PowerPoint Presentation by Charlie Cook
The University of West Alabama
Managing Human Resources
Bohlander Snell
14
th
edition
Copyright 2007 Thomson/South-Western.
All rights reserved.
The Challenge of
Human Resources
Management
Copyright 2007 Thomson South-Western. All rights reserved. 12
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 HRM
issuesare as relevant to line managers as they are
to managers in the HR department.
Copyright 2007 Thomson South-Western. All rights reserved. 13
Competitive Advantage through People
Core Competencies
Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to
customers.
Sustained competitive advantage through
people 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 11 Overall 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
Globalization
The trend toward opening up foreign markets to
international trade and investment
Impact of globalization
Anything, anywhere, anytime markets
Partnerships with foreign firms
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Challenge 1: Going Global (contd)
Corporate Social Responsibility
The responsibility of the firm to act in the best
interests of the people and communities affected by
its activities
Impact on HRM
Different 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
Copyright 2007 Thomson South-Western. All rights reserved. 18
Challenge 2: Embracing New Technology
Knowledge Workers
Workers 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.
Copyright 2007 Thomson South-Western. All rights reserved. 110
HRM IT Investment Factors
Fit of the application to
the firms employee base.
Ability to upgrade
Increased efficiency and
time savings
Compatibility with current
systems
Availability of technical
support
Time required to
implement and train staff
members to use HRIS
Initial and annual
maintenance costs
Training time required for
HR and payroll
Copyright 2007 Thomson South-Western. All rights reserved. 111
Challenge 3: Managing Change
Types of Change
Reactive 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 keep
employees focused on the success of the business.
Copyright 2007 Thomson South-Western. All rights reserved. 112
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.
Copyright 2007 Thomson South-Western. All rights reserved. 113
Challenge 4: Managing Talent, or Human
Capital
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.
Copyright 2007 Thomson South-Western. All rights reserved. 114
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.
Four guiding principles:
1. Delight the Customer
2. Doing things right the very first time
3. People-based management
4. Continuous improvement
Copyright 2007 Thomson South-Western. All rights reserved. 115
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.
Copyright 2007 Thomson South-Western. All rights reserved. 116
Challenge 6: Containing Costs
Downsizing
The 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 other
countries.
Copyright 2007 Thomson South-Western. All rights reserved. 117
Challenge 6: Containing Costs (contd)
Employee Leasing
The 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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Figure 14 Productivity Enhancements
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Figure 18 Model 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 Quarterly 41, no. 2 (April 2000): 3138.
Copyright 2007 Thomson South-Western. All rights reserved. 120
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.
Copyright 2007 Thomson South-Western. All rights reserved. 121
Cultural Changes
Cultural
Changes
Employee
Rights
Concern for
Privacy
Attitudes
towards Work
Balancing Work
and Family
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Qualities of Human Resources Managers
Responsibilities
1. Advice and counsel
2. Service
3. Policy formulation and
implementation
4. Employee advocacy
Competencies
1. Business mastery
2. HR mastery
3. Change mastery
4. Personal credibility
Copyright 2007 Thomson South-Western. All rights reserved. 123
Figure 19 Human 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, Fax: (212) 682-6851.
Copyright 2007 Thomson South-Western. All rights reserved. 124
Key Terms
corporate social
responsibility
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
total quality management
(TQM)
