Human Resource Management:

Gaining a Competitive Advantage

Chapter 1
Human Resource Management:
Gaining a Competitive
Advantage
McGraw-Hill/Irwin

Learning Objectives

Discuss roles and activities of a companys HRM function

Discuss implications of the economy, makeup of the labor

force, and ethics for company sustainability

Discuss how HRM affects a companys balanced scorecard

Discuss what companies should do to compete in the

global marketplace

Identify the characteristics of the workforce and how they

influence HRM

Discuss HRM practices that support high-performance work

systems

Provide a brief description of HRM practices

1-2

Introduction
Competitiveness a companys
ability to maintain and gain market
share
Human resource management
the policies, practices, and systems
that influence employees behavior,
attitudes, and performance

1-3
.

Human Resource Management Practices

1-4

Responsibilities of HR Departments
1.
2.
3.
4.
5.
6.
7.
8.
9.

Employment and Recruiting

Training and Development
Compensation
Benefits
Employee Services
Employee and Community Relations
Personnel Records
Health and Safety
Strategic Planning

1-5

HR as a Business with 3 Product Lines

Business
Partner
Services
Administrative
Services and
Transactions

Strategic Partner

Human
Resources

1-6

6 Competencies for the HR Profession

1-7

How is the HRM Function Changing?

Time spent on administrative tasks is decreasing.
HR roles as a strategic business partner, change
agent, and employee advocate are increasing.
HR managers are challenged to shift focus from
current operations to future strategies and prepare
non-HR managers to develop and implement HR
practices.
This shift presents two important challenges:
Self-service giving employees online access to
information about HR issues
Outsourcing the practice of having another
company provide services to save money and spend

more time on strategic business issues.

1-8

Questions Used to Determine If Human Resources

Are Playing a Strategic Role in the Business
1. What is HR doing to provide value-added services to internal clients?
2. What can the HR department add to the bottom line?
3. How are you measuring the effectiveness of HR?
4. How can we reinvest in employees?
5. What HR strategy will we use to get the business from point A to point B?
6. What makes an employee want to stay at our company?
7. How are we going to invest in HR so that we have a better HR

department than our competitors?

8. From an HR perspective, what should we be doing to improve our
marketplace position?
9. Whats the best change we can make to prepare for the future?

1-9

How is the HRM Function Changing?

As part of its strategic role, one of the key
contributions that HR can make is to
engage in evidence-based HR.
Evidence-based HR demonstrating
that human resource practices have a
positive influence on the companys
bottom line or key stakeholders.

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Summary
HR has three product lines: administrative services, business
partner services, and strategic services.
To successfully manage HR, individuals need personal credibility,
business and technology knowledge, understanding of business
strategy, and ability to deliver HR services.
HR management practices should be evidence-based.
HR practices are important for helping companies deal with
sustainability, globalization, and technology challenges.
HR managers must address global and technology challenges.

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