1. MGT 430 – Spring, 2016 Class 1 – Chapter 1 Introduction to Human Capital Management

2. MGT 430 – Prof. Ken Moore 518-374-1050 kmoore01@nycap.rr.com
Dates:
January 20, 2016 – May 4, 2016
Time & location:
Call #5237 Mon – Wed 10:15 am – 11:35 am, BB 205
Call #2896 Mon – Wed 11:45 am – 1:05 pm, BB 205
Course website:
Textbook: HUMAN RESOURCES MANAGEMENT: Managing Employees for Competitive Advantage, 2nd edition; Lepak & Gowan,
ISBN:

3. MGT 430 - Major Subject Areas
Strategic Human Resources Management & Competitive Advantage
Employment Law & Recruiting
HRM Planning, Recruiting, Selection & Placement
Performance Management
Employee Benefits
Compensation
Collective Bargaining & Labor Relations
Global HRM
Practical exercises

4. MGT 430 Graded Activities 500 points Exam #1 500 points Exam #2
500 points Final exam
500 points Group presentation
250 points Executive Briefing paper #1
250 points Executive Briefing paper #2
100 points Peer evaluation
Total points: 2600
Extra credit
100 points Perfect attendance
50 points Team President
1 25 points Team Vice President

5. The Many Strategic Purposes of Human Resources (Pick your favorites)
Advance the objectives of the organization
Help gain and sustain competitive advantages
Help ensure and promote the financial health of the organization
Help ensure and promote sound business policies and practices
Find, attract, retain and develop good people
Keep the company in compliance with employment laws
Help ensure that you and your colleagues will have a job next Monday when you show up for work

6. Organizational Structure
HR Finance
Accounting Marketing
Sales Production
Logistics Purchasing
Transportation Legal
Maintenance Administration
M.I.S Public Relations
Business Plan
Top Management Team

7. HRM SUPPORTS THE ACHIEVEMENT OF THE OBJECTIVES OF:
Purchasing Marketing Accounting Sales Finance M.I.S. Logistics R & D Maintenance Legal Transportation Administration Others ______________________________________________________ Human Resources Management

8. CREATING THE PERFECT H.R. WORLD
SUPERIOR PROFITABLE &
TRANSACTIONAL PRODUCTIVE
SKILLS BUSINESS
PARTNERSHIP

9. Charge to HRM: Linking HRM Contributions To:
PROFITABILITY Factors PRODUCTIVITY LEGAL COMPETITIVE ADVANTAGE

10. Being a Profitable and Productive Business Partner Requires:
Transactional mastery of HR (Mktg, Fin, Acct, IT, R&D, Logistics etc.) areas of expertise
Finely developed level of business intelligence
Financial literacy
Ability to create internal and external value by what HR does – as viewed by the consumers of HR services
Focus on what HR achieves, not what HR does

11. STRATEGY Examining Competitiveness –
It is a company’s ability to maintain and gain market share in its line of business
Human Resource Management –
The policies, practices, and systems that influence employees’ behavior, attitudes, and performance – leading to above average returns and sustained competitive advantages
Competitiveness refers to a company’s ability to maintain and gain market share in its industry. Competitiveness is related to company effectiveness, which is determined by whether the company satisfies the needs of stakeholders (groups affected by business practices). Important stakeholders include stockholders, who want a return on their investment; customers, who want a high-quality product or service; and employees, who desire interesting work and reasonable compensation for their services.
Human resource management refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance
--Many companies refer to HRM as involving “people practices"
1-11 .

12. HRM Challenge 1 Meeting Organizational demands
Strategy
Company Characteristics
Organizational culture
Employee concerns

13. HRM Challenge 2 Labor Force Trends
Technology (e.g. online recruiting, virtual management)
Economics (focus on value-adding deliverables)
Ethics & social responsibility
Cross-functional and business literacy
Generational issues
Multi-discipline team settings
Weaknesses in STEM skills

14. HRM Challenge 3 Regulatory Issues
Labor laws
Tax laws
Compliance
Differing global perspectives

15. THE PRIMARY ROLE OF HUMAN RESOURCES IS TO:
ADVANCE THE OBJECTIVES OF THE ORGANIZATION

16. IS TO ADVANCE THE OBJECTIVES
The Primary Roll Of:
Marketing Finance Accounting
Sales R&D Production
Logistics Maintenance Purchasing
Administration MIS Credit
IS TO ADVANCE THE OBJECTIVES
OF THE ORGANIZATION

17. KSAs Common to HRM Analysis, design & description of work
Recruitment & Selection
Training & Development
Compensation & Benefits
Employment law
HRIS (data support)
Performance Management
Policies & procedures
Employee/labor relations

18. Challenges to HRM Value-adding Work
Previous slides describe what HR does (i.e. transactional activities). What does HR achieve by doing these activities (Strategic)?

20. Skills of HRM Professionals
With such varied responsibilities, the human resource department needs to bring together a large pool of skills. These skills fall into the six basic categories shown in Figure 1.3 on this slide.
Credible activists – being so well respected in the organization that you can influence the positions taken by managers.
Cultural steward: involves understanding the organization’s culture and helping to build and strengthen or change that culture by identifying and expressing its values through words and actions
Talent manager/ organizational designer: knows the ways that people join the organization and move to different positions within it
Strategy architect: requires awareness of business trends and an understanding of how they might affect the business, as well as the opportunities and threats they might present.
Business allies – know how the business makes money, who its customers are, and why customers buy what the company sells
Operational executors: at the most basic level carry out particular HR functions such as handling the selection, training, or compensation of employees.
To excel in each of these areas it requires interpersonal skills to share information, build relationships and influence people.

21. Challenges for HR Management: Measurement of Our Worth
Can we show the linkage between measures of human
capital and financial returns?
How do we tell our
value-creation story?
How can we use these
data to create competitive
advantage?

22. What is the relationship between
Human Resources and Marketing Accounting and Human Resources M.I.S. and Human Resources Human Resources and R&D

23. Potential HRM Responses Re-Active & Pro-active
Reduce organizational exposure to legal liabilities
Operational and transactional efficiencies
Compliance with all state, federal & international employment laws
Advocate for employee concerns
Describe & justify value adding deliverables
Adequate & appropriate staffing according to our
business plan

24. Human Capital Pro-Active
Human Capital strategies that advance the business
objectives of the organization
Effective and appropriate assignment of employees
Selection, development and retention of high quality
employees
Strategic human capital plan + strategic business plan
alignment
RESULT: Right people…right KSAs…right place…right time

25. END OF CLASS 1