Human resource management gaining a competitive advantage mcgraw hill chap001

Human Resource Management: Gaining a Competitive Advantage Chapter 01 Human Resource Management: Gaining a Competitive Advantage McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved Learning Objectives  Discuss roles and activities of HRM function  Discuss implications of the economy, makeup of the labor force and ethics for company sustainability  Discuss how HRM affects a balanced scorecard  Discuss what companies should to compete in global marketplace  Identify how technology such as social networking is influencing HRM  Discuss HRM practices that support highperformance work systems  Provide a brief description of HRM practices 1-2 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 1-4 Responsibilities of HR Departments Employment and Recruiting Training and Development Compensation Benefits Employee Services Employee and Community Relations Personnel Records Health and Safety Strategic Planning 1-5 HR as a Business with Product Lines Business Partner Services Strategic Partner Human Resources 1-6 HR Competencies 1-7 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 nonHR managers to develop and implement HR practices This shift presents two challenges: Self-service Outsourcing 1-8 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 1-9 HR Playing a Strategic Role in the Business? What is HR doing to provide value-added services to internal clients? What can HR add to the bottom line? How are you measuring HR effectiveness? How can we reinvest in employees? 1-10 Customer Service and Quality Malcolm Baldrige National Quality Award ISO 9000:2000 Six Sigma Process Lean Thinking 1-24 Changing Demographics Workforce Diversity Internal labor force - current employees External labor market - persons outside the firm actively seeking employment U.S workforce is aging rapidly Increased workforce diversity Influence of immigration 1-25 Managing a Diverse Workforce To manage a diverse workforce, managers must develop new skills to:  Communicate, coach and develop employees from a variety of cultural and educational backgrounds, ethnicity, age, ability and race  Provide performance feedback based on objective outcomes  Create a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative  Recognize and respond to generational issues 1-26 Legal and Ethical Issues  legal areas that influenced HRM : Equal employment opportunity legislation Employee safety and health Employee pay and benefits Employee privacy Job security  Women and minorities still face the “glass ceiling”  Sarbanes-Oxley Act of 2002  Federal health care legislation  Companies which employ unlawful immigrants or abuse laborers  Data-security practices and protecting intellectual property 1-27 Legal and Ethical Issues  Ethics - the fundamental principles by which employees and companies interact  Ethical HR practices:  HRM practices must result in the greatest good for the 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  Managers must develop and distribute a Code of Ethics, policies, processes and procedures, audit and train employees 1-28 Principles of Ethical Companies Successful companies, in relationships with customers, vendors and clients, emphasize mutual benefits Employees assume responsibility for the actions of the company Companies have a sense of purpose or vision the employees value and use in their day-today work They emphasize fairness; another person’s interests count as much as their own 1-29 The Global Challenge To survive companies must deal with the global economy, compete in and develop global markets and prepare employees for global assignments Offshoring – exporting jobs from developed countries to less developed countries Onshoring – exporting jobs to rural parts of the United States 1-30 Technology Challenge  The overall impact of the Internet  The Internet has created a new business model – e-commerce – for conducting business transactions and relationships electronically  Social networking 1-31 The Technology Challenge Advances in technology have: changed how and where we work resulted in high-performance work systems increased the use of teams to improve customer service and product quality changed skill requirements increased working partnerships led to changes in company structure and reporting relationships 1-32 The Technology Challenge Advances in technology have increased:  use and availability of Human Resource Information Systems (HRIS)  use and availability of e-HRM  competitiveness in high-performance work systems  HR Dashboard Metrics 1-33 High-Performance Work Systems  Work in teams, virtual teams’ and partnerships  Changes in skill requirements  Changes in company structure and reporting relationships  Increased use and availability of e-HRM and Human Resource Information Systems (HRIS)  HRM practices support high-performance work systems through staffing, work design, training, compensation and performance management 1-34 Meeting Competitive Challenges Through HRM Practices HRM practices that help companies deal with the four competitive challenges can be grouped into four dimensions: The HR environment Acquiring and preparing HR Assessment and development of HR Compensating HR 1-35 Meeting Competitive Challenges Through HRM Practices  Managing internal and external environmental factors allows employees to make the 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 1-36 Meeting Competitive Challenges Through HRM Practices  Managers need to ensure that employees have the necessary skills to perform current and future jobs  Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality, and customer service  Create pay systems, reward employee contributions and provide benefits 1-37 Summary  HR has three product lines: administrative services, business partner services, and strategic services  To successfully manage HR, individuals need personal credibility, business and technology knowledge, understanding of business strategy, and ability to deliver HR services  HR management practices should be evidence-based  HR practices are important for helping companies deal with sustainability, globalization, and technology challenges  HR managers must address global and technology challenges 1-38 ... services and work experiences for employees increase value placed on intangible assets, human capital and social responsibility adapt to changing characteristics and expectations of the labor force... highperformance work systems  Provide a brief description of HRM practices 1-2 Introduction Competitiveness – a company’s ability to maintain and gain market share Human resource management (HRM)... the company  Intention to stay with the company 1-19 Talent Management Talent management is the systematic planned strategic effort by a company to use bundles of HRM practices including acquiring