Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1 Human Resources in the Globally Competitive Business Environment

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 21st Century Corporations  Global  The timeline for the globalization of companies is as follows:  Early days: a company that sold goods overseas  Middle period: a company that held manufacturing and sales of good in other countries  21st Century: a company that recruits a countries local talent and most of all the acquisition of overseas “intellectual property.”  Speed  Speed in the 21st century company is a business strategy that operates in a virtual network of suppliers, manufacturers, and delivery

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. People Driven Enterprises  The successful 21st century company is one that realizes that it is the people that make-up the business  The key ingredients of the 21st century are as follows:  The understanding of Challenge  The seizure of Opportunity  The management of Frustration

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Managing People  Considerations of an affective manager  Staffing  Retention  Development  Adjustment  Managing Change

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Key Features of the Competitive Business Environment  Globalization  Technology  E-Commerce  Understanding of Changing Demographics  Understanding of increasing cultural diversity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. New Competitive Realities  Emergence of smaller companies with fewer employees  Decline of management hierarchies with an increase of networks of specialists  Increase of technicians to keep computers running, etc  Decline of the importance of seniority shifted to compensation and company standing based on the market value of a given position

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Competitive Strategies  Competitive strategies of the 21st century company  Innovation  Quality Enhancement  Cost-Reduction  Speed

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Achieving Competitive Strategies through HRM  Innovation Strategy Requires  Highly Skilled Employees  Higher Employee Discretion  Higher Investment and risk  Quality Enhancement Requires  Repetitive behaviors from management through production  Long-term focus  Modest amount of independent employee discretion  Highest emphasis on Quality

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Achieving Competitive Strategies through HRM  Cost Reduction Strategy Requires  Tight fiscal and management controls  Minimization of overhead  Pursuit of strict economies of scale (overall company size and focus control)  Speed Requires  Highly skilled employees who are time-focused  Managers and employees must support change  Company culture must mirror fast-paced model

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Importance of Productivity  Companies must give employees a higher stake in its success  Companies must convince employees that rewards are derived from productivity  Companies must recognize that no productivity problems have a “quick fix”  Companies must embrace the philosophy of constant learning and improvement

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Emergence of QWL  Quality of Work Life has distinct structures  Driven by employee understanding of company practices, management democracy, and employee evolvement  Driven by employee overall satisfaction and safety

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Business Trends and Human Resource Competencies  Human Resource Managers must embrace the following principles in alignment with the following business trends:  Strategic Partnerships  Innovation  Collaboration  Change Facilitation