challenges of hrm
TRANSCRIPT
PowerPoint Presentation by Charlie Cook and adapted by Monica Belcourt.
Managing Human Resources,4th Canadian Edition
Belcourt et al.
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© 2005 by Nelson, a division of Thomson Canada Limited. 1–2
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 organization’s 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
COMPETITIVECOMPETITIVECHALLENGESCHALLENGES
• GlobalizationGlobalization• TechnologyTechnology• Managing changeManaging change• Human capitalHuman capital• ResponsivenessResponsiveness• Cost containmentCost containment
HUMAN HUMAN RESOURCESRESOURCES
• PlanningPlanning• RecruitmentRecruitment• StaffingStaffing• Job designJob design•Training/developmentTraining/development• AppraisalAppraisal• CommunicationsCommunications• CompensationCompensation• BenefitsBenefits• Labour relationsLabour relations
EMPLOYEEEMPLOYEECONCERNSCONCERNS
• Background diversityBackground diversity• Age distributionAge distribution• Gender issuesGender issues• Educational levelsEducational levels• Employee rightsEmployee rights• Privacy issuesPrivacy issues• Work attitudesWork attitudes• Family concernsFamily concerns
Figure 1.1
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Competitive Challenges and Human Resources Management• The most pressing competitive issues facing
firms:Going globalEmbracing technologyManaging changeDeveloping human capital Responding to the market Containing costs
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Going Global• Globalization
The trend toward opening up foreign markets to international trade and investment.
• Impact of GlobalizationPartnerships with foreign firms “Anything, anywhere, anytime” marketsLower trade and tariff barriers
NAFTA, EU, APEC trade agreements WTO and GATT
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Going Global (cont’d)• 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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Major Uses ForHR Information
Systems
Source: HR and Technology Survey, Deloitte & Touche and Lawson Software, 1998.
HRM 1
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Impact of IT on HRM
TransformationalTransformationalImpactImpact
OperationalOperationalImpactImpact
RelationalRelationalImpactImpact
HRMHRM
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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
• 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 performanceProactive 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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Managing Change through HR• Why Change Efforts Fail:
1. Not establishing a sense of urgency.2. Not creating a powerful coalition to guide the effort.3. Lacking leaders who have a vision.4. Lacking leaders who communicate the vision.5. Not removing obstacles to the new vision.6. Not systematically planning for and creating short-
term “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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Human Capital and HRM
• Creation of knowledge• Utilization of knowledge• Application of
knowledge
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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 SigmaA process used to translate customer needs into a set
of optimal tasks that are performed in concert with one another.
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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 UpsizingPercent of companies reporting that they:
*All annual readings are for 12 months ending at midyear. Categories are not mutually exclusive.
Source: Gene Koretz, “Hire Math: Fire 3, Add 5,” Business Week Online (March 13, 2000). Figure 1.2
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Containing Costs (cont’d)• Hidden Costs of Layoff
Severance and rehiring costsAccrued vacation and sick day payoutsPension and benefit payoffsPotential lawsuits from aggrieved workersLoss of institutional memory and trust in managementLack of staffers when the economy reboundsSurvivors who are risk-averse, paranoid, and political
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Containing Costs (cont’d)• Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforceHigher customer satisfactionReadiness to snap back with the economyA recruiting edgeWorkers who aren’t 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 LeasingThe process of dismissing employees who are then
hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.
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Productivity Enhancements
Figure 1.3Presentation Slide 1–2
MOTIVATIONMOTIVATION• Job enrichmentJob enrichment• PromotionsPromotions• CoachingCoaching• FeedbackFeedback• RewardsRewards
ENVIRONMENTENVIRONMENT• Empowerment Empowerment • TeamsTeams• Leader supportLeader support• CultureCulture
ABILITYABILITY• RecruitmentRecruitment• Selection Selection • TrainingTraining• DevelopmentDevelopment
Perf = Perf = f f (A,M,E)(A,M,E)
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Traditional HR Function• Reactive• Collecting HR data• Responding to goals and
objectives set by executives• Complying with laws,
policies, and procedures• Administering employees
benefits programs• Designing training programs• Staffing
• Applying compensation plans
Emerging HR practice• Proactive• Measuring HR with metrics• Setting strategic HR goals
and objectives• Developing and revising
policies and procedures• Evaluating benefits
strategically• Identifying training needs• HR planning and linking
with external staffing needs• Developing compensation
plans
HRM shifts from operational to strategic
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Demographic and Employee Concerns
• The Diversity Challenge
HRM 4
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Age Distribution
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Gender Distribution
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Rising levels of education
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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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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.
Figure 1.8
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Partnerships: Line Managers and Human Resources Managers• Responsibilities of HR
Advice and counselServicePolicy formulation and
implementationEmployee advocacy
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Strategic Human Resources Management• Strategy
The formulation of an organization’s missions, goals, and objective as well as the action plans to execute the strategy.
Corporate StrategyBusiness Strategy
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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
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. Figure 1.9
Presentation Slide 1–4
BusinessBusinessMasteryMastery
• Business acumenBusiness acumen• Customer orientationCustomer orientation
• External RelationsExternal Relations
HRHRMasteryMastery• StaffingStaffing
• Performance appraisalPerformance appraisal• Rewards systemRewards system• CommunicationCommunication
• Organization designOrganization design
ChangeChangeMasteryMastery
• Interpersonal skillsInterpersonal skillsand influenceand influence
• Problem-solving skillsProblem-solving skills• Rewards systemRewards system
• Innovation and creativityInnovation and creativity
Personal Personal CredibilityCredibility
• TrustTrust• Personal Personal
relationshipsrelationships• Lived valuesLived values
• CourageCourage