Chapter 1

Meeting Present and Emerging Strategic Human Resource Challenges

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-1

Chapter Outcomes

Explain how a firms human resources influence its performance Describe how firms can use HR initiatives to cope with workplace changes and trends Distinguish between the role of a firms HR department and the role of the firms managers in utilizing human resources effectively HR Department and Managers: An Important Partnership
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-2

Chapter Outcomes

Formulate and implement HR strategies that can help the firm achieve a competitive advantage Identify HR strategies that fit corporate and business unit strategies Indicate HR best practices associated with high-performing firms

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-3

Human Resources

Even in tough economic times the need for talented employees is high Human Resources = Value of employees

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-4

Types of Employees

Manager
Line Employee Staff Employee Senior Employee Junior Employee Exempt Employees Nonexempt Employees
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-5

Human Resource Strategy

Human Resource Strategy refers to a firms deliberate use of human resources to help it gain an edge against its competitors.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-6

Key HR Challenges for Managers

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-7

Key HR Challenges: Environmental

Rapid Change The Internet Revolution Workforce Diversity Globalization Legislation Evolving Work and Family Roles Skill Shortages Rise of the Service Sector Natural Disasters
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-8

Key HR Challenges: Organizational

Competitive Position Decentralization Downsizing Organizational Restructuring Self-Managed Work Teams The Growth of Small Businesses Organizational Culture Technology Internal and Data Security Outsourcing Product Integrity
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-9

Key HR Challenges: Individual

Matching People and Organizations Ethics and Social Responsibility Productivity Empowerment Brain Drain Job Insecurity

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-10

Overcoming Challenges

There are many challenges to overcome, but we will discuss how a good HR department works with managers to provide a working environment that meets and overcomes these challenges. Example: Use of the internet helps in recruitment by screening applicants and also assists in getting the right person in place by providing quick and reliable background checks.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-11

Strategic HR Policies: Benefits

Encouraging Proactive Behavior Communicating Company Goals Stimulating Critical Thinking and Ongoing Examination of Assumptions Identifying Gaps Between Current Situation and Future Vision Encouraging Line Managers Participation Identifying HR Constraints and Opportunities Creating Common Bonds
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-12

Strategic HR Policies: Challenges

Maintaining a Competitive Advantage Reinforcing Overall Business Strategy Avoiding Excessive Concentration on Day-to-Day Problems Develop HR Strategies Suited to Unique Organizational Features Coping with the Environment Securing Management Commitment Translating the Strategic Plan into Action Combining Intended and Emergent Strategies Accommodating Change
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-13

Strategic HR: Choices

Work Flows Staffing Employee Separations Performance Appraisal Training and Career Development Compensation Employee Rights Employee and Labor Relations International Management
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-14

Selecting HR Strategies

To increase firm performance HR strategies should fit with other aspects of the organization

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-15

HR Strategies: Fit with Organizational Strategies

Corporate Strategies

Evolutionary Steady State

Porters Business Unit Strategies

Cost leadership Differentiation Focus
Defender Prospector

Miles and Snows Business Strategies

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-16

HR Strategies: Fit with Environment

Degree of Uncertainty Magnitude of Change Complexity Volatility

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-17

HR Strategies: Fit with Organizational Characteristics Production Process Firms Market Posture Firms Overall Managerial Philosophy Firms Organizational Structure Firms Organizational Culture

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-18

HR Strategies: Fit with Organizational Capabilities

Distinctive Competencies

Competitive edge

HR Strategies should:
Help firm exploit its competencies Assist the firm to help use its HR skills
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-19

HR and Managers: A Partnership

Role of HR Department is to support the managers HR responsibilities HR Audit:

Conduct periodically Evaluates how effective firm is at using human resources Often is an opportunity to evaluate the human resource department as well
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-20

Summary and Conclusions

Many challenges in HRM Plan and Implement HR in a strategic manner

Select strategies that increase performance HR department and management share an important partnership
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-21

Policies and procedures should be congruent

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

1-22