Human resource management gaining a competitive advantage 2014 chapter 1

Learning Objectives Discuss roles and activities of HRM function  Discuss implications of the economy, makeup of the labor force and ethics for company sustainability  Discuss how H

Human Resource Management:

Learning Objectives

 Discuss roles and activities of HRM function

 Discuss implications of the economy, makeup of

the labor force and ethics for company

sustainability

 Discuss how HRM affects a balanced scorecard

 Discuss what companies should do to compete in global marketplace

 Identify how technology such as social

networking is influencing HRM

 Discuss HRM practices that support

high-performance work systems

 Provide a brief description of HRM practices

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Competitiveness – a company’s

ability to maintain and gain market

share

(HRM) – the policies, practices, and

systems that influence employees’

behavior, attitudes and performance

HRM Practices

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Responsibilities of HR

Departments

1 Employment and Recruiting

2 Training and Development

HR as a Business with 3 Product

Lines

Business Partner Services

Strategic Partner

Human Resources

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6 HR Competencies

Strategic Role of the HRM

 HR is challenged to shift focus from current

operations to future strategies and prepare

non-HR managers to develop and implement non-HR

Shared Service Model

Shared Service Model is a way to

organize the HR function that includes

centers of expertise or excellence,

service centers and business

partners to help control costs and

improve business-relevance and

timeliness of HR practices

HR Playing a Strategic Role

in the Business?

1. What is HR doing to provide value-added

services to internal clients?

2. What can HR add to the bottom line?

3. How are you measuring HR effectiveness?

4. How can we reinvest in employees?

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Questions, cont.

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

6 What makes an employee want to stay?

7 How will we invest in HR for a better HR

department than competitors have?

8 What should we be doing to improve our

marketplace position?

9 What’s the best change to prepare for the

future?

How is the HRM Function

Changing?

As part of its strategic role, HR can

engage in evidence-based HR

demonstrating that HR practices have

a positive influence on the company’s

bottom line or key stakeholders

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The HRM Profession

HR salaries vary according to position,

experience, education, training,

location and firm size

The primary professional organization

for HRM is the Society for Human

Resource Management (SHRM)

( www.shrm.org )

3 Competitive Challenges

Influencing HRM

Sustainability Technology

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The Sustainability Challenge

Sustainability is the ability of a

company to survive and succeed in a

dynamic competitive environment

Stakeholders include shareholders,

the community, customers and all

other parties that have an interest in

seeing that the company succeeds

The Sustainability Challenge

Sustainability includes the ability to:

and work experiences for employees

assets, human capital and social

responsibility

expectations

of the labor force

arrangements

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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

The Sustainability Challenge

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Common Themes of 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

Talent Management

Talent management is the systematic

planned strategic effort by a company to

use bundles of HRM practices including

acquiring and assessing employees,

learning and development, performance

management , and compensation to

attract, retain, develop, and motivate

highly skilled employees and managers.

Growth of contingent workers and

part-time employees

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The Balanced Scorecard

view of the company from the

perspective of internal and external

customers, employees and

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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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

Customer Service and Quality

Malcolm Baldrige National Quality

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

Managing a Diverse Workforce

To manage a diverse workforce, managers must

develop new skills to:

 Communicate, coach and develop employees

from a variety of cultural and educational

backgrounds, ethnicity, age, ability and race.

 Provide performance feedback 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.

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Legal and Ethical Issues

5 legal areas that influenced HRM :

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

Federal health care legislation

Companies which employ unlawful immigrants or

abuse laborers

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

 Managers must develop and distribute a Code of Ethics, policies, processes and procedures, audit and train

employees

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4 Principles of Ethical

Companies

1 Successful companies, in 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

The Global Challenge

To survive companies must deal with

the global economy, compete in and

develop global markets and prepare

employees for global assignments

Offshoring – exporting jobs from

developed countries to less developed

countries

Onshoring – exporting jobs to rural

parts of the United States

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Technology Challenge

The overall impact of the Internet

The Internet has created a new

business model – e-commerce – for

conducting business transactions

and relationships electronically

 Social networking

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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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

 HR Dashboard Metrics

High-Performance Work

Systems

 Work in teams, virtual teams’ and partnerships

 Changes in skill requirements

 Changes in company structure and reporting

relationships

 Increased use and availability of e-HRM and

Human Resource Information Systems (HRIS)

 HRM practices support high-performance work

systems through staffing, work design, training, compensation and performance management.

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2. Acquiring and preparing HR

3. Assessment and development of HR

4. Compensating HR

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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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

partner services, and strategic services.

credibility, business and technology knowledge,

understanding of business strategy, and ability to deliver HR services.

sustainability, globalization, and technology challenges

challenges.

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