The University of Texas at Arlington Graduate School of Business Administration Department of Management Management 5340 Strategic Human Resource Management Dr. Gary C. McMahan Office Hours and Communication: gmcmahan@uta.edu Office: Business Room 224 Spring 2005 Phone: 817.272.3862 Fax: 817.272.3122 Course Intent: To provide the MSHRM graduate business student with an understanding of managing people and the people function in organizations. I will provide materials in many different forms to help the student integrate major managerial and human resource concepts, strategic human resource management concepts, as we explore the role of managing people at work. This is not a training course in HR; however, I will attempt to provide both theoretical and practical ideas, cases and applications. Objectives of the Course: During the course, the successful student will make progress toward attainment of the following objectives: 1. Become familiar with the human resource management process and its key elements: a. b. c. d. Organization and human resource function goals and strategies Human resource planning and analysis Employee staffing – recruitment and selection Organizational career management – training, performance management and evaluation, and rewards/compensation e. Employee retention and turnover – psychological contract 2. Understand that human resources are an asset (investment) to be developed rather than a labor cost to be expensed 3. Comprehend the strategic fit of HR and the organization 4. Recognize the applicability of HR practices to organization success 5. Become acquainted with managerial decision-making through the study of HR problem situations 6. Develop greater skill in decision-making, particularly in human resource problem situations through emphasis on: a. Observing and becoming sensitive to potential problem situations b. Diagnosing problem situations c. Identifying and stating a problem(s) d. Selecting a course of action from a set of alternative HR solutions e. Implementing and monitoring a chosen course of action 7. Develop a personal philosophy of human resource management that will enable one to perform effectively as a manager Course Readings: Mello, Jeffery A., 2006. Strategic Human Resource Management, Second Edition. Thompson/Southwestern Publishers. UTA Bookstore should carry this textbook. Smith, Shawn, JD., & Mazin, Rebecca, 2004. The HR Answer Book: An Indispensable Guide for Manager’s and Human Resource Professionals. American Management Association, Publisher. Available through www.amazon.com or your normal destination for book purchases. Additional readings are assigned from time to time. Students are responsible for any readings assigned during the course. The HBS cases and readings for the course are as follows: Corey, A Note on Case Learning (9-899-105) Gittell & O’Reilly, Jet Blue Airways (9-801-354) Holland, The Portman Hotel Company (9-489-104) O’Reilly & Caldwell, Cypress Semiconductor A (HR-8A) Klein & Garvin, PPG: Self Directed Work Force (9-693-020) McManess & Sucher, The Ritz-Carlton Hotel Company (9-601-163) Beer, Conducting a Performance Appraisal Interview (9-497-058) Further contact information: Harvard cases can be purchased at the educational rate from Harvard Business School Publishing. Contact information is as follows: Phone: 1-800-545-7685 or 617-783-7600 (outside U.S. and Canada) Fax: 617-783-7666 Email: custserv@hbsp.harvard.edu Web: http://caseclassroom.hbsp.harvard.edu Mail: Harvard Business School Publishing 60 Harvard Way Boston, MA 02163 2 Attendance, Participation, Value-Added, and Group Involvement: Students are required to attend class and participate in a positive, learning manner to classroom discussions. If you are absent from a class meeting please make plans with a fellow student or your case group members to get notes or handouts from the session you miss. A group evaluation of each individual’s contribution may be used at the discretion of Dr. McMahan. Evaluation: Each student will be evaluated on the following scale: Participation/Group Involvement/Case Discussions Group Case Presentation and Analysis Exam - Mello textbook readings Course Report - Smith & Mazin analysis TOTAL 20% 30% 20% 30% 100% Grading Format: For the most part a traditional format of 90-100 A; 80-89 B; 70-79 C; below 70 F is followed. Dr. McMahan may also institute a “natural break” for grading purposes at the end of the term in determining a student’s final grade. ----------------------------------------------------------------------------------------------------------Group and Individual Case Preparation: Please read A Note on Case Learning prior to beginning your case analysis. There is no “one best way” to analyze a case. After reading the above material, design your own process for case analyses. You will most likely improve on your design as your group works through cases and we discuss them in class. Key Words: well-written, typed, double-spaced, interesting, cover page, creative, and real. The Group analysis should go above and beyond the Case Briefing Sheet to be discussed later in this syllabus. Each group will hand in a written cases analysis within a few sessions of the session they present their assigned case to the class. My expectation is that the case group assigned to a particular case, will present an overview of the case and then engage the class in a discussion of the case. All students should be prepared to discuss the case, but particularly the group or groups assigned to lead a given case. Groups will be formed on the first full session of class. Once formed, groups should set meeting and information sharing arrangements, task assignments, and completion procedures. Management of the case group process and its output are the responsibility of the group. Task and role assignments, group control functions, and leadership are to be determined by each group. Members of each group should agree early in the term as to the level and quality of acceptable performance of individuals and the group. Dr. McMahan will not intervene in these matters unless extremely significant problems develop within the group. The product must be delivered and the “show must go on.” 3 Exam: The exam will be objective in format and primarily covering the text chapters. Focus on comprehending what you are reading in the MELLO textbook when preparing for the exam. Course Report: The HR course report is an individual assignment. It should be based on the HR strategy, policies, programs, practices, and processes and the business model and strategies of an organization (the one where you work may qualify). It may require one or more interviews with the Chief HR Executive, or other persons with considerable knowledge of the firm’s business strategies and HR function. If you do interview a HR executive, you can ask questions (obtain information) that focuses on the following: 1. What is the role of the human resource function/department in the firm? 2. To what extent is the human resource staff/department/chief HR officer involved in strategic organizational decisions? 3. How is performance of the HR function (and chief HR officer) measured? 4. What was the most difficult organization problem faced by the HR department in the last two or three years? How was it resolved? 5. What are some of the most pressing HR issues faced by the organization today? Why? 6. What are key HR practices/programs/processes that comprise each link of the HR process? 7. How do these key practices/programs/processes enhance individual/organizational performance and strengthen the psychological contract? 8. How can key HR practices be changed and/or improved? In preparing your report you can focus on a particular organizational strategy and trace its impacts/implications through the HR process. Assess the effectiveness of the HR practices and indicate the shared roles of HR professional and line manager. Obtain copies of forms/documents such as a job description, employee selection scoring template, performance evaluation forms, organizational career management or succession plan, exit interview schedule, and any other item that helps to explain the employeeemployer psychological contract. The report should be approximately 12-15 pages, exclusive of 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 sub-headings, etc.) The paper should be turned in no later than the night of the scheduled final (see university schedule for actual date) under my door Room 224 Business Building. 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. 4 References and Periodicals: The following is a partial list of references and publications available through the UTA Campus Library and in most cases, directly online. Also, the largest American professional organization in the HR field is the Society for Human Resource Management. It has over 100,000 members and can be found at www.shrm.org. With a membership in SHRM you can access vast amounts of information about human resource management. HR Magazine is published by SHRM. Periodicals Academy of Management Journal Academy of Management Review Academy of Management Executive Academy of Management Learning & Education Administrative Science Quarterly Business Horizons California Management Review Compensation Review Fortune Harvard Business Review Human Resource Management Human Resource Management Review Human Resource Planning HR Executive Review, The Conference Board HR Magazine Industrial and Labor Relations Review International Journal of Human Resource Mgt. Monthly Labor Review Organization Dynamics Personnel Psychology Sloan Management Review Strategic Management Journal Training and Development Journal The Bureau of National Affairs and Commerce Clearing House publish considerable material on all aspects of human resource management. These organizations release HR information on a daily basis through numerous publications that focus on HR policies and practices, compensation and benefits, safety and health, and many other areas. The Wall Street Journal, Financial Times, and Business Week are three excellent publications for very current business data and information, including human resource management. 5 Case Briefing Sheets: Attached to this syllabus are briefing sheets for the assigned cases. Each briefing sheet provides a list of questions which student will answer during case discussions. If you miss a case discussion, or appear to Dr. McMahan as unprepared, you must provide written answers to the briefing sheet questions as a substitute. This substitution can be used only once. Schedule of Classes, Cases, Text Readings, Quizzes, and Exercises The following is a schedule of cases, quizzes, reading assignments, and exercises. While efforts will be made by Dr. McMahan to relate text readings, case discussions, videos, other readings and lectures, the student is ultimately responsible for learning and integrating the course content and completing course requirements. The text consists of relatively short, focused chapters and readings (reprinted articles). Read the reprinted articles along with the chapters. HR in Alignment and HR Heroes are videos made available by the SHRM foundation. Portions of each video will be shown during several case discussions. Conducting a Performance Appraisal Interview is not a case; it is a special note with helpful information in conducting an employee performance review. Session/Date Topic Text Chapter Case/Exercise/Video Due Dates 1 1/19 Introduction 2 1/26 HR and the Organization 1 3 2/2 HR Process 2 HR Alignment 4 2/9 Strategic Management 3 JetBlue 5 6 2/16 2/23 Strategic HR HR Planning 4 5 HR Heroes 7 3/2 Job and Work Design 6 Portman Hotel Group ____ 8 3/9 Staffing: Recruitment and Selection 8 PPG Self-Directed Group ____ 9 3/23 9 Ritz-Carlton 10 3/30 Training and Org. Development Performance Management 10 Cypress 11 4/6 Compensation 11 Form Case Groups Group ____ Group ____ Group _____ 6 12 4/13 Retention & Turnover 13 4/20 Exam 14 15 4/27 5/11 Global Human Resources Course Report - Room 224 12 14 Slide report under door Course Report ----------------------------------------------------------------------------------------------------------- More on the Course Cases: Although not designed nor developed together, some attempt has been made to relate the textbook readings with each case. Some chapters may be helpful in analyzing the cases; others may not yield much help. Each case has integrative aspects which we will build upon as we work through the cases. Case Relevant Textbook Chapters Jet Blue: Portman Hotel: PPG: Ritz-Carlton: Cypress: 1, 2, 3 plus integrative aspects 6, plus integrative aspects 5,7,10 plus integrative aspects 9, plus integrative aspects 6, 12, 13 plus integrative aspects THE FINE PRINT NOTE: This Course Schedule is subject to change. The reading assignments are not necessarily tied to the topic for that specific evening. The goal of the case/lecture/video/discussion format is not to cover everything in the chapters to any degree. The graduate student is responsible for the material in the book in addition to all lecture, discussion, video, group, and case material. 7 INDIVIDUAL LOG/RECORD OF EVALUATIONS/SCORES MANAGEMENT 5340 Spring 2005 STUDENT ___________________________________________ Requirement Weight Score Participation/Value-Added 20% _____ Case 30% _____ Exam 20% _____ Course Report 30% _____ Course Grade _____ 8 MANAGEMENT 5340 Spring 2005 Student Case Group Information Sheet GROUP HR NAME ___________________________________ Member Name Email Address 1 2 3 4 5 9 MANA 5340 JETBLUE AIRWAYS: STARTING FROM SCRATCH Briefing/Assignment Sheet (Or questions to organize and guide discussion) This case is concerned with how an entrepreneurial venture can develop a successful business model by emphasizing elements that can be a source of competitive advantage. The challenge faced by JetBlue is to grow the firm and its operations at a reasonably rapid rate without unduly taxing its various resources and damaging its key assets. The following questions can be used to frame your analysis and guide class discussion: 1. How is JetBlue similar to or different from Southwest Airlines? a. Consult the Mello textbook on performing a comparative analysis 2. If you owned and/or managed a venture capital fund would you invest in JetBlue? Why or why not? 3. What are the key features (or potential success factors) of JetBlue’s business model? 4. What is your evaluation of the degree of alignment of the corporate strategy (and business model), HR practices, and organization values and culture of JetBlue? Refer to the Mello text. 5. Is the objective of remaining union-free realistic and how important is being non-union to the business model and HR practices and systems? 6. Uses the models (framework) contained in Chapter 3 of the Mello text and prepare a brief situational and strategic analysis. A SWOT analysis can be used to do this. Also, go to the web site of Jet Blue to obtain current information. 10 MANA 5340 THE PORTMAN HOTEL COMPANY Briefing/Assignment Sheet (Or questions to organize and guide discussion) This is a complex case that contains information on Portman’s strategy and business model, HR systems and practices, and the performance of a crucial group of employees, the personal valets. The plan is not working and expectations of various internal stakeholders are not being realized. Soon after the hotel’s grand opening, the situation began to unravel. What went wrong? What can be done to correct the situation, or what action planning is necessary? How does Portman make adjustments to facilitate success? In analyzing Portman make sure you thoroughly understand the design of the original system(s), or how plans/processes/people were supposed to work. Also, carefully review the business context (environment) and Portman’s business model and strategy. Finally, what are the options for improvement? More specifically, and to assist with your review and analysis, the following questions should focus your attention: 1. What is the Portman business model and what was the personal valet arrangement trying to accomplish? 2. What are the key features (or elements) of the HR system and how were they supposed to function? What organization culture value (or attribute) was being emphasized with each feature? What was the expected outcome (or goal) of each feature? Finally, what was the outcome/result associated with each feature/value/goal? 3. Why isn’t the system working and what are the problems? 4. How did the 5-Star system deal with the problems? Did it work, or were improvements experienced following implementation of 5-Star? 5. What are various options for system improvement and what steps (implementation) would you take to bring about improvement? 6. Analyze the personal valet position using the Hackman/Oldham job characteristics model. (See the Mello text) 11 MANA 5340 PPG: DEVELOPING A SELF-DIRECTED WORK FORCE (A) Briefing/Assignment Sheet (Or questions to organize and guide discussion) This case deals with a firm that has been pursuing implementation of innovative work force techniques/methods. As you review case material and proceed with analysis and determining what to do (1) develop an understanding of a self-directed work force and why PPG wanted such an arrangement, (2) evaluate PPG’s approach to employee selection and development, and (3) identify the underlying tensions at Berea and propose means for relieving these tensions. More specifically: 1. What is a self-directed work force and how does it function? 2. What does management gain (and lose) with a self-directed work force? 3. What type of employee does this arrangement require? How do you make sure you get these people? (See the Mello text.) 4. What type of work (tasks) and task environment would seem to benefit from a self-directed approach to work force management? 5. Is the PPG situation appropriate for a self-directed work force arrangement? 6. How can PPG exercise control in a self-managed work situation? 7. What are the underlying tensions and how can they be relieved as PPG continues to move toward more self-direction by its operators? 8. Identify production tasks and HR tasks/decisions that could be handled by PPG self-directed work teams. 12 MANA 5340 THE RITZ-CARLTON HOTEL COMPANY Briefing/Assignment Sheet (Or questions to organize and guide discussion) This case deals with a situation in which a very successful training and hotel opening process are being seriously challenged by a real estate development group, or the owners of a new Ritz-Carlton facility. Essentially, the case discussion and analysis will examine how a successful service operating system is developed and to explore the question of when and how it should be changed. Specific questions for discussion are as follows: 1. What are the basic characteristics or key principles of the Ritz-Carlton business model? 2. What is the essence of the Ritz-Carlton experience? What is the Ritz-Carlton selling? 3. How does the Ritz-Carlton create “Ladies and Gentlemen” in only 7 days? What systems and processes produce (or contribute to) a successful service operating system in just seven days? See the Mello text for information about how training and development can help a firm gain a competitive advantage. 4. Brian Collins, hotel owner, has asked James McBride, Ritz-Carlton general manager, to lengthen the amount of time spent training hotel employees before the hotel opening. Should McBride lengthen the 7 Day Countdown? Why or why not? Or, what are the benefits and costs of extending the countdown? 5. Assume Collins prevails, how do you extend training or what changes might be made to accommodate a much faster ramp-up to the 80% occupancy level? 6. Or, is this the time that McBride should consider a total overhaul of the hotel opening process? If yes, what should be changed, and how should he go about doing it? What’s different about experimenting in a service business? 13 MANA 5340 CYPRESS SEMICONDUCTOR (A): VISION, VALUES, AND KILLER SOFTWARE Briefing/Assignment Sheet (Or questions to organize and guide discussion) This case illustrates and highlights several management and organization themes, including the leadership of T.J. Rogers. Our discussion will examine HR practices, corporate mission and strategy, and critical success factors. Some questions for review and discussion are as follows: 1. How would you describe the Cypress business model and the firm’s mission and strategies? How did the business model change in the early 1990s? 2. What are the values that T.J. Rogers has imprinted on the organization? How would you characterize his leadership style and behavior? 3. Are the vision, core values, and systems congruent with success? 4. Will the goals and performance management system produce the desired results, both in the short and long run? Why or why not? Alternatively, would you expect any dysfunctional consequences to develop from the goals and performance management system? 5. Could Cypress adopt a 360° performance management and feedback system? Why or why not? Review pages 312-320 of the Mello text for information about 360° systems. 6. Do the HR systems/practices fit the culture of Cypress and the employee performance expectations of Rogers? Explain. 7. How closely are HR systems/practices aligned with the initial business model? Is alignment maintained with the changed business model of the early to mid 1990s? 14