Human Resource Management

Chapter One
Managing Employees for Competitive Advantage

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People Management
Enables a company to: Attract, develop and retain talented employees Motivate employees to work hard and contribute to companys success Maintain and enhance a competitive advantage through its employees

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Key Terms

HR practicestools a company uses to manage employees Line managerindividuals responsible for supervising and directing a group of employees to perform tasks HR departmentsupport function that designs and implements company policies for managing employees
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Competitive Advantage

A companys ability to create more economic value than its competitors Accomplished through: managing employees effectively training employees in skills they need making employees feel valued motivating employees to be productive
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Primary HR Activities
Work design and workforce planning Managing employee competencies Managing employee attitudes and behaviors

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Work Design and Workforce Planning

What employees do, ensuring the right people are in the right place at the right time How jobs are interconnected and aligned with the companys objectives How employees are allocated When outsourcing, reorganization or use of contingent labor is needed
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Managing Employee Competencies

Assessing knowledge, skills, abilities and other talents employees possess Recruiting potential employees with desired competencies Selecting the best candidates based on experience and/or personality Training employees in skills they need for current and future positions
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Managing Employee Attitudes and Behaviors

Motivating workers to improve their performance Communicating performance criteria aligned with organizational goals Providing employees with feedback Disciplining poor performers
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HR Challenges

Organizational demandsstrategy, culture, employee concerns Environmental influenceslabor force trends, globalization, technology, ethics and social responsibility Regulatory issueslegislation protecting rights of individuals and the company with regard to employment processes
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Compensation and Incentives

Includes base pay, rewards and incentives May be performance-based or based on seniority or both Motivates employees if viewed as fair for the job they perform

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Benefits, Health, and Wellness

Required by law:

Social Security Workers Compensation Family and Medical Leave Compliance with OSHA
Paid time off Health care Retirement programs
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Voluntary:

HR Alignment Activities

Internal Alignmentpractices within each HR activity are consistent with each other External Alignmentpractices work in concert with one another as well as with external challenges companies face

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Strategic Challenges
Companys strategy influences types of jobs needed

Low-cost leader, example: Wal-Mart Differentiation, example: Nordstrom Four-star restaurant vs. fast food

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Company Characteristics

Size Resources available Degree of autonomy and discretion Differences in job tasks Employee attitudes and behaviors

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Organizational Culture

Set of underlying values and beliefs employees share Unwritten yet understood Represents beliefs of companys founders and key leaders Influences how employees do their jobs Can assist in attracting and retaining employees
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Employee Concerns

Single parents; caring for aging parents Dual career; balancing demands of work and personal lives Attracted by flexible scheduling, familyfriendly benefits and telecommuting

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Environmental Influences

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Labor Force Trends

Diverse in race, gender and age Number of women expected to grow 9% from 2006 to 2016 Fastest-growing group: Hispanics and Asians Size of group 55-and-older increasing dramatically Influences how companies recruit/select

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Technology

Requires many employees to possess basic computer proficiency Challenges privacy issues and potential misuse by employees Broadens access to recruit employees from larger market Enables virtual workforce

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Globalization

Blurs country boundaries in business activities Enables international joint ventures and partnerships Challenges companies with differences in values and beliefs Encourages offshoringsending work once performed domestically to other countries for lower costs
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Ethics and Social Responsibility

Companies and their management being held accountable for ethical behavior Corporate policies and procedures spell out ethical behavior Annual training required of employees Social Responsibility takes ethics to a new level

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Regulatory Issues

Federal, state, and local legislation as well as executive orders Employment and the rights of individuals Title VII of the Civil Rights Act of 1964 Americans with Disabilities Act of 1990 OSHA Civil Rights Act of 1992
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Plan for this Book

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Overview of Chapters

Chapters 1-3 Chapters 4-5 Chapters 6-8 Chapters 9-12

Chapters 13-14

HR Challenges Work Design and Workforce Planning Managing Employee Competencies Managing Employee Attitudes and Behaviors Special Topics
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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