STRATEGIC HUMAN RESOURCE MANAGEMENT MANAGMENT 5340 Fall 2008 EXECUTIVE MASTER OF BUSINESS ADMINISTRATION (EMBA) Shanghai and Beijing Modern human resource management may be viewed as a process of acquisition, development, utilization, and maintenance of a human resource mix (people and positions) to achieve strategic organizational goals and objectives. The purpose of this course is to provide the student with an understanding of human resource management from theoretical, practical, and empirical viewpoints. Material will be presented and discussed from the perspective of the operating or line manager as well as the human resource specialist. Attention will be devoted to the various contexts of human resource management, basic techniques and methods, and the changing nature of managing human resources. More specifically, our concerns will include human resource and employment planning, employee recruitment and selection, training and development, performance planning and evaluation, compensation administration, organizational career management, structure of the human resource function, and the strategic role of human resource management. Objectives of the Course: During the course, the student will hopefully progress toward attainment of the following objectives: 1. Become familiar with the human resource management process (or HR value chain) and its key elements: a. b. c. d. Organization and human resource 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 1 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. b. c. d. e. Observing and becoming sensitive to potential problem situations Diagnosing problem situations Identifying and stating a problem(s) Selecting a course of action from a set of alternative HR solutions 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 Instructor and Facilitator: David A. Gray, Associate Dean and Professor College of Business Administration Contact Information: Office 817-272-3387 Fax 817-272-2073 Email gray@uta.edu Office Hours: Daytime Hours or 8:00 a.m. to 6:00 p.m. weekdays. Required Text and Study Materials: A standard text, several HR management cases, and a few exercises will be used in the course. The following text has been selected: Jeffrey A. Mello, Strategic Human Resource Management, 2nd edition (Southwestern-Thomson Learning, 2006). Web site, http://mello.swcollege.com ISBN: 0-324-29043-8 Several Harvard and Ivey Business School cases will be used; these are Harvard Business School Cases Thomas, Groysberg, and Reavis, Sonoco Products (A): Building a World Class HR Organization (9-405-009) Holland, The Portman Hotel Company (9-489-104) Gittell and O’Reilly, JetBlue Airways (9-801-354) O’Reilly and Caldwell, Cypress Semiconductor (A) (HR – 8A) McManess and Sucher, The Ritz-Carlton Hotel Company (9-601-163) Burton, DeLong, and Lawrence, Morgan Stanley: Becoming a ‘One-Firm’ Firm (9-400-043) Burton and DeLong, The Firmwide 360° Performance Evaluation Process at Morgan Stanley (9-498-053) Pfeffer, Human Resources at the AES Corporation: The Case of the Missing Department (HR3) Ellet, How to Analyze a Case (2449BC) 2 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 Richard Ivey School of Business, University of Western Ontario Francesco and Chen, Organizational Transformation in a Taiwanese Company (9A99C035) Gleave and Golden, FIVE STAR Beer – Pay for Performance (9A98C004) Yang, Jindi Enterprises: Finding A New Sales Manager (9A903A09) Ivey cases can be purchased from Ivey Publishing, Richard Ivey School of Business. Contact information is as follows: Phone: 519-661-3208 or (1-800-649-6355 (in Canada and U.S.) Fax: 519-661-3882 Email: cases@ivey.uwo.ca Web: http://www.ivey.uwo.ca/cases Mail: Ivey Publishing C/o Richard Ivey School of Business The University of Western Ontario London, Ontario Canada NGA 3K7 Additional case, project, exercise, and other materials will be distributed in class. Course Requirements: The final course grade will be determined by a weighted average computation of scores on brief exams or daily quizzes, an HR value chain analysis report, and a final exam of case questions. Weights for these items are as follows: Case and Text Exams (Quizzes) HR Value Chain Report Final Exam-Case Question 50 percent 25 percent 25 percent Fifty percent of one’s course grade will be determined by individual performance and 50 percent will be determined by group performance. The in class case exams will be used as measures of individual performance and the final case exam and HR value chain report are primarily group projects. 3 In class case quizzes will be objective in format and cover cases and related text chapter material. You may use the textbook and cases during an exam. If you are absent and miss a case exam, you may substitute case reports (actually, answers to questions on the case briefing sheets) for the missed exam. One quiz will be given each class day. Alternative frameworks for analyzing cases will be discussed; case briefing sheets can be found in the last several pages of the syllabus. Read How to Analyze A Case prior to the first class. The final exam consists of case questions to be completed on a group basis. The completed final exam must be emailed to gray@uta.edu no later than September 30, 2008, for the Shanghai Cohort and October 8, 2008, for the Beijing Cohort. The HR value chain analysis report is an individual and group assignment. It should be based on the HR strategy, policies, programs, practices, and processes and the business model and strategies of one firm represented in your group. It may require one or more interviews with the Chief HR Officer, or other persons with considerable knowledge of the firm’s business strategies and HR function. If you and your group members do interview an HR official, you can ask questions (obtain information) that focus 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 value chain? 7. How do these key practices/programs/processes enhance individual/organizational performance, strengthen the psychological contract and to what extent are they aligned with the business model and key strategies? 8. How can key HR practices be changed/improved? These last three questions (6, 7, and 8) are the most important in terms of your group’s analysis and report. In preparing your analysis and report you can focus on a particular organizational strategy and trace its impacts/implications through the HR value chain. Assess the effectiveness of the HR practices along the value chain 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 HR value chain and employee-employer psychological contract. 4 The report should be approximately 10-15 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 (headings and sub-headings, etc.) The paper should be submitted no later than October 22, 2008, by email message to gray@uta.edu. Focus on one firm represented in your group. Most of the report should be prepared by group members who do not work for this firm. Additional instructions will be distributed the last day of class. Class Participation: Class participation is essential for an effective case learning process. The course instructor will lead case discussions; students will not be making oral case presentations. Much of the case discussion will be effected through a question and answer format. However, for some cases we may use a group exercise or a debate format. A group vs. group debate can be used to deal with a key question contained at the end of the Ritz-Carlton Hotel case. A group task will be used to facilitate our discussion of the Portman Hotel case. Instructional Format and Methods: In developing a rich learning environment and approaching the course objectives, the sessions will follow a format that encourages active participation in discussing and analyzing HR management concepts and study materials. In addition to brief lectures, the class will consist of case discussions and participation in activities such as completing behavioral instruments and engaging in group decision-making tasks. These instruction methods emphasize learning through study, practice, and feedback both on an individual basis and in group or team activities. About 60 percent of class time will be devoted to case discussions and experiential exercises. 5 Classroom Management and Student Conduct Classes will begin and end at the appointed (or announced) times; short breaks will be taken in the mornings and afternoons. Each student should prepare a name card for display using English letters and adopted American first name, if one is used. Class attendance will be taken once or twice each class day. Group members should be seated together for ease of discussion and participation in group exercises. For case exams in class, you must complete the exam entirely by yourself; you cannot consult with or speak to another student, or share answers. Cell phones must be turned off, or set on vibration mode during class. You cannot talk on a cell phone in class; all of your attention should be directed to the case discussion, exercise or presentation. Also, laptop computers cannot be used, except for note taking; there is no need to be connected to the internet, unless told to do so by the instructor. References and Periodicals: The following is a partial list of references and publications available through the UT Arlington 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 150,000 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 6 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. Schedule of Classes, Cases, Text Readings, Quizzes, and Exercises: The following is a schedule of cases, exams, reading assignments, and exercises. While efforts will be made by the course instructor to relate text readings, case discussions, 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). The reprinted articles at the ends of chapters are optional reading. Three chapters (2, 7, and 12) are not listed below as these chapters cover material that is somewhat unique to the United States. If time is available and students are interested in American employment laws and labor unions, some of the material in these three chapters can be presented and discussed. HR in Alignment, HR Heroes, and Fueling the Talent Engine are videos made available by the SHRM Foundation. There is a case video containing an interview with Cindy Hartley which will be used with the Sonoco Products case. 7 Date Topic 9-12; 9-20 Introduction to HR HR Function and Structure HR Value Chain Business Model/Strategy 9-13; 9-21 9-14; 9-22 9-15; 9-23 Text Chapter 1 Case/Exercise/DVD Sonoco Products (Case) and DVD 3 JetBlue (Case) Strategic HR HR Business Leadership 4 Org. Transformation (Case) HR Heroes (DVD) Chief HR Officer HR Planning Job and Work Design Staffing: Recruitment and Selection 5 Job Description (Exercise) Forecasting (Exercise) Portman Hotel (Case) Jindi Enterprises (Case) Training and Development Needs Analysis, Design, Delivery, and Evaluation Performance Management And Evaluation 9 Fueling the Talent Engine (DVD) Ritz-Carlton (Case) 10 Morgan Stanley (2 Cases) Cypress (Case) Compensation: Components Incentives 11 Pay for Performance (Exercise) Five Star Beer (Case) Retention and Turnover International HR 13 14 HR in Alignment (DVD) AES Corporation (Case) 6 8 Case-Text-Exam Matrix: For every case, two or more text chapters are linked to the case for exam purposes (see matrix below). The cases and text were obviously not developed and written together; consequently, there are other chapters that may be of some use in understanding and analyzing the case problem(s). Each quizz will focus on one or more cases and associated text chapters as indicated in the matrix. 8 Case Sonoco Jet Blue Org Transformation Portman Hotel Jindi Enterprises Ritz-Carlton Cypress Morgan Stanley Five Star Beer AES Corporation 1 X X 3 X X 4 X X 5 X X Text Chapters 6 8 9 10 X X X X X X 11 13 14 X X X X X X X Final Exam: As indicated earlier, the final exam consists of a set of questions from several of the cases. The questions are to be answered by group members with answers submitted by email no later than September 30, 2008, for the Shanghai Cohort and October 8, 2008, for the Beijing Cohort. Case Briefing Sheets: The last ten pages are briefing sheets for the assigned cases. Each briefing sheet provides a list of questions which will be answered during case discussions. 9 INDIVIDUAL LOG/RECORD OF EVALUATIONS/SCORES MANAGEMENT 5340 Fall 2008 China STUDENT __________________________________________________ Case, Exam, Report, etc. Weight Score Case Quiz 12.5% _____ Case Quiz 12.5% _____ Case Quiz 12.5% _____ Case Quiz 12.5% _____ HR Value Chain Report 25% _____ Final Case Exam 25% _____ Course Grade (weighted average) _______________ 10 MANAGEMENT 5340 Fall 2008 China Student/Group Information Sheet GROUP HR NAME ___________________________________ Member Name Email Address 1 2 3 4 5 6 11 MANA 5340 SONOCO PRODUCTS COMPANY (A): BUILDING A WORLD-CLASS HR ORGANIZATION Briefing/Assignment Sheet (Or questions to organize and guide discussion) This is an excellent case to examine numerous aspects of a major HR management change effort in a large commercial enterprise. HR management policies and practices can be reviewed/examined in light of changing internal and external environmental conditions. (15) 1. What external (outside environment) and internal (inside the firm) factors or conditions are indicating (even dictating) HR changes in strategy, structure, and process (policies and practices)? (15) 2. How do you characterize (describe) the HR roles of Cindy Hartley, in particular with respect to the roles specified in the text, Chapter 4? (20) 3. Critique (or evaluate) Hartley’s change management strategy in terms of areas of change, methods to effect change, and results. (50) 4. Two HR structures are proposed at the end of the case. Compare and contrast the two options. Also, answer the following: a. Which option makes more sense bearing in mind a changing industry in which “only the flexible survive”? b. Which one would better insure the right people were in the right positions? c. Which options would help the company meet its financial target— providing annual, double-digit returns for its shareholders? d. And finally, which option best demonstrates Sonoco’s long-held principle that “people build businesses”? 12 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: (15) 1. How would you characterize (or describe) the chief HR officer role of Ann Rhodes in reference to pages 159-160 of the text and the HR role configuration presented? (10) 2. If you owned and/or managed a venture capital fund would you invest in JetBlue? Why or why not? (20) 3. What are the key features (or potential success factors) of JetBlue’s business model? (20) 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? See pages 86-97 of the Mello text. (10) 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? (15) 6. Use the model (framework) contained in Chapter 3 of the Mello text (see page 63, exhibit 3-1), and prepare a brief situational and strategic analysis. SWOT analysis can be used to do this. Also, go to the web site of Jet Blue to obtain current information. (10) 7. Can a values-based corporate culture develop when top executives do not see each other on a frequent (everyday) basis? Why or why not? (see pages 68-81 of text). 13 MANA 5340 ORGANIZATIONAL TRANSFORMATION IN A TAIWANESE COMPANY Briefing/Assignment Sheet (or questions to organize and guide discussion) This case provides a context in which to examine the shift from the HR function being mostly administrative in nature to a business function that is significantly more strategic. It is also a situation that has individual career implications and presents aspects of resistance to change. The following questions can direct your analysis of the situation and can stimulate class discussion. (25) 1. Do you agree with Eva’s stated five-year objective to make the HR department spend 50 percent of the time on administration and 50 percent on strategy formulation and implementation? How would you evaluate her intended change in the role of the HR function? Review pages 157-173 of the Mello text, especially the role configuration model on page 159. (15) 2. What is your opinion of the various new HR systems and practices that Eva has developed and implemented? (15) 3. What actions did Eva take to make the introduction of change more acceptable to managers and employees of the YUAN Group? Could she have done anything further, or differently? (15) 4. What can Eva do to make other managers more aware of the growing global competition and to prepare them to face international competition in the domestic markets? (20) 5. How can Eva change the corporate culture from command-control to customer-driven? (10) 6. What should Eva do now? How should she answer the questions she is considering at the end of the case? 14 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: (10) 1. What is the Portman business model and what was the personal valet arrangement trying to accomplish? (30) 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? (10) 3. Why isn’t the system working, and what are the problems? (15) 4. How did the 5-Star system deal with the problems? Did it work, or were improvements experienced following implementation of 5-Star? (20) 5. What are various options for system improvement and what steps (implementation) would you take to bring about improvement? (15) 6. Analyze the personal valet position using the Hackman/Oldham job characteristics model. See page 255 of the Mello text. 15 MANA 5340 JINDI ENTERPRISES: FINDING A NEW SALES MANAGER Briefing/Assignment Sheet (Or questions to organize and guide discussion) This case involves the selection of a new sales manager; four candidates are being considered by Ma Pui, the chief executive officer of Jindi. The selection decision becomes complicated not only by the job requirements and applicant qualifications, but also because of the potential changes in the firm’s business model and basic corporate strategy. An important aspect of this case analysis and discussion focuses on the connection, or relationship, between corporate strategy and employee selection criteria. More specifically: (20) 1. What is Jindi’s business model and/or what are the drivers for success in the two product markets (residential and industrial) under consideration? (10) 2. What are the essential aspects of the sales management process at Jindi? (15) 3. Given the Chinese business/sales culture, what sales representative characteristics and behaviors has Jindi valued? (15) 4. What changes do you recommend in the sales management position given the current focus on the residential market and potential future focus on the industrial market? (25) 5. Identify and list the strengths and weaknesses of each of the four candidates. Which one do you recommend be hired? (15) 6. What are some of the ideal (of preferred) sales representative traits and behaviors for the three customer markets: (a) industrial only, (b) residential only, and (c) both residential and industrial? 16 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: (10) 1. What are the basic characteristics or key principles of the Ritz-Carlton business model? (10) 2. What is the essence of the Ritz-Carlton experience? What is the Ritz-Carlton selling? (20) 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? Review pages 401-442 of Mello for information about how training and development can help a firm gain a competitive advantage. (20) 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? (20) 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? (20) 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? 17 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: (15) 1. How would you describe the Cypress business model and the firm’s and strategies? How did the business model change in the early 1990s? (10) 2. What are the values that T.J. Rogers has imprinted on the organization? How would you characterize his leadership style and behavior? (10) 3. Are the vision, core values, and systems congruent with success? (20) 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? (10) 5. Could Cypress adopt a 360° performance management and feedback system? Why or why not? Review pages 463-471 of the Mello text for information about 360° systems. (15) 6. Do the HR systems/practices fit the culture of Cypress and the employee performance expectations of Rogers? Explain. (20) 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? 18 MANA 5340 MORGAN STANLEY: BECOMING A “ONE-FIRM FIRM” AND THE FIRMWIDE 360° PERFORMANCE EVALUATION PROCESS AT MORGAN STANLEY Briefing/Assignment Sheet (or questions to organize and guide discussion) Together these two cases track various changes initiated by John Mack to transform the culture and performance evaluation system in Morgan Stanley. Read Morgan Stanley: Becoming a ‘One-Firm’ firm first and then read The Firmwide 360° Performance Evaluation Process at Morgan Stanley. (10) 1. What are the challenges facing Morgan Stanley as John Mack assumes a leadership role? (15) 2. Assess John Mack’s vision for Morgan Stanley. What are the key elements? How different is it from the way the firm has historically operated? (10) 3. How effective has John Mack been as a leader of the change initiative? What are his strengths? (15) 4. Evaluate the change strategy and steps taken to date. How effective have they been? What else must be done to ensure a successful transformation? (20) 5. A key component of the change initiative is revamping the performance appraisal system. What were the problems with the existing system? What are the goals of the new system? To what extent is the new performance appraisal system aligned with the vision and strategy? Review chapter 10 for details of a performance management and evaluation system. (10) 6. What is your assessment of the new performance evaluation process at Morgan Stanley? (10) 7. In what ways will it enhance or detract from the firm’s strategic objectives? (10) 8. Does it meet the objectives and expectations specified by the design task force? 19 MANA 5340 FIVE STAR BEER – PAY FOR PERFORMANCE Briefing/Assignment Sheet (or questions to organize and guide discussion) Like other cases assigned for this course, Five Star focuses on change for performance improvement. More specifically, this case is concerned with the linkage between compensation practices and performance improvements for enhancing profitability. (25) 1. Assess the organizational design of Five Star. In developing your assessment, consider the strategic, structural, human resource and tasks elements at play, particularly as they relate to Zhao’s performance-based compensation systems. (25) 2. Analyze Zhao’s “bonus” compensation systems in detail. What likely impact will these systems have on quality at Five Star? What impact will they have on the sales force? (20) 3. As Tom McMullen, what suggestions would you give Mr. Zhao on how to improve these systems? What organization design changes can realistically be made that will enhance quality and promote the acceptance of the systems? How would you implement these changes? (15) 4. As an outside consultant to McMullen and Zhao, what would you recommend they do to change Five Star’s culture from a “volume culture” to a “quality and profitability culture”? (15) 5. How does the concept of “equity” enter into performance-based compensation at Five Star? Review chapter 11 for a detailed presentation of equity. 20 MANAGEMENT 5340 HUMAN RESOURCES at the AES CORPORATION Briefing/ Assignment Sheet (or questions to organize and guide discussion) AES is an extremely interesting company in terms of its culture and management of human resources, although AES corporate leaders do not like to use the term human resources. At the time the case was written, the firm had experienced considerable growth and its prospects for future growth through internal means and acquisitions was very positive. The corporate founders and top executives claim the firm has no HR department and that this is a strength. The following questions address this claim. (10) 1. What is the business model of AES and/or what is its core corporate strategy? (30) 2. AES has no formal HR department and appears not to have any formal HR policies, programs, and practices. However, the HR function does exist and HR tasks, activities, and decisions are performed/ made. Using the HR value chain as a means for examining the HR management process (a) identify who performs each HR task/activity/decision; (b)explain how each HR task/activity/ decision is performed/accomplished; and (c) indicate the result of each HR task/ activity/decision. Early in your response, articulate the firm’s HR philosophy and basic HR strategy. (30) 3. AES has power plants and distribution systems in 16 countries. At the time the case was prepared AES did operate a plant in China. Given the existence, or lack thereof, of a HR function in AES as described in the case, can AES operate in China as it has in other countries? Take each aspect of the HR management process/value chain and indicate whether the AES approach will work, explain why or why not. If you think something should be modified, explain your modification. (15) 4. AES has operations in many countries around the world and it follows/utilizes the same HR management process. Explain why and how a company could be successful doing this across so many different cultures and languages. (15) 5. AES has grown dramatically. Assume it will continue to grow, but probably at a somewhat slower pace. While most, if not all, metrics indicate the firm is effective in terms of HR management, efficiency (or scale economy) of HR programs, processes and practices may emerge as a significant issue in the future. What aspects of the HR management process/value chain could be targeted for developing more efficient processes/practices and how could things be changed to achieve increased efficiencies? Also, what argument(s) would you present to the founders and executives that these changes would be beneficial? 21 Academic Dishonesty All students are expected to pursue their academic careers with honesty and integrity. Academic dishonesty includes, but not limited to, cheating, plagiarism, and collusion on an examination or an assignment being offered for credit. Each student is accountable for work submitted for credit, including group projects. Students found responsible for dishonesty in their academic pursuits are subject to penalties that may range from disciplinary probation, suspension or expulsion from the University. 1. cheating on an examination or an assignment includes: a. copying the work of another, allowing someone to copy, engaging in written, oral or any other means of communication with another, or giving aid to or seeking aid from another when not permitted by the instructor; b. using material during an examination or when completing an assignment that is not authorized by the person giving the examination or making the work assignment, including, but not limited to, electronic or digital devices such as calculators, cell phones, camera phones, scanner pens, palms, or flash drives, etc.; c. taking or attempting to take an examination for another, or allowing another to take or attempt to take an examination for a student; d. using, obtaining, or attempting to obtain by any means, the whole or any part of an examination or work assignment that is not provided for your use by your instructor; e. any act designed to give unfair advantage to a student or the attempt to commit such an act; 2. plagiarism means the unacknowledged incorporation of the work of another in work that is offered for credit; 3. collusion means the unauthorized collaboration with another in preparing work that is offered for credit; In accordance with the Rules and Regulations of the Board of Regents of The University of Texas System (Part One, Chapter VI), institutional procedures regarding allegations of academic dishonesty are outlined in Part Two, Chapter 2, of the U.T. Arlington Handbook of Operating Procedures. This information may be obtained by accessing the Dean of Students' Web site at www.uta.edu/studentaffairs/dos or the Student Judicial Affairs' Web site at www.uta.edu/studentaffairs/judicial affairs. Copies of each regulation can be obtained in the Dean of Students' Office on the lower level of the University Center. I have read and understand the above and I accept personal responsibility thereto. ___________________________________ Signature of Student _________________________ Date 22 Attendance Policy Due to the intensity and uniqueness of the EMBA program, perfect and punctual attendance are very crucial to students’ learning in the class. Students are expected to be present for all classes and no absence, for whatever reason, will be automatically excused. Missing merely a day in one of the courses of this program can be equated to missing at least a fourth of the class sessions in a regular long semester course. Therefore, the issue of absenteeism is taken very seriously. All instructors will specify grading policies and attendance in their course syllabi, which may include a grade penalty or removal of the student from the course for excessive absences. Reasons for absence due to illness and other circumstances must be communicated by the student to the instructor of the course. Any decision to allow make-up work will be made by each instructor in accordance with each instructor’s attendance policy. It is the student’s responsibility to be in his/her seat at class time to be counted present. Attendance will be taken at least two times each class day by the instructor or a local support person. Absences, other than those with prior approval, will be considered for denial or approval at the instructor’s discretion. If students know in advance that they will be missing any part of the class, they must contact the instructor or the local support staff immediately. If a student will be absent for: 1. More than 40% of the entire course, he/she will be required to re-take the ENTIRE course in the future. Any work accomplished prior to absenteeism will not be recorded or applied towards the future classes. 2. For absence less than or equal to 40% of the lecture time, it will be the instructors’ discretion to decide on what actions will be taken. The student is responsible for finding out from the instructor what penalty, if any, will be assessed for missing any portion of a class session. Students may receive a grade of “F” in the course if they are absent without an acceptable excuse for more than 40% of the entire course. I have read and understand the above and I accept personal responsibility thereto. ____________________________ Signature of Student Mana 5340 Shanghai\Syllabus Fall08 _________________________ Date 23