Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1 Human Resources in a Globally Competitive Business Environment

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 21 st -Century Corporations  Global  The timeline for the globalization of companies:  Early days: a company that sold goods overseas  Middle period: a company that manufactured and sold goods in other countries  21st Century: a company that is able to call on talent and resources around the globe, just as it sells its goods and services around the globe  Speed  Speed in the 21st century company is a business strategy built on a virtual network of suppliers, manufacturers, and delivery firms

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. People-Driven Enterprises  The successful 21 st -century company is one that realizes that it is the people that make up the business  Some key challenges for managers of 21 st -century enterprises:  Understanding the challenges the enterprise faces  Seizing opportunities  Managing frustration

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing People  Responsibilities of all managers:  Staffing  Retention  Development  Adjustment  Managing Change

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Key Features of the Competitive Business Environment  Globalization  Technology  E-Commerce  Changing demographics  Increasing cultural diversity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. New Competitive Realities  Emergence of smaller companies with fewer employees  Decline of management hierarchies, with an increase of networks of specialists  Increase of technicians to keep networks operating  Decline of the importance of seniority in compensation  Overall worth based on performance plus the market value of a given position

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Competitive Strategies  Competitive strategies of the 21st century company  Innovation  Quality Enhancement  Cost-Reduction  Speed

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. HRM Requirements of Competitive Strategies  Innovation Strategy Requires  Highly Skilled Employees  More Employee Discretion  Greater Investment and Risk  Quality-Enhancement Strategy Requires  Repetitive and predictable behaviors  Long-term focus  Modest amount of cooperative, interdependent behavior  High emphasis on quality, modest concern for quantity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. HRM Requirements of Competitive Strategies  Cost-Reduction Strategy Requires  Tight fiscal and management controls  Minimization of overhead  Pursuit of strict economies of scale  Speed Requires  Highly skilled employees who are time-focused  Managers and employees must support change  Company culture must support the fast-pace

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Importance of Productivity  Companies must give employees a higher stake in their success  Companies must convince employees that rewards are derived from productivity  Companies must recognize that no productivity problems have a “quick fix”  Companies must embrace the philosophy of constant learning and improvement

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Emergence of QWL  Quality of Work Life is Driven By:  Employee understanding of company practices, democratic supervision, and employee involvement  Employees’ perceptions of their overall satisfaction and safety

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Business Trends and Human Resource Competencies  Human Resource Managers must play four key roles that are consistent with current business trends:  Strategic Partners  Innovators  Collaborators  Change Facilitators