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The Role of Mission and

Values in Strategic Human

Resource Management

By Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

STRaTegic HR ManageMenT

instructor’s Manual

Project team

Author: Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

SHRM project contributors: Bill Schaefer, SPHR Nancy A. Woolever, SPHR

External contributor: Sharon H. Leonard

Copy editing: Katya Scanlan, copy editor

Design: Scott Harris, senior graphic designer

© 2009 Society for Human Resource Management. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

Note to Hr faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class.

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09-

Microsoft worksheets necessary for this activity are included at the end of these instructor notes.

I. Mission and values:

a. Class discussion: Why does your organization exist?

b. Define the role of mission and values in the organization.

c. Whose mission statement is this?

II. Human resource functions.

III. Living the mission statement:

a. Getting the word out.

b. Class activity: Mission, values and HR functions at Microsoft.

c. Recognizing mission and values from a consumer perspective.

d. Recognizing mission and values from an employee’s perspective.

IV. Research assignment for next class session.

Session 2: In preparation for this session, students will research the mission and values statements of a variety of organizations, answering two questions:

1. What does the organization say about itself in its mission statement?
2. Is the organization living its mission?

The first question can be answered from information published on an organization’s web site or in its annual report. The second question is answered by researching other media sources to determine how the organization is perceived by consumers, employees and other stakeholders. Research is reported back to the class, followed by discussion of how HR activities can support the strategic direction of the organization. Wal-Mart is used as an example in this session of the module.

note note

NOTE NOTE

the video, Wal-Mart: The High Cost of Low Price, is Not available at Wal-mart. you may find it at your public library or purchase it from amazon.com.

I. Class activity: Student reports of research.

II. Class activity: Wal-Mart mission and values.

a. Wal-Mart’s corporate philosophy: Handout and discussion.

b. 20-minute video: Wal-Mart: The High Cost of Low Price.

c. Video debrief and discussion

III. HR functions in alignment with mission and values.

Team or individual assignment for next class session: Case study The Green Team DPI Printing.

Session 3 : The purpose of this final class session is to give students practice aligning HR activities to reinforce the strategic goals of an organization. Before this session, students will read and analyze the case study, The Green Team at DPI Printing. Acting in the role of the HR manager for DPI Printing, students will identify HR practices that can influence the direction of DPI and recommend changes and HR activities to reinforce the organization’s new direction. Students will present their recommendations to the class. This could be a team activity or an independent assignment, depending on time available and what works best in your classroom. The DPI case and materials are included at the end of these instructor notes.

I. HR practices in alignment with mission and values.

II. Student presentations of The Green Team at DPI Printing and discussion.

III. Summary and wrap-up discussion: Correlating HR functions with the values and strategic goals of the organization.

PowerPoint Slides PowerPoint slides for each section are included with recommended instructor notes. The majority of the slides relate to the first class session because the second and third classes include student presentations and discussion.

Slide 15: Start your second class session with student reports of their research. Limit the duration of student reports (depending on how much time you have in class) to ensure there is enough time in the class session for the Wal-Mart video and discussion. Student reports should briefly discuss the following questions. The same questions will be addressed by the information in the Wal-Mart handout, the video and the discussion.

1. The company they investigated.
2. The company’s mission and values statement. What does the company say about itself?
3. What do others say about the company? Employees? Consumers? The media? Activists? Others as appropriate?
4. Is there congruence between what the organization says and what the organization does?

Slide 16: Distribute the Wal-Mart information found in the instructor notes. The information sheet includes the “ Three Basic Beliefs and Values” statement found on Wal-Mart’s web site at http://walmartstores.com/AboutUs/321.aspx.

Before the video, spend a few minutes talking about the beliefs and values espoused in the Wal-Mart literature. Ask if any of your students have ever worked at Wal- Mart; current or former Wal-Mart employees will likely have information to add to the discussion. Ask if any students are Wal-Mart shoppers. They, too, may have information pertinent to the discussion.

Show the summary version of the video “Wal-Mart: The High Cost of Low Price.”

Due to its length (the full video is 90 minutes), view the shorter 20-minute summary in class. The 20-minute summary is well done and gives the same information as the full-length version. Ask students to think about the HR issues portrayed in the video while they are watching.

After watching the video, ask students to discuss the three questions on slide 17. The information in the handout is very positive regarding Wal-Mart, whereas the video is very negative. Ask students to discuss the incongruence between the two and how consumers would determine the true picture of an organization. Ask students to identify the HR issues seen in the video and discuss how corporate citizenship can be influenced by HR functions.

class Session 2

note note

NOTE NOTE

the video, Wal-Mart: The High Cost of Low Price, is Not available at Wal-mart. You may find it at your public library or purchase it from amazon.com

Slide 18: Assign the case study, The Green Team at DPI Printing , to be completed before the next class session. Before the final class, ask students to read the case study and prepare their answers to the questions presented in the case. This case could be an individual written assignment with students turning in their analysis in a three- to four-page essay followed by class discussion, or it could be a group project, with the group presenting its recommendations to the class via a PowerPoint presentation. Either process is appropriate; instructors should determine which works best in their classrooms. Student instructions for the assignment are included in the assignment handout.

Research Project Select a for-profit organization to research. Look at its mission and values statements and then at its activities to determine what the organization is doing to live those statements. Your research must address the following questions:

1. What organization are you investigating?
2. What is its mission and values statement? Describe what the organization says about itself.
3. What do others say about it?
4. Is there congruence between the two? Is the organization living its mission and values?
5. What HR activities does the organization engage in that reinforce its mission and values?

You can usually find an organization’s mission and values statement on its web site, in its annual report or in press releases. You will have to dig deeper to find what others say about the organization. Talk to employees and customers. Check the media. Look for lawsuits from employees, unhappy customers or activist groups. Look for the negative, but don’t forget the positive. Are there testimonials from customers or awards for quality? Is the organization known for family-friendly policies? Is it listed as one of the “best companies to work?” Look at both sides. Summarize your findings in a two- to three-page paper and be prepared to discuss your results in class. Your paper is due at the beginning of the next class.

StudeNt aSSigNmeNt

The Role of Mission and Values

in Strategic HRM

Reading Assignment Radtke, J. (1998). How to write a mission statement. Retrieved from www.tgci.com/ magazine/How%20to%20Write%20a%20Mission%20Statement.pdf.

Ben & Jerry’s. (n.d.). Our three part mission statement. Retrieved October 23, 2008, from www.benjerry.com/our_company/about_us/social_mission/social_ audits/2006_sear/.

Suggested organizations – Check with your instructor before starting research.

n Nike (www.nikebiz.com)

nAnheuser-Busch (www.anheuser-busch.com)

n Starbucks (www.starbucks.com)

n Kellogg’s (www.kelloggcompany.com)

n The Gap (www.gapinc.com)

n Sara Lee (www.saralee.com)

n Olive Garden Restaurants (www.olivegarden.com)

n Toyota (www.toyota.com/about/our_values/index.html)

While many tasks still need to be addressed, you are currently preparing for the next meeting where you will discuss how your department will support the new mission and purpose. You must identify measurable objectives from an HR perspective about how your department’s efforts will support this new organizational direction. Your presentation must include:

1. Internal company policies or programs (i.e., benefits, rewards, policies, systems, etc.) that will promote the three elements of the commitment statement. What do you recommend for this printing business using the eight HRM functions discussed in the first class session?
2. A plan for how employees will be educated about the programs. What methods should be used to engage employees in this process? Discipline? Promotions? Financial incentives? None of the above?
3. Additional staffing recommendations, if any.
4. Behaviors or changes that can be made in the HR department to reduce waste and contribute to the organization’s new mission.

committed to the environment

Damage to our environment threatens the long-term sustainability of our economy, our prosperity and our way of life. At DPI Printing, our environmental policies are shaped by our conviction that the health of our company is dependent on the health of our communities and society. Understanding that every part of our business has a potential effect on our environment, we are committed to integrating environmental policy at every level of our company’s operations.

reducing our impact

We strive to decrease our impact on the environment by:

nExhibiting environmental sensitivity in our core business products and services.

n Implementing programs to recycle, reduce consumption emissions and eliminate waste.

n Getting employees involved through lifestyle changes.

reSearcH reSourceS

To help with this presentation, feel free to do your own research or use the following resources:

1. GreenBiz.com How To (www.greenbiz.com/toolbox/howto.cfm)
2. McGinn, D. (2007, October). Workers find jobs in emerging green economy. Newsweek. Retrieved on January 6, 2009, from www.egreenideas.com/news. php?view=682.
3. Ben & Jerry’s. (n.d.). Our three part mission statement. Retrieved October 23, 2008, from www.benjerry.com/our_company/about_us/social_mission/social_ audits/2006_sear/.
4. Microsoft. (n.d.). Who we are/Mission and values. Retrieved from http:// members.microsoft.com/careers/mslife/whoweare/mission.mspx.

Mission Values Instructor’s Manual_FINAL.docx

ceo

director Sales

Sales manager

Warehouse manager

4 regional field reps

4 marketing Specialists

3 accounting Specialists

(^90) Supervisors employees o^ mperationachine Labor

20 commer-cial drivers

2 generalist

10 cServiceustomer reps

4 inventory Specialists

trans- portation manager

Hr manager

customer mServiceanager Purchasing^ manager

o^ dperationsirector director Human resources

director finance

dPi PriNtiNg

Great people with great values

n Achieving our mission requires great people who are bright, creative, and energetic, and who possess the following values: nIntegrity and honesty n Passion for customers, partners, and technology n Open and respectful with others and dedicated to making them better n Willingness to take on big challenges and see them through n Self critical, questioning and committed to personal excellence and self improvement n Accountable for commitments, results, and quality to customers, shareholders, partners and employees.

Tenets that propel our mission

The tenets central to accomplishing our mission include:

Customer trust. This means earning customer trust through the quality of our products and our responsiveness and accountability to customers and partners. Broad customer connection. This means connecting broadly with customers, understanding their needs and uses of technology, and providing support when they have questions or concerns. Innovative, evolving, and responsible platform leadership. This means expanding platform innovation, benefits, and opportunities for customers and partners, openness in discussing our future directions, getting feedback, and working with others to ensure that their products and our platforms work well together. Enabling people to do new things. This means broadening choices for customers by identifying new areas of business, incubating new products, integrating new customer scenarios into existing businesses, exploring acquisition of key talent and experience, and integrating more deeply with new and existing partners. A global inclusive commitment. This means thinking and acting globally, employing a multicultural workforce that generates innovative decision-making for a diverse universe of customers and partners, innovating to lower the costs of technology, and showing leadership in supporting the communities in which we work and live. Excellence. This means excellence in everything we do to deliver on our mission.

At Microsoft, we’re committed to our mission: improving the potential of our customers, and the world.

Source: Microsoft, http://members.microsoft.com/careers/mslife/whoweare/mission.mspx

Who We are/mission & values delivering on our mission

To enable people and businesses throughout the world to realize their full potential. delivering on this mission requires a clearly defined set of values and tenets. our company values are not new, but have recently been articulated to reinforce our new mission.

Microsoft: Who We are

miSSioN aNd vaLueS StudeNt exerciSe

SuggeSted aNSWerS

1. Which HRM functions are identified in the mission and values of Microsoft? Which functions are missing?

HR functions identified:

nStaffing: “achieving our mission requires great people who are bright, creative and energetic.”

nHR development: “committed to personal excellence and self-improvement.”

n HR planning: “this means broadening choices for customers by identifying new areas of business.”

nEmployee relations: “This means excellence in everything we do.”

n Global HRM: “A global inclusive commitment.”

n Diversity: “diverse universe of customers and partners.”

HR functions not identified:

nCompensation

n Health, safety and security.

2. How does the HR department influence how Microsoft wants to do business?

Employing a multi-cultural workforce requires a relationship with HR that allows for staffing processes and accommodations for a truly diverse workforce, from religious accommodations to dealing with language barriers. In addition, the older workforce is less likely to embrace new technology, so actively seeking out that community will take a conscious recruiting effort by HR. Building leaders and enabling employees to improve themselves requires a comprehensive employee development program and an effective compensation plan to reward professional development efforts.

Wal-Mart Stores

3 BaSic BeLiefS & vaLueS

tHree SimPLe tHiNgS tHat make uS great: Our unique culture has helped make Wal-Mart one of the world’s most admired companies. Since Sam Walton opened the first Wal-Mart in 1962, our culture has rested on three basic beliefs. We live out these beliefs every day in the way we serve our customers and each other.

respect for the individual Service to our customers Striving for excellence Servant Leadership Open Door Accountability Open Communications People Development Trust Humility Caring Teamwork Empowerment Confidentiality Listening Diversity

Friendly Atmosphere Pleasant Shopping Experience Every Day Low Prices Aggressive Hospitality Sundown Rule Satisfaction Guaranteed Sense of Urgency The 10-foot Rule Community Minded Quality Always!

Continuous Improvement Dissatisfaction with the Status Quo Results Oriented Integrity Always! Competitive Spirit Sustainability Failure Allowance Risk-taking Encouraged Expense Control Change Agents Compliance with the Laws

1. Respect for the Individual We’re hardworking, ordinary people who’ve teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect. 2. Service to our Customers Our customers are the reason we’re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers’ expectations. That’s when we’re at our very best. 3. Striving for Excellence We’re proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be. Or that a product’s quality was as high as customers deserved and expected. We always ask: Is this the best I can do? This demonstrates the passion we have for our business, for our customers, and for our communities.

Unique values support our three beliefs. Click on the links below for stories from Wal-Mart associates that illustrate the importance of our core beliefs.

Source: Wal-Mart , http://walmartstores.com/AboutUS/321.aspx

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