Human Resource Management: Gaining a Competitive Advantage

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8 Νοε 2013 (πριν από 4 χρόνια και 2 μέρες)

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Human Resource Management:

Gaining a Competitive Advantage

Chapter 1


Human Resource Management:
Gaining a Competitive
Advantage

Copyright
© 2010 by the
McGraw
-
Hill Companies, Inc. All rights reserved.

McGraw
-
Hill/Irwin

Learning Objectives


Discuss roles and activities of a company’s HRM function



Discuss implications of the economy, makeup of the labor
force, and ethics for company sustainability



Discuss how HRM affects a company’s balanced scorecard



Discuss what companies should do to compete in the
global marketplace



Identify the characteristics of the workforce and how they
influence HRM



Discuss HRM practices that support high
-
performance work
systems



Provide a brief description of HRM practices

1
-
2

Introduction


Competitiveness



a company’s
ability to maintain and gain market
share


Human resource management



the policies, practices, and systems
that influence employees’ behavior,
attitudes, and performance

.

1
-
3



Human Resource Management Practices



1
-
4

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


HR as a Business with 3 Product Lines

Administrative

Services and

Transactions

Business

Partner

Services

Strategic Partner

Human

Resources

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-
6

6 Competencies for the HR Profession

1
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7

How is the HRM Function Changing?


Time spent on administrative tasks is decreasing.


HR roles as a strategic business partner, change
agent, and employee advocate are increasing.


HR managers are 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 important challenges:


Self
-
service



giving employees online access to
information about HR issues


Outsourcing



the practice of having another
company provide services
to save money and spend
more time on strategic business issues.

1
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8

Questions Used to Determine If Human Resources
Are Playing a Strategic Role in the Business

1. What is HR doing to provide value
-
added services to internal clients?

2. What can the HR department add to the bottom line?

3. How are you measuring the effectiveness of HR?

4. How can we reinvest in employees?

5. What HR strategy will we use to get the business from point A to point B?

6. What makes an employee want to stay at our company?

7. How are we going to invest in HR so that we have a better HR

department than our competitors?

8. From an HR perspective, what should we be doing to improve our
marketplace position?

9. What’s the best change we can make to prepare for the future?

1
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9

How is the HRM Function Changing?


As part of its strategic role, one of the key
contributions that HR can make is to
engage in evidence
-
based HR.



Evidence
-
based HR


demonstrating
that human resource practices have a
positive influence on the company’s
bottom line or key stakeholders.

1
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10

The HRM Profession


HR salaries vary depending on education
and experience as well as the type of
industry



The primary professional organization for
HRM is the
Society for Human
Resource Management (SHRM)

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11

3 Competitive Challenges

Influencing HRM

Global

Sustainability

Technology

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12

The Sustainability Challenge


Sustainability

refers to the ability of a
company to survive and succeed in a
dynamic competitive environment.



Stakeholders

refers to shareholders, the
community, customers, and all other
parties that have an interest in seeing that
the company succeeds

1
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13

The Sustainability Challenge

Sustainability

includes the ability to:


provide a return to shareholders


provide high
-
quality products, services and
work experiences for employees


increase value placed on intangible assets


and human capital


social responsibility


Adapt to changing characteristics and expectations of
the labor force


Address legal and ethical issues


Effectively use new work arrangements

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14

The Sustainability Challenge


The changing structure of the economy



Skill demands for jobs are changing



Knowledge is becoming more valuable


Intangible assets

--

human capital, customer
capital, social capital, and intellectual capital


Knowledge workers



employees who
contribute to the company through a specialized
body of knowledge


Empowerment



giving employees
responsibility and authority to make decisions
regarding all aspects of product development or
customer service



Learning organization

1
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15

The Sustainability Challenge

2 Changes in Employment Expectations
:


1.
Psychological Contract

2.
Alternative Work Arrangements


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16

Concerns with Employee Engagement

Employee engagement
-

degree to which employees are fully
involved in their work and strength of their commitment.

10 Common Themes of Employee Engagement

1
Pride in employer

2
Satisfaction with employer

3
Satisfaction with the job

4
Opportunity to perform challenging work

5
Recognition and positive feedback from contributions

6
Personal support from manager

7
Effort above and beyond the minimum

8
Understanding the link between one’s job and the company’s mission

9
Prospects for future growth with the company

10
Intention to stay with the company

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17

The Balanced Scorecard


The
balanced scorecard
gives managers the
opportunity to look at the company from the
perspective of internal and external customers,
employees and shareholders.




The
balanced scorecard
should be used to:


Link human resource management activities to the
company’s business strategy.


Evaluate the extent to which the human resource
function is helping the company’s meet it’s
strategic objectives.

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18

The Balanced Scorecard


How do customers see us?


What must we excel at?


Can we continuously improve and
create value?


How do we look to shareholders?

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19

Customer Service and Quality


Total Quality Management (TQM)


Core values of TQM include
:


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 from occurring rather than being
detected and corrected.

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20

Customer Service and Quality Emphasis


Malcolm Baldrige National Quality
Award



ISO 9000:2000



Six Sigma Process



Lean Thinking

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21

Changing Demographics

Workforce Diversity


Internal labor force

is the labor force of
current employees



External labor market

includes persons
actively seeking employment


U.S. workforce is aging rapidly


Increased Workforce Diversity


Influence of Immigration


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22

Managing a Diverse Workforce

To successfully manage a diverse workforce, managers
must develop a new set of skills including:



Communicate, coach and develop employees from a
variety of backgrounds


Provide performance feedback that is based on objective
outcomes


Create a work environment that makes it comfortable for
employees of all backgrounds to be creative and
innovative
.


Recognize and respond to generational issues.

1
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23

Legal and Ethical Issues


5 areas of the legal environment that have
influenced HRM over the past 25 years
:

1.
Equal employment opportunity legislation

2.
Employee safety and health

3.
Employee pay and benefits

4.
Employee privacy

5.
Job security



Women and minorities still face the

glass ceiling




Sarbanes
-
Oxley Act of 2002

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24

Legal and Ethical Issues


Ethics
-

the fundamental principles by which
employees and companies interact



Ethical HR practices:


HRM practices must result in the greatest good for the
largest number of people


Employment practices must respect basic human rights
of privacy, due process, consent, and free speech


Managers must treat employees and customers
equitably and fairly

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25

4 Principles of Ethical Companies

1.
Successful companies, in their relationships with
customers, vendors, and clients, emphasize mutual
benefits.

2.
Employees assume responsibility for the actions of
the company.

3.
Companies have a sense of purpose or vision the
employees value and use in their day
-
to
-
day work.

4.
They emphasize fairness; another person’s interests
count as much as their own.

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26

The Global Challenge


To survive companies must compete in
international markets.


Be prepared to deal with the global
economy.



Offshoring



exporting jobs from
developed countries to less developed
countries


Onshoring



exporting jobs to rural parts
of the United States

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27

Technology Challenge


The overall impact of the Internet



The Internet has created a new
business model


e
-
commerce,
conducting business transactions and
relationships electronically

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28

The Technology Challenge


Advances in technology have:


changed how and where we work


resulted in
high
-
performance work
systems


increased the use of teams to improve
customer service and product quality


changed skill requirements


increased working partnerships


led to changes in company structure
and reporting relationships

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29

The Technology Challenge

Advances in technology have increased:



use and availability of
Human Resource
Information Systems

(HRIS)



use and availability of
e
-
HRM



competitiveness in high performance work
systems

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30

High
-
Performance Work Systems


Work in Teams


-
Virtual Teams


Changes in Skill Requirements


Working in Partnerships.


Changes in Company Structure and Reporting
Relationships.


Increased Use and Availability of e
-
HRM and
Human Resource Information Systems.



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31

Meeting 4 Competitive Challenges
Through HRM Practices

HRM practices that help companies deal with the
four competitive challenges can be grouped into
four dimensions:


1.
The HR environment

2.
Acquiring and preparing HR

3.
Assessment and development of HR

4.
Compensating HR

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32

Meeting Competitive Challenges
Through HRM Practices


Managing internal and external environmental
factors allows employees to make the greatest
possible contribution to company productivity
and competitiveness.



Customer needs for new products or services
influence the number and type of employees
businesses need to be successful.

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33

Meeting Competitive Challenges
Through HRM Practices


Managers need to ensure that employees
have the necessary skills to perform current
and future jobs.



Besides
interesting work
,
pay

and
benefits

are the most important
incentives

that companies can offer employees in
exchange for contributing to productivity,
quality, and customer service.


Create pay systems, reward employee contributions and provide benefits

1
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34

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.

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35