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© 2003 Prentice Hall, Inc. 1-1 Instructor presentation questions: [email protected] Chapter 1 The Strategic Role of Human Resource Management

The Strategic Role Of Hrm

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Page 1: The Strategic Role Of Hrm

© 2003 Prentice Hall, Inc.1-1

Instructor presentation questions: [email protected]

Chapter 1

The Strategic Role of Human Resource Management

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© 2003 Prentice Hall, Inc.1-2

Outline of Chapter 1

I. The Manager’s Human Resource Management Jobs

Why is HR Management Important to All Managers?

Line and Staff Aspects of HRM

Cooperative Line and Staff HR Management: An Example

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Outline of Chapter 1

II. Strategic Planning and Strategic Trends

The Basics of Strategic Planning

The Strategic Planning Process

Basic Strategic Trends

Managerial Consequences of the Basic Trends

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Outline of Chapter 1

III. HR’s Strategic RoleHR’s Evolving RoleStrategic Human Resource ManagementHR’s Role as a Strategic PartnerHR and TechnologyHR and Employee Performance and CommitmentIs there a “One Best HR Way?”Research Insight

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After Studying This Chapter,You Should Be Able To:

Explain what human resource management (HR)is and how it relates to the management process.

Give at least eight examples of how HR management concepts and techniques can be of use to all managers.

Illustrate the HR management responsibilities of line managers and staff (HR) managers.

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The Management Process

Planning Organizing Staffing Leading Controlling

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Management Process

Planning Goals and standards Rules and procedures Plans and forecasting.

Organizing Tasks Departments Delegating Authority and communication Coordinating

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Management Process

Staffing Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

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Management Process

Leading Getting the job done Morale Motivation

Controlling Setting standards Comparing actual performance to standards Corrective action

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HRM Function

Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.

Definition

Definition

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HRM People Functions Include:

Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and

benefits

Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor

relations

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HRM is Important to all Managers.Don’t Let These Happen to You!

The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices

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HRM – It’s All About Results

“For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes

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Line and Staff Aspects of HRM

Authority Making decisions Directing work Giving orders

Line Managers Accomplishing goals

Staff Managers Assisting and advising line managers

Definition

Definition

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Line Manager’s HRM Jobs

The right person Orientation Training Performance Creativity Working

relationships

Policies and procedures

Labor costs Development Morale Protecting

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Staff Manager’s HRM Jobs

Line authority Implied authority Functional control Employee advocacy

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HR Department Organizational

Chart

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Strategic Planning and Trends

Strategy is the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

Definition

Definition

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Strategic Planning 101

There are three levels of strategic planning as shown below

Corporate Strategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

FunctionalStrategies

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The Strategic Planning Process

SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats

Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces

Basic strategic trends Globalization Technological advances The nature of work The workforce

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Globalization

0

10

20

30

40

50

60

70

80

1920 1950 1970 2000

% fortune 500 with aglobal presence

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Technological Advances and the Nature of Work

Technology mandates and enables companies to be more competitive

Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles

Carrier

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The Workforce Itself is Diverse

AsianBlackHispanicMenWomen

US Department of Labor website

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Consequences of these basic trends

Technology

Global expansion

Strengths and Weaknesses

Uncertainty, Turbulence, Rapid Change, Changing power bases

Companies must be Fast,Responsive, andCost-effective

Improved competition

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HR’s evolving role

Protector and Screener

Strategic Partner

Change Agent

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Strategic HRM

Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility.

Definition

Definition

Clarify the businessstrategy

Realign the HR functions and keypeople practices

Create needed competenciesand behaviors

Realization of businessstrategies and results

Evaluate and refine

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HR’s evolving role as strategic partner

HR operations

Corporate strategy

Corporate strategy

HR programsCorporate strategy

HR programs

Corporate strategyCorporate strategy

HR operationsHR operations

Corporate strategyCorporate strategy

HR programsHR programs

FedEx

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How HR helps strategy execution

Functional strategies should support competitive strategies

Value chain analysis Outsourcing Strategy Formulation

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How HR helps form strategy

Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses

Environmental scanning

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The Value Chain Approach

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Technology can be the Human Resources engine of change

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HR and technology

Basic HR systems demand paperwork

70% of HR’s employees time = paperwork

Off the shelf forms from Office Depot/Officemax

Online forms

Human Resource Information Systems (HRIS)

HR on the Internet

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HR portals

Employees can answer their own questions

HR moves from reactive to proactive

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HR means performance

Can HR have a measurable impact on a company’s bottom line?

Better HRM translates into improved employee attitudes and motivation (e.g., working at home)

Well run HR programs drive employee commitment TOYOTA

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A Case Study

Dell’s dual HR roles

Deals with staff - benefits - compensation - call center

Deals with management - education - recruitment - planning - training - personnel needs

OPERATIONS MANAGEMENT

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Is There a “One Best HR Way”?

Follow a company’s operating and strategic initiatives

All companies can benefit from Profit sharing programs Results oriented appraisals Employment security Foster informal relationships- promote worldwide

communications Develop global executives

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Things to Remember as We Move into Chapter 2

HR management: the responsibility of every manager

HR practices today must address several basic issues including Improving competitiveness Globalizing Technology and internet-based

advances Contributing to strategic success

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Plan for the Rest of the Book

Chapter 2: Equal Opportunity and the Law.

Part II: Recruitment and Placement Chapter 3: Job Analysis Chapter 4: Personnel Planning and

Recruiting Chapter 5: Employee Testing and Selection Chapter 6: Interviewing Job Candidates

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Plan for the Rest of the Book

Part III: Training and Development Chapter 7: Training and Development Chapter 8: Managing Organizational

Renewal Chapter 9: Appraising Performance Chapter 10: Managing Careers and Fair

Treatment

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Plan for the Rest of the Book

Part IV: Compensation Chapter 11: Establishing Pay Plans Chapter 12: Pay-for-Performance and

Financial Incentives Chapter 13: Benefits and Services

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Plan for the Rest of the Book

Part V: Employee Security and Safety Chapter 14: Labor Relations and Collective

Bargaining Chapter 15: Employee Safety and Health

Part VI: International HRM Chapter 16: Managing Human Resources in

an International Business.