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MGMT345.555: Spring 2021 Principles of Supervision and Leadership Hi Folks, Create a 3-column grid for each part that’s been highlighted with a green color: Column 1- Key concepts you select (separate them and their comments so that they show individually, across the page) Column 2- Key thoughts about the concepts chosen. Column 3- Indicate how you would APPLY the concepts in a real decision situation, preferably, an organizational/ business situation. • • • • Select a minimum of 3 concepts from the 1st book for this course. (for this part, I’ve selected the concepts for you, find the attached file). Indicate the chapter and NUMBER each concept-- #1, #2, #3, #4, etc., as necessary. Select a 10 SIGNIFICANT! concepts from the 2nd book. YOU make a managerial judgment of WHAT MAKES A CONCEPT SIGNIFICANT. Hint: consider this through the prism of LEADERSHIP/ manager impact on outcomes. (I attached the 2nd book) Select at least 3 concepts from class discussions- same rules and approach as above. Here are the three concepts from class discussion: 1. Leadership 2. Emotional intelligence 3. Motivation Select at least 2 concepts from your own research - same rules and approach as above. Total of 57 concepts The key is showing you have learned and now know how to go from concept to application. **Keep it simple, but feel free to use bullet points for your comments. ** Metrics for Final Assignment: Quality of Selection- Reflects thought, judgment, and learning vs. “any old concepts”, e.g., the first 4 concepts in each chapter, the “easiest” to write up, etc. Maturity/sophistication of 2nd column comment vs. comments which do not reflect value and especially, your understanding. Applicability/usefulness of the concept to your 3rd column demonstration example. 1 2 1st part (The 3 concepts from each chapter of the 1st book) Total of 42 concepts Chapter 1: Introducing Leadership and Beginning to Form Your Personal Leadership Model - Personal leadership (Page 7) - Leadership is Collaboration (Page 7) - methods of framing leadership (page 7) Chapter 2: Ethical Leadership - Ethical Leadership (page 19) – Ethical culture (Page21) - Moral person (page 22) Chapter 3: Leadership in a Global and Multicultural Society - The multicultural leader (page 36)- Selective adoption (Page 40) – Multiculturalism (Page 40) Chapter 4: Evolution of Western Leadership - Scientific management (Page 62) – Discipline (63) – Operations management (Page 65) Chapter 5: Psychology I: Intelligence and Personality - Self-management (Page 92) – Interpersonal Intelligence (Page 88) – Social awareness (Page92) Chapter 6: Psychology II: Motivation and Communication - Achievement motivation (111) – Encoding (117) – Communication (117) Chapter 7: Management and Leadership - Supporting (137) – Green thumb leadership (138) – Managerial leadership (140) Chapter 8: Power and Leadership from the Top - Power and influences (152) – Social power (159) – Position power (157) Chapter 9: Teaming and Leadership - Multicultural teams (172) – Project team (177) High Preforming teams Chapter 10: Philosophy and Leadership - Virtual leadership (189) – Mentoring (192) – Empowering (192) Chapter 11: Leadership 2.0 (Virtual Leadership) - Self- interest (213) – Executive power (214) – Accountability (214) 1st part Chapter 12: Military Leadership - Military leadership (227) – Integrity (228) – Loyalty (228) Chapter 13: Leading for Environmental Sustainability - Environmental leader (242) – Collective responsibility (242) – Reputation (253) Chapter 14: Practicing Leadership: It’s Your Turn - Caring (266)– Optimistic (266) – Enthusiastic (266) Byars−Rue: Human Resource Management, Seventh Edition Front Matter Preface © The McGraw−Hill Companies, 2004 Preface The slowing economy of recent times has emphasized the importance for organizations to operate ef?ciently. Even more today than in the past, an organization’s ef?ciency is impacted by the effectiveness of its human resource management. The most effective and successful companies today ?nd ways to motivate, train, compensate, and challenge their employees. This is true for all companies, whether they are manufacturing or service companies, large or small, domestic or international. Since the publication of the sixth edition of Human Resource Management, the world has changed. The human resource components of most organizations have become more diverse and more sophisticated. In addition, other signi?cant changes continue to occur in the HRM area. Changing government and legal requirements, increased awareness for security issues, new information systems, downsizing, demands for a more skilled work force, and intensifying global competition are just a few of the factors that have contributed to the complexity of HRM issues for today’s companies. FEATURES OF THE BOOK • The seventh edition of Human Resource Management continues to present both the theoretical and practical aspects of HRM. The theoretical material is presented throughout the text and highlighted via a marginal glossary. Students are assisted in learning complex HRM terminology through these concise de?nitions placed in the margins. They provide a valuable study tool for students. The practical aspects of HRM are presented through lively and pedagogically effective examples woven throughout the text and end-of-chapter materials. • There are detailed learning objectives for each chapter. • Multiple “HRM in Action” boxes are included in each chapter and provide current examples that illustrate how actual organizations apply concepts presented in the chapters. • A key feature entitled “On the Job” appears after several chapters and offers practical examples in areas such as résumés and job descriptions. • The URLs for companies referenced in the text have been updated and expanded. • Video cases appear at the end of each section and focus on real companies and real situations. • End-of-chapter materials include these features: • The “Summary of Learning Objectives” is a synopsis and review of the key learning objectives within each chapter. • “Review Questions” provide an opportunity to review chapter concepts through questions developed to test students’ memory of key issues and concepts within the chapter. • “Discussion Questions” give students an opportunity to apply critical thinking skills to in-depth questions. • Two “Incidents” per chapter act as minicases students can use to analyze and dissect chapter concepts and applications via real-life scenarios. • “Exercises” can be done in class or as homework and are designed to illustrate major points made in the chapter. • “Notes and Additional Readings” provide references and more in-depth information on covered topics. THE TEACHING PACKAGE Each component of the teaching package has been carefully developed to assist both faculty and students in learning the important concepts and applications of HRM: • The Instructor’s Manual offers opportunities for classroom instruction, student participation, and assignments or research. Each chapter includes a chapter outline, presentation v Byars−Rue: Human Resource Management, Seventh Edition vi Front Matter © The McGraw−Hill Companies, 2004 Preface Preface • • • • suggestions, “HRM in Action” questions, and answers for the “Discussion Questions” and “Incident Solutions” that are included within the text. The “Test Bank” includes over 600 questions and consists of true/false, multiple choice, and short-answer questions. Brownstone Testing Software, available for Windows or Mac users, provides instructors with simple ways to write tests that can be administered on paper, over a campus network, or over the Internet. Videos are available for each section and provide an appropriate overview of the learned material. PP Presentation Software contains tables and ?gures from the text plus additional graphic material. ORGANIZATION OF THE SEVENTH EDITION The book’s content is arranged very similarly to that of the sixth edition with ?ve major sections. Part 1, “Introduction and Equal Employment Opportunity,” is designed to provide the student with the foundation necessary to embark on a study of the work of human resource management. This section also explores information technology for human resources and how the legal environment and the implementation of equal employment opportunity in?uence all areas of human resource management. Part 2, “Staf?ng the Organization,” discusses the topics of job analysis and design, human resource planning, recruitment, and selection. Part 3, “Training and Developing Employees,” describes orientation and employee training, management and organizational development, performance appraisal systems, and career planning. Part 4, “Compensating Employees,” presents an introductory chapter on organizational reward systems and has separate chapters describing base wage and salary systems, incentive pay systems, and employee bene?ts. Part 5, “Understanding Unions,” explores the legal environment and structure of unions, the collective bargaining process, employee relations, and employee health and safety. Elm Street Publishing Services, Inc., provided invaluable research assistance and organizational inputs for this edition. The following individuals provided valuable assistance through their detailed reviews. Reviewers for this edition: Previous Reviewers: Denise H. Barton Wake Technical Community College William Recker Northern Kentucky University Gary Hensel McHenry College Carla L. Dando Idaho State University R. K. Davis III University of Akron Michael P. Bochenek Elmhurst College Frederick J. Slack Indiana University Herschel L. Apfelberg California State Polytechnic University Bruce Cudney St. Anselm College Paul James Londrigan Mott Community College James G. Pesek Clarion University of Pennsylvania Fred Maidment Park College Glen Rouze Florida Southern College Cynthia A. M. Simerly Lakeland Community College James L. Sturrock East Texas Baptist University As with all previous editions, we solicit any ideas and inputs that readers may have concerning the book. Lloyd L. Byars Leslie W. Rue Byars−Rue: Human Resource Management, Seventh Edition Chapter I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 1 Human Resource Management: Present and Future Learning objectives After studying this chapter, you should be able to: 1. De?ne human resource management. 2. Describe the functions of human resource management. 3. Summarize the types of assistance provided by the human resource department. 4. Explain the desired relationship between human resource managers and operating managers. 5. Identify several challenges currently facing today’s human resource managers. 6. Outline several potential challenges and contributions presented by an increasingly diverse work force. 7. Discuss the role of human resource managers in the future. 8. Summarize several guidelines to follow when communicating human resource programs. 9. Explain, in general terms, how human resource managers can affect organizational performance. Byars−Rue: Human Resource Management, Seventh Edition Chapter outline I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Human Resource Functions Who Performs the Human Resource Functions? The Human Resource Department Challenges for Human Resource Managers Diversity in the Work Force Regulatory Changes Structural Changes to Organizations Technological and Managerial Changes within Organizations Human Resource Management Tomorrow Company Pro?ts and the Human Resource Manager Communicating Human Resource Programs Guidelines for Communicating Human Resource Programs Human Resource Management and Organizational Performance Summary of Learning Objectives Review Questions Discussion Questions Incident 1-1 Human Resource Management and Professionals Incident 1-2 Choosing a Major Exercise: Justifying the Human Resource Department Exercise: Test Your Knowledge of HR History Exercise: Are You Poised for Success? human resource management Activities designed to provide for and coordinate the human resources of an organization. human resource functions Tasks and duties human resource managers perform (e.g., determining the organization’s human resource needs; recruiting, selecting, developing, counseling, and rewarding employees; acting as liaison with unions and government organizations; and handling other matters of employee well-being). Notes and Additional Readings Human resource management (HRM) encompasses those activities designed to provide for and coordinate the human resources of an organization. The human resources (HR) of an organization represent one of its largest investments. In fact, government reports show that approximately 72 percent of national income is used to compensate employees.1 The value of an organization’s human resources frequently becomes evident when the organization is sold. Often the purchase price is greater than the total value of the physical and ?nancial assets. This difference, sometimes called goodwill, partially re?ects the value of an organization’s human resources. In addition to wages and salaries, organizations often make other sizable investments in their human resources. Recruiting, hiring, and training represent some of the more obvious examples. Human resource management is a modern term for what has traditionally been referred to as personnel administration or personnel management. However, some experts believe human resource management differs somewhat from traditional personnel management. They see personnel management as being much narrower and more clerically oriented than human resource management. For the purposes of this book, we will use only the term human resource management. Human Resource Functions Human resource functions refer to those tasks and duties performed in both large and small organizations to provide for and coordinate human resources. Human resource functions encompass a variety of activities that signi?cantly in?uence all areas of an organization. The Society for Human Resource Management (SHRM) has identi?ed six major functions of human resource management: Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 5 1. 2. 3. 4. 5. 6. Human resource planning, recruitment, and selection. Human resource development. Compensation and bene?ts. Safety and health. Employee and labor relations. Human resource research. Table 1.1 identi?es many of the activities that comprise each major human resource function. Ensuring that the organization ful?lls all of its equal employment opportunity and other government obligations is an activity that overlays all six of the major human resource functions. Figure 1.1 presents a slightly different breakdown of the human resource functions. This breakdown, called the Human Resource Wheel, was developed by the American Society for Training and Development as part of an effort to de?ne the ?eld of human resource management. In an attempt to cover each of the major areas of human resource management, this book contains ?ve major sections. Section 1 serves as an introduction and presents material that applies to all major human resource functions. It contains an introductory chapter, two chapters on equal employment opportunity, and one chapter on information technology for human resources. Section 2 explores those human resource functions speci?cally concerned with staf?ng the organization: job analysis and design and human resource planning, recruiting, TABLE 1.1 Activities of the Major Human Resource Functions Human Resource Planning, Recruitment, and Selection • Conducting job analyses to establish the speci?c requirements of individual jobs within the organization. • Forecasting the human resource requirements the organization needs to achieve its objectives. • Developing and implementing a plan to meet these requirements. • Recruiting the human resources the organization requires to achieve its objectives. • Selecting and hiring human resources to ?ll speci?c jobs within the organization. Human Resource Development • • • • • Orienting and training employees. Designing and implementing management and organizational development programs. Building effective teams within the organization structure. Designing systems for appraising the performance of individual employees. Assisting employees in developing career plans. Compensation and Bene?ts • Designing and implementing compensation and bene?t systems for all employees. • Ensuring that compensation and bene?ts are fair and consistent. Employee and Labor Relations • Serving as an intermediary between the organization and its union(s). • Designing discipline and grievance handling systems. Safety and Health • Designing and implementing programs to ensure employee health and safety. • Providing assistance to employees with personal problems that in?uence their work performance. Human Resource Research • Providing a human resource information base. • Designing and implementing employee communication systems. Byars−Rue: Human Resource Management, Seventh Edition 6 I. Introduction and Equal Employment Opportunity © The McGraw−Hill Companies, 2004 1. Human Resource Management: Present and Future Part One Introduction and Equal Employment Opportunity FIGURE 1.1 Human Resource Wheel Source: American Society for Training and Development. Copyright 1982, Training and Development Journal. Reprinted with permission. All rights reserved. Training & development Focus: Identifying, assessing, and–through planned learning– helping develop the key competencies (knowledge, skill, attitudes) that enable individuals to perform current or future jobs. Union/labor relations Focus: Assuring healthy union organization relationships. Employee assistance Focus: Providing personal problem-solving, counseling to individual employees. Organization development Focus: Assuring healthy inter- and intra-unit relationships and helping groups initiate and manage change. Organizations/job design Focus: Defining how tasks, authority, and systems will be organized and integrated Human resources across organizational units areas and in individual jobs. Improved/increased: • Quality of work life • Productivity Human resource • HR satisfaction planning • HR development Focus: Determining the • Readiness for change organization's major human resource needs, strategies, and philosophies. Compensation benefits Focus: Assuring compensation and benefits fairness and consistency. Personnel research & information systems Focus: Assuring a personnel information base. Selection & staffing Focus: Matching people and their career needs and capabilities with jobs and career paths. operating manager Person who manages people directly involved with the production of an organization’s products or services (e.g., production manager in a manufacturing plant, loan manager in a bank). and selecting. Section 3 concentrates on those functions related to training and developing employees, such as orientation and employee training, management and organization development, performance appraisal, and career planning. Section 4 covers all aspects of employee compensation: the organizational reward system, base wage and salary systems, incentive pay systems, and employee bene?ts. Section 5 deals with unions, the collective bargaining process, employee relations, and employee safety and health. Who Performs the Human Resource Functions? human resource generalist Person who devotes a majority of working time to human resource issues, but does not specialize in any speci?c areas. human resource specialist Person specially trained in one or more areas of human resource management (e.g., labor relations specialist, wage and salary specialist). Most managers are periodically involved to some extent in each of the major human resource functions. For example, at one time or another, almost all managers are involved in some aspect of employee recruiting, selecting, training, developing, compensation, team building, and evaluation. In small organizations, most human resource functions are performed by the owner or by operating managers. These managers perform the human resource functions in addition to their normal managerial activities. Many medium-size and even some large organizations use human resource generalists. A human resource generalist devotes a majority of his or her working time to human resource issues, but does not specialize in any speci?c areas of human resource management. Large organizations usually have a human resource department that is responsible for directing the human resource functions. In addition to one or more human resource generalists, such a department is normally staffed by one or more human resource specialists. These specialists are trained in one or more speci?c areas of human resource management. However, even in large organizations that have a human Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 7 TABLE 1.2 Examples of the Types of Assistance Provided by a Human Resource Department Speci?c Services Advice Coordination Maintaining employee records Handling initial phases of employee orientation Disciplinary matters Equal employment opportunity matters Performance appraisals Compensation matters resource department with many human resource generalists and specialists, most operating managers must regularly perform and be involved with many of the human resource functions. The Human Resource Department As mentioned previously, most medium-size and some large organizations use human resource generalists and do not have a human resource department. In these situations, the functions performed by human resource generalists are essentially the same as those that would be performed by a human resource department. Therefore, the following discussion also applies to the role of human resource generalists in organizations that do not have a human resource department. The primary function of a human resource department is to provide support to operating managers on all human resource matters. Thus, most human resource departments ful?ll a traditional staff role and act primarily in an advisory capacity. In addition to advising operating managers, a human resource department customarily organizes and coordinates hiring and training; maintains personnel records; acts as a liaison between management, labor, and government; and coordinates safety programs. Therefore, accomplishing the human resource goals of an organization requires close coordination between the human resource department and the operating managers. Precisely how all of the functions related to human resources are split between operating managers and the human resource department varies from organization to organization. For example, the human resource department in one company may do all of the hiring below a certain level. In another company, all the hiring decisions may be made by operating managers, with the human resource department acting only in an advisory capacity. It is helpful to view the human resource department as providing three types of assistance: (1)speci?c services, (2)advice, and (3)coordination. Table 1.2 presents some typical examples of each of these types of assistance. Figure 1.2 illustrates the different roles a human resource department or a human resource generalist might ?ll. As stated earlier, a human resource department normally acts in an advisory capacity and does not have authority over operating managers. As a result, con?ict can occur when operating managers appear to ignore the suggestions and recommendations of the human resource department. If the human resource department is to be effective, it must continually cultivate FIGURE 1.2 Three Types of Assistance Provided by a Human Resource Department Specific services Human resource department Advice Coordination Operating manager Byars−Rue: Human Resource Management, Seventh Edition 8 I. Introduction and Equal Employment Opportunity © The McGraw−Hill Companies, 2004 1. Human Resource Management: Present and Future Part One Introduction and Equal Employment Opportunity good relations with operating managers. Likewise, operating managers must understand the human resource functions to effectively utilize the human resource department. Challenges for Human Resource Managers Human resource management has expanded and moved beyond mere administration of the traditional activities of employment, labor relations, compensation, and bene?ts. Today HRM is much more integrated into both the management and the strategic planning process of the organization.2 One reason for this expanded role is that the organizational environment has become much more diverse and complex. Compared to a work force historically dominated by white males, today’s work force is very diverse and projected to become more so.3 Diversity in the work force encompasses many different dimensions, including sex, race, national origin, religion, age, and disability. Diversity in the workplace presents new and different challenges for all managers. Other challenges are the result of changes in government requirements, organization structures, technology, and management approaches. Each of these issues is discussed next. Diversity in the Work Force Recent forecasts by the U.S. Bureau of Labor Statistics project that the total U.S. labor force will consist of only 36.5 percent white, non-Hispanic males by the year 2010.4 Table 1.3 shows the projected numbers of entrants and leavers in the total work force of the groups shown for the years 2000–2010. As the table indicates, almost half of the new entrants during that time span will be women. This one dimension of diversity has many rami?cations for organizations in the areas of child care, spouse relocation assistance programs, pregnancy leave programs, ?exible hours, and stay-at-home jobs. These same projections also predict that white, non-Hispanic males will comprise fewer than one-third of new labor force entrants for the years 2000–2010.5 In addition to the possibility of having differing educational backgrounds, immigrant employees are likely to have language and cultural differences. Organizations must begin now to successfully integrate these people into their work forces. Almost everyone has heard the phrase “the graying of America.” By the year 2010, the average age of employees will climb to 40.6 from 39.3 in 2000.6 This will be accompanied by a signi?cant drop in the number of employees from 25 to 39 years old. In 2000, 48.2 percent of the labor force was age 40 or older; by 2010, more than half of the labor force will be in TABLE 1.3 Civilian Labor Force, 2000 and Projected to 2010, and Projected Entrants, Stayers and Leavers, 2000–2010 Source: “Labor Force 2010: Steady Growth and Changing Composition,” Monthly Labor Review, November 2001, pp. 21–38. 2000–2010 Group Total Men Women White, non-Hispanic Men Women Black, non-Hispanic Men Women Hispanic origin Men Women Asian and other, non-Hispanic Men Women 2000 Entrants Leavers Stayers 2010 100.0% 53.4 46.6 73.1 39.3 33.8 11.5 5.4 6.1 10.9 6.3 4.6 100.0% 49.6 50.4 60.6 30.7 29.9 13.7 6.0 7.7 17.9 9.3 8.6 100.0% 55.4 44.6 77.4 43.0 34.4 11.8 6.3 5.4 7.2 4.2 3.0 100.0% 53.0 47.0 72.2 38.5 33.7 11.4 5.2 6.2 11.7 6.8 4.9 100.0% 52.1 47.9 69.2 36.5 32.7 12.0 5.4 6.6 13.3 7.4 5.8 4.5 2.4 2.1 7.8 3.7 4.2 3.6 1.9 1.7 4.7 2.5 3.7 5.5 2.8 2.7 Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 9 this age category. This age increase and drop in the younger labor pool will have a mixed effect. The older work force will likely be more experienced, reliable, and stable, but possibly less adaptable to change and retraining. One direct result of this trend is that the retirement age is already increasing. Another dimension of diversity is related to the increasing globalization of many companies. As companies become more global, diversity must be de?ned in global and not just Western terms.7 De?ning diversity in global terms means looking at all people and everything that makes them different from one another, as well as the things that make them similar. Differentiating factors often go beyond race and language and may include such things as values and customs. downsizing Laying off of large numbers of managerial and other employees. outsourcing Subcontracting work to an outside company that specializes in that particular type of work. Challenges and Contributions of Diversity What challenges and contributions does the increasingly diverse work force present? From an overall viewpoint, organizations must get away from the tradition of ?tting employees into a single corporate mold.8 Everyone will not look and act the same. Organizations must create new human resource policies to explicitly recognize and respond to the unique needs of individual employees. Greater diversity will create certain speci?c challenges but also make some important contributions. Communication problems are certain to occur, including misunderstandings among employees and managers as well as the need to translate verbal and written materials into several languages. Solutions to these problems will necessitate additional training involving work in basic skills such as writing and problem-solving. An increase in organizational factionalism will require that increasing amounts of time be dedicated to dealing with special interest and advocacy groups. In addition to creating the above challenges, greater diversity presents new opportunities. Diversity contributes to creating an organization culture that is more tolerant of different behavioral styles and wider views. This often leads to better business decisions. Another potential payoff is a greater responsiveness to diverse groups of customers. The increasing diversi?cation of the work force is fact. Learning to effectively manage a diverse work force should be viewed as an investment in the future. HRM in Action 1.1 describes the comprehensive diversity awareness strategy implemented by UPS. Regulatory Changes The deluge of government regulations and laws has placed a tremendous burden on human resource managers. Organizations face new regulations routinely issued in the areas of safety and health, equal employment opportunity, pension reform, environment, and quality of work life. Often new regulations require signi?cant paperwork, and this burden usually falls on human resource managers. Every year thousands of cases relating to the interpretation of human resource issues are brought before the courts. Once a case has been decided, human resource managers must implement the outcome. Structural Changes to Organizations Today’s organizations are undergoing many structural changes that present challenges for human resource managers. Some of these structural changes are caused by downsizing, outsourcing, rightsizing, and reengineering. Downsizing is the laying off of large numbers of managerial and other employees. As a result of downsizing, many companies are outsourcing services that the human resource department previously provided. Outsourcing refers to subcontracting work to an outside company that specializes in that particular type of work. Some examples of services being outsourced include retirement plan administration and management development programs. Rightsizing is the continuous and proactive assessment of mission-critical work and its staf?ng requirements.9 Rightsizing differs from downsizing in that it is an ongoing planning process to determine the optimal number of employees in every area of the organization. Other companies are implementing reengineering programs. Reengineering refers to a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.10 In essence, reengineering usually results in sweeping changes in management and organization structures. rightsizing Continuous and proactive assessment of missioncritical work and its staf?ng requirements. reengineering Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 10 Part One Introduction and Equal Employment Opportunity HRM in Action DIVERSITY A WINNING COMBINATION FOR UPS “At UPS, it’s not where you’re from or what you look like, it’s how much you care and how good you are at your job,” says Hugo Parades, UPS District Manager, who is responsible for almost 4,000 employees and thousands of customers. Evidence of UPS’s commitment to diversity is widespread in the ?rm. Approximately one-third of UPS’s 325,000 employees are minorities, and 21 percent are women. Diversity is prevalent on all levels, too—27 percent of the ?rm’s of?cials and managers are minorities and women. Senior Vice President Calvin Darden, who is head of U.S. operations and is rumored as being in line to become CEO, is African-American. Technological and Managerial Changes within Organizations telecommuting To work at home by using an electronic linkup with a central of?ce. empowerment Form of decentralization that involves giving subordinates substantial authority to make decisions. self-managed work teams Groups of peers are responsible for a particular area or task. 1.1 Not only is the company committed to diversity within the ?rm, it also has a Supplier Diversity Program that encourages small, minority, and women-owned businesses— resulting in more than $100 million in purchases from these suppliers. The ?rm’s customers are international and also re?ect the ?rm’s commitment to diversity. Diversity within the organization has paid off for UPS: consistently ranked as one of Fortune’s “50 Best Companies for Minorities,” UPS is also ranked 55th on Fortune’s list of America’s top 500 companies. Its steady $30 billion in annual revenue and solid stock price re?ect how diversity within a large company creates winning results. Source: “Best Companies for Minorities,” Fortune, July 8, 2002; www.pressroom.ups.com. New technologies and management approaches have added to the challenges facing human resource managers. While the technological changes affecting human resource managers are widespread, none are more dramatic than those related to information systems. In addition to their uses in performing the traditional functions of accounting and payroll calculations, computerized information systems are now being used to maintain easily accessible employee data that are valuable in job placement and labor utilization. Information systems are also being used in employee training, succession planning, and compensation management, and to track and report af?rmative action activity. Cyberspace and the Internet are changing the way many human resource managers operate. Today many human resource managers are going online to recruit personnel, conduct research using electronic databases, send E-mail, and engage in valuable networking and discussions.11 Chapter 2 discusses in some depth just how human resource managers are using information systems. More and more frequently, companies are using telecommuting. Options range from allowing employees to work at home one day a week to running entire projects, or even entire ?rms, through electronic communication, with employees all over the country or even on different continents working closely together, yet never meeting face to face. HRM in Action 1.2 describes the results some companies have experienced through telecommuting. Empowerment of employees and self-managed work teams are two speci?c management approaches that are having a signi?cant impact on today’s human resource managers. Empowerment is a form of decentralization that involves giving subordinates substantial authority to make decisions. Under empowerment, managers express con?dence in the ability of employees to perform at high levels. Employees are also encouraged to accept personal responsibility for their work. In organizations using self-managed work teams, groups of employees do not report to a single manager; rather, groups of peers are responsible for a particular area or task. The breadth of the changes in so many areas—work force diversity, the regulatory environment, organizational structure, new technologies, management approaches—will have a powerful impact on today’s human resource managers. Human Resource Management Tomorrow To meet the challenges of the future, tomorrow’s human resource departments must be much more sophisticated than their predecessors. Given the expanding role human resource departments must ?ll, it is essential that human resource managers be integrally involved in the organization’s strategic and policymaking activities. Fortunately, there are signs that this is happening in many organizations. For example, in the majority of the Fortune 500 companies, the Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 11 HRM in Action BENEFITS AND CAUTIONS OF TELECOMMUTING www.workforce.com Telecommuting—working away from the of?ce but staying connected through computer and telephones—is becoming a fact of life for many employees. Firms ?nd offering the ?exibility of telecommuting to their employees often helps cut costs of maintaining of?ce space and results in more productive employees who are better able to balance work and personal lives. Moreover, telecommuting removes geographic and physical barriers, allowing the ?rm more ?exibility in hiring and assigning employees to teams. One special consideration for telecommuting employees is the technology required. Most of the technology used in telecommuting is also used within the main of?ce— telephones, computers, E-mail, and faxes. The ?rm and the telecommuting employee need to agree about what equipment will be purchased and maintained and who will be responsible for it. Even if the ?rm owns the equipment, maintenance will be more time-consuming when the equipment breaks down—while the ?rm typically has inhouse technical resources, off-site workplaces usually do 1.2 not. A written agreement should include technology requirements. The contract should also cover the con?dentiality of the work involved as well as the terms of employment, especially to protect the employer’s interests if it is determined that the telecommuting arrangement should end. For example, an agreement that speci?es that telecommuting is a requirement of the position may legally protect the employer in some cases (if the telecommuting employee wants to return to the of?ce, but the employer cannot accommodate this change). In other cases, this same requirement would leave the employer liable if the employer asks the employee to return to the of?ce and the employee does not want to accommodate this change. Successful telecommuting provides ?exibility and bene?ts to the employee and to the ?rm. By considering the unique elements of this type of working, both employee and employer can avoid many possible problems. Source: Charlene Marmer Solomon, “Managing Virtual Teams,” Workforce, June 2001, pp. 60–64; Shirley Chan, “The Invisible Factors of Telecommuting,” Workforce, www.workforce.com, May 11, 2001. head of the human resource department is an of?cer (usually a vice president) who answers to the chief executive of?cer (CEO). In many companies, the head of the human resource department sits on the board of directors, the planning committee, or both. One survey of top human resource executives at 151 Fortune 500 companies found that a majority of these executives have signi?cant input in corporate policy decision making. A recent biannual comparison of human resources management at the top and bottom 10 percent of public companies found almost half of the top companies have a formal HR plan, including recruitment, development, and succession, as compared to less than 5 percent of the bottom ?rms. The top ?rms also perceived their HR professionals as employee champions, agents for change, and business partners.12 If tomorrow’s human resource managers are to earn the respect of their colleagues and of top management, they must work to overcome certain negative impressions and biases sometimes associated with human resource management. This can be accomplished in several ways. First, human resource managers should become well-rounded businesspeople. In addition to being well grounded in the basic disciplines of the profession, human resource professionals need to understand the business complexities of the company.13 The following suggestions are offered to help human resource managers become more familiar with their businesses: • • • • • • Know the company strategy and business plan. Know the industry. Support business needs. Spend more time with the line people. Keep your hand on the pulse of the organization. Learn to calculate costs and solutions in hard numbers.14 Thoroughly understanding the business will help to overcome the common feeling that human resource people do not understand the operating problems and issues facing the organization. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 12 Part One Introduction and Equal Employment Opportunity Second, human resource managers should become fully knowledgeable about present and future trends and issues. This will help them guard against becoming enamored with passing fads or ineffective techniques. Third, human resource managers should promote effective human resource utilization within the organization. Rather than taking a moralistic approach when dealing with operating managers, human resource managers should stress the importance of increasing pro?ts through effectively using the organization’s human resources. In this light, human resource managers should learn to be proactive and seize opportunities to demonstrate how they can positively affect the bottom line. Company Pro?ts and the Human Resource Manager There is no doubt that human resource managers spend considerable time working on problems and concerns related to the human side of the organization. Because of this, many people perceive human resource managers as being concerned only with matters that relate directly to the human side of the organization. Contrary to this view, human resource managers can have a direct impact on company pro?ts in a number of speci?c ways. 1. Reduce unnecessary overtime expenses by increasing productivity during a normal day. 2. Stay on top of absenteeism and institute programs designed to reduce money spent for time not worked. 3. Eliminate wasted time by employees through sound job design. 4. Minimize employee turnover and unemployment bene?t costs by practicing sound human relations and creating a work atmosphere that promotes job satisfaction. 5. Install and monitor effective safety and health programs to reduce lost-time accidents and keep medical and workers’ compensation costs low. 6. Properly train and develop all employees so they can improve their value to the company and do a better job of producing and selling high-quality products and services at the lowest possible cost. 7. Decrease costly material waste by eliminating bad work habits and attitudes and poor working conditions that lead to carelessness and mistakes. 8. Hire the best people available at every level and avoid overstaf?ng. 9. Maintain competitive pay practices and bene?t programs to foster a motivational climate for employees. 10. Encourage employees, who probably know more about the nuts and bolts of their jobs than anyone else, to submit ideas for increasing productivity and reducing costs. 11. Install human resource information systems to streamline and automate many human resource functions.15 From an overall standpoint, several large-sample, cross-industry studies have reported that ?rms using innovative human resource practices outperform ?rms that do not use such practices.16 As a direct result of increasingly available information systems, numerous strategies can be used to help the human resource department contribute to the bottom line.17 The basic idea behind these strategies is to translate knowledge of human resources into terms that have tangible and recognizable economic bene?ts, especially to operating managers. Examples include analysis of the cost per hire, length of time to ?ll a position, and new-hire performance by recruiting strategy, with the intent of identifying the most effective strategy. HRM in Action 1.3 describes how the efforts of one company’s HR department signi?cantly reduced employee turnover, resulting in increased revenues. Communicating Human Resource Programs Communicating human resource programs has been compared to the marketing of a new product.18 Consider the fact that approximately 90 percent of all new consumer products fail. In some cases, the failure is due to a poor product that does not ?ll a current need. In other Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 13 HRM in Action HR PROGRAM REDUCES TURNOVER, IMPROVES REVENUES www.cigna.com Attracting and retaining good employees is critical to an organization’s performance. Recent studies of the importance of employees to organizational success have estimated that their knowledge and skills make up as much as 80 percent of the worth of a corporation. So, high employee turnover is a drain on resources. At Philadelphiabased CIGNA insurance company, HR professionals noticed that turnover at its customer call centers was unacceptably high. Vice-president for work climate assessment Clem Cheng and his team set about to investigate—and change—the situation. Among the issues that the HR team investigated were the causes of the turnover and day-to-day practices that reduced loss of good workers. Cheng and his team found that ?exible work schedules lengthened the time that em- Web site: International Personnel Management Association www.ipma-hr.org communication Transfer of information that is meaningful to those involved. Guidelines for Communicating Human Resource Programs 1.3 ployees stayed with CIGNA and lack of ?exibility hastened their departures. So the HR team conducted training for CIGNA managers to help them understand their role in maintaining balance for their employees’ work and life roles. They also provided additional training to assist managers in getting workers up to speed quickly in company processes and making them feel part of the organization as a whole. The result? “Turnover went down four to ?ve points the ?rst year,” notes CIGNA executive vice president for HR Donald Levinson. Such reduced turnover added signi?cantly to CIGNA’s bottom line. “This stuff really works,” he says. Source: Steve Bates, “Accounting for People,” HR Magazine, October 2002, www.shrm.org/hrmagazine; Steve Bates, “CIGNA: Reducing the Churn,” HR Magazine, October 2002, www.shrm.org/hrmagazine. cases, however, the product fails because of a breakdown in the marketing system. The product may have been inadequately researched, the salespeople may not have been properly trained, the distribution system may have been poor, or the overall marketing strategy may have been misguided. Unfortunately, many well-designed human resource programs also fail because they are not properly “marketed.” In the case of human resource programs, the customers are the employees and the price is often employee commitment, motivation, and cooperation. Communication is much more than talking, speaking, and reading. True communication takes place when an understanding has been transferred from one party or source to another. Therefore, communication can be de?ned as the transfer of information that is meaningful to those involved. In this light, each and every one of the human resource functions discussed in this book requires some degree of effective communication to succeed. For example, think of the important role communication plays in career planning, recruiting, and performance appraisal. In all too many instances, human resource managers spend tremendous amounts of time developing very good programs, only to subsequently do a poor job of communicating them. The end result is often great programs that go largely unused. A human resource manager’s ?rst step in becoming an effective communicator is to develop an appreciation for the importance of communication. The problem is not that human resource managers tend to belittle the importance of communication; rather, they often fail to think consciously about it. As just discussed, it is helpful for human resource managers to develop a marketing approach when implementing their programs. Even when this is successfully done, there are numerous other communication-related guidelines to follow. Some of these are discussed in the following paragraphs.19 Avoid communicating in peer group or “privileged-class” language. The level of a communication should be determined by the receiving audience and not by the instigator of the communication. Take the common procedure for developing employee bene?t information. Often a highly educated writer makes a ?rst draft and gives it to the department head. The department head, being a specialist, then adds a few “clarifying” remarks. The Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 14 Part One Introduction and Equal Employment Opportunity data Raw material from which information is developed; composed of facts that describe people, places, things, or events and that have not been interpreted. information Data that have been interpreted and that meet a need of one or more managers. company lawyer and perhaps an actuary or an insurance person then add more explanations to guard against liability and to be legally correct. Thus, the ?nal document may be accurate and legal, but also barely understood by the employees for whom it is intended! The key is to consciously remember for whom the communication is intended. Don’t ignore the cultural aspects of communication. Be careful with words, symbols, and expressions. Today’s work force is much more culturally sensitive than it was one or two decades ago. Expressions like “They wear the black hats” or “You act like an old lady” can easily be taken out of context and offend someone in the audience. Back up communications with management action. The old saying “People watch what you do and not what you say” is certainly true with regard to employee communications. Promises made either orally or in writing must be backed up by actions if they are to succeed. Periodically reinforce employee communications. Most communications tend to be forgotten unless they are periodically reinforced. This is especially true with many personnel-related communications. It is a good idea, for example, to periodically remind employees of the value of the bene?ts they receive. Transmit information and not just data. Data has been de?ned as “the raw material from which information is developed; it is composed of acts that describe people, places, things, or events that have not been interpreted.20 Data that have been interpreted and that meet a need of one or more managers are called information.21 Employees receive piles of data from numerous sources, but until the data have been interpreted, they are of little value. Human resource managers need to guard against transmitting numbers, statistics, and other data that have little meaning without an accompanying interpretation. Don’t ignore the perceptual and behavioral aspects of communication. Try to anticipate employee reactions to communications and act accordingly. For example, it might be a good strategy to informally separate older employees from younger employees when introducing a new pension program through employee meetings. It would only be natural for these different groups to have different questions and levels of interest. The preceding suggestions largely involve good common sense. It is not that human resource managers are not practical; rather, they often do not take the time to think through a communication. One good approach is to ask, “How could this message be misinterpreted?” The answer to this question should then be taken into account when structuring the communication. Human Resource Management and Organizational Performance The primary goal of human resource management in any organization is to facilitate organizational performance. One of the most effective ways to enhance organizational performance is to increase productivity. The American Productivity Center de?nes productivity as the ef?ciency with which an organization uses its labor, capital, material, and energy resources to produce its output. Human resource managers are somewhat limited in the impact they can have on the capital, materials, and energy aspects of productivity. However, they can have a great deal of impact on the labor component. Speci?cally, they can affect the commitment of employees and the management philosophy of the individual managers. Because of this, human resource managers have a unique opportunity to improve productivity and hence organizational performance. Summary of Learning Objectives 1. De?ne human resource management. Human resource management encompasses those activities designed to provide for and coordinate the human resources of an organization. Human resource management is also a modern term for what has traditionally been referred to as personnel administration or personnel management. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 15 2. Describe the functions of human resource management. Human resource functions are those tasks and duties performed in large and small organizations to provide for and coordinate human resources. Human resource functions include the following: a. Human resource planning, recruitment, and selection. b. Human resource development. c. Compensation and bene?ts. d. Safety and health. e. Employee relations. f. Human resource research. 3. Summarize the types of assistance provided by the human resource department. The primary function of the human resource department is to provide support to operating managers of all human resource matters. In general terms, the human resource department provides three types of assistance: (1)speci?c services, (2)advice, and (3)coordination. 4. Explain the desired relationship between human resource managers and operating managers. The human resource department normally acts in an advisory capacity and does not have authority over operating managers. To be effective, human resource managers must continually cultivate good relations with operating managers. Likewise, operating managers must understand the human resource functions to effectively utilize the human resource department. 5. Identify several challenges currently facing today’s human resource managers. Today’s human resource managers currently face several challenges. Some of the more signi?cant issues include an increasingly diverse work force and changes in government regulations, organization structures, technology, and managerial approaches. 6. Outline several potential challenges and contributions presented by an increasingly diverse work force. An increasingly diverse work force will create speci?c challenges in the areas of communication, more training, and potentially higher factionalism. On the positive side, increased diversity will contribute to an organizational culture that is more tolerant of different views, which may lead to better decisions. Another potential payoff is greater organizational responsiveness to diverse groups of customers. 7. Discuss the role of human resource managers in the future. Human resource managers are predicted to play an increasingly important role in the management of organizations. In ful?lling this role, human resource managers should become thoroughly familiar with the business, be knowledgeable about present and future trends, and learn to emphasize the impact human resources can have on pro?t. 8. Summarize several guidelines to follow when communicating human resource programs. Overall, it is helpful for human resource managers to develop a marketing approach when implementing and communicating their programs. In addition, there are several speci?c guidelines to follow: avoid communicating in peer group or privileged-class language, don’t ignore the cultural aspects of communication, back up communications with management action, periodically reinforce employee communications, transmit information and not just data, and don’t ignore the perceptual and behavioral aspects of communication. 9. Explain, in general terms, how human resource managers can affect organizational performance. One of the most effective ways to enhance organizational performance is to positively in?uence the labor component of productivity. Human resource managers can have a significant impact on the commitment of employees and the management philosophy of individual managers. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 16 Part One Introduction and Equal Employment Opportunity Review Questions 1. What is human resource management? Distinguish between a human resource generalist and a human resource specialist. 2. What functions does a human resource department normally perform? Why are these functions important in today’s organizations? 3. List several challenges facing today’s human resource managers. 4. What is meant by an “increasingly diverse work force”? 5. Differentiate among downsizing, outsourcing, rightsizing, and reengineering. 6. Name several speci?c ways human resource managers can positively affect an organization’s pro?ts. 7. List several guidelines to follow when communicating human resource programs. Discussion Questions 1. Some people believe human resource management is an area reserved for those “who can’t do anything else.” Why do you think this belief has emerged? Is there any factual basis for it? 2. Describe some current trends that you believe will have an impact on human resource management in the next 10 years. 3. Many human resource managers claim to love their work because they like to work with people. Do you think liking people is the most important ingredient in becoming a successful human resource manager? 4. As a human resource manager, how might you go about convincing top management that you should be heavily involved in the company’s strategic planning process? Incident 1-1 Human Resource Management and Professionals Web site: Society for Human Resource Management www.shrm.org You are a senior member of a national law ?rm in New York City. The managing partner of the ?rm has asked you to head up the southern branch in Raleigh, North Carolina. This branch is 1 of 10 under the main of?ce. On the whole, the ?rm has been successful since its establishment in the mid-1920s, but in the last ?ve years, many of the younger staff have elected to leave the organization. The managing partner is convinced the problem is not salary, because a recent survey indicated that the ?rm’s salary structure is competitive with that of other major ?rms. However, he requests that you study this matter ?rsthand in your new assignment. After getting settled in Raleigh, one of your ?rst projects is to meet with the four senior managers to determine why the branch has had such a high attrition rate among the younger staff. Harding Smith, age 45, states that the younger staff lacks dedication and fails to appreciate the career opportunities provided by the ?rm. Wilma Thompson, age 50, says the younger staff members are always complaining about the lack of meaningful feedback on their performance, and many have mentioned that they would like to have a sponsor in the organization to assist with their development. Thompson further explains that the ?rm does provide performance ratings to staff and the previous manager had always maintained an opendoor policy. Brian Scott, age 40, says he has received complaints that training is not relevant and is generally dull. He explains that various persons in the ?rm who worked with training from time to time acted mainly on guidance from New York. Denise Rutherford, age 38, says she believes the root of the problem is the lack of a human resource department. However, she says that when the idea was mentioned to the managing partner in New York, it was totally rejected. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 17 QUESTIONS 1. What do you think about the idea of a human resource department in a professional of?ce? 2. How would you sell the idea of a human resource department to the managing partner? 3. What type of organizational structure would you propose? Incident 1-2 Choosing a Major Tom Russell is a junior in the school of business administration at a large midwestern university. Tom, who is an honor student, hasn’t fully decided what his major should be. He has considered majoring in management, but just can’t get excited about the ?eld; it seems to be too general. Tom’s ?rst course in management did appeal to him; however, this was largely because of the professor. Tom decided to talk to this professor about his dilemma. The following conversation occurred: Tom: Professor, I would like your advice on selecting a major ?eld of study. Right now, I just don’t know what to do. Professor: Tom, just let me say that you are making an important decision, and your concern is justi?ed. How many courses have you taken in the School of Business Administration? Tom: Only your introductory course in management, a basic course in marketing, and a statistics course. I do know that I don’t want to major in statistics! Professor: How about majoring in human resource management? Tom: I don’t think so. That is basically a staff job that can’t really lead anywhere. Professor: Hold on, Tom, I think I’d better tell you a little more about human resource management. QUESTIONS 1. If you were the professor, what would you tell Tom? 2. Speci?cally, what future trends do you see that might help persuade Tom to major in human resource management? EXERCISE 1.1 Justifying the Human Resource Department Assume you work in the human resource department of a medium-size manufacturing company (annual sales of $100 million). The company has been unionized for many years but has never had a strike. The president of the company has just requested that all departments develop a budget for the coming ?scal year and be prepared to justify their budget requests. As part of this justi?cation, your boss, the director of human resources, has just asked you to prepare a list of at least 10 reasons why the human resource department and its performance are important to the success of the entire company. Be prepared to present your list to the class. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 18 Part One Introduction and Equal Employment Opportunity EXERCISE 1.2 www.dol.gov/dol/ compliance/compliancemajorlaw.htm Test Your Knowledge of HR History* Each of these events happened in the 20th century. See if you can put them in the correct chronological order. For a greater challenge, name the year that the event occurred. Search for clues with your Web browser. Hint: Summaries of many labor laws can be found at the U.S. Department of Labor, Major Laws & Regulations Enforced by the Department of Labor, Web site. A. The minimum wage is raised to $5.15 an hour. B. Executive Order 11246 is issued to provide for equal employment opportunity for those working for government contractors. C. President Clinton signs the Family and Medical Leave Act (FMLA). D. Congress passes the Railway Labor Act, requiring employers to bargain with unions. E. Congress passes the Fair Labor Standards Act (FLSA), banning child labor. F. Congress passes the Occupational Safety and Health Act. G. President Truman seizes the steel industry when steel companies reject recommendations made by the Wage Stabilization Board. H. The Uniformed Services Employment and Reemployment Rights Act (USERRA) is signed to protect workers who are called to active military duty. I. Congress passes the Employment Retirement Income Security Act regulating all private pension plans. J. The North American Free Trade Agreement is passed. K. Congress passes the Equal Pay Act prohibiting wage differentials based on gender for workers covered by the FLSA. L. President Reagan signs a welfare reform bill requiring single parents with children over three years old to get regular jobs. M. United States enters World War II. N. Frances Perkins becomes secretary of labor and the ?rst woman named to a presidential cabinet. *Source: Adapted from Workforce, Workforce Extra Supplement, October 1998, p. 7, and the U.S. Department of Labor, Major Laws & Regulations Enforced by the Department of Labor Web site. EXERCISE 1.3 Are You Poised for Success?** As discussed in this chapter, a successful career in HR demands a broader range of skills and experiences than ever before. While designed for people currently employed in HR positions, the following exam provides good insights into what is necessary to succeed in HR today. If you are currently employed in HR, take the exam and see how well you are doing. If you are not currently in HR, go over the exam questions to learn how you might prepare yourself for a career in HR. I. Starting Points (10 points if you have a managerial, directorial, or VP title) II. Knowledge of General Business and Finance During the past six months, have you initiated conversations with the CFO or other ?nance executive to discuss the ?nancial implications of HR programs? If yes, add 2 points Have you completed some general business courses at the college level? If yes, add 2 points Do you have an MBA? If yes, add 2 points Do you develop the ?rst draft of the company’s annual HR budget and then advocate for it during the corporate budget-setting sessions? If yes, add 2 points (10 points) ________ (10 points) ________ ________ ________ ________ Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 19 III. IV. V. VI. VII. VIII. Did you meet HR budget goals (+ or –5%) during the most recent ?scal year? If yes, add 2 points Mastery of HR Disciplines Have you initiated, developed, and implemented a speci?c HR program within a speci?c HR niche (e.g., training or compensation)? If yes, add 1 point for each program, to a maximum of 4 points Before assuming your present position, did you hold a title of manager or director of a speci?c HR function, such as bene?ts or staf?ng? If yes, add 2 points for each title, to a maximum of 4 points Have you mentored someone else in HR who was designing a program within a speci?c HR niche? If yes, add 2 points Knowledge of Your Organization Can you state your company’s earnings for the most recent ?scal year? If yes, add 1 point Can you state your company’s pro?t (or loss) for the most recent ?scal year? If yes, add 1 point Can you identify your organization’s primary product or service lines and the relative revenue generated by each? If yes, add 1 point Can you identify your chief competitors and state your competitive position relative to them? If yes, add 2 points Do you report directly to the CEO? If yes, add 2 points During the past year, have you initiated a meeting or meetings with a line manager or other colleague at the management level for the express purpose of learning about their business needs or objectives? If yes, add 3 points Cross-Functional Experience Have you ever “shadowed” another executive or accepted a temporary assignment to gain a better understanding of another business function? If yes, add 2 points Have you ever held a position in an industry outside the one in which you’re presently working? If yes, add 4 points Have you ever held a position in a discipline outside HR (e.g., marketing, communication, or ?nance)? If yes, add 4 points International/Cross-Cultural Experience Have you ever participated in a cross-cultural training program? If yes, add 1 point Have you ever served as a member of a task force addressing a global business issue? If yes, add 1 point Have you ever traveled abroad? If yes, add 1 point for each country you’ve visited, to a maximum of 3 points Have you ever held an overseas assignment of six months or longer? If yes, add 5 points Mentors Have you had one or more mentors during your career? If yes, add 4 points Have any of your mentors been: (a) the opposite gender? (b) another race or ethnic group? (c) in a discipline other than HR? Add 2 points for each yes answer Career Decisions Have you developed a speci?c career goal for yourself? If yes, add 4 points Have you initiated activities intended to give you the skills/ responsibility needed to progress toward your career goal? If yes, add 3 points ________ (10 points) ________ ________ ________ (10 points) ________ ________ ________ ________ ________ ________ (10 points) ________ ________ ________ (10 points) ________ ________ ________ ________ (10 points) ________ ________ ________ (10 points) ________ ________ Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 20 Part One Introduction and Equal Employment Opportunity Have you sought or accepted a lateral transfer for the purpose of expanding your career opportunities? If yes, add 3 points IX. Technology Have you directed a project in which the application of technology (computers, voice-response systems, etc.) improved HR’s value or productivity? If yes, add 5 points Have you been a member of a group or task force responsible for applying technology to solve an HR-related issue? If yes, add 3 points Do you use a computer yourself in the course of doing your job? If yes, add 1 point Do you consider yourself conversant in the current technological lingo (e.g., client/server, open architecture)? If yes, add 1 point X. Continual Learning Do you subscribe to and read at least two business/professional publications? If yes, add 2 points Do you keep current on general issues that have implications for HR (e.g., health care reform)? If yes, add 2 points Do you periodically take classes or attend seminars in areas not directly related to HR, such as creativity or statistics? If yes, add 2 points Do you participate in professional organizations or attend conferences speci?cally directed to HR executives? If yes, add 2 points Do you regularly engage in right-brain activities, such as reading for pleasure, going to museums, or attending performing-arts events? If yes, add 2 points ________ (10 points) ________ ________ ________ ________ (10 points) ________ ________ ________ ________ ________ HOW DID YOU DO? To calculate your score, add all the numbers you entered on the spaces provided. Enter Subtotal Here Review the score sheet. For each section in which you gave yourself no points (for example, you earned no points under Career Decisions or Technology), deduct 10 points from the subtotal above. Enter the Total Points Deducted Here Subtract the deductions (if any) from the subtotal. Enter the Grand Total Here 85–100 Congratulations! You’re clearly a leader in HR. 70–84 The foundation you’ve built for your career is solid. You’re on the way to the top. 55–69 You’ve got a good start; additional experience in one or two key areas should help you get to the top. Set speci?c goals. 40–54 You have valuable experience in some key areas, but to get to the top you need additional experience. Start now. 0–39 Getting to the top in HR will be very dif?cult. ________ ________ ________ **Source: Adapted from “Are You Poised for Success in the 90’s? Take the Quiz and Find Out,” Personnel Journal, June 1994, pp. 72–73. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 1. Human Resource Management: Present and Future © The McGraw−Hill Companies, 2004 Chapter 1 Human Resource Management: Present and Future 21 Notes and Additional Readings 1. U.S. Department of Commerce, Bureau of Economic Analysis, NIPA Tables, Table 1.13, www.bea.doc.gov, accessed December 12, 2001. 2. Craig L. Fuller, “How HR Can Become a Corporate Boardroom Player,” Workforce, January 1999, p. 40; Gerald R. Ferris et al., “Human Resources Management: Some New Directions,” Journal of Management 25, no. 3, 1999, pp. 385–415; John McMorrow, “Future Trends in Human Resources,” HRFocus, September 1999, pp. 7–9. 3. Occupational Outlook Quarterly, “Labor Force,” Winter 2001, pp. 36–41. 4. Howard N. Fullerton, Jr., and Mitra Toossi, “Labor Force 2010: Steady Growth and Changing Composition,” Monthly Labor Review, November 2001, pp. 21–38. 5. Ibid. 6. Ibid., p. 36. 7. John M. Ivancevich and Jacqueline A. Gilbert, “Diversity Management: Time for a New Approach,” Public Personnel Management 29, no. 1 (Spring 2000), pp. 75–92. 8. Much of this section is drawn from Benson Rosen and Kay Lovelace, “Piecing Together the Diversity Puzzle,” HR Magazine, June 1991, pp. 78–84; and John D. Wheeler, “Managing Workforce Diversity,’’ Tax Executive, November/December 1997, pp. 493–95. 9. Duncan Davidson, Duane Dickson, and Jane Trice, “Rightsizing for Success,” Business Forum, Winter–Spring 1993, pp. 10–12. 10. M. Hammer and J. Champy, Reengineering the Corporation: A Manifesto for Business Revolution (New York: HarperCollins, 1993). 11. Samuel Greengard, “Technology Finally Advances HR,” Workforce, January 2000, pp. 38–41. 12. Stan Caudron, “HR Professionals Become Strategic Business Partners,” Personnel Journal, August 1994, p. 58; Brian E. Becker, Mark A. Huselid, and Dave Ulrich, The HR Scorecard: Linking People, Strategy, and Performance (Cambridge, MA: Harvard Business School Press, 2001). 13. Charlene Marmer Solomon, “Managing the HR Career of the ’90s,” Personnel Journal, June 1994, p. 66; Gerald R. Ferris, “Human Resources Management.” Some New Directions, Journal of Management, May–June, 1999. 14. Phil Farish, “Broader View Needed,” Personnel Administrator, February 1987, p. 27; Donald M. Burrows, “Increase HR’s Contribution to Pro?ts,’’ HR Magazine, September 1996, pp. 103–10. 15. Todd Raphael, “Think Twice: HR and an Rx for the Bottom Line,” Workforce, October 2001, p. 104; Samuel Greengard, “Increase the Value of Your Intranet,” Workforce, March 1997, pp. 80–90. 16. “Research Reports: Evidence from Cross Industry Studies,” Training & Development Journal, June 1995, p. 35. 17. Samuel Greengard, “Catch the Wave,” Personnel Journal, July 1995, p. 59; Shari Caudron, “How HR Drives Pro?ts,” Workforce, December 2001, pp. 26–31. 18. Joseph A. Banik, “The Marketing Approach to Communicating with Employees,” Personnel Journal, October 1985, pp. 62–64; Joe Pasqueletto, “An HRS Marketing Strategy,” Personnel Journal, June 1989, pp. 62–71. 19. Much of this section is drawn from Banik, “The Marketing Approach,” pp. 62–68. 20. David Lynch, “MIS: Conceptual Framework, Criticisms, and Major Requirements for Success,” Journal of Business Communications, Winter 1984, p. 20. 21. Ibid. Byars−Rue: Human Resource Management, Seventh Edition Chapter I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 2 Information Technology for Human Resources Learning objectives After studying this chapter, you should be able to: 1. Recount the general evolution of computers since the early 1960s. 2. Describe the Internet and identify the two functional categories of information available on the Internet that are most useful to human resource managers. 3. Describe an intranet. 4. Describe a client/server network. 5. De?ne a human resource information system (HRIS). 6. List numerous potential applications or uses of an HRIS. 7. Name the three major functional components of an HRIS. 8. Reiterate the speci?c procedures involved in developing and implementing an HRIS. 9. List several things human resources can do to foster data security throughout the organization. Byars−Rue: Human Resource Management, Seventh Edition Chapter outline I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 The Computer Evolution HR and the Internet Types of Internet Resources Intranets Client/Server Networks Human Resource Information Systems (HRIS) The Evolution of the HRIS Uses of an HRIS Necessary Capabilities of an HRIS Input Function Data Maintenance Function Output Function Implementing an HRIS Evaluating an HRIS Data Security Privacy and Legal Concerns Summary of Learning Objectives Review Questions Discussion Questions Incident 2-1 Getting Up to Speed Incident 2-2 Amori Manufacturing Company Exercise: HR and the Web Notes and Additional Readings The advent of the “computer age” has greatly altered, not only the availability of information, but also the manner in which it is identi?ed and acquired. Information technology deals with how information is accessed, gathered, analyzed, and communicated. Because information technology is used today in almost all phases of human resource work, it is discussed early in this book. This chapter introduces and gives an overview of information technology that is especially useful to human resource managers. Speci?c applications and uses of computers and information technology to particular human resource functions are discussed in the chapter relevant to the speci?c application. The Computer Evolution The ?rst electronic computer, the ENIAC, was developed by the University of Pennsylvania in conjunction with the U.S. Army Ordnance Corps. The ENIAC was 8 feet high by 8 feet long, weighed 30 tons, and required about 174,000 watts of power to run.1 On the average, it took about two days to set up ENIAC to carry out a program. It had constant maintenance problems because of its reliance on vacuum tubes and complicated wiring. In the 1960s, large and very costly mainframe computers were in use by only the very largest companies and government organizations. Not only was the hardware for these systems expensive, but they also required highly paid operators, service personnel, programmers, and systems specialists. Because of the physical size and costs of these systems, they were almost always highly centralized and, more often than not, considered an extension of the accounting function. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 Chapter 2 Information Technology for Human Resources 25 minicomputer Small (desk size) electronic, digital, storedprogram, general-purpose computer. personal computer Very small computer, ranging in size from a “computer on a chip” to a typewriter-size unit. user-friendly computer Computer that requires very little technical knowledge to use. The large computers were followed by the minicomputers of the 1970s. The minicomputers were much smaller in size and cost, and they were often programmed to perform speci?c functions for a particular business activity. Minicomputers ushered in the concept of distributed data processing, in which each operational area of an organization has control of its own computer to better respond to the needs of the area. The decentralization ?rst made possible by minicomputers has been taken even further by the microcomputer, or personal computer (PC). The ?rst commercially available personal computer was offered by Apple in 1976. Fifty-one percent of all U.S. households owned a personal computer in 2001.2 For just a few hundred dollars, a manager today can buy a personal computer that is capable of processing mammoth amounts of data, yet occupies no more space than a typewriter! The phenomenal improvements in computer hardware have been accompanied by improvements in software and user compatibility. Modern computers are much more userfriendly than those of the past. Human resource managers today do not need to know sophisticated programming languages and computer jargon to use computers. In fact, the highly competitive software environment has produced many companies that are eager to build software that is highly customized for speci?c functional business needs. By maintaining close contact with software suppliers, the human resource manager is the bene?ciary of highly sophisticated computer specialists’ knowledge and skills. HR and the Internet The internet is an excellent source for ?nding many types of information related to human resource management and for keeping up with new developments in the ?eld. Today a growing number of HR managers are using the Internet to recruit personnel, conduct research, access electronic databases, send E-mail, conduct training, and network with colleagues. The Internet is a global collection of independently operating, but interconnected, computers.3 Frequently referred to as the “information superhighway,” the Internet is actually a network of computer networks. Think of the Internet as analogous to the Interstate Highway system; just as the interstate system connects to different cities via many different routes, the Internet connects computers around the world via a number of different electronic pathways. At the most basic level, a computer, a modem, and the right type of software can get a person onto the Internet. The real value of the Internet to managers is the information that it makes available. Through the Internet, managers can access massive amounts of information by accessing computers around the world that are linked together through the Internet. Types of Internet Resources The type of information available and most useful for human resource managers on the Internet can be placed into two broad functional categories: (1) conversational resources or (2) reference resources. Conversational resources allow users to have conversations with individuals anywhere in the world. Mailing lists and newsgroups are the primary types of conversational resources. Mailing lists include electronic mail (E-mail), whereby the user can electronically read messages sent to any other individual or group of individuals who have “subscribed” by having their name and electronic mail address placed on the sender’s list of addresses. Newsgroups are essentially electronic bulletin boards. Anyone with Internet access can post an article to the board and anyone with Internet access can read the board. The two types of reference-oriented resources most frequently encountered are the World Wide Web and Gopher. The World Wide Web (www or the Web) uses hypertext markup language (HTML) to transfer text, sound, graphics, and video. Hypertext is a form of text which allows the writer to link words in the text to other documents, graphic images, video, or even web pages stored anywhere in the world. Using the Web requires “browsers” to view documents and navigate through the intricate link structure. Numerous browsers are currently available, with Netscape Navigator and Microsoft Internet Explorer being the most popular. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 26 Part One Introduction and Equal Employment Opportunity TABLE 2.1 Suggested Web Sites for HR Related Information 1. HR Professional’s Gateway to the Internet (www.hrprosgateway.com). This site offers more than 85 links to HR-related home pages. It is well organized and easy to get around. Hint: Start here to link to several of the sources listed below. 2. Society for Human Resource Management (www.shrm.org/hrlinks/alllinks.asp). This location has several useful links to various topics of interest, including career planning, employee bene?ts, legal issues, recruitment, training and development, and diversity. 3. Workforce (www.workforce.com). Site of one of the oldest and largest continuously published human resource periodicals in the United States, it has been published under other names (Personnel Journal) during its 80 years. The Workforce web site offers material on all areas of human resources. 4. U.S. Department of Labor (http://www.dol.gov). Federal web site with extensive information about labor-related HR issues, including statistics, legislation, research, and publications. Gopher sites are usually maintained by government agencies and education institutions. Gopher sites contain text-only documents such as regulations, policies, and reports of governmental agencies and research reports of educational institutions. Recruiting was the ?rst big online service used by HR personnel.4 Many companies use the Internet’s World Wide Web to post job openings and to search for potential recruits. An interested recruit can even apply for a job directly from his or her computer. Professional forums, bulletin board systems, and discussion groups represent some other popular uses of the Internet by HR personnel. Through these formats, HR professionals share information on topics as diverse as training and development, payroll and bene?ts, and legal requirements. By posting a question in the proper place on the Internet, an HR person can get an answer in a matter of hours as opposed to days or weeks. TABLE 2.2 Intranet Uses Source: Samuel Greengard, “Evolution of a Portal: The basics of HR portal development,” Workforce, April 2002, p. 36. Basic • • • • • • Employee communication Company directory Company handbook, including policies and guidelines Weather News Stock information Intermediate • • • • • • • • Linkage to outside bene?ts providers Employee-assistance programs Web-based e-mail E-learning Online job postings Calendar, address book, and project scheduling Online travel bookings Document management Advanced • • • • • • • • Bene?ts enrollment Performance management Salary and wage reviews Succession planning linked to skill/competency management programs Online recruitment and hiring Ability to submit electronic forms Electronic paycheck information, including pay stubs and W-2s Business intelligence Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 Chapter 2 Information Technology for Human Resources 27 Many services are available to assist HR people on the Internet. Table 2.1 outlines four Web locations that are good places to begin looking for useful HR information. Intranets An intranet is a private computer network that uses Internet products and technologies to provide multimedia applications within organizations.5 An intranet connects people to people and people to information and knowledge within the organization; it serves as an “information hub” for the entire organization. Most organizations set up intranets primarily for employees, but they can extend to business partners and even customers with appropriate security clearance. Intranets are rede?ning HR and providing new ways to get work done. A recent study reported that 90 percent of Fortune 200 companies surveyed were using intranets.6 A separate study found that 50 percent of manufacturing companies and almost 100 percent of hi-tech companies use intranets to store HR data.7 In general, intranets can provide an easy tool that allows HR to streamline and automate a wide array of functions. The attraction of an intranet is that it doesn’t require any large capital outlay, it’s incredibly ef?cient, and it’s simple to use. Table 2.2 provides 12 suggested general uses of an intranet. Table 2.3 presents a glossary of useful Internet/intranet terms. HRM in Action 2.1 describes how the use of an intranet saves Microsoft over a million dollars a year just in its payroll functions. Client/Server Networks client/server networks Relatively new systems that use personal computers (PCs) linked together to process information in a very ef?cient manner. TABLE 2.3 Glossary of Useful Internet/Intranet Terms Source: Samuel Greengard, “Internet/Intranet Glossary of Useful Terms,” Workforce, March 1997, p. 82. Client/server networks are systems that use personal computers (PCs) linked together to process information in a very ef?cient manner.8 At the hub of each network is a computer that controls the traf?c on the network and stores data in a relational database. This central computer, called the server, may be anything from a large mainframe to a powerful PC. The clients are desktop PCs used by individuals to enter or extract data or to do analyses. Domain: The name of a computer or service on the Internet—referred to by the character following “@” in an online address. Download: The process of receiving a ?le from another computer. Firewall: Hardware or software that protects a private network from an unsecured or public network. FTP (File Transfer Protocol): An Internet protocol for transferring ?les to and from another server over a network. Groupware: An application that enables users to collaborate over a network. Homepage: The ?rst page of a Web site or group of HTML documents. HTML (Hypertext Markup Language): The language in which World Wide Web documents are formatted. Hyperlink: The linking mechanism that allows a user to jump from one Web page, graphic, or document to another. Internet: World’s largest computer network enabling users to send E-mail, transfer ?les, participate in newsgroups, and access the World Wide Web. Intranet: A private network that uses Internet software and standards. Java: An object-oriented language, developed by Sun Microsystems, that creates distributed Web applications. Newsgroup: An electronic bulletin board on which users can post and exchange messages. SSL (Secure Sockets Layer): Provides authentication and data encryption between a Web server and a Web browser. Upload: The process of transmitting a ?le to another computer. URL (Uniform Resource Locator): A standardized character string that identi?es the location of an Internet document. Also known as a Web address. Web Browser: Software that requests and displays HTML documents and other Internet or intranet data. World Wide Web: The Internet’s worldwide, HTML-based, hypertext-linked information system. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 28 Part One Introduction and Equal Employment Opportunity HRM in Action THE PAPERLESS OFFICE? Thanks to the development of intranets, the paperless of?ce is becoming a reality in some companies. According to a recent study conducted by a British research group, ?fty?ve percent of companies with more than 500 employees are connected to an intranet. Seventy-two percent of respondents believe that these intranets reduce costs and save paper. Through the use of intranets, Microsoft estimates that it saves more than one million dollars a year just through the use of electronic payroll functions. Microsoft has eliminated 2.1 stacks of paper by putting data on CDs, provided online access to W4s and check stubs, and implemented electronic time-card reporting. Employees can now enter tax information through the intranet and review information around the clock. Human resources personnel have tax guides and other reference materials at their ?ngertips. Endless stacks of paper and rif?ing through overstuffed ?le cabinets are eliminated. Source: Samuel Greengard, “Virtual Paper Cuts,” Workforce, July 2000, pp. 16–18. The real bene?t of a client/server system is that it allows a user to enter a request and receive only the speci?c data needed. Processing and manipulation of the data are performed at the workstation, allowing the entire system to operate faster. Client/server systems are ideal for most human resource environments. Many human resource functions, such as payroll and bene?ts administration, depend on large and effective data management systems. Many other human resource applications rely on the ability to enter and extract speci?c information to meet very speci?c needs. Modern client/server systems can do both of these tasks. Human Resource Information Systems (HRIS) Increased human resource requirements, government regulations, and expanded personal computer capabilities have all helped justify the need and feasibility of an information system within the human resource department. Such an information system is referred to as a human resource information system (HRIS). An HRIS is a database system that contains all relevant human resource information and provides facilities for maintaining and accessing these data.9 The Evolution of the HRIS human resource information system (HRIS) A database system that contains all relevant human resource information and provides facilities for maintaining and accessing these data. The ?rst computerized human resource application in business took place at General Electric in the early 1950s.10 As early as 1984 a survey of 1,000 Personnel Journal subscribers, which yielded 434 usable returns, revealed that 99.7 percent of the respondents used computers in one capacity or another in the human resource functions.11 Another study of companies in a variety of industries found that investment in computers provided a better return than other capital investments.12 Today, the question is not so much whether computers are used by human resource managers and employees but rather the extent to which they are used. The First-Generation HRIS The ?rst generation of computerized HRISs involved the conversion of manual informationkeeping systems to computerized systems.13 Often the resulting systems were run by a large, external server bureau or, in the case of very large ?rms, an in-house mainframe computer. Large, costly processors crunched payroll and other data, and end users had very limited access to the system. Data had moved from the ?le cabinet to a mysterious mainframe. Human resource data were now in the care of a computer group that was either in-house or contracted outside. Requests from human resource personnel for information had to be funneled through the computer group. This system did result in a signi?cant decrease in the time required to produce most reports, but it also made human resource personnel feel dependent on the computer group. Many human resource managers regretted not having direct access to their own data. Some even longed for the old days of paper ?les. Byars−Rue: Human Resource Management, Seventh Edition I. Introduction and Equal Employment Opportunity 2. Information Technology for Human Resources © The McGraw−Hill Companies, 2004 Chapter 2 Information Technology for Human Resources 29 The Second-Generation HRIS As the 1970s advanced, the second generation of computerized HRISs was initiated with the introduction of the minicomputer. Minicomputers handle a network of simultaneous users and have multiple input and output devices. Minicomputers facilitated the transition from strictly batch processing (mainframes) to interactive processing. The second generation of computerized HRISs was completed in the early 1980s with the arrival of the personal computer. The low-cost stand-alone PC moved data processing to the desktop. The data repository was moved to the human resource professional’s desktop. Software proliferated, and before long the human resource record-keeping function was within reach for every size of organization. At the same time, mainframe and minicomputer systems were being made much more accessible and user friendly. From a functional standpoint, however, human resource managers were doing their jobs in the same basic manner they always had. The one major difference was that computerization allowed them to do more and do it more rapidly. The Third-Gen...