Human Resource Management: Gaining a Competitive Advantage

Chapter 01 Human Resource Management: Gaining a Competitive Advantage

McGraw-Hill/Irwin

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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
1-2

HR as a Business with 3 Product Lines

Business Partner Services

Strategic Partner

Human Resources

1-3

6 HR Competencies
Credible Activist

Cultural Steward

Talent Manager/ Organizational Designer

Strategic Architect

Business Ally

Operational Executor

1-4

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

1-5

3 Competitive Challenges Influencing HRM

1-6

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
1-7

The Sustainability Challenge

Alternative Work Arrangements

1-8

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 ones job and companys mission Prospects for future growth with the company Intention to stay with the company

1-9

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

1-10

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.

1-11

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

1-12

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

1-13

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.

Offshoring exporting jobs from developed

countries to less developed countries

Onshoring exporting jobs to rural parts of

the United States

1-14

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.

1-15