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Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chapter 1 Meeting Present and Emerging Strategic Human Resource Challenges 1-1

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Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Chapter 1

Meeting Present and Emerging Strategic Human

Resource Challenges

1-1

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Explain how a firm’s human resources influence its performance

Describe how firms can use HR initiatives to cope with workplace changes and trends

Distinguish between the role of a firm’s HR department and the role of the firm’s managers in utilizing human resources effectively

HR Department and Managers: An Important Partnership

1-2

Chapter Outcomes

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Formulate and implement HR strategies that can help the firm achieve a competitive advantage

Identify HR strategies that fit corporate and business unit strategies

Indicate “HR best practices” associated with high-performing firms

1-3

Chapter Outcomes

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Human Resources

Even in tough economic times the need for talented employees is high

Human Resources = Value of employees

1-4

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Types of Employees

Manager Line Employee Staff Employee Senior Employee Junior Employee Exempt Employees Nonexempt Employees

1-5

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Human Resource Strategy

Human Resource Strategy refers to a firm’s deliberate use of human resources to help it gain an edge against its competitors.

1-6

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Key HR Challenges for Managers

1-7

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Key HR Challenges: Environmental

Rapid Change The Internet Revolution Workforce Diversity Globalization Legislation Evolving Work and Family Roles Skill Shortages Rise of the Service Sector Natural Disasters

1-8

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Key HR Challenges: Organizational

Competitive Position Decentralization Downsizing Organizational Restructuring Self-Managed Work Teams The Growth of Small Businesses Organizational Culture Technology Internal and Data Security Outsourcing Product Integrity

1-9

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Matching People and Organizations

Ethics and Social Responsibility

Productivity Empowerment Brain Drain Job Insecurity

1-10

Key HR Challenges: Individual

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

There are many challenges to overcome, but we will discuss how a good HR department works with managers to provide a working environment that meets and overcomes these challenges.

Example: Use of the internet helps in recruitment by screening applicants and also assists in getting the right person in place by providing quick and reliable background checks.

1-11

Overcoming Challenges

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Strategic HR Policies: Benefits

Encouraging Proactive Behavior

1-12

Communicating Company Goals Stimulating Critical Thinking and

Ongoing Examination of Assumptions

Identifying Gaps Between Current Situation and Future Vision

Encouraging Line Managers’ Participation

Identifying HR Constraints and Opportunities

Creating Common Bonds

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Strategic HR Policies: Challenges

1-13

Maintaining a Competitive Advantage

Reinforcing Overall Business Strategy

Avoiding Excessive Concentration on Day-to-Day Problems

Develop HR Strategies Suited to Unique Organizational Features

Coping with the Environment Securing Management Commitment Translating the Strategic Plan into

Action Combining Intended and Emergent

Strategies Accommodating Change

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Strategic HR: Choices

Work Flows Staffing Employee Separations Performance Appraisal Training and Career Development Compensation Employee Rights Employee and Labor Relations International Management

1-14

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Selecting HR Strategies

To increase firm performance HR strategies should fit with

other aspects of the organization

1-15

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

HR Strategies: Fit with Organizational Strategies

Corporate Strategies Evolutionary Steady State

1-16

Porter’s Business Unit Strategies Cost leadership Differentiation Focus

Miles and Snow’s Business Strategies

Defender Prospector

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

HR Strategies: Fit with Environment

Degree of Uncertainty

Magnitude of Change Complexity Volatility

1-17

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

HR Strategies: Fit with Organizational Characteristics

Production Process Firm’s Market Posture Firm’s Overall Managerial Philosophy Firm’s Organizational Structure Firm’s Organizational Culture

1-18

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

HR Strategies: Fit with Organizational Capabilities

Distinctive Competencies Competitive edge

1-19

HR Strategies should: Help firm exploit its competencies Assist the firm to help use its HR skills

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

HR and Managers: A Partnership

Role of HR Department is to support the manager’s HR responsibilities

1-20

HR Audit: Conduct periodically Evaluates how effective firm is at

using human resources Often is an opportunity to evaluate

the human resource department as well

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Summary and Conclusions

Many challenges in HRM Plan and Implement HR in a

strategic manner Policies and procedures should be

congruent Select strategies that increase

performance HR department and management

share an important partnership

1-21

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 1-22

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.