chap001 human resource management gaining a competitive advantage

7/24/2019 Chap001 Human Resource Management Gaining a Competitive Advantage

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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, ll !ights !eser"e#$

Human Resource ManagementGaining a Competitive Advantage

Chapter 1

Human Resource Management:

Gaining a Competitive Advantage



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Learning Objectives

After reading this chapter, you should be able to:• Discuss the roles and activities of a company’s human

resource management function• Discuss the implications of the economy, the makeup of

the labor force, and ethics for company sustainability

• Discuss how human resource management affects acompany’s balanced scorecard

• Discuss what companies should do to compete in theglobal marketplace

• Identify the characteristics of the workforce and how theyinfluence human resource management

• Discuss human resource management practices thatsupport high-performance work systems

• rovide a brief description of human resourcemanagement practices



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Introduction

• Competitiveness ! a company’s

ability to maintain and gain market

share

• Human resource management !

the policies, practices, and systems

that influence employees’ behavior,

attitudes, and performance



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Responsibilities o HR!epartments

• "mployment and recruiting

• #raining and development

• $ompensation

• %enefits• "mployee services

• "mployee and community

relations

• ersonnel records

• &ealth and safety

• 'trategic planning



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"hat Roles !oHR !epartments #erorm$

Administrative

Services and Transactions

Business

Partner Services

Strategic PartnerHumanResources



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"hat Competencies !o HR#roessionals %eed$


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Ho& is the HRM 'unctionChanging$

• #ime spent on administrative tasks is decreasingand its roles as a strategic business partner,change agent, and employee advocate areincreasing

• #his shift presents two important challenges: ! (el)service ! giving employees online access to

information about &( issues

! Outsourcing ! the practice of having anothercompany provide services



Ho& is the HRM 'unctionChanging$

• As part of its strategic role, one of the keycontributions that &( can make is toengage in evidence-based &()

• *vidence)based HR ! demonstratingthat human resource practices have apositive influence on the company’sbottom line or key stakeholders)



+he HRM #roession

• &( salaries vary depending on educationand e*perience as well as the type ofindustry

• #he primary professional organi+ation for&( is the 'ociety for &uman (esourceanagement '&(.



Competitive ChallengesInluencing HRM

• #hree competitive challenges thatcompanies now face will increase the

importance of &( practices:

The Global

Challenge

The Challenge of

Sustainability

The Technology

Challenge



+he (ustainabilit, Challenge

• (ustainabilit, refers to the ability of acompany to survive and succeed in adynamic competitive environment

• (ta-eholders refers to shareholders, thecommunity, customers, and all otherparties that have an interest in seeing thatthe company succeeds




• 'ustainability includes the ability to: !provide a return to shareholders !provide high-/uality products, services,

and work e*periences for employees !increase value placed on intangible

assets and human capital !social responsibility

! Adapting to changing characteristicsand e*pectations of the labor force !0egal and ethical issues !"ffectively use new work arrangements




• #he changing structure of the economy

• 'kill demands for 1obs are changing

• 2nowledge is becoming more valuable ! Intangible assets -- human capital, customercapital, social capital, and intellectual capital

! .no&ledge &or-ers ! employees whocontribute to the company through a

speciali+ed body of knowledge ! *mpo&erment ! giving employeesresponsibility and authority to make decisionsregarding all aspects of product developmentor customer service

• 0earning organi+ation



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$hanges in "mployment "*pectations:

• s,chological contract

• Alternative &or- arrangements



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+he /alanced (corecard

• #he balanced scorecard gives managers the

opportunity to look at the company from the

perspective of internal and e*ternal customers,

employees and shareholders)

• #he balanced scorecard should be used to:

! 0ink human resource management activities to the

company’s business strategy)

! "valuate the e*tent to which the human resource

function is helping the company’s meet it’s

strategic ob1ectives)



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+he /alanced (corecard

• &ow do customers see us3

• 4hat must we e*cel at3

• $an we continue to improve and create

value3

• &ow do we look to shareholders3



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Customer (ervice and0ualit, *mphasis

• #otal 5uality anagement #5.

• $ore values of #5 include:

! designing methods and processes to meet the

needs of internal and e*ternal customers

! all employees receive training in /uality

! promotion of cooperation with vendors,

suppliers, and customers

! management gives feedback on progress



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Customer (ervice and0ualit, *mphasis

• Malcolm /aldrige %ational0ualit, A&ard

• I(O 222:3222

• (i4 (igma process



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Changing !emographics!iversit, o the "or-orce

• Internal labor orce is the labor force of

current employees

• *4ternal labor mar-et includes personsactively seeking employment

• #he 6)') workforce is aging rapidly



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Managing a !iverse "or-orce

• #o successfully manage a diverse workforce,

managers must develop a new set of skills,

including:

! $ommunicating effectively with employees from a

wide variety of cultural backgrounds ! $oaching and developing employees of different ages,

educational backgrounds, ethnicity, physical ability,

and race

! roviding performance feedback that is based on

ob1ective outcomes

! $reating a work environment that makes it

comfortable for employees of all backgrounds to be

creative and innovative



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Legal and *thical Issues

• 7ive main areas of the legal environment haveinfluenced &( over the past 89 years

! "/ual employment opportunity legislation

! "mployee safety and health

! "mployee pay and benefits ! "mployee privacy

! ob security

• 4omen and minorities still face the ;glass

ceiling<• (arbanes)O4le, Act o 3223



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Legal and *thical Issues

• "thical &( practices:

! &( practices must result in the

greatest good for the largest

number of people

! "mployment practices mustrespect basic human rights of

privacy, due process, consent,

and free speech

! anagers must treat employeesand customers e/uitably and

fairly



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+he Global Challenge

• #o survive companies must compete ininternational markets

• %e prepared to deal with the global

economy)• =ffshoring ! e*porting of 1obs from

developed countries to less developedcountries

• =nshoring ! e*porting 1obs to rural partsof the 6nited 'tates



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+he +echnolog, Challenge

!#he overall impact of the

Internet

!#he Internet has created a

new business model ! e-commerce ! in which

business transactions and

relationships can be

conducted electronically



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• Advances in technology have: !changed how and where we work

!resulted in high)perormance &or-

s,stems !increased the use of teams to improve

customer service and product /uality

!changed skill re/uirements

!increased working partnerships

!led to changes in company structure andreporting relationships



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• Advances in technology have:

!increased the use and availability ofHuman Resource Inormation

(,stems &(I'. !increased the use and availability of e)

HRM

!increased the competitiveness in high

performance work systems



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Meeting Competitive Challenges+hrough HRM #ractices

• &( practices that helpcompanies deal with the fourcompetitive challenges can begrouped into four dimensions ! #he human resource

environment

! Ac/uiring and preparing humanresources

! Assessment and development ofhuman resources

! $ompensating human resources



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• anaging internal and e*ternalenvironmental factors allows employeesto make the greatest possible contributionto company productivity andcompetitiveness

• $ustomer needs for new products orservices influence the number and type ofemployees businesses need to besuccessful



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• anagers need to ensure that employeeshave the necessary skills to performcurrent and future 1obs)

• %esides interesting work, pay andbenefits are the most important incentivesthat companies can offer employees ine*change for contributing to productivity,/uality, and customer service

chap001 human resource management gaining a competitive advantage

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