1-1 Human Resource Management: Gaining a Competitive Advantage HRM

1-2 Learning Objectives By end of this session, you should be able to: Discuss the roles and activities of a company’s human resource management function Discuss how human resource management affects a company’s balanced scorecard Discuss what companies should do to compete in the global marketplace Identify the characteristics of the workforce and how they influence human resource management Discuss human resource management practices that support high-performance work systems Provide a brief description of human resource management practices

1-3 Introduction Competitiveness – a company’s ability to maintain and gain market share Human resource management – the policies, practices, and systems that influence employees’ behavior, attitudes, and performance

1-4 Responsibilities of HR Departments Employment and recruiting Training and development Compensation Benefits Employee services Employee and community relations Personnel records Health and safety Strategic planning

1-5 What Roles Do HR Departments Perform? Administrative Services and Transactions Business Partner Services Strategic Partner Human Resources

1-6 What Competencies Do HR Professionals Need?

1-7 How is the HRM Function Changing? Time spent on administrative tasks is decreasing and its roles as a strategic business partner, change agent, and employee advocate are increasing This shift presents two important challenges: –Self-service – giving employees online access to information about HR issues –Outsourcing – the practice of having another company provide services

1-8 Competitive Challenges Influencing HRM Three competitive challenges that companies now face will increase the importance of HRM practices: The Global Challenge The Challenge of Sustainability The Technology Challenge

1-9 The Sustainability Challenge Sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment Stakeholders refers to shareholders, the community, customers, and all other parties that have an interest in seeing that the company succeeds

1-10 The Sustainability Challenge Sustainability includes the ability to: –provide a return to shareholders –provide high-quality products, services, and work experiences for employees –increase value placed on intangible assets and human capital –Adapting to changing characteristics and expectations of the labor force –Effectively use new work arrangements

1-11 The Sustainability Challenge The changing structure of the economy Skill demands for jobs are changing Knowledge is becoming more valuable –Intangible assets -- human capital, customer capital, social capital, and intellectual capital –Knowledge workers – employees who contribute to the company through a specialized body of knowledge –Empowerment – giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service Learning organization

1-12 Managing a Diverse Workforce To successfully manage a diverse workforce, managers must develop a new set of skills, including: –Communicating effectively with employees from a wide variety of cultural backgrounds –Coaching and developing employees of different ages, educational backgrounds, ethnicity, physical ability, and race –Creating a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative

1-13 The Global Challenge To survive companies must compete in international markets Be prepared to deal with the global economy. Offshoring – exporting of jobs from developed countries to less developed countries Onshoring – exporting jobs to remote (rural) parts of the country

1-14 The Technology Challenge –The overall impact of the Internet –The Internet has created a new business model – e- commerce – in which business transactions and relationships can be conducted electronically

1-15 The Technology Challenge Advances in technology have: –changed how and where we work –resulted in high-performance work systems –increased the use of teams to improve customer service and product quality –changed skill requirements –increased working partnerships –led to changes in company structure and reporting relationships

1-16 The Technology Challenge Advances in technology have: –increased the use and availability of Human Resource Information Systems (HRIS) –increased the use and availability of e-HRM –increased the competitiveness in high performance work systems

1-17 Meeting Competitive Challenges Through HRM Practices HRM practices that help companies deal with the four competitive challenges can be grouped into four dimensions –The human resource environment –Acquiring and preparing human resources –Assessment and development of human resources –Compensating human resources

1-18 Meeting Competitive Challenges Through HRM Practices Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness Customer needs for new products or services influence the number and type of employees businesses need to be successful

1-19 Meeting Competitive Challenges Through HRM Practices Managers need to ensure that employees have the necessary skills to perform current and future jobs. Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality, and customer service