the future of human resource management 64 thought leaders explore the critical hr issues of toda
THE
FUTU RE
HUMAN
RESOU RCE
OF
MANAGEMENT
64 THOUGHT LEADERS
EXPLORE THE CRITICAL HR ISSUES
OF TODAY AND
TOMORROW
EDITED BY
MICHAEL
SUE
DAVE
LOSEY
MEISINGER
ULRICH
Society for Human Resource Management
Alexandria, Virginia
USA
John Wiley & Sons, Inc.
THE
FUTU RE
HUMAN
RESOU RCE
OF
MANAGEMENT
64 THOUGHT LEADERS
EXPLORE THE CRITICAL HR ISSUES
OF TODAY AND
TOMORROW
EDITED BY
MICHAEL
SUE
DAVE
LOSEY
MEISINGER
ULRICH
Society for Human Resource Management
Alexandria, Virginia
USA
John Wiley & Sons, Inc.
Copyright © 2005 by Michael Losey, Sue Meisinger, and Dave Ulrich.
All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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1
Contributors
Geoff Armstrong is Director General of the Chartered Institute of Personnel and Development,
the professional body with 120,000 members across the United Kingdom and Ireland. He also
serves as the elected president of the World Federation of Personnel Management Associations,
which works to raise standards of HR management globally through f ive continental federations
representing more than 70 national associations and 450,000 HR professionals.
He has worked internationally at board level in the automobile, engineering and banking industries, as well as serving on a range of government committees and working parties.
Bruce J. Avolio is the Clifton Chair in Leadership at the College of Business Administration at
the University of Nebraska-Lincoln ( UNL). Avolio is also director of the Gallup Leadership Institute, codirector of the UNL and Gallup MBA/MA program in executive leadership, and director of the PhD program with a specialization in leadership at the College of Business
Administration at UNL. His current research interests are in the authentic processes underlying
leadership development.
Kathleen S. Barclay was elected General Motors vice president in charge of global human resources in 1998. In addition to her 22 years with GM, Barclay performed HR roles for the Southland Corporation and the Allen-Bradley Company. Barclay was named a fellow with the National
Academy of Human Resources in 2000. She is a member of the National Academy of Human
Resources board of directors, the Cowdrick Group, the Michigan Virtual University board, and
the Detroit Women’s Economic Club.
Richard W. (Dick) Beatty, SPHR, is professor of human resource management at Rutgers University and a core faculty member at the University of Michigan’s Executive Education Center. He
has published several books and more than 100 articles and is associate editor of the journal Human
Resource Management. He was president of the Society for Human Resource Management Foundation and received the society’s book award. He is coauthor of The Workforce Scorecard: Human
Capital and Strategy Execution, to be published by Harvard Business School Press in 2005.
Richard A. Beaumont, founder and managing director of the RAB Group LLC, was formerly
president, CEO, and chairman of ORC Worldwide, and is now chairman emeritus. In more than
40 years of leadership in the f ield, he served as a consultant to major corporations, various branches
of the federal government, and state and local governments.
He also was deputy undersecretary of the U.S. Navy and senior vice president and member of
the board of directors of Amerada Hess Corporation. Early in his career, he was assistant director of research for the Hawaii Employers Council and director of administrative services for the
American Management Association. He is an emeritus member of the board of the Colgate Darden Graduate School of Business of the University of Virginia.
An author, editor, and researcher of materials on management organization and industrial relations, he is an editor of Industrial Relations to Human Resources and Beyond (M. E. Sharpe,
iii
iv
Contributors
2003). He was a member of the Formation Group of the National Academy of Human Resources,
to which he was elected a fellow in 1993.
He holds a bachelor’s degree from the University of California and a master’s degree from the
University of Hawaii.
Brian E. Becker is Professor of Human Resources, and Chairman of the Department of Organization and Human Resources, in the School of Management at the State University of New York
at Buffalo. His current research and consulting interests focus on the relationship between human
resources systems, strategy implementation, and f irm performance. He is coauthor, along with
Mark Huselid and Dave Ulrich, of The HR Scorecard (Harvard Business School Press, 2001). Along
with Mark Huselid and Richard Beatty, he is coauthor of the forthcoming book, The Workforce
Scorecard: Managing Human Capital to Execute Strategy (Harvard Business School Press).
John W. Boudreau is professor and research director at the Marshall School of Business and
Center for Effective Organizations at the University of Southern California, is recognized worldwide for breakthrough research and consulting that bridges human capital, talent, and sustainable
competitive advantage. A fellow of the National Academy of Human Resources, he has authored
over 50 books and articles that have been translated into multiple languages, won research awards
from the Academy of Management, and been featured in the Wall Street Journal, Fortune, and
BusinessWeek.
Peter Cappelli is the George W. Taylor Professor of Management at The Wharton School and
Director of Wharton’s Center for Human Resources. He is also a Research Associate at the National Bureau of Economic Research in Cambridge, Massachusetts, and currently serves as Senior
Advisor to the Government of Bahrain for Employment Policy. He has been a Guest Scholar at
the Brookings Institution, a German Marshall Fund Fellow, and a faculty member at MIT, the
University of Illinois, and the University of California at Berkeley. Professor Cappelli’s more recent research examined changes in employment relations in the United States; his publications
include Change at Work (Oxford University Press, 1997) and The New Deal at Work: Managing
the Market-Driven Workforce (Harvard Business School Press, 1999.)
Wayne F. Cascio is US Bank Term Professor of Management at the University of Colorado at
Denver. He is past chair of the HR division of the Academy of Management and past president
of the Society for Industrial and Organizational Psychology. An elected fellow of the Academy of
Management, he received the Distinguished Career award from the Academy’s HR division in
2000 and an honorary doctorate from the University of Geneva (Switzerland ) in 2004. Currently,
he serves on the boards of directors of CPP, Inc., Society for Human Resource Management
Foundation, and the Academy of Management.
J. T. (Ted) Childs Jr. is IBM’s vice president, global workforce diversity, with worldwide responsibility for workforce diversity programs and policies. He is a graduate of West Virginia State
College and a member of the board of directors and a past president of the university’s Foundation. He is also a member of the Executive Leadership Council and the Conference Board’s Work
Force Diversity Council. Childs has served on various councils including the New York State
Governor’s Advisory Council on Child Care, the White House Conference on Aging, and the
U.S. Treasury Secretary’s Working Group on Child Care.
James G. Clawson taught for three years at the Harvard Business School before joining the Darden Graduate School of Business at the University of Virginia in 1981. He has consulted with a
number of corporations and organizations on issues of organizational design, management development, career management, managing change, leadership development, and human resource
Contributors
v
management. Dr. Clawson designed and led several of the University of Virginia’s Darden School
executive education programs. His most recent books are Level Three Leadership: Getting Below
the Sur face, Second Edition and Practical Problems in Organizations: Cases in Leadership, Organization Behavior, and Human Resources.
Jean-François Coget is an assistant professor of management at HEC School of Management,
Paris. He earned his PhD from the Anderson School at UCLA. His research aims at understanding intuitive sense-making and leadership under stress. It integrates previously unconnected f ields
in psychology such as cognition, memory, emotion processes, regulation, and decision making. His
goal is to further a much needed paradigm shift in psychology and management in which rational and nonrational processes will be integrated.
Debra J. Cohen, SPHR, is the chief knowledge off icer for the Society for Human Resource
Management and is responsible for the Society’s Information Center and Research Department.
She has oversight responsibility for the HR Certif ication Institute (HRCI) and the SHRM Foundation. Prior to joining SHRM, Cohen spent 15 years as an academician, most recently at George
Washington University. She has published over 30 articles in journals such as Personnel Psychology, Human Resource Development Quarterly, Journal of Management, and Human Resource Management Journal.
Samuel A. Culbert is professor of management at UCLA’s Anderson Graduate School of Management and an experienced organization and executive consultant. His views are outspoken,
bold, and well respected, and he has received a McKinsey award for best Har vard Business Review
article and an AAP award for best business and management book. His writings include “The
Organization Trap,” “The Invisible War: Pursuing Self-Interests at Work,” “Radical Management,” “Mind-Set Management,” and “Don’t Kill the Bosses!” The latter, his most recent, emphasizes the importance of two-sided accountability in the workplace.
Steve Darien is a Principal in the Cabot Advisory Group, providing organizations with strategic HR management advice on a variety of critical issues including organizational design, succession planning, board relationships, employee communications, strategic planning, and HR
technology. As head of Human Resources for Merck & Co., Inc., he was responsible for all areas
of human resources management including: employment and placement, labor relations, employee
communications, compensation and benef its, executive succession, training and development,
human resources information systems, aff irmative action, technology assessment, and productivity improvement.
Robert D. Dewar is associate professor of management and organizations at the Kellogg School
of Management. He is a member of the American Academy of Management and has served on the
editorial boards of the Academy of Management Journal and the Administrative Science Quarterly.
From 1980 to 1988, Dewar served as chairman of the organizational behavior department at the
Kellogg School of Management. His areas of expertise include the implementation of strategy
through design of organizational systems and delivering customer service. Dewar frequently consults with major corporations.
Ellen A. Drost is an international management and research development consultant. Until
recently, Drost was on the faculty at American University. She has authored numerous articles,
papers, cases, and chapters on international HR management, cross-cultural leadership, international training and development, and business practices in Mexico. She has consulted to several multinational corporations, benchmarked Mexican manufacturing and service organizations,
and conducted executive education programs in Mexico and Taiwan. Drost is on the board of
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Contributors
Community-Based Learning Solutions, a nonprof it organization that focuses on environmental
and service learning.
Lee Dyer is professor of human resource studies at the ILR School, Cornell University. His
teaching and research interests currently focus on agile enterprises. He has been an active contributor to the HR f ield since receiving his PhD at the University of Wisconsin-Madison in 1971.
He was inducted into the National Academy of Human Resources in 1993 and awarded the Herbert G. Heneman Jr. Career Achievement Award by the HR division of the Academy of Management in 2003 and the Michael R. Losey Human Resource Research Award by SHRM in 2004.
Bruce Ellig, SPHR, is an author, consultant, and speaker in the area of human resources. He
had worked as the corporate vice president of employee resources at Pf izer, Inc. Mr. Ellig has
been associated with the Society for Human Resource Management for several years in various
capacities, including chair of the board of Directors in 1966. He is a past president of the New
York Personnel Management Association and currently a fellow of the National Academy of
Human Resources. He holds a BBA and an MBA from the University of Wisconsin.
Jeff Ericksen is a PhD candidate at the ILR School, Cornell University. His dissertation focuses
on the relationships among HR management principles, HR scalability, and f irm performance in
small businesses.
Ursula F. Fairbairn is executive vice president of Human Resources and Quality of American Express Company with global responsibility for HR business unit support, recruiting and staff ing, all
compensation, benef its, diversity, employee and executive development, employee relations, organizational and succession planning, health services, and HR technologies/operations. She also serves
as the executive resource for the board of directors’ Compensation & Benef its Committee. Prior to
joining American Express, Mrs. Fairbairn was senior vice president of Human Resources at Union
Pacif ic Corporation, where she had similar corporate-wide responsibilities from 1990 to 1996.
Jac Fitz-enz is acknowledged as the “father” of human capital strategy and benchmarking.
Twenty-f ive years ago he carried out the original research on human resources measurement and
followed that by producing the f irst national human capital metrics report in 1985. Before retiring as founder and chairman of Saratoga Institute in 2002 he led the development of the world’s
most comprehensive human capital benchmark database. He has trained more than 80,000 managers in 40 countries. Dr. Fitz-enz has published over 170 articles, reports and book chapters and
is the only two-time recipient of the SHRM Book of the Year Award.
Eric G. Flamholtz is professor of management in the Anderson School of Management at UCLA,
where he has taught and done research in the areas of accounting, HR management, and entrepreneurial management. He is also president of Management Systems Consulting Corporation, which
he cofounded in 1978 and where he focuses on organizational development and HR management.
He received his PhD degree from the University of Michigan in organizational behavior and
HR management. His most recent books (coauthored ) include Changing the Game: Managing Organizational Transformations of the First, Second, and Third Kinds (Oxford University Press, 1998)
and Growing Pains: Transitioning from Entrepreneurship to Professional Management ( Jossey-Bass
Publishers, 2000).
Mirian M. Graddick-Weir is executive vice-president of HR at AT&T. She is responsible for
the design, planning, and administration of all HR functions including compensation, benef its,
recruiting, and training for AT&T’s 54,000 employees. In 2003, the Society of Psychologists in
Management named Graddick-Weir the Distinguished Psychologist in Management award recip-
Contributors
vii
ient. In 2001, she was named a fellow to the National Academy of Human Resources. In 2000,
she was named HR Executive of the Year by HR Executive magazine.
Lynda Gratton is professor of management practice at London Business School. She directs the
school’s strategic HR program to which participants from over 30 countries come. Her books
include Living Strategy ( FT Prentice Hall, 2000) and The Democratic Enterprise ( FT Prentice
Hall, 2004). She is currently preparing a book provisionally called Integrating the Enterprise.
Patricia J. Harned is president of the Ethics Resource Center ( ERC), a nonprof it organization
dedicated to the development, implementation, and assessment of ethics programs across business,
nonprof it, and educational sectors. Harned received her PhD from the University of Pittsburgh and
has authored several works including Creating a Workable Company Code ( ERC, 2003), Common
Sense & Ever yday Ethics ( ERC, 2003), Partnering Character Education and Conf lict Resolution
( Kappa Delta Pi Record, 1999), and The Critical Nature of Professional Development for the Young
Professional, New Directions for Student Ser vices ( Jossey-Bass, 1999). Harned serves on the editorial board of Public Integrity.
Frances Hesselbein is the chairman of the board of governors of the Leader to Leader Institute,
formerly the Drucker Foundation. Mrs. Hesselbein was awarded the Presidential Medal of Freedom, the United States of America’s highest civilian honor, in 1998. In 2002, Mrs. Hesselbein was
the f irst recipient of the Dwight D. Eisenhower National Security Series Award for her service
with the U.S. Army. She is the author of Hesselbein on Leadership, published in August of 2002.
Be, Know, Do: Leadership the Army Way, introduced by General Eric K. Shinseki and Frances
Hesselbein, was published in February of 2004.
Gordon Hewitt is distinguished visiting professor of international business and corporate strategy
at Michigan Business School. His interests focus on creating new strategic and organizational capability to compete in dynamic and complex markets. He has conducted major strategy and educational programs for f irms such as Sony, IBM, AstraZeneca, UBS, and Microsoft. In his native
Scotland, Gordon is on the International Advisory Board of Scottish Enterprise and chairman of
court at Abertay University, Dundee.
Paul Hirsch is the James Allen Professor of Strategy and Organization and chair of the Management and Organization Department at Northwestern University’s Kellogg School of Management.
Hirsch f irst called attention to the issues of downsizing and restructuring in his book Pack Your
Own Parachute (Addison Wesley, 1988) and continues to study the issues of organizational learning and change. He teaches in the Executive Programs of the Kellogg School, coedits the Journal
of Management Inquir y, and received the “Distinguished Scholar” award from the Academy of
Management’s Division of Organization and Management Theory.
John Hofmeister has served as HR Director for Royal Dutch/Shell Group of Companies since
1997. Prior to Shell, Hofmeister served as VP International Human Resources, based in Hong
Kong, for AlliedSignal, Inc. (now Honeywell) and was also the VP Human Resources for AlliedSignal Aerospace, which he joined in 1992. From 1988 John worked at Nortel’s Switching
Business as HR Director and later became VP Human Resources for Nortel’s U.S. businesses. He
is a Fellow of the National Academy of Human Resources and is currently chairman of the Advisory Committee of the Centre for Advanced Human Resources Studies at Cornell University.
Mark A. Huselid is professor of HR management in the School of Management and Labor Relations (SMLR) at Rutgers University. Huselid has published and consulted widely on the linkages among workforce management and measurement systems, strategy execution, and f irm
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Contributors
performance. His book The HR Scorecard: Linking People, Strategy, and Per formance (with Brian
Becker and Dave Ulrich) was published in 2001 by the HBS Press. His new book (with Brian
Becker and Dick Beatty), The Workforce Scorecard: Managing Human Capital to Execute Strategy,
will be published by the HBS Press in 2005.
William Joyce is professor of strategy and organization at the Tuck School of Business at Dartmouth College.
Edward E. Lawler III is distinguished professor of business and director of the Center for Effective Organizations in the Marshall School of Business at the University of Southern California. He
has been honored as a top contributor to the f ields of organizational development, HR management,
organizational behavior, and compensation. He is the author of over 300 articles and 35 books. His
most recent books include Rewarding Excellence, Corporate Boards: New Strategies for Adding Value
at the Top, Organizing for High Per formance, Treat People Right, Creating a Strategic Human Resources Organization, and Human Resources Business Process Outsourcing ( Jossey Bass, 2004).
David Lewin is the Neil Jacoby Professor of Management, Human Resources and Organizational Behavior at the UCLA Anderson School of Management where he is also senior associate
dean for the MBA program. A specialist in HR management and industrial relations, he has published 17 books and more than 150 articles in scholarly and professional journals. Among his recent books are International Perspectives and Challenges in Human Resource Management and
Human Resource Management: An Economic Approach (Howard W. Sims & Co, 1994). Lewin is
a fellow of the National Academy of Human Resources.
Michael R. Losey, SPHR, is the past president and CEO of the Society for Human Resource
Management (SHRM). Before being named to the Society’s top position in 1990, Losey served
30 years in HR management and executive-level positions with two Fortune corporations. Losey
has been active in international human resources and is a past president of the North American
Human Resource Management Association (NAHRMA) and the World Federation of Personnel
Management Association ( WFPMA). Mr. Losey has also served on the SHRM board of directors
and the National Academy of Human Resources, which he helped established. President of
MikeLosey.com, Mr. Losey has authored more than 60 articles, coedited Tomor row’s HR Management ( John Wiley & Sons, 1997), and speaks frequently on HR issues. He is Emeritus Advisor to Monster Worldwide and serves on the advisory boards of Business and Legal Reports and
Holmes Corporation.
Susan R. Meisinger, SPHR, is president and chief executive off icer of the Society for Human
Resource Management (SHRM), the world’s largest association devoted to human resource
management. Meisinger, who has served as president and CEO since March of 2002, previously
held the position of executive vice president and chief operating off icer of SHRM from 1999
to 2002. She also served as senior vice president from 1997 to 1999 and as vice president of Government and Public Affairs from 1987 to 1997. Prior to joining the Society, Meisinger served
as deputy under secretary for the Employment Standards Administration ( ESA) in the U.S. Department of Labor. Currently, Meisinger is a member of the board of directors for SHRM
as well as the Human Resource Certif ication Institute (HRCI), an aff iliate of SHRM, and
the Ethics Resource Center, a nonprof it devoted to fostering ethical practices in individuals
and organizations.
Grant Miles is associate professor of management in the College of Business Administration at the
University of North Texas. He received his PhD from The Pennsylvania State University. His re-
Contributors
ix
search interests are focused primarily on organizational adaptation and the role of knowledge, learning, and collaboration in the adaptive process. His research has been published in both academic and
practitioner journals including the Academy of Management Journal, Strategic Management Journal,
and California Management Review.
Raymond E. Miles is professor emeritus and the former dean of the Haas School of Business at
the University of California, Berkeley. He has written f ive books and over 50 articles and chapters drawing on his research on managerial leadership, organizational strategy and structure, multif irm network organizations, and the investments essential to the development of collaborative
capability within and across organizations. He has consulted with numerous f irms and agencies in
the United States and abroad, and he has been a board member of two NYSE-listed corporations.
Douglas S. Newburg is on the faculty of the Department of Surgery at the University of Virginia
Medical School. Dr. Newburg was recently named to the Academy of Distinguished Medical Educators at the University of Virginia. As a consultant, Dr. Newburg has shared his work with executives from dozens of major corporations. He has also worked with athletes and coaches at the
collegiate, professional, and Olympic levels. He has authored or coauthored articles and chapters in
several business publications as well Olympic Coach magazine. Dr. Newburg has a PhD in sport
psychology from the University of Virginia.
Nitin Nohria is Richard P. Chapman Professor of Business Administration at the Harvard Business School. His teaching and research centers on leadership, corporate accountability, and organizational change. Coauthor of 10 books, his most recent include W hat Really Works: The 4+2
Formula for Sustained Business Success, Changing Fortunes: Remaking the Industrial Corporation
(Harper Business, 2003) and Driven: How Human Nature Shapes Our Choices( Jossey Bass, 2002).
He is also the author of over 75 journal articles, book chapters, and teaching cases.
Coleman Peterson is president/CEO of Hollis Enterprises, LLC, formed in May 2004 following Peterson’s retirement as the executive vice president of people for Wal-Mart Stores, Inc. At
Wal-Mart, Peterson had the distinction of being chief HR off icer of the world’s largest private
workforce—Wal-Mart’s 1.5 million “associates” worldwide. Wal-Mart is a $256 billion a year retailer and was named as the 2003 and 2004 “America’s #1 Most Admired Company” by Fortune
magazine. It is presently the number one Fortune 500 Company.
Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate
School of Business, Stanford University. He is the author or coauthor of 10 books, including The
Human Equation: Building Prof its by Putting People First and The Knowing-Doing Gap: How
Smart Companies Turn Knowledge Into Action (Harvard Business Press, 2000). Pfeffer serves on
the boards of directors of Actify, Audible Magic, SonoSite, and Unicru. He has presented seminars in 27 countries as well as for numerous organizations in the United States.
Vladimir Pucik is professor of international HR and strategy at IMD. Born in Prague, he received his PhD from Columbia University. Before IMD, he held academic positions at Cornell
University and the University of Michigan. His research interests focus on global HR strategies
and people issues in international acquisitions and strategic alliances. Pucik teaches regularly in
executive development programs in Europe, the United States, and Asia and has consulted and
conducted workshops for major corporations worldwide.
Peter M. Ramstad is executive vice president for strategy and f inance at Personnel Decisions
International (PDI). In addition to his leadership role at PDI, Ramstad has done extensive research
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Contributors
in HR strategy and measurement. He is a frequent faculty member for executive education events
and speaker at professional conferences. He holds research conferences with faculty from leading
institutions to study how people create value and how that value can be measured.
Hayagreeva Rao is the Richard L. Thomas Distinguished Professor of Leadership and Organizational Change at Northwestern University. Rao has published widely in the f ields of management and sociology and studies the social and cultural causes of organizational change. He serves
as the associate editor of Administrative Science Quarterly and teaches courses on organizational
change and managing people for competitive advantage to MBA and executive audiences. He has
consulted with and conducted executive workshops with executives for organizations such as the
American Cancer Society, British Petroleum, Coca-Cola, Group Suez, Honeywell, IBM, MassMutual, and Seyfarth and Shaw.
Bruce Roberson is the executive vice president of marketing and sales at Safety-Kleen in Texas.
Previously, he was a partner for 11 years at McKinsey & Company in Dallas.
Russ Roberts is a consultant, professor, and board member. He helps clients turn around declining or stagnant performance, accelerate prof itable growth, and navigate revolutionary market
and organizational change. He assists his clients in clarifying and carrying out their business strategies, building effective organizations, and developing the capabilities and cultures essential to
achieving their goals. Roberts is also an adjunct professor at the Kellogg School of Management
at Northwestern University, where he teaches consulting frameworks and practice.
Libby Sartain, SPHR, HR and chief people off icer at Yahoo! Inc., is responsible for leading
Yahoo! Inc.’s global HR efforts and managing and developing the HR team. Prior to joining
Yahoo! in August 2001, Sartain was vice president of people at Southwest Airlines, where she led
all HR functions including employment, training, benef its, and compensation. Sartain also served
as chairman of the Society for Human Resource Management in 2001 and was named fellow of
the National Academy of Human Resources in 1998.
Craig Eric Schneier is executive vice president of HR at Biogen Idec in Cambridge, Massachusetts, the world’s third largest biotechnology company. Prior to joining Biogen Idec, Schneier
was president of his own management consulting f irm in Princeton, New Jersey, where he provided consulting services to over 70 of the Fortune 100 companies, such as GE, JPMorganChase,
General Motors, and Merck, as well as several of the largest European and Asian f irms.
Patricia Seemann is CEO of Sphere Advisors (www.sphereadvisors.com), where she specializes
in advising CEOs on how to deal with issues concerning power, trust, and politics. Her background is in large-scale organizational collaboration and the integration of intangibles. She has
served in numerous executive positions, most recently on the management board of Zurich Financial Services as the head of group communications. She is also the founder and CEO of her
own consulting f irm, Group21, which specializes in advising CEOs and senior executives on intellectual capital.
Norm Smallwood is founder, along with Dave Ulrich, and president of Results-Based Leadership ( RBL), a collective of broadly experienced management educators and consultants whose
clients include Ford, Glaxo-Smithkline, Hallmark, Harley-Davidson, Intercontinental Hotel
Group, Intel, and Nike. He is a coauthor with Dave Ulrich of three books: Results-Based Leadership, W hy the Bottom Line Isn’t (Harvard Business Press, 1999) and The Change Champion’s
Field Guide: Strategies and Tools for Leading Change in Your Organization ( Best Practices Pub-
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xi
lications, 2003). Norm sits on the faculty at the University of Michigan Business School’s Executive Education Center.
Scott A. Snell is Professor of Human Resource Studies and Director of Executive Education in
the School of Industrial and Labor Relations at Cornell University. He received a BA in Psychology from Miami University, as well as MBA and PhD degrees in Business Administration
from Michigan State University. Prior to joining the faculty at Cornell, Dr. Snell was on the faculty of business at Penn State University. Professor Snell has worked with companies such as
AT&T, GE, IBM, Merck, and Shell to address the alignment of human resource systems with
strategic initiatives such as globalization, technological change, and knowledge management.
Charles C. Snow is the Mellon Foundation Professor of Business Administration and chair of the
department of management and organization in the Smeal College of Business at Pennsylvania
State University. His research interests are in the areas of competitive strategy, new forms of organizing, and industry evolution. He has taught management subjects to students and managers
throughout the world.
Lea Soupata, senior vice president for UPS, manages an HR organization that serves nearly
357,000 employees worldwide. She has been a member of the UPS management committee since
1995 and a member of the UPS board of directors since 1998. Committed to maintaining UPS’s
reputation as an employer of choice, Soupata oversees the company’s strategy in training, developing, and retaining a diverse and highly skilled workforce. Soupata serves as chair of the UPS
Foundation, the company’s charitable arm, and has been active in a number of community services programs, including United Way.
Mary B. Teagarden is professor of global strategy at Thunderbird, The Garvin School of International Management. Her pioneering cross-cultural management f ieldwork on knowledge
transfer and strategic HR management has appeared in over 60 articles, chapters, and cases. She
has served on the editorial boards of seven journals and as Center for International Business Education and Research (CIBER) fellow and research director. She has provided consulting and executive development services to more than 30 Fortune 500 companies and governmental agencies
in Mexico, Malaysia, Colombia, Albania, and the People’s Republic of China.
Thomas Thivierge is currently the director of global succession planning for General Motors.
He has worked for GM for 19 years. Prior to his current assignment, he held positions as the director of talent acquisition for GM’s North American Operations and as the director of HR for
GM’s operations in Québec, Canada. He received a BA in history from Yale University and an
MBA from Michigan State University, majoring in HR.
Fons Trompenaars is the world authority on Managing Cultural Diversity for prof itability. As
Managing Director of Trompenaars Hampden-Turner Intercultural Management Consulting (previously known as the Centre for International Business Studies), he works with major global corporations to benef it from the vast opportunities presented by cultural differences. Dr. Trompenaars has
worked for the Royal Dutch Shell Group handling operations in nine different countries during his
15 years of research. He now develops programs for cross-cultural management that empower organizations throughout the business world. A highly acclaimed author of seven books and many articles,
Dr. Trompenaars’ books include Riding the Waves of Culture and 21 Leaders for the 21st Century.
Anne S. Tsui is Motorola Professor of International Management at Arizona State University.
Prior to that, she was at the Hong Kong University of Science and Technology (1995 to 2003),
xii
Contributors
the University of California, Irvine (1988 to 1995), and Duke University (1981 to 1988). She
was the fourteenth editor of the Academy of Management Journal, founding president of the International Association for Chinese Management Research (www.iacmr.org), and founding editor of Management and Organizat ion Re vie w ( MOR), a journal dedicated to publishing
China-related management and organization research.
Dave Ulrich has been named by BusinessWeek as the top guru in management education. He has
written or coauthored over 100 articles and 12 books, including Results-Based Leadership (Harvard Business Press, 1999), W hy the Bottom Line Isn’t! ( John Wiley & Sons, 2003), and The HR
Value Proposition (Harvard Business Press, 2005), and is a Professor at the University of Michigan School of Business Administration. Ulrich serves on Herman Miller board and has consulted
with over half of the Fortune 200.
Mary Ann Von Glinow is director of the Center for International Business Education and Research (CIBER) at Florida International University. Von Glinow is vice president of the Academy
of International Business and department editor of JIBS. She has authored over 100 journal articles
and 11 books. Her most recent include Organizational Learning Capability (Oxford University
Press, 1998), a popular textbook. Von Glinow was the 1994/1995 president of the Academy of Management and is a fellow of that association, as well as the Pan Pacif ic Business Association.
Peter Woollimas is a partner with Trompenaars Hampden-Turner Intercultural Management
Consulting and is also Professor of International Business at the Ashcroft International Business
School, Anglia University, United Kingdom, having formerly been Professor of Management at
the East London Business School in the United Kingdom. He has worked extensively as an academic and practitioner management consultant throughout the world with many leading organizations and management gurus and is visiting professor at several international institutions.
Patrick M. Wright is professor of HR management and director of the Center for Advanced
Human Resource Studies (CAHRS) in the School of Industrial and Labor Relations, Cornell
University. Wright teaches, conducts research, and consults in the area of strategic HR management. He has published over 60 research articles and book chapters, serves on seven editorial
boards, and serves on the boards of directors for both the Society for Human Resource Management Foundation and World at Work. He has done executive development and consulting work
for over 50 corporations.
Joshua B. Wu is an obstetrics doctoral student in the department of management, W. P. Carey
School of Business, Arizona State University. His current research interests include self- and
collective-eff icacy, employment relationship, performance feedback, and coping with job loss. His
teaching interests include organizational behavior and cross-cultural management. Prior to joining the doctoral program, Wu was an HR consultant at TMP Worldwide and Hewitt Associates.
Arthur Yeung is Philips Chair Professor of HRM at China Europe International Business School
and a professor at the University of Michigan Business School. Before his return to academia, he
served as CLO and subsequently chief HR off icer of Acer, a leading global PC f irm. Yeung’s research focuses on strategic HR management, organizational transformation, and leadership development. He serves as associate editor of HRM Journal and advisory board member of HBR (China)
Journal. In addition to sitting on the board of a publicly listed f irm, he is advisor to several leading Asian f irms in Taiwan and Mainland China.
Contents
Introduction
The Future of Human Resources xix
Michael R. Losey, Sue Meisinger, and Dave Ulrich
Section I
Understanding and
Managing People 1
Chapter 1
Will There Really Be a Labor Shortage?
Peter Cappelli
5
Chapter 2
The Motivator’s Dilemma 15
James G. Clawson and Douglas S. Newburg
Chapter 3
Anticipating Change: Will There Be a Labor Shortage?
Michael R. Losey
Chapter 4
Get, Keep, Grow 38
Coleman Peterson
Chapter 5
The New Employment Relationship versus the Mutual
Investment Approach: Implications for Human
Resource Management 44
Anne S. Tsui and Joshua B. Wu
xiii
23
xiv
Contents
Section II
Invest in the Next Generation of
Human Resource Professionalism 55
Chapter 6
The Future Human Resource Professional’s Career Model
Kathleen Barclay and Thomas Thivierge
57
Chapter 7
Human Resource Education: A Career-Long Commitment
Debra J. Cohen
63
Chapter 8
Life after Outsourcing: Lessons Learned and the Role of Human
Resources as a Strategic Business Partner 71
Mirian M. Graddick-Weir
Chapter 9
The Four Cs of the HR Profession: Being Competent, Curious,
Courageous, and Caring about People 78
Susan R. Meisinger
Chapter 10
Differentiation through People—How Can HR Move beyond
Business Partner? 86
Geof f Armstrong
Section III
Learn to Master and Play
New Roles 93
Chapter 11
The Chief Integrative Leader: Moving to the Next Economy’s
HR Leader 95
Bruce J. Avolio
Chapter 12
From Business Partner to Driving Business Success: The Next
Step in the Evolution of HR Management 103
Wayne F. Cascio
Chapter 13
Workforce Diversity: A Global HR Topic That Has Arrived
J. T. ( Ted) Childs Jr.
110
Contents
Chapter 14
“Not Just Any Seat at the Table”
Steve Darien
xv
119
Chapter 15
What Distinguishes the Outstanding HR Executives from
the Others 126
Bruce Ellig
Chapter 16
Evolution and Revolution in the Twenty-First Century:
Revolutionary New Rules for Organizations and Managing
Human Resources 134
Russ Roberts and Paul Hirsch
Chapter 17
From Human Resources Management to
Organizational Effectiveness 144
Edward E. Lawler III
Section IV
Discern, Create, and Adapt Culture
to Business Conditions 153
Chapter 18
HR as a Strategic Partner: Culture Change as a Case Study
Ursula F. Fairbairn
Chapter 19
Changing Mental Models: HR’s Most Important Task
Jef frey Pfef fer
155
163
Chapter 20
Building a Market-Focused Culture 172
Hayagreeva Rao and Robert D. Dewar
Chapter 21
Branding from the Inside Out: HR’s Role as Brand Builder
Libby Sartain
Chapter 22
The Winning Team: A Strategic Imperative
Lea Soupata
189
181
xvi
Contents
Section V
Rethink Organizations as Capabilities,
Not Structures 195
Chapter 23
Workforce Strategy: A Missing Link in HR’s Future Success
Richard W. Beatty and Craig Eric Schneier
199
Chapter 24
Connecting Strategy and HR: Establishing a New
Logic of Partnership 208
Gordon Hewitt
Chapter 25
What Really Works? HR’s Role in Building the 4+2 Organization
William Joyce, Nitin Nohria, and Bruce Roberson
Chapter 26
Human Resources’ New ROI: Return on Intangibles
Dave Ulrich and Norm Smallwood
217
224
Chapter 27
In Pursuit of Marketplace Agility: Applying Precepts of Self-Organizing
Systems to Optimize Human Resource Scalability 233
Lee Dyer and Jef f Ericksen
Chapter 28
Creating the Capability for Collaborative Entrepreneurship: HR’s
Role in the Development of a New Organizational Form 242
Raymond E. Miles, Grant Miles, and Charles C. Snow
Chapter 29
Partner or Guardian? HR’s Challenge in Balancing Value
and Values 248
Patrick M. Wright and Scott A. Snell
Section VI
See HR as a Decision Science and
Bring Discipline to It 257
Chapter 30
Science Explodes Human Capital Mythology
Jac Fitz-enz
261
Contents
xvii
Chapter 31
Human Resource Accounting, Human Capital Management, and the
Bottom Line 268
Eric G. Flamholtz
Chapter 32
Improving Human Resources’ Analytical Literacy: Lessons
from Moneyball 278
Mark A. Huselid and Brian E. Becker
Chapter 33
The Dual Theory of Human Resource Management and Business
Performance: Lessons for HR Executives 285
David Lewin
Chapter 34
Talentship, Talent Segmentation, and Sustainability: A New HR
Decision Science Paradigm for a New Strategy Definition 293
John W. Boudreau and Peter M. Ramstad
Section VII
Create Mutually
Collaborative Ventures 305
Chapter 35
Teamwork: The New Emphasis on Two-Sided Accountability
Samuel A. Culbert and Jean-Franc¸ ois Coget
Chapter 36
Managing Cooperatively within Organizations
Lynda Gratton
Chapter 37
Power, the Last Corporate Taboo
Patricia Seemann
307
312
323
Section VIII
Responding to Social Expectations
and Public Policy and the Renewed
Importance of Ethics 331
Chapter 38
A Challenge to HR: Building the Company’s External Dimension
Richard A. Beaumont
333
Contents
xviii
Chapter 39
Leading Change: An Imperative of Leadership
Frances Hesselbein
Chapter 40
When Ethics Calls the HR Helpline
Patricia J. Harned
341
348
Section IX
Live Globally, Act Locally 357
Chapter 41
Global and Local Balance in Human Resources Leadership
John Hofmeister
Chapter 42
Global HR as Competitive Advantage: Are We Ready?
Vladimir Pucik
361
370
Chapter 43
A New Paradigm for HR: Dilemmas in Employing and
Managing the Resourceful Human 378
Fons Trompenaars and Peter Woollimas
Chapter 44
Counterintuitive Findings in International HRM Research and
Practice: When Is a Best Practice Not Best for Practice? 392
Mary Ann Von Glinow, Ellen A. Drost, and Mary B. Teagarden
Chapter 45
Becoming Business Partners in Chinese Firms:
Challenges and Opportunities 400
Arthur Yeung
Conclusion
Reality, Impact, and Professionalism 408
Michael R. Losey, Susan R. Meisinger, and Dave Ulrich
Index
415
Selected Titles from the Society for Human Resource
Management (SHRM®) 423
INTRODUCTION
The Future of
Human Resources
MICHAEL R. LOSEY, SUE MEISINGER, AND DAVE ULRICH
W
e set out to prepare this book because of our individual and collective passion about the human resources
profession. One would be hard pressed to find three people more committed to the HR profession. We each bring a unique perspective to this profession. With more than forty years’ experience in the profession, Mike
has held HR leadership roles in large corporations and also served as the
president and chief executive officer (CEO) of the Society for Human
Resource Management (SHRM), the world’s largest HR association.
Sue’s legal background has enabled her to inf luence public policy and the
legislative environment that HR operates in; she now serves as SHRM’s
president and CEO. Dave has written extensively about the theory and
role of human resources in helping organizations compete through their
capabilities and helping individuals perform through their abilities. Collectively, we believe that HR matters. We know that HR professionals
can make the difference between success and failure in an organization,
and that they affect the lives of the people they work with.
We also know that the profession is in transition, with changing demands, increased opportunities, and requirements for new and greater competencies. In the face of so much change, we decided to update the 1997
book, Tomorrow’s HR Management, and to explore future directions for
the profession.
We are pleased that we could work once again with our publisher John
Wiley & Sons, this time with Emily Conway, who assisted us almost daily.
But most of all, we are indebted to the diverse and talented authors who
were willing to share their perspectives on future opportunities, challenges,
trends, and requirements for the profession.
xix
xx
Introduction
Human Resource Management as
a Profession
In 1996, Thomas Stewart, the current editor of the Harvard Business Journal, wrote an article for Fortune magazine suggesting that HR was bureaucratic and ineffective, and added little to organizational success. Thus
it should be “blown up!” (Stewart, 1996).
Much has transpired since that article was published. At a recent SHRM
conference, Mr. Stewart led a program for the top HR professionals from
Fortune’s “100 Best Companies to Work For.” This is not to suggest he has
completely changed his mind about the impact, role, and effectiveness of
human resources. It is more likely that both Mr. Stewart and HR managers have concluded that the profession is here to stay and can become
more effective than it has been in the past.
Defining HR requirements is not an easy task given the dynamic rate of
change in the workplace. Since the early twentieth century, much has been
accomplished in identifying an HR body of knowledge that can be taught,
learned, and tested. More remains to be done before we can realize the potential of the profession.
This book is targeted to help achieve that goal.
Anticipating the Future—
Key to HR Success
It is essential for HR leaders to accurately anticipate the future and how
such changes may affect their accountability. Without the capacity to recognize and accurately plan for changes in the business landscape, coping
strategies cannot be proactive—they can only be reactive—and at a much
higher cost.
Given the accelerated changes occurring in today’s workplace, any HR
leader desiring to make a strategic contribution must look to the future
with more foresight and accuracy than ever before.
This is not an easy task. In this book, one author may suggest a specific
policy or pract
FUTU RE
HUMAN
RESOU RCE
OF
MANAGEMENT
64 THOUGHT LEADERS
EXPLORE THE CRITICAL HR ISSUES
OF TODAY AND
TOMORROW
EDITED BY
MICHAEL
SUE
DAVE
LOSEY
MEISINGER
ULRICH
Society for Human Resource Management
Alexandria, Virginia
USA
John Wiley & Sons, Inc.
THE
FUTU RE
HUMAN
RESOU RCE
OF
MANAGEMENT
64 THOUGHT LEADERS
EXPLORE THE CRITICAL HR ISSUES
OF TODAY AND
TOMORROW
EDITED BY
MICHAEL
SUE
DAVE
LOSEY
MEISINGER
ULRICH
Society for Human Resource Management
Alexandria, Virginia
USA
John Wiley & Sons, Inc.
Copyright © 2005 by Michael Losey, Sue Meisinger, and Dave Ulrich.
All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
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1
Contributors
Geoff Armstrong is Director General of the Chartered Institute of Personnel and Development,
the professional body with 120,000 members across the United Kingdom and Ireland. He also
serves as the elected president of the World Federation of Personnel Management Associations,
which works to raise standards of HR management globally through f ive continental federations
representing more than 70 national associations and 450,000 HR professionals.
He has worked internationally at board level in the automobile, engineering and banking industries, as well as serving on a range of government committees and working parties.
Bruce J. Avolio is the Clifton Chair in Leadership at the College of Business Administration at
the University of Nebraska-Lincoln ( UNL). Avolio is also director of the Gallup Leadership Institute, codirector of the UNL and Gallup MBA/MA program in executive leadership, and director of the PhD program with a specialization in leadership at the College of Business
Administration at UNL. His current research interests are in the authentic processes underlying
leadership development.
Kathleen S. Barclay was elected General Motors vice president in charge of global human resources in 1998. In addition to her 22 years with GM, Barclay performed HR roles for the Southland Corporation and the Allen-Bradley Company. Barclay was named a fellow with the National
Academy of Human Resources in 2000. She is a member of the National Academy of Human
Resources board of directors, the Cowdrick Group, the Michigan Virtual University board, and
the Detroit Women’s Economic Club.
Richard W. (Dick) Beatty, SPHR, is professor of human resource management at Rutgers University and a core faculty member at the University of Michigan’s Executive Education Center. He
has published several books and more than 100 articles and is associate editor of the journal Human
Resource Management. He was president of the Society for Human Resource Management Foundation and received the society’s book award. He is coauthor of The Workforce Scorecard: Human
Capital and Strategy Execution, to be published by Harvard Business School Press in 2005.
Richard A. Beaumont, founder and managing director of the RAB Group LLC, was formerly
president, CEO, and chairman of ORC Worldwide, and is now chairman emeritus. In more than
40 years of leadership in the f ield, he served as a consultant to major corporations, various branches
of the federal government, and state and local governments.
He also was deputy undersecretary of the U.S. Navy and senior vice president and member of
the board of directors of Amerada Hess Corporation. Early in his career, he was assistant director of research for the Hawaii Employers Council and director of administrative services for the
American Management Association. He is an emeritus member of the board of the Colgate Darden Graduate School of Business of the University of Virginia.
An author, editor, and researcher of materials on management organization and industrial relations, he is an editor of Industrial Relations to Human Resources and Beyond (M. E. Sharpe,
iii
iv
Contributors
2003). He was a member of the Formation Group of the National Academy of Human Resources,
to which he was elected a fellow in 1993.
He holds a bachelor’s degree from the University of California and a master’s degree from the
University of Hawaii.
Brian E. Becker is Professor of Human Resources, and Chairman of the Department of Organization and Human Resources, in the School of Management at the State University of New York
at Buffalo. His current research and consulting interests focus on the relationship between human
resources systems, strategy implementation, and f irm performance. He is coauthor, along with
Mark Huselid and Dave Ulrich, of The HR Scorecard (Harvard Business School Press, 2001). Along
with Mark Huselid and Richard Beatty, he is coauthor of the forthcoming book, The Workforce
Scorecard: Managing Human Capital to Execute Strategy (Harvard Business School Press).
John W. Boudreau is professor and research director at the Marshall School of Business and
Center for Effective Organizations at the University of Southern California, is recognized worldwide for breakthrough research and consulting that bridges human capital, talent, and sustainable
competitive advantage. A fellow of the National Academy of Human Resources, he has authored
over 50 books and articles that have been translated into multiple languages, won research awards
from the Academy of Management, and been featured in the Wall Street Journal, Fortune, and
BusinessWeek.
Peter Cappelli is the George W. Taylor Professor of Management at The Wharton School and
Director of Wharton’s Center for Human Resources. He is also a Research Associate at the National Bureau of Economic Research in Cambridge, Massachusetts, and currently serves as Senior
Advisor to the Government of Bahrain for Employment Policy. He has been a Guest Scholar at
the Brookings Institution, a German Marshall Fund Fellow, and a faculty member at MIT, the
University of Illinois, and the University of California at Berkeley. Professor Cappelli’s more recent research examined changes in employment relations in the United States; his publications
include Change at Work (Oxford University Press, 1997) and The New Deal at Work: Managing
the Market-Driven Workforce (Harvard Business School Press, 1999.)
Wayne F. Cascio is US Bank Term Professor of Management at the University of Colorado at
Denver. He is past chair of the HR division of the Academy of Management and past president
of the Society for Industrial and Organizational Psychology. An elected fellow of the Academy of
Management, he received the Distinguished Career award from the Academy’s HR division in
2000 and an honorary doctorate from the University of Geneva (Switzerland ) in 2004. Currently,
he serves on the boards of directors of CPP, Inc., Society for Human Resource Management
Foundation, and the Academy of Management.
J. T. (Ted) Childs Jr. is IBM’s vice president, global workforce diversity, with worldwide responsibility for workforce diversity programs and policies. He is a graduate of West Virginia State
College and a member of the board of directors and a past president of the university’s Foundation. He is also a member of the Executive Leadership Council and the Conference Board’s Work
Force Diversity Council. Childs has served on various councils including the New York State
Governor’s Advisory Council on Child Care, the White House Conference on Aging, and the
U.S. Treasury Secretary’s Working Group on Child Care.
James G. Clawson taught for three years at the Harvard Business School before joining the Darden Graduate School of Business at the University of Virginia in 1981. He has consulted with a
number of corporations and organizations on issues of organizational design, management development, career management, managing change, leadership development, and human resource
Contributors
v
management. Dr. Clawson designed and led several of the University of Virginia’s Darden School
executive education programs. His most recent books are Level Three Leadership: Getting Below
the Sur face, Second Edition and Practical Problems in Organizations: Cases in Leadership, Organization Behavior, and Human Resources.
Jean-François Coget is an assistant professor of management at HEC School of Management,
Paris. He earned his PhD from the Anderson School at UCLA. His research aims at understanding intuitive sense-making and leadership under stress. It integrates previously unconnected f ields
in psychology such as cognition, memory, emotion processes, regulation, and decision making. His
goal is to further a much needed paradigm shift in psychology and management in which rational and nonrational processes will be integrated.
Debra J. Cohen, SPHR, is the chief knowledge off icer for the Society for Human Resource
Management and is responsible for the Society’s Information Center and Research Department.
She has oversight responsibility for the HR Certif ication Institute (HRCI) and the SHRM Foundation. Prior to joining SHRM, Cohen spent 15 years as an academician, most recently at George
Washington University. She has published over 30 articles in journals such as Personnel Psychology, Human Resource Development Quarterly, Journal of Management, and Human Resource Management Journal.
Samuel A. Culbert is professor of management at UCLA’s Anderson Graduate School of Management and an experienced organization and executive consultant. His views are outspoken,
bold, and well respected, and he has received a McKinsey award for best Har vard Business Review
article and an AAP award for best business and management book. His writings include “The
Organization Trap,” “The Invisible War: Pursuing Self-Interests at Work,” “Radical Management,” “Mind-Set Management,” and “Don’t Kill the Bosses!” The latter, his most recent, emphasizes the importance of two-sided accountability in the workplace.
Steve Darien is a Principal in the Cabot Advisory Group, providing organizations with strategic HR management advice on a variety of critical issues including organizational design, succession planning, board relationships, employee communications, strategic planning, and HR
technology. As head of Human Resources for Merck & Co., Inc., he was responsible for all areas
of human resources management including: employment and placement, labor relations, employee
communications, compensation and benef its, executive succession, training and development,
human resources information systems, aff irmative action, technology assessment, and productivity improvement.
Robert D. Dewar is associate professor of management and organizations at the Kellogg School
of Management. He is a member of the American Academy of Management and has served on the
editorial boards of the Academy of Management Journal and the Administrative Science Quarterly.
From 1980 to 1988, Dewar served as chairman of the organizational behavior department at the
Kellogg School of Management. His areas of expertise include the implementation of strategy
through design of organizational systems and delivering customer service. Dewar frequently consults with major corporations.
Ellen A. Drost is an international management and research development consultant. Until
recently, Drost was on the faculty at American University. She has authored numerous articles,
papers, cases, and chapters on international HR management, cross-cultural leadership, international training and development, and business practices in Mexico. She has consulted to several multinational corporations, benchmarked Mexican manufacturing and service organizations,
and conducted executive education programs in Mexico and Taiwan. Drost is on the board of
vi
Contributors
Community-Based Learning Solutions, a nonprof it organization that focuses on environmental
and service learning.
Lee Dyer is professor of human resource studies at the ILR School, Cornell University. His
teaching and research interests currently focus on agile enterprises. He has been an active contributor to the HR f ield since receiving his PhD at the University of Wisconsin-Madison in 1971.
He was inducted into the National Academy of Human Resources in 1993 and awarded the Herbert G. Heneman Jr. Career Achievement Award by the HR division of the Academy of Management in 2003 and the Michael R. Losey Human Resource Research Award by SHRM in 2004.
Bruce Ellig, SPHR, is an author, consultant, and speaker in the area of human resources. He
had worked as the corporate vice president of employee resources at Pf izer, Inc. Mr. Ellig has
been associated with the Society for Human Resource Management for several years in various
capacities, including chair of the board of Directors in 1966. He is a past president of the New
York Personnel Management Association and currently a fellow of the National Academy of
Human Resources. He holds a BBA and an MBA from the University of Wisconsin.
Jeff Ericksen is a PhD candidate at the ILR School, Cornell University. His dissertation focuses
on the relationships among HR management principles, HR scalability, and f irm performance in
small businesses.
Ursula F. Fairbairn is executive vice president of Human Resources and Quality of American Express Company with global responsibility for HR business unit support, recruiting and staff ing, all
compensation, benef its, diversity, employee and executive development, employee relations, organizational and succession planning, health services, and HR technologies/operations. She also serves
as the executive resource for the board of directors’ Compensation & Benef its Committee. Prior to
joining American Express, Mrs. Fairbairn was senior vice president of Human Resources at Union
Pacif ic Corporation, where she had similar corporate-wide responsibilities from 1990 to 1996.
Jac Fitz-enz is acknowledged as the “father” of human capital strategy and benchmarking.
Twenty-f ive years ago he carried out the original research on human resources measurement and
followed that by producing the f irst national human capital metrics report in 1985. Before retiring as founder and chairman of Saratoga Institute in 2002 he led the development of the world’s
most comprehensive human capital benchmark database. He has trained more than 80,000 managers in 40 countries. Dr. Fitz-enz has published over 170 articles, reports and book chapters and
is the only two-time recipient of the SHRM Book of the Year Award.
Eric G. Flamholtz is professor of management in the Anderson School of Management at UCLA,
where he has taught and done research in the areas of accounting, HR management, and entrepreneurial management. He is also president of Management Systems Consulting Corporation, which
he cofounded in 1978 and where he focuses on organizational development and HR management.
He received his PhD degree from the University of Michigan in organizational behavior and
HR management. His most recent books (coauthored ) include Changing the Game: Managing Organizational Transformations of the First, Second, and Third Kinds (Oxford University Press, 1998)
and Growing Pains: Transitioning from Entrepreneurship to Professional Management ( Jossey-Bass
Publishers, 2000).
Mirian M. Graddick-Weir is executive vice-president of HR at AT&T. She is responsible for
the design, planning, and administration of all HR functions including compensation, benef its,
recruiting, and training for AT&T’s 54,000 employees. In 2003, the Society of Psychologists in
Management named Graddick-Weir the Distinguished Psychologist in Management award recip-
Contributors
vii
ient. In 2001, she was named a fellow to the National Academy of Human Resources. In 2000,
she was named HR Executive of the Year by HR Executive magazine.
Lynda Gratton is professor of management practice at London Business School. She directs the
school’s strategic HR program to which participants from over 30 countries come. Her books
include Living Strategy ( FT Prentice Hall, 2000) and The Democratic Enterprise ( FT Prentice
Hall, 2004). She is currently preparing a book provisionally called Integrating the Enterprise.
Patricia J. Harned is president of the Ethics Resource Center ( ERC), a nonprof it organization
dedicated to the development, implementation, and assessment of ethics programs across business,
nonprof it, and educational sectors. Harned received her PhD from the University of Pittsburgh and
has authored several works including Creating a Workable Company Code ( ERC, 2003), Common
Sense & Ever yday Ethics ( ERC, 2003), Partnering Character Education and Conf lict Resolution
( Kappa Delta Pi Record, 1999), and The Critical Nature of Professional Development for the Young
Professional, New Directions for Student Ser vices ( Jossey-Bass, 1999). Harned serves on the editorial board of Public Integrity.
Frances Hesselbein is the chairman of the board of governors of the Leader to Leader Institute,
formerly the Drucker Foundation. Mrs. Hesselbein was awarded the Presidential Medal of Freedom, the United States of America’s highest civilian honor, in 1998. In 2002, Mrs. Hesselbein was
the f irst recipient of the Dwight D. Eisenhower National Security Series Award for her service
with the U.S. Army. She is the author of Hesselbein on Leadership, published in August of 2002.
Be, Know, Do: Leadership the Army Way, introduced by General Eric K. Shinseki and Frances
Hesselbein, was published in February of 2004.
Gordon Hewitt is distinguished visiting professor of international business and corporate strategy
at Michigan Business School. His interests focus on creating new strategic and organizational capability to compete in dynamic and complex markets. He has conducted major strategy and educational programs for f irms such as Sony, IBM, AstraZeneca, UBS, and Microsoft. In his native
Scotland, Gordon is on the International Advisory Board of Scottish Enterprise and chairman of
court at Abertay University, Dundee.
Paul Hirsch is the James Allen Professor of Strategy and Organization and chair of the Management and Organization Department at Northwestern University’s Kellogg School of Management.
Hirsch f irst called attention to the issues of downsizing and restructuring in his book Pack Your
Own Parachute (Addison Wesley, 1988) and continues to study the issues of organizational learning and change. He teaches in the Executive Programs of the Kellogg School, coedits the Journal
of Management Inquir y, and received the “Distinguished Scholar” award from the Academy of
Management’s Division of Organization and Management Theory.
John Hofmeister has served as HR Director for Royal Dutch/Shell Group of Companies since
1997. Prior to Shell, Hofmeister served as VP International Human Resources, based in Hong
Kong, for AlliedSignal, Inc. (now Honeywell) and was also the VP Human Resources for AlliedSignal Aerospace, which he joined in 1992. From 1988 John worked at Nortel’s Switching
Business as HR Director and later became VP Human Resources for Nortel’s U.S. businesses. He
is a Fellow of the National Academy of Human Resources and is currently chairman of the Advisory Committee of the Centre for Advanced Human Resources Studies at Cornell University.
Mark A. Huselid is professor of HR management in the School of Management and Labor Relations (SMLR) at Rutgers University. Huselid has published and consulted widely on the linkages among workforce management and measurement systems, strategy execution, and f irm
viii
Contributors
performance. His book The HR Scorecard: Linking People, Strategy, and Per formance (with Brian
Becker and Dave Ulrich) was published in 2001 by the HBS Press. His new book (with Brian
Becker and Dick Beatty), The Workforce Scorecard: Managing Human Capital to Execute Strategy,
will be published by the HBS Press in 2005.
William Joyce is professor of strategy and organization at the Tuck School of Business at Dartmouth College.
Edward E. Lawler III is distinguished professor of business and director of the Center for Effective Organizations in the Marshall School of Business at the University of Southern California. He
has been honored as a top contributor to the f ields of organizational development, HR management,
organizational behavior, and compensation. He is the author of over 300 articles and 35 books. His
most recent books include Rewarding Excellence, Corporate Boards: New Strategies for Adding Value
at the Top, Organizing for High Per formance, Treat People Right, Creating a Strategic Human Resources Organization, and Human Resources Business Process Outsourcing ( Jossey Bass, 2004).
David Lewin is the Neil Jacoby Professor of Management, Human Resources and Organizational Behavior at the UCLA Anderson School of Management where he is also senior associate
dean for the MBA program. A specialist in HR management and industrial relations, he has published 17 books and more than 150 articles in scholarly and professional journals. Among his recent books are International Perspectives and Challenges in Human Resource Management and
Human Resource Management: An Economic Approach (Howard W. Sims & Co, 1994). Lewin is
a fellow of the National Academy of Human Resources.
Michael R. Losey, SPHR, is the past president and CEO of the Society for Human Resource
Management (SHRM). Before being named to the Society’s top position in 1990, Losey served
30 years in HR management and executive-level positions with two Fortune corporations. Losey
has been active in international human resources and is a past president of the North American
Human Resource Management Association (NAHRMA) and the World Federation of Personnel
Management Association ( WFPMA). Mr. Losey has also served on the SHRM board of directors
and the National Academy of Human Resources, which he helped established. President of
MikeLosey.com, Mr. Losey has authored more than 60 articles, coedited Tomor row’s HR Management ( John Wiley & Sons, 1997), and speaks frequently on HR issues. He is Emeritus Advisor to Monster Worldwide and serves on the advisory boards of Business and Legal Reports and
Holmes Corporation.
Susan R. Meisinger, SPHR, is president and chief executive off icer of the Society for Human
Resource Management (SHRM), the world’s largest association devoted to human resource
management. Meisinger, who has served as president and CEO since March of 2002, previously
held the position of executive vice president and chief operating off icer of SHRM from 1999
to 2002. She also served as senior vice president from 1997 to 1999 and as vice president of Government and Public Affairs from 1987 to 1997. Prior to joining the Society, Meisinger served
as deputy under secretary for the Employment Standards Administration ( ESA) in the U.S. Department of Labor. Currently, Meisinger is a member of the board of directors for SHRM
as well as the Human Resource Certif ication Institute (HRCI), an aff iliate of SHRM, and
the Ethics Resource Center, a nonprof it devoted to fostering ethical practices in individuals
and organizations.
Grant Miles is associate professor of management in the College of Business Administration at the
University of North Texas. He received his PhD from The Pennsylvania State University. His re-
Contributors
ix
search interests are focused primarily on organizational adaptation and the role of knowledge, learning, and collaboration in the adaptive process. His research has been published in both academic and
practitioner journals including the Academy of Management Journal, Strategic Management Journal,
and California Management Review.
Raymond E. Miles is professor emeritus and the former dean of the Haas School of Business at
the University of California, Berkeley. He has written f ive books and over 50 articles and chapters drawing on his research on managerial leadership, organizational strategy and structure, multif irm network organizations, and the investments essential to the development of collaborative
capability within and across organizations. He has consulted with numerous f irms and agencies in
the United States and abroad, and he has been a board member of two NYSE-listed corporations.
Douglas S. Newburg is on the faculty of the Department of Surgery at the University of Virginia
Medical School. Dr. Newburg was recently named to the Academy of Distinguished Medical Educators at the University of Virginia. As a consultant, Dr. Newburg has shared his work with executives from dozens of major corporations. He has also worked with athletes and coaches at the
collegiate, professional, and Olympic levels. He has authored or coauthored articles and chapters in
several business publications as well Olympic Coach magazine. Dr. Newburg has a PhD in sport
psychology from the University of Virginia.
Nitin Nohria is Richard P. Chapman Professor of Business Administration at the Harvard Business School. His teaching and research centers on leadership, corporate accountability, and organizational change. Coauthor of 10 books, his most recent include W hat Really Works: The 4+2
Formula for Sustained Business Success, Changing Fortunes: Remaking the Industrial Corporation
(Harper Business, 2003) and Driven: How Human Nature Shapes Our Choices( Jossey Bass, 2002).
He is also the author of over 75 journal articles, book chapters, and teaching cases.
Coleman Peterson is president/CEO of Hollis Enterprises, LLC, formed in May 2004 following Peterson’s retirement as the executive vice president of people for Wal-Mart Stores, Inc. At
Wal-Mart, Peterson had the distinction of being chief HR off icer of the world’s largest private
workforce—Wal-Mart’s 1.5 million “associates” worldwide. Wal-Mart is a $256 billion a year retailer and was named as the 2003 and 2004 “America’s #1 Most Admired Company” by Fortune
magazine. It is presently the number one Fortune 500 Company.
Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate
School of Business, Stanford University. He is the author or coauthor of 10 books, including The
Human Equation: Building Prof its by Putting People First and The Knowing-Doing Gap: How
Smart Companies Turn Knowledge Into Action (Harvard Business Press, 2000). Pfeffer serves on
the boards of directors of Actify, Audible Magic, SonoSite, and Unicru. He has presented seminars in 27 countries as well as for numerous organizations in the United States.
Vladimir Pucik is professor of international HR and strategy at IMD. Born in Prague, he received his PhD from Columbia University. Before IMD, he held academic positions at Cornell
University and the University of Michigan. His research interests focus on global HR strategies
and people issues in international acquisitions and strategic alliances. Pucik teaches regularly in
executive development programs in Europe, the United States, and Asia and has consulted and
conducted workshops for major corporations worldwide.
Peter M. Ramstad is executive vice president for strategy and f inance at Personnel Decisions
International (PDI). In addition to his leadership role at PDI, Ramstad has done extensive research
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Contributors
in HR strategy and measurement. He is a frequent faculty member for executive education events
and speaker at professional conferences. He holds research conferences with faculty from leading
institutions to study how people create value and how that value can be measured.
Hayagreeva Rao is the Richard L. Thomas Distinguished Professor of Leadership and Organizational Change at Northwestern University. Rao has published widely in the f ields of management and sociology and studies the social and cultural causes of organizational change. He serves
as the associate editor of Administrative Science Quarterly and teaches courses on organizational
change and managing people for competitive advantage to MBA and executive audiences. He has
consulted with and conducted executive workshops with executives for organizations such as the
American Cancer Society, British Petroleum, Coca-Cola, Group Suez, Honeywell, IBM, MassMutual, and Seyfarth and Shaw.
Bruce Roberson is the executive vice president of marketing and sales at Safety-Kleen in Texas.
Previously, he was a partner for 11 years at McKinsey & Company in Dallas.
Russ Roberts is a consultant, professor, and board member. He helps clients turn around declining or stagnant performance, accelerate prof itable growth, and navigate revolutionary market
and organizational change. He assists his clients in clarifying and carrying out their business strategies, building effective organizations, and developing the capabilities and cultures essential to
achieving their goals. Roberts is also an adjunct professor at the Kellogg School of Management
at Northwestern University, where he teaches consulting frameworks and practice.
Libby Sartain, SPHR, HR and chief people off icer at Yahoo! Inc., is responsible for leading
Yahoo! Inc.’s global HR efforts and managing and developing the HR team. Prior to joining
Yahoo! in August 2001, Sartain was vice president of people at Southwest Airlines, where she led
all HR functions including employment, training, benef its, and compensation. Sartain also served
as chairman of the Society for Human Resource Management in 2001 and was named fellow of
the National Academy of Human Resources in 1998.
Craig Eric Schneier is executive vice president of HR at Biogen Idec in Cambridge, Massachusetts, the world’s third largest biotechnology company. Prior to joining Biogen Idec, Schneier
was president of his own management consulting f irm in Princeton, New Jersey, where he provided consulting services to over 70 of the Fortune 100 companies, such as GE, JPMorganChase,
General Motors, and Merck, as well as several of the largest European and Asian f irms.
Patricia Seemann is CEO of Sphere Advisors (www.sphereadvisors.com), where she specializes
in advising CEOs on how to deal with issues concerning power, trust, and politics. Her background is in large-scale organizational collaboration and the integration of intangibles. She has
served in numerous executive positions, most recently on the management board of Zurich Financial Services as the head of group communications. She is also the founder and CEO of her
own consulting f irm, Group21, which specializes in advising CEOs and senior executives on intellectual capital.
Norm Smallwood is founder, along with Dave Ulrich, and president of Results-Based Leadership ( RBL), a collective of broadly experienced management educators and consultants whose
clients include Ford, Glaxo-Smithkline, Hallmark, Harley-Davidson, Intercontinental Hotel
Group, Intel, and Nike. He is a coauthor with Dave Ulrich of three books: Results-Based Leadership, W hy the Bottom Line Isn’t (Harvard Business Press, 1999) and The Change Champion’s
Field Guide: Strategies and Tools for Leading Change in Your Organization ( Best Practices Pub-
Contributors
xi
lications, 2003). Norm sits on the faculty at the University of Michigan Business School’s Executive Education Center.
Scott A. Snell is Professor of Human Resource Studies and Director of Executive Education in
the School of Industrial and Labor Relations at Cornell University. He received a BA in Psychology from Miami University, as well as MBA and PhD degrees in Business Administration
from Michigan State University. Prior to joining the faculty at Cornell, Dr. Snell was on the faculty of business at Penn State University. Professor Snell has worked with companies such as
AT&T, GE, IBM, Merck, and Shell to address the alignment of human resource systems with
strategic initiatives such as globalization, technological change, and knowledge management.
Charles C. Snow is the Mellon Foundation Professor of Business Administration and chair of the
department of management and organization in the Smeal College of Business at Pennsylvania
State University. His research interests are in the areas of competitive strategy, new forms of organizing, and industry evolution. He has taught management subjects to students and managers
throughout the world.
Lea Soupata, senior vice president for UPS, manages an HR organization that serves nearly
357,000 employees worldwide. She has been a member of the UPS management committee since
1995 and a member of the UPS board of directors since 1998. Committed to maintaining UPS’s
reputation as an employer of choice, Soupata oversees the company’s strategy in training, developing, and retaining a diverse and highly skilled workforce. Soupata serves as chair of the UPS
Foundation, the company’s charitable arm, and has been active in a number of community services programs, including United Way.
Mary B. Teagarden is professor of global strategy at Thunderbird, The Garvin School of International Management. Her pioneering cross-cultural management f ieldwork on knowledge
transfer and strategic HR management has appeared in over 60 articles, chapters, and cases. She
has served on the editorial boards of seven journals and as Center for International Business Education and Research (CIBER) fellow and research director. She has provided consulting and executive development services to more than 30 Fortune 500 companies and governmental agencies
in Mexico, Malaysia, Colombia, Albania, and the People’s Republic of China.
Thomas Thivierge is currently the director of global succession planning for General Motors.
He has worked for GM for 19 years. Prior to his current assignment, he held positions as the director of talent acquisition for GM’s North American Operations and as the director of HR for
GM’s operations in Québec, Canada. He received a BA in history from Yale University and an
MBA from Michigan State University, majoring in HR.
Fons Trompenaars is the world authority on Managing Cultural Diversity for prof itability. As
Managing Director of Trompenaars Hampden-Turner Intercultural Management Consulting (previously known as the Centre for International Business Studies), he works with major global corporations to benef it from the vast opportunities presented by cultural differences. Dr. Trompenaars has
worked for the Royal Dutch Shell Group handling operations in nine different countries during his
15 years of research. He now develops programs for cross-cultural management that empower organizations throughout the business world. A highly acclaimed author of seven books and many articles,
Dr. Trompenaars’ books include Riding the Waves of Culture and 21 Leaders for the 21st Century.
Anne S. Tsui is Motorola Professor of International Management at Arizona State University.
Prior to that, she was at the Hong Kong University of Science and Technology (1995 to 2003),
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Contributors
the University of California, Irvine (1988 to 1995), and Duke University (1981 to 1988). She
was the fourteenth editor of the Academy of Management Journal, founding president of the International Association for Chinese Management Research (www.iacmr.org), and founding editor of Management and Organizat ion Re vie w ( MOR), a journal dedicated to publishing
China-related management and organization research.
Dave Ulrich has been named by BusinessWeek as the top guru in management education. He has
written or coauthored over 100 articles and 12 books, including Results-Based Leadership (Harvard Business Press, 1999), W hy the Bottom Line Isn’t! ( John Wiley & Sons, 2003), and The HR
Value Proposition (Harvard Business Press, 2005), and is a Professor at the University of Michigan School of Business Administration. Ulrich serves on Herman Miller board and has consulted
with over half of the Fortune 200.
Mary Ann Von Glinow is director of the Center for International Business Education and Research (CIBER) at Florida International University. Von Glinow is vice president of the Academy
of International Business and department editor of JIBS. She has authored over 100 journal articles
and 11 books. Her most recent include Organizational Learning Capability (Oxford University
Press, 1998), a popular textbook. Von Glinow was the 1994/1995 president of the Academy of Management and is a fellow of that association, as well as the Pan Pacif ic Business Association.
Peter Woollimas is a partner with Trompenaars Hampden-Turner Intercultural Management
Consulting and is also Professor of International Business at the Ashcroft International Business
School, Anglia University, United Kingdom, having formerly been Professor of Management at
the East London Business School in the United Kingdom. He has worked extensively as an academic and practitioner management consultant throughout the world with many leading organizations and management gurus and is visiting professor at several international institutions.
Patrick M. Wright is professor of HR management and director of the Center for Advanced
Human Resource Studies (CAHRS) in the School of Industrial and Labor Relations, Cornell
University. Wright teaches, conducts research, and consults in the area of strategic HR management. He has published over 60 research articles and book chapters, serves on seven editorial
boards, and serves on the boards of directors for both the Society for Human Resource Management Foundation and World at Work. He has done executive development and consulting work
for over 50 corporations.
Joshua B. Wu is an obstetrics doctoral student in the department of management, W. P. Carey
School of Business, Arizona State University. His current research interests include self- and
collective-eff icacy, employment relationship, performance feedback, and coping with job loss. His
teaching interests include organizational behavior and cross-cultural management. Prior to joining the doctoral program, Wu was an HR consultant at TMP Worldwide and Hewitt Associates.
Arthur Yeung is Philips Chair Professor of HRM at China Europe International Business School
and a professor at the University of Michigan Business School. Before his return to academia, he
served as CLO and subsequently chief HR off icer of Acer, a leading global PC f irm. Yeung’s research focuses on strategic HR management, organizational transformation, and leadership development. He serves as associate editor of HRM Journal and advisory board member of HBR (China)
Journal. In addition to sitting on the board of a publicly listed f irm, he is advisor to several leading Asian f irms in Taiwan and Mainland China.
Contents
Introduction
The Future of Human Resources xix
Michael R. Losey, Sue Meisinger, and Dave Ulrich
Section I
Understanding and
Managing People 1
Chapter 1
Will There Really Be a Labor Shortage?
Peter Cappelli
5
Chapter 2
The Motivator’s Dilemma 15
James G. Clawson and Douglas S. Newburg
Chapter 3
Anticipating Change: Will There Be a Labor Shortage?
Michael R. Losey
Chapter 4
Get, Keep, Grow 38
Coleman Peterson
Chapter 5
The New Employment Relationship versus the Mutual
Investment Approach: Implications for Human
Resource Management 44
Anne S. Tsui and Joshua B. Wu
xiii
23
xiv
Contents
Section II
Invest in the Next Generation of
Human Resource Professionalism 55
Chapter 6
The Future Human Resource Professional’s Career Model
Kathleen Barclay and Thomas Thivierge
57
Chapter 7
Human Resource Education: A Career-Long Commitment
Debra J. Cohen
63
Chapter 8
Life after Outsourcing: Lessons Learned and the Role of Human
Resources as a Strategic Business Partner 71
Mirian M. Graddick-Weir
Chapter 9
The Four Cs of the HR Profession: Being Competent, Curious,
Courageous, and Caring about People 78
Susan R. Meisinger
Chapter 10
Differentiation through People—How Can HR Move beyond
Business Partner? 86
Geof f Armstrong
Section III
Learn to Master and Play
New Roles 93
Chapter 11
The Chief Integrative Leader: Moving to the Next Economy’s
HR Leader 95
Bruce J. Avolio
Chapter 12
From Business Partner to Driving Business Success: The Next
Step in the Evolution of HR Management 103
Wayne F. Cascio
Chapter 13
Workforce Diversity: A Global HR Topic That Has Arrived
J. T. ( Ted) Childs Jr.
110
Contents
Chapter 14
“Not Just Any Seat at the Table”
Steve Darien
xv
119
Chapter 15
What Distinguishes the Outstanding HR Executives from
the Others 126
Bruce Ellig
Chapter 16
Evolution and Revolution in the Twenty-First Century:
Revolutionary New Rules for Organizations and Managing
Human Resources 134
Russ Roberts and Paul Hirsch
Chapter 17
From Human Resources Management to
Organizational Effectiveness 144
Edward E. Lawler III
Section IV
Discern, Create, and Adapt Culture
to Business Conditions 153
Chapter 18
HR as a Strategic Partner: Culture Change as a Case Study
Ursula F. Fairbairn
Chapter 19
Changing Mental Models: HR’s Most Important Task
Jef frey Pfef fer
155
163
Chapter 20
Building a Market-Focused Culture 172
Hayagreeva Rao and Robert D. Dewar
Chapter 21
Branding from the Inside Out: HR’s Role as Brand Builder
Libby Sartain
Chapter 22
The Winning Team: A Strategic Imperative
Lea Soupata
189
181
xvi
Contents
Section V
Rethink Organizations as Capabilities,
Not Structures 195
Chapter 23
Workforce Strategy: A Missing Link in HR’s Future Success
Richard W. Beatty and Craig Eric Schneier
199
Chapter 24
Connecting Strategy and HR: Establishing a New
Logic of Partnership 208
Gordon Hewitt
Chapter 25
What Really Works? HR’s Role in Building the 4+2 Organization
William Joyce, Nitin Nohria, and Bruce Roberson
Chapter 26
Human Resources’ New ROI: Return on Intangibles
Dave Ulrich and Norm Smallwood
217
224
Chapter 27
In Pursuit of Marketplace Agility: Applying Precepts of Self-Organizing
Systems to Optimize Human Resource Scalability 233
Lee Dyer and Jef f Ericksen
Chapter 28
Creating the Capability for Collaborative Entrepreneurship: HR’s
Role in the Development of a New Organizational Form 242
Raymond E. Miles, Grant Miles, and Charles C. Snow
Chapter 29
Partner or Guardian? HR’s Challenge in Balancing Value
and Values 248
Patrick M. Wright and Scott A. Snell
Section VI
See HR as a Decision Science and
Bring Discipline to It 257
Chapter 30
Science Explodes Human Capital Mythology
Jac Fitz-enz
261
Contents
xvii
Chapter 31
Human Resource Accounting, Human Capital Management, and the
Bottom Line 268
Eric G. Flamholtz
Chapter 32
Improving Human Resources’ Analytical Literacy: Lessons
from Moneyball 278
Mark A. Huselid and Brian E. Becker
Chapter 33
The Dual Theory of Human Resource Management and Business
Performance: Lessons for HR Executives 285
David Lewin
Chapter 34
Talentship, Talent Segmentation, and Sustainability: A New HR
Decision Science Paradigm for a New Strategy Definition 293
John W. Boudreau and Peter M. Ramstad
Section VII
Create Mutually
Collaborative Ventures 305
Chapter 35
Teamwork: The New Emphasis on Two-Sided Accountability
Samuel A. Culbert and Jean-Franc¸ ois Coget
Chapter 36
Managing Cooperatively within Organizations
Lynda Gratton
Chapter 37
Power, the Last Corporate Taboo
Patricia Seemann
307
312
323
Section VIII
Responding to Social Expectations
and Public Policy and the Renewed
Importance of Ethics 331
Chapter 38
A Challenge to HR: Building the Company’s External Dimension
Richard A. Beaumont
333
Contents
xviii
Chapter 39
Leading Change: An Imperative of Leadership
Frances Hesselbein
Chapter 40
When Ethics Calls the HR Helpline
Patricia J. Harned
341
348
Section IX
Live Globally, Act Locally 357
Chapter 41
Global and Local Balance in Human Resources Leadership
John Hofmeister
Chapter 42
Global HR as Competitive Advantage: Are We Ready?
Vladimir Pucik
361
370
Chapter 43
A New Paradigm for HR: Dilemmas in Employing and
Managing the Resourceful Human 378
Fons Trompenaars and Peter Woollimas
Chapter 44
Counterintuitive Findings in International HRM Research and
Practice: When Is a Best Practice Not Best for Practice? 392
Mary Ann Von Glinow, Ellen A. Drost, and Mary B. Teagarden
Chapter 45
Becoming Business Partners in Chinese Firms:
Challenges and Opportunities 400
Arthur Yeung
Conclusion
Reality, Impact, and Professionalism 408
Michael R. Losey, Susan R. Meisinger, and Dave Ulrich
Index
415
Selected Titles from the Society for Human Resource
Management (SHRM®) 423
INTRODUCTION
The Future of
Human Resources
MICHAEL R. LOSEY, SUE MEISINGER, AND DAVE ULRICH
W
e set out to prepare this book because of our individual and collective passion about the human resources
profession. One would be hard pressed to find three people more committed to the HR profession. We each bring a unique perspective to this profession. With more than forty years’ experience in the profession, Mike
has held HR leadership roles in large corporations and also served as the
president and chief executive officer (CEO) of the Society for Human
Resource Management (SHRM), the world’s largest HR association.
Sue’s legal background has enabled her to inf luence public policy and the
legislative environment that HR operates in; she now serves as SHRM’s
president and CEO. Dave has written extensively about the theory and
role of human resources in helping organizations compete through their
capabilities and helping individuals perform through their abilities. Collectively, we believe that HR matters. We know that HR professionals
can make the difference between success and failure in an organization,
and that they affect the lives of the people they work with.
We also know that the profession is in transition, with changing demands, increased opportunities, and requirements for new and greater competencies. In the face of so much change, we decided to update the 1997
book, Tomorrow’s HR Management, and to explore future directions for
the profession.
We are pleased that we could work once again with our publisher John
Wiley & Sons, this time with Emily Conway, who assisted us almost daily.
But most of all, we are indebted to the diverse and talented authors who
were willing to share their perspectives on future opportunities, challenges,
trends, and requirements for the profession.
xix
xx
Introduction
Human Resource Management as
a Profession
In 1996, Thomas Stewart, the current editor of the Harvard Business Journal, wrote an article for Fortune magazine suggesting that HR was bureaucratic and ineffective, and added little to organizational success. Thus
it should be “blown up!” (Stewart, 1996).
Much has transpired since that article was published. At a recent SHRM
conference, Mr. Stewart led a program for the top HR professionals from
Fortune’s “100 Best Companies to Work For.” This is not to suggest he has
completely changed his mind about the impact, role, and effectiveness of
human resources. It is more likely that both Mr. Stewart and HR managers have concluded that the profession is here to stay and can become
more effective than it has been in the past.
Defining HR requirements is not an easy task given the dynamic rate of
change in the workplace. Since the early twentieth century, much has been
accomplished in identifying an HR body of knowledge that can be taught,
learned, and tested. More remains to be done before we can realize the potential of the profession.
This book is targeted to help achieve that goal.
Anticipating the Future—
Key to HR Success
It is essential for HR leaders to accurately anticipate the future and how
such changes may affect their accountability. Without the capacity to recognize and accurately plan for changes in the business landscape, coping
strategies cannot be proactive—they can only be reactive—and at a much
higher cost.
Given the accelerated changes occurring in today’s workplace, any HR
leader desiring to make a strategic contribution must look to the future
with more foresight and accuracy than ever before.
This is not an easy task. In this book, one author may suggest a specific
policy or pract