CHAPTER 1: HUMAN RESOURCE MANAGEMENT: GAINING A COMPETITIVE ADVANTAGE

I. Introduction
- Competitiveness refers to a company’s ability to maintain and gain market share in its industry.
- Competitiveness is related to company effectiveness.
- Human resource management (HRM) refers to the policies, practices, and systems that
influence employees’ behavior, attitudes, and performance.
- HRM practices:
1. Analysis and design of work
2. HR planning
3. Recruiting
4. Selection
5. Training and development
6. Compensation
7. Performance management
8. Employee relations
 HRM practices  Company performance
II. What Responsibilities and Roles Do HR Departments Perform?

FUNCTION RESPONSIBILITIES
Analysis and design of work Job analysis, work analysis, job descriptions
Recruitment and selection Recruiting, posting job descriptions,
interviewing, testing, coordinating use of
temporary employees
Training and development Orientation, skills training, development
programs, career development
Performance management Performance measures, preparation and
administration of performance appraisals,
feedback and coaching, discipline
Compensation and benefits Wage and salary administration, incentive pay,
insurance, vacation, retirement plans, profit
sharing, health and wellness, stock plans
Employee relations/ labor relations Attitude surveys, employee handbooks, labor
law compliance, relocation and outplacement
services
Personnel policies Policy creation, policy communications
Employee data and information systems Record keeping, HR information systems,
workforce analytics, social media, Intranet and
Internet access
Legal compliance Policies to ensure lawful behavior; safety
inspections, accessibility accommodations,
privacy policies, ethics
Support for business strategy HR planning and forecasting, talent
management, change management, organization
development
III. Strategic Role of the HRM Function
- Many HR departments are organized on the basis of a shared service model
- The shared service model:
 Help control costs and improve the business relevance and timeliness of HR practices
 A way to organize the HR function includes centers of expertise or excellence, service centers,
and business partners
- Evidence-based HR refers to the demonstration that HR practices have a positive influence on
the company’s bottom line or key stakeholders
- Evidence-based HR requires the use of HR or workforce analytics.
- HR or workforce analytics refers to the practice of using quantitative methods and scientific
methods to analyze big data.
- Many different types of jobs in the HRM profession
- Most HR professionals chose human resources as a career
- HR professionals also need to:
 Understand the language of business
 Be a credible with line managers and executives
 Be strategic partners
IV. Competitive Challenges Influencing HRM
- Competing through sustainability
 Deal with workforce and employment implications of the economy
 Understand and enhance the value of intangible assets and human capital
 Meet the needs of stakeholders: shareholders, customers, employees, and the community
 Emphasize customer service and quality
 Recognize and capitalize on the demographics and diversity of the workforce
 Deal with legal and ethical cases
- Competing through globalization
 Entering international markets
 Offshoring & reshoring
- Competing through technology
 Consider social networking
 Use HRIS, mobile device, cloud computing, and HR dashboards
 Consider high-performance work systems and virtual teams
V. Meeting Competitive Challenges through HRM Practices
- Managing the HRM environment
 Linking HRM practices to the company’s business objectives—that is, strategic human resource
management
 Ensuring that HRM practices comply with federal, state, and local laws
 Designing work that motivates and satisfies employees as well as maximizes customer service,
quality, and productivity
- Acquiring and preparing HR
 Identifying human resource requirements—that is, human resource planning, recruiting
 employees, and selecting employees
 Training employees to have the skills needed to perform their jobs
- Assessment and development of HR
 Measuring employees’ performance
 Preparing employees for future work roles and identifying employees’ work interests, goals,
values, and other career issues
 Creating an employment relationship and work environment that benefits both the company
and the employee
- Compensating HR
 Creating pay systems
 Rewarding employee contributions
 Providing employees with benefits
- Special issues