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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.

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Responsibilities of HR Departments

1. Employment and Recruiting2. Training and Development

3. Compensation

4. Benefits5. 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

BusinessPartnerServices

Strategic Partner

HumanResources

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6 HR Competencies

Credible

ActivistCultural

Steward

Business

Ally

Strategic

Architect

OperationalExecutor

Talent Manager/

Organizational

Designer

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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-HRmanagers to develop and implement HR practices.

This shift presents two challenges:

Self-service

Outsourcing

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3 Competitive ChallengesInfluencing HRM

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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

EmpowermentLearning organization

Social collaboration and social networkingtechnology

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The Sustainability Challenge

AlternativeWork

Arrangements

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Common Themes 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 ones job and companys 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 plannedstrategic effort by a company to use bundles of

HRM practices acquiring and assessing

employees, learning and development,

performance management and compensation toattract, retain, develop and motivate highly

skilled employees and managers.

Growth- contingent workers and part-time employees

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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 andcustomers.

Managers measure progress with feedback based ondata.

Quality is designed into a product or service so thaterrors are prevented rather than being detected andcorrected.

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Changing DemographicsWorkforce 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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Legal and Ethical Issues

5 legal areas that influenced HRM :1. Equal employment opportunity legislation2. Employee safety and health3. Employee pay and benefits4. Employee privacy5. Job security

Women and minorities still face the glass ceiling

Sarbanes-Oxley Act of 2002

Federal health care legislation

Companies who employ unlawful immigrants or abuselaborers

Data-security practices and protecting intellectual property

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Global and Technology Challenges

To survive companies must deal with theglobal economy, compete in and developglobal markets and prepare employees for

global assignments.Offshoring exporting jobs from developed

countries to less developed countries

Onshoring

exporting jobs to rural parts ofthe United States

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Summary

HR has three product lines: administrative services, business partnerservices, 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.

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