1/9/2017

HUMAN RESOURCES MANAGEMENT:GAINING A

COMPETITIVE ADVANTAGE

Instructor: LTT Xuân

Content

Instructor: LTT Xuân

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INTRODUCTION
• What is MANAGEMENT?

Instructor: LTT Xuân

INTRODUCTION
• Approaches in managing personnel

Human Resources Management

Relationship Management

Scientific Management

Personnel Administration Management

Managers considers employees as business-partners or hired-

labors? Instructor: LTT Xuân

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INTRODUCTION
• What is HRM?

Competitiveness refers to a company’s

ability to maintain and gain market share in
its industry.
It is related to company effectiveness

Human resource management refers to

the policies, practices, and systems that
influence employees’ behavior, attitudes,
and performance.
Many companies refer to HRM as involving
“people practices”

HRM Practices Company Performance

Instructor: LTT Xuân

INTRODUCTION

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INTRODUCTION

• Customers vs. Employees - Who need to be

satisfied first?

Instructor: LTT Xuân

Companies With Effective HRM:

Employees and customers tend to be more satisfied.

The companies tend to:

 be more innovative
 have greater productivity
 develop a more favorable reputation in the community

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INTRODUCTION
• Differences between HRM and personnel management
– Opinions and philosophy about staffs
– Company’s priority
– Relations between owner and staffs
– Base of productivity and quality
– Rights in issuing personnel policies
– Business orientation
– Relations between business strategy and HRM strategy

Instructor: LTT Xuân

INTRODUCTION
• Similarities between HRM and personnel management???

• But, with:
– Emergence of labour unions
– More women-labours

Instructor: LTT Xuân

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ROLES OF HRM
• Responsibilities of HR Department
Employment and recruiting Interviewing, recruiting, testing, temporary labor coordination

Training & development Orientation, performance management skills training

productivity enhancement
Compensation Wage and salary administration, job descriptions, executive
compensation, incentive pay, job evaluation
Benefits Insurance, vacation leave administration, retirement plans,
profit sharing, stock plans
Employee services Employee assistance programs, relocation services,
outplacement services
Employee and community Attitude surveys, labor relations, publications, labor laws
relations compliance, discipline
Personnel records Information systems, records

Health & safety Safety inspection, drug testing, health, wellness

Strategic planning International human resources, forecasting, planning, mergers

and acquisitions
Instructor: LTT Xuân

ROLES OF HRM
• Roles of HR Department

Strategic Partner

Administrative Human Employee

Expert Resources Advocate

Change Agent

Instructor: LTT Xuân

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ROLES OF HRM
• Cooperation of HR with operating Managers

HR Unit Managers

– Develops legal, effective – Advise HR of job openings

interviewing techniques – Decide whether to do own
– Trains managers in conducting final interviewing
selection interviews – Receive interview training
– Conducts interviews and from HR unit
testing – Do final interviewing and
– Sends top three applicants to hiring where appropriate
managers for final review – Review reference
– Checks references information
– Does final interviewing and – Provide feedback to HR unit
hiring for certain job on hiring/rejection
classifications decisions

Instructor: LTT Xuân

HRM FUNCTIONS

Instructor: LTT Xuân

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HRM FUNCTIONS
• 4 main functions of HRM:

Staffing (hiring people)

Training and development (preparing people)

Motivation (stimulating people)

Maintenance (keeping people)

Instructor: LTT Xuân

HRM FUNCTIONS
• HRM practices:

Analysis and design of work

HR planning – HR needs

Recruiting

Selection

Training and development

Compensation

Performance management

Employee relations

Instructor: LTT Xuân

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HRM FUNCTIONS
• Change of HRM functions

INCREASING INCREASING

INCREASING
DECREASING

Instructor: LTT Xuân

HRM FUNCTIONS

• Change of HRM functions

– Technology
• Self-service: online access to HR information
• Outsourcing: practices provided by another
companies
– HRM in gaining a competitive advantage
– HR practices related to companies’ success in meeting
competitive challenges

How technology affects HRM practices?

Instructor: LTT Xuân

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HRM FUNCTIONS
• Questions used to determine if HR are playing a strategic role in
the business
1. What is HR doing to provide value-added to internal clients?
2. What can the HR department add to the bottom line?
3. How are you measuring the effectiveness of HR?
4. How can you reinvest in employees?
5. What HR strategy will we use to get the business from point A to point
B?
6. What makes an employee want to say at our company?
7. How are you going to invest in HR so that we have a better HR
department than our competitors?
8. From an HR perspective, what should we be doing to improve our
market position?
9. What’s the best change we can make to prepare for the future?
Instructor: LTT Xuân

HRM – GAINING A COMPETITIVE ADVANTAGE

• Challenges facing businesses

The Challenge of
Sustainability

The Global
Challenge

The Technology
Challenge

Instructor: LTT Xuân

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HRM – GAINING A COMPETITIVE ADVANTAGE

• Meeting competitive advantage through HRM practices
– Managing the Human Resource Environment
• Linking HRM practices to the company’s business objectives
• Ensuring that HRM practices comply with laws
• Designing work motivating, satisfying the employees as well as
maximizing customer services, quality, and productivity
– Acquiring and preparing human resources
• Identifying human resource requirements
• Training employees

Instructor: LTT Xuân

HRM – GAINING A COMPETITIVE ADVANTAGE

• Meeting competitive advantage through HRM practices
– Assessment and Development of human resources
• Measuring employees’ performance
• Preparing employees for future work roles and identifying their work
interests, goals, values and other career issues
• Creating an employment relationship and work environment benefiting
both the company and the employee
– Compensating Human Resource
• Creating pay systems
• Rewarding employee contributions
• Providing employees with benefits

Instructor: LTT Xuân

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ETHICS & HR
• What is ethical behavior?
- What “ought” to be done
- Questions to be considered:
1. Does the behavior or result meet all applicable laws, regulations, and
government codes?
2. Does the behavior or result achieved meet all organizational standards
of ethical behavior?
3. Does the behavior or result achieved meet professional standards of
ethical behavior?

Instructor: LTT Xuân

ETHICS & HR
Examples of Ethical Misconduct in HR Activities

Instructor: LTT Xuân

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ETHICS & HR

Human resource managers must satisfy three basic standards

for their practices to be considered ethical:

HRM practices must result in the greatest good for the largest
number of people.

Employment practices must respect basic human rights of privacy,
due process, consent, and free speech.

Managers must treat employees equitably and fairly.

Instructor: LTT Xuân

ESSENTIAL PERSPECTIVES

• HR as core competency of the organization

• HR body as strategic partner
• HR functions as career field
• HR practices follow a flow of employees from IN to OUT of the
organization

Attracting Using & developing Retaining people:

people: people:
Compensation &
Training & Lay off
HR Planning Benefits
development
Job analysis Health, Safety, & Termination
Performance Employee rights
Staffing Retirement
management
Employee
Orientation relations

IN OUT

© 2005 Southwestern College Publishing.

All rights reserved.
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DISCUSSION QUESTION

Imagine that a small manufacturing company decides to

invest in a material recourse planning (MRP) system. This
is a computerised information system that improves
efficiency by automating such work as planning needs for
resources, ordering materials and scheduling work on the
shop floor. The company hope that with the new MRP
system, it can grow by quickly and efficiently processing
small orders for a variety of products.

1/ Which of the human resource functions are

likely to be affected by this change?
2/ How can HRM help the organization carry
out this change successfully?
Instructor: LTT Xuân

GROUP ASSIGNMENT

How to measure HR’s contribution?

-Choose an industry
-Write about metrics which should be used in that
industry and your explanation

Instructor: LTT Xuân

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FOR NEXT CLASS

Review lesson of Environment in Management

Each group select an interesting industry, and find information

about business environment of that selected industry.

Instructor: LTT Xuân

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