Human resource management 8e by gomez mejia 2016 chapter 01

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Chapter 1

Resources Challenges

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Chapter Challenges

1 Understand the major challenges affecting HR

2 Develop competence in planning and implementing strategic HR policies

3 Develop competence in selecting HR strategies to increase firm

performance

4 Become aware of HR best practices

1-2

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Chapter Challenges

4 Understand the need to establish a close partnership between the HR

department and managers

5 Recognize career opportunities in various human resources

management subfields

1-3

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Human Resources Strategy

Human resources strategy refers to a firm’s deliberate use of human

resources to help it gain or maintain an edge against competitors in the

marketplace

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Key HR Challenges

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Organizational culture refers to the basic assumptions and beliefs

shared by members of an organization

Organizational Culture

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Key Elements of Organizational Culture

• Observed behavioral regularities

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Strategic HR Policies: Benefits

• Encouraging Proactive Behavior

• Communicating Company Goals

• Stimulating Critical Thinking and Examination of Assumptions

• Identification of Gaps Between Current Situation and Future Vision

• Encouragement of Line Managers’ Participation

• Identification of HR Constraints and Opportunities

• Creating Common Bonds

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Strategic HR Policies: Challenges

• Maintaining a Competitive Advantage

• Reinforcing Overall Business Strategy

• Avoiding Excessive Concentration on Daily Problems

• Develop HR Strategies Suited to Unique Organizational Features

• Coping with Environment

• Securing Management Commitment

• Translating the Strategic Plan into Action

• Combining Intended and Emergent Strategies

• Accommodating Change

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Selecting HR Strategies

• To increase firm performance

• HR strategies should fit with other organizational aspects

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HR Fit with Organizational Strategies

Corporate Strategies

Evolutionary Business Steady State

Porter’s Business Unit Strategies

Cost Leadership Differentiation Focus

Miles & Snow’s Business Strategies

Defender Prospector

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Miles & Snow’s Business Strategies

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HR Fit with Environment

• Degree of Uncertainty

• Magnitude of Change

• Volatility

• Complexity

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HR Fit with Environment

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HR Fit with Organizational Characteristics

• Production Process

• Firm’s Market Posture

• Firm’s Overall Managerial Philosophy

• Firm’s Organizational Structure

• Firm’s Organizational Culture

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o Help firm exploit its competencies

o Assist the firm to help use its HR skills

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HR Department Managers:

An Important Partnership

To foster effective partnerships, companies should:

• Analyze the people side of productivity

• View HR roles as consultants

• Instill a shared sense of common fate

• Require HR training to include managerial experience

• Actively involve top corporate and divisional managers in HR plans

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HR Audit

Periodic HR Audits should ask:

Is the turnover rate exceptionally low or high?

Are employees who quit good employees or marginal?

What is the firm’s ROI regarding recruitment, training, and performance plans?

Is the firm complying with government regulations?

How well is the company managing employee diversity?

Are HRM policies and procedures helping the firm reach long-term goals?

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Summary and Conclusions

• HR Challenges Facing Managers

o Environmental Challenges

o Organizational Challenges

o Individual Challenges

• Planning and Implementing Strategic HR Policies

o Policies and procedures should be congruent

• Selecting HR Strategies to Increase Firm Performance

• The Important Partnership of HR and Managers

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Pearson Education, Inc.

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Second level

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Fourth level

Fifth level

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