PowerPoint Presentation by Charlie Cook and

adapted by Monica Belcourt.

2005 by Nelson, a division of Thomson Canada Limited.

Managing Human Resources,

4th Canadian Edition
Belcourt et al.

Belcourt et al. 4th edition

Objectives
After studying this chapter, you should be able to:
1. Identify how firms gain sustainable competitive
advantage through people.
2. Explain how globalization is influencing human
resources management.
3. Describe the impact of information technology on
managing people.
4. Identify the importance of change management.
5. State HRs role in developing intellectual capital.
6. Differentiate how TQM and reengineering
influence HR systems.

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Belcourt et al. 4th edition

Objectives (contd)
After studying this chapter, you should be able to:
7. Discuss the impact of cost pressures on HR
policies.
8. Discuss the primary demographic and
employee concerns pertaining to HRM.
9. Provide examples of the roles and
competencies of todays HR managers.

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Belcourt et al. 4th edition

Competitive Advantage through

People
Human Resource Management

A set of inter-related policies, practices, and programs

whose goal is to attract, socialize, motivate, maintain,
and retain an organizations employees

Core Competencies
Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to
customers.

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Competitive Advantage through

People

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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Overall Framework for

Human Resource Management
COMPETITIVE
COMPETITIVE
CHALLENGES
CHALLENGES

Globalization
Globalization
Technology
Technology
Managing
Managingchange
change
Human
Humancapital
capital
Responsiveness
Responsiveness
Cost
Costcontainment
containment

HUMAN
HUMAN
RESOURCES
RESOURCES

Planning
Planning
Recruitment
Recruitment
Staffing
Staffing
Job
Jobdesign
design
Training/development
Training/development
Appraisal
Appraisal
Communications
Communications
Compensation
Compensation
Benefits
Benefits
Labour
Labourrelations
relations

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Presentation Slide 11

EMPLOYEE
EMPLOYEE
CONCERNS
CONCERNS

Background
Backgrounddiversity
diversity
Age
Agedistribution
distribution
Gender
Genderissues
issues
Educational
Educationallevels
levels
Employee
Employeerights
rights
Privacy
Privacyissues
issues
Work
Workattitudes
attitudes
Family
Familyconcerns
concerns

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Figure 1.1

Belcourt et al. 4th edition

Competitive Challenges and Human

Resources Management
The most pressing competitive issues facing
firms:
Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs

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Belcourt et al. 4th edition

Going Global
Globalization
The trend toward opening up foreign markets to
international trade and investment.

Impact of Globalization
Partnerships with foreign firms
Anything, anywhere, anytime markets
Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements
WTO and GATT

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Going Global (contd)

Impact on HRM
Different geographies, cultures, laws, and
business practices
Issues:
Identifying

capable expatriate managers.

Developing foreign culture and work
practice training programs.
Adjusting compensation plans for
overseas work.

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Embracing New Technology

Knowledge Workers
Workers whose
responsibilities extend
beyond the physical
execution of work to include
planning, decision making,
and problem solving.

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Influence of Technology in HRM

Human Resources Information System (HRIS)
Computerized system that provides current and
accurate data for 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, increase productivity,
and response times.

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Belcourt et al. 4th edition

Major Uses For

HR Information
Systems

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Source: HR and Technology Survey,

Deloitte & Touche and Lawson
Software, 1998.
HRM 1

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Impact of IT on HRM
Operational
Operational
Impact
Impact

Relational
Relational
Impact
Impact

HRM
HRM

Transformational
Transformational
Impact
Impact

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HRM IT Investment Factors

Initial costs and annual
maintenance costs
Fit of software packages
to the employee base
Ability to upgrade,
increased efficiency and
time savings
Compatibility with current
systems

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User-friendliness
Availability of technical
support
Needs for customizing
Time required to
implement
Training time required for
HR and payroll

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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

Formal change management programs help to

keep employees focused on the success of the
business.
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Belcourt et al. 4th edition

Managing Change through HR

Why Change Efforts Fail:
1.
2.
3.
4.
5.
6.

Not establishing a sense of urgency.

Not creating a powerful coalition to guide the effort.
Lacking leaders who have a vision.
Lacking leaders who communicate the vision.
Not removing obstacles to the new vision.
Not systematically planning for and creating shortterm wins.
7. Declaring victory too soon.
8. Not anchoring changes in the corporate culture.
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Developing Human Capital

Human Capital
The knowledge, skills, and capabilities of individuals
that have economic value to an organization.

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Belcourt et al. 4th edition

Human Capital and HRM

Creation of knowledge
Utilization of knowledge
Application of
knowledge

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Belcourt et al. 4th edition

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.

Six Sigma
A process used to translate customer needs into a set
of optimal tasks that are performed in concert with
one another.

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Belcourt et al. 4th edition

Responding to the Market

Reengineering
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.

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Containing Costs
Downsizing
The planned elimination
of jobs (head count).

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Downsizing and Upsizing

Percent of companies reporting that they:

Source: Gene Koretz, Hire Math: Fire 3, Add 5,

Business Week Online (March 13, 2000).

2005 by Nelson, a division of

*All annual readings are for 12 months ending at

midyear. Categories are not mutually exclusive.

Figure 1.2
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Belcourt et al. 4th edition

Containing Costs (contd)

Hidden Costs of Layoff
Severance and rehiring costs
Accrued vacation and sick day payouts
Pension and benefit payoffs
Potential lawsuits from aggrieved workers
Loss of institutional memory and trust in management
Lack of staffers when the economy rebounds
Survivors who are risk-averse, paranoid, and political

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Containing Costs (contd)

Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who arent afraid to innovate, knowing their
jobs are safe.

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Containing Costs
Outsourcing
Contracting outside the organization to have work
done that formerly was done by internal employees.

Employee Leasing
The process of dismissing employees who are then
hired by a leasing company (which handles all HRrelated activities) and contracting with that company
to lease back the employees.

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Productivity Enhancements

MOTIVATION
MOTIVATION

Job
Jobenrichment
enrichment
Promotions
Promotions
Coaching
Coaching
Feedback
Feedback
Rewards
Rewards

Perf
Perf == ff (A,M,E)
(A,M,E)
ENVIRONMENT
ENVIRONMENT

Empowerment
Empowerment
Teams
Teams
Leader
Leadersupport
support
Culture
Culture

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Presentation Slide 12

ABILITY
ABILITY

Recruitment
Recruitment
Selection
Selection
Training
Training
Development
Development

Figure 1.3
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Belcourt et al. 4th edition

Demographic and
Employee Concerns

The Diversity Challenge

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HRM 4
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Belcourt et al. 4th edition

Age
Distribution

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Belcourt et al. 4th edition

Gender
Distribution

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Belcourt et al. 4th edition

Rising levels of
education

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Belcourt et al. 4th edition

Cultural Changes
Employee Rights

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Cultural Changes
Concern for Privacy
Changing Attitudes Towards Work
Balancing Work and Family

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Belcourt et al. 4th edition

Top Issues for Managers

in Balancing Work and Home
Executive recruiters say 75 percent of senior management candidates
and 88 percent of middle managers raised concerns about balancing
work and home. Top issues:

Source: Association of Executive Search

Consultants (member survey). Used with
permission of the Association of Executive
Search Consultants, http://www.aesc.org.

2005 by Nelson, a division of

Figure 1.8
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Belcourt et al. 4th edition

Partnerships: Line Managers and

Human Resources Managers
Responsibilities of HR
Advice and counsel
Service
Policy formulation and
implementation
Employee advocacy

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Strategic Human Resources

Management
Strategy

The formulation of an organizations missions, goals,

and objective as well as the action plans to execute
the strategy.
Corporate Strategy
Business Strategy

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Belcourt et al. 4th edition

Strategic Human Resources

Management
Strategic HRM
A set of interrelated
practices, policies, and
philosophies whose
goal is to enable the
achievement of the
corporate or business
strategy.

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Human
Resource
Competency
Model

HRHR
Mastery
Mastery

Business
Business
Mastery
Mastery
Business
acumen

Business
acumen
Customer
orientation
Customer
orientation
External
Relations
External Relations

Personal
Credibility
Trust

Change

Change
Personal
Mastery
Mastery
relationships
Staffing
Interpersonal
skills
Staffing

Interpersonal
skills
Lived values
Performance
appraisal
and
influence
Performance appraisal Courage
and influence
Rewards

system
Problem-solving
Rewards system
Problem-solvingskills
skills
Communication
Rewards
Communication
Rewardssystem
system
Organization
Innovation
design
creativity
Organization
Innovationand
design
and creativity

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.

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Presentation Slide 14
Figure 1.9

137