chapter 1 human resource management: gaining a competitive advantage copyright © 2015 mcgraw-hill...
TRANSCRIPT
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.
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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.
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HRM Practices
Responsibilities of HR Departments1. 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
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HR as a Business with 3 Product Lines
Business Partner Services
Strategic Partner
HumanResources
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6 HR Competencies
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-serviceOutsourcing
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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.
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HR’s Strategic Role in the Business
1. What is HR doing to provide value-added services to internal clients?
2. How are you measuring HR effectiveness?
3. How can we reinvest in employees?
4. What HR strategy will get the business from point A to point B?
5. What makes an employee want to stay?
6. How will we invest in HR for a better HR department than competitors?
7. What should we be doing to improve our marketplace position?
8. What’s the best change to prepare for the future?
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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.
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The HRM ProfessionHR 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
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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
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The Sustainability Challenge
Sustainability includes the ability to:deliver a return to shareholders provide high-quality products, services and work
experiences for employeesincrease value placed on intangible assets,
human capital and social responsibilityadapt to changing characteristics and
expectations of the labor forceaddress legal and ethical issueseffectively use new work arrangements
Economy - Implications for HRStructure of the economy
Social collaboration and social networking technology
Growth in professional and service occupations
Changing job skill demands
Intangible assetsKnowledge workersEmpowermentLearning organization
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Change and Its Effect on Employment Relationships
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 one’s job and company’s mission
Prospects for future growth with the company
Intention to stay with the company
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Talent Management
Talent management is the systematic planned strategic effort 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.
Alternative work arrangements include independent contractors, on-call workers, temporary workers, and contract company workers.
Demanding Work, but with more flexibility.
Balanced Scorecard and Social ResponsibilityBalanced scorecard provides a view of the company from the perspective of internal and external customers, employees and shareholders and is used to:
Link HRM activities to company’s business strategy.Evaluate extent HR is helping meet company’s strategic
objectives.Questions to identify HR related critical indicators or metrics:
1. How do customers see us?2. What must we excel at?3. Can we continuously improve and create value?4. How do we look to shareholders?
Social, ethical and environmental responsibility
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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.
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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
Average age of U.S. workforce will age.
Increased workforce diversity
Influence of immigration
Generational differences.
Gender and racial composition of the workforce
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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
Federal health care legislation
Companies who employ unlawful immigrants or abuse laborers
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Ethical Issues
Ethics - fundamental principles of right and wrong by which employees and companies interact
Ethical HR practices: HRM practices must result in greatest good for 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 Develop and distribute a Code Of Ethics, policy, process and procedures, audit and train employees
Sarbanes-Oxley Act of 2002
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4 Principles of Ethical Companies
Global Challenges
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Technology Challenge
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HRIS, Cloud Computing, and HR Dashboards
High-Performance Work Systems
Work Teams, Virtual Teams and Partnerships
Changes in Skill Requirements and new technology
Changes in Company Structure and Reporting Relationships.
HRM practices support high-performance work systems through staffing, work design, training, compensation and performance management.
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Meeting 4 Competitive Challenges Through HRM Practices
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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
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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.