Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-1 Chapter 1 Meeting Present and Emerging Strategic Human Resource Challenges

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-2  Challenges Facing HR Management  Planning and Implementing Strategic HR Policies  Selecting HR Strategies to Increase Firm Performance  HR Department and Managers: An Important Partnership Chapter Overview

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-3  Manager  Line Employee  Staff Employee  Senior Employee  Junior Employee  Exempt Employees  Nonexempt Employees Types of Employees

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-4 Key HR Challenges for Managers

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-5 Key HR Challenges: Environmental  Rapid Change  The Internet Revolution  Workforce Diversity  Globalization  Legislation  Evolving Work and Family Roles  Skill Shortages  Rise of the Service Sector  Natural Disasters

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-6  Competitive Position  Decentralization  Downsizing  Organizational Restructuring  Self-Managed Work Teams  The Growth of Small Businesses  Organizational Culture  Technology  Internal and Data Security  Outsourcing  Product Integrity Key HR Challenges: Organizational

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-7  Matching People and Organizations  Ethics and Social Responsibility  Productivity  Empowerment  Brain Drain  Job Insecurity Key HR Challenges: Individual

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-8 Strategic HR Policies: Benefits  Encouraging Proactive Behavior  Communicating Company Goals  Stimulating Critical Thinking and Ongoing Examination of Assumptions  Identifying Gaps Between Current Situation and Future Vision  Encouraging Line Managers’ Participation  Identifying HR Constraints and Opportunities  Creating Common Bonds

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-9 Strategic HR Policies: Challenges  Maintaining a Competitive Advantage  Reinforcing Overall Business Strategy  Avoiding Excessive Concentration on Day-to-Day Problems  Develop HR Strategies Suited to Unique Organizational Features  Coping with the Environment  Securing Management Commitment  Translating the Strategic Plan into Action  Combining Intended and Emergent Strategies  Accommodating Change

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-10 Strategic HR: Choices  Work Flows  Staffing  Employee Separations  Performance Appraisal  Training and Career Development  Compensation  Employee Rights  Employee and Labor Relations  International Management

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-11  To increase firm performance  HR strategies should fit with other aspects of the organization Selecting HR Strategies

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-12 Corporate Strategies  Evolutionary  Steady State HR Strategies: Fit with Organizational Strategies Porter’s Business Unit Strategies  Cost leadership  Differentiation  Focus Miles and Snow’s Business Strategies  Defender  Prospector

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-13  Degree of Uncertainty  Magnitude of Change  Complexity  Volatility HR Strategies: Fit with Environment

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-14  Production Process  Firm’s Market Posture  Firm’s Overall Managerial Philosophy  Firm’s Organizational Structure  Firm’s Organizational Culture HR Strategies: Fit with Organizational Characteristics

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-15  Distinctive Competencies  Give firm competitive edge HR Strategies: Fit with Org. Capabilities  HR Strategies should  Help firm exploit its competencies  Assist the firm to help use its HR skills

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-16 HR and Managers: A Partnership Role of HR Dept:  To support manager’s HR responsibilities HR Audit:  Conduct Periodically  Evaluates how effective firm is at using human resources  Often evaluates HR too

Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall 1-17 Summary and Conclusions  Are many challenges in HRM  Plan and Implement HR Strategic  Policies and procedures should be congruent  Select strategies that increase performance  HR department and management are an important partnership