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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

Human Resources in a Globally Competitive Business Environment

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

21st-Century Corporations
Global
The timeline for the globalization of companies:
Early days: a company that sold goods overseas Middle period: a company that manufactured and sold goods in other countries 21st Century: a company that is able to call on talent and resources around the globe, just as it sells its goods and services around the globe

Speed
Speed in the 21st century company is a business strategy built on a virtual network of suppliers, manufacturers, and delivery firms

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

PeoplePeople-Driven Enterprises
The successful 21st-century company is one that realizes that it is the people that make up the business Some key challenges for managers of 21st-century enterprises:
Understanding the challenges the enterprise faces Seizing opportunities Managing frustration

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Managing People
Responsibilities of all managers:
Staffing Retention Development Adjustment Managing Change

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Key Features of the Competitive Business Environment


Globalization Technology E-Commerce Changing demographics Increasing cultural diversity

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

New Competitive Realities


Emergence of smaller companies with fewer employees Decline of management hierarchies, with an increase of networks of specialists Increase of technicians to keep networks operating Decline of the importance of seniority in compensation Overall worth based on performance plus the market value of a given position

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Competitive Strategies
Competitive strategies of the 21st century company
Innovation Quality Enhancement Cost-Reduction Speed

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

HRM Requirements of Competitive Strategies


Innovation Strategy Requires
Highly Skilled Employees More Employee Discretion Greater Investment and Risk

Quality-Enhancement Strategy Requires


Repetitive and predictable behaviors Long-term focus Modest amount of cooperative, interdependent behavior High emphasis on quality, modest concern for quantity

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

HRM Requirements of Competitive Strategies


Cost-Reduction Strategy Requires
Tight fiscal and management controls Minimization of overhead Pursuit of strict economies of scale

Speed Requires
Highly skilled employees who are time-focused Managers and employees must support change Company culture must support the fast-pace

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

The Importance of Productivity


Companies must give employees a higher stake in their success Companies must convince employees that rewards are derived from productivity Companies must recognize that no productivity problems have a quick fix Companies must embrace the philosophy of constant learning and improvement

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

The Emergence of QWL


Quality of Work Life is Driven By:
Employee understanding of company practices, democratic supervision, and employee involvement Employees perceptions of their overall satisfaction and safety

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Business Trends and Human Resource Competencies


Human Resource Managers must play four key roles that are consistent with current business trends:
Strategic Partners Innovators Collaborators Change Facilitators

Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.