Chapter 15 Working in the HRM Field LEARNING OBJECTIVES After reading this chapter, students should be able to: • Explain the distinction between HRM generalists and specialists. • Describe career patterns within the HRM field. • Discuss the ethical responsibilities of HR professionals. • Explain how HR professionals can increase their sphere of influence within organizations. CHAPTER OUTLINE AND LECTURE 15-1 Employment in the HRM Field Career opportunities in the field are rapidly expanding as HR plays a greater role in an organization’s effectiveness. In this section we will examine entering the profession and jobs and careers in this field. 15-1a Career Options in HRM Prospective HR professionals can choose a career as either a generalist or specialist. HRM generalists perform virtually all facets of HRM, including such things as reference checks, employment interviews, explaining company benefits, negotiate the cost of an HRIS or insurance, clarify handbooks, answer employees’ questions, and many more functions. In small to medium firms, generalists perform basic functions and may hire outsiders to conduct in-depth studies or projects. Entry-level people earn an average of $37,000 annually and top corporate executive generalists earn $218,000. HRM specialists work for larger corporations in specialized areas focused on particular tasks. Examine Exhibit 15-1 for more details. Let students interview the HR professional where they work. Students can ask how the person got into the profession, what skills and knowledge were needed, what jobs in his or her career the current position might lead to, and what the likes and dislikes of the job are. 15-1b Career Entry and Growth About one third of HR professionals enter the field directly out of college. Most, however, enter through self-directed career changes transferring or moving up from other departments. The rest come from education, social services, accounting, sales, and administrative secretarial positions. According to Bruce Kaufman, companies look for candidates that possess: • Leadership and management skills. • Cross-functional HRM expertise. • Technological skills. • Knowledge of business basics and international HRM issues Larger organizations provide the greatest opportunities for HRM career growth. Most senior-level HR professionals take one of two paths up the corporate ladder, which are: • Some begin their careers as specialists and eventually become managers of their specialty units. To advance beyond this level, they must broaden their skills and become HRM generalists. • Some begin as an assistant HRM generalist at a small plant or unit within the organization and advance into an HRM managerial role at successively larger plants or units. Those who climb to VP of human resources must be especially skilled in: • Job performance and skills in specialty area. • Credibility with senior management and interpersonal skills. • Ability to manage people and to play politics. Professional growth requires specialized knowledge, long and intensive academic preparation, conforming to technical and ethical standards, being a member of professional associations, holding professional certification, and continuing education. Professionals may join the Society for Human Resource Management (SHRM) or become a professional in human resources (PHR), a senior professional in human resources (SPHR), or a global professional in human resources (GPHR). Continual education may be obtained at professional conferences, seminars and training courses, or by undertaking advanced academic degrees, and reading articles in professional journals. Assign students to search the Internet for jobs in the HR field. Check the requirements the companies are looking for, the top three jobs they would be interested in, where they are, and how much they pay. Compare and contrast these reports with the text. Generate a general discussion. 15-2 Major Challenges Facing Today’s HR Professional The major challenges that HR professionals face today include helping to enhance competitive advantage, ensuring that employees are treated ethically, and ensuring that their own talents are appropriately utilized by their companies. 15-2a Organizational Ethics Related to HRM Despite the laws that exist for treating employees fairly, abuse or ignorance still persists. Exhibit 15-4 provides numerous examples of unethical behavior in the workplace. The majority of them include managerial decisions regarding employment, promotion, pay, and discipline based on favoritism, rather than ability or job performance. HR professionals play four roles in the area of workplace ethics: • Monitor the actions of organizational members (including themselves) to see that everyone is treated fairly and legally. • Investigate complaints bearing on ethical issues. • Serve as company spokespeople by defending the company’s actions when confronted by a regulatory agency or the media. • Offer ethics training for all employees to help them understand how to behave properly when faced with ethically “murky” situations. In addition, HR professionals should be guided by the SHRM code of ethics. Ask students to mentally assume the role of HR professional in their current or past job. What ethical dilemmas can they remember the HR person faced. How did these people deal with the problems? How would the student have handled it differently? What additional ethical, moral, or legal considerations might students take to guide organizational ethics? 15-2b Organizational Utilization of HR Professionals HR professionals should strive to see that their organizations appropriately use their talents. Contemporary management views hold that HR people are not as valuable as innovative technologies and business strategies. HR’s failure to earn credibility with upper management has created two specific problems for HR professionals: • Upper-level managers often reject their advice and do not select HRM’s best practices. • HR professionals are rarely asked for their advice on broader management issues. HR professionals can show upper management that four practices will help earn higher profits, profit growth, and overall performance. They are: (1) monitor the effectiveness of recruiting sources, (2) validate selection practices, (3) conduct structured employment interviews, and (4) use cognitive ability tests and biographical inventories when selecting candidates for most jobs. Another study found that improving training and performance appraisal improved the bottom line. Since many companies do not practice these, the HR professionals must convince upper management to take a look at them and give them a try. The failure to universally adopt many of HRM’s best practices can be attributed to the following three factors: • Too much resistance to change on the part of all responsible parties • Ignorance on the part of decision makers • Political considerations get in the way The HRM department often becomes frustrated when the organization does not take full advantage of its HRM practices. Upper managers often do not see the connection between HR practices and competitive advantage. To overcome this problem, HR must demonstrate the bottom-line implications of each HRM practice. A good way to do this is to link traditional HRM practices, such as training, compensation, and selection, to tangible business goals. It is suggested that managers use Wayne Cascio’s book to determine the return on investment that can be attributed to various HRM practices. Locate Wayne Cascio’s book and assign half of the class three best HRM practices. Assign the other half of the class a different three best practices. Ask them to apply Mr. Cascio’s calculations to determine bottom line dollar improvements. Make up some figures if necessary, such as annual sales, operating expenses, net profit, percentage of profit, etc. 15-2c Increasing the HR Professional’s Sphere of Influence In a recent survey of more than 200 HR professionals, 58 percent do not consider themselves full-fledged participants in the firm’s executive decisions. To ensure that companies use their skills more fully, HR professionals must increase their sphere of influence within their organizations. Their role should be one of a full business partner or a member of the general management team. HR professionals can increase their sphere of influence within an organization by: • Acquiring new skills such as organizational design, international management, organizational reengineering, performance management, HR information systems, and change assessment. They need to understand the business complexities of the company and operate within that mind-set in the areas of strategic planning, finance, and business management. • Gaining credibility with line managers and employees is also important. HR professionals should seek input from these two groups, build rapport and mutual respect, and perhaps form an interdisciplinary team to gain competitive advantage. • Gaining credibility with upper management and board members will capture the important decision makers’ attention. Now the HRM department can provide input that can favorably impact business operations and the bottom line. They are now in a position to address the firm’s strategic plan. Divide the class into teams of four students each. Tell them to study the three items above and rank them in their order of importance in increasing the HRM sphere of influence within the organization. Have them explain their reasons for the ranking and cite some examples to support their positions. KEY TERMS Certification: A designation indicating that an individual has demonstrated a mastery of a defined body of knowledge required for success in a field. HRM generalists: HR professionals whose jobs require them to perform virtually all facets of HRM work. HRM specialists: HR professionals whose jobs require them to perform specialized HRM tasks. REVIEW QUESTIONS 1. Which of the following words would be most closely associated with the work of the HR generalist? a. management b. variety c. specialization d. redundancy Answer: b Rationale: HRM generalists perform virtually all facets of HRM. Entry-level HRM generalists positions are most often in small to midsized organizations that employ few HR professionals—one of two people who must “do it all.” 2. Most people enter the field of human resource management by a. completing an undergraduate degree in the field. b. completing an advanced degree in the field. c. entering an on-the-job training program. d. making a self-directed career change. Answer: d Rationale: People enter the HRM profession in a variety of ways. Most of today’s HR professionals enter the field through self-directed career changes. 3. Which of the following professional organizations is best known for representing the interests of the HRM generalist? a. Society for Human Resource Management (SHRM) b. International Society for Performance Improvement (ISPI) c. Academy of Human Resource Development (AHRD) d. Society for Industrial and Organizational Psychology (SIOP) Answer: a Rationale: The HRM field has quite a few professional organizations, the largest of which is the Society for Human Resource Management (SHRM). Primarily an HRM generalist organization, SHRM covers every aspect of HRM. 4. If an HRM professional is certified, this means that a. the individual has registered with the relevant state board and has permission to practice human resource management. b. the individual has at least a master’s degree in HRM or a related discipline. c. the individual belongs to the relevant professional associations. d. the individual has demonstrated a mastery of a defined body of knowledge. Answer: d Rationale: Certification represents a recognition that an individual had demonstrated a mastery of a defined body of knowledge required for success in a field. 5. Which of the following subjects is most often addressed in continuing education seminars for HR professionals? a. organizational development b. employee motivation c. job design d. interviewing Answer: d Rationale: The most frequently offered in-house training programs address interviewing, performance appraisal, employee discipline, recruitment and selection, and grievance handling. 6. Which of the following roles is not one played by the HR professional regarding workplace ethics? a. monitoring behavior for ethical violations b. investigating complaints bearing on ethical issues c. serving as company spokesperson to defend company actions d. acting as final arbiter of ethical disputes Answer: d Rationale: HR professionals play three roles in the area of workplace ethics. One is monitoring: They must observe the actions of organizational members to ensure that all individuals are treated fairly and legally. Second, HR professionals investigate complaints bearing on ethical issues. Third, HR professionals serve as company spokespeople by defending the company’s actions when confronted by a regulatory agency or the media. 7. Upper management often resists the introduction of HRM “best practices” because a. they have been relatively successful using old practices and see little need to change. b. there is little evidence that the new practices can improve the organization’s performance. c. they lack the in-house knowledge to implement such practices. d. the implementation of these practices requires the use of consultants, something most organizations cannot afford. Answer: a Rationale: Many companies recognize that some of their HRM practices are less than ideal, but hesitate to change them. Decision makers in these organizations often adopt the following attitude: “We’ve succeeded thus far with the old methods; it just isn’t worth the effort to change them.” 8. To increase their sphere of influence, HR professionals must a. increase their knowledge regarding the details of HRM “best practices.” b. shift from being specialists to becoming members of general management teams. c. develop new ways of explaining the behavioral implications of HRM “best practices.” d. insist on the same professional development opportunities as those provided to other functional areas. Answer: b Rationale: To be full business partners, HR professionals must shift from being the narrow specialists of the past to being members of general management teams. HR professionals must work side by side with managers as partners in handling all kinds of business activities, not just function-specific ones. 9. One of the best ways for HR professionals to gain credibility with line managers and employees is to a. provide them with a statistical evaluation of the effectiveness of HRM programs. b. solicit their opinions during the development of HRM programs. c. invite them to a series of miniseminars that explains each of the firm’s HRM programs. d. ensure that job openings in human resources are made known to them before being advertised to the general public. Answer: b Rationale: HRM professionals should solicit manager and employee input when they attempt to develop human resource programs. 10. To gain credibility with upper management and boards of directors, HR professionals should a. demonstrate how proposed HRM practices address the firm’s strategic plan. b. involve upper management and the board in the development of HRM programs. c. increase their knowledge of HRM “best practices.” d. take an antagonistic stance toward organized labor. Answer: a Rationale: HR professionals can gain credibility with these individuals by demonstrating how proposed HRM practices address the firm’s strategic plan. DISCUSSION QUESTIONS 1. In what ways does the job of HRM generalist differ from that of HRM specialist? • HRM generalists perform virtually all facets of HRM. Entry-level HRM generalist positions are most often found in small to mid-sized organizations that employ few HR professionals-one of two people who must “do it all.” Because of their many responsibilities, HRM generalists have neither time nor resources to conduct in-depth studies or projects. They usually hire outside consultants who specialize in these kinds of services. • In larger organizations, each HR professional’s area tends to be more focused, zeroing in on particular HRM tasks. Individuals holding these positions are called HRM specialists. Some traditional and newer specialty areas include: ○ Compensation manager ○ Benefits manager ○ Employee relations manager ○ Training manager ○ Organization development manager ○ Labor relations manager 2. Describe two ways of entering the HRM profession. • Most of today’s HR professionals enter the field through self-directed career changes. Approximately one-third of these individuals entered HRM by transferring from another part of the company; the remainder entered from other fields such as education, social services, accounting, sales, and administrative secretarial positions. • HR professionals entering the field directly out of college (about one-third of all HR professionals) traditionally come from a variety of academic backgrounds, such as business, psychology, and liberal arts. More recently, however, HRM new hires have earned degrees in some area of business, such as HRM, management, or general business. 3. Describe the various ways in which HR personnel can enhance his or her professionalism. • Professional Associations ○ The HRM field has quite a few professional organizations, the largest of which is the Society of Human Recourse Management (SHRM), primarily an HRM generalist organization. ○ Several other professional HRM associations focus on particular specialty areas within the field. Among them are the American Society for Training and Development, the International Personnel Management Association, the American Compensation Association, the Personnel Testing Council, the Society for Industrial and Organizational Psychology, and the Academy of Management. • Professional Certification ○ Individuals can enhance their professionalism by becoming certified. Certification represents a recognition that an individual has demonstrated a mastery of a defined body of knowledge required for success in a field. • Continuing Education ○ To keep current in this rapidly changing field, HR professionals must continually update and expand their knowledge of HRM. They may need to attend conferences sponsored by professionals associations, take courses within and outside the company, participate in degree programs, and read professionals journals. 4. What is the primary difference between practitioner-oriented and research-oriented journals? • Practitioner-oriented or trade journals contain articles dealing primarily with new ideas, practices, and solutions to specific problems in the field. • Articles presented in research-oriented or academic journals focus on applied HRM research and on theory development/testing. 5. Why do so many companies fail to utilize the best HRM practices? What can HR professionals do to rectify this problem? • The failure to universally adopt many of HRM’s best practices can be attributed to the following three factors: ○ Resistance to change • Many companies recognize that some of their HRM practices are less than ideal, but hesitate to change them. Decision makers in these organizations often adopt the following attitude: “We’ve succeeded thus far with the old methods; it just isn’t worth the effort to change them.” ○ Ignorance on the part of decision makers • Senior-level managers who approve new HRM practices are often unfamiliar with the technical nuances of these practices and thus unable to determine which ones are best. ○ Political considerations • A variety of interest groups often object to new and potentially effective HRM practices because they have a vested interest in the old approaches. ○ HR professionals must demonstrate the bottom-line implications of each HRM practice. This aim can be accomplished by linking traditional HRM practices, such as training, compensation, and selection, to tangible business goals. 6. What roles do HR professionals play in the area of organizational ethics? • HR professionals play three roles in the area of workplace ethics. ○ Monitoring: They must observe the actions of organizational members to ensure that all individuals are treated fairly and legally. ○ HR professionals investigate complaints bearing on ethical issues, such as sexual harassment or violations of employees’ privacy rights. ○ HR professionals serve as company spokespeople by defending the company’s actions when confronted by a regulatory agency or the media. 7. The text states that HR professionals can no longer rely solely on their HRM expertise. Explain. • To ensure that companies use their skills more fully, HR professionals must dramatically increase their sphere of influence within their organizations. Their role should be one of a full business partner. • To be full business partners, HR professionals must shift from being the narrow specialists of the past to being members of general management teams. HR professionals must work side by side with managers as partners in handling all kinds of business activities, not just function-specific ones. CRITICAL THINKING EXERCISES 1. Let students interview the HR professional where they work. Students can ask how the person got into the profession, what skills and knowledge were needed, what jobs in his or her career the current position might lead to, and what the likes and dislikes of the job are. 2. Assign students to search the Internet for jobs in the HR field. Check the requirements the companies are looking for, the top three jobs they would be interested in, where they are, and how much they pay. Compare and contrast these reports with the text. Generate a general discussion. 3. Ask students to mentally assume the role of the HR professional in their current or past job. What ethical dilemmas can they remember the HR person faced? How did these people deal with the problems? How would the student have handled it differently? What additional ethical, moral, or legal considerations might students take to guide organizational ethics? 4. Locate Wayne Cascio’s book and assign half of the class three best HRM practices. Assign the other half of the class a different three best practices. Ask them to apply Mr. Cascio’s calculations to determine bottom line dollar improvements. Make up some figures if necessary, such as annual sales, operating expenses, net profit, percentage of profit, etc. 5. Divide the class into teams of four students each. Tell them to study the three roles as discussed on page 15-4 and rank them in order of importance in increasing the HRM sphere of influence within the organization. Have them explain their reasons for the ranking and cite some examples to support their positions. ESSAY QUESTIONS 1. Compile a report giving all the major ways an HR professional can help the organizational team gain a greater competitive edge, including the best practices and using his or her complete input on the strategic management team. Enhancing Competitive Edge through HR Practices Key Contributions of HR Professionals: 1. Talent Acquisition • Use data-driven recruitment and enhance employer branding. 2. Employee Development • Offer continuous learning and mentorship programs. 3. Performance Management • Shift to continuous feedback and set measurable goals. 4. Culture and Engagement • Foster inclusivity, conduct engagement surveys, and promote well-being. 5. Succession Planning • Identify key roles and develop high-potential leaders. 6. Workforce Planning • Analyze data for future workforce needs and align with business goals. 7. Compliance and Risk Management • Ensure legal adherence and implement strong HR policies. 8. Diversity, Equity, and Inclusion • Establish DEI initiatives and provide bias training. Conclusion By leveraging these strategies, HR professionals can align human capital with organizational goals, driving a significant competitive advantage. 2. Compare and contrast HRM generalists and specialists. Comparison of HRM Generalists and Specialists HRM Generalists: Scope of Work: • Broad knowledge across all HR functions (recruitment, training, employee relations, compliance). Flexibility: • Adaptable to various HR roles and tasks as needed. Team Interaction: • Often work closely with different departments, providing a holistic view of HR. Focus: • Emphasizes overall organizational strategy and culture. HRM Specialists: Scope of Work: • In-depth expertise in a specific HR area (e.g., compensation, benefits, talent acquisition). Depth of Knowledge: • Strong technical skills and detailed understanding of specialized functions. Team Interaction: • Often work independently or within a focused team, collaborating with generalists for broader strategies. Focus: • Concentrates on optimizing a specific HR function for effectiveness. Summary HRM generalists offer a versatile approach to managing diverse HR needs, while specialists provide targeted expertise that enhances specific HR functions. Both roles are essential for effective HR management and organizational success. 3. Comment on HRM career entry, progression, growth, professional associations and certification, and continuing education. HRM Career Overview Career Entry: • Education: Usually requires a bachelor’s degree in HR or business. • Internships: Important for gaining experience and networking. Career Progression: • Entry-Level: HR assistant or coordinator roles. • Mid-Level: Advancement to HR manager or specialist. • Executive: Potential to become HR director or CHRO. Growth: • Job Market: Strong demand for HR professionals. • Skill Development: Ongoing learning in areas like technology and compliance. Professional Associations: • Benefits: Networking, resources, and industry updates through organizations like SHRM or HRCI. Certification: • Importance: Credentials like PHR or SHRM-CP enhance credibility. • Requirements: Involve exams and relevant experience. Continuing Education: • Lifelong Learning: Essential for staying current with HR trends. • Training: Workshops and online courses for skill maintenance. Summary HRM careers offer diverse opportunities for entry, progression, and growth, supported by professional associations, certifications, and continuing education. 4. Explain the major ethical issues facing HRM professionals today. Major Ethical Issues Facing HRM Professionals 1. Diversity and Inclusion: • Ensuring fair hiring practices and fostering an inclusive workplace without bias. 2. Employee Privacy: • Balancing organizational needs with respect for employee confidentiality in data handling. 3. Fair Compensation: • Addressing wage disparities and ensuring equitable pay for all employees. 4. Workplace Harassment: • Creating a safe environment by addressing and preventing harassment and discrimination. 5. Recruitment Practices: • Maintaining transparency in hiring processes and avoiding favoritism or discrimination. 6. Employee Misclassification: • Properly classifying workers as employees or contractors to uphold labor rights. 7. Work-Life Balance: • Promoting policies that support employee well-being while meeting business demands. 8. Compliance with Laws: • Adhering to labor laws and regulations while maintaining ethical standards. Summary HRM professionals face critical ethical challenges, including diversity, privacy, compensation equity, workplace safety, and compliance, all of which require careful navigation to uphold integrity and trust within the organization. 5. How can HR professionals gain support for using the best HRM practices? Gaining Support for Best HRM Practices 1. Demonstrate Value: Present data showing positive impacts on productivity and retention. 2. Engage Leadership: Involve senior management to align HR initiatives with business goals. 3. Build Relationships: Collaborate with department heads to tailor HR practices. 4. Communicate Effectively: Clearly explain the benefits of HR practices to employees. 5. Involve Employees: Gather input through surveys to ensure practices meet their needs. 6. Provide Training: Educate staff and managers on new HR initiatives. 7. Show Quick Wins: Implement pilot programs to demonstrate effectiveness quickly. Summary By showcasing value and engaging stakeholders, HR professionals can effectively gain support for best practices. 6. Why are the best HRM practices not chosen by so many firms? Reasons Best HRM Practices Are Not Adopted 1. Cost Concerns: Many firms perceive implementing best practices as expensive and may have budget constraints. 2. Resistance to Change: Organizational culture and employee resistance can hinder the adoption of new practices. 3. Lack of Knowledge: Some HR teams may not be aware of best practices or how to implement them effectively. 4. Short-Term Focus: Companies often prioritize immediate results over long-term HR investments. 5. Limited Resources: Smaller firms may lack the personnel or expertise to implement comprehensive HRM practices. 6. Inadequate Leadership Support: Without strong backing from leadership, HR initiatives may struggle to gain traction. 7. Misalignment with Business Goals: Best practices may not seem relevant or applicable to a firm’s specific context or objectives. Summary Firms may not choose best HRM practices due to cost, resistance to change, lack of knowledge, short-term focus, limited resources, inadequate leadership support, and misalignment with business goals. 7. Provide an explanation of how the HR professional can increase his or her sphere of influence in the organization. Why is this so important? Increasing Sphere of Influence for HR Professionals 1. Build Relationships: • Foster strong connections with leadership and colleagues across departments to gain trust and support. 2. Demonstrate Value: • Showcase the impact of HR initiatives on business outcomes through data and metrics. 3. Participate in Strategic Planning: • Involve HR in organizational strategy discussions to align HR goals with business objectives. 4. Communicate Effectively: • Use clear and persuasive communication to advocate for HR initiatives and their benefits. 5. Enhance Expertise: • Pursue continuous learning and certifications to position oneself as a knowledgeable resource. 6. Lead Change Initiatives: • Take the lead on projects that drive organizational improvements, demonstrating HR's strategic role. 7. Engage Employees: • Create programs that actively involve employees, showing HR’s commitment to their needs and concerns. Importance Increasing influence is crucial for HR professionals to ensure that HR practices are prioritized and integrated into the overall business strategy, ultimately enhancing organizational effectiveness and fostering a positive workplace culture. OTHER RESOURCES I. Websites www.auxillium.com/contents.shtml. The HR Manager: A comprehensive online reference guide for HRMs and valuable HR links. II. Articles “Fast Forward: 25 Trends That Will Change the Way You Do Business,” Workforce Magazine, May 29, 2003. The end of HR as we know it today ten years from now. Solution Manual for Human Resource Management: A Managerial Tool for Competitive Advantage Lawrence S. Kleiman 9781426649189
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