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Introduction to HRM andGaining Competitive
Advantages
1By Muhammad Afaq Mazhar04/14/12
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After this Lecture what
we will learn
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Introduction What is HRM
Why it is Resource HRM Concept Challenges of HRM Function and role of HR
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IntroductionoThe role of Human Resource
Management is to ensure that acompanys human resources provide acompetitive advantage
o Human Resource managers should be
integrally involved in a companysstrategic management process, theyshould:o have input in strategic plan
o have specific knowledge of strategicgoalso know the employee skills, behaviours
and attitudes needed to supportstrategic plan
o develop programs to ensure employees 3By Muhammad Afaq Mazhar04/14/12
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CONCEPT
o HR as Business Partners
o Organizational Structure in Linewith Business Goals
o Right Man for the Right Job
o Specialized Roles
o Content Workforce
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CHALLENGES
o Competitiono Global Change
o Expectations of Stakeholders
o Access to Technology andInformation
o Resistance to Change
o I Can do it all
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PAKISTANI PERSPECTIVE
o Part of Admin Setup or MereChange of Name
o Vertical Orgonogram
o Personnel, ACRo Colonial Policies & Procedures
o Lack of Organizational
Development
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SPECIALIZED FUNCTIONS
o Organizational Development
o Performance Management
o Career Planning
o Compensation
oTraining & Development
o
Employee Relationso E- Recruitment
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Gaining CompetitiveAdvantage
o Competitiveness refers to acompanys ability to maintain andgain market share in its industry
o It is related to companyeffectiveness
o Human Resource Managementrefers to the policies, practices, andsystems that influence employeesbehavior, attitudes, andperformance
.
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What Roles DoHR Departments Perform?
Administrative
Expert
Change Agent
Strategic Partner
Employee
Advocate
HumanResources
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How is the HRM FunctionChanging?
oThe amount of time that the HRMfunction devotes to administrativetasks is decreasing and its roles as astrategic business partner, changeagent, and employee advocate areincreasing
o In shifting the focus from current
operations to strategies for thefutureand preparing non-HRmanagers to develop and implementHR practices, HR managers face twoimportant challenges:oSelf-service refers to giving
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The HRM Profession
o HR salaries vary depending oneducation and experience as well asthe type of industryoHR specialistsoHR generalistsoCollege degrees are held by the vast
majority of HRM professionalso
Professional certification is lesscommon than membership inprofessional associations
oThe primary professional
organization for HRM is the Society 11By Muhammad Afaq Mazhar04/14/12
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Competitive ChallengesInfluencing HRM
oThreecompetitivechallenges
thatcompaniesnow face willincrease theimportanceof HRMpractices:
The Global
Challenge
The Challenge ofSustainability
The Technology
Challenge 12By Muhammad Afaq Mazhar04/14/12
T S t t
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T e Susta na tyChallenge
o Sustainabilityrefers to the ability of a
company to survive and succeed in adynamic competitive environmento Stakeholders refers to shareholders, the
community, customers, and all other
parties that have an interest in seeingthat the company succeedso Sustainability includes the ability to:
o deal with economic and social changes,
o engage in responsible and ethical businesspractices,
o provide high quality products and services, ando put in place methods to determine if the
company is meeting stakeholders needs 13By Muhammad Afaq Mazhar04/14/12
h i bili
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The SustainabilityChallenge
oThe changing structure of the economyo Impact of September 11, 2001oThe competition for labor
o Skill demands for jobs are changingo
Knowledge is becoming more valuableo Intellectual capital refers to the creativity,productivity, and service provided byemployees
o Knowledge workers are employees who
contribute to the company not through manuallabor but through a specialized body ofknowledge
o Empowerment means giving employees
responsibility and authority to make decisionsre ardin all as ects of roduct develo ment14By Muhammad Afaq Mazhar04/14/12
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The SustainabilityChallenge
o
A learning organization embracesa culture of lifelong learning,enabling all employees to continuallyacquire and share knowledge
oThe psychological contractdescribes what an employee expectsto contribute and what the company
will provide to the employee forthese contributions
o Alternative work arrangements
include independent contractors, on-call workers tem orar workers and15By Muhammad Afaq Mazhar04/14/12
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The Global Challengeo
Companies are finding that to survivethey must compete in internationalmarkets
o Every business must be prepared to
deal with the global economy. This ismade easier by technology.
o Offshoringrefers to the exporting ofjobs from developed countries to lessdeveloped countries.
o Many companies are enteringinternational markets by exporting
their products overseas, building 16By Muhammad Afaq Mazhar04/14/12
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The TechnologyChallengeoTechnology has reshaped
the way we play, plan ourlives, and where we workoThe overall impact of the
Internet
oThe Internet has created a
new business model e-commerce in whichbusiness transactions andrelationships can be
conducted electronically
Th T h l
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The TechnologyChallenge
o Advances in technology have:o changed how and where we work,o resulted in high-performance models of work
systems,o increased the use of teams to improve customer
service and product quality,o changed skill requirements,o increased working partnerships,o led to changes in company structure and reporting
relationships,o increased the availability ofHuman Resource
Information Systems (HRIS), which are used toacquire, store, manipulate, analyze, retrieve, anddistribute HR information,
o increased the availability ofe-HRM, which is the
processing and transmission of digitalized 18By Muhammad Afaq Mazhar04/14/12
M ti C titi
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Meeting CompetitiveChallenges Through HRM
Practiceso HRM practices that helpcompanies deal with thefour competitive
challenges can begrouped into fourdimensionsoThe human resource
environmentoAcquiring and preparing
human resourceso
Assessment anddevelo ment of human
M ti C titi
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Meeting CompetitiveChallenges Through HRM
Practiceso Managing internal and external environmentalfactors allows employees to make the greatestpossible contribution to company productivityand competitiveness
o Customer needs for new products or servicesinfluence the number and type of employeesbusinesses need to be successful
o Besides interesting work, pay and benefits are
the most important incentives that companiescan offer employees in exchange forcontributing to productivity, quality, andcustomer service
o Human resource management practices of
both managers and the human resource 20By Muhammad Afaq Mazhar04/14/12
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Customer Service andQuality Emphasis
o Total Quality Management (TQM) is acompany-wide effort to continuouslyimprove the ways peoples, machines, andsystems accomplish work
o Core values of TQM include:o designing methods and processes to
meet the needs of internal and external
customerso all employees receive training in qualityo promotion of cooperation with vendors,
suppliers, and customers
omanagement gives feedback on 21By Muhammad Afaq Mazhar04/14/12
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Changing DemographicsDiversity of the Workforceo Internal labor force is the labor
force of current employees.o External labor market includes
persons actively seekingemployment.
oThe workforce is becoming
increasingly diverse.oWomenoMinoritiesoDisabled workerso Immigrants form different cities 22By Muhammad Afaq Mazhar04/14/12
anag ng a verse
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anag ng a verseWorkforce
oTo successfully manage a diverse
workforce, managers must develop anew set of skills, including:oCommunicating effectively with
employees from a wide variety of culturalbackgrounds.
oCoaching and developing employees ofdifferent ages, educational backgrounds,
ethnicity, physical ability, and race.o Providing performance feedback that is
based on objective outcomes.
oCreating a work environment that makes23By Muhammad Afaq Mazhar04/14/12
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Legal and Ethical Issues
o
Five main areas of the legalenvironment have influenced HRMover the past 25 yearso Equal employment opportunityo Employee safety and healtho Employee pay and benefitso Employee privacy
oJob securityo Women and minorities still face the
glass ceiling
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Legal and Ethical Issues
o Human resourcemanagers must satisfythree basic standards fortheir practices to beconsidered ethical:o HRM practices must result
in the greatest good for
the largest number ofpeople
o Employment practicesmust respect basic human
rights of privacy, due
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With the continuing trend of BrainDrain in Pakistan, what do you expect
in the next 15 years? Pros? Cons?
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Brain Drain in Pakistan
With the continuous trend of braindrain in Pakistan, we can expect ashort-term loss to the economy of
Pakistan and this short-term loss willpersist in the next 15 years if theeconomy of Pakistan does not
improve but if the economy ofPakistan improves, we can expectthe same people coming back to
Pakistan with more knowledge and04/14/12 27By Muhammad Afaq Mazhar
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How can human resourcemanagers help employees deal
with work/life issues?
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HRM dealing withwork/life issues
HRM managers have implementedprograms such as flex-time andtelecommuting that allow
employees to balance both a careerand a family. Benefit packageshave been altered to reflect the
needs of dual career couples
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Labor Supply
Do We Have a Shortage of SkilledLabor?
The combination of the small
population, the already highparticipation rate of women in theworkforce, and early retirements willlead to a significantly smaller futurelabor pool from which employers canhire.
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Labor Supply
Why Do Organizations Lay OffDuring Shortages?
Downsizing is part of a larger goal
of balancing staff to meet changingneeds.
Organizations want more flexibility
to better respond to change.This is often referred to as
rightsizing, linking employee needsto organizational strategy.
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Labor Supply
How Do Organizations BalanceLabor Supply?
Organizations are increasingly using
contingent workers to respond tofluctuating needs for employees.
Contingent workers include
Part-time workersTemporary workers
Contract workers
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Labor Supply
Issues Contingent Workers Createfor HRM How to attract quality temporaries
How to motivate employees who arereceiving less pay and benefits
How to have them available whenneeded
How to quickly adapt them to theorganization
How to deal with potential conflictsbetween core and contingent workers
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Thanks
34By Muhammad Afaq Mazhar04/14/12