1. Chapter 1 The Rewards and Challenges of Human Resources Management

2. Learning Outcomes
Explain how human resources managers and other managers can have rewarding careers by helping their firms gain a sustainable competitive advantage through the strategic utilization of people
Explain how good human resources practices can help a firm’s globalization, corporate-social responsibility, and sustainability efforts
Describe how technology can improve how people perform and are managed

3. Learning Outcomes
Explain the dual goals HR managers have in terms increasing productivity and controlling costs
Discuss how firms can leverage employee differences to their strategic advantage and how educational and cultural changes in the workforce are affecting how human resources manager engage employees
Provide examples of the roles and competencies of today’s HR managers and their relationship with other managers

4. Human Resources Management
Process of managing human talent to achieve an organization’s objectives
Importance
Managers play a key role in selecting, training, motivating, appraising and promoting employees
Good personnel help build business
Helps understand one’s rights and responsibilities as an employee

5. Human Capital and HRM
Human capital: Knowledge, skills, and capabilities of individuals that have economic value to an organization
Intangible and cannot be managed the way organizations manage jobs, products, and technologies
Organizations should utilize employee knowledge and invest in their development

6. Figure 1.1 - Overall Framework of Human Resource Management

7. Responding Strategically to Changes in the Marketplace
Making adjustments in labor force
Downsizing: Planned elimination of jobs
Outsourcing: Hiring outside the company to perform processes previously done within the firm
Offshoring: Sending jobs to other countries
Implementing cost-cutting strategies
Enhancing benefit programs
Improving quality
Expanding market shares and product lines

8. Responding Strategically to Changes in the Marketplace
People resist change as it involves modifying or abandoning familiar ways of working
To manage change, executives and managers have to:
Envision the future
Communicate vision to the employees
Set clear expectations for performance
Develop capabilities to execute by reorganizing people and reallocating assets
Make an investment in implementing and sustaining the change

9. Responding Strategically to Changes in the Marketplace
Organization that successfully engineers change:
Links it to the business strategy
Shows how it creates quantifiable benefits
Engages key employees, customers, and suppliers early
Makes an investment to implement and sustain it
Strategic changes could be proactive or reactive
To provide knowledge on core business issues, companies:
Assign HR representatives to core business teams
Rotate non-HR managers into HR positions and vice versa

10. Competing, Recruiting, and Staffing Globally
Integration of world economies and markets have led companies to:
Look for opportunities abroad
Fend off foreign competitiors domestically
Search for the right employees
Companies are making it possible for people to buy anything, anytime, anywhere
Companies of all sizes are engaging in partnerships, mergers, and acquisitions

11. Competing, Recruiting, and Staffing Globally
National identities of products are blurring
Lower trade barriers with free-trade agreements
General Agreements on Tariffs and Trade (GATT) paved the way for North American Free Trade Agreement (NAFTA) and European Union
GATT was replaced by the World Trade Organization (WTO)

12. Competing, Recruiting, and Staffing Globally
Issues in HRM due to globalization
Dealing with better informed employees who are willing to pursue global job opportunities
Gauging the knowledge and skill base of workers worldwide
Understanding how to hire and train them
Relocating and training foreign managers abroad to direct the efforts of an international workforce

13. Setting and Achieving Corporate Social Responsibility and Sustainability Goals
Corporate social responsibility: Responsibility of the firm to act in the best interests of the people and communities affected by its activities
Improves company’s earnings and helps avoid lawsuits
Sustainability: Ability to produce a good or service without damaging the environment or depleting a resource
Companies are making strides to reduce their carbon footprints
HR should spearhead the development and implementation of corporate citizenship

14. Technology Challenges
Organizations are taking advantage of information technology advancements
Collaborative software: Allows workers to interface and share information with one another electronically
Shift from touch labor to knowledge workers
Knowledge workers: Workers whose responsibilities extend beyond the physical execution of work to include planning, decision-making, and problem-solving
Companies spend on training and virtual learning

15. Technology Challenges
Human resources information system (HRIS)
Provides current and accurate data for purposes of control and decision-making
Used to:
Automate payroll processing and administer benefits program
Access employee records
Recruit, screen, and pretest applicants online
Train, track, and select employees
Open source HRIS software can be good low cost solution for startups and small businesses

16. Productivity and Cost Challenges - Maximizing Productivity
Productivity - Output gained from a fixed amount of inputs
Can be increased by:
Reducing inputs
Adding more human and physical capital to the process
Additional productivity will have to come from:
Enhanced ability of employees
Motivation
Work environment

17. Productivity and Cost Challenges - Managing the Size of the Workforce
Should match the firm’s demand requirements, strategic decision, and competition
Offshoring - Aids quicker delivery of products
Outsourcing - Helps reduce costs and focus on important activities
Nearshoring: Bringing jobs closer to domestic countries

18. Productivity and Cost Challenges - Managing the Size of the Workforce
Homeshoring: Outsourcing work to domestic workers who work out of their homes
Furloughing: Practice of requiring employees to take time off for either no pay or reduced pay
Hiring part-time employees

19. Productivity and Cost Challenges - Managing Pay and Benefits
Concerns - High health care costs and compliance with new health reforms
Companies are charging higher premiums to cover spouses
Provide employees a set amount to purchase health insurance on their own
Employee leasing: Dismissing employees who are then hired by a leasing company and contracting with that company to lease back the employees
Provides benefits that small companies cannot afford

20. Responding to the Demographic and Diversity Challenges of the Workforce
HR managers analyze the capabilities of demographic groups and how well each is represented in fast-growing and slow-growing occupations
Forecast trends to support organizational strategies
Labor force participation rate - Number people employed or actively looking for work
Ethnic and racial differences
Age and gender distribution

21. Figure Labor Force Participation Rates of Workers of Hispanic origin versus Non-Hispanic Origin

22. Figure 1.3 - Labor Force Participation Rates of Workers in the Labor Force by Their Ages

23. Figure 1.4 - Labor Force Participation Rates by Gender

24. Adapting to Educational Shifts Affecting the Workforce
Education attainment of the labor force has risen dramatically
Helps a person stay out of the ranks of the unemployed
American students are said to lag behind in math and science test scores
HR managers have to find strategies to help their firms compete, despite challenges

25. Adapting to Cultural and Societal Changes Affecting the Workforce
Culture and society affect one’s behavior on the job and the environment within the organization
Influences reactions to:
Work assignments
Leadership styles
Reward systems
HR policies should be adjusted to cope with ongoing changes
Changing employee rights
Heightened privacy concerns of employees

26. Adapting to Cultural and Societal Changes Affecting the Workforce
Employers are implementing privacy policies, limit the use of social security numbers and conduct background checks
Excessive monitoring could lead to ligation
Changing attitudes toward work and how they relate to employee engagement
Employees are focused on finding interesting work and pursuing multiple careers
Employee engagement: Extent to which employees are enthused about their work and committed to it
Balancing work and family

27. Role of HR Managers and T heir Partnership with Other Managers
HR managers help firms choose the best strategies to compete globally
Select ideal HR systems, maximize productivity and manage benefits
Successful organizations combine the experience of line managers with the expertise of HR managers
To develop and utilize the talents of employees to their greatest potential
Line managers: Non-HR managers who are responsible for overseeing the work of other employees

28. Role of HR Managers and Their Partnership with Other Managers
Responsibilities of human resources managers
Strategic advice and counsel
Service
Policy formulation and implementation
Employee advocacy

29. Figure 1.7 - Human Resource Competency Model