An Overview of Human

Resources Management

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Principles of Human
Resource Management
16 e

Bohlander | Snell
 Chapter Objectives
After studying this chapter, you should be able to

LEARNING OUTCOME 1 Explain how human resources managers can help their firms
gain a sustainable competitive advantage through the strategic
utilization of people.
LEARNING OUTCOME 2 Explain how globalization affects human resources management.

LEARNING OUTCOME 3 Explain how good human resources practices can help a firm
achieve its corporate social responsibility and sustainability goals.
LEARNING OUTCOME 4 Describe how technology can improve how people perform and
are managed.

LEARNING OUTCOME 5
Discuss how cost pressures affect human resources management
policies.
LEARNING OUTCOME 6 Discuss how firms can leverage employee differences to their
strategic advantage.

LEARNING OUTCOME 7
Explain how educational and cultural changes in the workforce are
affecting human resources management.

LEARNING OUTCOME 8 Provide examples of the roles and competencies of today's HR

managers.
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Why Study Human Resources Management?

• Human Resources Management (HRM)

¾ The process of managing human talent to achieve
an
a • “Why Study HRM?”
¾ Staffing the organization, designing jobs and teams,
imam
a c
immune developing skillful employees, identifyining approaches for
xx
am improving their performance, and rewarding employee a
successes—all typically labeled HRM issues—are as
relevant to line managers as they are to managers in the HR
department.

was ¾ Great business plans, products and services can easily be

copied by your competitors. Great pers o nnel cannot.
in
3 of XX
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 HIM

Human Capital and HRM

• Words to describe how important people are to

organizations – Human Resources, Human Capital,
i
Intellectual Asssets, and yTalent Management. am

• Human Capital - The knowledge, skills, and capabilities

of individuals that have economic value to an 1 i
na
organization
¾ Human capital is intangible and cannot be managed the way
organizations manage jobs, products, and technolog0ies.
¾ Valuable because capital:
• is based on company-specific skills.
• is gained through long-term
experience.
“An organization’s ability to learn, and translate that learning into action rapidly,
is the ultimate competitive business advantage.” ( Jack Welch, General
Electr ic )
1 –4
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Figure 1.1 provides an overall framework of HR activities. From this figure, we can see that

maximise aamursin

im

so t.es isa

1–5
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Competitive Challenges and
Human Resources Management

• Top challenges include:

said ¾ Responding Strategically to Changes in the Marketplace
¾ Competing, Recruiting, and Staffing Globally
¾ Setting and Achieving Corporate Social ResponsibilityCSR
and Sustainability Goals

É
¾ Advancing HRM with Technology
¾ Containing Costs While Retaining Top Talent and
Maximizing Productivity
¾ Responding to the Demographic and Diversity
Challenges of the Workforce
¾ Adapting to Educational and Cultural Shifts Affecting
the Workforce

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–6 6 of 36
Challenge 1: Responding Strategically to
Changes in the Marketplace

• Human Resources Managers and

Business Strategy
¾ From administrative tasks to strategic partners.
¾ Human resources managers need an intimate
understanding of their firms’ competitive business
operations and strategies. They need
to understand…..
• Total quality • Change management
management • Reactive change
• Reengineering • Proactive change
• Downsizing • Six Sigma
• Outsourcing
And more….
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distributed with a certain
product or service or
otherwise on a password-
protected website for
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use.
1–7
 Challenge 1: Responding Strategically to
Changes in the Marketplace (cont.) d
• Total Quality Management (TQM)
¾ A set of principles and practices whose core ideas include
understanding customer needs, doing things right the first
time, and striving for continuous improvement. ai.si is
• Six Sigma a n
a s

¾ A process used to translate customer needs into aIaseat of

at

optimal tasks that are performed in concert with one

another.
– HR facilitates organizational development of Six Sigma.
– HR helps balance the opposing needs for order and control
with the needs for growth and creativity.

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1–8 8 of 36
Challenge 1: Responding Strategically to
Changes in the Marketplace (cont.)

• Reengineering and HRM responses msn.at

mess www.ask siwmimproume

¾ Fundamental rethinking and radical redesign

of business processes to achieve dramatic
improvements in cost, quality, service, and speed.
one as Is
– Requires that managers create an
a environment or change.

I
– Depends on effective leadership and
communication processes.

reviewed and modified. I

– Requires that administrative systems be
new
an
m
wowdifiwed.aiiiwe

9 of 36
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Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–9
Challenge 1: Responding Strategically to
Changes in the Marketplace (cont.)

i
• Downsizing
imam.am osa.emia.w
wisdom
me ¾ The planned elimination of jobs (“head count”).
soso.im
¾ Layoffssinensis Wtam

i • Outsourcing
¾ Contracting outside the organization to have work
was
done that formerly was done by inOterfnal ox.am
mm
employees.
w • Offshoring (Global Sourcing) Iii
¾ The business of sending jobs to
countries
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–10 10 of 36
Challenge 1: Responding Strategically to
Changes in the Marketplace (cont.)

• Change
Change management is a systematic way of bringing
about and managing both organizational changes and
00changes on the individual level
reaction
t
-Reactive
t
change occurs after external forces have
already affected performance.
-Proactive change initiated to take advantage Ijm
of
Before jam
ta rgeted
f an in
opportunities
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1–11 11 of 36
Challenge 1: Responding Strategically to
Changes in the Marketplace (cont.)

• Why Change Efforts Fail:

si wigpom casino a
¾ Not establishing a sense of
¾ Not creating a powerful coalition to guide the effort.
¾ Lacking leaders who have a vision.
¾ Not
¾ Lacking leaders
removing who communicate
obstacles the
to the new vision.
¾ Not systematically planning for and creating short-term
“wins.” I no
¾ Declaring victory too soon.
¾ Not anchoring changes in the corporate culture.

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–12 12 of 36
Challenge 2: Competing, Recruiting, and
Staffing Globally

• Globalizatio
¾ The trend toward opening up foreign markets to
international trade and
• Impact of
¾ “Anything, anytime, anywhere” markets
¾ Partnerships with foreign firms oasis
image
Bae b ¾ Lower trade and tariff barriers
How Globalization Affects HRM
They have to balance a complicated set of issues related
to different geographies, including different cultures,
employment laws, and business practices, and the safet
of employees and facilities abroad.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–13 13 of 36
Challenge 3: Setting and Achieving Corporate
Social Responsibility and Sustainability Goals
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I
www.sina.w

• Corporate Social Responsibility (CSR) amsa

¾ The responsibility of the firm to act in the best

interests of the people and communities affected by its
activities.
ima
¾ Sustainability is closely related to corporate social
responsibility. Sustainability refers to a company’s
ability to produce a good or service without damaging
the environment or depleting a resource.

permitted on a
14mwww.es.ua in a
license
password-
protected
ans'tsaponin distribute
d with a
website for
classroom

suaisiy.org a certain
product or
service or
use.

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1–14 14 of 36
Challenge 4:
Advancing HRM
Technolog
i
• Collaborative software that allows workers
anywhere gym
anytime to interface and share information with one
another electronically—wikis, document-sharing platforms
such as Google Docs, online chat and instant messaging,
web and video conferencing, and electronic calendar
systems—have changed how and where people and
companies do business.
• From Touch Labor
i
to Knowledge Workers

if
¾ Knowledge Workers - Workers whose responsibilities extend
beyond the physical execution of work to include planning, physical.ms
¾ decision making, and problem-solving.
a airwain
Touch Labor - the hand on production that is responsible to be
assigned to a piece of work. Ex eager
i emmi
permitted license
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with a certain product or service or otherwise on a password-protected website for classroom use.
1–15 15 of 36
 Challenge 4: Advancing HRM with Technology
(cont.) 1
2
Operational
relational in nature
s.tw 3 34
transformational
3
• A Human Resources Information System (HRIS) st m
its.
mainmasts
ow
- A computerized system that provides current and
accurate data for purposes of control and decision-
making.
Isak
¾ It has become a potent weapon for lowering administrative
costs, increasing productivity, speeding up response times, www.e
Ina
improving decision-making, and tracking a company’s talent.

¾ Another way in which information technology is affecting

human resources management is relational in nature --
connecting people with each other and with HR data they
need.

permitted in a license
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product or service or
otherwise on a password-protected website for classroom use.
1–16
16 of 36
Challenge 4: Advancing HRM with Technology
(cont.)

for HRIS
• Benefits:
¾ Automation of routine tasks, lower administrative
e
costs, increased productivity and response times.
in
¾ Self-service access to information and training for
xxxx managers and employees
misansei
Penneram
¾ Online recruiting, scrÉeeÉning, and pretesting of
applicants
¾ Training, tracking, and selecting employees based on
their record of skills and abilities
¾ Organization-wide alignment of “cascading” goals

permitted in a license
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otherwise on a password-protected website for classroom use.
1–17
17 of 36
Challenge 4: Advancing HRM with Technology
(cont.)

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Challenge 4: Advancing HRM with Technology
(cont.)

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Challenge 4: Advancing HRM with Technology
(cont.)

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 Challenge 5: Containing Costs While Retaining
ex
Top Talent and Maximizing Productivity

• Organizations take many approaches to Wetted

lowering labor-related costs, including….
6318 15 so
tobias.at
Carefully managing astainearsay
employees’ benefits
¾
¾ Downsizing - Planned elimination of jobs.
¾ Furloughing Empglogyees - A situation in which an organization asks or
requires employees to take time off for either no pay or reduced pay.
¾ Outsourcing - Contracting outside the organization to have work done that
formerly was done by internal employees.
¾ Offshoring - The business practice of sending jobs to other countries
a # Nearshoring is the process of moving jobs closer to one’s home country.
# Homeshoring means bringing jobs back to their domestic markets.
¾ Employee Leasing. 24 aim
t ¾ Productivity Enhancements. sista.es
mistime
s4iB 5jiz.s
soo w pt
www.ni
 1–21
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permitted 21 of 36
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Challenge 5: Containing Costs While Retaining
Top Talent and Maximizing Productivity (cont.)

imma
• Hidden Costs of a Layoff
¾ Severance and rehiring on do
costs
¾ Accrued vacation and sick day payouts
this He
¾ Pension and benefit waasic
ysasxasibisasswaaa.a
payoffs
m
¾ Potential lawsuits from aggrieved am
Him
workers
A sinine ¾ Loss of institutional memory and trust in management
a t i
au in

¾ Lack of staffers when the economy rebounds imalay asbeen

ix stems oasis
¾ Su r v aiwvwowrsw who are risk-averse,
L a y mis

paranoid,
and political
is 6116 96 HA
fit swim 1 11946
t s61
81
im
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Challenge 5: Containing Costs While Retaining
Top Talent and Maximizing Productivity (cont.)

• Benefits of a No-Layoff Policy It w w w ay

sea layoff b
Gabi a

w i b w a y o r a a s o
¾ A fiercely loyal, more produ c ti v e w o r k f o r ce
¾ Higher customer satisfaction Productiv se eaas a
em am
a6 asease
¾ Readiness to snap back with the economy twin on
inwww.as.is
¾ A recruiting edge
👍 ¾ Workers who aren’t afraid to innovate, knowing
their jobs are safe. is I amdead of d quit
layoff a ow 24 a8

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Cengage All Rights
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product or service or otherwise on a password-protected website for classroom use.
1–23 23 of 36
Challenge 5: Containing Costs While Retaining
Top Talent and Maximizing Productivity (cont.)

HI a
• Employee Leasing a im
¾ 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.

lil wt 65611 M

Mdl a
pi

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1–24 24 of 36
Challenge 6: Responding to the Demographic
and Diversity Challenges of the Workforce

• In a recent survey, almost half of the organizations reported

that the biggest investment challenge facing them over the
next ten years is obtaining human capital and optimizing their
human capital investments. Why is this so? Changes in the
demographic makeup of employees, such as their ages,
education levels, and ethnicities, is part of the reason why.

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 Challenge 6: Responding to the
and Challenges of the Workforce

Demographic
¾ More diverse workforce Managing
¾ Being aware of
– Ethnic and cultural characteristics common
challenges to employees, while also man
¾ Aging workforce
¾ More educated
workforce https
– Necessity of basic skills ://www.youtube.com/watch?v=Pn
training 6WzHw7gHY

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1–26 26 of 36
Challenge 6: Responding to the Demographic
and Diversity Challenges of the Workforce(cont.)

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Challenge 6: Responding to the Demographic
and Diversity Challenges of the Workforce(cont.)

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Challenge 7: Adapting to Educational and
Cultural Shifts Affecting the Workforce

• Over the years, the educational attainment of the U.S.

labor force has risen dramatically. Figure 1.5 shows that
it clearly pays to get a college education. An education
also helps a person stay out of the ranks of the
unemployed.

• For example, in 2010, the unemployment rate of

people ages twenty to twenty-four hit 17 percent. But
those in the same age range with college degrees fared
better. The unemployment rate for them was a little
over 9 percent.

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Challenge 7: Adapting to Educational and
Cultural Shifts Affecting the Workforce(cont.)

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 Challenge 7: Adapting to Educational and I WI
Cultural Shifts Affecting the Workforce(cont.) t

• Other Factors:
¾ Cultural and Societal Changes Affecting the Workforce
t il
¾ Emp l oyseae Rights
¾ Privacy Concerns of g Wsi 21 s ti
E w
Employees
¾ Changing Attitudes toward Work.. Finding interesting
work
¾ Balancing W ork and Fa mily
O O

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31 of 36
Challenge 7: Adapting to Educational and
Cultural Shifts Affecting the Workforce(cont.)

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Challenge 7: Adapting to Educational and
Cultural Shifts Affecting the Workforce(cont.)

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 The Partnership of Line Managers WH
S
and HR Departments
• Successful organizations combine the experience of line managers with the
expertise of HR managers to develop and utilize the talents of employees to
their greatest potential. Line managers are non-HR managers who are
responsible for overseeing the work of other employees.
• Just as there are different types of line managers who specialize in different
functions—operations, accounting, marketing, and so forth—there are
different types of human resources managers who specialize in different HR
functions.

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1–34
34 of 36
The Partnership of Line Managers
and HR Departments (cont.)

• Responsibilities of Human Resources

1. Strategic advice and 2 i'tomblyswegay
counsel
2. Service g
as
3. Policy formulation and implementation
4. Employee advocacy
aim

• Competencies Human Resources Managers Require

¾ Business mastery kinda.ba aj
¾ HR mastery Eneamrsaon
¾ Personal credibility✅
am
what did

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product or service or otherwise on a password-protected website for classroom use.
1–35
35 of 36
The Partnership of Line Managers
and HR Departments (cont.)

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Key Terms

corporate social responsibility managing diversity

downsizing
offshoring
employee leasing
globalization outsourcing
human capital proactive change
human resources information
reactive change
system (HRIS)
human resources management reengineering
(HRM)
Six Sigma
knowledge workers
total quality management
(TQM)

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