1. 1. Gaining Competitive Advantages
1.1. What responsibilities do HRM perform?
1.1.1. Human Resource Management refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance.
1.1.2. HRM includes:
1.1.2.1. 1. Analysis and designs of work
1.1.2.2. 2. HR Planning
1.1.2.3. 3. Selection
1.1.2.4. 4. Training and development
1.1.2.5. 5. Compensations
1.1.2.6. 6. Performance management
1.1.2.7. 7. Employee Relations
1.2. Responsibilities and Roles
1.2.1. Administrative Services & transactions
1.2.1.1. Compensation, hiring and staffing
1.2.1.1.1. Resource efficiency and service quality
1.2.2. Business Partner Service
1.2.2.1. Developing effective system and helping implement business plans, talents management
1.2.2.1.1. Knowing the business and excercising influrnce - problem solving, designing to ensure needed system system to implement competencies
1.2.3. Strategic Partner
1.2.3.1. Contributing to business strategies based on contributions of human capitals, business capablities, readiness and developing HR practices as strategic defferentiators
1.2.3.1.1. Knnowledge of HR and the business, competition, the market and business strategies
1.3. Strategic Roles pf HRM fuctions
1.3.1. Shared service model
1.3.1.1. Centers of expertise or excelence - HR specialists in areas
1.3.1.2. Service center - Central place for adminstrative and transactional tasks
1.3.1.3. Business partners - HR staff members who work with business-unit managers on strategic issues
1.3.2. Self-service
1.3.2.1. HR can fucus more on important employee issues and less time on day-to-day transactional tasks.
1.3.2.2. Managers can execute transactions more quickly and have more access to workforce data that they could use in decision making.
1.3.2.3. HR can have more time to work with managers.
1.3.3. Service providers
1.3.3.1. Outsourcing helps companies to save costs, increase ability to recruit and manage talents, improve HR service quality, and protect the company from potential lawsuits by standardizing process.
1.3.4. Employeee Relations and Experience
1.3.4.1. The department took care of employee problems, made sure employees were paid correctly, administered labor contracts, and avoided legal problems.
1.3.4.2. The HRM department ensured that employeerelated issues did not interfere with the manufacturing or sales of products or services
1.3.4.3. Human resource management was primarily reactive; that is, HR issues were a concern only if they directly affected the business.
1.3.5. Talent retains and performance management
1.3.5.1. HR professionals have to be able to use and analyze data to make a business case for ideas and problem solutions.
1.3.5.2. In many companies, top HR managers report directly to the CEO, president, or board of directors to answer questions about how people strategies drive value for the company.
1.3.6. HR Analytics and Evidence-based HR
1.3.6.1. Evidence-based HR
1.3.6.1.1. HR analytics
1.4. Competitive challenges influencing human resource management
1.4.1. Competing through sustainability
1.4.1.1. Deal with the workforce and employment implications of the economy
1.4.1.2. Understand and enhance the value of intangible assets and human capital
1.4.1.3. Meet the needs of stakeholders, shareholders, customers, employees, and the community
1.4.1.4. Emphasize customer service and quality
1.4.1.5. Customize and capitalize on the demographics and the diversity of the workforce
1.4.1.6. Deal with legal and ethical issues
1.4.2. Competing through globalization
1.4.2.1. Entering International market
1.4.2.2. Offshoring and reshoring
1.4.3. Competing Through teachnology
1.4.3.1. Consider social networking
1.4.3.2. Consider high-performance work systems and virtual teams
1.4.3.3. Use HRIS mobile service, cloud computing, and HR dashboards
1.5. Meeting competitive challenges
1.5.1. Managing the Human Resource Environment
1.5.1.1. Linking HRM practices to the company’s business objectives—that is, strategic human resource management
1.5.1.2. Ensuring that HRM practices comply with federal, state, and local laws
1.5.1.3. Designing work that motivates and satisfies employees as well as maximizes customer service, quality, and productivity
1.5.2. Acquiring and Preparing Human Resources
1.5.2.1. Identifying human resource requirements—that is, human resource planning, recruiting employees, and selecting employees
1.5.2.2. Training employees to have the skills needed to perform their jobs
1.5.3. Assessment and Development of Human Resources
1.5.3.1. Measuring employees’ performance
1.5.3.2. Preparing employees for future work roles and identifying employees’ work interests, goals, values, and other career issues
1.5.3.3. Creating an employment relationship and work environment that benefits both the company and the employee
1.5.4. Compensating Human Resources
1.5.4.1. Creating pay systems
1.5.4.2. Rewarding employee contributions
1.5.4.3. Providing employees with benefits
1.5.5. Special Issues
2. 2. Strategic Human Resource Management
2.1. What is Strategic Management?
2.1.1. Strategic management is a process, an approach to addressing the competitive challenges an organization faces.
2.1.1.1. Business organizations engage in generic strategies that often fit into some strategic type
2.1.1.1.1. The process of developing strategies for achieving the company’s goals in light of its current environment
2.1.1.2. Strategic human resource management (SHRM) can be thought of as “the pattern of planned HR deployments and activities intended to enable an organization to achieve its goals."
2.2. Components of the strategic management process
2.2.1. Strategy formulation
2.2.1.1. The strategic planning groups decide on a strategic direction by defining the company’s mission and goals, its external opportunities and threats, and its internal strengths and weaknesse. They then generate various strategic alternatives and compare those alternatives’ ability to achieve the company’s mission and goals.
2.2.2. Strategy implementation
2.2.2.1. The organization follows through on the chosen strategy. This consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization’s strategic goal
2.2.3. Both of these strategic management phases must be performed effectively. This process does not happen sequentially.
2.3. Roles of HRM formulation
2.3.1. Administrative linkage
2.3.1.1. The HRM function’s attention is focused on day-to-day activities. The HRM executive has no time or opportunity to take a strategic outlook toward HRM issues.
2.3.1.2. The company’s strategic business planning function exists without any input from the HRM department.
2.3.1.3. Thus, in this level of integration, the HRM department is completely divorced from any component of the strategic management process in both strategy formulation and strategy implementation. The department simply engages in administrative work unrelated to the company’s core business needs.
2.3.2. One-way linkage
2.3.2.1. The firm’s strategic business planning function develops the strategic plan and then informs the HRM function of the plan.
2.3.2.2. Although one-way linkage does recognize the importance of human resources in implementing the strategic plan, it precludes the company from considering human resource issues while formulating the strategic plan.
2.3.3. Two-way linkage
2.3.3.1. Two-way linkage allows for consideration of human resource issues during the strategy formulation process. This integration occurs in three sequential steps:
2.3.3.1.1. First, the strategic planning team informs the HRM function of the various strategies the company is considering.
2.3.3.2. The strategic planning function and the HRM function are interdependent in two-way linkage.
2.3.4. Integrative linkage
2.3.4.1. Integrative linkage is dynamic and multifaceted, based on continuing rather than sequential interaction.
2.3.4.2. Rather than using an iterative process of information exchange, companies with integrative linkage have their HRM functions built in to the strategy formulation and implementation processes
2.3.4.3. Thus, in strategic HRM, the HRM function is involved in both strategy formulation and strategy implementation.
2.4. Strategic Formulation
2.4.1. HR Inputs =>
2.4.1.1. External Analysis
2.4.1.2. Internal Analysis
2.4.1.3. Mission
2.4.1.3.1. Goals
2.5. Strategic Implementation
2.5.1. Variables to Be Considered in Strategy Implementation
2.5.1.1. Organizational strategy
2.5.1.2. Taks design
2.5.1.3. Selection, training and developmment of people
2.5.1.4. Reward Systems
2.5.1.5. Types of information
2.6. HRM approaches
2.6.1. Job Analysis and Design
2.6.2. Employee Recruitment and Selection
2.6.3. Employee Training and Development
2.6.4. Performance Management
2.6.5. Pay Structure, Incentives, and Benefits
2.6.6. Labor and Employee Relations
2.7. Strategic Types
2.7.1. The “overall cost leadership” strategy focuses on becoming the lowest cost producer in an industry.
2.7.1.1. This strategy is achieved by constructing efficient large-scale facilities, by reducing costs through capitalizing on the experience curve, and by controlling overhead costs and costs in such areas as research and development, service, sales force, and advertising.
2.7.1.2. This strategy provides above-average returns within an industry, and it tends to bar other firms’ entry into the industry because the firm can lower its prices below competitors’ costs.
2.7.2. The “differentiation” strategy attempts to create the impression that the company’s product or service is different from that of others in the industry.
2.7.2.1. The perceived differentiation can come from creating a brand image, from technology, from offering unique features, or from unique customer service.
2.7.2.2. If a company succeeds in differentiating its product, it will achieve above-average returns, and the differentiation may protect it from price sensitivity.
2.8. HRM needs in strategic types
2.8.1. Role Behaviour
2.8.1.1. Role behaviors are the behaviors required of an individual in his or her role as a jobholder in a social work environment.
2.8.1.2. These role behaviors vary on a number of dimensions.
2.8.1.3. Additionally, different role behaviors are required by the different strategies.
2.8.2. Cost strategies
2.8.2.1. Companies engaged in cost strategies, because of the focus on efficient production, tend to specifically define the skills they require and invest in training employees in these skill areas.
2.8.2.1.1. They also rely on behavioral performance management systems with a large performancebased compensation component.
2.8.3. Differentiation strategies
2.8.3.1. Employees in companies with a differentiation strategy need to be highly creative and cooperative; to have only a moderate concern for quantity, a long-term focus, and a tolerance for ambiguity; and to be risk takers.
2.8.3.1.1. Employees in these companies are expected to exhibit role behaviors that include cooperating with others, developing new ideas, and taking a balanced approach to process and results.
2.9. Directional Strategies
2.9.1. Concentration strategies
2.9.2. Mergers and acquisitions
2.9.3. Downsizing
2.10. Strategy evaluation and control
2.10.1. This monitoring makes it possible for the company to identify problem areas and either revise existing structures and strategies or devise new ones.
2.11. The Role of HRM in gaining competitive advantages
2.11.1. Emergent Strategies
2.11.1.1. Consist of the strategies that evolve from the grassroots of the organization and can be thought of as what organizations actually do, as opposed to what they intend to do.
2.11.1.1.1. However, most emergent strategies are identified by those lower in the organizational hierarchy. It is often the rank-and-file employees who provide ideas for new markets, new products, and new strategies.
2.11.2. Enhancing firm competitiveness
2.11.2.1. The role of human resources in competitive advantage should continue to increase because of the fast-paced change characterizing today’s business environment.