total quality management

WED 469 Training Systems Management, Chapter 2

Chapter 5

Emerging Firms

The Human Resource

Function and


Chapter Outline• The Emerging Issue• Chapter Overview• HRM in the Emerging Firm• The Major HR Functions• The Historical Development of the HR

Function• HRM’s Role in TQM• The Future of the HR Function• Chapter Summary


The Emerging Issue

Almost 100% of human resource management books discuss large corporations.

… but 99.7 of all businesses have fewer than 500 employees.78.8% of all companies have fewer than 10 employees.

Human resource approaches need to be flipped on their head. How can you help fledging companies become

small firms and then larger corporations?


“The work of human resources is to identify and develop people who have the talents and imagination companies need to compete in a changing, complex, competitive environment. That means that HRM ought to be the most important job in every business.”


Human Resource Management does not rest solely in the HR department. Managers play a crucial role in these and other human resource activities. In fact, managers will serve as the first-line human resource managers for the company. This is especially the case in smaller firms and growing firms where the existence of a human resource department is less likely.


HRM as a General Management

Responsibility

1. Increasing international competition.

2. Increasing complexity and size of organizations.

3.Organizational downsizing.

4.Greater government involvement in human resource activities.


5. Increasing education of the workforce.

6.Changing values of the workforce.

7.More concern with career and life satisfaction.

8.Workforce diversity.

HRM as a General Management

Responsibility


HRM in the Emerging FirmSome studies imply that smaller, emerging firms are rushing to formalize HR functions.

Other studies show that HR practices in smaller firms have stagnated over the past decade.


HRM in the Emerging Firm

Over the past decade, studies have

demonstrated that size-appropriate human

resources activities help attract capital, foster an

entrepreneurial work environment, and help retain talent critical for

success in today’s business world.

This course will help you understand important

human resource functions and provide you with

appropriate tools to carry them out.


The Major Human Resource FunctionsThe Human Resource Process model exhibits how the various human resource activities fit together in light of the critical managerial issues.

There are two dimensions that affect core human resource activities.

Internal Factors

External Challenges


The Human Resource Process

Model

Labor relations and changing workforce characteristics

Legal and ethical issues

Safety and health issuesInte

rnat

iona

l iss

ues

Training and development

Employee discipline

Compensation and benefits

Performance appraisal

Recruitment and selection

Human resource planning

Job analysisInter

nal Fa

ctors

Extern

al Chall

enge

s


1980-1960

Maturing ofHR Function

1960-1980HR’s

TeenageYears

1930-1960HR’s

Childhood

1910-1930

Birth ofthe HR

Function

Historical Development of the Human Resource Function

Pre-1910ProductionCentered


The Key Variable to TQM:Human Resource Management

In a recent Gallup survey, senior managers ranked the most effective approaches in improving quality. Employee motivationChange in corporate cultureEmployee educationProcess controlExpenditures on capital equipment More control of suppliesMore inspectionsImproved administrative support


The Key Variable to TQM:Human Resource Management

Employee motivation

Change in corporate

culture

Employee education

Process control

Expenditures on capital

equipment

More control of supplies

More inspections

Improved administrative

support

While some of these approaches to quality enhancement involve technical improvements, it is obvious that the majority of the most effective approaches to improving quality focus on the effective management of human resources.


How can human resource activities be utilized to enhance quality?

Answer: Apply the same principles of TQM to human resource management, which are: Quality work the first time Focus on the customer Strategic, holistic approach to improvement Continuous improvements as a way of lifeMutual respect and teamwork.


Turning the Key to TQMHR employees and managers should approach HR activities and functions with the same quality emphasis that they place on other functions. Such as:

Give enough time and resources to make quality decisions; don’t rush to conclusions and stay clear of quick fixes.

Evaluate programs on a regular basis.

Be sensitive to employees’ needs.


HR Management and the Entrepreneurial Challenge

It is important for owners and managers of emerging organizations to establish a firm that remains flexible during the growth stages.


Morris and Jones Study ofHRM Practices and

Entrepreneurial Performance

Planning/Overall

Job Design

Recruitment &

SelectionTraining &

Development

Performance Appraisal

Compensation/ Rewards

Human resource management is a vital link that keeps emerging firms dynamic and successful.


1980-1960

Maturing ofHR Function

1960-1980HR’s

TeenageYears

1930-1960HR’s

Childhood

1910-1930

Birth ofthe HR

Function

The Future of the Human Resource Function

Pre-1910ProductionCentered

The next decade: The practice of HRM faces many challenges and offers many opportunities. HR professionals recommend:• HR function take a more strategic position within the firm• Executives understand that HR activities are important for survival• HR managers should report directly to the CEO• HR managers become CEOs themselves.


Chapter Outline

This new millennium represents a challenging time for the human resource function. Owners and senior executives of emerging and growing firms need to empower their managers to perform human resource functions in such a way that the firm achieves a sustainable competitive advantage.

• Chapter Summary

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