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humanresourcemanagement gainingacompetitiveadvantage chapter1humanresourcemanagement gainingacompetitiveadvantage copyright 2010bythemcgraw hillcompanies inc allrightsreserved mcgraw hill irwin learningobjectives discussrolesandactivitiesofacompany shrmfunctiondiscussimplicationsoftheeconomy makeupofthelaborforce andethicsforcompanysustainabilitydiscusshowhrmaffectsacompany sbalancedscorecarddiscusswhatcompaniesshoulddotocompeteintheglobalmarketplaceidentifythecharacteristicsoftheworkforceandhowtheyinfluencehrmdiscusshrmpracticesthatsupporthigh performanceworksystemsprovideabriefdescriptionofhrmpractices 1 2 introduction competitiveness acompany sabilitytomaintainandgainmarketsharehumanresourcemanagement thepolicies practices andsystemsthatinfluenceemployees behavior attitudes andperformance 1 3 humanresourcemanagementpractices 1 4 responsibilitiesofhrdepartments employmentandrecruitingtraininganddevelopmentcompensationbenefitsemployeeservicesemployeeandcommunityrelationspersonnelrecordshealthandsafetystrategicplanning 1 5 hrasabusinesswith3productlines administrativeservicesandtransactions businesspartnerservices strategicpartner humanresources 1 6 6competenciesforthehrprofession 1 7 howisthehrmfunctionchanging timespentonadministrativetasksisdecreasing hrrolesasastrategicbusinesspartner changeagent andemployeeadvocateareincreasing hrmanagersarechallengedtoshiftfocusfromcurrentoperationstofuturestrategiesandpreparenon hrmanagerstodevelopandimplementhrpractices thisshiftpresentstwoimportantchallenges self service givingemployeesonlineaccesstoinformationabouthrissuesoutsourcing thepracticeofhavinganothercompanyprovideservicestosavemoneyandspendmoretimeonstrategicbusinessissues 1 8 questionsusedtodetermineifhumanresourcesareplayingastrategicroleinthebusiness 1 whatishrdoingtoprovidevalue addedservicestointernalclients 2 whatcanthehrdepartmentaddtothebottomline 3 howareyoumeasuringtheeffectivenessofhr 4 howcanwereinvestinemployees 5 whathrstrategywillweusetogetthebusinessfrompointatopointb 6 whatmakesanemployeewanttostayatourcompany 7 howarewegoingtoinvestinhrsothatwehaveabetterhrdepartmentthanourcompetitors 8 fromanhrperspective whatshouldwebedoingtoimproveourmarketplaceposition 9 what sthebestchangewecanmaketoprepareforthefuture 1 9 howisthehrmfunctionchanging aspartofitsstrategicrole oneofthekeycontributionsthathrcanmakeistoengageinevidence basedhr evidence basedhr demonstratingthathumanresourcepracticeshaveapositiveinfluenceonthecompany sbottomlineorkeystakeholders 1 10 thehrmprofession hrsalariesvarydependingoneducationandexperienceaswellasthetypeofindustrytheprimaryprofessionalorganizationforhrmisthesocietyforhumanresourcemanagement shrm 1 11 3competitivechallengesinfluencinghrm global sustainability technology 1 12 thesustainabilitychallenge sustainabilityreferstotheabilityofacompanytosurviveandsucceedinadynamiccompetitiveenvironment stakeholdersreferstoshareholders thecommunity customers andallotherpartiesthathaveaninterestinseeingthatthecompanysucceeds 1 13 thesustainabilitychallenge sustainabilityincludestheabilityto provideareturntoshareholdersprovidehigh qualityproducts servicesandworkexperiencesforemployeesincreasevalueplacedonintangibleassetsandhumancapitalsocialresponsibilityadapttochangingcharacteristicsandexpectationsofthelaborforceaddresslegalandethicalissueseffectivelyusenewworkarrangements 1 14 thesustainabilitychallenge thechangingstructureoftheeconomyskilldemandsforjobsarechangingknowledgeisbecomingmorevaluableintangibleassets humancapital customercapital socialcapital andintellectualcapitalknowledgeworkers employeeswhocontributetothecompanythroughaspecializedbodyofknowledgeempowerment givingemployeesresponsibilityandauthoritytomakedecisionsregardingallaspectsofproductdevelopmentorcustomerservicelearningorganization 1 15 thesustainabilitychallenge 2changesinemploymentexpectations psychologicalcontractalternativeworkarrangements 1 16 concernswithemployeeengagement employeeengagement degreetowhichemployeesarefullyinvolvedintheirworkandstrengthoftheircommitment 10commonthemesofemployeeengagementprideinemployersatisfactionwithemployersatisfactionwiththejobopportunitytoperformchallengingworkrecognitionandpositivefeedbackfromcontributionspersonalsupportfrommanagereffortaboveandbeyondtheminimumunderstandingthelinkbetweenone sjobandthecompany smissionprospectsforfuturegrowthwiththecompanyintentiontostaywiththecompany 1 17 thebalancedscorecard thebalancedscorecardgivesmanagerstheopportunitytolookatthecompanyfromtheperspectiveofinternalandexternalcustomers employeesandshareholders thebalancedscorecardshouldbeusedto linkhumanresourcemanagementactivitiestothecompany sbusinessstrategy evaluatetheextenttowhichthehumanresourcefunctionishelpingthecompany smeetit sstrategicobjectives 1 18 thebalancedscorecard howdocustomersseeus whatmustweexcelat canwecontinuouslyimproveandcreatevalue howdowelooktoshareholders 1 19 customerserviceandquality totalqualitymanagement tqm corevaluesoftqminclude methodsandprocessesaredesignedtomeetinternalandexternalcustomers needs everyemployeereceivestraininginquality promotecooperationwithvendors suppliers andcustomers managersmeasureprogresswithfeedbackbasedondata qualityisdesignedintoaproductorservicesothaterrorsarepreventedfromoccurringratherthanbeingdetectedandcorrected 1 20 customerserviceandqualityemphasis malcolmbaldrigenationalqualityawardiso9000 2000sixsigmaprocessleanthinking 1 21 changingdemographicsworkforcediversity internallaborforceisthelaborforceofcurrentemployeesexternallabormarketincludespersonsactivelyseekingemploymentu s workforceisagingrapidlyincreasedworkforcediversityinfluenceofimmigration 1 22 managingadiverseworkforce tosuccessfullymanageadiverseworkforce managersmustdevelopanewsetofskillsincluding communicate coachanddevelopemployeesfromavarietyofbackgroundsprovideperformancefeedbackthatisbasedonobjectiveoutcomescreateaworkenvironmentthatmakesitcomfortableforemployeesofallbackgroundstobecreativeandinnovative recognizeandrespondtogenerationalissues 1 23 legalandethicalissues 5areasofthelegalenvironmentthathaveinfluencedhrmoverthepast25years equalemploymentopportunitylegislationemployeesafetyandhealthemployeepayandbenefitsemployeeprivacyjobsecuritywomenandminoritiesstillfacethe glassceiling sarbanes oxleyactof2002 1 24 legalandethicalissues ethics thefundamentalprinciplesbywhichemployeesandcompaniesinteractethicalhrpractices hrmpracticesmustresultinthegreatestgoodforthelargestnumberofpeopleemploymentpracticesmustrespectbasichumanrightsofprivacy dueprocess consent andfreespeechmanagersmusttreatemployeesandcustomersequitablyandfairly 1 25 4principlesofethicalcompanies successfulcompanies intheirrelationshipswithcustomers vendors andclients emphasizemutualbenefits employeesassumeresponsibilityfortheactionsofthecompany companieshaveasenseofpurposeorvisiontheemployeesvalueanduseintheirday to daywork theyemphasizefairness anotherperson sinterestscountasmuchastheirown 1 26 theglobalchallenge tosurvivecompaniesmustcompeteininternationalmarkets bepreparedtodealwiththeglobaleconomy offshoring exportingjobsfromdevelopedcountriestolessdevelopedcountriesonshoring exportingjobstoruralpartsoftheunitedstates 1 27 technologychallenge theoverallimpactoftheinternettheinternethascreatedanewbusinessmodel e commerce conductingbusinesstransactionsandrelationshipselectronically 1 28 thetechnologychallenge advancesintechnologyhave changedhowandwhereweworkresultedinhigh performanceworksystemsincreasedtheuseofteamstoimprovecustomerserviceandproductqualitychangedskillrequirementsincreasedworkingpartnershipsledtochangesincompanystructureandreportingrelationships 1 29 thetechnologychallenge advancesintechnologyhaveincreased useandavailabilityofhumanresourceinformationsystems hris useandavailabilityofe hrmcompetitivenessinhighperformanceworksystems 1 30 high performanceworksystems workinteams virtualteamschangesinskillrequirementsworkinginpartnerships changesincompanystructureandreportingrelationships increaseduseandavailabilityofe hrmandhumanresourceinformationsystems 1 31 meeting4competitivechallengesthroughhrmpractices hrmpracticesthathelpcompaniesdealwiththefourcompetitivechallengescanbegroupedintofourdimensions thehrenvironmentacquiringandpreparinghrassessmentanddevelopmentofhrcompensatinghr 1 32 meetingcompetitivechallengesthroughhrmpractices managinginternalandexternalenvironmentalfactorsallowsemployeestomakethegreatestpossiblecontributiontocompanyproductivityandcompetitiveness customerneedsfornewproductsorservicesinfluencethenumberandtypeofemployeesbusinessesneedtobesuccessful 1 33 meetingcompetitivechallengesthroughhrmpractices managersneedtoensurethatemployeeshavethenecessaryskillstoperformcurrentandfuturejobs besidesinterestingwork payandbenefitsarethemostimportantincentivesthatcompaniescanofferemployeesinexchangeforcontributingtoproductivity quality andcustomerservice createpaysystems rewardemployeecontributionsandprovidebenefits 1 34 summary hrhasthreeproductlines administrativeservices businesspartnerservices andstrategicservices tosuccessfullymanagehr individualsneedpersonalcredibility businessandtechnologyknowledge understandingofbusinessstrategy andabilitytodeliverhrservices hrmanagementpracticesshouldbeevidence based hrpracticesareimportantforhelpingcompaniesdealwithsustainability globalization andtechnologychallenges hrmanagersmustaddressglobalandtechnologychallenges 1 35 humanresourcemanagement gainingacompetitiveadvantage chapter2strategichumanresourcemanagement copyright 2010bythemcgraw hillcompanies inc allrightsreserved mcgraw hill irwin learningobjectives describethedifferencesbetweenstrategyformulationandstrategyimplementation 2 liststrategicmanagementprocesscomponents 3 discusshrmfunction sroleinstrategyformulation 4 describethelinkagesbetweenhrmandstrategyformulation 5 discusstypologiesofstrategiesandassociatedhrmpractices describehrissuesandpracticesassociatedwithvariousdirectionalstrategies 2 37 introduction goalofstrategicmanagementistodeployandallocateresourcesinawaythatgivesanorganizationcompetitiveadvantage hrmfunctionmustbeintegrallyinvolvedinthecompany sstrategicmanagementprocess 2 38 whatisstrategicmanagement strategichumanresourcemanagementisthepatternofplannedhractivitiesanddeploymentsintendedtoenableanorganizationtoachieveitsgoals strategicmanagementisaprocesstoaddresstheorganization scompetitivechallenges 2 39 strategicmanagementprocessphases strategyimplementation processofdevisingstructuresandallocatingresourcestoenactacompany schosenstrategy strategyformulation processofdecidingcompany sstrategicdirectionbydefiningitsmissionandgoals externalopportunitiesandthreats andinternalstrengthsandweaknesses 2 40 5categoriesofdirectionalstrategies concentration internalgrowth externalgrowth downsizings mergers acquisitions 2 41 5strategicmanagementprocesscomponents mission goals externalanalysis internalanalysis strategicchoice 2 42 hrmpractices jobanalysis theprocessofgettingdetailedinformationaboutjobs recruitment theprocessthroughwhichtheorganizationseeksapplicants training aplannedefforttofacilitatelearningofjob relatedknowledge skills andbehavior jobdesign makingdecisionsaboutwhattasksshouldbegroupedintoaparticularjob selection identifyingtheapplicantswiththeappropriateknowledge skills andability development theacquisitionofknowledge skills andbehaviorthatimprovesemployees abilitytomeetthechallengesoffuturejobs performancemanagement helpsensurethatemployees activitiesandoutcomesarecongruentwiththeorganization sobjectives paystructure incentives andbenefits laborandemployeerelations 2 43 strategicmanagementprocessmodel strategyformulation strategyimplementation hrpracticesrecruitingtrainingperformancemanagementlaborrelationsemployeerelationsjobanalysisjobdesignselectiondevelopmentpaystructureincentivesbenefits firmperformanceproductivityqualityprofitability humanresourceactionsbehaviorsresults humanresourcecapabilityskills abilitiesknowledge humanresourceneedsskillsbehaviorculture strategicchoice goals mission externalanalysisopportunitiesthreats internalanalysisstrengthsweaknesses 2 44 strategy decisionsaboutcompetition where howandwithwhatwillwecompete where inwhatmarkets how whatcriteria cost quality reliability delivery withwhatresources howwillweacquire developanddeployresources 2 45 strategicplanningandhrmlinkages 2 46 strategyformulation externalanalysisopportunitiesthreats strategicchoice goals internalanalysisstrengthsweaknesses mission 2 47 strategyformulation missionisastatementoftheorganization sreasonsforbeing goalsarewhattheorganizationhopestoachieveinthemedium tolong termfuture externalanalysisexaminestheorganization soperatingenvironmenttoidentifystrategicopportunitiesandthreats internalanalysisidentifiestheorganization sstrengthsandweaknesses strategicchoiceistheorganization sstrategy whichdescribesthewaystheorganizationwillattempttofulfillitsmissionandachieveitslongtermgoals 2 48 strategyimplementationvariables productmarketstrategy rewardsystems selecttraindeveloppeople typesofinformation organizationalstructure taskdesign performance 2 49 strategicimplementation hrpracticesrecruitingtrainingperformancemanagementlaborrelationsemployeerelationsjobanalysisjobdesignselectiondevelopmentpaystructureincentivesbenefits firmperformanceproductivityqualityprofitability humanresourceactionsbehaviorsresults productivity absenteeism turnover humanresourcecapabilityskills abilitiesknowledge humanresourceneedsskillsbehaviorculture strategicchoice 2 50 hrmpractices jobanalysis design recruitment selection training development performancemgmt 2 51 jobanalysisanddesign jobdesign definingthewayworkwillbeperformedandtasksrequiredinagivenjob jobanalysis processofgettingdetailedinformationaboutjobs 2 52 recruitmentandselection selection processbywhichanorganizationidentifiesapplicantswithnecessaryknowledgeskills abilitiesandcharacteristicsthatwillhelpittoachieveitsgoals recruitment processofseekingapplicantsforpotentialemployment 2 53 traininganddevelopment development acquisitionofknowledge skillsandbehaviorsthatimproveanemployee sabilitytomeetchangesinjobrequirementsandinclientandcustomerdemands training plannedefforttofacilitatelearningofjob relatedknowledge skillsandbehaviors 2 54 performancemanagement themeansthroughwhichmanagersensurethatemployees activitiesandoutputsarecongruentwiththeorganization sgoals 2 55 hrmpracticeoptions jobanalysis designrecruitment selectiontraining developmentperformancemanagementpaystructure incentives benefitslabor employeerelations 2 56 strategictypesporter sstrategies competitiveadvantagestemsfromacompany sabilitytocreatevalueintwoways costleadershipdifferentiation 2 57 hrmneedsstrategictypes differentstrategiesrequiredifferenttypesofemployees rolebehaviors coststrategyfirmsseekefficiency carefullydefineneededemployeeskillsanduseworkerparticipationtoseekcost savingideas differentiationfirmsneedcreativerisktakers 2 58 directionalstrategies downsizing externalgrowthstrategy concentrationstrategy internalgrowthstrategy mergersandacquisitions 2 59 2wayshrprovidescompetitiveadvantage emergentstrategies strategiesthatevolvefromthegrassrootsoftheorganization enhancingcompetiveness developinghumancapitalinalearningorganization 2 60 summary humanresourcesarethemostimportantassetandsinglelargestmostcontrollablecostwithinthebusinessmodel hrprofessionalsmustdevelopbusiness professional technical changemanagementandintegrationcompetencies hrmhasaprofoundimpactonthestrategicplanimplementationbydevelopingandaligninghrmpracticesthatensuethecompanyhasmotivatedemployeeswithnecessaryskills 2 61 humanresourcemanagement gainingacompetitiveadvantage chapter3thelegalenvironment equalemploymentopportunityandsafety copyright 2010bythemcgraw hillcompanies inc allrightsreserved mcgraw hill irwin learningobjectives afterreadingchapter3 youshouldbeableto identifythethreebranchesofgovernmentandtheroleeachplaysininfluencingthelegalenvironmentofhrm listthemajorfederallawsthatrequireequalemploymentopportunityandtheprotectionsprovidedbyeachoftheselaws discusstheroles responsibilities andrequirementsofthefederalagenciesresponsibleforenforcingequalemploymentopportunitylaws identifythefourtheoriesofdiscriminationundertitleviiofthecivilrightsactandapplythesetheoriestodifferentdiscriminationsituations 3 63 learningobjectives afterreadingthischapter youshouldbeableto discussthelegalissuesinvolvedwithpreferentialtreatmentprograms identifybehaviorthatconstitutessexualharassmentandlistthingsthananorganizationcandotoeliminateorminimizeit identifythemajorprovisionsoftheoccupationalsafetyandhealthact 1970 andtherightsofemployeesthatareguaranteedbythisact 3 64 theu s legalsystem executivebranch judicialbranch legislativebranch 3branches 3 65 equalemploymentopportunity equalemploymentopportunity thegovernment sattempttoensurethatallindividualshaveanequalchanceforemployment regardlessofrace color religion sexornationalorigin constitutionalamendments 13thamendment abolishedslavery14thamendment forbidsstatesfromdenyingequalprotectionofthelaws 3 66 congressionallegislation thereconstructioncivilrightsacts 1866and1871 equalpayactof1963titleviiofthecivilrightsactof1964theagediscriminationinemploymentactof1967vocationalrehabilitationactof1973 3 67 congressionallegislation vietnameraveteran sreadjustmentactof1974pregnancydiscriminationactcivilrightsactof1991americanswithdisabilitiesactof1990 3 68 executiveorders executiveorder11246 prohibitsgovernmentcontactorsfromdiscriminationexecutiveorder11478 governmentemploymentpoliciesbasedonmeritandfitness 3 69 enforcementofequalemploymentopportunity twoagenciesresponsiblefortheenforcementoftheselawsandexecutiveorders equalemploymentopportunitycommission officeoffederalcontractcomplianceprograms 3 70 equalemploymentopportunitycommission 3majorresponsibilitiesofeeoc investigateandresolvediscriminationcomplaintsgatherinformationissueguidelineslillyledbetterfairpayact 3 71 officeoffederalcontractcomplianceprograms ofccp 3components utilizationanalysisgoalsandtimetablesacti

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