The increasing productivity and controlling costs

Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessissi ble website, in whole or in part. ble website, in whole or in part.
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
2
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
3
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Resources Management
Process of managing human talent to achieve an
organization’s objectives
Importance
Managers play a key role in selecting, training,
motivating, appraising and promoting employees
Good personnel help build business
Helps understand one’s rights and responsibilities as an
employee
4
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Capital and HRM
Human capital: Knowledge, skills, and capabilities of
individuals that have economic value to an
organization
Intangible and cannot be managed the way
organizations manage jobs, products, and technologies
Organizations should utilize employee knowledge and
invest in their development
5
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 1.1 – Overall Framework of
Human Resource Management
6
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Responding Strategically to Changes in
the Marketplace
Making adjustments in labor force
Downsizing: Planned elimination of jobs
Outsourcing: Hiring outside the company to perform
processes previously done within the firm
Offshoring: Sending jobs to other countries
Implementing cost-cutting strategies
Enhancing benefit programs
Improving quality
Expanding market shares and product lines
7
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Responding Strategically to Changes in
the Marketplace
People resist change as it involves modifying or
abandoning familiar ways of working
To manage change, executives and managers have to:
Envision the future
Communicate vision to the employees
Set clear expectations for performance
Develop capabilities to execute by reorganizing people
and reallocating assets
Make an investment in implementing and sustaining
the change
8
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Responding Strategically to Changes in
the Marketplace
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
Strategic changes could be proactive or reactive
To provide knowledge on core business issues,
companies:
Assign HR representatives to core business teams
Rotate non-HR managers into HR positions and vice
versa
9
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Competing, Recruiting, and Staffing
Globally
Integration of world economies and markets have led
companies to:
Look for opportunities abroad
Fend off foreign competitors domestically
Search for the right employees
Companies are making it possible for people to buy
anything, anytime, anywhere
Companies of all sizes are engaging in partnerships,
mergers, and acquisitions
10
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Competing, Recruiting, and Staffing
Globally
National identities of products are blurring
Lower trade barriers with free-trade agreements
General Agreements on Tariffs and Trade (GATT) paved
the way for North American Free Trade Agreement
(NAFTA) and European Union
GATT was replaced by the World Trade Organization
(WTO)
11
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Competing, Recruiting, and Staffing
Globally
Issues in HRM due to globalization
Dealing with better informed employees who are willing
to pursue global job opportunities
Gauging the knowledge and skill base of workers
worldwide
Understanding how to hire and train them
Relocating and training foreign managers abroad to
direct the efforts of an international workforce
12
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Setting and Achieving Corporate Social
Responsibility and Sustainability Goals
Corporate social responsibility: Responsibility of
the firm to act in the best interests of the people and
communities affected by its activities
Improves company’s earnings and helps avoid lawsuits
Sustainability: Ability to produce a good or service
without damaging the environment or depleting a
resource
Companies are making strides to reduce their carbon
footprints
HR should spearhead the development and
implementation of corporate citizenship
13
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology Challenges
Organizations are taking advantage of information
technology advancements
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
Companies spend on training and virtual learning
14
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology Challenges
Human resources information system (HRIS)
Provides current and accurate data for purposes of
control and decision-making
Used to:
Automate payroll processing and administer benefits program
Access employee records
Recruit, screen, and pretest applicants online
Train, track, and select employees
Open source HRIS software can be good low cost
solution for startups and small businesses
15
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Productivity and Cost Challenges –
Maximizing Productivity
Productivity – Output gained from a fixed amount of
inputs
Can be increased by:
Reducing inputs
Adding more human and physical capital to the process
Additional productivity will have to come from:
Enhanced ability of employees
Motivation
Work environment
16
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Productivity and Cost Challenges –
Managing the Size of the Workforce
Should match the firm’s demand requirements,
strategic decision, and competition
Offshoring – Aids quicker delivery of products
Outsourcing – Helps reduce costs and focus on
important activities
Nearshoring: Bringing jobs closer to domestic
countries
17
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Productivity and Cost Challenges –
Managing the Size of the Workforce
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
18
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Productivity and Cost Challenges –
Managing Pay and Benefits
Concerns – High health care costs and compliance with
new health reforms
Companies are charging higher premiums to cover
spouses
Provide employees a set amount to purchase health
insurance on their own
Employee leasing: Dismissing employees who are then
hired by a leasing company and contracting with that
company to lease back the employees
Provides benefits that small companies cannot afford
19
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Responding to the Demographic and
Diversity Challenges of the Workforce
HR managers analyze the capabilities of demographic
groups and how well each is represented in fastgrowing and slow-growing occupations
Forecast trends to support organizational strategies
Labor force participation rate – Number people
employed or actively looking for work
Ethnic and racial differences
Age and gender distribution
20
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 1.2 – Labor Force Participation Rates of Workers of
Hispanic origin versus Non-Hispanic Origin
21
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 1.3 – Labor Force Participation Rates
of Workers in the Labor Force by Their Ages
22
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 1.4 – Labor Force Participation
Rates by Gender
23
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Adapting to Educational Shifts Affecting
the Workforce
Education attainment of the labor force has risen
dramatically
Helps a person stay out of the ranks of the unemployed
American students are said to lag behind in math and
science test scores
HR managers have to find strategies to help their firms
compete, despite challenges
24
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Adapting to Cultural and Societal
Changes Affecting the Workforce
Culture and society affect one’s behavior on the job
and the environment within the organization
Influences reactions to:
Work assignments
Leadership styles
Reward systems
HR policies should be adjusted to cope with ongoing
changes
Changing employee rights
Heightened privacy concerns of employees
25
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Adapting to Cultural and Societal
Changes Affecting the Workforce
Employers are implementing privacy policies, limit the
use of social security numbers and conduct
background checks
Excessive monitoring could lead to ligation
Changing attitudes toward work and how they relate
to employee engagement
Employees are focused on finding interesting work
and pursuing multiple careers
Employee engagement: Extent to which employees are
enthused about their work and committed to it
Balancing work and family
26
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Role of HR Managers and T heir
Partnership with Other Managers
HR managers help firms choose the best strategies to
compete globally
Select ideal HR systems, maximize productivity and
manage benefits
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
27
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Role of HR Managers and Their
Partnership with Other Managers
Responsibilities of human resources managers
Strategic advice and counsel
Service
Policy formulation and implementation
Employee advocacy
28
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 1.7 – Human Resource Competency
Model
29