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:
1. Identify how firms gain sustainable competitive
advantage through people.
2. Explain how globalization is influencing human
resources management.
3. Describe the impact of information technology on
managing people.
4. Identify the importance of change management.
5. State HR’s role in developing intellectual capital.
6. Differentiate
TQMa and reengineering influence
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Objectives

(cont’d)
After studying this chapter, you should be able to:
7. Discuss the impact of cost pressures on HR
policies.
8. Discuss the primary demographic and employee
concerns pertaining to HRM.
9. Provide examples of the roles and competencies of
today’s HR managers.

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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.
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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
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Overall Framework for Human Resource Management

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Figure 1.2

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Competitive Challenges and Human
Resources Management
• The most pressing competitive issues facing
firms:
1. Going global
2. Embracing new technology
3. Managing change
4. Managing talent, or human capital
5. Responding to the market
6. Containing costs
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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

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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.
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 Adjusting
compensation


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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


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Influence of Technology in HRM
• Human Resources Information System (HRIS)
 A computerized system that provides current and
accurate data for the purposes of control and decision
making.
 Benefits:


Store and retrieve of large quantities of data.



Combine and reconfigure data to create new information.



Institutionalization of organizational knowledge.



Easier communications.



Lower administrative costs, increased productivity and
response times.

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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

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Source: “How HR Managers Use Technology Applications to Control HR Department
Costs,” Human Resource Department Management Report, no. 4–5 (May 2004).

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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 and
time savings

• Initial and annual
maintenance costs

• Compatibility with current
systems

• Training time required for
HR and payroll

• Availability of technical
support
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Challenge 3: Managing Change
• Types of Change

 Reactive change


Change that occurs after external forces have already
affected performance

 Proactive change


Change initiated to take advantage of targeted
opportunities

• Managing Change through HR
 Formal change management programs help to keep
employees focused on the success of the business.
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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 systematically planning for and creating shortterm “wins.”
7. Declaring victory too soon.
8. Not anchoring changes in the corporate culture.
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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.


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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.
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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.

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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.
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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.

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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

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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

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Productivity Enhancements

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Figure 1.3


Highlights in HRM

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Highlights 1.3

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Model of Diversity Management Strategy

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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

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