lec one-introduction to hrm and gaining competitive advantages

8/4/2019 Lec One-Introduction to HRM and Gaining Competitive Advantages

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Introduction to HRM andGaining Competitive

Advantages

1By Muhammad Afaq Mazhar04/14/12


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After this Lecture what

we will learn

04/14/12 By Muhammad Afaq Mazhar 2

Introduction What is HRM

Why it is Resource HRM Concept Challenges of HRM Function and role of HR


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IntroductionoThe role of Human Resource

Management is to ensure that acompanys human resources provide acompetitive advantage

o Human Resource managers should be

integrally involved in a companysstrategic management process, theyshould:o have input in strategic plan

o have specific knowledge of strategicgoalso know the employee skills, behaviours

and attitudes needed to supportstrategic plan

o develop programs to ensure employees 3By Muhammad Afaq Mazhar04/14/12


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CONCEPT

o HR as Business Partners

o Organizational Structure in Linewith Business Goals

o Right Man for the Right Job

o Specialized Roles

o Content Workforce



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CHALLENGES

o Competitiono Global Change

o Expectations of Stakeholders

o Access to Technology andInformation

o Resistance to Change

o I Can do it all



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PAKISTANI PERSPECTIVE

o Part of Admin Setup or MereChange of Name

o Vertical Orgonogram

o Personnel, ACRo Colonial Policies & Procedures

o Lack of Organizational

Development



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SPECIALIZED FUNCTIONS

o Organizational Development

o Performance Management

o Career Planning

o Compensation

oTraining & Development

o

Employee Relationso E- Recruitment



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Gaining CompetitiveAdvantage

o Competitiveness refers to acompanys ability to maintain andgain market share in its industry

o It is related to companyeffectiveness

o Human Resource Managementrefers to the policies, practices, andsystems that influence employeesbehavior, attitudes, andperformance

.

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What Roles DoHR Departments Perform?

Administrative

Expert

Change Agent

Strategic Partner

Employee

Advocate

HumanResources



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How is the HRM FunctionChanging?

oThe amount of time that the HRMfunction devotes to administrativetasks is decreasing and its roles as astrategic business partner, changeagent, and employee advocate areincreasing

o In shifting the focus from current

operations to strategies for thefutureand preparing non-HRmanagers to develop and implementHR practices, HR managers face twoimportant challenges:oSelf-service refers to giving

10By Muhammad AfaqMazhar

04/14/12


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The HRM Profession

o HR salaries vary depending oneducation and experience as well asthe type of industryoHR specialistsoHR generalistsoCollege degrees are held by the vast

majority of HRM professionalso

Professional certification is lesscommon than membership inprofessional associations

oThe primary professional

organization for HRM is the Society 11By Muhammad Afaq Mazhar04/14/12


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Competitive ChallengesInfluencing HRM

oThreecompetitivechallenges

thatcompaniesnow face willincrease theimportanceof HRMpractices:

The Global

Challenge

The Challenge ofSustainability

The Technology

Challenge 12By Muhammad Afaq Mazhar04/14/12

T S t t


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T e Susta na tyChallenge

o Sustainabilityrefers to the ability of a

company to survive and succeed in adynamic competitive environmento Stakeholders refers to shareholders, the

community, customers, and all other

parties that have an interest in seeingthat the company succeedso Sustainability includes the ability to:

o deal with economic and social changes,

o engage in responsible and ethical businesspractices,

o provide high quality products and services, ando put in place methods to determine if the

company is meeting stakeholders needs 13By Muhammad Afaq Mazhar04/14/12

h i bili


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The SustainabilityChallenge

oThe changing structure of the economyo Impact of September 11, 2001oThe competition for labor

o Skill demands for jobs are changingo

Knowledge is becoming more valuableo Intellectual capital refers to the creativity,productivity, and service provided byemployees

o Knowledge workers are employees who

contribute to the company not through manuallabor but through a specialized body ofknowledge

o Empowerment means giving employees

responsibility and authority to make decisionsre ardin all as ects of roduct develo ment14By Muhammad Afaq Mazhar04/14/12


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The SustainabilityChallenge

o

A learning organization embracesa culture of lifelong learning,enabling all employees to continuallyacquire and share knowledge

oThe psychological contractdescribes what an employee expectsto contribute and what the company

will provide to the employee forthese contributions

o Alternative work arrangements

include independent contractors, on-call workers tem orar workers and15By Muhammad Afaq Mazhar04/14/12


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The Global Challengeo

Companies are finding that to survivethey must compete in internationalmarkets

o Every business must be prepared to

deal with the global economy. This ismade easier by technology.

o Offshoringrefers to the exporting ofjobs from developed countries to lessdeveloped countries.

o Many companies are enteringinternational markets by exporting

their products overseas, building 16By Muhammad Afaq Mazhar04/14/12


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The TechnologyChallengeoTechnology has reshaped

the way we play, plan ourlives, and where we workoThe overall impact of the

Internet

oThe Internet has created a

new business model e-commerce in whichbusiness transactions andrelationships can be

conducted electronically

Th T h l


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The TechnologyChallenge

o Advances in technology have:o changed how and where we work,o resulted in high-performance models of work

systems,o increased the use of teams to improve customer

service and product quality,o changed skill requirements,o increased working partnerships,o led to changes in company structure and reporting

relationships,o increased the availability ofHuman Resource

Information Systems (HRIS), which are used toacquire, store, manipulate, analyze, retrieve, anddistribute HR information,

o increased the availability ofe-HRM, which is the

processing and transmission of digitalized 18By Muhammad Afaq Mazhar04/14/12

M ti C titi


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Meeting CompetitiveChallenges Through HRM

Practiceso HRM practices that helpcompanies deal with thefour competitive

challenges can begrouped into fourdimensionsoThe human resource

environmentoAcquiring and preparing

human resourceso

Assessment anddevelo ment of human

M ti C titi


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Meeting CompetitiveChallenges Through HRM

Practiceso Managing internal and external environmentalfactors allows employees to make the greatestpossible contribution to company productivityand competitiveness

o Customer needs for new products or servicesinfluence the number and type of employeesbusinesses need to be successful

o Besides interesting work, pay and benefits are

the most important incentives that companiescan offer employees in exchange forcontributing to productivity, quality, andcustomer service

o Human resource management practices of

both managers and the human resource 20By Muhammad Afaq Mazhar04/14/12


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Customer Service andQuality Emphasis

o Total Quality Management (TQM) is acompany-wide effort to continuouslyimprove the ways peoples, machines, andsystems accomplish work

o Core values of TQM include:o designing methods and processes to

meet the needs of internal and external

customerso all employees receive training in qualityo promotion of cooperation with vendors,

suppliers, and customers

omanagement gives feedback on 21By Muhammad Afaq Mazhar04/14/12


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Changing DemographicsDiversity of the Workforceo Internal labor force is the labor

force of current employees.o External labor market includes

persons actively seekingemployment.

oThe workforce is becoming

increasingly diverse.oWomenoMinoritiesoDisabled workerso Immigrants form different cities 22By Muhammad Afaq Mazhar04/14/12

anag ng a verse


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anag ng a verseWorkforce

oTo successfully manage a diverse

workforce, managers must develop anew set of skills, including:oCommunicating effectively with

employees from a wide variety of culturalbackgrounds.

oCoaching and developing employees ofdifferent ages, educational backgrounds,

ethnicity, physical ability, and race.o Providing performance feedback that is

based on objective outcomes.

oCreating a work environment that makes23By Muhammad Afaq Mazhar04/14/12


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Legal and Ethical Issues

o

Five main areas of the legalenvironment have influenced HRMover the past 25 yearso Equal employment opportunityo Employee safety and healtho Employee pay and benefitso Employee privacy

oJob securityo Women and minorities still face the

glass ceiling



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Legal and Ethical Issues

o Human resourcemanagers must satisfythree basic standards fortheir practices to beconsidered ethical:o HRM practices must result

in the greatest good for

the largest number ofpeople

o Employment practicesmust respect basic human

rights of privacy, due


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With the continuing trend of BrainDrain in Pakistan, what do you expect

in the next 15 years? Pros? Cons?

04/14/12 26By Muhammad Afaq Mazhar


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Brain Drain in Pakistan

With the continuous trend of braindrain in Pakistan, we can expect ashort-term loss to the economy of

Pakistan and this short-term loss willpersist in the next 15 years if theeconomy of Pakistan does not

improve but if the economy ofPakistan improves, we can expectthe same people coming back to

Pakistan with more knowledge and04/14/12 27By Muhammad Afaq Mazhar


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How can human resourcemanagers help employees deal

with work/life issues?



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HRM dealing withwork/life issues

HRM managers have implementedprograms such as flex-time andtelecommuting that allow

employees to balance both a careerand a family. Benefit packageshave been altered to reflect the

needs of dual career couples



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Labor Supply

Do We Have a Shortage of SkilledLabor?

The combination of the small

population, the already highparticipation rate of women in theworkforce, and early retirements willlead to a significantly smaller futurelabor pool from which employers canhire.



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Labor Supply

Why Do Organizations Lay OffDuring Shortages?

Downsizing is part of a larger goal

of balancing staff to meet changingneeds.

Organizations want more flexibility

to better respond to change.This is often referred to as

rightsizing, linking employee needsto organizational strategy.



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Labor Supply

How Do Organizations BalanceLabor Supply?

Organizations are increasingly using

contingent workers to respond tofluctuating needs for employees.

Contingent workers include

Part-time workersTemporary workers

Contract workers



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Labor Supply

Issues Contingent Workers Createfor HRM How to attract quality temporaries

How to motivate employees who arereceiving less pay and benefits

How to have them available whenneeded

How to quickly adapt them to theorganization

How to deal with potential conflictsbetween core and contingent workers



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Thanks


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