Introduction to HRM and Gaining Competitive Advantages

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By Muhammad Afaq Mazhar

After this Lecture what we will learn

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Introduction What is HRM Why it is Resource HRM Concept Challenges of HRM Function and role of HR
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Introduction
o The role of Human Resource Management is to ensure that a companys human resources provide a competitive advantage o Human Resource managers should be integrally involved in a companys strategic management process, they should:
o have input in strategic plan o have specific knowledge of strategic goals o know the employee skills, behaviours and attitudes needed to support strategic plan o develop programsAfaq Mazhar By Muhammad to ensure employees

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CONCEPT
o HR as Business Partners o Organizational Structure in Line with Business Goals o Right Man for the Right Job o Specialized Roles o Content Workforce

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CHALLENGES
o Competition o Global Change o Expectations of Stakeholders o Access to Technology and Information o Resistance to Change o I Can do it all

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PAKISTANI PERSPECTIVE
o Part of Admin Setup or Mere Change of Name o Vertical Orgonogram o Personnel, ACR o Colonial Policies & Procedures o Lack of Organizational Development

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SPECIALIZED FUNCTIONS
o Organizational Development o Performance Management o Career Planning o Compensation o Training & Development o Employee Relations o E- Recruitment
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Gaining Competitive Advantage

o Competitiveness refers to a companys ability to maintain and gain market share in its industry o It is related to company effectiveness o Human Resource Management refers to the policies, practices, and systems that influence employees behavior, attitudes, and performance
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What Roles Do HR Departments Perform?

Strategic Partner

Administrative Expert

Human Resources

Employee Advocate

Change Agent

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How is the HRM Function Changing?

o The amount of time that the HRM function devotes to administrative tasks is decreasing and its roles as a strategic business partner, change agent, and employee advocate are increasing o In shifting the focus from current operations to strategies for the future and preparing non-HR managers to develop and implement HR practices, HR managers face two important challenges:
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o Self-service refers to giving

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The HRM Profession

o HR salaries vary depending on education and experience as well as the type of industry
o HR specialists o HR generalists o College degrees are held by the vast majority of HRM professionals o Professional certification is less common than membership in professional associations
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o The primary professional organization for HRM is the Society

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Competitive Challenges Influencing HRM

o Three competitive challenges that companies now face will increase the importance of HRM The Technology practices: Challenge
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The Challenge of Sustainability The Global Challenge

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The Sustainability Challenge o Sustainability refers to the ability of a

company to survive and succeed in a dynamic competitive environment o Stakeholders refers to shareholders, the community, customers, and all other parties that have an interest in seeing that the company succeeds o Sustainability includes the ability to:
o deal with economic and social changes, o engage in responsible and ethical business practices, o provide high quality products and services, and o put in place methods to determine if the company is meeting stakeholders needs
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The Sustainability Challenge economy o The changing structure of the

o Impact of September 11, 2001 o The competition for labor

o Skill demands for jobs are changing o Knowledge is becoming more valuable
o Intellectual capital refers to the creativity, productivity, and service provided by employees o Knowledge workers are employees who contribute to the company not through manual labor but through a specialized body of knowledge o Empowerment means giving employees responsibility Muhammad Afaq Mazhar to make decisions and authority By 14 regarding all aspects of product development

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o A learning organization embraces a culture of lifelong learning, enabling all employees to continually acquire and share knowledge o The psychological contract describes what an employee expects to contribute and what the company will provide to the employee for these contributions o Alternative work arrangements include independent contractors, oncall workers, temporary workers, and
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The Sustainability Challenge

The Global Challenge

o Companies are finding that to survive they must compete in international markets o Every business must be prepared to deal with the global economy. This is made easier by technology. o Offshoring refers to the exporting of jobs from developed countries to less developed countries. o Many companies are entering international markets by exporting their products overseas, building
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The Technology Challenge

o Technology has reshaped the way we play, plan our lives, and where we work
o The overall impact of the Internet o The Internet has created a new business model ecommerce in which business transactions and relationships can be conducted electronically

o Advances in technology have:

The Technology Challenge

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o changed how and where we work, o resulted in high-performance models of work systems, o increased the use of teams to improve customer service and product quality, o changed skill requirements, o increased working partnerships, o led to changes in company structure and reporting relationships, o increased the availability of Human Resource Information Systems (HRIS), which are used to acquire, store, manipulate, analyze, retrieve, and distribute HR information, o increased the availability of e-HRM, which is the processing andMuhammad Afaq Mazhar of digitalized By transmission 18

o HRM practices that help companies deal with the four competitive challenges can be grouped into four dimensions
o The human resource environment o Acquiring and preparing human resources o Assessment and development of human

Meeting Competitive Challenges Through HRM Practices

Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness o Customer needs for new products or services influence the number and type of employees businesses need to be successful o Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality, and customer service o Human resource management practices of 04/14/12 both managers Muhammad Afaq Mazhar By and the human resource 20

Meeting Competitive Challenges Through HRM Practices o

Customer Service and Quality Emphasis

o Total Quality Management (TQM) is a company-wide effort to continuously improve the ways peoples, machines, and systems accomplish work o Core values of TQM include: o designing methods and processes to meet the needs of internal and external customers o all employees receive training in quality o promotion of cooperation with vendors, suppliers, and customers 04/14/12 o management gives feedback on By Muhammad Afaq Mazhar 21

Changing Demographics Diversity of the Workforce

o Internal labor force is the labor force of current employees. o External labor market includes persons actively seeking employment. o The workforce is becoming increasingly diverse.
o Women o Minorities o Disabled workers 04/14/12 By o Immigrants Muhammad Afaq Mazhar form different cities

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o To successfully manage a diverse workforce, managers must develop a new set of skills, including:
o Communicating effectively with employees from a wide variety of cultural backgrounds. o Coaching and developing employees of different ages, educational backgrounds, ethnicity, physical ability, and race. o Providing performance feedback that is based on objective outcomes. o Creating a By Muhammad Afaq Mazhar work environment that makes 04/14/12 23

Managing a Diverse Workforce

Legal and Ethical Issues

o Five main areas of the legal environment have influenced HRM over the past 25 years
o Equal employment opportunity o Employee safety and health o Employee pay and benefits o Employee privacy o Job security

o Women and minorities still face the glass ceiling

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Legal and Ethical Issues

o Human resource managers must satisfy three basic standards for their practices to be considered ethical:
o HRM practices must result in the greatest good for the largest number of people o Employment practices must respect basic human rights of privacy, due

With the continuing trend of Brain Drain in Pakistan, what do you expect in the next 15 years? Pros? Cons?

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Brain Drain in Pakistan

With the continuous trend of brain drain in Pakistan, we can expect a short-term loss to the economy of Pakistan and this short-term loss will persist in the next 15 years if the economy of Pakistan does not improve but if the economy of Pakistan improves, we can expect the same people coming back to Pakistan with more knowledge and
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How can human resource managers help employees deal with work/life issues?

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HRM dealing with work/life issues

HRM managers have implemented programs such as flex-time and telecommuting that allow employees to balance both a career and a family. Benefit packages have been altered to reflect the needs of dual career couples

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Labor Supply
Do We Have a Shortage of Skilled Labor?
The combination of the small population, the already high participation rate of women in the workforce, and early retirements will lead to a significantly smaller future labor pool from which employers can hire.
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Labor Supply
Why Do Organizations Lay Off During Shortages?
Downsizing is part of a larger goal of balancing staff to meet changing needs. Organizations want more flexibility to better respond to change. This is often referred to as rightsizing, linking employee needs to organizational strategy.
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Labor Supply
How Do Organizations Balance Labor Supply?
Organizations are increasingly using contingent workers to respond to fluctuating needs for employees. Contingent workers include
Part-time workers Temporary workers Contract workers
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Labor Supply
Issues Contingent Workers Create for HRM
How to attract quality temporaries How to motivate employees who are receiving less pay and benefits How to have them available when needed How to quickly adapt them to the organization How to deal with potential conflicts between core and contingent workers
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Thanks

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