Chapter 1- The World of Human Resource Management
Human resource management- the process of managing human talents to
achieve an organization’s objectives
o Why Study HRM?
- Managers focus on specific challenges and issue that pertain to human
- Hr have to blend many aspects of management- “employee concerns”/
- HR personnel help firms get the most from their employees by providing a
work environment that meets employees’ short- term and long- term
- Look at figure 1.1 (pg.6)
o Competitive Challenges and HRM
1) Competing, Recruiting, and staffing globally
- The Impact of Globalization
Companies have shown they can offer customers “anything,
anytime, anywhere” around the world
Globalization: the trend toward opening up foreign markets to
international trade and investment
Ex. There is no such thing as a Canadian car. Most parts (85%)
come from all over the world.
Corporate social responsibility: the responsibility of the firm to
act in the best interests of the people and communities affected by
- How Globalization Affect HRM
When managers talk about “going global” they have to balance a
complicated set of issue related to different geographies, including
different cultures, employment laws, and business practices. HR personnel have to train individuals so they understand the
countries culture and requirements
Relocating managers and workers to direct the efforts of an
international workforce is a challenge as well.
2) Embracing New Technology
- Advancements in information technology have enabled organizations to
change the way they do business.
- From Touch Labour to Knowledge Workers
Advanced technology tends to reduce the number of jobs that
require little skill and to increase the number of jobs that require
Has been referred to as a shift from “touch labour” to knowledge
worker: workers whose responsibilities extend beyond the physical
execution of work to include planning, decision making, and
Technology, transportation, communications, and utilities industries
tend to spend the most on training.
“Just in time” learning delivered via the internet to employees’
desktops when and where they need training has become
“Virtual” learning has emerged as well
Ex. IBM and Manpower have built training facilities, offices, and
meeting rooms inside the online reality game Second Life. The
spaces these companies build online enable them to do some
things more easily and cheaply than they can in the real world.
Bringing people from several continents into one room for training.
- Influence of Technology in HRM
Human Resources Information System (HRIS): a computerized
system that provides current and accurate data for the purposes of
control and decision making
Organizations determined to improve productivity and lower costs
are finding HR a good place to start. HRIS has become a potent weapon for lowering administrative
costs, increasing productivity speeding up response times, and
improving decision making and service to managers and
The first step in choosing a HRIS is for HR personnel to evaluate the
biggest “headaches” they experience, or the most time- consuming
firm’s financial measures- that get the “biggest bang for the buck”.
Factors that need to be evaluated:
- Fit of the application to the firm’s employee base
If many of the firm’s employees work on a factory floor, is the
system appropriate, or does HR need to install kiosks in employee
- Ability to upgrade or customize the software
What sort of costs will be involved to upgrade the software in the
- Compatibility with current systems
- User friendliness
- Availability of technical support
- Time required to implement and train staff members to use the HRIS,
including HR and payroll personnel, managers, and employees
- Initial costs and annual maintenance costs
- When HRIS is implemented the biggest advantage gained is that HR
personnel can concentrate more effectively on the firm’s strategic
direction instead of routine tasks
3) Managing Change
Technology and globalization are contributors to the change
happening within organizations.
- Types of Change
Reactive Change: change that occurs after the external forces
have already affected performance
Proactive Change: change initiated to take advantage of targeted
opportunities - Managing Change through HR
People often resist change because it requires them to modify or
abandon ways of working that have been successful or at least
familiar to them.
To manage change, executives and managers, including those in
HR, have to envision the future, communicate this vision to
employees, set clear expectations for performance, and develop
the capability to execute by reorganizing people and reallocating
- 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 changes in the corporate culture.
4) Managing Talent, or Human Capital
Human capital: the knowledge, skills and capabilities of
individuals that have economic value to an organization
- Human Capital and HRM
Human capital cannot be managed because employees not the
organization own their own human capital
When an employee leaves the company they take their human
capital with them any investment the company has made in
training and development those people has lost. To build human capital in organizations, manager must continue
to develop superior knowledge, skills, and experience within
- Valuable because capital:
is based on company-specific skills.
is gained through long-term experience.
can be expanded through development
Skill- based pay rewards employees for each new class of jobs
that are capable of performing.
Developmental assignments (involving teamwork), can also be a
valuable way of facilitating knowledge exchange and mutual
Effective communication is another way to share knowledge
5) Responding to the Market
Total Quality Management: a set of principles whose core
ideas include understanding customer needs, doing things right
for the first time and striving for continuous improvement
TQM techniques were developed in the mid- 1940s by Dr. W.