HR to the Rescue ~~ Case Studies of HR Solutions to Business Challenges Copyright 0 2000 by Butterworth-Heinemann. All rights reserved. Printed in the United States of America. This book, or parts thereof, may not be reproduced in any form without permission of the publisher. Originally published by Gulf Publishing Company, Houston, TX. Permissions may be sought directly from Elsevier's Science and Technology Rights Department in Oxford, UK. Phone: (44) 1865 843830. Fax: (44)1 865 853333, e-mail: [email protected]. You may also complete your request on-line via the Elsevier homepage: http://www.elsevier.com by selecting "Customer Suppot?" and then "Obtaining Permissions". For information, please contact: Manager of Special Sales Butterworth-Heinemann 225 Wildwood Avenue Woburn, MA 01801-2041 Tel: 78 1-904-2500 Fax: 78 1-904-2620 For information on all Butterworth-Heinemann publications available, contact our World Wide Web home page at: http://www.bh.com 10 9 8 7 6 5 4 3 Library of Congress Cataloging-in-Publication Data HR to the rescue : case studies of HR solutions to business challenges / Edward M. Mone and Manuel London, editors. p. cm. Includes bibliographical references and index. ISBN 0-88415-397-5 (alk. paper) 1. Personnel management-Case studies. 2. Organizational change-Case studies. 3. Human capital-Case studies. I. Mone, Edward M. 11. London, Manuel. HF5.549.H658 1998 65 8.3-dc2 1 98-20775 CIP Transferred to Digital Printing 2008 A c kno wl edgment s This book evolved as a result of discussions between the editors about the state of HR practice today, a time when the terms change agent and organization transformation are being widely discussed in the field’s literature, as well as in the hallways outside most HR departments. HR professionals today are, more often than not, struggling with these concepts and how they relate to their own evolving roles and practice. As a result, we believed that there was value to be gained by providing a forum for real-world practitioners to tell their stories about how they have dealt with the thorny issues of being change agents faced with the challenge of driving and supporting organization transformation in today’s environment. We hope our readers will find these stories both affirming and educational. We owe a heartfelt thanks to many people, but only a few can be mentioned here: First, the chapter authors, for their honesty, insight, and courage, and for their belief in the editors’ vision of this book; second, Victoria Marsick, for providing the editors with reactions to their ideas and steering them in the direction of Jack Phillips, the series editor, who graciously embraced the con- cept for this book and was supportive throughout the entire VI I process; third, Sharon Williams, who always provided the lead editor with a supportive climate for developing his professional skills and testing his ideas; fourth, Kelly Perkins, our editor at Gulf, whose skill and enthusiasm was often needed and well appreciated; finally, our families, Marilyn, David, and Jared London, and Ceil Mone, for always being loving and extremely supportive. Vlll Contributors Dennis J. Adsit, Ph.D., received his undergraduate degree in mathematics and psychology, summa cum laude, from Bowling Green State University in Ohio. He received his master’s and doc- toral degrees from the University of Minnesota in industrial and organizational psychology. Currently, Adsit is a vice president at the consulting firm of Rath & Strong, a division of Aon Corpora- tion. He offers consulting in culture realignment, large system change management, conflict resolution, and globalization to pres- idents and senior executives. Adsit’s previous work experience includes serving as director of human resources for a large, French-owned high-tech multinational company. He also served as its manager of organization development. As an adjunct faculty member of Northeastern University’s Human Resource Manage- ment Department, Adsit teaches leadership and human resource management courses in the Evening MBA and High-Tech MBA programs. He is also an associate editor and a member of the executive advisory panel for the Academy of Management’s publi- cation Executive. $22 Conner is the director of people development at Colgate-Pal- molive. In this role, she is responsible for leadership development, performance development, workforce planning, and HR capabili- ty. She has an MBA from the University of Georgia and a BA in psychology from the University of Miami. She is currently work- ing on her doctorate in human resource development at George Washington University. IX Thomas Diamante, Ph.D., consults with a variety of Fortune 500 organizations to produce desired organizational change, resolve conflict, and improve management effectiveness. A former human resource manager for a Fortune 10 company, Diamante’s consultations reflect the perspective of an internal manager as well as his experience as an external organizational change consultant. He holds a doctorate in industrial and organizational psychology from the Graduate Center, City University of New York. His work appears in diverse publications, such as the Journal of Business & Psychology, Psychological Reports, The Leadership 6 Organiza- tion Development Journal, Academic Emergency Medicine, The Journal of Management Development, and HR Magazine. Dia- mante is an assistant professor at Dowling College’s Graduate School of Business on Long Island, N.Y. Carol Gorelick co-founded SOLUTIONS for Information and Management Services Inc., a management consulting company that specializes in implementing work-group and collaborative technologies for knowledge and document management applica- tions. Before she founded SOLUTIONS, Carol held executive positions at Prudential Securities, American Express, American Airlines, Lufthansa, and AT&T. Carol has an MBA, with distinc- tion, from the executive program at Pace University and a BA in economics from the State University of New York at Stony Brook. She has been an adjunct professor at Baruch College and Pace University, teaching management and data processing courses. Stephen John, Ed.D., was Zurich-based global head of organiza- tional learning and development for SBC Warburg. He has an MBNCPA and a doctorate of education in adult and organizational learning from Columbia University. He is presently a principal at Arthur Andersen LLP specializing in human resource strategy devel- opment and implementation. He is particularly interested in design- ing and implementing technology-enabled organizational develop- ment interventions that significantly improve business results. Henvik Holt Larsen is associate professor of human resource management at the Institute of Organization and Industrial Sociol- X ogy, Copenhagen Business School. He has a master’s degree in psy- chology and economics from the University of Copenhagen and a master’s degree in organizational behavior from the University of Wisconsin. Larsen also holds a diploma in international economics from the College of Europe in Bruges, Belgium, and is completing his Ph.D. at the Copenhagen Business School. His major research interests are in the areas of (1) career, organization, and manage- ment development, (2) training, and (3) appraisal systems. He has authored numerous books and articles in these areas. Manuel London, Ph.D., is professor and director of the Center for Human Resource Management in the Harriman School for Management and Policy, State University of New York at Stony Brook. After receiving his doctorate from Ohio State University, he taught for three years in the business school at the University of Illinois in Champaign-Urbana. He then held a variety of research and human resource management positions at AT&T. He moved to Stony Brook in 1989. His research interests are principally in employee and management development (including career motiva- tion theory, performance evaluation and feedback, training, and retraining and job placement for displaced workers). His recent books include Self and Interpersonal Insight: How Individuals Learn About Themselves and Others in Organizations (Oxford, 1995) and Jobs, Careers, and Economic Growth (Jossey-Bass, 1995). He has been an associate editor of the Academy of Man- agement]ournal and on the editorial boards of the Academy of Management Review, the ]oumal of Applied Psychology, Person- nel Psychology, and Administrative Science Quarterly. He is cur- rently senior editor of the Society for Industrial and Organization- al Psychology’s Professional Practice series. Stinne Madsen is a master’s student in the human resources program at the Copenhagen Business School Institute for Industri- al and Organizational Sociology. She has a BA in business law and has worked in both profit and not-for-profit organizations in Den- mark and the United States. XI Edward M. Mone has twenty years of experience in career, lead- ership, and organization development. Currently, he is director of people processes and systems at Booz*Allen & Hamilton Inc. For- merly HR division manager for strategic planning and develop- ment at AT&T, he has held a variety of human resource and orga- nization development positions since 1982. Before that, he was a partner in an outplacement and career management firm based in New York City. He has also served as an adjunct faculty member at the Harriman School for Management and Policy, State Univer- sity of New York at Stony Brook. He holds an MA in counseling psychology, has completed doctoral-level coursework in organiza- tion psychology, and is currently a doctorate-of-education candi- date at Teachers College, Columbia University, where he research- es individual, team, and organization learning. He has co-authored and co-edited books, book chapters, and articles in the areas of human resources and organization development. He also maintains a limited consulting practice. Lilian Morgensen holds an MS in information technology and is the director for staff and management development at Den Danske Bank, where she has held a number of positions in infor- mation systems and human resource management. She frequently speaks at human resource conferences and has contributed to a number of publications in the field. Tanya Ryttevagev Olsen holds a master’s degree in human resource management from the Copenhagen Business School in Denmark and is now a research assistant at that institution. James B. Shillaber, Psy.D., is director of organization develop- ment and training at Berlex Laboratories, a manufacturer and marketer of innovative pharmaceutical products in Montville, N.J . He has been using HR systems, programs, and processes to imple- ment business strategy at Berlex since 1992. Prior to joining Berlex, Shillaber was a management consultant with Wm. Schie- mann & Associates Inc. in Somerville, N.J. He received his bache- lor’s degree in psychology and human development from Hamp- shire College and his doctorate of psychology from Rutgers University. He is a licensed psychologist and a licensed family ther- apist, and he has research and practice interests in community development. CofeenA . Smith is the associate director of leadership develop- ment at Colgate-Palmolive. In this role, she is responsible for glob- al succession planning, executive staffing, and high-potential man- agement. She has also served as a human resource generalist for Colgate’s international operations in Asia, the South Pacific, Cen- tral Europe, and Africa. She has a master’s degree in labor rela- tions from Cornell University and a BA in psychology from Vil- lanova University. Lyle Yorks, Ed.D., is chair of the Department of Business Administration and professor of management at Eastern Con- necticut State University. He also serves on the executive develop- ment faculties at Louisiana State University and the University of Tennessee at Knoxville and as an adjunct faculty member in the adult education doctoral program at Teachers College, Columbia University. He regularly serves as a consultant for companies worldwide. Before coming to ECSU, he was a senior vice president of Drake Beam and Associates in New York City. He has also worked in the Corporate Management Systems Department at the Travelers Insurance companies. He has written several books, and his articles have appeared in the Academy of Management Review, the California Management Review, Human Resource Develop- ment Quarterly, the Sloan Management Review, and many other professional journals. He holds a BA from Tusculum College, an MA from Vanderbilt and Columbia universities, and a doctorate of education from Columbia University. Xlll Preface Today’s CEOs and organization leaders are faced with compet- ing under new and constantly changing rules, which regularly affect the global business landscape. Competition from around the world has forced executives with profit and loss responsibilities to develop a quality focus, think globally, shift core competencies, establish strategic alliances, downsize, and divest (or in the case of AT&T, trivest). These frame-breaking business initiatives need support to focus, motivate, develop, sustain, and reward the employee behavior necessary to ensure overall success. The cases in this book show how human resource professionals design and implement work processes and programs that contribute to orga- nizational change and development. Consider the need for employee development in the following situations: A quality-driven organization must employ people who under- stand and can manage a process-driven environment-one in which people work on projects and processes across functions, levels, and departments. An organization changes its business, perhaps by moving into new products or taking over sales and distribution functions pre- viously handled by vendors, and it needs employees to learn new skills and functions. XIV Two companies form a joint venture, requiring that employees develop a new spirit of cooperation and collaboration. A firm that downsized its staff to reduce costs and enhance effi- ciencies changes career opportunities for the remaining employees. An organization in the process of divesting units (for example, by spinning them off into separate corporations or by selling units to other companies) requires that remaining employees adopt a new sense of corporate identity and purpose. This book is about transformation. Through case studies writ- ten by human resource practitioners engaged in organizational change, we describe a set of significant business challenges facing corporate leaders and human resource professionals. Our empha- sis is on demonstrating how human resource development (HRD) principles, strategies, and programs can ensure the requisite busi- ness transformations to meet those challenges. Many business leaders are realizing that HR practitioners can offer much more to the enterprise than maintaining personnel transactions such as payroll, benefits, and compensation. As important as these functions are, executives and HR practitioners alike increasingly recognize the transformational nature of HRD functions. Human resource development is a key component of successful organizational transformation. For example, HR per- sonnel get involved in determining job requirements to make the business successful, in recruiting and hiring people who match the new and emerging skill demands, and in training these new employees and managers, as well as existing personnel to ensure they have the required knowledge and skills. Significant changes in how business is conducted entail concomitant changes in how employees are attracted, developed, maintained, and rewarded. Our goal is to help readers learn from the experiences presented here by highlighting the human resource side of strategic business initiatives, some of which proved successful and some of which did not. This book should be of value to a wide audience, including the following: organizational leaders and managers who are interested xv