Download chapt 1 hrm

Six competitive challenges to Human Resources Management
1.Globalization
2.Technology
3.Managing Charge
4.Human Capital
5.Responsiveness
6.Cost Containment
Globalization
Technology
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-The trend toward opening up foreign markets to international trade and investment
-In order for businesses to succeed in the modern world, it is necessary to try expanding into the
global market
-Many companies use the global market as a fantastic business opportunity to prosper and
expand
-This has an affect on human resources when finding new employees
-They will need to look for candidates that understand international cultures, laws and business
practices
-Partnerships with foreign firms
-Lower trade and tariff barriers
-Corporate Social Responsibility: yhe responsibility of the firm to act in the best interests of
the people and communities affected by its activities.
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-We have transformed into knowledge workers, whose responsibilities extend beyond the
physical execution of work to include planning, decision-making, and problem solving
-Online instruction, just-in-time” learning via the Internet on company intranets.
-Advanced technology has decreased the number of jobs that need little skill but increased the
number of jobs that require specific technology skills
-Technology is used to manage Human Resource Information Systems and present accurate
information for staff
Benefits
1.Store and retrieve of large quantities of data
2.Combine and reconfigure data to create new information
3.Institutionalization of organizational knowledge
4.Easier communications.
5.Lower administrative costs
6.increased productivity and response times
7.Has become a great tool for lowering administration costs
8.Increasing productivity
9.Speeding up response times
10.Improving decision-making
HR IT Investment Factors
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1.Fit of the application to the firm’s employee base
2.Ability to upgrade or customize the software
3.Compatibility with current systems
4.User friendliness
5.Availability of technical support
6.Time required to implement and train staff members to use the HRIS
7.Initial costs and annual maintenance costs
Managing Change
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-Change is a difficult thing for Human Resources departments to manage
-Formal change management programs help to keep employees focused on the success of the
business.
-Two types of change:
-Reactive: when external forces have already affected an organizations performance
-Proactive: initiated by managers to take advantage of targeted opportunities, in fast changing
industries in which followers are not successful
Failed Change Efforts:
1.Not establishing a sense of urgency
2.Not creating a powerful coalition to guide the effort
3Lacking leaders who have a vision and communicate it
5.Not removing obstacles or motivating employees
6.Not systematically planning or creating short term “wins”,
7.Declaring victory too soon,
8.Not anchoring changes in the corporate culture or failing to maintain the momentum of change
Human Capital
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-Success increasingly depends on an organization's ability to manage human capital
-Describes the economic value of employees knowledge, skills, and capabilities
-The Human Resources department has to try and manage jobs, technologies and projects in a
way that is unnatural to them
-Human capital is in the hands of the employee, if they leave the company all training,
development, and investment is lost
-The most highly value intelligence occurs when employees are on the job which can not be
easily taught
-Too many times employees have skills that are unused because of developmental assignments
and job duties that are not flexible enough to allow them to learn
-HR managers and line managers each plan an important role in creating an organization that
understands the value of knowledge, documents the skills and capabilities available to the
organization and identifies ways of utilizing that knowledge to benefit the firm
Responsiveness
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-It is essential that organizations aim to meet and respond to their customer's expectations
-The Human Resources departments must learn the strategies involved in this process; total
quality management, six sigma and reengineering
-Total quality management: the 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: statistical method of translating a customers needs into separate tasks and defining
the best way to perform each task in concert with others
-Has a powerful effect on the quality of products, the performance of customer service and the
professional development of employees
-Catches the problem before it happens and helps balance two opposing forces
-Formulates teams, extends to training, performance management, communication, culture and
even rewards
-Reengineering: the fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in coast, quality service and speed
-Rethinking of how work should be done, how technology and people should interact, and how
entire organizations should be structured
-Steps: create an environment for change, depend on effective leadership, and communication
processes, administrative systems be reviewed and modified
Cost Containment
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-One of the biggest challenges to the Human Resources department is to try and contain costs
-Labor costs are the largest expenditures of any company and the HR department is in charge of
downsizing or outsourcing, should the need to occur
-Downsizing: planned elimination of jobs
-Hidden Costs of Layoff:
1.Severance and rehiring costs.
2.Accrued vacation and sick day payouts.
3.Pension and benefit payoffs.
4.Potential lawsuits from aggrieved workers.
5.Loss of institutional memory and trust in management.
6.Lack of staffers when the economy rebounds.
7.Survivors who are risk-averse, paranoid, and political.
-Benefits of No Layoff Policy
1.A more loyal productive workforce
2.Higher customer satisfaction
3.Readiness to snap back with the economy
4.A recruiting edge, workers who are not afraid to innovate
5.Knowing their jobs are sage
6.More people are choosing to work on a freelance, or contract, basis or to work part-times,
especially women and seniors
-Outsourcing: hiring someone outside the company to perform business processes that could be
done within a firm
-Maintenance, security catering and payroll are often outsourced to increase the organizations
flexibility and lower its overhead costs
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-Offshoring: Involves shifting work to overseas locations
-Can save between 40-60 percent on labour costs relocating
-Companies can focus more on rescuing dialing businesses, make better use of their skilled
labour, and deliver products more cheaply because they have people working 24/7 across the
globe
-Disadvantages: hidden costs such as finding foreign vendors, productivity lost during the
transition, domestic layoff costs, language difficulties, international regulatory challenges and
political and economic instability
-HR can carefully address issues such as skill and language requirements, labour costs by
market, alternative talent pools, workforce training, retraining and change management
-HR managers must also work with other functional groups to define and communicate transition
plans, minimize the number of unknowns and help employees identify their employment options
-Employee leasing: the process of dismissing employees who are then hired by a leasing
company and contracting with that company to lease back the employees
-Can offer employees flextime, job sharing, part time employment, consulting arrangements,
seasonal work, and on-call work
-Can maintain its working relationship with its employees but shift some employment costs in a
return for a fee
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