IRWIN

CHAPTER 1

Human Resource Management:Gaining a Competitive Advantage

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History of HumanResource Management PractisesHistory of HumanResource Management Practises

19101910

Scientific Management - performance related to working conditions

Scientific Management - performance related to working conditions

1920-301920-30 19401940

1980 - Now1980 - Now

First personnel depts.Hawthorne studies

First personnel depts.Hawthorne studies

World War II- Selection tests

World War II- Selection tests

1960 -701960 -70

Employee relations- comply with laws- reactive- stand alone

Employee relations- comply with laws- reactive- stand alone

Integration with Business operationsIntegration with

Business operations

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Human Resource Management

What’s Next ?

THE 21st CENTURY

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IRWIN

Dimensions ofHR Practises

• Managing Internal & External Environment

• Assessing Work & Work Outcomes

• Acquiring HR

• Developing HR

• Rewarding HR

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COMPETITIVENESS

External Challenges Facing OrganizationsExternal Challenges Facing Organizations

Corporate Competitiveness

Globalization

TechnologySocial / CulturalDemographic

EconomicLegal

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TechnologicalTechnological

EconomicEconomic Political / LegalPolitical / Legal

Social-CulturalSocial-Cultural

Organization

Customer

Competitors

Suppliers

LaborMarket

The Organization and the Environment

The Role of HR in Strategy FormulationThe Role of HR in Strategy Formulation

AdministrativeLinkage

One-WayLinkage

Two-WayLinkage

IntegrativeLinkage

StrategicPlanning

StrategicPlanning

StrategicPlanning Strategic

Planning

HRFunction

HRFunction

HRFunction

HRFunction

SOURCE: Adapted from K. Golden and V. Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985): 429-451.

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Mission

- reason for being

Goals

- what it hopes to achieve

StrategicChoice

ExternalAnalysis

- opportunities- threats

InternalAnalysis

- strengths- weaknesses

- ways to fulfill goals and mission

HR Input

Strategy Formulation

Strategy Formulation

StrategicChoice

FirmPerformance- productivity- quality- profitability

HR Needs

- skills- behaviors- culture

HR Capability

- skills- abilities- knowledge

HR Actions

- behaviors- results

HR Practices

- recruitment- training- performance management- labor relations- HR planning

- job analysis- job design- selection- development- pay structure- incentives- benefits

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IRWIN Emergent Strategies

Strategic HR Management

Formation

Growth Maturity

Sales

Product Life Cycle andOperating Strategies

Product Life Cycle andOperating Strategies

DifferentiationPorterPorter

strategiesstrategiesPorterPorter

strategiesstrategies Cost Leadership

HR needs in Strategy

Formulation

HR needs in Strategy

Formulation

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DifferentiationDifferentiation Cost LeadershipCost LeadershipHR RoleHR Role

Focus of firm Employee role

Training

Staffing

Compensation

Performancemanagement

- efficiency

- specific & repetitive

- specific/short-term skills- promote internally

- internal pay equity

- behavior-oriented

- creative, risk-taking

- broader tasks creative risk-takers- broad career paths

- recruit more from outside- external pay equity

- results-oriented