human resource challenge

1. Belcourt et al. 4th edition
Challenge of human resource management
by
abdulkadir sugal
challange HRM, abdulkadir, february
2014
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2. Belcourt et al. 4th edition
1.
2.
how firms gain sustainable competitive advantage through
people.
Explain how globalization is influencing human resources
management.
3.
the impact of information technology on managing people.
4.
the importance of change management.
5.
State HR’s role in developing intellectual capital.
6.
7.
Differentiate how TQM and reengineering influence HR
systems.
Roles and competencies of typical HRM
challange HRM, abdulkadir, february
2014
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3. Belcourt et al. 4th edition

Human Resource Management
◦ A set of inter-related policies, practices, and programs
whose goal is to attract, socialize, motivate, maintain,
and retain an organization’s employees

Core Competencies
◦ Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to
customers.
challange HRM, abdulkadir, february
2014
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4. Belcourt et al. 4th edition

Sustained competitive advantage through people
is achieved if these human resources:
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Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.
challange HRM, abdulkadir, february
2014
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5. Belcourt et al. 4th edition
COMPETITIVE
COMPETITIVE
CHALLENGES
CHALLENGES
••Globalization
Globalization
••Technology
Technology
••Managing change
Managing change
••Human capital
Human capital
••Responsiveness
Responsiveness
••Cost containment
Cost containment
HUMAN
HUMAN
RESOURCES
RESOURCES
••Planning
Planning
••Recruitment
Recruitment
••Staffing
Staffing
••Job design
Job design
•Training/development
•Training/development
••Appraisal
Appraisal
••Communications
Communications
••Compensation
Compensation
••Benefits
Benefits
••Labour relations
Labour relations
EMPLOYEE
EMPLOYEE
CONCERNS
CONCERNS
••Background diversity
Background diversity
••Age distribution
Age distribution
••Gender issues
Gender issues
••Educational levels
Educational levels
••Employee rights
Employee rights
••Privacy issues
Privacy issues
••Work attitudes
Work attitudes
••Family concerns
Family concerns
Figure 1.1
challange HRM, abdulkadir, february
2014
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6. Belcourt et al. 4th edition

The most pressing competitive issues facing
firms:
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Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs
challange HRM, abdulkadir, february
2014
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7. Belcourt et al. 4th edition

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
challange HRM, abdulkadir, february
2014
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8. Belcourt et al. 4th edition

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.
challange HRM, abdulkadir, february
2014
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9. Belcourt et al. 4th edition

Knowledge Workers
◦ Workers whose
responsibilities extend
beyond the physical
execution of work to include
planning, decision making,
and problem solving.
challange HRM, abdulkadir, february
2014
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10. Belcourt et al. 4th edition

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.
challange HRM, abdulkadir, february
2014
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11. Belcourt et al. 4th edition
Operational
Operational
Impact
Impact
Relational
Relational
Impact
Impact
HRM
HRM
Transformational
Transformational
Impact
Impact
challange HRM, abdulkadir, february
2014
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12. Belcourt et al. 4th edition
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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
challange HRM, abdulkadir, february
2014
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13. Belcourt et al. 4th edition

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.
challange HRM, abdulkadir, february
2014
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14. Belcourt et al. 4th edition
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Why Change Efforts Fail:
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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.”
7. Declaring victory too soon.
8. Not anchoring changes in the corporate culture.
challange HRM, abdulkadir, february
2014
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15. Belcourt et al. 4th edition
Intellectual capital
 is the amount by which the market value of a firm
exceeds its tangible (physical and financial)
assets less liabilities.
 Understanding the intellectual capital in an
enterprise allows leveraging its intellectual
assets. For a corporation the result will optimize
its stock price.


challange HRM, abdulkadir, february
2014
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16. Belcourt et al. 4th edition

Intellectual capital is normally classified
as follows:
Human capital
 Structural capital
 Relational capital

challange HRM, abdulkadir, february
2014
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17. Belcourt et al. 4th edition
Human capital:
 . an organization’s

•

•

combined human capability for solving
business problems and exploiting its Intellectual Property
Structural capital:
the supportive non-physical infrastructure, processes and
databases of the organization that enable human capital
to function
Relational capital:
consisting of such as customer relationships, supplier
relationships, trademarks
challange HRM, abdulkadir, february
2014
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18. Belcourt et al. 4th edition

Human Capital
◦ The knowledge, skills, and capabilities of individuals that
have economic value to an organization.
challange HRM, abdulkadir, february
2014
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19. Belcourt et al. 4th edition
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
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Creation of knowledge
Utilization of
knowledge
Application of
knowledge
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2014
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20. Belcourt et al. 4th edition
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
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Total Quality Management (TQM)
The continuous process of reducing or eliminating errors
in manufacturing, streamlining supply chain
management, improving the customer experience and
ensuring that employees are up-to-speed with their
training.
Six Sigma
◦ A process used to translate customer needs into a set of
optimal tasks that are performed in concert with one
another.
challange HRM, abdulkadir, february
2014
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21. Belcourt et al. 4th edition
TQM has been coined to describe a philosophy that
makes quality the driving force behind leadership,
design, planning, and improvement initiatives. For
this, TQM requires the help of those eight key
elements. These elements can be divided into four
groups according to their function. The groups are:
I. Foundation – It includes: Ethics, Integrity and
Trust.
II. Building Bricks – It includes: Training,
Teamwork and Leadership.
III. Binding Mortar – It includes: Communication.
IV. Roof – It includes: Recognition.
challange HRM, abdulkadir, february
2014
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22. Belcourt et al. 4th edition

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.
challange HRM, abdulkadir, february
2014
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23. Belcourt et al. 4th edition
Overall Responsibilities
 Human resource managers have strategic and
functional responsibilities for all of the HR
disciplines.
 A human resource manager has the expertise of
an HR generalist combined with general business
and management skills

challange HRM, abdulkadir, february
2014
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24. Belcourt et al. 4th edition
Compensation and Benefits
 Human resource managers provide guidance and
direction to compensation and benefits specialists.
Within this discipline, human resources managers
develop strategic compensation plans, align
performance management systems with
compensation structure and monitor negotiations
for group health care benefits.

challange HRM, abdulkadir, february
2014
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25. Belcourt et al. 4th edition
Training and Development
 Employee training and development includes new
hire orientation, leadership training and
professional development seminars and
workshops.
 Human resource managers oversee needs
assessments to determine when training is
necessary and the type of training necessary to
improve performance and productivity

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2014
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26. Belcourt et al. 4th edition
 Employee
Relations
Although the employee relations specialist is responsible
for investigating and resolving workplace issues, the
human resource manager has ultimate responsibility for
preserving the employer-employee relationship through
designing an effective employee relations strategy.
 An effective employee relations strategy contains
specific steps for ensuring the overall well-being of
employees

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27. Belcourt et al. 4th edition
challange HRM, abdulkadir, february
2014
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