Brands and HR
Niraj Dawar
March 9, 2007
                                                                                               Page 2
The Many Functions of HR…
      •      Administration Strategic Planning, organizational evaluation, policy
     recommendations, Staff Benefit, retirement benefits, vacation, sick leave, paid
  holidays, section 125 plan, donor program, educational incentive, uniform allowance, and
             others.CompensationSalary and benefit surveys, Job evaluation, job
   descriptions.Employee relations Disciplinary processes, incident investigations,
       complaint/grievance procedures, labor-management relations.Employee services
  Enrollment in benefits, employee discounts for recreational spots, resolution of problems,
   employee newsletter, educational assistance, employee service awards.Fiscal Staffing
  budgets, departmental budget, accounts payable, insurance receivables, insurance fund
          management, total package costing.Health and safety Employee assistance,
      Compensation, compliance, safety compliance and training.Labor relations
 Contract administration, collective bargaining, grievances.Leaves of absence, Family and
  Medical Leave rights, duty assignments. Payroll administration Performance appraisal
           evaluation systems, Training and talent development,.Record-keeping,
    litigation,.Recruitment, Job posting, advertising, testing administration, employment
   interviews, background investigations, post-offer employment testing. Separations and
        terminations, severance benefits, unemployment compensation, exit interviews,
              Organization Design, Team and Project Management,
 Copyright© 2007
 Richard Ivey School of Business
                                   Page 3
The Role of HR…
 Copyright© 2007
 Richard Ivey School of Business
                                          Page 4
Underlying Issue…
                                   FIT?
 Copyright© 2007
 Richard Ivey School of Business
                                        Page 5
The Time, Effort, Resource Sinks
•   Exception management
•   The right candidate for the job
•   Current employees that do not fit
•   Unmotivated individuals
•   Dysfunctional teams
•   …
    Copyright© 2007
    Richard Ivey School of Business
                                      Page 6
Markets are fraught with ‘fit’ risk
In markets characterized by:
• Many Buyers
• Many Sellers
• Imperfect information
   – Fit will always be a challenge
  Copyright© 2007
  Richard Ivey School of Business
                                                Page 7
Marketing’s Take on the issue
In one-to-many markets, the role of BRANDS is
  to facilitate FIT
  Copyright© 2007
  Richard Ivey School of Business
                                    Page 8
Brands
• What is a brand?
• What does it do?
  Copyright© 2007
  Richard Ivey School of Business
                                              Page 9
Brands
Are an efficient way to:
• Reduce risk
• Reduce search effort
• Result in buyers and sellers finding each
  other
• Result in a match at low cost
• Minimize problems of lack of ‘fit’
  Copyright© 2007
  Richard Ivey School of Business
                                   Page 10
The role of Brands in HR…
 Copyright© 2007
 Richard Ivey School of Business
                                    Page 11
Further Reading…
• Dawar, Niraj, and
  Charles Boulakia
  (1999), “Brands as
  Mental Real Estate,”
  Ivey Business Journal,
  Vol. 64 (1), September-
  October, 71-75.
• Dawar, Niraj (2004),
  “What Are Brands Good
  For?,” M.I.T. Sloan
  Management Review,
  Fall.Vol 36(1), 31-37
  Copyright© 2007
  Richard Ivey School of Business