Some Responsibilities of HR Departments - California swalkerl/M460/2008.4/PPT/ Marketing – Chapter 6 Handout 6-1-5 What Roles Do HR Departments Perform? Administrative Services and Transactions Business Partner Services Human Strategic Partner Resources 1-6 What Competencies Do HR

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  • Basic Marketing Chapter 6Handout 6-

    1-1McGraw-Hill/Irwin Copyright 2008 by The McGraw-Hill Companies, All Rights Reserved.

    Human Resource ManagementGaining a Competitive Advantage

    Chapter 1Human Resource Management:

    Gaining a Competitive Advantage

    1-2

    Learning Objectives roles and activities of a companys human resource

    management function

    implications of the economy, the makeup of the labor force, and ethics for company sustainability

    how human resource management affects a companys balanced scorecard

    Strategies companies should use to compete in the global marketplace

    the characteristics of the workforce and how they influence human resource management

    human resource management practices that support high-performance work systems

    human resource management practices

    1-3

    Introduction

    Competitiveness a companys ability to maintain and gain market share

    Human resource management the policies, practices, and systems that influence employees behavior, attitudes, and performance

    1-4

    Some Responsibilities of HR Departments

    Employment and recruiting Training and development Compensation Benefits Employee services Employee and community

    relations Personnel records Health and safety Strategic planning

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    1-5

    What Roles Do HR Departments Perform?

    AdministrativeServices and Transactions

    Business Partner Services

    Strategic PartnerHumanResources

    1-6

    What Competencies Do HR Professionals Need?

    1-7

    How is the HRM Function Changing?

    Time spent on administrative tasks is decreasing and its roles as a strategic business partner, change agent, and employee advocate are increasing

    This shift presents two important challenges: Self-service giving employees online access to

    information about HR issues Outsourcing the practice of having another

    company provide services

    1-8

    How is the HRM Function Changing?

    As part of its strategic role, one of the key contributions that HR can make is to

    engage in evidence-based HR.

    Evidence-based HR demonstrating that human resource practices have a positive influence on the companys bottom line or key stakeholders.

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    1-9

    The HRM Profession

    HR salaries vary depending on education and experience as well as the type of industry

    The primary professional organization for HRM is the Society for Human Resource Management (SHRM)

    1-10

    Competitive Challenges Influencing HRM Three competitive challenges that

    companies now face will increase the importance of HRM practices:

    The GlobalChallenge

    The Challenge ofSustainability

    The TechnologyChallenge

    1-11

    The Sustainability Challenge

    Sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment

    Stakeholders refers to shareholders, the community, customers, and all other parties that have an interest in seeing that the company succeeds

    1-12

    The Sustainability ChallengeSustainability includes the ability to:

    Provide a return to shareholders

    Provide high-quality products, services, and work experiences for employees

    Increase value placed on intangible assets and human capital

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    The Sustainability Challenge

    Social responsibility

    Adapting to changing characteristics and expectations of the labor force

    Legal and ethical issues

    Effectively use new work arrangements

    1-14

    The Sustainability Challenge

    The changing structure of the economy Skill demands for jobs are changing Knowledge is becoming more valuable

    Intangible assets -- human capital, customer capital, social capital, and intellectual capital

    Knowledge workers employees who contribute to the company through a specialized body of knowledge

    Empowerment giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service

    Learning organization

    1-15

    The Sustainability Challenge

    Changes in Employment Expectations:

    Psychological contract

    Alternative work arrangements

    1-16

    The Balanced Scorecard

    The balanced scorecard gives managers the opportunity to look at the company from the perspective of internal and external customers, employees and shareholders.

    The balanced scorecard should be used to: Link human resource management activities to the

    companys business strategy. Evaluate the extent to which the human resource

    function is helping the companys meet its strategic objectives.

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    1-17

    The Balanced Scorecard

    How do customers see us?

    At what must we excel?

    Can we continue to improve and create value?

    How do we look to shareholders?

    1-18

    Customer Service and Quality Emphasis

    Total Quality Management (TQM)

    Core values of TQM include: designing methods and processes to meet the

    needs of internal and external customers all employees receive training in quality promotion of cooperation with vendors,

    suppliers, and customers management gives feedback on progress

    1-19

    Customer Service and Quality Emphasis

    Malcolm Baldrige National Quality Award

    ISO 9000:2000

    Six Sigma process

    1-20

    Changing DemographicsDiversity of the Workforce

    Internal labor force is the labor force of current employees

    External labor market includes persons actively seeking employment

    The U.S. workforce is aging rapidly

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    Managing a Diverse WorkforceTo successfully manage a diverse workforce, managers must develop a new set of skills, including:

    Communicating effectively with employees from a wide variety of cultural backgroundsCoaching and developing employees of different ages, educational backgrounds, ethnicity, physical ability, and raceProviding performance feedback that is based on objective outcomesCreating a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative

    1-22

    Legal and Ethical Issues

    Five main areas of the legal environment have influenced HRM over the past 25 years Equal employment opportunity legislation Employee safety and health Employee pay and benefits Employee privacy Job security

    Women and minorities still face the glass ceiling

    Sarbanes-Oxley Act of 2002

    1-23

    Legal and Ethical Issues

    Ethical HR practices: HRM practices must result in the

    greatest good for the largest number of people

    Employment practices must respect basic human rights of privacy, due process, consent, and free speech

    Managers must treat employees and customers equitably and fairly

    1-24

    The Global Challenge

    To survive companies must compete in international markets

    Be prepared to deal with the global economy.

    Offshoring exporting of jobs from developed countries to less developed countries

    Onshoring exporting jobs to rural parts of the United States

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    1-25

    The Technology Challenge

    The overall impact of the Internet

    The Internet has created a new business model e-commerce in which business transactions and relationships can be conducted electronically

    1-26

    The Technology Challenge

    Advances in technology have:changed how and where we workresulted in high-performance work

    systemsincreased the use of teams to improve

    customer service and product qualitychanged skill requirementsincreased working partnershipsled to changes in company structure

    and reporting relationships

    1-27

    The Technology Challenge

    Advances in technology have:increased the use and availability of

    Human Resource Information Systems (HRIS)

    increased the use and availability of e-HRM

    increased the competitiveness in high performance work systems

    1-28

    Meeting Competitive Challenges Through HRM Practices

    HRM practices that help companies deal with the four competitive challenges can be grouped into four dimensions The human resource

    environment Acquiring and preparing human

    resources Assessment and development of

    human resources Compensating human resources

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    Meeting Competitive Challenges Through HRM Practices

    Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness

    Customer needs for new products or services influence the number and type of employees businesses need to be successful

    1-30

    Meeting Competitive Challenges Through HRM Practices

    Managers need to ensure that employees have the necessary skills to perform current and future jobs.

    Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality, and customer service

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