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Learning Outcomes
 Explain how human resources managers and other
managers can have rewarding careers by helping their
firms gain a sustainable competitive advantage
through the strategic utilization of people
 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 and are managed
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Learning Outcomes
 Explain the dual goals HR managers have in terms
increasing productivity and controlling costs
 Discuss how firms can leverage employee differences
to their strategic advantage and how educational and
cultural changes in the workforce are affecting how
human resources manager engage employees
 Provide examples of the roles and competencies of
today’s HR managers and their relationship with other
managers
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Human Resource Management
 Process of managing human talent to achieve an
organization’s objectives
 Employees and managers with better understanding of
the firm’s business
 Help achieve its strategies through effective utilization
of people and their talents
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Human Capital and HRM
 Human capital: Knowledge, skills, and capabilities of
individuals that have economic value to an
organization
 Managers should develop strategies for:
 Identifying, recruiting and hiring the best available




talent
Developing employees in firm specific ways
Helping employees generate new ideas and generalize
them throughout the company
Encouraging information sharing
Rewarding collaboration and teamwork
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Figure 1.1 - Overall Framework of
Human Resource Management
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Responding Strategically to Changes in
the Marketplace
 Making adjustments to the labor force via:
 Downsizing: Planned elimination of jobs
 Outsourcing: Hiring outside the company to perform
business processes previously done within the firm
 Offshoring: Sending jobs to other countries
 Adopting cost-cutting strategies
 Enhancing benefit programs
 Improving quality
 Expanding market shares and product lines
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Responding Strategically to Changes in
the Marketplace
 An organization that successfully engineers change:
 Links it to the business strategy
 Shows how it creates quantifiable benefits
 Engages key employees, customers, and suppliers early
 Makes an investment to implement and sustain it
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Competing, Recruiting, and Staffing
Globally
 Companies make it possible for consumers to buy
anything, anytime, anywhere
 Engage in partnerships, mergers, and acquisitions
 Globalization is blurring national identities of
products
 Lower trade barriers with free-trade agreements
 General Agreements on Tariff and Trade (GATT) paved
the way for North American Free Trade Agreement
(NAFTA) and the European Union
 GATT was replaced by the World Trade Organization
(WTO)
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Competing, Recruiting, and Staffing
Globally
 Issues relating to different geographies affect HRM
 Different cultures, employment laws, and business
practices
 Safety of employees and facilities abroad
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Setting and Achieving Corporate Social
Responsibility and Sustainability Goals
 Corporate social responsibility: Responsibility of
firms to act in the best interests of the people and
communities affected by its activities
 Sustainability: Ability to produce goods or services
without damaging the environment and depleting the
world’s resources
 Good reputation for pursuing such efforts can enhance
company revenues and improve their ability to attract
good talent
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Technology Challenges
 Organizations are leveraging information explosion
 Collaborative software: Allows workers to interface
and share information with one another electronically
 Shift from touch labor to knowledge workers
 Knowledge workers: Workers whose responsibilities
extend beyond the physical execution of work to include
planning, decision-making, and problem-solving
 Human resources information system (HRIS)
 Streamlines HR processes, makes information readily
available to managers and employees, and enables HR
departments to focus on the firm’s strategies
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Productivity and Cost Challenges
 Productivity - Output gained from a fixed amount of
inputs
 Can be increased by reducing inputs and adding more
human and physical capital to the process
 Size of workforce should be managed to maximize
productivity and contain costs
 Offshoring
 Outsourcing
 Nearshoring: Bringing jobs closer to domestic
countries
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Productivity and Cost Challenges
 Homeshoring: Outsourcing work to domestic workers
who work out of their homes
 Furloughing: Practice of requiring employees to take
time off for either no pay or reduced pay
 Hiring part-time employees
 Employee leasing: Dismissing employees who are then
hired by a leasing company and contracting with that
company to lease back the employees
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Employee Challenges
 Workforce is increasing in diversity
 Organizations are doing more to address employee
concerns and maximize benefits of different employees
 HR managers should be aware of the educational
abilities of employees in the organization
 Shift of cultural dynamics in labor force are affecting:
 Employee rights and privacy concerns
 Attitudes towards work

Employee engagement: Extent to which employees are
enthused about their work and committed to it
 Efforts to balance work and family
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Role of HR Managers and Their
Partnership with Other Managers
 Responsibilities of HR managers
 Strategic advice and counsel
 Service
 Policy formulation and implementation
 Employee advocacy
 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
 Line managers: Non-HR managers who are responsible
for overseeing the work of other employees
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part.
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Figure 1.7 - Human Resource
Competency Model
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