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Managing Human Resources
Belcourt * Bohlander * Snell
Copyright © 2008 by Nelson, a division of Thomson Canada Limited. All rights reserved.
5th Canadian edition
PowerPoint Presentation by Monica Belcourt, York University and Charlie Cook, The University of West Alabama
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 HR’s role in developing intellectual capital. 6. Differentiate how TQM and reengineering influence HR systems.
Copyright © 2008 by Nelson, a division of Thomson Canada Ltd. 1–2
8.Objectives (cont’d) After studying this chapter. 9. you should be able to: 7. Provide examples of the roles and competencies of today’s HR managers. Copyright © 2008 by Nelson. 1–3 . a division of Thomson Canada Ltd. Discuss the impact of cost pressures on HR policies. Discuss the primary demographic and employee concerns pertaining to HRM.
Copyright © 2008 by Nelson.Why Study Human Resources Management • Human Resources Management (HRM) The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives. designing jobs and teams. a division of Thomson Canada Ltd. developing skillful employees. identifying approaches for improving their performance. • ―Why Study HRM?‖ Staffing the organization. and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department. 1–4 .
a division of Thomson Canada Ltd. • 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 Copyright © 2008 by Nelson.Competitive Advantage through People • Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. 1–5 .
Overall Framework for Human Resource Management Figure 1. a division of Thomson Canada Ltd. 1–6 .2 Copyright © 2008 by Nelson.
1–7 . or human capital 5. Embracing new technology 3.Competitive Challenges and Human Resources Management • The most pressing competitive issues facing firms: 1. Going global 2. Managing talent. Containing costs Copyright © 2008 by Nelson. a division of Thomson Canada Ltd. Responding to the market 6. Managing change 4.
anywhere.Challenge 1: Going Global • Globalization The trend toward opening up foreign markets to international trade and investment • Impact of globalization ―Anything. a division of Thomson Canada Ltd. anytime‖ markets Partnerships with foreign firms Lower trade and tariff barriers Copyright © 2008 by Nelson. 1–8 .
laws. and business practices Issues: Identifying capable managers and workers Developing foreign culture and work practice training programs.Challenge 1: Going Global (cont’d) • 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. 1–9 . cultures. a division of Thomson Canada Ltd. Adjusting compensation plans for overseas work Copyright © 2008 by Nelson.
decision making. • Knowledge-Based Training Online instruction “Just-in-time” learning via the Internet on company intranets Copyright © 2008 by Nelson.Challenge 2: Embracing New Technology • Knowledge Workers Workers whose responsibilities extend beyond the physical execution of work to include planning. a division of Thomson Canada Ltd. and problem solving. 1–10 .
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. Lower administrative costs. increased productivity and response times. Institutionalization of organizational knowledge. Combine and reconfigure data to create new information. Copyright © 2008 by Nelson. a division of Thomson Canada Ltd. 1–11 . Benefits: Store and retrieve of large quantities of data. Easier communications.
. 4–5 (May 2004). no.4 39.1 41.1 31.7% 57.8 Source: ―How HR Managers Use Technology Applications to Control HR Department Costs.6 24.2 1–12 Copyright © 2008 by Nelson.‖ Human Resource Department Management Report. Highlights 1.0 Other 3.1 Personnel administration Training and development Employee self-service Manager self-service 39.8 18.Highlights in HRM Most Common HR Information Systems Applications Payroll Benefits administration Benefits enrollment Recruiting—applicant tracking 76. a division of Thomson Canada Ltd.
HRM IT Investment Factors • Fit of the application to the firm’s employee base. • Time required to implement and train staff members to use HRIS • Initial and annual maintenance costs • Ability to upgrade • Increased efficiency and time savings • Compatibility with current systems • Availability of technical support • Training time required for HR and payroll Copyright © 2008 by Nelson. 1–13 . a division of Thomson Canada Ltd.
1–14 .Challenge 3: Managing Change • Types of Change Reactive change Change that occurs after external forces have already affected performance Change initiated to take advantage of targeted opportunities Proactive change • Managing Change through HR Formal change management programs help to keep employees focused on the success of the business. a division of Thomson Canada Ltd. Copyright © 2008 by Nelson.
4. Lacking leaders who communicate the vision. 2. 6. Copyright © 2008 by Nelson.Challenge 3: Managing Change (cont’d) • Why Change Efforts Fail: 1. Lacking leaders who have a vision. 3. a division of Thomson Canada Ltd. Not systematically planning for and creating shortterm ―wins. Not creating a powerful coalition to guide the effort. Declaring victory too soon.‖ 7. Not anchoring changes in the corporate culture. Not removing obstacles to the new vision. 8. 5. Not establishing a sense of urgency. 1–15 .
Challenge 4: Managing Talent. is gained through long-term experience. 1–16 . and capabilities of individuals that have economic value to an organization. a division of Thomson Canada Ltd. can be expanded through development. or Human Capital • Human Capital The knowledge. skills. Copyright © 2008 by Nelson. Valuable because capital: is based on company-specific skills.
doing things right the first time. Copyright © 2008 by Nelson. • Six Sigma A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. and striving for continuous improvement.Challenge 5: Responding to the Market • Total Quality Management (TQM) A set of principles and practices whose core ideas include understanding customer needs. 1–17 . a division of Thomson Canada Ltd.
and speed. Requires that administrative systems be reviewed and modified. quality.Challenge 5: Responding to the Market (cont’d) • Reengineering and HRM Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost. Depends on effective leadership and communication processes. 1–18 . Requires that managers create an environment for change. a division of Thomson Canada Ltd. Copyright © 2008 by Nelson. service.
Copyright © 2008 by Nelson. • Offshoring The business practice of sending jobs to other countries. a division of Thomson Canada Ltd. 1–19 . Layoffs • Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees.Challenge 6: Containing Costs • Downsizing The planned elimination of jobs (―head count‖).
Copyright © 2008 by Nelson.Challenge 6: Containing Costs (cont’d) • 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. a division of Thomson Canada Ltd. 1–20 .
a division of Thomson Canada Ltd. and political Copyright © 2008 by Nelson. paranoid. 1–21 .Challenge 6: Containing Costs (cont’d) • 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.
knowing their jobs are safe Copyright © 2008 by Nelson.more productive workforce Higher customer satisfaction Readiness to snap back with the economy A recruiting edge Workers who aren’t afraid to innovate. a division of Thomson Canada Ltd.Challenge 6: Containing Costs (cont’d) • Benefits of a No-Layoff Policy A fiercely loyal. 1–22 .
a division of Thomson Canada Ltd.3 Copyright © 2008 by Nelson. 1–23 .Productivity Enhancements Figure 1.
3 Copyright © 2008 by Nelson. a division of Thomson Canada Ltd. 1–24 .Highlights in HRM Highlights 1.
no. Copyright © 2008 by Nelson.5 1–25 . Figure 1.Model of Diversity Management Strategy Source: Reprinted by permission of Sage Publications from ―Managing for Effective Workforce Diversity‖ by Kathleen Iverson from The Cornell Hotel and Restaurant Administration Quarterly 41. a division of Thomson Canada Ltd. 2 (April 2000): 31–38.
no. 1–26 .Highlights in HRM Highlights 1. Inc. 3 (August 1997): 21–31. ―Building a Business Case for Diversity.6 Source: Survey data from Gail Robinson and Kathleen Dechant. a division of Thomson Canada Ltd. Copyright © 2008 by Nelson.‖ Academy of Management Executive 11. permission conveyed through the Copyright Clearance Center.
Cultural Changes Employee Rights Concern for Privacy Cultural Changes Balancing Work and Family Attitudes towards Work Copyright © 2008 by Nelson. 1–27 . a division of Thomson Canada Ltd.
1–28 . Personal credibility Copyright © 2008 by Nelson. Advice and counsel 2. Service 3. a division of Thomson Canada Ltd.Qualities of Human Resources Managers • Responsibilities 1. Business mastery 2. Policy formulation and implementation 4. HR mastery 3. Employee advocacy • Competencies 1. Change mastery 4.
a division of Thomson Canada Ltd.Key Terms • corporate social responsibility • knowledge workers • managing diversity • offshoring • outsourcing • proactive change • reactive change • reengineering • Six Sigma • total quality management (TQM) 1–29 • downsizing • employee leasing • globalization • human capital • human resources information system (HRIS) • human resources management (HRM) Copyright © 2008 by Nelson. .
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