UNIT 1
THE WORLD OF
HUMAN RESOURCES
MANAGEMENT
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LEARNING OUTCOMES
Explain how human resources managers
and other managers can have rewarding
careers.
Explain how good human resources practices
can help a firm’s globalization, corporate social
responsibility, and sustainability efforts.
Describe how technology can improve how
people perform their work
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LEARNING OUTCOMES
Explain the dual roles human resource
managers have in terms of increasing
productivity and controlling costs.
Discuss how firms can leverage employee
differences to their strategic advantage
Provide examples of the roles and competencies
of today’s human resources professionals.
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Module 1
WHY STUDY
HUMAN
RESOURCES
MANAGEMENT?
• Human Resources Management
(HRM)
• The process of managing human
talent to achieve an organization’s
objectives
• Why Study HRM?
•
Great business plans, products, and
services can easily be copied by
your competitors. Great personnel
cannot.
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To have your employees not
doing their jobs
To have your company cited
for unsafe practices
To hire the wrong person for
the job
To let the lack of training
undermine your department`s
effectiveness
To experience higher turnover
To commit any unfair labour
practices
To have your company in
courts
Why study HRM?
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HUMAN CAPITAL AND HRM
Words to describe how important people are to
organizations:
•
•
•
•
Human Capital
Human Resources
Intellectual Assets
Talent Management
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HUMAN CAPITAL AND HRM (CONT’D)
Human
Capital
Valuable
• Knowledge, skills, and capabilities of
individuals that have economic value to an
organization
• Intangible
• Cannot be managed the way organizations
manage jobs, products, and technologies
• Capital is based on company-specific skills
• Gained through long-term experience
• Can be expanded through development
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Module 2
OVERALL FRAMEWORK FOR HUMAN
RESOURCE MANAGEMENT
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COMPETITIVE ISSUES AND
HUMAN RESOURCES MANAGEMENT
Issue 1:
Issue 2:
Issue 3:
Responding Strategically
to Changes and
Disruptions in the Local
and Global Marketplace
Setting and Achieving
Corporate Social
Responsibility and
Sustainability Goals
Advancing HRM with
Technology
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COMPETITIVE ISSUES AND
HUMAN RESOURCES MANAGEMENT
(CONT’D)
Issue 4:
Issue 5:
Issue 6:
Containing Costs While
Retaining Top Talent
and Maximizing
Productivity
Responding to the
Demographic and
Diversity
Challenges of the
Workforce
Adapting to Educational
and Cultural Shifts
Affecting the Workforce
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Module 3
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ISSUE 1: RESPONDING
STRATEGICALLY TO CHANGES AND
DISRUPTIONS IN THE LOCAL AND
GLOBAL MARKETPLACE
HR Managers and Business
Strategy
From administrative tasks to
strategic partners
Human resources managers need
an intimate understanding of their
firm’s competitive business
operations and strategies.
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ISSUE 1: RESPONDING STRATEGICALLY TO CHANGES AND
DISRUPTIONS IN THE LOCAL AND GLOBAL MARKETPLACE
(CONT’D)
HR Managers Needs to Understand
TQM
Six Sigma
Reengineering
A set of principles
A set of principles
The fundamental
and practices whose and practices whose rethinking
and radical
core ideas include
core ideas include
redesign of business
understanding
understanding
to achieve
customer needs, doing customer needs, doing processes
dramatic
things right the first
things right the first improvements in cost,
time, and striving for time, and striving for quality, service, and
continuous
continuous
speed
improvement.
improvement
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ISSUE 1: RESPONDING STRATEGICALLY TO CHANGES AND
DISRUPTIONS IN THE LOCAL AND GLOBAL MARKETPLACE
(CONT’D)
Change Management
­ Systematic way of bringing about and managing organizational
changes and changes on the
individual level
Reactive Changes: Changes that
occur after external forces have
already affected performance
Proactive Change: Change
initiated to take advantage of
targeted opportunities
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ISSUE 1: RESPONDING
STRATEGICALLY TO CHANGES AND
DISRUPTIONS IN THE LOCAL AND
GLOBAL MARKETPLACE (CONT’D)
Competing, Recruiting and Staffing
Globally
Globalization: The trend to opening up
foreign markets to international trade and
investment
Impact of Globalization
“Anything, anytime, anywhere” markets
Partnerships with foreign firms
Lower trade and tariff barriers
HRM
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Module 4
ISSUE 2: SETTING AND
ACHIEVING CORPORATE
SOCIAL RESPONSIBILITY AND
SUSTAINABILITY GOALS
Corporate Social Responsibility
The responsibility of the firm to act in
the best interests of the people and
communities affected by its activities
Sustainability is closely related to
corporate social responsibility:
­ Doing business in a way that does as
little harm to the environment and
depletes as few natural resources as
possible
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Module 5
Issue 3:
Advancing HRM
with Technology
Collaborative software allows workers anywhere,
anytime to interface and share information with one
another
From Touch Labour to Knowledge Workers
­ Knowledge Workers: Workers whose
responsibilities extend beyond the physical
execution of work to include planning, decision
making, and problem solving
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Issue 3: Advancing HRM with Technology (cont’d)
Human Resources Information System (HRIS)
A computerized system that provides current and
accurate data for purposes of control and decision
making
Workforce analytics is the process of gathering and
analyzing data to improve a firm’s human resources
management.
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Issue 3: Advancing HRM with Technology (cont’d)
Operational
Relational
Transformational
• Automation of routine
tasks, lower
administrative costs,
increased productivity,
and faster response
times; self-service
access to information
and training for
managers and
employees
• Online recruiting,
screening, and
pretesting
of applicants
• Training, tracking, and
selecting employees
based on their record
of skills and abilities;
organization-wide
alignment of
“cascading” goals
Impact of Technology on HRM
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Module 6
ISSUE 4: CONTAINING COSTS WHILE RETAINING TOP
TALENT AND MAXIMIZING PRODUCTIVITY
Carefully
managing
employees’
benefits
Employee
Furloughing and
Leasing
Offshoring,
Nearshoring,
Homeshoring
Ways
to reduce
labour costs
Downsizing
Outsourcing
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Hidden Costs of a Layoff:
ISSUE 4:
CONTAINING
COSTS WHILE
RETAINING TOP
TALENT AND
MAXIMIZING
PRODUCTIVITY
(CONT’D)
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, paranoid, and
political
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ISSUE 4:
CONTAINING
COSTS WHILE
RETAINING TOP
TALENT AND
MAXIMIZING
PRODUCTIVITY
(CONT’D)
Benefits of a No-Layoff
Policy:
A fiercely loyal, more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who aren’t afraid to innovate,
knowing their jobs are safe
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Furloughing
ISSUE 4:
CONTAINING
COSTS WHILE
RETAINING TOP
TALENT AND
MAXIMIZING
PRODUCTIVITY
(CONT’D)
­ A situation in which an organization asks or requires
employees to take time off for either no pay or
reduced pay
Outsourcing
­ Contracting outside the organization to have work
done that formerly was done by internal employees
Offshoring (Global Sourcing)
­ Business practice of sending jobs to other countries
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
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Module 7
ISSUE 5: RESPONDING TO
THE DEMOGRAPHIC AND
DIVERSITY CHALLENGES OF
THE WORKFORCE
In a recent survey, almost half of
the organizations surveyed
reported that the biggest
investment challenge facing them
over the next 10 years is
obtaining human capital and
optimizing their human capital
investments.
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Diversity
Challenge
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ISSUE 5: RESPONDING TO THE DEMOGRAPHIC
AND DIVERSITY CHALLENGES OF THE WORKFORCE
(CONT’D)
Demographic Changes
•More diverse workforce
•Aging workforce
•Gender distribution
Managing Diversity
• Being aware of
characteristics common
to employees, while also
managing employees
as individuals
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Module 8
ISSUE 6: ADAPTING TO
EDUCATIONAL AND CULTURAL
SHIFTS AFFECTING THE
WORKFORCE
Cultural and
societal changes
affecting the
workforce
Education of the
workforce
Changing nature
of work
Privacy concerns
of employees
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Module 8
ISSUE 6: ADAPTING TO EDUCATIONAL
AND CULTURAL SHIFTS AFFECTING THE
WORKFORCE (CONT’D)
Changing attitudes toward work
Employee rights
Balancing work and family
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Module 9
THE PARTNERSHIP OF
LINE MANAGERS AND HUMAN
RESOURCES DEPARTMENTS
Successful organizations
combine the experience
of line managers with
the expertise of HR
managers to develop
and utilize the talents
of employees to their
greatest potential.
There are different
types of human
resources managers
who specialize in
different HR functions.
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HR MANAGER
RESPONSIBILITIES
•Advice and Counsel
•Service
•Policy formulation
and implementation
•Employee
Advocacy
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Thank you!
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