1. Chapter 1 Human Resource Management and Competitive Advantage

2. 1-1 Human Resource Management
Human resource management: Consists of practices that help the organization deal effectively with its people during the various phases of the employment cycle.
Three phases of the employment cycle:
Pre-selection – Planning practices.
Selection – Recruiting applicants and selecting the most qualified.
Post-selection – Practices designed to maximize the performance and satisfaction levels of employees.

3. 1-1d HRM Practices Influenced by External Factors
Legal and environmental issues:
Federal, state, and local laws are designed to guarantee employees’ rights to fair and safe treatment.
Social, economic, and technological events also strongly influence HRM practices.
Workplace justice laws: Addresses the issue of employee rights.
Union influences: Regulate many HRM practices such as discipline, promotion, grievance procedures, and overtime allocations.

4. 1-1d HRM Practices Influenced by External Factors (cont.)
Safety and health concerns: Institution of accident prevention programs, wellness programs, and employee assistance programs to ensure the health and mental well-being of employees.
International influences: Development of globally oriented managers who understand foreign languages and cultures, as well as the dynamics of foreign marketplaces.

5. 1-2 Who Is Responsible for Developing and Implementing HRM Practices?
Human resource professionals
Establish HRM procedures and methods.
Monitor and evaluate HR practices.
Advise and assist managers on HRM-related matters.
Line managers
Direct employees’ day-to-day tasks.
Implement HRM practices.
Provide HR professionals with needed inputs for developing effective practices.

6. 1-3 Gaining a Competitive Advantage & 1-3a Competitive Advantage Defined
Firms gain competitive advantage by effectively managing their human resources.
Competitive advantage is a status achieved by a company when gaining a superior marketplace position relative to its competition.
This is accomplished through cost leadership and product differentiation.

7. 1-4a Evidence Linking HRM Practices to Competitive Advantage
Jeffrey Pfeffer identified 16 HRM practices:
Employment security
Selectivity in recruiting
High wages
Incentive pay
Employee ownership
Information sharing
Participation and empowerment
Teams and job redesign

8. 1-4a Evidence Linking HRM Practices to Competitive Advantage (cont.)
Jeffrey Pfeffer identified 16 HRM practices (cont.):
Training and skill development
Cross-utilization and cross-training
Symbolic egalitarianism
Wage compression
Promotion from within
Long-term perspective
Measurement of practices
Overarching philosophy

9. Figure 1-4 A Model Linking HRM Practices to Competitive Advantage