Structure of HR Function Flashcards
Strategic Role of HR
HR processes and activities must be aligned with the orgz overall strategy and business partners’ need to create a stronger and more strategically focused orgz
- Participation in creating the orgz strategy
- Aligning the HR strategy with the orgz strategy
- Supporting other functions in their strategic roles
Administrative Role of HR
- Using technology to capture and analayze data
- Using technology to reduce transactional time
- Focusing on core capabilities (outsource non core HR functions like payroll, benefits, background checks)
Operational Role of HR
- Knowledge management (wisdom & experience)
- Targeted talent acquisition & development
- Incentive systems
- Employee engagement programs
Developing an HR Service Culture (S’s)
- Strategy: how HR will create value for the orgz
- Shared values: A commitment to service is communicated
- Structure: how HR can be more efficient/innovative
- Systems: tools, policies, processes to implement
- Staff: what performance will be rewarded
- Skills: what capabilities are needed
- Style of leadership: model the actions and values
Service Level Agreement (SLA)
the output customers can expect–for example, the services HR will provide a function, the normal time frames for results, or HR responsiveness to customer queries and complaints
Orgz Core Functions
HR, Finance/Accounting, Marketing/Sales, R&D, Operations, IT
Executive Management
AKA C suite. They are responsible for all of the core business functions and their effect on the orgz performance.
They:
- Develop and communicate strategy
- Monitor and control implementatio of strategic activities through control of financial resources
- The primary interface with the orgz stakeholders
- Lead the orgz through a shared vision
How HR interacts w Exec Team: contribute to the development of orgz strategy.
Finance and Accounting Functions
Both reflect an interest in an orgz financial performance.
They:
- Support operations and strategic initiatives through the creation of operating budgets
- Manage the orgz treasury through short and long term investments
- Track revenue & expenses
How HR interacts: depends on finance and accounting for everything it does or would like to do (budgets)
Marketing and Sales Functions
This part of the orgz brings in revenue. Described as the 4 P’s: price, place, promotion, product.
They:
- have a ‘push’ strategy: focus on getting product in front of customers
- have a ‘pull’ strategy: attract customers to the product
How HR interacts: HR can ensure that its activities are aligned with the identity that marketing is creating and use this brand identitiy to attract future EEs.
R&D Function
R&D or new product design and development is responsible for future revenue.
How HR interacts: HR can protect the orgz investment in R&D by ensuring that contracts protect intellectual property rights.
Operations Function
This part of the orgz develops, produces, and delivers products and services to customers.
They:
-Ops is almost always concerned with efficient use of resources, but issues of quality, enironmental impact, and worker health and safety are also important.
How HR interacts: analyze historical data and predict and creatively manage gaps in resources. this includes: hiring, downsizing, implementing union contracts, managing grievances, discipline, performance issues.
IT Function
IT manages the storage, access, exchange, and analysis of information across the enterprise through hardware and software systems.
They:
- support integration of data from differnt orgz processes through an entrprise resource planning (ERP) system.
- charged with maintaining the security and reliability of the orgz data
How HR interacts: HR can assist IT by providing a good pipeline of qualified EES. HR can develop and communicate technology policies.
HR Team Members
- Leaders: senior leadership role, they report to CEO or COO
- Managers: responsible for units within the HR Function, such as EE relations, TA, orgz development
- Specialist: have expertise in specific areas such as compensation, talent mgmt, metrics, IT
- Generalist: familiar with all of HRs varied services, they have expertise in one or more specialty areas of HR
- HR business partner: are more experienced generalists who are assigned to represent HR services directly to other business functions, they use a deeper understanding of the business
HR Structural Alternatives ‘Centralized’
All HR personnel located within HR department; delivers services to entire orgz
*Control and consistency accross the orgz
HR Structural Alternatives ‘De-centralized’
HR staff within each function, business unit, or location carrying out required activities
*More direct contact
HR Structural Alternatives ‘Functional’
Headquarters HR is staffed with specialists who craft policies.
HR Generalists who may be located within divisions or other locales, implement these policies, adapt them as needed, and interact with EEs
HR Structural Alternatives ‘Dedicated’
HR function at HQ and separate HR functions located in separate BUs
Corp HR will put out tools and local HR will look at local practices
HR Structural Alternatives ‘Shared Services’
Centers w/ specific areas of expertise develop HR policies in those areas and then deliver the service to all units
Each business unit can supplement its resources by selecting what it needs from a menu of shared HR services that the units agree to share
Center of Excellence COE
COEs aim at leveraging strategic expertise in the orgz to foster growth and continuous improvement. COEs can be located in a certain facility but can also be virtual
Third-Party Contactors (outsourcing v cosourcing)
Outsourcing: a third party vendor provides selected activities (hands off–think example payroll)
Cosourcing: a third party provides dedicated services to HR, often locating contractors within HRs orgz (working in ur office–think example recruiting)
The Outsourcing Process
Includes 9 steps:
- Analyze needs and define goals
- Define the budget
- Create a request for proposal (RFP)
- Send RFPs to the chosen contactors
- Evaluate contractor proposals
- Choose a contractor
- Negotiate contract
- Implement the project and monitor the schedule
- Evaluate the project
Importance of Measuring HR Performance
- Reinforcing HRs role in strategic development by measuring the effectiveness of HR strategies and senior mgmt’s implementation of those strategies
- Identifying opportunities for redirection and improvement through periodic measurement of progress on strategic objectives
- Strengthening HRs relationship with internal business partners
- Supporting future investment in HR programs
Creating an HR Balanced Scorecard
Balanced Scorecards provide overall picture of an orgz performance.
Balance Scorecards help support a clear line of sight from strategic goals to strategic performance.
4 Perspectives:
-Customers, Financial, Learning & Growth, Interanl Business Processes
Sample HR Metrics
Absence Rate: to reflect benefits of a change in workplace conditions
Accruals: to monitor expense accruals and make sure that assignment budget and financial goals are met
Applicant yield ratio: to demonstrate effectivness of recruiting methods
Cost per hire: to demonstrate increased efficiencies in recruitment and hiring process
Human Capital ROI: to demostrate value of HR programs
Human capital value added: used comparatively to indicate increase in employee productivity as the result of HR activities
Key talent retention: to demonstrate effectiveness of EE development and reward strategies
Promotion pattern: to demonstrate effectiveness of development programs and strong culture
Success ratio: to indicate effectiveness of recruiting, selection, and orientation methods
Training ROI: to demonstrate value of strategic choice to invest in training
Transfer: to track internal competency development and global talent mgmt.
Turnover cost/Turnover cost: when turnover rate is combined with costs of turnover, to demonstrate economic benefits of a change in pay or benefits
Vacancy costs: to support decision to outsource function and decrease internal headcount
HR Staff per FT EE AND Customer Satisfaction
HR Audit
In an HR audit, an orgz HR policies, practices, procedures, and strategies undergo a systematic and comprehensive evaluation to establish whether specific HR practices are adequate to achieve goals.
- Compliance: how well an orgz is complying with current laws and regulations
- Best Practices: helps the orgz maintain or improve a competitive advantage by comparing its practices to those of employers identified as having exceptional practices
- Strategic: focuses on the strengths and weaknesses of systems and processes to determine whether they align with the HR departmental strategic plan
- Funciton specific: focuses on a specified area in the HR function (payroll, performance mgmt, record retention)
The Audit Process
- Determine the scope and type of audit
- Develop the audit questionnaire
- Collect the data
- Benchmark the findings
- Provide feedback about results
- Develop action plans
- Foster a climate of continuous improvement
HR Balanced Scorecard is Truly Effective When?
- Contains accountability and measurable results
- Be valid, have understandable measures/metrics aligned to the objective and can be supported w data
- Contain only measurements important to the objective and orgz strategic plan
- Focus on results
- Be carefully planned and executed
