Managing

Human Resources
Bohlander  Snell  Sherman
Chapter 1
The Challenge
of Human Resources
Management

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-1
 Chapter 1
Learning Objectives
Identify how firms gain sustainable competitive
advantage through people.
Explain how globalization is influencing human
resources management.
Describe the impact of information technology on
managing people.
Identify the importance of change management.
State HR’s role in developing intellectual capital.
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
1-2
 Learning Objectives, cont.
Differentiate how TQM and reengineering
influence HR systems.
Discuss the impact of cost pressures on hr
policies.
Discuss the primary demographic and employee
concerns pertaining to HRM.
Provide examples of the roles and competencies of
today’s HR managers.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-3
Criteria for Competitive Advantage through People

Combining
Core Competencies
Through People
to Create
Competitive Advantage

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-4
 Core Competencies

Integrated knowledge sets

within an organization that
distinguish it from its competitors
and deliver value to customers

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-5
 Presentation Slide 1-1

Overall Framework for HRM

COMPETITIVE HUMAN EMPLOYEE

CHALLENGES RESOURCES CONCERNS

• globalization • planning • background diversity

• technology • recruitment • age distribution
• managing change • staffing • gender issues
• human capital • job design • educational levels
• responsiveness • training/development • employee rights
• cost containment • appraisal • privacy issues
• communications • work attitudes
• compensation • family concerns
• benefits
• labor relations

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-6
Competitive Challenges for HRM

Technology

Globalization Managing Change

Developing Cost Containment

Human Capital
Market
Responsiveness
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
1-7
 Globalization

Trend toward opening up foreign markets

to international trade and investment

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-8
 Knowledge Workers

Workers whose responsibilities extend beyond

the physical execution of work to include
decision making, problem solving, and
trouble shooting

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-9
 Human Resources
Information System (HRIS)

Computerized system that provides

current and accurate data for purposes
of control and decision making

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-10
 Reactive Change

Change that occurs after external forces

have already affected performance

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-11
 Proactive Change

Change initiated to take advantage

of targeted opportunities

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-12
 Human Capital

The knowledge, skills, and abilities

of individuals that have economic value
to an organization

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-13
 Total Quality Management
(TQM)

A set of principles and practices whose

core ideas include understanding customer
needs, doing things right the first time,
and striving for continuous improvement

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-14
 Reengineering

Fundamental rethinking and radical

redesign of business processes to achieve
dramatic improvements in cost, quality,
service, and speed

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-15
 Downsizing

The planned elimination of jobs

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-16
 Outsourcing

Contracting outside the organization

to have work done that formerly
was done by internal employees

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-17
 Employee Leasing

Employees who are hired away

by a vendor firm but continue
to work in their original jobs

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-18
 Top HR Issues for Increasing
Employee Productivity
Employee
Communications Training

Controlling
Benefits Costs

Performance
Evaluation

Employee
Incentive Pay Recruitment and
Selection
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
1-19
 Presentation Slide 1-2

Productivity Enhancements
Motivation
• job enrichment
• promotions Ability
• coaching • recruitment
• feedback Perf=f(A,M,E) • selection
• rewards • training
• development

Environment
• empowerment
• teams
• leader support
• culture
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
1-20
 Managing Diversity

Being aware of characteristics common

to employees, while also managing
employees as individuals

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-21
 Social Concerns in HRM

Employer/
Changing
Employee Rights
Demographics
Attitudes toward
Work and Family

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-22
 Value of Higher Education
Annual Earnings 80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0

Masters
No diploma

Diploma

Bachelor
Associate

Doctorate

Professional
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
1-23
 Presentation Slide 1-3

Diversity Rational Poll

The primary business reasons for diversity
management include…
 Better utilization of talent
 Increased marketplace understanding
 Breadth of understanding in leadership positions
 Enhanced creativity
 Increased quality of team problem-solving

Source: Survey data from Gail Robinson and Kathleen Dechant, “Building a business case for diversity,”
The Academy of Management Executive, 11 no3 (Aug 1997): 21-31

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-24
Responsibilities of the HR Manager

Advice and
Counsel

Service

Policy Formulation
and
Implementation

Employee
Advocacy
Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning
1-25
Presentation Slide 1-4
Framework
for HRM
Competencies Knowledge of
Business

Personal Credibility

HR Functional Managing
Expertise Change

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning

1-26