2. The Challenge of Human Resource Management 1
Matakuliah : J0124-Manajemen Sumber Daya Manusia
Tahun : 2010
The Challenge of Human Resource Management 1

3. 2

4. Learning Outcomes
After studying this chapter, the students should be able to :
Identify how firms gain a sustainable competitive advantage through people
Explain how globalization is influencing HRM 4
Bina Nusantara University

5. 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.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

6. Overall Framework for Human Resources Management
FIGURE 1.1
Overall Framework for Human Resources Management
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7. Competitive Challenges and Human Resources Management
The most pressing competitive issues facing firms:
Competing, recruiting, and staffing globally
Embracing new technology
Managing change
Managing talent, or human capital
Responding to the market
Containing costs
© 2010 South-Western, a part of Cengage Learning. All rights reserved.

8. Challenge 1: Competing, Recruiting, and Staffing Globally
Globalization
The trend toward opening up foreign markets to international trade and investment
Impact of Globalization
“Anything, anytime, anywhere” markets
Partnerships with foreign firms
Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements
WTO and GATT
© 2010 South-Western, a part of Cengage Learning. All rights reserved.

9. Challenge 1…(cont’d) Corporate Social Responsibility (CSR)
The responsibility of the firm to act in the best interests of the people and communities affected by its activities
Globalization’s 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
© 2010 South-Western, a part of Cengage Learning. All rights reserved.

10. 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
Virtual learning
© 2010 South-Western, a part of Cengage Learning. All rights reserved

11. 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:
Automation of routine tasks, lower administrative costs, increased productivity and response times.
Self-service access to information and training for managers and employees
Online recruiting, screening, and pretesting of applicants
Training, tracking, and selecting employees based on their record of skills and abilities
Organization-wide alignment of “cascading” goals
© 2010 South-Western, a part of Cengage Learning. All rights reserved

12. 2 Automation of Talent Management Functions
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13. HRM IT Investment Factors
Fit of the application to the firm’s employee base.
Ability to upgrade Increased efficiency and time savings
Compatibility with current systems
Availability of technical support
Time required to implement and train staff members to use HRIS
Initial and annual maintenance costs
Training time required for HR and payroll
© 2010 South-Western, a part of Cengage Learning. All rights reserved

14. 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
Managing Change through HR
Formal change management programs help to keep employees focused on the success of the business.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

15. Challenge 3: Managing Change (cont’d)
Why Change Efforts Fail:
Not establishing a sense of urgency.
Not creating a powerful coalition to guide the effort.
Lacking leaders who have a vision.
Lacking leaders who communicate the vision.
Not removing obstacles to the new vision.
Not systematically planning for and creating short-term “wins.”
Declaring victory too soon.
Not anchoring changes in the corporate culture.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

16. Challenge 4: Managing Talent, or 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.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

17. 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.
Six Sigma
A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.
HR facilitates organizational development of Six Sigma.
HR helps balance the opposing needs for order and control with the needs for growth and creativity.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

18. 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.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

19. 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 (Global Sourcing)
The business practice of sending jobs to other countries.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

20. Challenge 6: Containing Costs (cont’d)
Hidden Costs of a Layoff
Severance and rehiring costs
Accrued vacation and sick day payouts
Pension and benefit payoffs
Potential lawsuits from aggrieved workers
Loss of institutional memory and trust in management
Lack of staffers when the economy rebounds
Survivors who are risk-averse, paranoid, and political
© 2010 South-Western, a part of Cengage Learning. All rights reserved

21. Challenge 6: Containing Costs (cont’d)
Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who aren’t afraid to innovate, knowing their jobs are safe.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

22. FIGURE 1.2
Estimated Number and Types of U.S. Jobs Estimated to Move Offshore between 2010 and 2015
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23. 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.
© 2010 South-Western, a part of Cengage Learning. All rights reserved

24. Productivity Enhancements
FIGURE 1.3
Productivity Enhancements
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25. Demographic and Employee Concerns
Demographic Changes
More diverse workforce
Ethnic and cultural challenges
Aging workforce
More educated workforce
Necessity of basic skills training
Managing Diversity
Being aware of characteristics common to employees, while also managing employees as individuals
© 2010 South-Western, a part of Cengage Learning. All rights reserved

26. 3
Social Issues in HRM
Changing Demographics: The coming decades will bring a more diverse and aging workforce to developed countries such as the United States. This has major implications for all aspects of HRM because it alters traditional experience and expectations regarding the labor pool. Among the issues in this area are:
• Globalization • Diversity strategies • Shrinking pool of skilled entry-level workers • Social Security and retirement issues • Rising health care costs for employees • Continual skills development and retraining • Outsourcing, offshoring, and the use of temporary and part-time employees
Employer/Employee Rights: This area reflects the shift toward organizations and individuals attempting to define rights, obligations, and responsibilities. Among the issues here are:
• Relationship employment versus transactional-based employment • Concern for the privacy of employees • Whistle-blowing • Comparable worth • Employer-employee ethics • Legal compliance • Mandated benefits
Attitudes toward Work and Family: Because of the increase of working women as well as employee mobility and a growing concern about family issues, there is demand for recognizing and supporting family-related concerns. Among the issues are:
• Day care and elder care • Parental leave • Flextime • Telecommuting • Alternative work schedules • Job sharing • Job rotation
© 2010 South-Western, a part of Cengage Learning. All rights reserved

27. Composition of U.S. Population
FIGURE 1.4
Composition of U.S. Population
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28. Labor Force and Gender Distributions
FIGURE 1.5
Labor Force and Gender Distributions
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29. FIGURE 1.6
Education Pays
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30. Model of Diversity Management Strategy
FIGURE 1.7
Model of Diversity Management Strategy
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31. 4
Why Diversity?
The primary business reasons for diversity management include . . .
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32. Impact of Cultural Changes
Jobs and Organizations
Employee Rights
Concern for Privacy
Attitudes towards Work
Balancing Work and Family
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33. Qualities of HR Managers
Responsibilities
Advice and counsel
Service
Policy formulation and implementation
Employee advocacy
Competencies
Business mastery
HR mastery
Change mastery
Personal credibility
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34. Human Resource Competency Model
FIGURE 1.8
Human Resource Competency Model
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