November - December 2006 Research Highlight Strategic HRM and Organizational In This Issue 1 Strategic HRM and Behavior: Integrating Multiple Organizational Behavior: Levels of Analysis Integrating Multiple Levels of Analysis Critical to the success of human Behavior: Integrating Multiple Levels 2 Up Close with John Bradley resources is the ability to of Analysis, was undertaken by of JPMorgan Chase & Co. demonstrate the value our efforts add Patrick M. Wright and Lisa H. Nishii, to today’s business. Going back as far both of the Industrial and Labor 3 Bear Stearns as 1995, researchers like Mark Relations School at Cornell. Their HR Company Profile Huselid have published empirical white paper examines some of the 4 Fall Sponsor Meeting 2006 studies which demonstrate a processes that occur in the HRM- statistically significant business 6 New NAHR Fellows linkage between HRM performance 7 In the News (human resources The important issue relationship and management) practices is to link tries to explain the 8 CAHRS Events Calendar and measures of multilevel nature of organizational organizational that relationship. performance. Think of it as Additionally, and individual analyzing any or supervisors. In addition, the same researchers and relationship for employees with the same actual practitioners alike have concepts in both what makes it practices may differentially interpret tried to understand the directions. successful, and what those practices mean, and how mechanisms through considering the they react to them. This technique which this positive emotional, demonstrates the multi-level relationship between HR and business intellectual, spiritual and physical approach to research and analysis performance occurs. Lately, there has aspects of the relationship and how previously mentioned. also been interest in taking a multi- they are interconnected. Wright and Nishii conclude their level approach to understanding As an example, Wright and Nishii research by recommending a multi- HRM. This recent research involves distinguish between the intended HR level approach to understanding the exploring single or multiple practices practices (i.e., the policies set out) phenomenon linking HRM to within the HR function as well as and actual HR practices (i.e., those as business results. Essentially, their individual versus organizational they are actually differentially research suggests two important responses or behaviors as a result of implemented by line managers). They directions for future SHRM research, HR. note that while intended practices and since more and more HR The research cited here, titled should be uniform, actual practices organizations are bringing that type of Strategic HRM and Organizational may vary quite a bit across managers analysis in-house, these are important lessons. First, they recommend the development of comprehensive theories that integrate several levels Continued on Page Seven P A G E 0 N E www.ilr.cornell.edu/cahrs/ Up Close with … John Bradley of JPMorgan Chase & Co. John Bradley was just back from a four- making and then identify the most effective country tour through Asia, where he had sources of information and get it on the visited some of the overseas operations of manager’s desktop.” JPMorgan Chase & Co., as part of his role as Another challenge in the global Director of Human Resources of the $1.3 environment has been balancing trillion global financial services firm. policymaking between company-wide Directing the delivery of human resource standards and local implementation. One area services for 170,000 employees in more than where this is most clear relates to Bradley’s 50 countries is a challenge Bradley has original passion: diversity and inclusion. “Our embraced with enthusiasm since assuming the corporate global commitment is to have the top job in March of this year. It’s a role that best people in the right jobs at the right time draws on the full experience of his 23-year with no barriers to entry or to retaining highly career with the firm, including a posting in John Bradley talented individuals,” Bradley observes. “That London in 2003 to run the company’s said, our focus needs to be more results European and Asian HR operations. oriented. Raising awareness is important, but this is only a Bradley began with JPMorgan as an affirmative-action means to an end. The focus needs to be on increased analyst right out of graduate school (Cornell ILR/MBA class representation and retention of diverse employees in of ’82), and has been with the company ever since. “The firm leadership roles. has been great about giving me numerous opportunities to “Further,” Bradley adds, “diversity means different things to work in different areas and contribute in many different different people. Addressing underrepresentation has different ways,” he says. Some of those opportunities included heading requirements in different regions. The commitment to up the company-wide compensation and benefits function, diversity and inclusion is global and the solutions to get there managing HR in the European investment banking and are local.” technology and operations divisions, and leading the HR Sometimes solutions to timely issues can be drawn from integration effort upon the merger of JPMorgan and Chase. academic research. Bradley knew about ILR’s CAHRS as an Bradley is a member of the firm’s Operating Committee, undergraduate, so it was a natural for him to affiliate consisting of the heads of the major functional areas (such as JPMorgan with the program when he became an officer legal, financial, technology) and six major business lines: there. One of the CAHRS projects for 2006-07 is studying investment banking, retail financial services, card services, the role of stock options in executive recruitment, a subject commercial banking, treasury and securities services, and that has been the focus of much controversy lately. While asset and wealth management. Each of those lines has its expressing some surprise at the reported excesses in own HR operation, but report to both the business CEO and backdating options, Bradley comments: “Stock options can Bradley. The recent trip to Asia to evaluate the region’s high be very useful when applied appropriately as part of the growth potential is an example of how the management compensation toolkit—by appropriately, I mean sparingly— team coordinates plans across functional and business lines. to help retain key leadership, and priced at a true fair market Bradley’s key goal for HR in supporting the corporate value.” Bradley supports the work CAHRS is striving to do mission involves ensuring the most effective end-to-end HR in bringing academic research to bear on just such real- product and service delivery by understanding the needs of world problems. line managers more clearly and working to deliver on-time, Bradley concludes that even the short time in this role on-budget solutions that increase each manager’s impact. A has forcefully affirmed his belief that effective HR leaders big part of this is information management: “getting the need to balance their roles as a business manager, “keeper of right information to managers to make the right people the corporate flame,” shareholder activist, and employee decisions.” Bradley elaborates, “If we focus on building the advocate. “Focusing on any one area to the exclusion of technology tools first, all we end up with is a high others will limit what an individual can accomplish in any technology bill. We need to understand what drives decision setting.” JPMorgan Chase & Co. joined CAHRS in 1992, the ‘UP Close with’ profiles feature interviews with leaders of CAHRS sponsors. hrSPECTRUM November - December 2006 P A G E T W O www.ilr.cornell.edu/cahrs/ HR Company Profile Bear Stearns & Co., Inc. What’s the best thing about leading HR at firm, and doing it in a way that portrays to Bear Stearns? “The tremendous range of people what our firm stands for culturally is opportunities my team and I have to add value,” critical. The market for the talent we are replies Pam Kimmet, the firm’s new Senior looking for is very competitive, so every step of Managing Director and Global Head of Human the process has to be done with excellence.” Resources. “Leaders across the firm want help in Scaling for growth means another of Pam’s identifying, developing and retaining talent. priorities is restructuring the HR team. “We are They are personally engaged in these issues, and in the midst of realigning and moving to a model everyone here understands how important our that will bolster our ability to provide the employees are to the firm’s success.” strategic support the leaders need, and make it The Bear Stearns Companies, Inc., is a leading easier for us to provide a focus on key areas global investment banking, securities trading and ranging from HR systems and metrics to brokerage firm. Since 1923, it has helped employee development and training. corporations, institutions, governments and “Like my colleagues everywhere, we have a lot individuals reach their financial objectives. As to accomplish and the demand keeps growing. Pam explains, “Bear Stearns has an enviable It’s particularly tough when you are a person who track record. Since our founding we have never wants to do it all and do it all now!” Pam had an unprofitable year. And, unlike other explains. “Regardless, I am having so much fun Wall Street firms, we’ve remained independent and know we’ll look back in a year and surprise and have steadily grown our business thanks to ourselves at all we’ve done.” the efforts of our outstanding people.” Pam has more than 25 years of experience in Since joining the firm earlier this year one of human resources administration. Prior to joining Pam’s top priorities has focused on enhancing the Bear Stearns, she served as the Senior Vice firm’s recruiting capabilities and process. “We’ve President for Human Resources at Lucent undertaken an extensive review of the entire Technologies, Inc. and before that, she led the ‘requisition to on-boarding’ process and we have compensation and benefits team for Citigroup. a pretty aggressive set of changes that we are Before joining Citibank in 1994, Pam spent 14 preparing to implement,” remarks Pam. years with General Motors, holding increasingly “While hiring the right people matters to responsible positions in various human resource every organization, it is especially critical in our roles across the corporation. Pam earned an industry,” says Pam. “Our clients chose to work MBA from Michigan State University through with us because of their trust in our people and the school’s Advanced Management Program their belief in our ability to innovate and and holds a B.S. in Industrial and Labor execute,” Pam adds. “So, making sure we are as Relations from Cornell University. effective as possible in bringing talent to the Bear Stearns & Co., Inc. joined CAHRS in 2006 the ‘HR Company Profile …’ feature a Corporate HR view of new CAHRS sponsors. hrSPECTRUM November - December 2006 P A G E T H R E E www.ilr.cornell.edu/cahrs/ Global HR Practices Fall Sponsor Meeting 2006 The CAHRS Fall Sponsor meeting held October 23rd and 24th, was attended by more than fifty-three HR professionals from 25 sponsor companies. The topic, Global HR Practices has been one of the primary issues that HR professionals and sponsor companies have been wrestling with and will continue to face over the next decade as the pace of globalization continues to grow. Patrick Wright, Professor of Human Resources and Director of CAHRS at Cornell, kicked off the meeting by discussing the findings of the ongoing CAHRS study conducted with partners Cambridge University, INSEAD, and Tilburg University which was sponsored by Sanyo Corporation. He described how the study melded intensive case studies of companies with a global survey of HR practices across 20 multinational companies in over 30 different countries. The data of the survey suggested that there seems to be Kevin Cox American Express, Simon King a growing convergence of beliefs regarding best practices in HR that crosses AstraZeneca cultural and country boundaries. Professor Jaap Paauwe from Tilburg University, who also spent spring of 2005 as a visiting scholar within the ILR School, also presented some work from the Sanyo study on how firms are seeking to achieve HR functional excellence. Quinetta Roberson, Associate Professor of HR Studies at Cornell also presented some of her research examining the relationship between having a great workplace and firm performance among Italian firms. Finally, based on the results of the study, Scott Snell, Professor of HR Studies at Cornell discussed how HR organizations are able to innovate, integrate and institutionalize HR practices on a global basis. In addition to the presentations of the study results, a number of senior executives participated in panel discussions describing how their firms have approached the management Stuart Basefsky ILR Catherwood Library of global HR practices. Kevin Barr, SVP HR of Terex Corporation and Lee Patterson, VP of HR Strategy and Regional Coordination at Shell, discussed how their firms have attempted to decide which practices should be globally implemented versus which can be designed at a more local level. Also, Susan Beauregard, Manager of Global HR Shared Services at GE and Penny Stoker, VP HR for the U.S. at AstraZeneca conducted a revealing discussion on the issues with implementation of Global HR Information Systems. Feedback from participants focused on the great mix of academic and practical information that was presented. The meeting provided them an opportunity to hear cutting edge research from some leading academics while also hearing best practices and insights from senior HR executives at leading companies. Lisa Nishii CAHRS, Lee Patterson Royal Dutch Shell, and Kevin Barr Terex hrSPECTRUM November - December 2006 P A G E F O U R www.ilr.cornell.edu/cahrs/ Quinetta Roberson CAHRS Peter Dowd and Bill Strusz Xerox Herb Harback and Jim Duffy CIT Group CAHRS sponsors John Haggerty CAHRS, Susan Beauregard GE, and Jaap Paauwe Tilburg University, The Penny Stoker AstraZenca Netherlands hrSPECTRUM November - December 2006 P A G E F I V E www.ilr.cornell.edu/cahrs/ New NAHR Fellows Celebration 2006 NAHR Fellows (Present CAHRS Sponsors & Cornell Faculty) 2006 JOHN M. MURABITO EVP, HR and Services, CIGNA, Corporation EVA SAGE-GAVIN EVP, and Corporate Communications, Gap Inc. 2005 PATRICK M. WRIGHT Director CAHRS, Cornell University DAVID W. PACE EVP, Partner Resources, Starbucks Coffee Company WORLDATWORK 2004 KENNETH J. CARRIG EVP, CAO, SYSCO Corporation 2003 JOHN D. HOFMEISTER President, Shell Oil Company 2001 Ken Carrig, John Murabito, Eva Sage-Gavin, Lee Dyer, Bill Conaty, and Patrick Wright. JAMES B. DAGNON SVP of People, The Boeing Company On November 2, 2006, the is accorded to executives, policy- J. T. CHILDS, JR. VP, Global Workforce Diversity, IBM National Academy of Human makers, and academics who have 2000 Resources inducted John Murabito and excelled in leadership, and who are STEVEN R. HILL Eva Sage-Gavin as honored NAHR recognized for their sustained SVP, HR, Weyerhaeuser Company Fellows. John is Executive Vice achievement in and their contributions 1998J. RANDALL MACDONALD President, Human Resources and to their organizations, the Human SVP, HR, IBM Corporation Services at CIGNA Corporation. Eva Resource profession and society at CHARLES G. THARPFormer SVP, HR, Bristol-Myers Squibb Company is Executive Vice President of Human large. Many current CAHRS sponsor 1997 Resources and Corporate companies have had their top HR J. THOMAS BOUCHARD Communications at Gap Inc. Both are executives inducted as Fellows over the SVP, HR, IBMWILLIAM L. BUCKNALL, JR. CAHRS Executive Advisory Board years (see sidebar). SVP, HR and Organization, United Technologies Corporation members. It is the NAHR tradition to Murabito joined CIGNA in 2003 STEVEN M. DARIENVP, HR, Merck & Company hold their Annual Dinner and to lead the people strategy for the 1996 Installation of New Fellows Ceremony company’s essential—and now WILLIAM J. CONATY SVP, Corporate HR, General Electric Company on the first Thursday of November, in successful—turnaround. Guiding a GEORGE T. MILKOVICH New York City’s Yale Club. Bill practical and focused approach to Catherwood Professor, Emeritus, ILR, Cornell University SCHOOL OF INDUSTRIAL AND LABOR Conaty, NAHR Chair, CAHRS human resources strategy, he has led RELATIONS, CORNELL UNIVERSITY Executive Board Member, and Senior the change for many of CIGNA’s 1995 Vice President of Corporate HR for critical people processes including WALTON E. BURDICK SVP, Personnel, IBM Corporation General Electric, gave the welcome succession, talent assessment, CHARLES F. NIELSON address and general report. Other organization and leadership Corporate VP and Manager of HR, Texas Instruments, Inc. members of the CAHRS Board development, performance 1994LEE DYER attended the blacktie event which also management and compensation. Professor, School of Industrial and Labor Relations, honored other Fellows. These new Believing the future of the human Cornell UniversityDOUGLAS M. REID Fellows have been recognized by their resources function to be “very small SVP, Xerox Corporation, SVP Colgate-Palmolive Company peers for their distinguished leadership and very good,” John has outsourced 1993 in the broad field of human resources nearly all of CIGNA’s HR URSULA F. FAIRBAIRNEVP, HR and Quality, American Express Company and have meritorious national administrative areas. The HR team 1992 reputations for shaping human resource now concentrates only on areas where BRUCE CARSWELL Distinguished Fellow & CAHRS AB, Cornell University thinking and policy. The NAHR they can add real value and drive FRANK P. DOYLE Fellowship is considered the most business results. As the chief people EVP, General Electric Company DAVID P. LIPSKY prestigious honor in the field of human officer for a health care provider, John Director, PERC Institute of Conflict Resolution, ILR, resources. Fellowship in the Academy Cornell UniversityContinued on Page Seven hrSPECTRUM November - December 2006 P A G E S I X www.ilr.cornell.edu/cahrs/ IIn The News ILR Graduate Programs Thanks Citigroup – Citigroup has always been a generous benefactor to the ILR School and, once again, it has demonstrated its generosity by providing scholarship support for a MILR student. The MILR Program exemplifies the ILR School’s ongoing commitment to educating tomorrow’s leaders, and keeping the program strong requires recruiting the best candidates. Thanks to Citigroup’s generous gift, the program will be able to recruit another outstanding candidate. Strategic HRM and Organizational Behavior Continued from Page One of analysis as we saw in the example above. The important degrees, will also help HR practitioners design and utilize issue is to link organizational and individual concepts in research data that is more useful for their decision making both directions. How does the individual affect the group in the business. and how does the group affect the individual? How do HR Wright and Nishii purport that there are two relatively processes that we implement impact both organizations new research techniques that can benefit the HR and individuals within an organization? This is the first practitioner seeking to quantify the value of his or her line of questioning that these researchers recommend. organization. Within and Between Analysis (WABA) and Second, Wright and Nishii suggest that organizations Hierarchical Linear Modeling research methodologies can be conduct multi-level research. HR professionals within a boon to internal HR research. These models can provide firms are becoming more and more willing to share critical a more in-depth analysis of the impact of HR, and the data and be more analytical in their decision making. This researchers’ research on the methodology suggests that presents a ripe field for more robust methods to study the these techniques will help you harvest the increasingly impact of HR. The development of several new analytical plentiful data available to assess the effectiveness of your techniques, no doubt understood by some of the more HRM. recent grads with industrial and organizational psychology New NAHR Fellows Celebration 2006 Continued from Page Six is acutely aware of the rising cost of health care an company in 2003 and has been instrumental in many key employee benefits for companies of all sizes. To reduce cost business growth initiatives. She led the company’s total in this critical area, the company has implemented its own rewards redesign which included performance based industry-leading health plans for all CIGNA employees. In incentives, restricted stock awards and significant benefit June of 2006 the company was honored by the National cost savings. Eva also introduced healthcare access to over Business Group on Health as one of the Best Employers for 80,000 of the company’s part time employees and achieved Healthy Lifestyles. John is active in both academic and enrollment rates above industry levels. She and her team professional communities. He is a board member for developed new leadership training for 11,000 company Cornell CAHRS, as well as the University of South managers. Eva was the architect for Gap Inc.’s culture shift Carolina’s Masters in Human Resources program. that has included a strategy now imbedded in all reward, Sage-Gavin, in her role as Chief people Officer, sets the recognition and development work globally. She is on the strategy for Gap Inc.’s global human resources and Board for Cornell CAHRS, and the ILR School, the communications operations, including strategic change, University of Southern California, and the Human talent management, diversity, total rewards, learning and Resources Policy Association. development, and communications. She joined the hrSPECTRUM November - December 2006 P A G E S E V E N www.ilr.cornell.edu/cahrs/ 2006 - 2007 CAHRS Spring Sponsor Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 22 - 23, 2007 Paris, France Employee Engagement: What Do We Really Know? What Do We Need To Know? ILR Orientation and CAHRS Executive Roundtables . . . . . . . . . . . . . . . . . . . . . . . . . . . . August 21, 2007 Ithaca, NY CAHRS Fall Sponsor Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November 14 - 15, 2007 Ithaca, NY For more information, contact Jo Hagin at 607/255-9358 or email: jap7@cornell.edu, or visit our website at: www.ilr.cornell.edu/cahrs/Calendar.html ILR Executive Education & Events The Vanguard Group Custom Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January 17 - 19, 2007 Malvern, PA HR Leadership: The Next Paradigm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February 6 - 8, 2007 St. Petersburg, FL Language of Business: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March 6 - 7, 2007 Atlanta, GA Finance and Competitive Analysis for Strategic HR Shell Custom Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April 22 - 27, 2007 The Hague, The Netherlands HR Transformation: Partnering to Achieve Functional Excellence. . . . . . . . . . . . April 30 - May 4, 2007 Ithaca, NY HR Strategy: Creating Competitive Advantage Through People . . . . . . . . . . . September 24 - 28, 2007 Ithaca, NY Shell Custom Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October 21 - 26, 2007 The Hague, The Netherlands Managing for Impact: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November 7 - 8, 2007 Miami Beach, FL HR Metrics and Firm Performance For more information, contact ILR Executive Education at 607-255-5882 or e-mail: ilrexec@cornell.edu, or visit our website at: ilr.cornell.edu/execed to view our Brochure. hrSPECTRUM is published by the Center for Advanced Human Resource Studies, School of Industrial and Labor Relations, Cornell University, Ithaca, New York 14853-3901 Phone: 607-255-9358 • Fax: 607-255-4953 Dr. Patrick Wright, Director Dr. Pamela Stepp, Executive Director hrSPECTRUM November - December 2006 P A G E E I G H T www.ilr.cornell.edu/cahrs/