1. 1-1 Human Resource Management Gaining a Competitive Advantage Chapter 16 Strategically Managing the HRM Function McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, All Rights Reserved.

2. 16-2 Categories of HRM Activities Transformational Knowledge management Cultural Change Strategic redirection and renewal Management development Traditional Recruitment and selection Training Performance management Compensation Employee relations Transactional Benefits administration Record keeping Employee services

3. 16-3 Strategic Management of the HRM Function For the HR function to become truly strategic in its orientation, it must view itself as being a separate business entity. A customer orientation is one of the most important changes in the HR function’s attempts to become strategic. The products of the HR department must be identified. The technologies through which HR meets customer needs vary depending on the need being satisfied.

4. 16-4 Customer-Oriented Perspective Customers Line managers Strategic planners Employees HRM function Technology Staffing Performance management Rewards Training and development Customers’ Needs Committed employees Competent employees

5. 16-5 Restructuring to Improve HRM Effectiveness The HRM function effectively is divided into three divisions: –The Centers for Expertise - Consist of functional specialists in the traditional areas of HR. These individuals ideally act as consultants in the development of state-of- the-art systems and processes for use in the organization. –The Field Generalists - Consist of the HRM generalists who are assigned to a business unit within the firm. –The Service Center - Consists of individuals who ensure that the transactional activities are delivered throughout the organization.

6. 16-6 How HR Can Help Get the Most Out of an Organization’s Talent Improving Leadership –Help mngrs become better leaders by teaching them how to improve communication skills, set expectations for staff, motivate people Informing Board –Become resource on condition and utilization of workforce Directors could use this info for succession planning, assessing org design and effectiveness, strategic decisions such as whether org has people w/ right skills to start new line of business Assessing Workforce –Develop human-capital information system to measure skills/competencies of workforce, performance in critical areas, cost to org »Ed Lawler, director of Center for Effective Organizations, University of Southern California, Wall Street Journal, 3/5/08