2. rudyct 00 Prof Ir Rudy C Tarumingkeng, PhD In HUMAN RESOURCE MANAGEMENT Lecture series by

3. STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT rudyct 00

4. MANAGEMENT PROCESS Planning Organizing Staffing Leading Controlling

5. rudyct 00 Getting results … thru people … “… For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and the company’s inability to recruit and maintain a good work force that does constitute the bottleneck for production. … I think this will hold true even more in the future.” Fred K. Foulkes: Harvard Business Review, March-April 1975 rudyct 00

6. HUMAN RESOURCE MANAGEMENT Conducting job analysis Recruiting job candidates Selecting job candidates Orienting & training new employees Managing wages & salaries Providing incentives & benefits Communicating (counseling, disciplining etc.) Training & developing Building employee commitment rudyct 00

7. What is STRATEGIC HRM? THE LINKING OF HRM WITH STRATEGIC ROLE AND OBJECTIVES IN ORDER TO IMPROVE BUSINESS PERFORMANCE AND DEVELOP ORGANIZATIONAL CULTURES AND FOSTER INNOVATION AND FLEXIBILITY. Dessler (2000)

8. rudyct 00 ADDED VALUE VALUE ADDED HUMAN CAPITAL

9. rudyct 00 FUNDAMENTAL CHANGES FACING MGRs EXPLOSION OF TECHNOLOGICAL INNOVATION GLOBALIZATION OF MARKETS AND COMPETITION DEREGULATION CHANGING DEMOGRAPHICS NEW POLITICAL SYSTEMS UNCERTAINTY,TURBULENCE, RAPID CHANGE Leads to …. Fast, Responsive, Cost-effective SO COMPANIES MUST BE

10. rudyct 00 EXPLOSION OF TECHNOLOGICAL INNOVATION Vast number of new patents Three new websites born each minutes New computers outdated in six months New high tech factories

11. rudyct 00 GLOBALIZATION OF MARKETS & COMPETITION Staggering numbers of new competitors New pressures for quality and productivity New opportunities

12. rudyct 00 DEREGULATION Banking Telecommunications Airlines

13. rudyct 00 CHANGING DEMOGRAPHICS More diversity Two-wage-earner families Increasing global workforce

14. rudyct 00 NEW POLITICAL SYSTEMS Former Soviet Union moves to capitalism Rise of European Union, NAFTA, APEC etc. Indonesia: “reformasi”, etc. /

15. rudyct 00 Leads to … RAPID CHANGE: More consumer choice Merger and divestitures Joint ventures More complexity Short product life cycles Market fragmentation More uncertainty for managers Record number of business failures

16. rudyct 00 So … companies must be FAST, RESPONSIVE, COST-EFFECTIVE: *Flat organization *Downsized *Quality-conscious *Empowered *Smaller units *Decentralized *Human-capital oriented *Boundaryless *Values- and vision-oriented *Team-based

17. rudyct 00 Prof Rosebeth Moss Kanter (1989): “Position, title and authority are no longer adequate tools for managers to rely on to get their jobs done. … Instead, success depends increasingly on tapping into sources of good idea, on figuring out whose collaboration is needed to act on those ideas, and on working with both to produce results.” /

18. rudyct 00 Keywords for HRD today Strategic management High tech knowledge-based HR Information Technology e-business (banking, commerce etc.) Finance & accounting