HRM 5th chapter 1 the world of human resources management

The World of Human Resources Management Managing Human Resources Belcourt * Bohlander * Snell Copyright © 2008 by Nelson, a division of Thomson Canada Limited All rights reserved 5th Canadian edition PowerPoint Presentation by Monica Belcourt, York University and Charlie Cook, The University of West Alabama Objectives After studying this chapter, you should be able to: Identify how firms gain sustainable competitive advantage through people Explain how globalization is influencing human resources management Describe the impact of information technology on managing people Identify the importance of change management State HR’s role in developing intellectual capital Differentiate TQMa and reengineering influence Copyright © 2008 byhow Nelson, HRofsystems division Thomson Canada Ltd 1–2 Objectives (cont’d) After studying this chapter, you should be able to: Discuss the impact of cost pressures on HR policies Discuss the primary demographic and employee concerns pertaining to HRM Provide examples of the roles and competencies of today’s HR managers Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–3 Why Study Human Resources Management • Human Resources Management (HRM)  The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives • “Why Study HRM?”  Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–4 Competitive Advantage through People • Core Competencies  Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers • Sustained competitive advantage through people is achieved if these human resources:  Have value  Are rare and unavailable to competitors  Are difficult to imitate  Are organized for synergy Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–5 Overall Framework for Human Resource Management Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Figure 1.2 1–6 Competitive Challenges and Human Resources Management • The most pressing competitive issues facing firms: Going global Embracing new technology Managing change Managing talent, or human capital Responding to the market Containing costs Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–7 Challenge 1: Going Global • Globalization  The trend toward opening up foreign markets to international trade and investment • Impact of globalization  “Anything, anywhere, anytime” markets  Partnerships with foreign firms  Lower trade and tariff barriers Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–8 Challenge 1: Going Global (cont’d) • Corporate Social Responsibility  The responsibility of the firm to act in the best interests of the people and communities affected by its activities • Impact on HRM  Different geographies, cultures, laws, and business practices  Issues: Identifying capable managers and workers  Developing foreign culture and work practice training programs Copyright © 2008 by Nelson, a plans for overseas work  Adjusting compensation  division of Thomson Canada Ltd 1–9 Challenge 2: Embracing New Technology • Knowledge Workers  Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving • Knowledge-Based Training Online instruction  “Just-in-time” learning via the Internet on company intranets  Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–10 Challenge 3: Managing Change (cont’d) • Why Change Efforts Fail: Not establishing a sense of urgency Not creating a powerful coalition to guide the effort Lacking leaders who have a vision Lacking leaders who communicate the vision Not removing obstacles to the new vision Not systematically planning for and creating shortterm “wins.” Declaring victory too soon Not anchoring changes in the corporate culture Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–15 Challenge 4: Managing Talent, or Human Capital • Human Capital  The knowledge, skills, and capabilities of individuals that have economic value to an organization  Valuable because capital: is based on company-specific skills  is gained through long-term experience  can be expanded through development  Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–16 Challenge 5: Responding to the Market • Total Quality Management (TQM)  A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement • Six Sigma  A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–17 Challenge 5: Responding to the Market (cont’d) • Reengineering and HRM  Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed  Requires that managers create an environment for change  Depends on effective leadership and communication processes  Requires that administrative systems be reviewed and modified Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–18 Challenge 6: Containing Costs • Downsizing  The planned elimination of jobs (“head count”)  Layoffs • Outsourcing  Contracting outside the organization to have work done that formerly was done by internal employees • Offshoring  The business practice of sending jobs to other countries Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–19 Challenge 6: Containing Costs (cont’d) • Employee Leasing  The process of dismissing employees who are then hired by a leasing company (which handles all HRrelated activities) and contracting with that company to lease back the employees Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–20 Challenge 6: Containing Costs (cont’d) • Hidden Costs of Layoff  Severance and rehiring costs  Accrued vacation and sick day payouts  Pension and benefit payoffs  Potential lawsuits from aggrieved workers  Loss of institutional memory and trust in management  Lack of staffers when the economy rebounds  Survivors who are risk-averse, paranoid, and political Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–21 Challenge 6: Containing Costs (cont’d) • Benefits of a No-Layoff Policy  A fiercely loyal,more productive workforce  Higher customer satisfaction  Readiness to snap back with the economy  A recruiting edge  Workers who aren’t afraid to innovate, knowing their jobs are safe Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–22 Productivity Enhancements Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–23 Figure 1.3 Highlights in HRM Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Highlights 1.3 1–24 Model of Diversity Management Strategy Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Source: Reprinted by permission of Sage Publications from “Managing for Effective Workforce Diversity” by Kathleen Iverson from The Cornell Hotel and Restaurant Administration Quarterly 41, no (April 2000): 31–38 Figure 1.5 1–25 Highlights in HRM Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Source: Survey data from Gail Robinson and Kathleen Dechant, “Building a Business Case for Diversity,” Academy of Management Executive 11, no (August 1997): 21–31; permission conveyed through the Copyright Clearance Center, Inc Highlights 1.6 1–26 Cultural Changes Employee Employee Rights Rights Concern Concernfor for Privacy Privacy Cultural Cultural Changes Changes Balancing BalancingWork Work and andFamily Family Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Attitudes Attitudes towards towardsWork Work 1–27 Qualities of Human Resources Managers • Responsibilities • Competencies Advice and counsel Business mastery Service HR mastery Policy formulation and implementation Change mastery Personal credibility Employee advocacy Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1–28 Key Terms • corporate social responsibility • knowledge workers • downsizing • offshoring • employee leasing • outsourcing • globalization • proactive change • human capital • reactive change • human resources information system (HRIS) • reengineering • human resources Copyright © 2008 by Nelson, a management (HRM) division of Thomson Canada Ltd • total quality management (TQM) • managing diversity • Six Sigma 1–29 [...]... a division of Thomson Canada Ltd 1 18 Challenge 6: Containing Costs • Downsizing  The planned elimination of jobs (“head count”)  Layoffs • Outsourcing  Contracting outside the organization to have work done that formerly was done by internal employees • Offshoring  The business practice of sending jobs to other countries Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1 19 Challenge... by Nelson, a division of Thomson Canada Ltd 1 11 Highlights in HRM Most Common HR Information Systems Applications Payroll 76.7% Benefits administration 57 .1 Benefits enrollment 41. 4 Recruiting—applicant tracking 39 .1 Personnel administration 39 .1 Training and development 31. 6 Employee self-service 24.8 Manager self-service 18 .0 Other 3.8 Copyright © 2008 by Nelson, a division of Thomson Canada Ltd... back with the economy  A recruiting edge  Workers who aren’t afraid to innovate, knowing their jobs are safe Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1 22 Productivity Enhancements Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1 23 Figure 1. 3 Highlights in HRM Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Highlights 1. 3 1 24 Model of Diversity Management. .. employees focused on the success of the business Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1 14 Challenge 3: Managing Change (cont’d) • Why Change Efforts Fail: 1 2 3 4 5 6 Not establishing a sense of urgency Not creating a powerful coalition to guide the effort Lacking leaders who have a vision Lacking leaders who communicate the vision Not removing obstacles to the new vision Not... Case for Diversity,” Academy of Management Executive 11 , no 3 (August 19 97): 21 31; permission conveyed through the Copyright Clearance Center, Inc Highlights 1. 6 1 26 Cultural Changes Employee Employee Rights Rights Concern Concernfor for Privacy Privacy Cultural Cultural Changes Changes Balancing BalancingWork Work and andFamily Family Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Attitudes... day payouts  Pension and benefit payoffs  Potential lawsuits from aggrieved workers  Loss of institutional memory and trust in management  Lack of staffers when the economy rebounds  Survivors who are risk-averse, paranoid, and political Copyright © 2008 by Nelson, a division of Thomson Canada Ltd 1 21 Challenge 6: Containing Costs (cont’d) • Benefits of a No-Layoff Policy  A fiercely loyal,more... offshoring • employee leasing • outsourcing • globalization • proactive change • human capital • reactive change • human resources information system (HRIS) • reengineering • human resources Copyright © 2008 by Nelson, a management (HRM) division of Thomson Canada Ltd • total quality management (TQM) • managing diversity • Six Sigma 1 29 ... division of Thomson Canada Ltd 1 16 Challenge 5: Responding to the Market • Total Quality Management (TQM)  A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement • Six Sigma  A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another... Strategy Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Source: Reprinted by permission of Sage Publications from “Managing for Effective Workforce Diversity” by Kathleen Iverson from The Cornell Hotel and Restaurant Administration Quarterly 41, no 2 (April 2000): 31 38 Figure 1. 5 1 25 Highlights in HRM Copyright © 2008 by Nelson, a division of Thomson Canada Ltd Source: Survey data from... 2008 by Nelson, a division of Thomson Canada Ltd Source: “How HR Managers Use Technology Applications to Control HR Department Costs,” Human Resource Department Management Report, no 4–5 (May 2004) 1 12 Highlights 1. 2 HRM IT Investment Factors • Fit of the application to the firm’s employee base • Ability to upgrade • Time required to implement and train staff members to use HRIS • Increased efficiency