copyright © 2010 pearson education, inc. publishing as prentice hall14-1 human resource management...
TRANSCRIPT
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 14-1
Human Resource Management
Chapter Fourteen
Creating High-Performing HR Systems
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Axioms for Effectively Managing Employees
No two companies are the same There is no one best way to manage
employees Using the wrong practice, or using the right
practice poorly, can cause more harm than good
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High-Performing HR Systems
External alignment—managers select HR activities that help company meet its organizational demands, cope with environmental factors and comply with regulatory issues
Internal alignment—focuses on how well a firm’s employee management practices support one another
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External AlignmentCompany’s strategy influences: How jobs are designed Workforce planning tactics Recruitment and selection practices Types of training and development Performance evaluation methods Decisions concerning compensation and
benefits Safety and wellness plans
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Other External Factors
Labor force trends Diversity of the labor
force Ethical and social
responsibilities of the firm
Laws and regulations
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Internal Fit of HR Practices
Each decision influences other choices companies make about managing employees
Synergies occur when combined with other HR practices
Powerful connections occur when practices support and reinforce each other
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Managing the Employment Portfolio
HR systems may target a variety of employee contributions like:
Safety Customer service Productivity Creativity Quality
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Strategic Value
Employees contribute different things to their firms
As the strategic value of an employee’s contributions decreases, the potential return from his/her contributions diminishes
This is often when employers turn to external sources (outsourcing)
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Uniqueness The extent to which contributions employees make
are specialized or unique to a company and not readily available in the open market
Employers more willing to invest in employees to realize those contributions
Transactional relationships—economic relationships that focus on both parties meeting the terms of the agreement they have with each other
Relational relationships—involve much greater commitment to the individual by the company and vice versa
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The Employment Relationship
Uniqueness of Employee Contributions and the Employment Relationship
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Employment Portfolio
Strategic value of certain positions influences the following types of HR systems:
Commitment-based Productivity-based Compliance-based Collaborative-based
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Core Employees
Most likely to contribute directly to a firm’s core competencies based on their knowledge
Companies invest in them for their long-term success
Firms may invest extensively in developing their competencies and empower them
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Job-Based Employees
Do not contribute in a unique manner and are likely to be from the external labor market
Managers use a productivity–based HR system that involves standardized jobs and people who can contribute in these jobs
Focus is on efficiency and productivity improvements
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Contract Workers
External workers who perform tasks that are neither strategically valuable nor unique
Use compliance-based HR systems focus on meeting preset rules, regulations, and/or procedures. They focus on short-term productivity and efficiency
Compensation of these workers likely to be hourly wages
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Alliance Partners Individuals who make unique contributions of
limited value in terms of strategy Managers use a collaborative-based HR
system and turn to external labor on a long-term basis
Example of this type of employee is a consultant