The Strategic Importance of Managing Human Resources

1
The Strategic Importance ofManaging Human
Resources
The industrial revolution was about economies of
scale.The internet revolution will be about
economies of skill and how you empower
people. John Chambers CEO Cisco Systems
2
Chapter 1 Objectives

• Understand the importance of HRM on the effective
  preparation and execution of strategy
• Discuss the relationship between HRM and
  stakeholders
• Discuss the relationship between HRM and company
  success
• Discuss the relationship between HRM and SWOT
  analysis
• Discuss the various functions of HRM as they
  relate to the strategy and stakeholders

3
Chapter 1 Objectives

• Discuss HRM activities, their integration, and
  importance to organizational mission and strategy
• Discuss the importance of the HR Triad
• Describe key roles of the HR manager
• Describe the HR code of ethics
• Describe several of todays challenges of the HR
  manager

4
History of HRM Function

• History of the HRM movement
• Scientific Management
• Human Relations to Behavioral Science
• Personnel to HR
• HR to HRM (strategic use of our most valuable
  resource to create a competitive advantage)
• Degree Programs

5
Corporate Leaders Views of Human Capital
Several companies demand the top mgt have a tour
of duty in HRM
6
Stakeholders and Their Objectives
Discuss potential conflicts between stakeholders
EX 1.1
7
Malcolm Baldrige HRM Criterion

• Criterion 5 of the 2007 Malcolm Baldrige Award
  for performance excellence is Work Force Focus
  (See Handout)
• 50 of your final exam (take home portion) will
  require you to develop a strategy/action plan for
  an organization to score high on criterion 5.

8
The Relationship between Quality of HRM
Activities and Market Value
Based on Stock Price
Discuss why?
EX 1.2
9
A Framework for Managing Human Resources through
Strategic Partnerships
Key summary slide in each chapter
EX 1.3
10
Human Resource Activities Practices

• HR planning for alignment and change
• Formal policies procedures for HRM culture
• Job analysis and competency modeling
• Recruiting and retaining qualified employees
• Selecting employees to fit the job and the
  organization
• Training and developing a competitive workforce
• Developing an approach to total compensation
• Measuring performance and providing feedback
• Using performance-based pay to enhance motivation
• Providing benefits and services
• Promoting workplace safety and health
• Unionization and collective bargaining

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The Human Resources Triad
Human Resources are too important to be left to
the HR department. --Merck Corp.
HR has specialized and technical knowledge.
Line managers have always been responsible.
Employees share responsibility.
Used systematically, HRM policies can transform
a lackluster company to a star performer.
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Key HR Competencies

• Major types of competencies that HR professionals
  need in order to be effective
• Strategic understanding and contribution (43)
• Personal credibility (23)
• HR delivery (18)
• Business acumen (11)
• HR technology (5)

Note percentages indicate weighted impact on
business performance
13
Ethical BehaviorSHRM Code

• HR professions code of ethics
• HR professionals must regard the obligation to
  implement public objectives and protect the
  public interest as more important than blind
  loyalty to an employers preferences.
• Expectations
• Understand problems and maintain professionalism
• Maintain high standards of honesty and integrity
• Respect the dignity of all employees
• Assure that the organization respects the public
  and its employees

14
Special HR Challenges

• Managing Teams
• Why teams? Whats the challenge?
• Managing Diversity
• Whats the challenge?
• Managing Globalization
• Whats the challenge?
• Managing Change
• Whats the challenge?

Pay Attention to Chapter Inserts on these
Challenges
15
Barden Bearings Case

• Which of the HR objectives facing Mr. Brush are
  really the most important to the success of the
  business? Prioritize them and justify your list.
• Now consider this list of objectives from the
  perspective of employees. Using the Employees
  perspective, how would you prioritize the list?
  What are the implications in any differences in
  the two lists of priorities for Mr. Brush?
• Choose two objectives. For each, describe the key
  roles and responsibilities of the HR manager, the
  line managers, and other employees.

16
Research Grant Proposal

• Need a non-senior who would like to do a research
  project on the relationship between a Type A
  personality or Locus of Control and job
  performance.
• Benefit Approximately 1,500 (8/hr) and a
  dynamite resume filler (particularly if you
  intend on grad school). Also, the potential for
  publication in a professional journal.
• Time frame May 07-Feb 08 self-paced
• Proposal Due Feb 29, 2008