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

Human ResourceManagement

GAINING ACOMPETITIVEADVANTAGE

Fourth Edition

Raymond A. NoeThe Ohio State University

John R. HollenbeckMichigan State University

Barry GerhartVanderbilt University

Patrick M. WrightCornell University

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

ObjectivesAfter reading this chapter, you should be able to:

Chapter

1. Discuss the roles and activities of a company’s activities of a company’s human resource function.

2. Discuss the implications of the new economy and e-business for HRM practices

3. Discuss how human resource practices affect a company’s balanced scorecard.

4. Discuss what companies should do to be competitive in the global marketplace

5. Identify the characteristics of the work force and how they influence human resource management practices.

6. Discuss human resource practices that support high-performance work systems.

7. Provide a brief description of human resource management practices.

Human Resource Management: Gaining a Competitive Advantage1

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

Competitiveness and HRM

Competitiveness- refers to the company’s ability to maintain and gain market share in its industry.

HRM- refers to policies, practices and systems that influence employees behaviors, attitudes and performance.

Effective HRM Company

PracticesPerformance

affects

1-2

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

HR Function in Transition

Administrative Strategic

Function Business

Partner

1-3

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

Competitive Challenges Influencing HRM

Competing in the New Economy

The Global Challenge

The Challenge of Meeting Stakeholders’ Needs

The High Performance Work System Challenge

1-4

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

Competing in the New Economy

Develop an E-Business

Competition of Labor

Knowledge Value Increase

Required Skills

1-5

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Competing in the New Economy

Employment Relationship Changes

More Flexibility Included in Demanding Work

Ways of to Win the War for Talent

1-6

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Competing Through Globalization

Expand into foreign markets.

HRM practices that create competitiveness in foreign markets.

Prepare employees to work in foreign locations.

1-7

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

Competing by Meeting Stakeholders’ Needs

1-8

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S tockh o ld ers C u s tom ers E m p loyees C om m u n ity

S takeh o ld ers

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

Competing by Meeting Stakeholders’ Need

The balanced scorecard Meeting customer needs for quality Labor force of economy Legislation and litigation Ethical considerations

1-9

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

Principles of Total Quality Management

1-10

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1. Customer Focus1. Customer Focus6. FEEDBACK6. FEEDBACK5. Fact-based

decision-making5. Fact-based

decision-making

4. employee’sexpertise

4. employee’sexpertise

TRANSFORMATIONPROCESS

2. focus on process 3. prevention vs. inspection

TRANSFORMATIONPROCESS

2. focus on process 3. prevention vs. inspection

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

Categories and Point Values: Malcolm Baldrige Award

1-11

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Business Results - 450 points

Customer Focus - 80 points & Market Focus

Process Management - 100 points

HRD & Management - 100 pointsHRD & Management - 100 points

Leadership - 110 points

Information Analysis - 80 points

Strategic Planning - 80 points

Total points = 1000

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

ISO 9000

ISO 9000It was developed by the International Organization

for Standardization in Geneva, Switzerland. It is the name of a family of standards that includes

requirements such as how to establish quality standards and document work processes to help workers understand quality system requirements.

It has been adopted as a quality standard in nearly 100 countries.

1-12

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

Six Sigma Process

The Six Sigma Process System of measuring, analyzing, improving, and

then controlling processes once they have been brought within the narrow Six Sigma quality tolerances or standards.

Objective is to create a total business focus on serving the customer—that is, deliver what customers really want when they want it.

1-13

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

Composition of the Labor Force

Internal Labor Force – the labor force of the current employees

External Labor Force – persons actively seeking employment

Managing Diversity To successfully manage a diverse workforce, managers

much develop a new set of skills. Many US companies have already made a commitment

to ensuring that diversity in their workforce is recognized and effectively used for competitive advantage.

1-14

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HIGH-PERFORMANCEWork System Challenge

Change in work roles & skills

Use of teams

Change in nature of managerial work

Change in company structures

Availability of HRM databases and e-HRM

Increased competitiveness

1-15

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

Dimensions ofHR Practices

Managing the HR Environment Acquiring and Preparing HR Assessing and Developing HR Compensating HR

COMPETITIVENESS1-16

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