Week 3 - Challanges of HRM Part 2-26 Sep 2b3.pdf
- 1. THE COMPETETIVE CHALLENGES OF HRM WEEK - 3 26 Sep 2023 1–1
- 2. QUIZ 1 26 Sep 2023 1–2 Question 1: W h a t a r e h u m a n r e s o u r c e specialties? Question 2: What all activities are performed as part of Management process by HR managers to achieve organizational goals? Note: Time – 20 Mins Write Down your Name and Roll no on the paper
- 3. © 2005 by Nelson, a division of Thomson Canada Limited. 1–3 Competitive Challenges and Human Resources Management • The most pressing competitive issues facing firms: Going global Embracing technology Managing change Developing human capital Responding to the market Containing costs
- 4. 1–4 Going Global • • Globalization The trend toward opening up foreign markets to international trade and investment. Impact of Globalization Partnerships with foreign firms “Anything, anywhere, anytime” markets Lower trade and tariff barriers NAFTA, EU, APEC trade agreements WTO and GATT
- 5. 1–5 Going Global (cont’d) • Impact on HRM Different geographies, cultures, laws, and business practices Issues: Identifying capable expatriate managers. Developing foreign culture and work practice training programs. Adjusting compensation plans for overseas work.
- 6. 1–6 Embracing New Technology • Knowledge Workers Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.
- 7. 1–7 Influence of Technology in HRM • Human Resources Information System (HRIS) Computerized system that provides current and accurate data for purposes of control and decision making. Benefits: 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, increase productivity, and response times.
- 8. 1–8 Major Uses For HR Information Systems Source: HR and Technology Survey, Deloitte Touche and Lawson Software, 1998. HRM 1
- 9. 1–9 Impact of IT on HRM Transformational Impact Operational Impact Relational Impact HRM
- 10. 1–10 HRM IT Investment Factors • • • • Initial costs and annual maintenance costs Fit of software packages to the employee base Ability to upgrade, increased efficiency and time savings Compatibility with current systems • • • • • User-friendliness Availability of technical support Needs for customizing Time required to implement Training time required for HR and payroll
- 11. 1–11 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 Formal change management programs help to keep employees focused on the success of the business.
- 12. 1–12 Managing Change through HR • 1. 2. 3. 4. 5. 6. 7. 8. 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.
- 13. 1–13 Developing Human Capital • Human Capital The knowledge, skills, and capabilities of individuals that have economic value to an organization.
- 14. 1–14 Human Capital and HRM • • • Creation of knowledge Utilization of knowledge Application of knowledge
- 15. 1–15 Responding to the Market • Reengineering Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Requires that managers create an environment for change. Depends on effective leadership and communication processes. Requires that administrative systems be reviewed and modified.
- 16. 1–16 Containing Costs • Downsizing The planned elimination of jobs (“head count”).
- 17. 1–17 Containing Costs (cont’d) • Hidden Costs of Layoff Severance and rehiring costs Accrued vacation and sick day payouts Pension and benefit payoffs Potential lawsuits from aggrieved workers Loss of institutional memory and trust in management Lack of staffers when the economy rebounds Survivors who are risk-averse, paranoid, and political
- 18. © 2005 by Nelson, a division of Thomson Canada Limited. 1–18 Containing Costs (cont’d) • Benefits of a No-Layoff Policy A fiercely loyal,more productive workforce Higher customer satisfaction A recruiting edge Workers who aren’t afraid to innovate, knowing their jobs are safe.
- 19. 1–19 Containing Costs • • Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees. Employee Leasing The process of dismissing employees who are then hired by a leasing company (which handles all HR- related activities) and contracting with that company to lease back the employees.
- 20. 1–20 Productivity Enhancements Figure 1.3 • • • • • MOTIVATION Job enrichment Promotions Coaching Feedback Rewards • • • • ENVIRONMENT Empowerment Teams Leader support Culture • • • • ABILITY Recruitment Selection Training Development
- 21. • • • • • • • • Traditional HR Function Reactive Collecting HR data Responding to goals and objectives set by executives Complying with laws, policies, and procedures Administering employees benefits programs Designing training programs Staffing Applying compensation plans • • • • • • • • Emerging HR practice Proactive Measuring HR with metrics Setting strategic HR goals and objectives Developing and revising policies and procedures Evaluating benefits strategically Identifying training needs HR planning and linking with external staffing needs Developing compensation plans HRM shifts from operational to strategic
- 22. 1–22 Demographic and Employee Concerns • The Diversity Challenge HRM 4
- 25. 1–25 Rising levels of education
- 26. 1–26 Cultural Changes • Employee Rights
- 27. 1–27 Cultural Changes • • • Concern for Privacy Changing Attitudes Towards Work Balancing Work and Family
- 28. THANKS 1–28