Human Resources Management (HRM)
- The process of managing human resources (human capital and intellectual assets) to achieve an
- Integrated knowledge sets within an organization that distinguish it from its competitors and
deliver value to customers.
- Sustained competitive advantage through people is achieved if these human resources:
-Are rare and unavailable to competitors.
-Are difficult to imitate.
-Are organized for synergy.
1. Going global
2. Embracing new technology
3. Managing change
4. Managing talent or human capital
5. Responding to the market
6. Containing costs
Challenge 1: Competing, Recruiting and Staffing Globally
- The trend towards opening up foreign markets to international trade and investment.
- Impact of Globalization
- “Anything, anywhere, anytime” markets.
- Partnerships with foreign firms.
- Lower trade and tariff barriers
Corporate Social Responsibility - The responsibility of the firm to act in the best interests of the people and communities affected
by its activities.
- Impact on HRM
- Different geographies, cultures, laws, and business practices
- Identifying capable managers and workers.
- Developing foreign culture and work practice training programs.
- Adjusting compensation plans for overseas work.
Challenge 2: Embracing New Technology
- Knowledge Workers:
- Workers whose responsibilities extend beyond the physical execution of work to include
planning, decision making, and problem solving.
- Knowledge-Based Training
- Online instruction.
- “Just-in-time” learning via the Internet
on company intranets.
Human Resources Information System (HRIS)
- A computerized system that provides current and accurate data for the purposes of control and
- Store and retrieve of large quantities of data.
- Combine and reconfigure data to create new information.
- Institutionalization of organizational knowledge.
- Easier communications.
- Lower administrative costs, increased productivity and response times.
Challenge 3: Managing Change
Types of Change
- Reactive change: Change that occurs after external forces have already affected performance.
- Proactive change: Change initiated to take advantage of targeted opportunities.
- Managing Change through HR: Formal change management programs help to keep employees
focused on the success of the business Why Change Efforts Fail:
- Not establishing a sense of urgency.
- Not creating a powerful coalition to guide the effort.
- Lacking leaders who have a vision.
- Lacking leaders who communicate the vision.
- Not removing obstacles to the new vision.
- Not systematically planning for and creating short-term “wins.”
- Declaring victory too soon.
- Not anchoring chan