1. Chapter 1 The Rewards and Challenges of Human Resource Management

2. Learning Outcomes
Explain how human resources managers and other managers can have rewarding careers by helping their firms gain a sustainable competitive advantage through the strategic utilization of people
Explain how good human resources practices can help a firm’s globalization, corporate-social responsibility, and sustainability efforts
Describe how technology can improve how people perform and are managed

3. Learning Outcomes
Explain the dual goals HR managers have in terms increasing productivity and controlling costs
Discuss how firms can leverage employee differences to their strategic advantage and how educational and cultural changes in the workforce are affecting how human resources manager engage employees
Provide examples of the roles and competencies of today’s HR managers and their relationship with other managers

4. Human Resource Management
Process of managing human talent to achieve an organization’s objectives
Employees and managers with better understanding of the firm’s business
Help achieve its strategies through effective utilization of people and their talents

5. Human Capital and HRM
Human capital: Knowledge, skills, and capabilities of individuals that have economic value to an organization
Managers should develop strategies for:
Identifying, recruiting and hiring the best available talent
Developing employees in firm specific ways
Helping employees generate new ideas and generalize them throughout the company
Encouraging information sharing
Rewarding collaboration and teamwork

6. Figure 1.1 - Overall Framework of Human Resource Management

7. Responding Strategically to Changes in the Marketplace
Making adjustments to the labor force via:
Downsizing: Planned elimination of jobs
Outsourcing: Hiring outside the company to perform business processes previously done within the firm
Offshoring: Sending jobs to other countries
Adopting cost-cutting strategies
Enhancing benefit programs
Improving quality
Expanding market shares and product lines

8. Responding Strategically to Changes in the Marketplace
An organization that successfully engineers change:
Links it to the business strategy
Shows how it creates quantifiable benefits
Engages key employees, customers, and suppliers early
Makes an investment to implement and sustain it

9. Competing, Recruiting, and Staffing Globally
Companies make it possible for consumers to buy anything, anytime, anywhere
Engage in partnerships, mergers, and acquisitions
Globalization is blurring national identities of products
Lower trade barriers with free-trade agreements
General Agreements on Tariff and Trade (GATT) paved the way for North American Free Trade Agreement (NAFTA) and the European Union
GATT was replaced by the World Trade Organization (WTO)

10. Competing, Recruiting, and Staffing Globally
Issues relating to different geographies affect HRM
Different cultures, employment laws, and business practices
Safety of employees and facilities abroad

11. Setting and Achieving Corporate Social Responsibility and Sustainability Goals
Corporate social responsibility: Responsibility of firms to act in the best interests of the people and communities affected by its activities
Sustainability: Ability to produce goods or services without damaging the environment and depleting the world’s resources
Good reputation for pursuing such efforts can enhance company revenues and improve their ability to attract good talent

12. Technology Challenges
Organizations are leveraging information explosion
Collaborative software: Allows workers to interface and share information with one another electronically
Shift from touch labor to knowledge workers
Knowledge workers: Workers whose responsibilities extend beyond the physical execution of work to include planning, decision-making, and problem-solving
Human resources information system (HRIS)
Streamlines HR processes, makes information readily available to managers and employees, and enables HR departments to focus on the firm’s strategies

13. Productivity and Cost Challenges
Productivity - Output gained from a fixed amount of inputs
Can be increased by reducing inputs and adding more human and physical capital to the process
Size of workforce should be managed to maximize productivity and contain costs
Offshoring
Outsourcing
Nearshoring: Bringing jobs closer to domestic countries

14. Productivity and Cost Challenges
Homeshoring: Outsourcing work to domestic workers who work out of their homes
Furloughing: Practice of requiring employees to take time off for either no pay or reduced pay
Hiring part-time employees
Employee leasing: Dismissing employees who are then hired by a leasing company and contracting with that company to lease back the employees

15. Employee Challenges Workforce is increasing in diversity
Organizations are doing more to address employee concerns and maximize benefits of different employees
HR managers should be aware of the educational abilities of employees in the organization
Shift of cultural dynamics in labor force are affecting:
Employee rights and privacy concerns
Attitudes towards work
Employee engagement: Extent to which employees are enthused about their work and committed to it
Efforts to balance work and family

16. Role of HR Managers and Their Partnership with Other Managers
Responsibilities of HR managers
Strategic advice and counsel
Service
Policy formulation and implementation
Employee advocacy
Successful organizations combine the experience of line managers with the expertise of HR managers
To develop and utilize the talents of employees to their greatest potential
Line managers: Non-HR managers who are responsible for overseeing the work of other employees

17. Figure 1.7 - Human Resource Competency Model