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CHAPTER 1 AN INVESTMENT PERSPECTIVE OF HUMAN RESOURCE MANAGEMENT,PowerPoint Presentation by Charlie Cook Copyright 2002 South-Western. All rights reserved,天马行空官方博客:/tmxk_docin ;QQ:1318241189;QQ群:175569632,Copyright 2002 South-Western. All rights reserved.,12,The Strategic View of Human Resources,Employees are human assets that increase in value to the organization and the marketplace when investments of appropriate policies and programs are applied. Effective organizations recognize that their employees do have value, much as same as the organizations physical and capital assets have value. Employees are a valuable source of sustainable competitive advantage.,Copyright 2002 South-Western. All rights reserved.,13,Copyright 2002 South-Western. All rights reserved.,14,Sources of Employee Value,Technical Knowledge Markets, Processes, Customers, Environment Ability to Learn and Grow Openness to new ideas Acquisition of knowledge and skills Decision Making Capabilities Motivation Commitment Teamwork Interpersonal skills, Leadership ability,Copyright 2002 South-Western. All rights reserved.,15,Valuation of Human Assets,Implications for Individuals and Organizations Determination of compensation Internal and external equity for employees in return for their contributions to the organization. Organization placement of resources and returns on employee development are aligned and well-matched. Advancement opportunities Developing current employees creates motivation and permits promotion from within. Development of retention strategies Effective means of retaining valuable employees allows for the recapture of the invested costs of their development.,Copyright 2002 South-Western. All rights reserved.,16,Investment Orientation,Copyright 2002 South-Western. All rights reserved.,17,The Investment-Oriented Organization,Organizational Characteristics Sees people as central to its mission/strategy. Has a mission statement and strategic objectives that espouse the value of human assets in achieving goals. Has a management philosophy that encourages the development and retention of human assets and does not treat or regard human assets in the same ways as physical assets.,Copyright 2002 South-Western. All rights reserved.,18,Investment Orientation Factors,Senior Management Values and Actions An organizations willingness to invest in its human resources is determined by the “investment orientation” of its managers. Attitude Toward Risk Investment in human resources is inherently riskier due to lack of absolute “ownership” of the asset. Nature of Skills Needed by Employees The more likely that skills developed by employees are marketable outside the firm, the more risky the firms investment in the development of those skills.,Copyright 2002 South-Western. All rights reserved.,19,Investment Orientation Factors,Utilitarian (“Bottom Line”) Mentality An attempt is made to quantify employee worth to the organization through a cost-benefit analysis. The “soft” benefits of HR programs and polices are difficult to objectively quantify because they affect many different organizational areas and have differential effects on individual employees. Availability of Outsourcing If cost-effective outsourcing is available, investments will be made only in HR activities producing the highest returns and largest sustainable competitive advantages.,Copyright 2002 South-Western. All rights reserved.,110,Reading 1.1: The SWA Value Cycle,Value at Southwest Airlines is: 1. Created through satisfaction of employee needs. 2. Converted to customer and share holder value via organizational capabilities (the design of specific operating processes). 3. Captured by SWA as competitive advantage through lower costs and superior service (productivity) in relation to its competitors.,Copyright 2002 South-Western. All rights reserved.,111,Reading 1.2: Effective HRM Practices,Employment Security Selectivity in Recruiting High Wages Incentive pay Employee Ownership Information Sharing Participation & Ownership Self-Managed Teams,Training & Development Cross-Utilization & Cross-Training Symbolic Egalitarianism Wage Compression Promotion From Within Taking the Long View Measurement of Practice Overall Philosophy,CHAPTER 2 TRENDS AFFECTING HUMAN RESOURCE MANAGEMENT,PowerPoint Presentation by Charlie Cook Copyright 2002 South-Western. All rights reserved,Copyright 2002 South-Western. All rights reserved.,113,Major Factors Affecting HRM,Strategic HRM,Technological Advancement,Demographics and Diversity,Globalization,Copyright 2002 South-Western. All rights reserved.,114,Technology and HRM,Copyright 2002 South-Western. All rights reserved.,115,Technology Challenges for HRM,Copyright 2002 South-Western. All rights reserved.,116,Workforce Demographic Changes,The “Graying” of the Workforce Negative Aspects of Older Workers Perceived resistance to change by older workers. Increased health-care costs for senior workers Blocking advancement opportunities for younger workers Higher wage and salary costs for senior workers Positive Aspects of Older Workers As productive or more productive than younger workers Have more organizational loyalty than younger workers Possess broader industry knowledge and professional networks,Copyright 2002 South-Western. All rights reserved.,117,Workforce Demographic Changes,Baby Boomers (19451962) In excess supply in middle management ranks HR challenge is to manage “plateaued” workers Baby Busters (1963mid-1970s) Are career bottlenecked by the Boomers Who have skills in high demand are doing and will do well Generation “X”ers (late 1970searly 1980s) Have life-long exposure to technology and constant change Seek self-control, independence, personal growth, creativity Are not focused on job security or long-term employment.,Copyright 2002 South-Western. All rights reserved.,118,New Employee/Workplace Dynamics,Emphasis on the Management of Professionals Establishment of separate career tracks Technical/Professional, Managerial /Administrative Use of project teams Less Employee Loyalty, More Loyal to Self Staying with employers for shorter periods; demanding more meaningful work and involvement in organizational decisions Increased Personal and Family Dynamic Effects More single-parent families, dual-career couples, and domestic partners Increased Nontraditional Work Relationships Part-time, consulting, and temporary employment flexibility Outsourcing and entrepreneurial opportunities,Copyright 2002 South-Western. All rights reserved.,119,Managing Workplace Diversity,Understanding and Appreciating Diversity Is critical to effectively marketing to ethnic and minority groups Is promoted by having a diverse workforce at all organization levels Helps ensure that hiring and promotion decisions are unbiased by person differences Diversity Management Programs/Initiatives Must be integrated with organizations mission and objectives Help key decision makers identify diversitys benefits to the organization Make critical decisions about implementing the optimal program/initiative contingent on the organization and its people, mission and culture.,Copyright 2002 South-Western. All rights reserved.,120,Reading 2.1: Telecommuting,Benefits Reduced work commuting time Employee retention Increased geographic recruiting flexibility Reduced costs of doing business (reduced office space) Significant productivity gains,Obstacles Difficulty in measuring performance Determining eligible jobs Individual employee characteristics Assumption of home office expenses/liabilities Managerial resistance to telecommuting Increased networking cost,Copyright 2002 South-Western. All rights reserved.,121,Reading 2.2: Workplace Diversity,Issues Affecting Diversity Policymaking Why diversity is internally and externally important to the organization? How is diversity related to the current and future mission and strategic objectives of the organization? How is diversity to be defined in its inclusion and exclusion of the extent, composition, and recognition of “differences”? Should the organization make special efforts to attract a diverse workforce? and for what purposes? How do existing employees and constituents feel about diversity? What specific types of diversity initiatives will be undertaken? and to meet what objectives?,CHAPTER 3 STRATEGIC PLANNING,PowerPoint Presentation by Charlie Cook Copyright 2002 South-Western. All rights reserved,Copyright 2002 South-Western. All rights reserved.,123,Strategic Management,Strategic Human Resource Management Involves aligning initiatives involving how people are managed with the organizational mission and objectives. Strategic Management Process Determining what needs to be done (how) to achieve corporate objectives over a three- to five year time span. Examining the organization and the competitive environment. Establishing a strategic (optimal) “fit” between the organization and its environment that engenders success. Reviewing and revising the strategic plan as necessary.,Copyright 2002 South-Western. All rights reserved.,124,Models of Strategy,Industrial Organization (O/I) Model The external environment is the primary determinant of organizational strategy rather than the internal decisions of its managers. The environment presents threats and opportunities. All competing organizations control or have equal access to resources. Resources are highly mobile between firms. Organizational success is achieved by offering goods and services at lower costs than competitors or by differentiating products such that they bring premium prices.,Copyright 2002 South-Western. All rights reserved.,125,Models of Strategy (contd),Resource-Based View (RBV) An organizations resources and capabilities, not external environmental conditions, should be the basis for strategic decisions. Competitive advantage is gained through the acquisition and value of organizational resources. Organizations can identify, locate and acquire key valuable resources. Resources are not highly mobile across organizations and once acquired are retained. Valuable resources are costly to imitate and non-substitutable.,Copyright 2002 South-Western. All rights reserved.,126,Copyright 2002 South-Western. All rights reserved.,127,The Mission Statement,Copyright 2002 South-Western. All rights reserved.,128,Corporate Strategies: Growth,Benefits Gaining economies of scale in operations and functions Enhancing competitive position vis-vis industry competitors Providing opportunities for employee professional development and advancement HR Issues Planning for new hiring Alerting current employees Ensuring quality and performance standards are maintained,Internal Methods Penetration of existing markets Developing new markets Developing new products or services for existing or new markets External Methods Acquiring other organizations Vertical integration HR Issues Merging organizations Dismissing redundant employees,Copyright 2002 South-Western. All rights reserved.,129,Corporate Strategies (contd),Stability Maintaining the status quo due to limited environmental opportunities for gaining competitive advantage. Few employees will have opportunities for advancement. Critical that management identify key employees and develop specific HR retention strategies to keep them. Turnaround or Retrenchment Downsizing or streamlining the organization in a cost-cutting attempt to adjust to the competitive environment. Few opportunities and many environmental threats. Important to develop HR practices to manage the “survivors.”,Copyright 2002 South-Western. All rights reserved.,130,Business Unit Strategies: Cost Leadership,Increases in efficiency and cutting of costs; then passing the savings to the consumer. Assumes price elasticity in demand for products or services is high; small change in price will cause large increase in demand. Assumes that customers are more price sensitive than brand loyal. HR strategy focuses on short-term performance measures of results and promoting efficiency through job specialization and cross-training.,Copyright 2002 South-Western. All rights reserved.,131,Business Unit Strategies: Differentiation,Attempting to distinguish organizational products or services from other competitors or creating the perception of a difference in order to demand a premium price from consumers. Organization offers employees incentives and compensation for creativity. HR strategy focuses on external hiring of unique individuals and on retaining creative employees.,Copyright 2002 South-Western. All rights reserved.,132,Business Unit Strategies: Focus,Business attempts to satisfy the needs of only a particular group or narrow segment of the market. Strategic intent is to gain consumer loyalty of neglected groups of consumers. Strategic HR issue is ensuring employee awareness of uniqueness of market segment. Thorough employee training and a focus on customer satisfaction are critical factors. Hiring members of the target segment who are empathetic to customer in the target segment.,Copyright 2002 South-Western. All rights reserved.,133,Business Unit Strategies: Logics of Control,Copyright 2002 South-Western. All rights reserved.,134,EXHIBIT 3-3: DYER AND HOLDERS TYPOLOGY OF STRATEGIES (contd),Business Unit Strategies: Logics of Control (contd),Copyright 2002 South-Western. All rights reserved.,135,Benefits of a Strategic Approach to HR,Facilitates the development of a high-quality workforce through its focus on the types of people and skills needed. Facilitates cost-effective utilization of labor, particularly in service industries where labor is generally the greatest cost. Facilitates the planning and assessment of environmental uncertainty and the adaptation of the organization to the external forces that impact the organization.,Copyright 2002 South-Western. All rights reserved.,136,Reading 3.2: The Five Ps Model of SHRM,Philosophy Statements of how the organization values and treats employees; essentially the culture of the organization. Policies Expressions of shared values and guidelines for action on employee-related business issues. Programs Coordinated and strategized approaches to initiate, disseminate, and sustain strategic organizational change efforts necessitated by strategic business needs.,Copyright 2002 South-Western. All rights reserved.,137,Reading 3.2: The Five Ps Model of SHRM,Practices HR practices that motivate behaviors that allow individuals to assume roles consistent with the organizations strategic objectives. Processes The continuum of participation by all employees in the specific activities of to facilitate the formulation and implementation of other activities.,Copyright 2002 South-Western. All rights reserved.,138,Reading 3.2: Implications of SHRM,Successful SHRM efforts begin with identification of strategic needs. Employee participation is critical to linking strategy and HR practices. Strategic HR depends on a systematic and analytical mindset. Corporate HR departments can have an impact on their organizations efforts to launch strategic initiatives.,CHAPTER 4 THE EVOLVING/ STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT,PowerPoint Presentation by Charlie Cook Copyright 2002 South-Western. All rights reserved,Copyright 2002 South-Western. All rights reserved.,140,Strategic Human Resource Management,Involves the development of a consistent, aligned collection of practices, programs, and policies to facilitate the achievement of the organizations strategic objectives. Requires abandoning the mindset and practices of “personnel management” and focusing on strategic issues than operational issues. Integration of all HR programs within a larger framework, facilitating the organizations mission and its objectives.,Copyright 2002 South-Western. All rights reserved.,141,Copyright 2002 South-Western. All rights reserved.,142,Traditional HR versus Strategic HR,Copyright 2002 South-Western. All rights reserved.,143,Barriers to Strategic HR,Copyright 2002 South-Western. All rights reserved.,144,Copyright 2002 South-Western. All rights reserved.,145,Copyright 2002 South-Western. All rights reserved.,146,Reading 4.1: HR and Organizational Excellence,HR can help deliver organizational excellence by: Becoming a partner with senior and line managers in strategy execution. Becoming expert in the way work is organized, delivering administrative efficiency to ensure that costs are reduced while quality is maintained. Becoming a champion for employees, representing their concerns to senior management and working to increase employee contributions. Becoming an agent of continuous transformation by shaping processes and organizational culture.,Copyright 2002 South-Western. All rights reserved.,147,Reading 4.1: Five Critical Business Challenges,Globalization Profitability through Growth Technology Intellectual Capital Change, Change, and More Change,Copyright 2002 South-Western. All rights reserved.,148,Reading 4.1: HR as Strategy Execution Partner,HR is responsible for defining an organizational structure as the model for the companys way of doing business. HR must be accountable for conducting an organizational audit. HR is to identify methods to renovate part of the organizational architecture. HR must take stock of its own work and set clear priorities.,Copyright 2002 South-Western. All rights reserved.,149,Reading 4.1: HR and Organizational Culture,HR can help bring about a cultural change by: Defining and clarifying the concept of cultural change. Articulating why cultural change is central to business success. Defining a process for assessing the current culture and the desired new culture, as well as measuring the gap between the two. Identifying alternative approaches to creati

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