HUMAN RESOURCE
MANAGEMENT
HOW ARE ENTERPRISES
BEING TRANSFORMED?
new missions
new market driven business strategies
radical restructuring
reshaped workforces
new leadership
new cultures for old
WHY THE
TRANSFORMATION?
A search for competitiveness in the now
interdependent global economy
FORCES SHAPING COMPETITION
WORLDWIDE
• Global Economy
• Buyer Power
• Information and Computer Technology
• New Technical Knowledge
• Active Host Governments
• Reduced Trade Barriers
Trends for HR in the 21st
Century
• Becoming the employer of choice
• Winning the war for talent
• Contributing to the organization as a strategic
business partner
• Cultivating leadership through e-learning and
development
• Recognizing the workforce as a profit center
• Thinking globally while complying locally
• Incorporating flexibility and adaptability into the
organization
• Embracing technology as the underlying facilitator
Consequences of these
basic trends
Global Orgaisations
Uncertainty
expansion must be
New Turbulence Fast,
technology Rapid Change Responsive
Greater Changing and
competition power bases Cost-
effective
Competencies for 21st
Century HR Professionals
• Developing Effective Reward and Recognition Systems
• Creating and Becoming Transformational Leaders
• Engaging the Workforce in Continuous Change and Innovation
• Collaborating in Resolving of Strategic Problems
• Partnering with Community Groups and Business Organizations
• Encouraging Real Employee Involvement
• Coaching and Counseling Individuals and High Performance Teams
• Empowering and Facilitating Learning, Change, and Decision-
making
• Creating the "Learning" Organization
• Designing Organizations, Processes, and Performance Systems
• Keeping Up-to-Date on Technological Advances in HR Applications
• Maintaining a Global Business Perspective
HR Management Challenges
• Economic and Technological Changes
– Shift in jobs from manufacturing and
agriculture to service industries and
telecommunications.
– Pressures of global competition causing
firms to adapt by lowering costs and
increasing productivity.
– Growth of information technology
(Internet).
HR Management Challenges
• Workforce Availability and Quality
– Inadequate supply of workers with
needed skills for “knowledge jobs”
– Education of workers in basic skills
• Growth in Contingent Workforce
– Increases in temporary workers,
independent contractors, leased
employees, and part-timers
HR Management Challenges
• Demographics and Diversity Issues
– More awareness of diversity issues of
race, gender, age, and ethnicity in the
workforce
• Balancing Work and Family
– Dual-career couples
– Single-parent households
– Decline in the “traditional family”
– Working mothers and family/childcare
HR Management Challenges
• Organizational Restructuring,
Mergers, and Acquisitions
– “Right-sizing
• Intended results are flatter organizations,
increases in productivity, quality, service
and lower costs.
• Costs are survivor mentality, loss of
employee loyalty, and turnover of
valuable employees.
– HR managers must work toward
ensuring cultural compatibility in
mergers.
Overall Framework for
Human Resource Management
COMPETITIVE
COMPETITIVE HUMAN
HUMAN EMPLOYEE
EMPLOYEE
CHALLENGES
CHALLENGES RESOURCES
RESOURCES CONCERNS
CONCERNS
••Globalization
Globalization ••Planning
Planning ••Background
Backgrounddiversity
diversity
••Technology
Technology ••Job
Jobdesign
design ••Age
Agedistribution
distribution
••Managing
Managingchange
change ••Staffing
Staffing ••Gender
Genderissues
issues
••Human
Humancapital
capital ••Training/development
Training/development ••Educational
Educationallevels
levels
••Responsiveness
Responsiveness ••Appraisal
Appraisal ••Employee
Employeerights
rights
••Cost
Costcontainment
containment ••Compensation
Compensation ••Privacy
Privacyissues
issues
••Benefits
Benefits ••Work
Workattitudes
attitudes
••Labor
Laborrelations
relations ••Family
Familyconcerns
concerns
Nature of Human Resource
Management
• Human Resource Management
– The design of formal systems in an
organization to ensure effective and efficient
use of human talent to accomplish
organizational goals.
• Who Is an HR Manager?
– In the course of carrying out their duties,
every operating manager is, in essence, an
HR manager.
– HR specialists design processes and systems
that operating managers help implement.
Typical Division of HR
Responsibilities
• HR Unit • Managers
– Develops legal, – Advise HR of job
effective interviewing openings
techniques – Receive interview
– Trains managers in training from HR unit
conducting selection – Do interviewing
interviews – Participate in hiring
– Conducts testing decisions
– Arranges and – Provide feedback to HR
coordinates unit on hiring/rejection
interviews decisions
– Checks references
Different Roles for HR
• Strategic : as business contributor
• Operational : managing most HR
activities
• Employee Advocate : serves as
‘Morale Officer’
• Administrative : focuses extensively
on clerical administration
Different Roles for HR
The Strategic Role of
Human Resource
Management
HRM 1
n Strategy
ti o
ni
e fi
• Strategy is the company’s long-
D
term plan for how it will balance its
internal strengths and weaknesses
with its external opportunities and
threats to maintain a competitive
advantage.
Strategic Planning
There are three levels of strategic planning -
Corporate
Strategy
Business Business Business Business
Strategy Strategy Strategy Strategy
Functional
Strategies
n Strategic HRM
itio
f in
Clarify the business
De
strategy
Strategic human resource Realign the HR
management: linking function and key
HRM with strategic goals people practices
and objectives to improve
business performance Create needed
and develop competencies
and behaviors
organizational cultures
fostering innovation and
Realization of business
flexibility.
strategies and results
Evaluate and
refine
HRD CULTURE
OCTAPACE
O – Openness
C – Collaboration
T – Trust
A – Authenticity
P – Proactivity
A – Autonomy
C – Climate that is
Developmental
E – Experimentation
THE HUMAN RESOURCE
FUNCTION IN
ORGANIZATIONS OF VARIOUS
SIZES
HR in Small Businesses
Seldom Have a Formal HR Unit
Other Managers Handle HR
Functions
Focuses on Hiring & Retaining
Capable Employees
The Human Resource
Function in a Small
Business
Manager/
Owner
Sales Operations Finance
HR in a Medium-Sized
Firm
Little specialization
HR Manager is essentially the
entire department
The Human Resource
Function in a Medium-
Sized Business
President
Sales Operatio ns Fin ance Human Resource
Manager Manager Manager Manager
Traditional Human
Resource Functions in a
Large-Sized Firm
Separate sections are often created
Placed under an HR Manager
Each HR function may have a
supervisor & staff
HR Manager works closely with top
management in formulating policy
The Human Resource Functions
in a Large Firm
President
Marketing Operations Finance HR
Manager Manager Manager Manager
Manager Manager
Training and Com pensation &
Developm ent Benefits
Manager Manager
Labor Staffi ng
Relations
Manager
Safety &
Health
A New and Evolving HR
Organization for
Large-size Firms
Performance in some Functional
Areas
Outsource
Shared Service Centers
Line Managers Have More HR
Authority
Example of a New and Evolving HR
Organization for Large Firms
President and CEO
Human Resource Manager Safety and Health Manager
Training and Development Compensation Benefits
Outsourced
Shared Service Center
HR means performance
• Can HR have a measurable impact
on a company’s bottom line?
• Better HRM translates into improved
employee attitudes and motivation
(e.g., working at home)
• Well run HR programs drive
employee commitment
Things to Remember as We Move
through the course
• HR management: the responsibility of
every manager
• HR practices today must address
several basic issues including
– Improving competitiveness
– Globalizing
– Technology and internet-based
advances
– Contributing to strategic success
