Human Resource Management: Gaining a Competitive Advantage.

Human Resource

Management: Gaining a

Competitive Advantage

The greatest tragedy… is not the destruction of our natural resources, though that tragedy is great. The truly great tragedy is the destruction of our human resources by our failure to fully utilize our abilities, which means that most men and women go to their graves with their music still in them.

Oliver Wendell Holmes; Professor at Harvard, 1809-1894

Introduction• Competitiveness – a company’s ability to maintain and gain market share

• Human resource management – the policies, practices, and systems that influence employees’ behavior, attitudes, and performance

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Human Resource Management Practices

Responsibilities of HR Departments

1. Employment and Recruiting2. Training and Development3. Compensation4. Benefits5. Employee Services6. Employee and Community

Relations7. Personnel Records8. Health and Safety9. Strategic Planning

HR as a Business

with 3 Product

Lines

6 Competencies for the HR Profession

How is the HRM Function Changing?

•As part of its strategic role, one of the key contributions that HR can make is to engage in evidence-based HR.

•Evidence-based HR – demonstrating that human resource practices have a positive influence on the company’s bottom line or key stakeholders.

The HRM Profession

•HR salaries vary depending on education and experience as well as the type of industry

• The primary professional organization for HRM is the Society for Human Resource Management (SHRM)

Competitive Challenges Influencing Human

Resource Management

• Challenge of Sustainability

• The Global challenge• The Technology

challenge

Top 10 Knowledge and skills Expected to increase in

Importance

Concerns with Employee Engagement

Employee engagement - degree to which employees are fully involved in their work and strength of their commitment.

10 Common Themes of Employee Engagement

1. Pride in employer2. Satisfaction with employer3. Satisfaction with the job4. Opportunity to perform challenging work5. Recognition and positive feedback from contributions6. Personal support from manager7. Effort above and beyond the minimum8. Understanding the link between one’s job and the

company’s mission9. Prospects for future growth with the company10.Intention to stay with the company

The Balanced Scorecard• The balanced scorecard

gives managers the opportunity to look at the company from the perspective of internal and external customers, employees and shareholders.

• The balanced scorecard should be used to:–Link human resource

management activities to the company’s business strategy.–Evaluate the extent to which

the human resource function is helping the company’s meet it’s strategic objectives.

The Balanced Scorecard

How do customers see us? What must we excel at? Can we continuously improve and

create value? How do we look to shareholders?

Managing a Diverse Workforce

To successfully manage a diverse workforce, managers must develop a new set of skills including:

Communicate, coach and develop employees from a variety of backgrounds

Provide performance feedback that is based on objective outcomes

Create a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative.

Recognize and respond to generational issues.

4 Principles of Ethical Companies

1. Successful companies, in their relationships with customers, vendors, and clients, emphasize mutual benefits.

2. Employees assume responsibility for the actions of the company.

3. Companies have a sense of purpose or vision the employees value and use in their day-to-day work.

4. They emphasize fairness; another person’s interests count as much as their own.

The Technology Challenge

•Advances in technology have:– changed how and where we work– resulted in high-performance work systems– increased the use of teams to improve customer service and product quality– changed skill requirements– increased working partnerships– led to changes in company structure and reporting relationships

The Technology Challenge

Advances in technology have increased:

• use and availability of Human Resource Information Systems (HRIS)

• use and availability of e-HRM• competitiveness in high performance

work systems

High-Performance Work Systems

Work in Teams- Virtual Teams

Changes in Skill RequirementsWorking in Partnerships.Changes in Company Structure

and Reporting Relationships.Increased Use and Availability of

e-HRM and Human Resource Information Systems.

Good Luck With the Semester!