Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-1 Managing Human Resources Managing Human Resources Bohlander  Snell  Sherman Chapter 1 The Challenge of Human Resources Management

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-2 Chapter 1 Learning Objectives  Identify how firms gain sustainable competitive advantage through people.  Explain how globalization is influencing human resources management.  Describe the impact of information technology on managing people.  Identify the importance of change management.  State HR’s role in developing intellectual capital.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-3 Learning Objectives, cont.  Differentiate how TQM and reengineering influence HR systems.  Discuss the impact of cost pressures on hr policies.  Discuss the primary demographic and employee concerns pertaining to HRM.  Provide examples of the roles and competencies of today’s HR managers.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-4 Criteria for Competitive Advantage through People Combining Core Competencies Through People to Create Competitive Advantage Combining Core Competencies Through People to Create Competitive Advantage VALUE RARE ORGANIZED DIFFICULT TO IMITATE

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-5 Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-6 Presentation Slide 1-1 Overall Framework for HRM COMPETITIVE CHALLENGES globalization technology managing change human capital responsiveness cost containment EMPLOYEE CONCERNS b ackground diversity age distribution gender issues educational levels employee rights privacy issues work attitudes family concerns HUMAN RESOURCES planning recruitment staffing job design training/development appraisal communications compensation benefits labor relations

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-7 Competitive Challenges for HRM Globalization Managing Change Developing Human Capital Cost Containment Market Responsiveness Technology

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-8 Globalization Trend toward opening up foreign markets to international trade and investment

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-9 Knowledge Workers Workers whose responsibilities extend beyond the physical execution of work to include decision making, problem solving, and trouble shooting

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-10 Human Resources Information System (HRIS) Computerized system that provides current and accurate data for purposes of control and decision making

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-11 Reactive Change Change that occurs after external forces have already affected performance

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-12 Proactive Change Change initiated to take advantage of targeted opportunities

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-13 Human Capital The knowledge, skills, and abilities of individuals that have economic value to an organization

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-14 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

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-15 Reengineering Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-16 Downsizing The planned elimination of jobs

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-17 Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-18 Employee Leasing Employees who are hired away by a vendor firm but continue to work in their original jobs

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-19 Top HR Issues for Increasing Employee Productivity Training Controlling Benefits Costs Employee Recruitment and Selection Performance Evaluation Employee Communications Incentive Pay

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-20 Environment empowerment teams leader support culture Environment empowerment teams leader support culture Perf=f(A,M,E) Presentation Slide 1-2 Productivity Enhancements Ability recruitment selection training development Motivation job enrichment promotions coaching feedback rewards

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-21 Managing Diversity Being aware of characteristics common to employees, while also managing employees as individuals

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-22 Social Concerns in HRM Changing Demographics Attitudes toward Work and Family Employer/ Employee Rights

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-23 Value of Higher Education Annual Earnings

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-24 Presentation Slide 1-3 Diversity Rational Poll The primary business reasons for diversity management include… u Better utilization of talent u Increased marketplace understanding u Breadth of understanding in leadership positions u Enhanced creativity u Increased quality of team problem-solving Source: Survey data from Gail Robinson and Kathleen Dechant, “Building a business case for diversity,” The Academy of Management Executive, 11 no3 (Aug 1997): 21-31

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-25 Responsibilities of the HR Manager Advice and Counsel Service Employee Advocacy Policy Formulation and Implementation

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 1-26 Presentation Slide 1-4 Framework for HRM Competencies HR Functional Expertise Managing Change Knowledge of Business Personal Credibility