific strategic issues faced by companies including retention, talent management, mergers and acquisitions, incentive pay, and HR metrics. The approach of the course will be practical guidance for making staffing and management decisions in organizations based on explanatory theory and scientific research. In addition to learning the theory and topics of human resource management through readings and classroom lecture, this course cover the skills required for job analysis, interviewing and conducting performance evaluations. The course material is not only useful for working in human resource departments, but for all managers who hire, train, and evaluate employees. COURSE OBJECTIVES 1. Understand the practices that comprise human resource management in modern corporations: a) HR planning and forecasting b) Job analysis and work design c) Recruiting and selection d) Staffing and career systems e) Training and development f) Compensation g) Performance management 2. 3. 4. 5. Gain practical skills including HR forecasting, interviewing, and performance evaluations. Develop an appreciation for human resources as a strategic asset. Learn concepts and approaches to align HRM systems with business strategy. Develop skills in diagnosing HRM problems and developing solutions for organizations. 1 TEXTBOOK AND READINGS Jeffrey A. Mello, Strategic Human Resource Management, second edition (Southwestern-Thomson Learning, 2006). Web site, http://mello.swcollege.com Harvard Reprints and Cases 1. Chaudhuri & Tabrizi (1999). Capturing the real value in high-tech acquisitions. Harvard Business Review, (#99503). 2. Kerr (2003). The best-laid incentive plans. Harvard Business Review, (#R0301A). 3. Becker, Beatty & Huselid (2005). “A players” or “A positions”? Harvard Business Review, (R0512G). 4. Davenport, Harris, Shapiro (2010). Competing on Talent Analytics. Harvard Business Review, (#R1010B). 5. Comcast New England: Journal of Organizational Transformation (#9-908-405) 6. Brainard, Bennis and Farrell (#9-495-037) 7. Human Resources at the AES Corporation (#HR3) Additional Readings 1. Hammonds (2005). Why we hate HR. Fast Company, 97, p40-47. 2. Producing Sustainable Competitive Advantage Through the Effective Management of People (Reading 1.3 in Jeffrey A. Mello, Strategic Human Resource Management) 3. Distinctive Human Resources Are Firm’s Core Competencies (Reading 3.2 in Jeffrey A. Mello, Strategic Human Resource Management) 4. Wright (2008). Human Resource Strategy: Adapting to the Age of Globalization. Alexandria, VA: Society for Human Resource Management. Harvard cases and reprints can be purchased at the educational rate from Harvard Business School Publishing. Contact information: Phone: 1-800-545-7685 or 617-783-7600 (outside U.S. and Canada) Fax: 617-783-7666 Email: custserv@hbsp.harvard.edu Coursepack link: http://cb.hbsp.harvard.edu/cb/access/16547590 COURSE REQUIREMENTS The final course grade will be determined by a weighted average of scores on quizzes, an individual paper, and a final case exam. Weights for these items are as follows: Group Quizzes Individual Quizzes Individual Paper Group Case Paper 20% 30% 25% 25% Fifty-five percent of the course grade will be determined by individual performance (quizzes and individual paper) and forty-five percent will be determined by group performance (quizzes and final case exam). 2 Quizzes Six quizzes will cover cases and related text chapter material. Three quizzes will be taken individually and three will be taken as a group. For group quizzes all members of the group will receive the same grade. For a group quiz you must be present to receive the group’s performance as a grade. If you are absent and miss a case quiz, you may substitute written answers to questions that will be grade individually. This option can be exercised only once and cannot be substituted for a poor group quiz score. Your lowest quiz score will be dropped. Individual Paper This paper requires you to analyze a significant HRM issue in a large organization. The paper can be done in one of two ways: 1) identify an HRM problem and recommend a solution, or 2) detail how the organizational has already responded to a HRM issue and critique that response. Research should include interviewing relevant employees including an HR manager. All assessment should be based on the principles covered in the course and consistent with business strategy. The paper should include the following: Background information: You should begin with a basic description of the organization, the mission, strategy and relevant company history. Attach to your completed paper information on your source materials. This should include information on personal interviews conducted. Description of the issue and how it was handled: Summarize the issue which you have identified. Provide a short history of events including how the issue came about and what the organization did to address the issue. Assess the effectiveness of the HR practices in this situation and indicate the shared roles of HR department and line managers. Obtain copies of forms/documents such as job descriptions, employee selection tests, performance evaluation forms, organizational career management or succession plan, exit interview schedule, and any other item that helps to explain the issue. Your assessment: Give either recommendation for future action or your critique of the organization’s previous actions using the concepts discussed in class. Include reasons why the organization was successful or unsuccessful in dealing with the issue as well as specific recommendations for what managers could have done differently. Particular emphasis should be given to the alignment or misalignment of company strategy and the HR practices examined. The report should be approximately 10-15 pages, excluding exhibits, and presented in a narrative form with headings and sub-headings. The report will be evaluated primarily in terms of content, but 20 percent of the report score will be allocated to organization, compositional quality (style, spelling, grammar, and syntax), and appearance (typed or word-processed, headings and subheadings, etc.) The paper should be submitted no later than three weeks after the end of class by email to benson@uta.edu. If two of you work for the same business organization, you can work together to obtain information. However, each of you must prepare a different individual HR report. 3 Final Case Exam This assignment requires you to work in groups. You will read and analyze the case “Human Resources at AES Corp.” Questions to guide your analysis will be distributed during Monday’s class. The final case exam should be submitted to benson@uta.edu no later than two weeks after the end of class. Each group will be given a single grade shared by each member of the group. The case analysis should be approximately 15 pages in length (not including charts or appendices) and presented in a narrative form with headings and sub-headings. The report will be evaluated primarily in terms of content, but 20 percent of the report score will be allocated to organization, compositional quality (style, spelling, grammar, and syntax), and appearance (typed or wordprocessed, headings and sub-headings, etc.). Case Briefing Sheets Briefing sheets with relevant questions are provided for the assigned cases. Each briefing sheet provides a list of questions which will be answered during case discussions. If you miss a class session and case discussion, you may provide written answers to the briefing sheet questions as a substitute for the quiz. This substitution can be used only once, unless special arrangements are made with the course instructor. CLASS FORMAT Class participation is essential for an effective case learning process. All class sessions will follow a format that encourages active participation in discussing and analyzing HRM concepts and study materials. In addition to brief lectures and video presentations, the class will consist of case discussions and participation in interactive activities. The course instructor will lead case discussions, but class is expected to participate through a question and answer format. These instruction methods emphasize learning through study, practice, and feedback both on an individual basis and in group or team activities. The text consists of relatively short, focused chapters and readings. A series of reprinted articles from Harvard Business Review have also been assigned. Read the reprinted articles along with the chapters. ACADEMIC HONESTY Academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form. All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures. Discipline may include suspension or expulsion in addition to a failing class grade. Working together with classmates is encouraged for many parts of the class and approximately 50% of the grade will be determined by group work. For individual tasks, however, it is expected that all work submitted will be 100% original. Even if you work together on preparation for certain tasks and written assignments, all writing must be done independently and include appropriate citations for paraphrased or quoted material. “Academic dishonesty includes, but is not limited to, cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts.” (Regents’ Rules and Regulations, Part One, Chapter VI, Section 3, 4 Subsection 3.2., Subdivision 3.22). In alignment with this the University has adopted the Academic Honor Code which is incorporated into all coursework. UT Arlington Honor Code I pledge, on my honor, to uphold UT Arlington’s tradition of academic integrity, a tradition that values hard work and honest effort in the pursuit of academic excellence. I promise that I will submit only work that I personally create or contribute to group collaborations, and I will appropriately reference any work from other sources. I will follow the highest standards of integrity and uphold the spirit of the Honor Code. In accordance with the Rules and Regulations of the Board of Regents of The University of Texas System (Rule 50101), institutional procedures regarding allegations of scholastic dishonesty are outlined in Part Two, Chapter 2, of the UT Arlington Handbook of Operating Procedures. Students found responsible for dishonesty in their academic pursuits are subject to penalties that may range from disciplinary probation to suspension or expulsion from the University. Any student who registers to attend classes at UT Arlington and is ineligible to attend for disciplinary reasons will be dropped automatically from the rolls of the University. This information may be obtained by accessing the Office of Student Conduct web site at http://www.uta.edu/conduct/. ABOUT THE INSTRUCTOR George S. Benson is an Associate Professor at the University of Texas at Arlington. Dr. Benson earned his Ph.D. from the University of Southern California and completed a Post-Doctoral Fellowship at the Center for Effective Organizations in the Marshall School of Business. Dr. Benson’s research focuses on HR measurement, employee involvement and the strategic management of human capital. He co-authored with Ed Lawler and Sue Mohrman Organizing for High Performance (Jossey-Bass, 2001). Dr. Benson’s writing has appeared in Journal of Applied Psychology, Academy of Management Journal, Human Resource Management, Organizational Dynamics, Sloan Management Review, and Training & Development among others. Dr. Benson’s work with companies has included HR metrics, job design, compensation, employee engagement and retention programs, employee attitude surveys, and training design and evaluation. He has worked with a wide range of organizations including Alcon Laboratories, ADESA Corporation, Aetna, Frito-Lay, KFC-Yum Brands, Pratt & Whitney, and PriceWaterhouse Coopers. Dr. Benson previously worked as a researcher at the American Society for Training and Development in Alexandria, Virginia. He also holds degrees from Washington and Lee University and Georgetown University. 5 Friday Introduction to HRM Chapter 1 An Investment Perspective on HRM Models of Corporate Strategy Chapter 3 Reading Strategic Planning Distinctive Human Resources Are Firm’s Core Competencies Reading 3.2 in Jeffrey A. Mello, Strategic Human Resource Management, Chapter 4 The Evolving / Strategic Role of HR Group Quiz #1 Saturday Individual Quiz #1 Group #1 Case: Why we hate HR Comcast New England: Journey of Organizational Transformation Planning and Forecasting Chapter 5 Human Resource Planning Job and Organization Design Chapter 6 Design of Work Systems Internal and External Recruiting Chapters 8 Group #2 Staffing Capturing the real value in high-tech acquisitions. Group Quiz #2 6 Sunday Individual Quiz #2 Performance Management Chapter 10 Group #3 Performance Management and Feedback The Best-Laid Incentive Plans Training and Development Chapter 9 Training and Development Compensation Chapter 11 Case: Compensation Brainard, Bennis and Farrell Group #4 “A players” or “A positions”? Monday Individual Quiz #3 HR Differentiation Group #5 Competing on Talent Analytics HR Metrics Reading Human Resource Strategy: Adapting to the Age of Globalization Applying Value Chain Analysis HR Alignment Group #6 Producing Sustainable Competitive Advantage Through the Effective Management of People (Reading 1.3 in Jeffrey A. Mello, Strategic Human Resource Management) 7 Strategic Human Resource Management CASE BREIFINGS These are questions to organize and guide discussion. They should be prepared in advance and will be used to help you respond to group quizzes. If you are absent from any one of the group quizzes, written answers to the briefing questions may be submitted for a grade. Comcast New England: Journal of Organizational Transformation (#9-908-405) 1. What challenges did Comcast New England following its acquisition of AT&T broadband? 2. What was the “Strategic Fitness Process”? 3. What role did HR play in the transformation of Comcast New England? Brainard, Bennis and Farrell (#9-495-037) 1. What tradeoffs are involved in setting partner compensation? 2. Assume that the partners represented in Exhibit 2 are a representative cross section of the firm in terms of performance, skill, and background. Allocate 216 compensation “points” among these eight partners (8/37ths of the partner’s 1000 point pool) and be prepared to justify your allocation. 3. What principles or values did you use to guide your compensation decisions? 8