chap01 personnel management

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PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Managing Human ResourcesManaging Human ResourcesBohlanderBohlander SnellSnell 1414thth editionedition

Copyright 2007 Thomson/SouthCopyright 2007 Thomson/South--Western.Western.All rights reserved.All rights reserved.

The Challenge ofThe Challenge of

Human ResourcesHuman ResourcesManagementManagement


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Copyright 2007 Thomson South-Western. All rights reserved. 12

ObjectivesAfter studying this chapter, you should be able to:

1. Identify how firms gain sustainable competitiveadvantage through people.

2. Explain how globalization is influencing human

resources management.

3. Describe the impact of information technology onmanaging people.

4. Identify the importance of change management.

5. State HRs role in developing intellectual capital.

6. Differentiate how TQM and reengineering influenceHR systems.


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Objectives (contd)After studying this chapter, you should be able to:

7. Discuss the impact of cost pressures on HRpolicies.

8. Discuss the primary demographic and employee

concerns pertaining to HRM.

9. Provide examples of the roles and competencies oftodays HR managers.


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Why Study Human Resources Management

Human Resources Management (HRM)The process of managing human resources (human

capital and intellectual assets) to achieve an

organizations objectives.

Why Study HRM?Staffing the organization, designing jobs and teams,

developing skillful employees, identifying approaches

for improving their performance, and rewarding

employee successesall typically labeled HRMissuesare as relevant to line managers as they are

to managers in the HR department.


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Competitive Advantage through People

Core CompetenciesIntegrated knowledge sets within an organization that

distinguish it from its competitors and deliver value to

customers.

Sustained competitive advantage throughpeople is achieved if these human resources:

Have value.

Are rare and unavailable to competitors.

Are difficult to imitate.

Are organized for synergy.


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Figure 1Figure 111 Overall Framework for Human Resource ManagementOverall Framework for Human Resource Management


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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


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Challenge 1: Going Global

GlobalizationThe 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


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Challenge 1: Going Global (contd)

Corporate Social ResponsibilityThe responsibility of the firm to act in the best

interests of the people and communities affected by

its activities

Impact on HRMDifferent 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


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Challenge 2: Embracing New Technology

Knowledge WorkersWorkers 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


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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.


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Highlights in HRM 2

Source: How HR Managers Use Technology Applications to Control HR Department

Costs, Human Resource Department Management Report, no. 45 (May 2004).

Most Common HR Information Systems Applications

Payroll 76.7%

Benefits administration 57.1

Benefits enrollment 41.4

Recruitingapplicant tracking 39.1

Personnel administration 39.1

Training and development 31.6

Employee self-service 24.8

Manager self-service 18.0Other 3.8


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HRM IT Investment Factors

Fit of the application tothe firms employee base.

Ability to upgrade

Increased efficiency and

time savings Compatibility with current

systems

Availability of technical

support

Time required toimplement and train staff

members to use HRIS

Initial and annual

maintenance costs Training time required for

HR and payroll


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Challenge 3: Managing Change

Types of ChangeReactive 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 keepemployees focused on the success of the business.


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Challenge 3: Managing Change (contd)

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.


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Challenge 4: Managing Talent, or HumanCapital

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.


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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.


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Challenge 5: Responding to the Market

(contd) 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.


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Challenge 6: Containing Costs

DownsizingThe 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 othercountries.


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Figure 1Figure 122 Estimated Number and Types of U.S. Jobs Moving Offshore by 2015Estimated Number and Types of U.S. Jobs Moving Offshore by 2015

Source: Near-Term Growth of Offshoring Accelerating, Forester Research, Inc., May 2004.


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Challenge 6: Containing Costs (contd)

Employee LeasingThe 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.


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Hidden Costs of Layoff

Severance and rehiring costs

Accrued vacation and sick day payouts

Pension and benefit payoffsPotential 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


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Benefits of a No-Layoff PolicyA fiercely loyal,more productive workforce

Higher customer satisfaction

Readiness to snap back with the economy

A recruiting edge

Workers who arent afraid to innovate, knowing their

jobs are safe.


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Figure 1Figure 133 U.S. Productivity/Output per WorkerU.S. Productivity/Output per Worker

Source: Derived from U.S. Department of Commerce data


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Figure 1Figure 144 Productivity EnhancementsProductivity Enhancements


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Highlights in HRM 4


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Figure 1Figure 155 Growth of the U.S. Minority PopulationGrowth of the U.S. Minority Population

Source: U.S. Census Bureau


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Figure 1Figure 166 Labor Force and Gender DistributionsLabor Force and Gender Distributions

LABOR FORCE PARTICIPATION

RATE BY SEX, PROJECTED19502012

Continuing a historical trend, the

labor force participation rate for

men will decline as the rate for

women increases.

LABOR FORCE GROWTH BY

SEX, PROJECTED 20022012

The number of women in the

labor force is expected to grow at

a higher rate than that for men.

Source: U.S. Department of Labor


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Figure 1Figure 177 Education PaysEducation Pays

Source: U.S. Department of Labor


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Figure 1Figure 188 Model of Diversity Management StrategyModel of Diversity Management Strategy

Source: Reprinted by permission of Elsevier from Managing for Effective Workforce Diversity by Kathleen

Iverson from The Cornell Hotel and Restaurant Administration Quarterly41, no. 2 (April 2000): 3138.


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Highlights in HRM 5

Source: Survey data from Gail Robinson and Kathleen Dechant, Building a Business Case for Diversity, Academy of

Management Executive 11, no. 3 (August 1997): 2131; permission conveyed through the Copyright Clearance Center, Inc.


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Cultural Changes

CulturalCultural

ChangesChanges

EmployeeEmployee

RightsRights

Concern forConcern for

PrivacyPrivacy

AttitudesAttitudes

towards Worktowards Work

Balancing WorkBalancing Work

and Familyand Family


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Qualities of Human Resources Managers

Responsibilities1. Advice and counsel

2. Service

3. Policy formulation andimplementation

4. Employee advocacy

Competencies1. Business mastery

2. HR mastery

3. Change mastery4. Personal credibility


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Figure 1Figure 199 Human Resource Competency ModelHuman 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) 490-6387,F

ax: (212) 682-6851.


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Key Terms

corporate socialresponsibility

downsizing

employee leasing

globalization

human capital

human resources

information system

(HRIS)

human resources

management (HRM)

knowledge workers

managing diversity

offshoring

outsourcing

proactive change

reactive change

reengineering

Six Sigma

total quality management

(TQM)

chap01 personnel management

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