Human resource management challenge How a firms human

Human resource management challenge How a firm’s human resources influence its performance? n How firms can use HR initiatives to cope with workplace changes and trend such as a more diverse workforce, the global economy, downsizing, and new legislation? n What is distinguish between the role of the HR department and the role of the firm’s managers in utilizing human resources effectively? n How formulation and implementation HR strategies that can help the firm achieve a 2 sustained competitive advantage? n

Key HR challenges for today’s manager n Environment n Organization n Individual 3

Global Business Environment n Rapid change n Rise of the internet n Workforce diversity n Globalization n Legislation n Evolving work and family roles n Skill shortages and the rise of the service sector 4

Organization + Management n Competitive position: cost, quality, distinctive capacities n Decentralization n Organizational restructuring n Self-managed work teams n Small businesses n Organizational culture n Technology n Outsourcing 5

Individual + Teams n Matching people and organization n Ethical dilemmas and social responsibility n Productivity n Empowerment n Brain drain n Job insecurity 6

Planning and implementing strategic HR policies n The Process of formulating HR strategies and establishing programs or tactics to implement them. 7

The benefits of HR planning n n n n Encouragement of proactive rather than reactive behavior Explicit communication of company goals Stimulation of critical thinking and ongoing examination of assumptions Identification of gaps between current situation and future vision Encouragement of line managers’ participation Identification of HR constraints and opportunities Creation of common bonds 8

The challenges of strategic HR planning n n n n n Maintaining a competitive advantage Reinforcing overall business strategy Avoiding excessive concentration on day-to-day problems Developing HR strategies suited to unique organizational features Coping with the environment Securing management commitment Translating the strategic plan into action Combining intended strategy and emergent strategies 9 Accommodating change

Strategic HR choices n The options available to a firm in designing its human resources system. 10

Strategic HR choices : Work flows Efficiency VS Innovation n Control VS Flexibility n Explicit job descriptions VS Broad job classes n Detailed work planning VS Loose work planning n 11

Strategic HR choices : Staffing Internal recruitment VS External recruitment n Supervisor makes hiring decision VS HR department makes hiring decision n Emphasis on “fit” of applicant with firm culture VS Emphasis on applicants’ technical qualifications and skills n Informal hiring of new employees VS Formal hiring of new employees n 12

Strategic HR choices: Employee separations n Voluntary inducements to retire VS Layoffs n Hiring freeze VS Recruit as needed n Continuing support for terminated employee VS Letting laid-off workers fend for themselves n Preferential rehiring policy VS No preferential treatment 13

Strategic HR choices : Performance appraisal n Customized appraisal VS Uniform appraisal procedures n Developmental appraisals VS Controloriented appraisals n Multipurpose appraisals VS Narrow-focus appraisals n Multiple input for appraisal VS Supervisor input only 14

Strategic HR choices : Training and development n Individual training VS Team-bases training n On-the-job training VS External training n Job-specific training VS Generic training emphasizing flexibility n “Buy” skills by hiring experienced workers at a higher wage VS “Make” skills by providing training to less 15

Strategic HR choices : Compensation n Fixed pay VS Variable pay n Job-based pay VS Individual-based pay n Seniority-based pay VS Performance-based pay n Centralized pay decisions VS Decentralized pay decision 16

Strategic HR choices : Employee relations and labor relations n Top down communication VS Bottom up communication n Union suppression VS Union acceptance n Adversarial approach VS Enlightened management 17

Strategic HR choices : Employment rights n Emphasis on discipline to reduce mistakes VS Emphasis on preventive action to reduce mistakes n Emphasis on employer protection VS Emphasis on employee protection n Informal ethical standards VS Explicit ethical codes and enforcement procedures 18

Strategic HR choices : International management n Create global company culture VS Adapt to local culture n Reply on expatriates VS Reply on country nationals n Repatriation agreement VS No formal repatriation agreement n Universal company policies VS Countryspecific company policies 19

Effective HR strategy formulation and implementation Organizational strategies consistency fit HR Strategies fit Organizational characteristics Environment Improved firm performance fit consistency Organizational capabilities 20

The relative contribution of an HR strategy to firm performance increase The greater the match between the HR strategy and the firm’s overall organizational strategies. n The greater the extent to which the HR strategy is attuned to the environment in which the firm is operating. n The more the HR strategy is molded to unique organization features. n The more the HR strategy enables the firm to capitalize on its distinctive competencies. n The more the HR strategies are mutually consistent or reinforce one another. 21 n

Selecting HR strategies to increase firm performance Fit with organization strategies n Fit with the environment n Fit with organizational characteristics n Fit with organizational capabilities n 22

Suwit Srimai Faculty of Technology & Management Prince of Songkla University, Thailand e-mail : suwit. s@psu. ac. th