The Challenge of Human Resources Management 3 The Challenge of Human Resources Management Copyright © 2007 Thomson/South-Western. All rights reserved.

Why Study Human Resources Management 4 Why Study Human Resources Management Human Resources Management (HRM) The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives. “Why Study HRM?” Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department. Copyright © 2007 Thomson South-Western. All rights reserved.

Competitive Advantage through People 4 Competitive Advantage through People Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Sustained competitive advantage through people is achieved if these human resources: Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy. Copyright © 2007 Thomson South-Western. All rights reserved.

Challenge 1: Going Global 5 Challenge 1: Going Global Globalization The trend toward opening up foreign markets to international trade and investment Impact of globalization “Anything, anywhere, anytime” markets Partnerships with foreign firms Lower trade and tariff barriers NAFTA, EU, APEC trade agreements WTO and GATT Copyright © 2007 Thomson South-Western. All rights reserved.

Competitive Advantage through People 4 Competitive Advantage through People Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Sustained competitive advantage through people is achieved if these human resources: Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy. Copyright © 2007 Thomson South-Western. All rights reserved.

Challenge 2: Embracing New Technology 8 Challenge 2: Embracing New Technology Knowledge Workers Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving. Knowledge-Based Training Online instruction “Just-in-time” learning via the Internet on company intranets Copyright © 2007 Thomson South-Western. All rights reserved.

Challenge 3: Managing Change 13 Challenge 3: Managing Change Types of Change Reactive change Change that occurs after external forces have already affected performance Proactive change Change initiated to take advantage of targeted opportunities Copyright © 2007 Thomson South-Western. All rights reserved.

Challenge 4: Managing Talent, or Human Capital 14 Challenge 4: Managing Talent, or Human Capital Human Capital The knowledge, skills, and capabilities of individuals that have economic value to an organization. Valuable because capital: is based on company-specific skills. is gained through long-term experience. can be expanded through development. Copyright © 2007 Thomson South-Western. All rights reserved.

Challenge 5: Responding to the Market 16 Challenge 5: Responding to the Market Total Quality Management (TQM) A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. Copyright © 2007 Thomson South-Western. All rights reserved.

Challenge 6: Containing Costs 18 Challenge 6: Containing Costs Downsizing The planned elimination of jobs (“head count”). Layoffs Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees. Offshoring The business practice of sending jobs to other countries. Copyright © 2007 Thomson South-Western. All rights reserved.

Figure 1–4 Productivity Enhancements 23 Figure 1–4 Productivity Enhancements Copyright © 2007 Thomson South-Western. All rights reserved.

Qualities of Human Resources Managers 35 Qualities of Human Resources Managers Responsibilities Advice and counsel Service Policy formulation and implementation Employee advocacy Competencies Business mastery HR mastery Change mastery Personal credibility Copyright © 2007 Thomson South-Western. All rights reserved.