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Blog: The Business of Management June 2007 Archive
 

June 21st, 2007

‘Social Work and Transactional HR Voodoo’

Readers have strong opinions, especially when you get into the debate over the strategic value of HR and getting a “seat at the table.” I recently devoted one of my Last Word columns (titled “HR ‘Hate’ Endures”) to a new study by Deloitte Touche Tohmatsu and The Economist Intelligence Unit on the same subject. Here are some of the comments:

From a business and executive coach in Indianapolis:
“I read the Fast Company article when it originally came out. To tell the truth, it hit the nail on the noggin. Our profession seems more like social work and transactional HR voodoo than anything that will help the business fulfill on its strategic agenda and we seem happy as clams about it. Meanwhile, HR doesn’t have a ‘seat at the table’ and gets its resources slashed or outsourced. And we wonder why. Poor us. On the other hand, I keep seeing executives selecting pals from production, sales and other departments to be their ‘HR guys’ rather than selecting people who can translate the business’ strategic goals into a people strategy that works. I’ve seen HR professionals hire ‘people people’ (still don’t know what that means), thinking that on-the-job training will take care of everything that’s missing. We did (and continue to do) it to ourselves.”

From Barbara (no city given):
“Almost 25 years ago, I remember a midlevel sales manager telling me that ‘HR can’t do anything.’ Since she was talking about my chosen profession, I defended against her remark, but, as you can tell, I never forgot it. Why? Because I suspected there was a lot of truth to it. Of course, there are HR folks who have had and continue to have impact. But for the most part, HR practitioners are bureaucrats, administering policies and ensuring procedures are followed. … I think the HR profession is ripe for major overhaul, and it’ll probably come from outside the profession. What that will look like, I’ll not venture to guess, but it will probably be very, very different from anything we’ve ever imagined.”

From Meg in New York:
I question how a publication whose prime readership is the very group Mr. Hollon has chastised on repeated occasions allows such drivel. More disheartening is Mr. Hollon’s total lack of respect for the HR profession, supported by his latest fear that, again, no one will speak up and help HR professionals. Quite condemning and quite irresponsible, especially in light of the Jeff Schwartz interview which offered a fairer assessment, to which Mr. Hollon chose to paraphrase in his one-sided perspective. … Your ‘HR “hate” endures’ is completely inappropriate and likely a tagline for nothing more than the shock value. … Shame on you for disrespecting your readership, yet once again.”


June 20th, 2007

What Were They Thinking?

I never cease to be amazed at how some companies have to be pushed, prodded or legally compelled to do the right thing. Here are two cases in point:

A Massachusetts jury this week awarded almost $2 million to a former Wal-Mart pharmacist who had claimed she was fired after complaining about being paid less than her male counterparts. The woman, who had worked as a pharmacist for Wal-Mart in Pittsfield, Massachusetts, for more than 10 years, said in court that she was fired because she asked to be paid the same bonus as male pharmacists. Wal-Mart paid her the bonus, then fired her two weeks later, claiming she was dismissed for failing to keep the pharmacy secure. The jury didn’t buy Wal-Mart’s story, in part because the female pharmacist had received “rave reviews” in her employment evaluations and was described as “maintaining the highest levels of professional conduct” in her most recent review.

The Minnesota Court of Appeals ruled Monday, June 18, that a fired worker was still entitled to unemployment insurance despite the fact that he was terminated for swearing at his supervisor. The 56-year-old worker, who washed cars at a Minneapolis-area auto dealer, was told by his supervisor that another manager wanted him to pick up cigarette butts on the lot. The worker, who had come to work despite having the flu, said that he was busy and that the other manager could go “[expletive] himself.” The worker was summarily fired and later was denied his unemployment claim. He appealed the decision. The three-judge appeals panel ruled that he was eligible for $7,000 in unemployment insurance “because his conduct was a single incident that did not have a significant adverse impact on the employer.”

So, what do these two cases have in common? From my view, both show how companies all too often resort to pettiness rather than just doing the right thing.


June 13th, 2007

5 Books You Should Read This Summer

Now that Memorial Day has come and gone, it’s time to get the summer reading lined up. If you want to multitask and combine your reading with an opportunity to glean some great management wisdom, here are five books you should put on the top of your summer reading list:

Team of Rivals: The Political Genius of Abraham Lincoln, by Doris Kearns Goodwin. Have you ever been told you should “surround yourself with great people”? Here’s a lesson in how it’s done. Not only did Lincoln persuade three former political rivals to join his Cabinet, but he skillfully managed these accomplished opponents and turned them into allies who worked successfully for the greater good of the country. This is one of the best examples of managing difficult yet talented people that you will ever find.

Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time, by Howard Schultz. Although a bit self-serving at times, Howard Schultz’s personal account of how he built Starbucks into a global company is interesting in its own right. The real reason to read this book, however, is for the insight he brings into managing and engaging a workforce to go above and beyond the call of duty to drive the company ahead. If you have ever wondered what employee engagement is all about, you should read this book.

DisneyWar, by James B. Stewart. There’s no doubt that former Walt Disney Co. CEO Michael Eisner was a brilliant executive, but the thing that struck me after reading this book is the litany of mistakes and missteps Eisner committed during his last 10 years as chief executive at Disney. He was terrible and shortsighted with people, too. As the synopsis on Amazon.com puts it, “a withering portrait of Eisner as a grasping, self-centered, manipulative, and ultimately self-destructive executive.” In other words, a great real-world lesson in how NOT to manage people.

The No Asshole Rule: Building a Civilized Workplace and Surviving One That Isn’t, by Robert I. Sutton. I’ve touted this book before, but I’ll say it again: Sutton makes a great case for why jerks and assholes are so disruptive, destructive and generally toxic in the workplace. This is a thin book that is packed with must-have insight and wisdom.

The Essential Drucker: The Best of Sixty Years of Peter Drucker’s Essential Writings on Management, by Peter F. Drucker. What would a business book list be without something by the father of modern management? This book is a nice distillation of Drucker’s many years of management wisdom. Two other possibilities: Drucker’s classic The Practice of Management or Managing in Turbulent Times. Even if you just thumb through these books, you’ll pick up a lot of the same ideas and principles that MBA candidates get exposed to.


June 5th, 2007

Running With the ‘Knuckleheads’

One of the curious things about writing a blog is that sometimes, you get delayed reaction and feedback from something you’ve written. So it is with Circuit City.

I wrote two blog items, “More Gibberish from Circuit City” and “Age Bias Suit at Circuit City” that centered on the decision by the electronics retailer to fire about 3,400 workers because they were getting paid “well above the market-based salary range for their role.” From my perspective, it seemed stupid and shortsighted to get rid of your best and most experienced workers in a cost-reduction frenzy. For all of Circuit City’s many troubles, this rash and ill-advised management decision appears to be adding to the company’s troubles.

Readers of this blog had some interesting things to say about that. Here are a few of their comments:

From Christopher (no city listed):
“Had to comment on your postings re Circuit City. Not only did my HRCI prep class use this as a real-time case study, but I personally e-mailed and called CC’s corporate office in an attempt to see if we could access any of their IT professionals for my company. Guess what? Never heard back from them. Guess where I haven’t shopped since?”

From RMack in Florida (who titled his e-mail “Circuit City being run by knuckleheads”):
“It’s amazing that upper management [at Circuit City] does not see [what they are doing]. When I try to buy a DVD ($12) I’ve got 2-3 people looking to help me. When I went to buy a new TV ($1,000) I couldn’t get anyone to help me. I ended up complaining twice and walked out 30 minutes later. After I calmed down, I called back the manager, and let him know I was going to Best Buy. He knocked another $200 off of a TV already on sale. It saved me about $550. Point is … I should not have to get crazy just to buy a TV from a kid.”

From Michael (no location given):
“The articles you provided about Circuit City, RadioShack and Merrill Lynch are more great examples of employees being treated as “No Heads.”  I’m no longer surprised by such management stupidity, but I still wince at such counterproductive, shortsighted and unnecessary practices.”

From Paulette (no location given):
“I want to add my 2 cents to why Circuit City has a loss in sales. I, for one, am boycotting them. I will not do business with an organization that treats their best employees in this manner. I have spoken to many people who are also taking their business elsewhere because of this layoff. I would not want to be treated in this manner, and I feel like there is a total lack of integrity in any company who does treat their employees this way.” 



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