Human resource management gaining a competitive advantage 2014 chapter 1

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 do 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
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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.

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HRM Practices

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Responsibilities of HR Departments
1. Employment and Recruiting
2. Training and Development
3. Compensation
4. Benefits
5. Employee Services
6. Employee and Community Relations
7. Personnel Records
8. Health and Safety
9. Strategic Planning
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HR as a Business with 3 Product Lines

Business
Partner
Services
Strategic Partner

Human
Resources

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6 HR Competencies

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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 non-HR
managers to develop and implement HR practices.

This shift presents two challenges:
 Self-service
 Outsourcing

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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.

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HR Playing a Strategic Role
in the Business?
1. What is HR doing to provide value-added
services to internal clients?

2. What can HR add to the bottom line?
3. How are you measuring HR effectiveness?
4. How can we reinvest in employees?

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Questions, cont.
5. What HR strategy will get the business
from point A to point B?
6. What makes an employee want to stay?

7. How will we invest in HR for a better HR
department than competitors have?
8. What should we be doing to improve our
marketplace position?
9. What’s the best change to prepare for the
future?
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How is the HRM Function Changing?
 As part of its strategic role, HR can engage
in evidence-based HR.

 Evidence-based HR – demonstrating that
HR practices have a positive influence on
the company’s bottom line or key
stakeholders.

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The HRM Profession
 HR salaries vary according to position,

experience, education, training, location and
firm size.

 The primary professional organization for

HRM is the Society for Human Resource

Management (SHRM) (www.shrm.org)

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3 Competitive Challenges
Influencing HRM
Technology
Sustainability

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The Sustainability Challenge
 Sustainability is the ability of a company to
survive and succeed in a dynamic
competitive environment.

 Stakeholders include shareholders, the

community, customers and all other parties
that have an interest in seeing that the
company succeeds.

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The Sustainability Challenge
Sustainability includes the ability to:
 deliver a return to shareholders

 provide high-quality products, 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
 address legal and ethical issues
 effectively use new work arrangements
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Economy- Implications for HR
Structure of the economy
Development and speed of social media
Growth in professional and service occupations
 Skill demands for jobs are changing
Knowledge is becoming more valuable
 Intangible assets
 Knowledge workers
 Empowerment
Learning organization
 Social collaboration and social networking
technology

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The Sustainability Challenge

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Common Themes of Employee Engagement
 Pride and satisfaction with employer and job
 Opportunity to perform challenging work
 Recognition and positive feedback from contributions
 Personal support from manager
 Effort above and beyond the minimum
 Understanding link between one’s job and company’s mission
 Prospects for future growth with the company
 Intention to stay with the company

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Talent Management
 Talent management is the systematic planned
strategic effort by a company to use bundles of
HRM practices including acquiring and
assessing employees, learning and
development, performance management , and
compensation to attract, retain, develop, and
motivate highly skilled employees and
managers.

 Growth of contingent workers and part-time
employees
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The Balanced Scorecard
 The balanced scorecard provides a view
of the company from the perspective of
internal and external customers, employees
and shareholders.

 The balanced scorecard should be used
to:
 Link HRM activities to the company’s business
strategy.
 Evaluate the extent to which HR is helping meet
the company’s strategic objectives.

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The Balanced Scorecard
 How do customers see us?
 What must we excel at?
 Can we continuously improve and create
value?

 How do we look to shareholders?

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Customer Service and Quality

Total Quality Management (TQM) Core Values
• Methods and processes are designed to meet

internal and external customers’ needs.
• Every employee receives training in quality.
• Promote cooperation with vendors, suppliers and
customers.
• Managers measure progress with feedback based
on data.
• Quality is designed into a product or service so that
errors are prevented rather than being detected and
corrected.
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Customer Service and Quality
Malcolm Baldrige National Quality Award
ISO 9000:2000
Six Sigma Process
Lean Thinking

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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

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