CHAPTER 1 Human Resource Management Gaining a Competitive

CHAPTER 1 Human Resource Management: Gaining a Competitive Advantage IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997

History of Human. Resource Management Practises 1920 -30 1910 Scientific Management - performance related to working conditions 1940 First personnel depts. Hawthorne studies 1960 -70 Employee relations - comply with laws - reactive - stand alone IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997 World War II - Selection tests 1980 - Now Integration with Business operations

Human Resource Management THE 21 st CENTURY What’s Next ? IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997

COMPETITIVENESS Dimensions of HR Practises • • • Managing Internal & External Environment Assessing Work & Work Outcomes Acquiring HR Developing HR Rewarding HR IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997

External Challenges Facing Organizations Legal Globalization Corporate Technology IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997 Economic Competitiveness Social / Cultural Demographic

The Organization and the Environment Economic Political / Legal Customer Labor Market Organization Competitors Suppliers Technological Social-Cultural

The Role of HR in Strategy Formulation Administrative Linkage Strategic Planning One-Way Linkage Strategic Planning Two-Way Linkage Strategic Planning Integrative Linkage Strategic Planning HR Function SOURCE: Adapted from K. Golden and V. Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process, ” Human Resource Management 24 (1985): 429 -451.

Strategy Formulation External Analysis - opportunities - threats Mission - reason for being Goals Strategic Choice - what it hopes to achieve - ways to fulfill goals and mission Internal Analysis - strengths - weaknesses IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997 HR Input

Strategic HR Management Strategic Choice HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits HR Needs - skills - behaviors - culture IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997 HR Capability HR Actions - skills - abilities - knowledge - behaviors - results Emergent Strategies Firm Performance - productivity - quality - profitability

Product Life Cycle and Operating Strategies Growth Sales Porter strategies Maturity Formation Differentiation Cost Leadership

HR needs in Strategy Formulation HR Role Differentiation Focus of firm - creative, risk-taking - efficiency Employee role - broader tasks creative risk-takers - broad career paths - specific & repetitive Training Staffing Compensation Performance management - recruit more from outside - external pay equity - results-oriented IRWIN ©a Times Mirror Higher Education Group, Inc. , company, 1997 Cost Leadership - specific/short-term skills - promote internally - internal pay equity - behavior-oriented