CHAPTER1-OUTLI

NE

HumanResour
ceManagement
:Gai
ningaCompet
it
iveAdv
ant
age

Competi
ti
veness-r
efer
stoacompany
’sabi
l
ityt
omai
ntai
nandgai
nmar
ketshar
eini
ts
i
ndust
ry.

HumanResour
ceManagement(
HRM)

 ref
erstot
hepol
ici
es,pr
acti
ces,
andsy
stemst
hati
nfl
uenceempl
oyees’
behav
ior
,
att
it
udes,
andperf
ormance.

 r
eff
eredasi
nvol
vi
ng“
peopl
epr
act
ices"

HumanResour
ceManagementPr
act
ices:

 Anal
ysi
sanddesi
gnofwor
k

 HRPl
anni
ng

 Recr
uit
ing

 Sel
ect
ion

 Tr
aini
nganddev
elopment

 Compensat
ion

 Per
for
mancemanagement

 Empl
oyeer
elat
ions

Responsi
bil
it
iesofHRDepar
tment
s:

 Empl
oymentandRecr
uit
ing

 Tr
aini
nganddev
elopment

 Compensat
ion

 Benef
it
s

 Empl
oyeeSer
vices
  Empl
oyeeandCommuni
tyRel
ati
ons

 Per
sonnel
recor
ds

 Heal
thandsaf
ety

 St
rat
egi
cPl
anni
ng

Rol
esofHRDepar
tment
stoPer
for
m:

 St
rat
egi
cPar
tner

 Empl
oyeeAdv
ocat
e

 Admi
nist
rat
iveExper
t

 ChangeAgent

HRasaBusi
nesswi
thThr
eePr
oductLi
nes:

1.Admi
nist
rat
iveSer
vices,
andTr
ansact
ions

 Compensat
ion,
hir
ing,
andst
aff
ing

 Emphasi
zesr
esour
ceef
fi
ciencyandser
vicequal
i
ty

2.Busi
nessPar
tnerSer
vices

 Dev
elopi
ngef
fect
iveHRsy
stemsandhel
pingi
mpl
ementbusi
nesspl
ansandt
alent
management

 Knowi
ngt
hebusi
nessandexer
cisi
ngi
nfl
uence,
probl
em sol
vi
ng.

3.St
rat
egi
cPar
tner

 Cont
ri
but
ingt
obusi
nessst
rat
egybasedonconsi
der
ati
onofhumancapi
tal

 KNowl
edgeofHRandoft
hebusi
ness,
compet
it
ion,
themar
ketandt
hebusi
ness
Sel
f-
ser
vice-r
efer
stogi
vi
ngempl
oyeesonl
i
neaccesst
oinf
ormat
ionaboutHRi
ssues

Out
sour
cing-r
efer
stot
hepr
act
iceofhav
inganot
hercompanypr
ovi
deser
vices

Evi
dence-basedHR-r
efer
stot
hedemonstr
ationthathumanresour
cespr
act
iceshav
ea
posi
ti
veinfl
uenceont
hecompany
’sbot
tom orkeystakehol
der
s

HRorwor
kfor
ceanal
yti
cs-r
efer
stot
hepr
act
iceofusi
ngquant
it
ati
vemet
hodsandsci
ent
if
ic
met
hodst
oanaly
zebi
gdata.

Bigdat a-ref
erstoi
nfor
mationmergedfrom humanresour
cedat
abases,
corpor
atef
inanci
al
statements,employ
eesurv
ey s,
andotherdat
asourcestomakeevi
dence-
basedhuman
resourcedecisi
ons

Soci
etyf
orHumanResour
ceManagement(
SHRM)-pr
imar
ypr
ofessi
onal
organi
zat
ionf
or
HRM

Compet
it
iveChal
lengesI
nfl
uenci
ngHRM:

 TheTechnol
ogyChal
l
enge

 TheGl
obal
Chal
l
enge

 TheChal
l
engeofSust
ainabi
l
ity

Sust
ainabi
li
ty-r
efer
stotheabi
l
ityofacompanyt
osur
viv
eandsucceedi
nady
nami
c
competi
ti
veenvi
ronment
.

Stakehol
ders-ref
erst
oshareholder
s,t
hecommuni t
y,cust
omer
s,andal
lot
herpar
ti
est
hat
haveaninter
esti
nseei
ngthatthecompanysucceeds.

I
ntel
lect
ualcapi
tal-r
efer
stot
hecr
eat
ivi
ty,
product
ivi
ty,
andser
vicepr
ovi
dedbyempl
oyees.

Knowledgewor
kers-areemploy
eeswhocontri
but
etot
hecompanynott
hroughmanual
labor
butt
hroughaspeci
ali
zedbodyofknowl
edge.

Empower ment-meansgi
vi
ngemployeesr
esponsibi
l
ityandaut
hor
it
ytomakedeci
sions
regar
dingal
laspect
sofpr
oductdev
elopmentorcust
omerservi
ce.

Lear
ningOrgani
zati
on-embracesacultur
eofl
i
fel
ongl
ear
ning,
enabl
i
ngal
lempl
oyeest
o
cont
inual
l
yacquir
eandshareknowledge.o
Psychol
ogi
calcront
ract-decscr
ibeswhatanemployeeexpectt
ocont
ri
but
eandwhatt
he
companywil
lprovi
detotheempl oyeef
orthesecont
ri
buti
ons.

Bal
ancedscor
ecar
d:

 gi
vesmanagerst
heopport
uni
tytolookatt
hecompanyfr
om t
heper
spect
iveofi
nter
nal
andext
ernal
cust
omers,
employeesandsharehol
der
s.

 Li
nkhumanr
esour
cemanagementact
ivi
ti
est
othecompany
’sbusi
nessst
rat
egy
.

 Eval
uatetheext
enttowhicht
hehumanr
esour
cef
unct
ioni
shel
pingt
hecompany
’smeet
i
t’
sstrat
egicobj
ecti
ves.

 Measuresofhumanr
esour
cepr
act
icespr
imar
il
yrel
atet
opr
oduct
ivi
ty,
peopl
e,and
pr
ocesses.

TotalQuali
tyManagement(
TQM)-isacompany
-wi
deef
for
ttocont
inuousl
yimpr
ovet
heway
s
peoples,
machines,
andsyst
emsaccompli
shwor
k

Cor
eval
uesofTQM i
ncl
ude:

 desi
gni
ngmet
hodsandpr
ocessest
omeett
heneedsofi
nter
nal
andext
ernal
cust
omer
s

 al
lempl
oyeesr
ecei
vet
rai
ningi
nqual
i
ty

 pr
omot
ionofcooper
ati
onwi
thv
endor
s,suppl
i
ers,
andcust
omer
s

 managementgi
vesf
eedbackonpr
ogr
ess

Mal
colm Bal
dri
geNat i
onalQual
it
yAward-establ
ishedi
n1987topromotequali
tyawar
eness,
t
orecogni
zequali
tyachiev
ements,andt
opubl
i
cizesuccessf
ulqual
i
tyst
rat
egies.

I
SO9000:
2000-qual
i
tyst
andar
dsadopt
edwor
ldwi
de.

SixSi
gmapr ocess-syst
em ofmeasur
ing,
anal
yzi
ng,
impr
ovi
ng,
andcont
rol
l
ingpr
ocessesonce
theymeetquali
tyst
andards.

I
nter
nall
aborf
orce-i
sthel
aborf
orceofcur
rentempl
oyees.

Ext
ernall
abormar
ket-i
ncl
udesper
sonsact
ivel
yseeki
ngempl
oyment
Fi
vemai
nar
easoft
hel
egalenv
ironmenthav
einf
luencedHRM ov
ert
hepast25y
ear
s:

 Equal
empl
oymentoppor
tuni
tyl
egi
slat
ion

 Empl
oyeesaf
etyandheal
th

 Empl
oyeepayandbenef
it
s

 Empl
oyeepr
ivacy

 Jobsecur
it
y

Sarbanes-
Oxl
eyActof2002-setsstr
ictr
ulesforcor
porat
ebehav
iorandset
sheav
yfi
nesf
or
noncompli
ance,
especi
all
yinr
egardstoaccounti
ngpracti
ces.

Offshori
ng-r
efer
stot
heexpor
ti
ngofj
obsf
rom dev
elopedcount
ri
est
olessdev
eloped
countri
es.

Technol
ogy-r
eshapedt
hewaywepl
ay,
planourl
i
ves,
andwher
ewewor
k.

E-commer
ce– busi
nesst
ransact
ionsandr
elat
ionshi
pscanbeconduct
edel
ect
roni
cal
l
y

e-
HRM -t
hepr
ocessi
ngandt
ransmi
ssi
onofdi
git
ali
zedi
nfor
mat
ionusedi
nHRM