1

Chapter 1 numan kesource Management Ga|n|ng a Compet|t|ve Advantage

1lntroduction
Compet|t|veness refers Lo a company's ablllLy Lo malnLaln and galn markeL share ln lLs lndusLry CompeLlLlveness ls
relaLed Lo company effecLlveness whlch ls deLermlned by wheLher Lhe company saLlsfles Lhe needs of sLakeholders
(groups affecLed by buslness pracLlces) lmporLanL sLakeholders lnclude sLockholders who wanL a reLurn on Lhelr
lnvesLmenL cusLomers who wanL a hlghquallLy producL or servlce and employees who deslre lnLeresLlng work and
reasonable compensaLlon for Lhelr servlces
numan resource management refers Lo Lhe pollcles pracLlces and sysLems LhaL lnfluence employees' behavlor
aLLlLudes and performance (Many companles refer Lo P8M as lnvolvlng people pracLlces)
llgure 11 emphaslzes LhaL Lhere are several lmporLanL P8M pracLlces 1he sLraLegy underlylng Lhese pracLlces needs Lo
be consldered Lo maxlmlze Lhelr lnfluence on company performance As Lhe flgure shows P8M pracLlces lnclude
analyzlng and deslgnlng work deLermlnlng human resource needs (P8 plannlng) aLLracLlng poLenLlal employees
(recrulLlng) chooslng employees (selecLlon) Leachlng employees how Lo perform Lhelr [obs and preparlng Lhem for Lhe
fuLure (Lralnlng and developmenL) rewardlng employees (compensaLlon) evaluaLlng Lhelr performance (performance
managemenL) and creaLlng a poslLlve work envlronmenL (employee relaLlons)

I|gure 11 human resource management pract|ces
whot responsibi/ities ond ro/es do nk deportments perform ?
1he P8 deparLmenL ls solely responslble for ouLplacemenL labor law compllance record keeplng LesLlng
unemploymenL compensaLlon and some aspecLs of beneflLs admlnlsLraLlon 1he P8 deparLmenL ls mosL llkely Lo
collaboraLe wlLh oLher company funcLlons on employmenL lnLervlewlng performance managemenL and dlsclpllne and
efforLs Lo lmprove quallLy and producLlvlLy Large companles are more llkely Lhan small ones Lo employ P8 speclallsLs
wlLh beneflLs speclallsLs belng Lhe mosL prevalenL CLher common speclallzaLlons lnclude recrulLmenL compensaLlon
and Lralnlng and developmenL Many dlfferenL roles and responslblllLles can be performed by Lhe P8 deparLmenL
dependlng on Lhe slze of Lhe company Lhe characLerlsLlcs of Lhe workforce Lhe lndusLry and Lhe value sysLem of
company managemenL




kespons|b|||t|es of nk Departments
1 mploymenL and 8ecrulLlng
1ralnlng and uevelopmenL
3 CompensaLlon
4 8eneflLs
3 mployee Servlces
6 mployee and CommunlLy 8elaLlons
7 ersonnel 8ecords
8 PealLh and SafeLy
9 SLraLeglc lannlng

nk as a 8us|ness w|th 3 roduct L|nes





1he newer P8 producLsbuslness parLner servlces and Lhe sLraLeglc parLner roleare Lhe P8 funcLlons LhaL are belng
challenged by Lop managers Lo dellver Cne way Lo Lhlnk Lhe roles and responslblllLles of P8 deparLmenL ls Lo conslder
P8 as a buslness wlLhln Lhe company wlLh Lhree producL llnes
1 Adm|n|strat|ve Serv|ces and 1ransact|ons CompensaLlon hlrlng and sLafflng - mphasls 8esource efflclency
and servlce quallLy
2 8us|ness artner Serv|ces ueveloplng effecLlve P8 sysLems and helplng lmplemenL buslness plans LalenL
managemenL - mphasls knowlng Lhe buslness and exerclslng lnfluenceproblem solvlng deslgnlng effecLlve sysLems
Lo ensure needed compeLencles
3 Strateg|c artner ConLrlbuLlng Lo buslness sLraLegy based on conslderaLlons of human caplLal buslness capablllLles
readlness and developlng P8 pracLlces as sLraLeglc dlfferenLlaLors
- mphasls knowledge of P8 and of Lhe buslness compeLlLlon Lhe markeL and buslness sLraLegles
whot competencies do nk professiono/s need?
llgure 13 shows Lhe slx compeLencles LhaL are needed for Lhe P8 professlon
8us|ness artner
Serv|ces
Strateg|c artner

Adm|n|strat|ve Serv|ces
and 1ransact|ons
numan resources
3

1Credlble acLlvlsL dellvers resulLs wlLh lnLegrlLy shares lnformaLlon bullds LrusLlng relaLlonshlps and lnfluences oLhers
provldlng candld observaLlon Laklng approprlaLe rlsks
CulLural sLeward faclllLaLes change develops and values Lhe culLure and helps employees navlgaLe Lhe culLure
31alenL manager/organlzaLlonal deslgner develop LalenL deslgn reward sysLems and shapes Lhe organlzaLlon
4SLraLeglc archlLecL recognlzes buslness Lrends and Lhelr lmpacL on Lhe buslness evldencebased P8 and develops
people sLraLegles LhaL conLrlbuLe Lo Lhe buslness sLraLegy
38uslness Ally undersLands how Lhe buslness makes money and Lhe language of Lhe buslness
6CperaLlonal execuLor lmplemenLs workplace pollcles advances P8 Lechnology and admlnlsLers dayLoday work of
malnLalnlng people

Competenc|es for the nk rofess|on
now is the nkM lunction chonqinq?
1he amounL of Llme LhaL Lhe P8M funcLlon devoLes Lo admlnlsLraLlve Lasks ls decreaslng and lLs roles as a sLraLeglc
buslness parLner change agenL and employee advocaLe are lncreaslng
ln shlfLlng Lhe focus from currenL operaLlons Lo sLraLegles for Lhe fuLure and preparlng nonP8 managers Lo develop and
lmplemenL P8 pracLlces P8 managers face Lwo lmporLanL challenges
Se|fserv|ce refers Lo glvlng employees onllne access Lo lnformaLlon abouL P8 lssues
Cutsourc|ng refers Lo Lhe pracLlce of havlng anoLher company provlde servlces
uest|ons Used to Determ|ne If numan kesources Are |ay|ng a Strateg|c ko|e |n the 8us|ness
1 WhaL ls P8 dolng Lo provlde valueadded servlces Lo lnLernal cllenLs?
WhaL can Lhe P8 deparLmenL add Lo Lhe boLLom llne?
3 Pow are you measurlng Lhe effecLlveness of P8?
4 Pow can we relnvesL ln employees?
4

3 WhaL P8 sLraLegy wlll we use Lo geL Lhe buslness from polnL A Lo polnL 8?
6 WhaL makes an employee wanL Lo sLay aL our company?
7 Pow are we golng Lo lnvesL ln P8 so LhaL we have a beLLer P8 deparLmenL Lhan our compeLlLors?
8 lrom an P8 perspecLlve whaL should we be dolng Lo lmprove our markeLplace poslLlon?
9 WhaL's Lhe besL change we can make Lo prepare for Lhe fuLure?
1able 1 provldes several quesLlons LhaL managers can use Lo deLermlne lf P8M ls playlng a sLraLeglc role ln Lhe
buslness lf Lhese quesLlons have noL been consldered
lL ls hlghly unllkely LhaL (1) Lhe company ls prepared Lo deal wlLh compeLlLlve challenges or () human resources are
belng used Lo help a company galn a compeLlLlve advanLage 1he boLLom llne for evaluaLlng Lhe relaLlonshlp beLween
human resource managemenL and Lhe buslness sLraLegy ls Lo conslder Lhls quesLlon WhaL ls P8 dolng Lo ensure LhaL
Lhe rlghL people wlLh Lhe rlghL skllls are dolng Lhe rlghL Lhlngs ln Lhe [obs LhaL are lmporLanL for Lhe execuLlon of Lhe
buslness sLraLegy?" Why have P8M roles changed? Managers see P8M as Lhe mosL lmporLanL lever for companles Lo
galn a compeLlLlve advanLage over boLh domesLlc and forelgn compeLlLors 1he boLLom llne for evaluaLlng Lhe
relaLlonshlp beLween human resource managemenL and Lhe buslness sLraLegy ls Lo conslder Lhls quesLlon WhaL ls P8
dolng Lo ensure LhaL Lhe rlghL people wlLh Lhe rlghL skllls are dolng Lhe rlghL Lhlngs ln Lhe [obs LhaL are lmporLanL for Lhe
execuLlon of Lhe buslness sLraLegy?" Why have P8M roles changed? Managers see P8M as Lhe mosL lmporLanL lever for
companles Lo galn a compeLlLlve advanLage over boLh domesLlc and forelgn compeLlLors P8M pracLlces are dlrecLly
relaLed Lo companles' success ln meeLlng compeLlLlve challenges
now is the nkM lunction chonqinq?
W As parL of lLs sLraLeglc role one of Lhe key conLrlbuLlons LhaL P8 can make ls Lo engage ln evldencebased P8
W v|dencebased nk demonsLraLlng LhaL human resource pracLlces have a poslLlve lnfluence on Lhe company's
boLLom llne or key sLakeholders
1he nkM rofess|on
W P8 salarles vary dependlng on educaLlon and experlence as well as Lhe Lype of lndusLry
1he prlmary professlonal organlzaLlon for P8M ls Lhe Soc|ety for numan kesource Management (SnkM)
competitive cho//enqes lnf/uencinq nkM
1hree compeLlLlve challenges LhaL companles now face wlll lncrease Lhe lmporLance of P8M pracLlces
1 1he Challenge of SusLalnablllLy lncludes provldlng a reLurn Lo shareholders provldlng hlgh quallLy producLs and
servlces and experlences for employees soclal responslblllLy and effecLlvely uslng new work arrangemenLs
1he Clobal Challenge ln order Lo survlve uS companles musL lmprove P8M pracLlces develop global markeLs
and beLLer prepare employees for global asslgnmenLs
3 1he Lechnology challenge wlLh advances ln Lechnology companles musL change employees and managers
work roles creaLe hlgh performance work sysLems and developcommerce and eP8M
@he 5ustoinobi/ity cho//enqe
Susta|nab|||ty refers Lo Lhe ablllLy of a company Lo survlve and succeed ln a dynamlc compeLlLlve envlronmenL
SusLalnablllLy lncludes Lhe ablllLy Lo deal wlLh economlc and soclal changes pracLlce envlronmenLal responslblllLy
3

engage ln responslble and eLhlcal buslness pracLlces provlde hlghquallLy producLs and servlces and puL ln place
meLhods Lo deLermlne lf Lhe company ls meeLlng sLakeholders' needs
Stakeho|ders refers Lo shareholders Lhe communlLy cusLomers and all oLher parLles LhaL have an lnLeresL ln seelng
LhaL Lhe company succeeds
As menLloned before SusLalnablllLy lncludes Lhe ablllLy Lo
provlde a reLurn Lo shareholders
provlde hlghquallLy producLs servlces and work experlences for employees
lncrease value placed on lnLanglble asseLs and human caplLal
soclal responslblllLy
AdapLlng Lo changlng characLerlsLlcs and expecLaLlons of Lhe labor force
Legal and eLhlcal lssues
ffecLlvely use new work arrangemenLs
W 1here are several changes ln Lhe economy LhaL has lmpllcaLlons for P8
lmpacL of SepLember 11 1 companles are spendlng more on securlLy
1he compeLlLlon for labor affecLed by Lhe growLh and decllne of lndusLrles and avallablllLy of number and skllls of
persons
W Also sklll demands for [obs are changlng
W knowledge ls becomlng more valuable
Intang|b|e assets refer Lo a Lype of company asseL lncludlng human caplLal cusLomer caplLal soclal caplLal and
lnLellecLual caplLal
know|edge workers are employees who conLrlbuLe Lo Lhe company noL Lhrough manual labor buL Lhrough a
speclallzed body of knowledge
mpowerment means glvlng employees responslblllLy and auLhorlLy Lo make declslons regardlng all aspecLs of producL
developmenL or cusLomer servlce
A |earn|ng organ|zat|on embraces a culLure of llfelong learnlng enabllng all employees Lo conLlnually acqulre and share
knowledge lmprovemenLs ln producL or servlce quallLy do noL sLop when formal Lralnlng ls compleLed mployees need
Lo have Lhe flnanclal Llme and conLenL resources (courses experlences developmenL opporLunlLles) avallable Lo
lncrease Lhelr knowledge Managers Lake an acLlve role ln ldenLlfylng Lralnlng needs and helplng Lo ensure LhaL
employees use Lralnlng ln Lhelr work Also employees should be acLlvely encouraged Lo share knowledge wlLh
colleagues and oLher work groups across Lhe company uslng emall and Lhe lnLerneL lor a learnlng organlzaLlon Lo be
successful requlres LhaL Leams of employees collaboraLe Lo meeL cusLomer needs Managers need Lo empower
employees Lo share knowledge ldenLlfy problems and make declslons 1hls allows Lhe company Lo conLlnuously
experlmenL and lmprove
Changes ln mploymenL xpecLaLlons 1he need for companles Lo make rapld changes are reshaplng Lhe employmenL
conLracLs
1he psycho|og|ca| contract descrlbes whaL an employee expecLs Lo conLrlbuLe and whaL Lhe company wlll provlde Lo Lhe
employee for Lhese conLrlbuLlons
6

A|ternat|ve work arrangements lnclude lndependenL conLracLors oncall workers Lemporary workers and conLracL
company workers ln Lhe new economy a new Lype of psychologlcal conLracL
ls emerglng 1he compeLlLlve buslness envlronmenL demands frequenL changes ln Lhe quallLy lnnovaLlon creaLlveness
and Llmellness of employee conLrlbuLlons and Lhe skllls needed Lo provlde Lhem 1hls has led Lo company resLrucLurlng
mergers and acqulslLlons layoffs and longer hours for many employees Companles demand excellenL cusLomer servlce
and hlgh producLlvlLy levels mployees are expecLed Lo Lake more responslblllLy for Lhelr own careers from seeklng
Lralnlng Lo balanclng work and famlly ln exchange for Lop performance and worklng longer hours wlLhouL [ob securlLy
employees wanL companles Lo provlde flexlble work schedules comforLable worklng condlLlons more auLonomy ln
accompllshlng work Lralnlng and developmenL opporLunlLles and flnanclal lncenLlves based on how Lhe company
performs
mployees reallze LhaL companles cannoL provlde employmenL securlLy so Lhey wanL employablllLyLhaL ls Lhey wanL
Lhelr company Lo provlde Lralnlng and [ob experlences Lo help ensure LhaL employees can flnd oLher employmenL
opporLunlLles 1he P8M challenge ls how Lo bulld a commlLLed producLlve workforce ln LurbulenL economlc condlLlons
LhaL offer opporLunlLy for flnanclal success buL can also qulckly Lurn sour maklng every employee expendable Learnlng
CrganlzaLlon mployees are conLlnually Lrylng Lo learn new Lhlngs sychologlcal ConLracL xpecLaLlons of mployee
conLrlbuLlons and whaL Lhe company wlll provlde ln reLurn mp|oyee engagement refers to the degree Lo whlch
employees are fully lnvolved ln Lhelr work and Lhe sLrengLh of Lhelr commlLmenL Lo Lhelr [ob and Lhe company
mployees who are engaged ln Lhelr work
and commlLLed Lo Lhe company Lhey work for glve companles compeLlLlve advanLage lncludlng hlgher producLlvlLy
beLLer cusLomer servlce and lower Lurnover
Concerns w|th mp|oyee ngagement
mployees' engagemenL ls lnfluenced by how managers LreaL employees as well as human resource pracLlces such as
recrulLlng selecLlon Lralnlng and developmenL performance managemenL work deslgn and compensaLlon mployees
who are engaged ln Lhelr work and commlLLed Lo Lhe company Lhey work for glve companles compeLlLlve advanLage
lncludlng hlgher producLlvlLy beLLer cusLomer servlce and lower Lurnover Companles measure employees' engagemenL
levels wlLh aLLlLude or oplnlon surveys AlLhough Lhe Lypes of quesLlons asked on Lhese surveys vary from company Lo
company research suggesLs Lhe quesLlons generally measure 1 common Lhemes lllusLraLed ln Lhls sllde
10 Common 1hemes of mp|oyee ngagement
1 rlde ln employer
SaLlsfacLlon wlLh employer
3 SaLlsfacLlon wlLh Lhe [ob
4 CpporLunlLy Lo perform challenglng work
3 8ecognlLlon and poslLlve feedback from conLrlbuLlons
6 ersonal supporL from manager
7 fforL above and beyond Lhe mlnlmum
8 undersLandlng Lhe llnk beLween one's [ob and Lhe company's mlsslon
9 rospecLs for fuLure growLh wlLh Lhe company
1 lnLenLlon Lo sLay wlLh Lhe company
7

@he 8o/onced 5corecord
1he ba|anced scorecard glves managers Lhe opporLunlLy Lo look aL Lhe company from Lhe perspecLlve of lnLernal
and exLernal cusLomers employees and shareholders
1he balanced scorecard should be used Lo
Llnk human resource managemenL acLlvlLles Lo Lhe company's buslness sLraLegy
valuaLe Lhe exLenL Lo whlch Lhe human resource funcLlon ls helplng Lhe company's meeL lL's sLraLeglc
ob[ecLlves
Measures of human resource pracLlces prlmarlly relaLe Lo producLlvlLy people and processes
1o show LhaL P8M acLlvlLles conLrlbuLe Lo a company's compeLlLlve advanLage managers need Lo conslder Lhese
quesLlons and be able Lo ldenLlfy crlLlcal lndlcaLors or meLrlcs relaLed Lo P8 examples
Pow do cusLomers see us?
WhaL musL we excel aL?
Can we conLlnuously lmprove and creaLe value?
Pow do we look Lo shareholders?
Customer Serv|ce and ua||ty
CusLomer excellence requlres aLLenLlon Lo producL and servlce feaLures as well as Lo lnLeracLlons wlLh cusLomers
1ota| ua||ty Management (1CM) ls a companywlde efforL Lo conLlnuously lmprove Lhe ways peoples machlnes
and sysLems accompllsh work
Core values of 1CM lnclude
deslgnlng meLhods and processes Lo meeL Lhe needs of lnLernal and exLernal cusLomers
all employees recelve Lralnlng ln quallLy
promoLlon of cooperaLlon wlLh vendors suppllers and cusLomers
managemenL glves feedback on progress
1he emphasls on quallLy ls seen ln Lhe followlng Ma|co|m 8a|dr|ge Nat|ona| ua||ty Award
esLabllshed ln 1987 Lo promoLe quallLy awareness Lo recognlze quallLy achlevemenLs and Lo publlclze successful
quallLy sLraLegles
ISC 90002000 quallLy sLandards adopLed worldwlde S|x S|gma process SysLem of measurlng Analyzlng lmprovlng
and ConLrolllng processes once Lhey meeL quallLy sLandards
Lean th|nk|ng |s a way to do more w|th |ess effort t|me equ|pment and space buL sLlll provlde cusLomers wlLh
whaL Lhey need and wanL arL of lean Lhlnklng
lncludes Lralnlng workers ln new skllls or how Lo apply old skllls ln new ways so Lhey can qulckly Lake over new
responslblllLles or use new skllls Lo help flll cusLomer orders
sysLem of measurlng analyzlng lmprovlng and conLrolllng processes once Lhey meeL quallLy sLandards
8

chonqinq uemoqrophics workforce uiversity
Interna| |abor force ls Lhe labor force of currenL employees
xterna| |abor market lncludes persons acLlvely seeklng employmenL
1he uS workforce ls aglng rapldly
1he dlverslLy of Lhe workforce ls expecLed Lo lncrease from 6 Lo 16 uue Lo lmmlgraLlon
Aslans and Plspanlcs have been Lhe fasLesL growlng groups ln Lhe labor force slnce
1he heLerogeneous composlLlon of Lhe workforce challenges companles Lo creaLe
P8M pracLlces LhaL ensure LhaL Lhe LalenLs skllls and values of all employees are
fully uLlllzed Lo help dellver hlghquallLy producLs and servlces 8ecause Lhe workforce ls predlcLed Lo become more
dlverse ln Lerms of age eLhnlclLy and raclal background lL ls unllkely LhaL one seL of values wlll characLerlze all
employees Worker performance and learnlng are noL adversely affecLed by aglng ulsabled workers can also be a
source of compeLlLlve advanLage
Monoqinq o uiverse workforce
1o successfully manage a dlverse workforce managers musL develop a new seL of skllls lncludlng
CommunlcaLlng effecLlvely wlLh employees from a wlde varleLy of culLural backgrounds
Coachlng and developlng employees of dlfferenL ages educaLlonal backgrounds eLhnlclLy physlcal ablllLy and race
rovldlng performance feedback LhaL ls based on ob[ecLlve ouLcomes
8ecognlzlng and respondlng Lo generaLlonal lssues
ulverslLy ls lmporLanL for Lapplng all employees' creaLlve culLural and communlcaLlon skllls and uslng Lhose skllls Lo
provlde compeLlLlve advanLage
CreaLlng a work envlronmenL LhaL makes lL comforLable for employees of all backgrounds Lo be creaLlve and
lnnovaLlve
eqo/ ond thico/ lssues
W 1here are flve maln areas of Lhe legal envlronmenL LhaL have lnfluenced P8M over Lhe pasL 3 years
qual employmenL opporLunlLy leglslaLlon
mployee safeLy and healLh
mployee pay and beneflLs
mployee prlvacy
!ob securlLy
W Women and mlnorlLles sLlll face Lhe glass celllng"
W 1he SarbanesCx|ey Act of 2002 seLs sLrlcL rules for corporaLe behavlor and seLs heavy flnes for noncompllance
especlally ln regards Lo accounLlng pracLlces
W th|cs Lhe fundamenLal prlnclples by whlch employees and companles lnLeracL
W Puman resource managers musL saLlsfy Lhree baslc sLandards for Lhelr pracLlces Lo be consldered eLhlcal
9

W P8M pracLlces musL resulL ln Lhe greaLesL good for Lhe largesL number of people
W mploymenL pracLlces musL respecL baslc human rlghLs of prlvacy due process consenL and free speech
W Managers musL LreaL employees and cusLomers equlLably and falrly
W Lhlcal prlnclples should be consldered ln maklng buslness declslons
W and lnLeracLlng wlLh cllenLs and cusLomers
r|nc|p|es of th|ca| Compan|es
1 Successful companles ln Lhelr relaLlonshlps wlLh cusLomers vendors and cllenLs emphaslze muLual beneflLs
mployees assume responslblllLy for Lhe acLlons of Lhe company
3 Companles have a sense of purpose or vlslon Lhe employees value and use ln Lhelr dayLoday work
4 1hey emphaslze falrness anoLher person's lnLeresLs counL as much as Lhelr own
@he 6/obo/ cho//enqe
Companles are flndlng LhaL Lo survlve Lhey musL compeLe ln lnLernaLlonal markeLs as well as fend off forelgn
corporaLlons' aLLempLs Lo galn ground ln Lhe unlLed SLaLes
very buslness musL be prepared Lo deal wlLh Lhe global economy 1hls ls made easler by Lechnology
Cffshor|ng refers Lo Lhe exporLlng of [obs from developed counLrles Lo less developed counLrles
Cnshor|ng refers Lo exporLlng [obs Lo rural parLs of Lhe unlLed SLaLes
@echno/oqy cho//enqe
1echnology has reshaped Lhe way we play plan our llves and where we work
1he overall lmpacL of Lhe lnLerneL
1he lnLerneL has creaLed a new buslness model ecommerce ln whlch buslness LransacLlons and relaLlonshlps can
be conducLed elecLronlcally SevenLynlne
percenL of adulLs approxlmaLely 178 mllllon go onllne spendlng an average of 11 hours a week on Lhe lnLerneL 141
SevenLyLwo percenL access Lhe lnLerneL from home whlle 37 percenL do so from work
Advances ln Lechnology have changed how and where we work
resulLed ln h|ghperformance work systems whlch maxlmlze Lhe flL beLween Lhe company's soclal sysLem and
Lechnlcal sysLem
lncreased Lhe use of Leams Lo lmprove cusLomer servlce and producL quallLy
changed sklll requlremenLs
lncreased worklng parLnershlps
led Lo changes ln company sLrucLure and reporLlng relaLlonshlps
1

1echnology ls pushlng Lhe boundarles of arLlflclal lnLelllgence speech synLhesls wlreless communlcaLlons and
neLworked vlrLual reallLy Advances ln Lechnology have
lncreased Lhe use and avallablllLy of numan kesource Informat|on Systems (P8lS) whlch are used Lo acqulre sLore
manlpulaLe analyze reLrleve and dlsLrlbuLe P8 lnformaLlon
lncreased Lhe use and avallablllLy of enkM whlch ls Lhe processlng and Lransmlsslon of dlglLallzed lnformaLlon used
ln P8M
lncreased Lhe compeLlLlveness ln hlgh performance work sysLems
n|gherformance Work Systems
new Lechnology causes changes ln sklll requlremenLs and work roles and ofLen resulLs ln redeslgnlng work
sLrucLures (eg uslng work Leams) n|ghperformance work
systems max|m|ze the f|t between the company's soc|a| system (emp|oyees) and |ts Lechnlcal sysLem wotk teoms
lovolve employees wlLh varlous skllls who lnLeracL Lo assemble a producL or provlde a servlce Work Leams may
assume many of Lhe acLlvlLles usually reserved for managers lncludlng selecLlng new Leam members schedullng
work and coordlnaLlng acLlvlLles wlLh cusLomers and oLher unlLs ln Lhe company Plghperformance work sysLems
have lmpllcaLlons for employee selecLlon and Lralnlng vlrLual 1eams 1eams LhaL are separaLed by Llme Ceographlc
dlsLance culLure and/or organlzaLlonal 8oundarles and rely excluslvely on Lechnology for lnLeracLlon beLween Leam
members mployees need [obspeclflc knowledge and baslc skllls Lo work wlLh Lhe equlpmenL creaLed wlLh Lhe new
Lechnology 8esldes changlng Lhe way LhaL producLs are bullL or servlces are provlded wlLhln companles Lechnology
has allowed companles Lo form parLnershlps |ectron|c human resource management (enkM) refers to the
process|ng
and Lransmlsslon of dlglLlzed lnformaLlon used ln P8M lncludlng LexL sound and vlsual lmages from one compuLer
or elecLronlc devlce Lo anoLher new Lechnologles and advances ln sofLware lncludlng avaLars collaboraLlve soclal
neLworks and moblle Lechnologles such as personal dlglLal asslsLanLs and lods are lnfluenclng Lralnlng
developmenL work deslgn recrulLlng and oLher aspecLs of P8 wlLh one or more oLher companles
Meetinq competitive cho//enqes @hrouqh nkM Proctices
P8M pracLlces LhaL help companles deal wlLh Lhe four compeLlLlve challenges can be grouped lnLo four dlmenslons
A Managlng Lhe Puman 8esource nvlronmenLP8M pracLlces should be llnked Lo sLraLegy legal compllance musL
be assured and work should be deslgned Lo maxlmlze employee effecLlveness and moLlvaLlon
8 Acqulrlng and reparlng Puman 8esourcesPuman resource plannlng musL occur employees musL be recrulLed
and placed ln approprlaLe [obs meLhods of employee selecLlon musL be deLermlned and ensurlng employees have
skllls Lo perform parLlcular [obs
C AssessmenL and uevelopmenL of Puman 8esources1hls area of P8M deals wlLh measurlng employee
performance preparlng employees for fuLure work roles ldenLlfylng and respondlng Lo employee lnLeresLs and
creaLlng a beneflclal and effecLlve work envlronmenL
u CompensaLlng Puman 8esourcesApproprlaLe pay sysLems musL be developed employee conLrlbuLlons musL be
rewarded and employees musL be provlded wlLh beneflLs
Managlng lnLernal and exLernal envlronmenLal facLors allows employees Lo make Lhe greaLesL posslble conLrlbuLlon
Lo company producLlvlLy and compeLlLlveness
Llnklng P8M pracLlces Lo Lhe company's buslness ob[ecLlvesLhaL ls sLraLeglc human resource managemenL -
nsurlng LhaL P8M pracLlces comply wlLh federal sLaLe and local laws - ueslgnlng work LhaL moLlvaLes and saLlsfles
11

Lhe employee as well as maxlmlzes cusLomer servlce quallLy and producLlvlLy CusLomer needs for new producLs or
servlces lnfluence Lhe number and Lype of employees buslnesses need Lo be successful
Managers need Lo ensure LhaL employees have Lhe necessary skllls Lo perform currenL and fuLure [obs Measurlng
employees' performance
- reparlng employees for fuLure work roles and ldenLlfylng employees' work lnLeresLs goals values and oLher
career lssues
- CreaLlng an employmenL relaLlonshlp and work envlronmenL LhaL beneflLs boLh
8esldes lnLeresLlng work pay and beneflLs are Lhe mosL lmporLanL lncenLlves LhaL companles can offer employees ln
exchange for conLrlbuLlng Lo producLlvlLy quallLy and cusLomer servlce