Snell bohlander-human resource management chapter 1

Copyright © 2007 Thomson/South-Western.Copyright © 2007 Thomson/South-Western.All rights reserved.All rights reserved.

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Managing Human ResourcesManaging Human ResourcesBohlander Bohlander •• SnellSnell 1414thth edition edition

The Challenge of The Challenge of Human Resources Human Resources ManagementManagement

Human Resource Human Resource ManagementManagementSnell Snell • Bohlander• Bohlander

Copyright © 2007 Thomson South-Western. All rights reserved. 1–2

ObjectivesAfter 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.


Objectives (cont’d)After studying this chapter, you should be able to:

7. Discuss the impact of cost pressures on HR policies.

8. Discuss the primary demographic and employee concerns pertaining to HRM.

9. Provide examples of the roles and competencies of today’s HR managers.


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.

• “Why Study HRM?”Staffing the organization, designing jobs and teams,

developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department.


Competitive Advantage through People• Core Competencies

Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

• 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.


Figure 1Figure 1–1 –1 Overall Framework for Human Resource ManagementOverall Framework for Human Resource Management


Competitive Challenges and Human Resources Management

• The most pressing competitive issues facing firms:

1. Going global

2. Embracing new technology

3. Managing change

4. Managing talent, or human capital

5. Responding to the market

6. Containing costs


Challenge 1: Going Global

• GlobalizationThe trend toward opening up foreign markets to

international trade and investment

• Impact of globalization “Anything, anywhere, anytime” marketsPartnerships with foreign firmsLower trade and tariff barriers

NAFTA, EU, APEC trade agreements WTO and GATT


Challenge 1: Going Global (cont’d)

• Corporate Social ResponsibilityThe responsibility of the firm to act in the best

interests of the people and communities affected by its activities

• Impact on HRMDifferent geographies, cultures, laws, and business

practices Issues:

Identifying capable managers and workers Developing foreign culture and work practice training

programs. Adjusting compensation plans for overseas work


Challenge 2: Embracing New Technology• Knowledge Workers

Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.

• Knowledge-Based Training Online instruction “Just-in-time” learning via the Internet

on company intranets


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.

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, increased productivity and

response times.


Highlights in HRM 2

Source: “How HR Managers Use Technology Applications to Control HR Department Costs,” Human Resource Department Management Report, no. 4–5 (May 2004).

Most Common HR Information Systems Applications

Payroll 76.7%

Benefits administration 57.1

Benefits enrollment 41.4

Recruiting—applicant tracking 39.1

Personnel administration 39.1

Training and development 31.6

Employee self-service 24.8

Manager self-service 18.0

Other 3.8


HRM IT Investment Factors

• Fit of the application to the firm’s employee base.

• Ability to upgrade Increased efficiency and time savings

• Compatibility with current systems

• Availability of technical support

• Time required to implement and train staff members to use HRIS

• Initial and annual maintenance costs

• Training time required for HR and payroll


Challenge 3: Managing Change

• Types of ChangeReactive change

Change that occurs after external forces have already affected performance

Proactive change Change initiated to take advantage of targeted

opportunities

• Managing Change through HRFormal change management programs help to keep

employees focused on the success of the business.


Challenge 3: Managing Change (cont’d)• 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.


Challenge 4: Managing Talent, or Human Capital

• Human CapitalThe knowledge, skills, and capabilities of individuals

that have economic value to an organization.Valuable because capital:

is based on company-specific skills. is gained through long-term experience. can be expanded through development.


Challenge 5: 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.


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, 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.


Challenge 6: Containing Costs

• DownsizingThe planned elimination of jobs (“head count”).Layoffs

• OutsourcingContracting outside the organization to have work

done that formerly was done by internal employees.

• OffshoringThe business practice of sending jobs to other

countries.


Figure 1Figure 1–2 –2 Estimated Number and Types of U.S. Jobs Moving Offshore by 2015Estimated Number and Types of U.S. Jobs Moving Offshore by 2015

Source: Near-Term Growth of Offshoring Accelerating, Forester Research, Inc., May 2004.


Challenge 6: Containing Costs (cont’d)

• 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.



• Hidden Costs of LayoffSeverance 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, paranoid, and political



• Benefits of a No-Layoff PolicyA 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.


Figure 1Figure 1–4 –4 Productivity EnhancementsProductivity Enhancements


Figure 1Figure 1–5 –5 Growth of the U.S. Minority PopulationGrowth of the U.S. Minority Population

Source: U.S. Census Bureau


Figure 1Figure 1–6 –6 Labor Force and Gender DistributionsLabor Force and Gender Distributions

LABOR FORCE PARTICIPATION RATE BY SEX, PROJECTED 1950–2012 Continuing a historical trend, the labor force participation rate for men will decline as the rate for women increases.

LABOR FORCE GROWTH BY SEX, PROJECTED 2002–2012The number of women in the labor force is expected to grow at a higher rate than that for men.

Source: U.S. Department of Labor


Figure 1Figure 1–7 –7 Education PaysEducation Pays

Source: U.S. Department of Labor


Highlights in HRM 5

Source: Survey data from Gail Robinson and Kathleen Dechant, “Building a Business Case for Diversity,” Academy of Management Executive 11, no. 3 (August 1997): 21–31; permission conveyed through the Copyright Clearance Center, Inc.


Cultural Changes

Cultural Cultural ChangesChanges

Cultural Cultural ChangesChanges

Employee Employee RightsRights

Employee Employee RightsRights

Concern for Concern for PrivacyPrivacy

Concern for Concern for PrivacyPrivacy

Attitudes Attitudes towards Worktowards Work

Attitudes Attitudes towards Worktowards Work

Balancing Work Balancing Work and Familyand Family

Balancing Work Balancing Work and Familyand Family

Snell bohlander-human resource management chapter 1

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