Transcript Human Resource Management and Competitive Advantage

Chapter 1
Human Resource Management
and Competitive Advantage
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1-1 Human Resource Management
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Human resource management: Consists of practices
that help the organization deal effectively with its
people during the various phases of the employment
cycle.
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Three phases of the employment cycle:
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Pre-selection – Planning practices.
Selection – Recruiting applicants and selecting the
most qualified.
Post-selection – Practices designed to maximize the
performance and satisfaction levels of employees.
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
1-1d HRM Practices Influenced by
External Factors
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Legal and environmental issues:
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Federal, state, and local laws are designed to
guarantee employees’ rights to fair and safe treatment.
Social, economic, and technological events also
strongly influence HRM practices.
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Workplace justice laws: Addresses the issue of
employee rights.
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Union influences: Regulate many HRM practices
such as discipline, promotion, grievance procedures,
and overtime allocations.
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
1-1d HRM Practices Influenced by
External Factors (cont.)
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Safety and health concerns: Institution of accident
prevention programs, wellness programs, and
employee assistance programs to ensure the health
and mental well-being of employees.
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International influences: Development of globally
oriented managers who understand foreign
languages and cultures, as well as the dynamics of
foreign marketplaces.
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
1-2 Who Is Responsible for Developing
and Implementing HRM Practices?
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Human resource professionals
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Establish HRM procedures and methods.
Monitor and evaluate HR practices.
Advise and assist managers on HRM-related matters.
Line managers
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Direct employees’ day-to-day tasks.
Implement HRM practices.
Provide HR professionals with needed inputs for
developing effective practices.
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
1-3 Gaining a Competitive Advantage &
1-3a Competitive Advantage Defined
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Firms gain competitive advantage by effectively
managing their human resources.
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Competitive advantage is a status achieved by a
company when gaining a superior marketplace
position relative to its competition.
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This is accomplished through cost leadership and
product differentiation.
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
1-4a Evidence Linking HRM Practices to
Competitive Advantage
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Jeffrey Pfeffer identified 16 HRM practices:
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Employment security
Selectivity in recruiting
High wages
Incentive pay
Employee ownership
Information sharing
Participation and empowerment
Teams and job redesign
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
1-4a Evidence Linking HRM Practices to
Competitive Advantage (cont.)
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Jeffrey Pfeffer identified 16 HRM practices (cont.):
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Training and skill development
Cross-utilization and cross-training
Symbolic egalitarianism
Wage compression
Promotion from within
Long-term perspective
Measurement of practices
Overarching philosophy
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
Figure 1-4 A Model Linking HRM
Practices to Competitive Advantage
© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.