1. The Challenge of Human Resource Management

2. Why Study Human Resource Management
Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes are as relevant to line managers as they are to managers in the HR department.

3. To work with people effectively, we have to understand human behavior, and we have to be knowledgeable about the various systems and practices available to help us build a skilled and motivated workforce.

4. We have to be aware of economic, technological, social, legal, and global issues that either facilitate or constrain our efforts to achieve organizational goals.

5. 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.

6. Overall Framework for Human Resource Management
COMPETITIVE CHALLENGES
Globalization
Technology
Managing change
Human capital
Responsiveness
Cost containment
HUMAN RESOURCES
Planning
Recruitment
Staffing
Job design
Training/development
Appraisal
Communications
Compensation
Benefits
Labor relations
EMPLOYEE CONCERNS
Background diversity
Age distribution
Gender issues
Educational levels
Employee rights
Privacy issues
Work attitudes
Family concerns

7. Competitive Challenges and Human Resources Management
The most pressing competitive issues facing firms:
Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs

8. CHALLENGE 1: Going Global
Globalization
The trend toward opening up foreign markets to international trade and investment.
Impact of Globalization
Partnerships with foreign firms
“Anything, anywhere, anytime” markets
Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements
WTO and GATT

9. Going Global (cont’d) Impact on HRM
Different geographies, cultures, laws, and business practices
Issues:
Identifying capable expatriate managers.
Developing foreign culture and work practice training programs.
Adjusting compensation plans for overseas work.

10. 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.
The Spread of E-commerce
The Rise of Virtual Workers

11. Influence of Technology in HRM
Human Resources Information System (HRIS)
Computerized system that provides current and accurate data for purposes of control and decision making.
Benefits:
Store and retrieve of large quantities of data.
Combine and reconfigure data to create new information.
Institutionalization of organizational knowledge.
Easier communications.
Lower administrative costs, increase productivity and response times.

12. Major Uses For HR Information Systems

13. Transformational Impact
Impact of IT on HRM
Operational Impact
Relational Impact
HRM
Transformational Impact

14. A specific example of HR transformation at Merck can be seen in the evolution of education and training. Rather than relying solely on traditional approaches to learning, Merck is developing a “blended” approach to learning.

15. In combination with traditional classroom experiences, Merck created web-based e-learning opportunities as well. For example, in association with Forum Corporation, Merck piloted the use of an online 560-degree diagnostic tool called Performance Compass for its Leadership Development Program. The tool helps managers assess their developmental needs and then connects them to a wide array of external training and educational resources. Similarly, Merck worked with Developmental Dimensions International (DDI) to implement an On-line Performance and Learning (OPAL) system that provides coaching tips and learning tools and resources for employees and managers.

16. As organizations think about making investments in IT, HR and line managers should jointly plan for its implementation. In small companies, in particular, managers should consider the following factors in their needs assessment for IT investments:

17. Initial costs and annual maintenance costs
Fit of software packages to the employee base
Ability to upgrade Increased efficiency and time savings
Compatibility with current systems
User-friendliness
Availability of technical support
Needs for customizing
Time required to implement
Training time required for HR and payroll

18. CHALLENGE 3: Managing Change
Technology and globalization are only two of the forces driving change in organizations and HRM. As John Kotter, leadership guru, noted, "Efforts to transform organizations have increased dramatically. These changes are both driven by forces associated with technology, the globalization of competition and market and workforce demographics.”

19. Most employees--regardless of occupation--understand that the way things were done five or ten years ago is very different from how they are done today (or will be done in the future).
Responsibilities change, job assignments change, work processes change. And this change is continuous--apart of the job--rather than temporary. Nevertheless, people often resist change because it requires them to modify or abandon ways of working that have been successful or at least familiar to them．

20. Managing Change Types of Change Reactive change Proactive change
Change that occurs after external forces have already affected performance
Proactive change
Change initiated to take advantage of targeted opportunities
Formal change management programs help to keep employees focused on the success of the business.

21. Managing Change Why Change Efforts Fail:
Not establishing a sense of urgency.
Not creating a powerful coalition to guide the effort.
Lacking leaders who have a vision.
Lacking leaders who communicate the vision.
Not removing obstacles to the new vision.
Not systematically planning for and creating short-term “wins.”
Declaring victory too soon.
Not anchoring changes in the corporate culture.

22. CHALLENGE 4: Developing 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.

23. Managers are evaluated on their progress toward meeting developmental goals. These goals focus on skill development and gaining new competencies and capabilities. In a growing number of instances, pay is attached to this knowledge and skill acquisition. Skill-based pay, for example, rewards employees for each new class of jobs they are capable of performing.

24. 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.
Six Sigma
A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.

25. Responding to the Market
Reengineering
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
Requires that managers create an environment for change.
Depends on effective leadership and communication processes.
Requires that administrative systems be reviewed and modified.

26. Today at Ford Motor Company, their most popular slogan is “Ford Has a Better Idea.” Back in the 1980s when Ford Motor Company total quality management practices were vast, the slogan of “Quality Is Job 1” made more sense.
Ford wanted to produce better quality products, a stable work environment for the workforce, effective management, and profitability; all by the 1990s, “Quality is Job 1” became “Quality People, Quality Products.”

27. CHALLENGE 6: Containing Costs
Downsizing
The planned elimination of jobs.
Outsourcing
Contracting outside the organization to have work done that formerly was done by internal employees.
Employee Leasing
The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.

28. Companies with No Lay-off Policy
Companies with Creative Layoff Strategies

29. Productivity Enhancements
ENVIRONMENT
Empowerment
Teams
Leader support
Culture
Perf = f (A,M,E)
MOTIVATION
Job enrichment
Promotions
Coaching
Feedback
Rewards
ABILITY
Recruitment
Selection
Training
Development

30. Demographic and Employee Concerns
In addition to the competitive challenges racing organizations, managers in general-and HR managers in particular-need to be concerned about changes in the makeup and the expectations of their employees.

31. Gender Distribution
Women
Men

32. Gender Distribution
Women
Men

33. Education

34. Education

35. Education

36. Changing Demographics
Social Issues and HRM
Changing Demographics
Shrinking pool of entry-level workers
Productivity
Individual differences
Retirement benefits
Social Security contributions
Skills development
Use of temporary employees

37. Social Issues and HRM (cont’d)
Employer/Employee Concerns
Job as an entitlement
Right to work
Whistle-blowing
Employment at will
AIDS
Comparable worth
Concern for privacy
Mandated benefits

38. Social Issues and HRM (cont’d)
Attitudes Toward Work and Family
Day care
Flextime
Job sharing
Alternative work schedules
Elder care
Job rotation
Parental leave
Telecommuting

39. Cultural Changes and HRM
The attitudes, beliefs, values, and customs of people in a society are an integral part of their culture. Naturally, their culture affects their behavior on the job and the environment within the organization, influencing their reactions to work assignments, leadership styles, and reward systems. Like the external and internal environments of which it is a part, culture is undergoing continual change. HR policies and procedures therefore must be adjusted to cope with this change.

40. Employee Rights
Book 5 and Book 6 of The Labor Code of the Philippines

41. Concern for Privacy
HR managers and their Staffs as well as line managers in positions of responsibility generally recognize importance of discretion in handling all types of information about employees．

42. Changing Attitude Towards Work
Employees today are less likely to define their personal success only in terms of financial gains. This trend has been evolving for some time, but observers have noted that it has peaked since the terrorist attacks of September

43. Changing Attitude Towards Work
Personal fulfillment and self-expression-as well as a balance between work and family are key factors in a complex array of job attitudes. Many people view life satisfaction as more likely to result from balancing the challenges and rewards of work with those in their personal lives.

44. Changing Attitude Towards Work
Though most people still enjoy work, and want to excel at it, they tend to be focused on finding interesting work and may pursue multiple careers rather than being satisfied with just “having a job.” People also appear to be seeking ways of living that are less complicated but more meaningful. These new lifestyles cannot help having an impact on the way employees must be motivated and managed. Consequently; HRM has become more complex than it was when employees were concerned primarily with economic survival.

45. Balancing Work and Family
Work and the family are connected in many subtle and not-so-subtle social, economic, and psychological ways. Because of the new forms that the family has taken-such as the two-wage-earner and the single-parent fatal/y--work organizations find it necessary to provide employees with more family-friendly options.

46. Balancing Work and Family
“Family friendly” is a broad term that may include unconventional hours, day care, part-time work, job. shying, pregnancy leave, parental leave, executive transfers, spousal involvement in career planning, assistance with family problems, and telecommuting.

47. Balancing Work and Family
Aetna Life and Casualty has cut turnover by 50 percent since it began to offer six-month parental leaves, coupled with an option for part-time work when employees return to the job.
Bank of America provides tip to six weeks of paid leave for fathers. Further, Bank of America encourages all its employees to visit their children's schools or volunteer at any school - on company time.

48. Responsibilities of the Human Resources Manager
Advice and Counsel
Service
Policy formulation and implementation
Employee Advocacy

49. Human Resource Competency Model
Business Mastery
Business acumen
Customer orientation
External Relations
HR Mastery
Staffing
Performance appraisal
Rewards system
Communication
Organization design
Change Mastery
Interpersonal skills and influence
Problem-solving skills
Innovation and creativity
Personal Credibility
Trust
Personal relationships
Lived values
Courage

50. Model of Diversity Management Strategy