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 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
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
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

1-5


HR as a Business with 3 Product
Lines
Business
Partner
Services
Strategic Partner

Human
Resources

1-6


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?
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?

1-10


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?

1-11


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.

1-12


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)

1-13


3 Competitive Challenges
Influencing HRM
Technology
Sustainability

1-14


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.

1-15


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
1-16


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

1-17


The Sustainability Challenge

1-18


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

1-19

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 parttime employees
1-20


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.
1-21

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?

1-22


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.

1-23


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