University:
Massachusetts Institute of Technology
Course:
15.501/516 | Accounting
Academic year:

2023
Views:

130

Pages:

7
Author:

kaszubizmxzh

What What value value does does HR HR add? add? “Nothing is more dangerous than a group of people trained in the art of monitoring compliance with rules, fluent in a language that does not include a word for ‘customer,’ and who have time on their hands and are looking for something to do.” Thomas Stewart “Taking on the last bureaucracy” Fortune, June 15, 1996 Lessons... • Staff managers must think like operating managers; i.e., they must understand the business strategically and operationally. • To do this, they must be prepared to demonstrate their ability to add-value-this requires measurement and analysis (e.g., balanced score card, financial analysis). • HR is a line management function; the only activities that should be centralized are those the line is willing to pay for. Surveys have also shown that the typical HR function spends their time on the following activities: • 68% on administration and risk management • 10% assisting line management • 22% developing employees Typical Time Devoted to Various HR Activities Knowledge management Strategic Redirection & Renewal Cultural Change Management Development (5-15%) Transformational (15-30%) Traditional Benefits Administration Record Keeping Employee Services (65-75%) Transactional Recruitment & Selection Training Performance Management Compensation Employee Relations HR HR Roles Roles in in Building Building Competitive Competitive Advantage Advantage Strategic StrategicFocus Focus Processes Processes • Focus: Strategy Alignment • Focus: Managing Change • Role: Business Partner • Role: Change Agent • Focus: Design of HR Systems • Focus: Administer HR Programs • Role: HR Expert • Role: Employee Champion Operational OperationalFocus Focus People People What What HR HR functions functions are are strategic strategic and and should should be be retained? retained? What What should should be be outsourced? outsourced? Retain Outsource Conclusion ? Next Class: ? The Slade Plating Department