Managing Human Resources, 4 Canadian Edition Belcourt Et Al

PowerPoint Presentation by Charlie Cook and adapted by Monica Belcourt.
2005 by Nelson, a division of Thomson Canada Limited.
Managing Human Resources, 4th Canadian Edition Belcourt et al.
Belcourt et al. 4th edition
Objectives
After studying this chapter, you should be able to:
1. Identify how firms gain sustainable competitive advantage through people. 2. Explain how globalization is influencing human resources management. 3. Describe the impact of information technology on managing people. 4. Identify the importance of change management. 5. State HRs role in developing intellectual capital. 6. Differentiate how TQM and reengineering influence HR systems.
2005 by Nelson, a division of Thomson Canada Limited. 12
Objectives (contd)
After studying this chapter, you should be able to:
7. Discuss the impact of cost pressures on HR policies.
8. Discuss the primary demographic and employee concerns pertaining to HRM.

9. Provide examples of the roles and competencies of todays HR managers.
13
Competitive Advantage through People

Human Resource Management
A set of inter-related policies, practices, and programs whose goal is to attract, socialize, motivate, maintain, and retain an organizations employees
Core Competencies
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.
14
Competitive Advantage through People

Sustained competitive advantage through people is achieved if these human resources:
Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy.
15
Overall Framework for Human Resource Management

COMPETITIVE CHALLENGES
Globalization Technology Managing change Human capital Responsiveness Cost containment
HUMAN RESOURCES
Planning Recruitment Staffing Job design Training/development Appraisal Communications Compensation Benefits Labour relations
EMPLOYEE CONCERNS
Background diversity Age distribution Gender issues Educational levels Employee rights Privacy issues Work attitudes Family concerns
Presentation Slide 11 2005 by Nelson, a division of Thomson Canada Limited.
Figure 1.1 16
Competitive Challenges and Human Resources Management

The most pressing competitive issues facing firms:
Going global Embracing technology Managing change Developing human capital Responding to the market Containing costs
17
Going Global
Globalization
The trend toward opening up foreign markets to international trade and investment.
Impact of Globalization
Partnerships with foreign firms Anything, anywhere, anytime markets Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements WTO and GATT
18
Going Global (contd)

Impact on HRM
Different geographies, cultures, laws, and business practices Issues:
Identifying
capable expatriate managers. Developing foreign culture and work practice training programs. Adjusting compensation plans for overseas work.
19
Embracing New Technology

Knowledge Workers
Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.
110
Influence of Technology in HRM

Human Resources Information System (HRIS)
Computerized system that provides current and accurate data for purposes of control and decision making. Benefits:
Store
and retrieve of large quantities of data. Combine and reconfigure data to create new information. Institutionalization of organizational knowledge. Easier communications. Lower administrative costs, increase productivity, and response times.
111
Major Uses For HR Information Systems
Source: HR and Technology Survey, Deloitte & Touche and Lawson Software, 1998. HRM 1 112
Impact of IT on HRM
Operational Impact Relational Impact
HRM
Transformational Impact
113
HRM IT Investment Factors

Initial costs and annual maintenance costs Fit of software packages to the employee base Ability to upgrade, increased efficiency and time savings Compatibility with current systems User-friendliness Availability of technical support Needs for customizing Time required to implement Training time required for HR and payroll
114
Managing Change
Types of Change
Reactive change
Change that occurs after external forces have already affected performance Change initiated to take advantage of targeted opportunities
Proactive change
Formal change management programs help to keep employees focused on the success of the business.
115
Managing Change through HR

Why Change Efforts Fail:
1. 2. 3. 4. 5. 6. Not establishing a sense of urgency. Not creating a powerful coalition to guide the effort. Lacking leaders who have a vision. Lacking leaders who communicate the vision. Not removing obstacles to the new vision. Not systematically planning for and creating shortterm wins. 7. Declaring victory too soon. 8. Not anchoring changes in the corporate culture.
116
Developing Human Capital

Human Capital
The knowledge, skills, and capabilities of individuals that have economic value to an organization.
117
Human Capital and HRM

Creation of knowledge Utilization of knowledge Application of knowledge
118
Responding to the Market

Total Quality Management (TQM)
A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.
Six Sigma
A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.
119
Responding to the Market

Reengineering
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
Requires
that managers create an environment for
change. Depends on effective leadership and communication processes. Requires that administrative systems be reviewed and modified.
120
Containing Costs
Downsizing
The planned elimination of jobs (head count).
121
Downsizing and Upsizing

Percent of companies reporting that they:
Source: Gene Koretz, Hire Math: Fire 3, Add 5, Business Week Online (March 13, 2000).
*All annual readings are for 12 months ending at midyear. Categories are not mutually exclusive.
Figure 1.2 122
Containing Costs (contd)

Hidden Costs of Layoff
Severance and rehiring costs Accrued vacation and sick day payouts Pension and benefit payoffs Potential lawsuits from aggrieved workers Loss of institutional memory and trust in management Lack of staffers when the economy rebounds Survivors who are risk-averse, paranoid, and political
123
Containing Costs (contd)

Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforce Higher customer satisfaction Readiness to snap back with the economy A recruiting edge Workers who arent afraid to innovate, knowing their jobs are safe.
124
Containing Costs
Outsourcing
Contracting outside the organization to have work done that formerly was done by internal employees.
Employee Leasing
The process of dismissing employees who are then hired by a leasing company (which handles all HRrelated activities) and contracting with that company to lease back the employees.
125
Productivity Enhancements
Perf = f (A,M,E)
MOTIVATION
Job enrichment Promotions Coaching Feedback Rewards
ABILITY ENVIRONMENT
Empowerment Teams Leader support Culture Recruitment Selection Training Development
Presentation Slide 12 2005 by Nelson, a division of Thomson Canada Limited.
Figure 1.3 126
Demographic and Employee Concerns

The Diversity Challenge
HRM 4 127
Age Distribution
128
Gender Distribution
129
Rising levels of education
130
Cultural Changes
Employee Rights
131
Cultural Changes
Concern for Privacy Changing Attitudes Towards Work Balancing Work and Family
132
Top Issues for Managers in Balancing Work and Home

Executive recruiters say 75 percent of senior management candidates and 88 percent of middle managers raised concerns about balancing work and home. Top issues:
Source: Association of Executive Search Consultants (member survey). Used with permission of the Association of Executive Search Consultants, http://www.aesc.org.
Figure 1.8 133
Partnerships: Line Managers and Human Resources Managers

Responsibilities of HR
Advice and counsel Service Policy formulation and implementation Employee advocacy
134
Strategic Human Resources Management

Strategy
The formulation of an organizations missions, goals, and objective as well as the action plans to execute the strategy.
Corporate Strategy Business Strategy
135
Strategic Human Resources Management

Strategic HRM A set of interrelated practices, policies, and philosophies whose goal is to enable the achievement of the corporate or business strategy.
136
Human Resource Competency Model
Business Mastery
Business acumen Customer orientation External Relations
Personal Credibility Trust

Personal relationships Lived values Courage
HR Mastery
Staffing Performance appraisal Rewards system Communication Organization design
Change Mastery
Interpersonal skills and influence Problem-solving skills Rewards system Innovation and creativity
Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, Lower Cost, Higher Value: Human Resource Function in Presentation Slide 14 Transformation. Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human Figure 1.9 Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) 490-6387, Fax: (212) 682-6851.
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PowerPoint Presentation by Charlie Cook and adapted by Monica Belcourt.

2005 by Nelson, a division of Thomson Canada Limited.

Managing Human Resources, 4th Canadian Edition Belcourt et al.

Belcourt et al. 4th edition

Belcourt et al. 4th edition

8. Discuss the primary demographic and employee concerns pertaining to HRM.

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Competitive Advantage through People

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Competitive Advantage through People

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Overall Framework for Human Resource Management

Presentation Slide 11 2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Competitive Challenges and Human Resources Management

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Going Global (contd)

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Embracing New Technology

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Influence of Technology in HRM

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Major Uses For HR Information Systems

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

HRM IT Investment Factors

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Managing Change through HR

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Developing Human Capital

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Human Capital and HRM

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Responding to the Market

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Responding to the Market

that managers create an environment for

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

2005 by Nelson, a division of Thomson Canada Limited.

Belcourt et al. 4th edition

Downsizing and Upsizing

2005 by Nelson, a division of Thomson Canada Limited.

Figure 1.2 122