challenge of human resource

Belcourt et al. 4th edition

Challenge of human resource management

by

abdulkadir sugal

challange HRM, abdulkadir, february 2014

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1. how firms gain sustainable competitive advantage through people.

2. Explain how globalization is influencing human resources management.

3. the impact of information technology on managing people.

4. the importance of change management.

5. State HR’s role in developing intellectual capital.

6. Differentiate how TQM and reengineering influence HR systems.

7. Roles and competencies of typical HRM


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Human Resource Management◦ A set of inter-related policies, practices, and

programs whose goal is to attract, socialize, motivate, maintain, and retain an organization’s employees

Core Competencies◦ Integrated knowledge sets within an organization

that distinguish it from its competitors and deliver value to customers.


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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.


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COMPETITIVECOMPETITIVECHALLENGESCHALLENGES

• GlobalizationGlobalization• TechnologyTechnology• Managing changeManaging change• Human capitalHuman capital• ResponsivenessResponsiveness• Cost containmentCost containment

COMPETITIVECOMPETITIVECHALLENGESCHALLENGES

• GlobalizationGlobalization• TechnologyTechnology• Managing changeManaging change• Human capitalHuman capital• ResponsivenessResponsiveness• Cost containmentCost containment

HUMAN HUMAN RESOURCESRESOURCES

• PlanningPlanning• RecruitmentRecruitment• StaffingStaffing• Job designJob design•Training/developmentTraining/development• AppraisalAppraisal• CommunicationsCommunications• CompensationCompensation• BenefitsBenefits• Labour relationsLabour relations

HUMAN HUMAN RESOURCESRESOURCES

• PlanningPlanning• RecruitmentRecruitment• StaffingStaffing• Job designJob design•Training/developmentTraining/development• AppraisalAppraisal• CommunicationsCommunications• CompensationCompensation• BenefitsBenefits• Labour relationsLabour relations

EMPLOYEEEMPLOYEECONCERNSCONCERNS

• Background diversityBackground diversity• Age distributionAge distribution• Gender issuesGender issues• Educational levelsEducational levels• Employee rightsEmployee rights• Privacy issuesPrivacy issues• Work attitudesWork attitudes• Family concernsFamily concerns

EMPLOYEEEMPLOYEECONCERNSCONCERNS

• Background diversityBackground diversity• Age distributionAge distribution• Gender issuesGender issues• Educational levelsEducational levels• Employee rightsEmployee rights• Privacy issuesPrivacy issues• Work attitudesWork attitudes• Family concernsFamily concerns

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The most pressing competitive issues facing firms:◦ Going global◦ Embracing technology◦ Managing change◦ Developing human capital ◦ Responding to the market ◦ Containing costs


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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


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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.


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Knowledge Workers◦ Workers whose

responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.


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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.


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TransformationalTransformationalImpactImpact

TransformationalTransformationalImpactImpact

OperationalOperationalImpactImpact

OperationalOperationalImpactImpact

RelationalRelationalImpactImpact

RelationalRelationalImpactImpact

HRMHRMHRMHRM


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


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Types of Change◦ Reactive change

Change that occurs after external forces have already affected performance

◦ Proactive change Change initiated to take advantage of targeted

opportunities Formal change management programs help

to keep employees focused on the success of the business.


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Why Change Efforts Fail:1. Not establishing a sense of urgency.2. Not creating a powerful coalition to guide the

effort.3. Lacking leaders who have a vision.4. Lacking leaders who communicate the vision.5. Not removing obstacles to the new vision.6. Not systematically planning for and creating

short-term “wins.”7. Declaring victory too soon.8. Not anchoring changes in the corporate culture.


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Intellectual capital is the amount by which the market value of

a firm exceeds its tangible (physical and financial) assets less liabilities.

Understanding the intellectual capital in an enterprise allows leveraging its intellectual assets. For a corporation the result will optimize its stock price.


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Intellectual capital is normally classified as follows:

Human capital Structural capital Relational capital


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Human capital: . an organization’s combined human capability for

solving business problems and exploiting its Intellectual Property

• Structural capital: the supportive non-physical infrastructure,

processes and databases of the organization that enable human capital to function

• Relational capital: consisting of such as customer relationships,

supplier relationships, trademarks


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Human Capital◦ The knowledge, skills, and capabilities of

individuals that have economic value to an organization.


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Creation of knowledge

Utilization of knowledge

Application of knowledge


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Total Quality Management (TQM) The continuous process of reducing or eliminating

errors in manufacturing, streamlining supply chain management, improving the customer experience and ensuring that employees are up-to-speed with their training.

Six Sigma◦ A process used to translate customer needs into a

set of optimal tasks that are performed in concert with one another.


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TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are:I. Foundation – It includes: Ethics, Integrity and Trust.II. Building Bricks – It includes: Training, Teamwork and Leadership.III. Binding Mortar – It includes: Communication.IV. Roof – It includes: Recognition.


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.


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Overall Responsibilities Human resource managers have strategic

and functional responsibilities for all of the HR disciplines.

A human resource manager has the expertise of an HR generalist combined with general business and management skills


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Compensation and Benefits Human resource managers provide

guidance and direction to compensation and benefits specialists. Within this discipline, human resources managers develop strategic compensation plans, align performance management systems with compensation structure and monitor negotiations for group health care benefits.


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Training and Development Employee training and development

includes new hire orientation, leadership training and professional development seminars and workshops.

Human resource managers oversee needs assessments to determine when training is necessary and the type of training necessary to improve performance and productivity


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Employee Relations Although the employee relations specialist is

responsible for investigating and resolving workplace issues, the human resource manager has ultimate responsibility for preserving the employer-employee relationship through designing an effective employee relations strategy.

An effective employee relations strategy contains specific steps for ensuring the overall well-being of employees


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