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2000 by South-Western College Publishing

Human Resource Management, 2/E, Lawrence S. Kleiman

1-1

Chapter 1

Human Resource Management

and Competitive Advantage

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1-2

Personnel Management

In the 60s: Personnel Management mainlyconcerned with people as hired hands

FirstJob Analysis / Job Evaluation

SecondStaffing requirements ThenRecruitment, Section & Placement After Hiring

Training (OJT)

Performance Appraisal TNA Promotion / Demotion Discipline Termination

Background

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1-3

Resources of an Organization

Land Capital

Equipment Labor

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1-4

The Employment Cycle

Pre-SelectionPhase

SelectionPhase

Post-SelectionPhase

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1-5

Pre-Selection Phase

Human Resource Planning

Job Analysis

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1-6

Human Resource Planning

Strategic

PlanNumber of Employees

Types of Employees

DemandForecasting

Supply

Forecasting

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Job Analysis

Gathering job information

Analyzing job information

Documenting job information

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1-8

Job Analysis

Uses of Job

Analysis

Job Qualifications

Selection Techniques

Training ProgramsPerformance Appraisal

Pay Rates

Productivity Improvement

Programs

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Recruitment Goals

Suitable pool of applicants

Timely

Cost efficient Legal

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Selection Goals

Accurate hiring

Cost efficient

Legal

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Human Resource Management, 2/E, Lawrence S. Kleiman1-12

Post-Selection Phase

Training and development

Performance appraisal

Compensation

Productivity improvement programs

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Training and Development

Training current jobs

Development future jobs

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Training and Development Goals

Improve organizationalperformance

Enhance knowledge and skilllevels of employees

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Performance Appraisal

Job performance measurement

Communication

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Performance Appraisal Goals

Continue appropriatebehaviors.

Correct inappropriatebehaviors.

Make HRM-relateddecisions.

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Compensation

Pay

Wages

Salaries

Benefits

Health insurance

Employee discounts

Other

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Compensation Goals

Establish competent andloyal workforce.

Maintain competent andloyal workforce.

Control costs.

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Productivity Improvement Programs

Tie job behaviors to rewards

Rewards financial

non-financial

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Productivity Improvement Program

Goals

Motivate employees.

Improve productivity.

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External Influences on HRM

Legal & EnvironmentalWorkplace Justice

Unions

Safety & Health

HRM

International

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2000 by South-Western College PublishingHuman Resource Management, 2/E, Lawrence S. Kleiman

1-22

Social, Economic, and Technological

Influences on HRM Practices

Cultural diversity

Work and family

Part-time/temporaryemployees

Quality Teamwork

Mergers andtakeovers

Downsizing andlayoffs

Technology

Continuous qualityimprovement

Illiteracy

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Who is Responsible for HRM?

HRProfessionals

LineManagers

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HR Professionals Responsibilities

Establish HRM procedures

Develop/choose HRM methods

Monitor/evaluate HRM practices

Advise/assist managers on HRM-

related activities

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Line Managers Responsibilities

Implement HRM practices

Provide input for HRM practices

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HRM Conducted by Line Managers

Interview jobapplicants

Provide orientation,

coaching, & OJT Evaluate job

performance

Recommend payincreases

Disciplineemployees

Investigate

accidents Settle grievance

issues

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Competitive Advantage

Superior marketplace position relativeto competition

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Cost Leadership

Provide same services or products ascompetitors but at a lower cost.

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Cost Leadership

# of units produced

total cost of production

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Five Strategies to Improve Productivity

Increase output faster than inputs.

Increase output while holding inputstable.

Decrease inputs faster than output.

Maintain output with reduced inputs.

Increase output with reduced inputs.

Source: Personnel/Human Resource Management: A Diagnostic Approach(4th ed.) by G. T. Milkovich & W. F. Glueck (1985): BPI.

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Four Ways to Achieve Product

Differentiation

Create a better quality product/service.

Provide innovative products/services.

Choose a superior location.

Promote uniqueness of product/service.

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HRM Practices and Competitive

Advantage

Direct path

(x------>z)

immediate impact on competitive

advantage

Indirect path

(x------>y------>z)

causes certain outcomes which createcompetitive advantage

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Indirect Impact of HRM on Competitive

Advantage

HRMPractices

Employee-Centered

Outcomes

Organization-CenteredOutcomes

CompetitiveAdvantage

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Employee-Centered Outcomes

Competence knowledge, skills, and

abilities

Motivation willingness to exert effort

Work-related attitudes

job satisfaction organizational commitment

organizational citizenship

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Job Satisfaction

Favorableness of employee attitudestoward their job

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Organizational Commitment

Relative strength of an individuals

identification with and involvement in aparticular organization

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Organizational Citizenship

Willingness of employees to engage inbehaviors that help the organizationachieve its goals

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HRM Practices that Affect Employee

Motivation

Employee

Motivation

Selection

ProductivityImprovement

Programs

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Why HRM is a Sustainable Competitive

Advantage

less visible --- more difficult to imitate

harder to imitate an HRMsystemthan

a single practice

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HR Planning

Job Analysis

Recruitment

Selection

Workplace Justice

Unions

Safety & Health

International

Competence

Motivation

Work Attitudes

Output

Retention

Legal Compliance

Company Image

Cost

Leadership

Product

Differentiation

Training/Develop.

Performance App.

Compensation

Productivity Imp.

HRM and Competitive Advantage

Ch01 New Copy

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