1-1 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

ManagingManagingHuman Human

ResourcesResources Bohlander Snell

ShermanChapter 1The Challenge

of Human Resources

Management

1-2 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Chapter 1 Learning Objectives

Identify how firms gain sustainable competitive advantage through people.

Explain how globalization is influencing human resources management.

Describe the impact of information technology on managing people.

Identify the importance of change management.State HR’s role in developing intellectual capital.

1-3 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Learning Objectives, cont.

Differentiate how TQM and reengineering influence HR systems.

Discuss the impact of cost pressures on hr policies.

Discuss the primary demographic and employee concerns pertaining to HRM.

Provide examples of the roles and competencies of today’s HR managers.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-4

Criteria for Competitive Advantage through People

Combining Combining Core CompetenciesCore Competencies

Through People Through People to Create to Create

Competitive AdvantageCompetitive Advantage

VALUE

VALUE RARERARE

ORGANIZED

ORGANIZED

DIFFICULT TO IMITATE

DIFFICULT TO IMITATE

1-5 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Core Competencies

Integrated knowledge sets within an organization that

distinguish it from its competitors and deliver value to customers

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-6

Presentation Slide 1-1

Overall Framework for HRM

COMPETITIVE CHALLENGES

• globalization• technology• managing change • human capital• responsiveness• cost containment

EMPLOYEE CONCERNS

• background diversity• age distribution• gender issues• educational levels• employee rights• privacy issues• work attitudes• family concerns

HUMAN RESOURCES

• planning• recruitment• staffing• job design• training/development• appraisal• communications• compensation• benefits• labor relations

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-7

Competitive Challenges for HRM

Globalization Managing Change

Developing Human Capital

Cost Containment

Market Responsiveness

Technology

1-8 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Globalization

Trend toward opening up foreign marketsto international trade and investment

1-9 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Knowledge Workers

Workers whose responsibilities extend beyond the physical execution of work to include decision making, problem solving,

and trouble shooting

1-10 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Human Resources Information System (HRIS)

Computerized system that provides current and accurate data for purposes

of control and decision making

1-11 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Reactive Change

Change that occurs after external forces have already affected performance

1-12 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Proactive Change

Change initiated to take advantage of targeted opportunities

1-13 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Human Capital

The knowledge, skills, and abilities of individuals that have economic value

to an organization

1-14 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

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

1-15 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Reengineering

Fundamental rethinking and radical redesign of business processes to achievedramatic improvements in cost, quality,

service, and speed

1-16 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Downsizing

The planned elimination of jobs

1-17 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Outsourcing

Contracting outside the organization to have work done that formerly was done by internal employees

1-18 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Employee Leasing

Employees who are hired away by a vendor firm but continue to work in their original jobs

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-19

Top HR Issues for Increasing Employee Productivity

Training

Controlling Benefits Costs

Employee Recruitment and

Selection

Performance Evaluation

Employee Communications

Incentive Pay

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-20

Environment• empowerment• teams• leader support• culture

Perf=f(A,M,E)

Presentation Slide 1-2

Productivity Enhancements

Ability• recruitment• selection• training• development

Motivation• job enrichment• promotions• coaching• feedback• rewards

1-21 Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

Managing Diversity

Being aware of characteristics common to employees, while also managing

employees as individuals

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-22

Social Concerns in HRM

Changing Demographics

Attitudes toward Work and Family

Employer/Employee Rights

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-23

Value of Higher Education

010,00020,00030,00040,00050,00060,00070,00080,000

No

dipl

oma

Dip

lom

a

Ass

ocia

te

Bac

helo

r

Mas

ters

Doc

tora

te

Prof

essi

onal

Ann

ual E

arni

ngs

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-24

Presentation Slide 1-3

Diversity Rational PollThe primary business reasons for diversity

management include… Better utilization of talent Increased marketplace understanding Breadth of understanding in leadership positions Enhanced creativity Increased quality of team problem-solvingSource: Survey data from Gail Robinson and Kathleen Dechant, “Building a business case for diversity,” The

Academy of Management Executive, 11 no3 (Aug 1997): 21-31

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-25

Responsibilities of the HR Manager

Advice and Counsel

Service

Employee Advocacy

Policy Formulation and

Implementation

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-26

Presentation Slide 1-4

Framework for HRM

Competencies

HR FunctionalExpertise

ManagingChange

Knowledge of Business

Personal Credibility