PowerPoint Presentation by Charlie Cook The University of West Alabama Managing Human Resources Bohlander Snell 14 th edition Copyright © 2007 Thomson/South-Western. All rights reserved. The Challenge of Human Resources Management 3

Copyright © 2007 Thomson South-Western. All rights reserved.1–2 Why Study Human Resources Management Human Resources Management (HRM)  The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives. “Why Study HRM?”  Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department. 4

Copyright © 2007 Thomson South-Western. All rights reserved.1–3 Competitive Advantage through People Core Competencies  Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Sustained competitive advantage through people is achieved if these human resources:  Have value.  Are rare and unavailable to competitors.  Are difficult to imitate.  Are organized for synergy. 4

Copyright © 2007 Thomson South-Western. All rights reserved.1–4 Competitive Challenges and Human Resources Management The most pressing competitive issues facing firms: 1.Going global 2.Embracing new technology 3.Managing change 4.Managing talent, or human capital 5.Responding to the market 6.Containing costs

Copyright © 2007 Thomson South-Western. All rights reserved.1–5 Challenge 1: Going Global Globalization  The trend toward opening up foreign markets to international trade and investment Impact of globalization  “Anything, anywhere, anytime” markets  Partnerships with foreign firms  Lower trade and tariff barriers  NAFTA, EU, APEC trade agreements  WTO and GATT 5

Copyright © 2007 Thomson South-Western. All rights reserved.1–6 Competitive Advantage through People Core Competencies  Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Sustained competitive advantage through people is achieved if these human resources:  Have value.  Are rare and unavailable to competitors.  Are difficult to imitate.  Are organized for synergy. 4

Copyright © 2007 Thomson South-Western. All rights reserved.1–7 Challenge 1: Going Global (cont’d) Corporate Social Responsibility  The responsibility of the firm to act in the best interests of the people and communities affected by its activities Impact on HRM  Different geographies, cultures, laws, and business practices  Issues:  Identifying capable managers and workers  Developing foreign culture and work practice training programs.  Adjusting compensation plans for overseas work

Copyright © 2007 Thomson South-Western. All rights reserved.1–8 Challenge 2: Embracing New Technology Knowledge Workers  Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving. Knowledge-Based Training  Online instruction  “Just-in-time” learning via the Internet on company intranets 8

Copyright © 2007 Thomson South-Western. All rights reserved.1–9 Influence of Technology in HRM Human Resources Information System (HRIS)  A computerized system that provides current and accurate data for the purposes of control and decision making.  Benefits:  Store and retrieve of large quantities of data.  Combine and reconfigure data to create new information.  Institutionalization of organizational knowledge.  Easier communications.  Lower administrative costs, increased productivity and response times.

Copyright © 2007 Thomson South-Western. All rights reserved.1–10 Challenge 3: Managing Change Types of Change  Reactive change  Change that occurs after external forces have already affected performance  Proactive change  Change initiated to take advantage of targeted opportunities 13

Copyright © 2007 Thomson South-Western. All rights reserved.1–11 Challenge 3: Managing Change (cont’d) Why Change Efforts Fail: 1.Not establishing a sense of urgency. 2.Not creating a powerful coalition to guide the effort. 3.Lacking leaders who have a vision. 4.Lacking leaders who communicate the vision. 5.Not removing obstacles to the new vision. 6.Not systematically planning for and creating short- term “wins.” 7.Declaring victory too soon. 8.Not anchoring changes in the corporate culture.

Copyright © 2007 Thomson South-Western. All rights reserved.1–12 Challenge 4: Managing Talent, or Human Capital Human Capital  The knowledge, skills, and capabilities of individuals that have economic value to an organization.  Valuable because capital:  is based on company-specific skills.  is gained through long-term experience.  can be expanded through development. 14

Copyright © 2007 Thomson South-Western. All rights reserved.1–13 Challenge 5: Responding to the Market 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. 16

Copyright © 2007 Thomson South-Western. All rights reserved.1–14 Challenge 5: Responding to the Market (cont’d) Reengineering and HRM  Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.  Requires that managers create an environment for change.  Depends on effective leadership and communication processes.  Requires that administrative systems be reviewed and modified.

Copyright © 2007 Thomson South-Western. All rights reserved.1–15 Challenge 6: Containing Costs Downsizing  The planned elimination of jobs (“head count”).  Layoffs Outsourcing  Contracting outside the organization to have work done that formerly was done by internal employees. Offshoring  The business practice of sending jobs to other countries. 18

Copyright © 2007 Thomson South-Western. All rights reserved.1–16 Challenge 6: Containing Costs (cont’d) Employee Leasing  The process of dismissing employees who are then hired by a leasing company (which handles all HR- related activities) and contracting with that company to lease back the employees.

Copyright © 2007 Thomson South-Western. All rights reserved.1–17 Cultural Changes Employee Rights Concern for Privacy Attitudes towards Work Balancing Work and Family

Copyright © 2007 Thomson South-Western. All rights reserved.1–18 Qualities of Human Resources Managers Responsibilities 1.Advice and counsel 2.Service 3.Policy formulation and implementation 4.Employee advocacy Competencies 1.Business mastery 2.HR mastery 3.Change mastery 4.Personal credibility 35

Copyright © 2007 Thomson South-Western. All rights reserved.1–19 Figure 1–9 Human Resource Competency Model Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, “Lower Cost, Higher Value: Human Resource Function in Transformation.” Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) , Fax: (212)