Chapter 1

Human Resource Management:

Gaining a Competitive Advantage

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
 Learning Objectives
1. Discuss roles and activities of HRM function
2. Discuss implications of the economy, makeup of
the labor force and ethics for company
sustainability
3. Discuss how HRM affects a balanced scorecard
4. Discuss what companies should do to compete
in global marketplace
5. Identify how technology such as social
networking is influencing HRM
6. Discuss HRM practices that support high-
performance work systems
7. Provide a brief description of HRM practices
 Introduction
• Competitiveness – a company’s ability to
maintain and gain market share.
• Human resource management (HRM) – the
policies, practices, and systems that influence
employees’ behavior, attitudes and performance.

1-3
HRM Practices
 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

Business
Partner
Services

Human
Resources
Administrative
Services and Strategic Partner
Transactions

1-6
6 HR Competencies
Credible Activist

Cultural Steward

Business Ally

Strategic Architect

Operational Executor

Talent Manager/Organizational
Designer
 How is the HRM
Function Changing?
• As part of its strategic role, HR
can engage in evidence-based HR.

• Evidence-based HR – demonstrating that

HR practices have a positive influence on
the company’s bottom line or key
stakeholders.
 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

Technology
Sustainability
Globalization

1-10
 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

1-11
Customer Service and
Quality

Customers expect excellent service.

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.
1-12
 Customer Service and Quality

Malcolm Baldrige National Quality

Award
ISO 9000:2000
Six Sigma Process
Lean Thinking
Changing Demographics and Workforce Diversity
• Internal labor force - current employees
• External labor market - persons outside the firm actively
seeking employment
• Increased workforce diversity
• Influence of immigration
• Generational differences.
• Gender and racial composition of the workforce

1-14
 Legal Issues
• Employment laws and regulations
• Eliminating discrimination and harassment
• Workplace safety
• Data security practices and protecting intellectual
property
• Electronic monitoring and surveillance
• Employee privacy rights, intellectual property rights
and social media

1-15
Ethical Issues
Ethics - fundamental principles
of right and wrong by which
employees and companies interact
Ethical HR practices:
 must result in greatest good for largest number of
people
 must respect basic human rights of privacy, due process,
consent, and free speech
 Managers must treat employees and customers
equitably and fairly
 Develop and distribute a Code Of Ethics, policy, process
and procedures, audit and train employees

1-16
Technology Challenge

Advanced
technologies Internet

Social networking

1-17
HRIS, Cloud Computing, and HR
Dashboards

HR Information
Systems (HRIS)

Advances in
technology
have
increased:

HR
Cloud
Dashboard
computing
Metrics
 Meeting Competitive
Challenges Through HRM
Practices

• Managing internal and external environmental

factors allows employees to make 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.
• Assessment, Development and Compensation of HR
 Summary
 HR has three product lines: administrative
services, business partner services, and strategic
services.
 HR managers need personal credibility, business
and technology knowledge, understanding of
business strategy, and ability to deliver HR
services.
 HR practices are important for helping companies
deal with sustainability, globalization, and
technology challenges and should be evidence-
based.