Human Resource Management: Gaining a Competitive Advantage Chapter 01 Human Resource Management: Gaining a Competitive Advantage Learning Objectives After reading this chapter, you should be able to: ? Discuss the roles and activities of a company’s human resource management function. page 5 ? Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. page 15 ? Discuss how human resource management affects a company’s balanced scorecard. page 28 ? Discuss what companies should do to compete in the lobal marketplace.
page 44 2 1 8/28/2012 Learning Objectives After reading this chapter, you should be able to: ? Identify how new technology, such as social networking, is influencing human resource management. page 48 ? Discuss human resource management practices that support high-performance work systems. page 50 ? Provide a brief description of human resource management practices. page 56 3 Strategic HRM 2 8/28/2012 Responsibilities of HR Departments 1. Employment and Recruiting 2. Training and Development 3.
Compensation 4. Benefits 5. Employee Services 6.Employee and Community Relations 7. Personnel Records 8. Health and Safety 9. Strategic Planning 1-5 Responsibilities of HR Departments ? One employee dedicated to handle HR related matters is usually necessary in a company of ____ employees. A.
10-25 B. 25-50 C. 75-100 D. Above 200 3 8/28/2012 HR as a Business with 3 Product Lines Business Partner Services Strategic Partner Human Resources 1-7 Strategic Role of the HRM Function ?Time spent on administrative tasks is decreasing.
?HR roles as a strategic business partner, change agent and employee advocate are increasing. HR is challenged to shift focus from current operations to future strategies and prepare non-HR managers to develop and implement HR practices. ?This shift presents two challenges: ? Self-service ? Outsourcing 1-8 4 8/28/2012 3 Competitive Challenges Influencing HRM 1-9 Economy- Implications for HR ?Structure of the economy ? Development and speed of social media ? Growth in professional and service occupations ? Skill demands for jobs are changing ? Knowledge is becoming more valuable ? Intangible assets ? Knowledge workers ? Empowerment ? Learning organization ?Social collaboration and social networking technology 1-10 5 8/28/2012 The Sustainability Challenge Alternative Work Arrangements 1-11 Common Themes Employee Engagement ? Pride and satisfaction with employer and job ? Opportunity to perform challenging work ? Recognition and positive feedback from contributions ? Personal support from manager ? Effort above and beyond the minimum ? Understanding link between one’s job and company’s mission ? Prospects for future growth with the company ? Intention to stay with the company 1-12 6 8/28/2012 Talent Management Talent management is the systematic planned strategic effort by a company to use bundles of HRM practices acquiring and assessing employees, learning and development, performance management and compensation to attract, retain, develop and motivate highly skilled employees and managers. ? Growth- contingent workers and part-time employees 1-13 Customer Service and Quality ?Total Quality Management (TQM) Core Values • Methods and processes are designed to meet internal and external customers’ needs.
• Every employee receives training in quality. Promote cooperation with vendors, suppliers and customers. • Managers measure progress with feedback based on data.
• Quality is designed into a product or service so that errors are prevented rather than being detected and corrected. 1-14 7 8/28/2012 Changing Demographics Workforce Diversity ? Internal labor force – current employees ? External labor market – persons outside the firm actively seeking employment ? U. S. workforce is aging rapidly ? Increased Workforce Diversity ? Influence of Immigration 1-15 Legal and Ethical Issues ? 5 legal areas that influenced HRM : 1.
2. 3. 4. 5.
Equal employment opportunity legislation Employee safety and health Employee pay and benefits Employee privacy Job security ? Women and minorities still face the “glass ceiling” ? Sarbanes-Oxley Act of 2002 ? Federal health care legislation ? Companies who employ unlawful immigrants or abuse laborers ? Data-security practices and protecting intellectual property 1-16 8 8/28/2012 Global and Technology Challenges ? To survive companies must deal with the global economy, compete in and develop global markets and prepare employees for global assignments. countries to less developed countries the United States Offshoring – exporting jobs from developed ? Onshoring – exporting jobs to rural parts of 1-17 Summary ? HR has three product lines: administrative services, business partner services, and strategic services. ? To successfully manage HR, individuals need personal credibility, business and technology knowledge, understanding of business strategy, and ability to deliver HR services. ? HR management practices should be evidence-based. ? HR practices are important for helping companies deal with sustainability, globalization, and technology challenges.
? HR managers must address global and technology challenges. 1-18 9