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CHAPTER1ANINVESTMENTPERSPECTIVEOFHUMANRESOURCEMANAGEMENT PowerPointPresentationbyCharlieCookCopyright 2002South Western Allrightsreserved Copyright 2002South Western Allrightsreserved 1 2 TheStrategicViewofHumanResources Employeesarehumanassetsthatincreaseinvaluetotheorganizationandthemarketplacewheninvestmentsofappropriatepoliciesandprogramsareapplied Effectiveorganizationsrecognizethattheiremployeesdohavevalue muchassameastheorganization sphysicalandcapitalassetshavevalue Employeesareavaluablesourceofsustainablecompetitiveadvantage Copyright 2002South Western Allrightsreserved 1 3 Copyright 2002South Western Allrightsreserved 1 4 SourcesofEmployeeValue TechnicalKnowledgeMarkets Processes Customers EnvironmentAbilitytoLearnandGrowOpennesstonewideasAcquisitionofknowledgeandskillsDecisionMakingCapabilitiesMotivationCommitmentTeamworkInterpersonalskills Leadershipability Copyright 2002South Western Allrightsreserved 1 5 ValuationofHumanAssets ImplicationsforIndividualsandOrganizationsDeterminationofcompensationInternalandexternalequityforemployeesinreturnfortheircontributionstotheorganization Organizationplacementofresourcesandreturnsonemployeedevelopmentarealignedandwell matched AdvancementopportunitiesDevelopingcurrentemployeescreatesmotivationandpermitspromotionfromwithin DevelopmentofretentionstrategiesEffectivemeansofretainingvaluableemployeesallowsfortherecaptureoftheinvestedcostsoftheirdevelopment Copyright 2002South Western Allrightsreserved 1 6 InvestmentOrientation Copyright 2002South Western Allrightsreserved 1 7 TheInvestment OrientedOrganization OrganizationalCharacteristicsSeespeopleascentraltoitsmission strategy Hasamissionstatementandstrategicobjectivesthatespousethevalueofhumanassetsinachievinggoals Hasamanagementphilosophythatencouragesthedevelopmentandretentionofhumanassetsanddoesnottreatorregardhumanassetsinthesamewaysasphysicalassets Copyright 2002South Western Allrightsreserved 1 8 InvestmentOrientationFactors SeniorManagementValuesandActionsAnorganization swillingnesstoinvestinitshumanresourcesisdeterminedbythe investmentorientation ofitsmanagers AttitudeTowardRiskInvestmentinhumanresourcesisinherentlyriskierduetolackofabsolute ownership oftheasset NatureofSkillsNeededbyEmployeesThemorelikelythatskillsdevelopedbyemployeesaremarketableoutsidethefirm themoreriskythefirm sinvestmentinthedevelopmentofthoseskills Copyright 2002South Western Allrightsreserved 1 9 InvestmentOrientationFactors Utilitarian BottomLine MentalityAnattemptismadetoquantifyemployeeworthtotheorganizationthroughacost benefitanalysis The soft benefitsofHRprogramsandpolicesaredifficulttoobjectivelyquantifybecausetheyaffectmanydifferentorganizationalareasandhavedifferentialeffectsonindividualemployees AvailabilityofOutsourcingIfcost effectiveoutsourcingisavailable investmentswillbemadeonlyinHRactivitiesproducingthehighestreturnsandlargestsustainablecompetitiveadvantages Copyright 2002South Western Allrightsreserved 1 10 Reading1 1 TheSWAValueCycle ValueatSouthwestAirlinesis 1 Createdthroughsatisfactionofemployeeneeds 2 Convertedtocustomerandshareholdervalueviaorganizationalcapabilities thedesignofspecificoperatingprocesses 3 CapturedbySWAascompetitiveadvantagethroughlowercostsandsuperiorservice productivity inrelationtoitscompetitors Copyright 2002South Western Allrightsreserved 1 11 Reading1 2 EffectiveHRMPractices EmploymentSecuritySelectivityinRecruitingHighWagesIncentivepayEmployeeOwnershipInformationSharingParticipation OwnershipSelf ManagedTeams Training DevelopmentCross Utilization Cross TrainingSymbolicEgalitarianismWageCompressionPromotionFromWithinTakingtheLongViewMeasurementofPracticeOverallPhilosophy CHAPTER2TRENDSAFFECTINGHUMANRESOURCEMANAGEMENT PowerPointPresentationbyCharlieCookCopyright 2002South Western Allrightsreserved Copyright 2002South Western Allrightsreserved 1 13 MajorFactorsAffectingHRM StrategicHRM TechnologicalAdvancement DemographicsandDiversity Globalization Copyright 2002South Western Allrightsreserved 1 14 TechnologyandHRM Copyright 2002South Western Allrightsreserved 1 15 TechnologyChallengesforHRM Copyright 2002South Western Allrightsreserved 1 16 WorkforceDemographicChanges The Graying oftheWorkforceNegativeAspectsofOlderWorkersPerceivedresistancetochangebyolderworkers Increasedhealth carecostsforseniorworkersBlockingadvancementopportunitiesforyoungerworkersHigherwageandsalarycostsforseniorworkersPositiveAspectsofOlderWorkersAsproductiveormoreproductivethanyoungerworkersHavemoreorganizationalloyaltythanyoungerworkersPossessbroaderindustryknowledgeandprofessionalnetworks Copyright 2002South Western Allrightsreserved 1 17 WorkforceDemographicChanges BabyBoomers 1945 1962 InexcesssupplyinmiddlemanagementranksHRchallengeistomanage plateaued workersBabyBusters 1963 mid 1970s ArecareerbottleneckedbytheBoomersWhohaveskillsinhighdemandaredoingandwilldowellGeneration X ers late1970s early1980s Havelife longexposuretotechnologyandconstantchangeSeekself control independence personalgrowth creativityArenotfocusedonjobsecurityorlong termemployment Copyright 2002South Western Allrightsreserved 1 18 NewEmployee WorkplaceDynamics EmphasisontheManagementofProfessionalsEstablishmentofseparatecareertracksTechnical Professional Managerial AdministrativeUseofprojectteamsLessEmployeeLoyalty MoreLoyaltoSelfStayingwithemployersforshorterperiods demandingmoremeaningfulworkandinvolvementinorganizationaldecisionsIncreasedPersonalandFamilyDynamicEffectsMoresingle parentfamilies dual careercouples anddomesticpartnersIncreasedNontraditionalWorkRelationshipsPart time consulting andtemporaryemploymentflexibilityOutsourcingandentrepreneurialopportunities Copyright 2002South Western Allrightsreserved 1 19 ManagingWorkplaceDiversity UnderstandingandAppreciatingDiversityIscriticaltoeffectivelymarketingtoethnicandminoritygroupsIspromotedbyhavingadiverseworkforceatallorganizationlevelsHelpsensurethathiringandpromotiondecisionsareunbiasedbypersondifferencesDiversityManagementPrograms InitiativesMustbeintegratedwithorganization smissionandobjectivesHelpkeydecisionmakersidentifydiversity sbenefitstotheorganizationMakecriticaldecisionsaboutimplementingtheoptimalprogram initiativecontingentontheorganizationanditspeople missionandculture Copyright 2002South Western Allrightsreserved 1 20 Reading2 1 Telecommuting BenefitsReducedworkcommutingtimeEmployeeretentionIncreasedgeographicrecruitingflexibilityReducedcostsofdoingbusiness reducedofficespace Significantproductivitygains ObstaclesDifficultyinmeasuringperformanceDeterminingeligiblejobsIndividualemployeecharacteristicsAssumptionofhomeofficeexpenses liabilitiesManagerialresistancetotelecommutingIncreasednetworkingcost Copyright 2002South Western Allrightsreserved 1 21 Reading2 2 WorkplaceDiversity IssuesAffectingDiversityPolicymakingWhydiversityisinternallyandexternallyimportanttotheorganization Howisdiversityrelatedtothecurrentandfuturemissionandstrategicobjectivesoftheorganization Howisdiversitytobedefinedinitsinclusionandexclusionoftheextent composition andrecognitionof differences Shouldtheorganizationmakespecialeffortstoattractadiverseworkforce andforwhatpurposes Howdoexistingemployeesandconstituentsfeelaboutdiversity Whatspecifictypesofdiversityinitiativeswillbeundertaken andtomeetwhatobjectives CHAPTER3STRATEGICPLANNING PowerPointPresentationbyCharlieCookCopyright 2002South Western Allrightsreserved Copyright 2002South Western Allrightsreserved 1 23 StrategicManagement StrategicHumanResourceManagementInvolvesaligninginitiativesinvolvinghowpeoplearemanagedwiththeorganizationalmissionandobjectives StrategicManagementProcessDeterminingwhatneedstobedone how toachievecorporateobjectivesoverathree tofiveyeartimespan Examiningtheorganizationandthecompetitiveenvironment Establishingastrategic optimal fit betweentheorganizationanditsenvironmentthatengenderssuccess Reviewingandrevisingthestrategicplanasnecessary Copyright 2002South Western Allrightsreserved 1 24 ModelsofStrategy IndustrialOrganization O I ModelTheexternalenvironmentistheprimarydeterminantoforganizationalstrategyratherthantheinternaldecisionsofitsmanagers Theenvironmentpresentsthreatsandopportunities Allcompetingorganizationscontrolorhaveequalaccesstoresources Resourcesarehighlymobilebetweenfirms Organizationalsuccessisachievedbyofferinggoodsandservicesatlowercoststhancompetitorsorbydifferentiatingproductssuchthattheybringpremiumprices Copyright 2002South Western Allrightsreserved 1 25 ModelsofStrategy cont d Resource BasedView RBV Anorganization sresourcesandcapabilities notexternalenvironmentalconditions shouldbethebasisforstrategicdecisions Competitiveadvantageisgainedthroughtheacquisitionandvalueoforganizationalresources Organizationscanidentify locateandacquirekeyvaluableresources Resourcesarenothighlymobileacrossorganizationsandonceacquiredareretained Valuableresourcesarecostlytoimitateandnon substitutable Copyright 2002South Western Allrightsreserved 1 26 Copyright 2002South Western Allrightsreserved 1 27 TheMissionStatement Copyright 2002South Western Allrightsreserved 1 28 CorporateStrategies Growth BenefitsGainingeconomiesofscaleinoperationsandfunctionsEnhancingcompetitivepositionvis visindustrycompetitorsProvidingopportunitiesforemployeeprofessionaldevelopmentandadvancementHRIssuesPlanningfornewhiringAlertingcurrentemployeesEnsuringqualityandperformancestandardsaremaintained InternalMethodsPenetrationofexistingmarketsDevelopingnewmarketsDevelopingnewproductsorservicesforexistingornewmarketsExternalMethodsAcquiringotherorganizationsVerticalintegrationHRIssuesMergingorganizationsDismissingredundantemployees Copyright 2002South Western Allrightsreserved 1 29 CorporateStrategies cont d StabilityMaintainingthestatusquoduetolimitedenvironmentalopportunitiesforgainingcompetitiveadvantage Fewemployeeswillhaveopportunitiesforadvancement CriticalthatmanagementidentifykeyemployeesanddevelopspecificHRretentionstrategiestokeepthem TurnaroundorRetrenchmentDownsizingorstreamliningtheorganizationinacost cuttingattempttoadjusttothecompetitiveenvironment Fewopportunitiesandmanyenvironmentalthreats ImportanttodevelopHRpracticestomanagethe survivors Copyright 2002South Western Allrightsreserved 1 30 BusinessUnitStrategies CostLeadership Increasesinefficiencyandcuttingofcosts thenpassingthesavingstotheconsumer Assumespriceelasticityindemandforproductsorservicesishigh smallchangeinpricewillcauselargeincreaseindemand Assumesthatcustomersaremorepricesensitivethanbrandloyal HRstrategyfocusesonshort termperformancemeasuresofresultsandpromotingefficiencythroughjobspecializationandcross training Copyright 2002South Western Allrightsreserved 1 31 BusinessUnitStrategies Differentiation Attemptingtodistinguishorganizationalproductsorservicesfromothercompetitorsorcreatingtheperceptionofadifferenceinordertodemandapremiumpricefromconsumers Organizationoffersemployeesincentivesandcompensationforcreativity HRstrategyfocusesonexternalhiringofuniqueindividualsandonretainingcreativeemployees Copyright 2002South Western Allrightsreserved 1 32 BusinessUnitStrategies Focus Businessattemptstosatisfytheneedsofonlyaparticulargroupornarrowsegmentofthemarket Strategicintentistogainconsumerloyaltyofneglectedgroupsofconsumers StrategicHRissueisensuringemployeeawarenessofuniquenessofmarketsegment Thoroughemployeetrainingandafocusoncustomersatisfactionarecriticalfactors Hiringmembersofthetargetsegmentwhoareempathetictocustomerinthetargetsegment Copyright 2002South Western Allrightsreserved 1 33 BusinessUnitStrategies LogicsofControl Copyright 2002South Western Allrightsreserved 1 34 EXHIBIT3 3 DYERANDHOLDER STYPOLOGYOFSTRATEGIES cont d BusinessUnitStrategies LogicsofControl cont d Copyright 2002South Western Allrightsreserved 1 35 BenefitsofaStrategicApproachtoHR Facilitatesthedevelopmentofahigh qualityworkforcethroughitsfocusonthetypesofpeopleandskillsneeded Facilitatescost effectiveutilizationoflabor particularlyinserviceindustrieswherelaborisgenerallythegreatestcost Facilitatestheplanningandassessmentofenvironmentaluncertaintyandtheadaptationoftheorganizationtotheexternalforcesthatimpacttheorganization Copyright 2002South Western Allrightsreserved 1 36 Reading3 2 TheFiveP sModelofSHRM PhilosophyStatementsofhowtheorganizationvaluesandtreatsemployees essentiallythecultureoftheorganization PoliciesExpressionsofsharedvaluesandguidelinesforactiononemployee relatedbusinessissues ProgramsCoordinatedandstrategizedapproachestoinitiate disseminate andsustainstrategicorganizationalchangeeffortsnecessitatedbystrategicbusinessneeds Copyright 2002South Western Allrightsreserved 1 37 Reading3 2 TheFiveP sModelofSHRM PracticesHRpracticesthatmotivatebehaviorsthatallowindividualstoassumerolesconsistentwiththeorganization sstrategicobjectives ProcessesThecontinuumofparticipationbyallemployeesinthespecificactivitiesoftofacilitatetheformulationandimplementationofotheractivities Copyright 2002South Western Allrightsreserved 1 38 Reading3 2 ImplicationsofSHRM SuccessfulSHRMeffortsbeginwithidentificationofstrategicneeds EmployeeparticipationiscriticaltolinkingstrategyandHRpractices StrategicHRdependsonasystematicandanalyticalmindset CorporateHRdepartmentscanhaveanimpactontheirorganization seffortstolaunchstrategicinitiatives CHAPTER4THEEVOLVING STRATEGICROLEOFHUMANRESOURCEMANAGEMENT PowerPointPresentationbyCharlieCookCopyright 2002South Western Allrightsreserved Copyright 2002South Western Allrightsreserved 1 40 StrategicHumanResourceManagement Involvesthedevelopmentofaconsistent alignedcollectionofpractices programs andpoliciestofacilitatetheachievementoftheorganization sstrategicobjectives Requiresabandoningthemindsetandpracticesof personnelmanagement andfocusingonstrategicissuesthanoperationalissues IntegrationofallHRprogramswithinalargerframework facilitatingtheorganization smissionanditsobjectives Copyright 2002South Western Allrightsreserved 1 41 Copyright 2002South Western Allrightsreserved 1 42 TraditionalHRversusStrategicHR Copyright 2002South Western Allrightsreserved 1 43 BarrierstoStrategicHR Copyright 2002South Western Allrightsreserved 1 44 Copyright 2002South Western Allrightsreserved 1 45 Copyright 2002South Western Allrightsreserved 1 46 Reading4 1 HRandOrganizationalExcellence HRcanhelpdeliverorganizationalexcellenceby Becomingapartnerwithseniorandlinemanagersinstrategyexecution Becomingexpertinthewayworkisorganized deliveringadministrativeefficiencytoensurethatcostsarereducedwhilequalityismaintained Becomingachampionforemployees representingtheirconcernstoseniormanagementandworkingtoincreaseemployeecontributions Becominganagentofcontinuoustransformationbyshapingprocessesandorganizationalculture Copyright 2002South Western Allrightsreserved 1 47 Reading4 1 FiveCriticalBusinessChallenges GlobalizationProfitabilitythroughGrowthTechnologyIntellectualCapitalChange Change andMoreChange Copyright 2002South Western Allrightsreserved 1 48 Reading4 1 HRasStrategyExecutionPartner HRisresponsiblefordefininganorganizationalstructureasthemodelforthecompany swayofdoingbusiness HRmustbeaccountableforconductinganorganizationalaudit HRistoidentifymethodstorenovatepartoftheorganizationalarchitecture HRmusttakestockofitsownworkandsetclearpriorities Copyright 2002South Western Allrightsreserved 1 49 Reading4 1 HRandOrganizationalCulture HRcanhelpbringaboutaculturalchangeby Definingandclarifyingtheconceptofculturalchange Articulatingwhyculturalchangeiscentraltobusinesssuccess Definingaprocessforassessingthecurrentcultureandthedesirednewculture aswellasmeasuringthegapbetweenthetwo Identifyingalternativeapproachestocreatingculturechange Copyright 2002South Western Allrightsreserved 1 50 Reading4 1 FourChangesfortheLine HowsenioroperatingmanagementcancreateanenvironmentinwhichHRbecomesfocusedonoutcomesinsteadofactivities Communicatetotheorganizationthatthe softstuff matters ExplicitlydefinethedeliverablesfromHR andholdHRaccountableforresults InvestininnovativeHRpractices UpgradeHRprofessionals Copyright 2002South Western Allrightsreserved 1 51 Reading4 2 HumanCapitalManagement Tobecomeeffectivehumancapitalmanagers HRmangersmustdevelopcompetenciesin Knowledgeofthebusiness Humanresourcefunctionalexpertise Themanagementofchange Copyright 2002South Western Allrightsreserved 1 52 Reading4 2 NewFunctionalRoleforHR HRmustfocusonbusinessleveloutcomesratherthanHRlevelinputs HRmustbecomeastrategiccorecompetencyratherthanamarketfollower Strategiccompetenciesaremoreimportantthanfunctionalcompetencies ThemostimportantmissingelementintheHRfunctionexpertiseisasystemsperspective Copyright 2002South Western Allrightsreserved 1 53 Reading4 3 OrganizationCultureQuestionnaire Topicstobeincludedinthequestionnaire Howisperformancedefined measuredandrewardedintheorganization Howareinformationandresourcesallocatedandmanagedintheorganization Whatistheoperationalphilosophyoftheorganizationwithregardtorisk taking leadership andconcernforoverallresults Doestheorganizationregarditshumanresourcesascostsorassets Copyright 2002South Western Allrightsreserved 1 54 Reading4 3 AnalyzingDysfunctionalCultures Whichcomponentsoftheculturearemisaligned Whatprioritiesshouldbeassignedeachofthegapsbetweenwhatthecultureisandwhatpeoplefeelthatitshouldbe Whatresourcesareneededandhowshouldtheybeusedtochangetheculture Howshouldthechangeeffortbemanagedandwhodoeswhat WhatroleshouldHRstrategyplayinsignaling makingandreinforcingthenecessarychanges CHAPTER5HUMANRESOURCEPLANNING PowerPointPresentationbyCharlieCookCopyright 2002South Western Allrightsreserved Copyright 2002South Western Allrightsreserved 1 56 HumanResourcePlanning HRP IsthefirstcomponentofHRMstrategyAllotherfunctionalHRactivitiesarederivedfromandflowoutoftheHRPprocess HasitsbasisinconsiderationsoffutureHRrequirementsinlightofpresentHRcapabilitiesandcapacities IsproactiveinanticipatingandpreparingflexibleresponsestochangingHRrequirements Hasbothaninternalandexternalfocus Copyright 2002South Western Allrightsreserved 1 57 FiveMajorObjectivesofHRP Copyright 2002South Western Allrightsreserved 1 58 TypesofPlanning Aggreg
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