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Chapter 1: Introduction: Human Resource Management:Gaining a Competitive Advantage Introduction The key role that human resource management (HRM) plays in determining the survival, effectiveness, and competitiveness of businesses. Competitiveness refers to a companys ability to maintain and gain market share in its industry. Human resource management (HRM ) refers to the policies, practices, and systems that influence employees behavior, attitudes, and performance. Many companies refer to HRM as involving “people practices.” The role of HRM has evolved over time. Strategic Partner One of the most important roles that HRM can play today is that of a strategic partner. Aligning HRM strategies to business strategies is important to help the company execute its business strategy. Administrative Expert Playing the role of administrative expert requires designing and delivering efficient and effective HRM systems, processes, and practices. These include systems for selection, training, developing, appraising, and rewarding employees. Employee Advocate The employee advocate role entails managing the commitment and contributions of employees. No matter how skilled workers may be,I f they are alienated or angry,t hey will not contribute their efforts to the firms success, nor will they stay with the firm for long. Thus the role of employee advocate is of great importance for firms seeking to gain competitive advantage through people. Change Agent The final role, change agent, requires that HRM help transform organization to meet the new competitive conditions. In todays fast-changing competitive world, firms need to both constantly change and develop a capacity for change. HR managers must help identify and manage processes for change. How Is the HRM Function Changing? Outsourcing of the administrative role has occurred. Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services. Changes in the Employment Relationship The psychological contract describes what an employee expects to contribute and what the company will provide to the employee for these contributions. Unlike a sales contract, a psychological contract is not written. Alternative work arrangements include independent contractors, on-call workers, temporary workers, and contract company workers.Strategic Use of HRM Demanding Work, but with more Flexibility. The globalization of the world economy and the development of e-commerce have made the notion of a 40-hour work week obsolete. Similarly, professional employees face long hours and work demands that spill over into their personal lives. E-mail, pagers, and cell phones bombard employees with information and work demands. In the car, on vacation, on planes, and even in the bathroom, employees can be interrupted by work demands. More demanding work results in greater employees stress, less satisfied employees, loss of productivity, and higher turnoverall of which are costly for companies.Finding and Keeping the Best Employees Meeting Stakeholder Needs. As we mentioned earlier, company effectiveness and competitiveness are determined by whether the company satisfied the needs of stakeholders. Stakeholders include stockholders (who want a return on their investment), customers (who want a high-quality product or services), and employees (who desire interesting work and reasonable compensation for their services). The community, which wants the company to contribute to activities and projects and minimize pollution of the environment, is also an important stakeholder.The Balanced Scorecard: Measuring Performance to Stakeholders Balanced scorecard: A means of performance measurement that gives managers a chance to look at their company from the perspectives of internal and external customers, employees, and shareholders. Using the Balanced Scorecard to Manage Human Resources. Communicating the scorecard to employees gives them a framework that helps them see the goals and strategies of the company, how these goals and strategies are measured, and how they influence the critical indicators. The balanced scorecard should be used to: (1) link human resource management activities to the companys business; (2)evaluate the extent to which the HRM function is helping the company meet its strategic objectives.Table 1.6 The Balanced ScorecardCustomer Service and Quality Emphasis Total Quality Management (TQM) is a company-wide effort to continuously improve the ways people, machines, and systems accomplish work. Core values of TQM include the following: Methods and processes are designed to meet the needs of internal and external customers. Every employee in the company receives training in quality. Quality is designed into a product or service so that errors are prevented from occurring rather than being detected and corrected. The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. Managers measure progress with feedback based on data. THE GLOBAL CHALLENGE Companies are finding that to survive they must compete in international markets as well as fend off foreign corporations attempts to gain ground in the United States. Every business must be prepared to deal with the global economy. Many companies are entering international markets by exporting their products overseas, building manufacturing facilities in other countries, entering into alliances with foreign companies, and engaging in e-commerce. Besides training and developing local employees and managers, many companies are sending U.S. employees and managers to work in international locations. THE TECHNOLOGY CHALLENGE Technology has reshaped the way we play, communicate, plan our lives, and where we work. How and Where People Work. Advances in sophisticated technology along with reduced costs for the technology are changing many aspects of human resource management. New technologies allow training to occur at any time and any place. Technology is pushing the boundaries of artificial intelligence, speech synthesis, wireless communications, and networked virtual reality. High-Performance Work Systems. New technology causes changes in skill requirements and work roles and often results in redesigning work structures. High-Performance work systems maximize the fit between the companys social system(employees) and its technical system. Working in Teams. Work teams involve employees with various skills who interact to assemble a product or provide a service. Work teams may assume many of the activities usually reserved for managers, including selecting new team members, scheduling work, and coordinating activities with customers and other units in the company. Change in skill requirements. Employees need job-specific knowledge and basic skills to work with the equipment created with the new technology. Working in Partnerships. Virtual teams refer to teams that are separated by time, geographic distance, culture, and /or organizational boundaries and that rely almost exclusively on technology (e-mail, Internet, video conferencing) to interact and complete their projects. Changes in Company Structure and Reporting Relationships. The adaptive organization is characterized by a core set of values or a vital vision that drives all organizational efforts. Increased Availability of Human Resource Management Databases and e-HRM. A human resource information system (HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to the companys human resources. Electronic human resource management (e-HRM) refers to the processing and transmission of digitized information used in HRM,including text, sound, and visual images, from one computer or electronic device to another. Chapter 2 Strategic Human Resource Management What Is Strategic Management? Strategic Human Resource Management (SHRM) can be thought of as “the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.”Chapter 3 The Analysis and Design of Work Work-Flow Analysis and Organization Structure Work-flow design is the process of analyzing the tasks necessary for the production of a product or service, prior to allocating and assigning these tasks to a particular job category or person. Organization structure refers to the relatively stable and formal network of vertical and horizontal interconnections among jobs that constitute the organization. Analyzing Work Processes Analyzing Work Inputs Organization Structure Whereas work-flow design provides a longitudinal overview of the dynamic relationship by which inputs are converted into outputs, organization structure provides a cross-sectional overview of the static relationships between individuals and units that create the outputs. Organization structure is typically displayed via organizational charts that convey both vertical reporting relationships and horizontal functional responsibilities. Dimensions of Structure Two of the most critical dimensions of organization structure are centralization and departmentalization. Centralization refers to the degree to which decision-making authority resides at the top of the organizational chart as opposed to being distributed throughout lower levels (in which case authority is decentralized). Departmentalization refers to the degree to which work units are grouped based on functional similarity or similarity of work flow. Structure Configurations Although there are infinite number of ways to combine centralization and departmentalization, two common configurations of organization structure tend to emerge in organizations. The first type, referred to as a functional structure, is shown in Figure 3.2.The second common configuration is a divisional structure, three examples of which are shown in Figures 3.3, 3.4 and 3.5. Job Analysis Job analysis refers to the process of getting detailed information about jobs. Job analysis has deep historical roots. The Importance of Job Analysis to HR Managers Job analysis is such an important activity to HR managers that it has been called the building block of everything that personnel does. This statement refers to the fact that almost every human resource management program requires some type of information that is gleaned from job analysis: selection, performance appraisal, training and development, job evaluation, career planning, work redesign, and human resource planning. The Importance of Job Analysis to Line Managers Job analysis is clearly important to the HR departments various activities, but it may not be as clear why it is important to line managers. There are many reasons. First, managers must have detailed information about all the jobs in their work group to understand the work-flow process. Second, managers need to understand the job requirements to make intelligent hiring decisions. Third, a manager is responsible for ensuring that each individual is performing satisfactorily (or better). Sources of Job Analysis Information Whatever job analysis method you choose, the process of job analysis entails obtaining information from people familiar with the job. We refer to these people as subject-matter experts because they are experts in their knowledge of the job. Job Analysis Methods There are various methods for analyzing jobs and to “one best way. ”In this section we discuss three methods for analyzing jobs: the position analysis questionnaire, the task analysis inventory, and the job analysis system. Position Analysis Questionnaire(PAQ) The PAQ is a standardized job analysis questionnaire containing 194 items. These items represent work behaviors, work conditions, and job characteristics that can be generalized across a wide variety of jobs. They are organized into six sections: 1. Information input-Where and how a worker gets information needed to perform the job. 2. Mental processes-The reasoning, decision making, planning, and information processing activities that are involved in performing the job. 3. Work output-The physical activities, tools, and devices used by the worker to perform the job. 4. Relationships with other persons-The relationships with other people required in performing the job. 5. Job context-The physical and social contexts where the work is performed. 6. Other characteristics-The activities, conditions, and characteristics other than those previously described that are relevant to the job. Task Analysis Inventory Fleishman Job Analysis System Job Design Job design is the process of defining how work will be performed and the tasks that will be required in a given job. Job redesign refers to changing the tasks or the way work is performed in an existing job. The Approaches for Job Design :Mechanistic Approach The mechanistic job design approach 1. Job specialization: Is the job highly specialized in terms of purpose and / or activity? 2. Specialization of tools and procedures: Are the tools, procedures, materials, etc. , used on this job highly specialized in terms of purpose? 3. Task simplification: Are the tasks simple and uncomplicated? 4. Single activities: Does the job require the incumbent to do only one task at a time? Does it not require the incumbent to do multiple activities at one time or in very close succession? 5. Job simplification: Does the job require relatively little skill and training time? 6. Repetition: Does the job require performing the same activity or activities repeatedly? 7. Spare time: Is there very little spare time between activities on this job? 8. Automation: Are many of the activities of this job automated or assisted by automation?The motivational job design approach The motivational approach to job design has roots in organizational psychology and, in many ways , emerged as a reaction to mechanistic approached to job design. It focuses on the job characteristics that affect psychological meaning and motivational potential, and it views attitudinal variables (such as faction, intrinsic motivation, job involvement, and behavioral variables such as attendance and performance) as the most important outcomes of job design.)The motivational job design approach 1. Autonomy: Does the job allow freedom, independence, or discretion in work scheduling, sequence, methods, procedures, quality control, and other types of decisions? 2. Intrinsic job feedback: Do the work activities themselves provide direct, clear information about the effectiveness (in terms of quality) of job performance? 3. Extrinsic job feedback: Do other people in the organization (such as managers and coworkers) provide information about the effectiveness (in terms of quality and quantity) of job performance? 4. Social interaction: Does the job provide for positive social interaction (such as teamwork or coworker assistance)? 5. Task / goal clarity: Are the job duties, requirements, and goals clear and specific? 6. Task variety: Does the job have a variety of duties, task, and activities? 7. Task identity: Does the job require completion of a whole and identifiable piece of work? Does it give the incumbent a chance to do an entire piece of work from beginning to do? 8. Ability / skill-level requirements: Does the job require a high level of knowledge, skills, and abilities? 9. Ability / skill variety: Does the job require a variety of types of knowledge, skills, and abilities? 10. Task significance: Is the job significant and important compared with other jobs in the organization? 11. Growth / learning: Does the job allow opportunities for learning and growth in competence and proficiency?Chapter 4 Human Resource Planning and RecruitmentThe Human Resource Planning Process An overview of human resource planning is depicted in Figure 4.1. The process consists of forecasting, goal setting and strategic planning, and program implementation and evaluation. Chapter 6Training Training A planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees. The goal of training is for employees to master the knowledge, skill, and behaviors emphasized in training programs and to apply them to their day-to-day activities. High-leverage training Training practice that links training to strategic business goals, has top management support, relies on an instructional design model, and is benchmarked to programs in other organizations.Training today should more emphasis on: Providing educational opportunities for all employees. An ongoing process of performance improvement that is directly measurable rather than organizing one-time training events. The need to demonstrate to executives, managers, and trainees the benefits of training. Learning as a lifelong event in which senior management, trainer managers, and employees have ownership. Training being used to help attain strategic business objectives, which help companies gain a competitive advantage.Table 6.1 The Training Process1. Needs assessment Organizational analysis Person analysisTask analysis2.Ensuring employees readiness for trainingAttitudes and motivationBasic skills3.Creating a learning environmentIdentification of learning objectives and training outcomesMeaningful materialPracticeFeedbackObservation of othersAdministering and coordinating program4.Ensuring transfer of training Self-management strategies Peer and manager suppo

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