Mhr chapter 1

PowerPoint Presentation by Charlie CookThe University of West Alabama

PowerPoint Presentation by Charlie CookThe University of West Alabama

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© 2010 South-Western, a part of Cengage LearningAll rights reserved.© 2010 South-Western, a part of Cengage LearningAll rights reserved.

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–4

Why Study Human Resources ManagementWhy Study Human Resources Management

•Human Resources Management (HRM) Human Resources Management (HRM) Defined:Defined: The process of managing human resources The process of managing human resources (human capital and intellectual assets) (human capital and intellectual assets) to achieve an organization’s objectives.to achieve an organization’s objectives.

•““Why Study HRM?”Why Study HRM?” Staffing the organization, designing jobs Staffing the organization, designing jobs and teams, developing skillful employees, and teams, developing skillful employees, identifying approaches for improving identifying approaches for improving their performance, and rewarding employee their performance, and rewarding employee successes—all typically labeled HRM successes—all typically labeled HRM issues—are as relevant to line managers issues—are as relevant to line managers as they are to managers in the HR as they are to managers in the HR department.department.


FIGURE

1.1Overall Framework for Human Resources Management


Competitive Challenges and Competitive Challenges and Human Resources ManagementHuman Resources Management

•The most pressing competitive issues The most pressing competitive issues facing firms:facing firms: Competing, recruiting, and staffing Competing, recruiting, and staffing globallyglobally

Embracing new technologyEmbracing new technology Managing changeManaging change Managing talent, or human capital Managing talent, or human capital Responding to the market (changes in Responding to the market (changes in consumer behavior)consumer behavior)

Containing costsContaining costs


Challenge 1: Competing, Recruiting, and Challenge 1: Competing, Recruiting, and Staffing GloballyStaffing Globally

•GlobalizationGlobalization The trend toward opening up foreign The trend toward opening up foreign markets to international trade and markets to international trade and investmentinvestment

•Impact of GlobalizationImpact of Globalization ““Anything, anytime, anywhere” marketsAnything, anytime, anywhere” markets Partnerships with foreign firmsPartnerships with foreign firms Lower trade and tariff barriersLower trade and tariff barriers

NAFTA, EU, and other trade agreementsNAFTA, EU, and other trade agreements WTO WTO


Challenge 1…(cont’d)Challenge 1…(cont’d)

•Corporate Social Responsibility (CSR)Corporate Social Responsibility (CSR) The responsibility of the firm to act in The responsibility of the firm to act in the best interests of the people and the best interests of the people and communities affected by its activitiescommunities affected by its activities

•Globalization’s Impact on HRMGlobalization’s Impact on HRM Different geographies, cultures, laws, Different geographies, cultures, laws, and business practicesand business practices

Issues:Issues: Identifying capable managers and workersIdentifying capable managers and workers Developing foreign culture and work practice Developing foreign culture and work practice training programs.training programs.

Adjusting compensation plans for overseas workAdjusting compensation plans for overseas work


Challenge 2: Embracing New TechnologyChallenge 2: Embracing New Technology

•Knowledge WorkersKnowledge Workers Workers whose responsibilities extend Workers whose responsibilities extend beyond the physical execution of work beyond the physical execution of work to include planning, decision making, to include planning, decision making, and problem solving.and problem solving.

•Knowledge-Based TrainingKnowledge-Based Training Online instructionOnline instruction ““Just-in-time” learning via the Just-in-time” learning via the Internet Internet on company intranetson company intranets

Virtual learningVirtual learning


Influence of Technology in HRMInfluence of Technology in HRM

•Human Resources Information System Human Resources Information System (HRIS)(HRIS) A computerized system that provides current A computerized system that provides current and accurate data for the purposes of and accurate data for the purposes of control and decision making.control and decision making.

Benefits:Benefits: Automation of routine tasks, lower administrative Automation of routine tasks, lower administrative costs, increased productivity and response times.costs, increased productivity and response times.

Self-service access to information and training Self-service access to information and training for managers and employeesfor managers and employees

Online recruiting, screening, and pretesting of Online recruiting, screening, and pretesting of applicantsapplicants

Training, tracking, and selecting employees based Training, tracking, and selecting employees based on their record of skills and abilitieson their record of skills and abilities

Organization-wide alignment of “cascading” goalsOrganization-wide alignment of “cascading” goals


HRM IT Investment FactorsHRM IT Investment Factors

• Fit of the Fit of the application to the application to the firm’s employee firm’s employee base.base.

• Ability to upgrade Ability to upgrade Increased Increased efficiency and time efficiency and time savings savings

• Compatibility with Compatibility with current systemscurrent systems

• Availability of Availability of technical supporttechnical support

• Time required to Time required to implement and train implement and train staff members to staff members to use HRISuse HRIS

• Initial and annual Initial and annual maintenance costsmaintenance costs

• Training time Training time required for HR and required for HR and payrollpayroll

• Fit with the Fit with the organization’s organization’s overall cultureoverall culture


Challenge 3: Managing ChangeChallenge 3: Managing Change

•Types of ChangeTypes of Change Reactive changeReactive change

Change that occurs after external forces Change that occurs after external forces have already affected performancehave already affected performance

Proactive changeProactive change Change initiated to take advantage of Change initiated to take advantage of targeted opportunitiestargeted opportunities

•Managing Change through HRManaging Change through HR Formal change management programs help Formal change management programs help to keep employees focused on the to keep employees focused on the success of the business.success of the business.


Challenge 3: Managing Change (cont’d)Challenge 3: Managing Change (cont’d)

•Why Change Efforts Fail:Why Change Efforts Fail: Not establishing a sense of urgency.Not establishing a sense of urgency. Not creating a powerful coalition to guide Not creating a powerful coalition to guide the effort.the effort.

Lacking leaders who have a vision.Lacking leaders who have a vision. Lacking leaders who communicate the vision.Lacking leaders who communicate the vision. Not removing obstacles to the new vision.Not removing obstacles to the new vision. Not systematically planning for and Not systematically planning for and creating short-term “wins.”creating short-term “wins.”

Declaring victory too soon.Declaring victory too soon. Not anchoring changes in the corporate Not anchoring changes in the corporate culture.culture.


Challenge 4: Managing Talent, or Human CapitalChallenge 4: Managing Talent, or Human Capital

•Human CapitalHuman Capital The knowledge, skills, and capabilities The knowledge, skills, and capabilities of individuals that have economic value of individuals that have economic value to an organization.to an organization.

Valuable because human capital:Valuable because human capital: is based on company-specific skills.is based on company-specific skills. is gained through long-term experience.is gained through long-term experience. can be expanded through development.can be expanded through development.

(Oh, by-the-way, it walks out the door (Oh, by-the-way, it walks out the door every night)every night)


Challenge 5: Responding to the MarketChallenge 5: Responding to the Market

•Changes in Consumer BehaviorChanges in Consumer Behavior Values, attitudes, beliefs, desires, Values, attitudes, beliefs, desires, needs/wants, etc.needs/wants, etc.

•Reengineering and HRMReengineering and HRM Fundamental rethinking and radical Fundamental rethinking and radical redesign of business processes to achieve redesign of business processes to achieve dramatic improvements in cost, quality, dramatic improvements in cost, quality, service, and speed.service, and speed. Requires that managers create an environment Requires that managers create an environment for change.for change.

Depends on effective leadership and Depends on effective leadership and communication processes.communication processes.

Requires that administrative systems be Requires that administrative systems be reviewed and modified.reviewed and modified.


Challenge 6: Containing CostsChallenge 6: Containing Costs

•DownsizingDownsizing The planned elimination of jobs (“head The planned elimination of jobs (“head count”).count”).

Layoffs (Reduction in Force)Layoffs (Reduction in Force)

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

•Offshoring (Global Sourcing)Offshoring (Global Sourcing) The business practice of sending jobs The business practice of sending jobs to other countries.to other countries.


Challenge 6: Containing Costs (cont’d)Challenge 6: Containing Costs (cont’d)

•Hidden Costs of a LayoffHidden Costs of a Layoff Severance and rehiring costsSeverance and rehiring costs

Accrued vacation and sick day payoutsAccrued vacation and sick day payouts

Pension and benefit payoffsPension and benefit payoffs

Potential lawsuits from aggrieved workersPotential lawsuits from aggrieved workers

Loss of institutional memory and trust in Loss of institutional memory and trust in managementmanagement

Lack of staffers when the economy Lack of staffers when the economy reboundsrebounds

Survivors who are risk-averse, paranoid, Survivors who are risk-averse, paranoid, and politicaland political


Challenge 6: Containing Costs (cont’d)Challenge 6: Containing Costs (cont’d)

•Benefits of a No-Layoff PolicyBenefits of a No-Layoff Policy A fiercely loyal, more productive A fiercely loyal, more productive workforceworkforce

Higher customer satisfactionHigher customer satisfaction

Readiness to snap back with the economyReadiness to snap back with the economy

A recruiting edgeA recruiting edge

Workers who aren’t afraid to innovate, Workers who aren’t afraid to innovate, knowing their jobs are safe.knowing their jobs are safe.

Is complacency an issue?Is complacency an issue?


FIGURE

1.3Productivity Enhancements

Ability x Motivation = Potential Performance


FIGURE

1.6Education Pays


Qualities of HR ManagersQualities of HR Managers

•ResponsibilitiesResponsibilities1.1. Advice and counselAdvice and counsel

2.2. ServiceService

3.3. Policy formulation Policy formulation and implementationand implementation

4.4. Employee advocacyEmployee advocacy

•CompetenciesCompetencies1.1. Business masteryBusiness mastery

2.2. HR masteryHR mastery

3.3. Change masteryChange mastery

4.4. Personal Personal credibilitycredibility

5.5. What’s missing?What’s missing?

Mhr chapter 1

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Transcript of Mhr chapter 1