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HUMAN RESOURCES MANAGEMENT:GAINING A

COMPETITIVE ADVANTAGE

Instructor: LTT Xun

Content

Instructor: LTT Xun

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INTRODUCTION
What is MANAGEMENT?

Instructor: LTT Xun

INTRODUCTION
Approaches in managing personnel

Human Resources Management

Relationship Management

Scientific Management

Personnel Administration Management

Managers considers employees as business-partners or hired-

labors? Instructor: LTT Xun

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INTRODUCTION
What is HRM?

Competitiveness refers to a companys

ability to maintain and gain market share in
its industry.
It is related to company effectiveness

Human resource management refers to

the policies, practices, and systems that
influence employees behavior, attitudes,
and performance.
Many companies refer to HRM as involving
people practices

HRM Practices Company Performance

Instructor: LTT Xun

INTRODUCTION

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INTRODUCTION

Customers vs. Employees - Who need to be

satisfied first?

Instructor: LTT Xun

Companies With Effective HRM:

Employees and customers tend to be more satisfied.

The companies tend to:

 be more innovative
 have greater productivity
 develop a more favorable reputation in the community

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INTRODUCTION
Differences between HRM and personnel management
Opinions and philosophy about staffs
Companys priority
Relations between owner and staffs
Base of productivity and quality
Rights in issuing personnel policies
Business orientation
Relations between business strategy and HRM strategy

Instructor: LTT Xun

INTRODUCTION
Similarities between HRM and personnel management???

But, with:
Emergence of labour unions
More women-labours

Instructor: LTT Xun

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ROLES OF HRM
Responsibilities of HR Department
Employment and recruiting Interviewing, recruiting, testing, temporary labor coordination

Training & development Orientation, performance management skills training

productivity enhancement
Compensation Wage and salary administration, job descriptions, executive
compensation, incentive pay, job evaluation
Benefits Insurance, vacation leave administration, retirement plans,
profit sharing, stock plans
Employee services Employee assistance programs, relocation services,
outplacement services
Employee and community Attitude surveys, labor relations, publications, labor laws
relations compliance, discipline
Personnel records Information systems, records

Health & safety Safety inspection, drug testing, health, wellness

Strategic planning International human resources, forecasting, planning, mergers

and acquisitions
Instructor: LTT Xun

ROLES OF HRM
Roles of HR Department

Strategic Partner

Administrative Human Employee

Expert Resources Advocate

Change Agent

Instructor: LTT Xun

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ROLES OF HRM
Cooperation of HR with operating Managers

HR Unit Managers

Develops legal, effective Advise HR of job openings

interviewing techniques Decide whether to do own
Trains managers in conducting final interviewing
selection interviews Receive interview training
Conducts interviews and from HR unit
testing Do final interviewing and
Sends top three applicants to hiring where appropriate
managers for final review Review reference
Checks references information
Does final interviewing and Provide feedback to HR unit
hiring for certain job on hiring/rejection
classifications decisions

Instructor: LTT Xun

HRM FUNCTIONS

Instructor: LTT Xun

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HRM FUNCTIONS
4 main functions of HRM:

Staffing (hiring people)

Training and development (preparing people)

Motivation (stimulating people)

Maintenance (keeping people)

Instructor: LTT Xun

HRM FUNCTIONS
HRM practices:

Analysis and design of work

HR planning HR needs

Recruiting

Selection

Training and development

Compensation

Performance management

Employee relations

Instructor: LTT Xun

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HRM FUNCTIONS
Change of HRM functions

INCREASING INCREASING

INCREASING
DECREASING

Instructor: LTT Xun

HRM FUNCTIONS

Change of HRM functions

Technology
Self-service: online access to HR information
Outsourcing: practices provided by another
companies
HRM in gaining a competitive advantage
HR practices related to companies success in meeting
competitive challenges

How technology affects HRM practices?

Instructor: LTT Xun

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HRM FUNCTIONS
Questions used to determine if HR are playing a strategic role in
the business
1. What is HR doing to provide value-added 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 you 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 say at our company?
7. How are you 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
market position?
9. Whats the best change we can make to prepare for the future?
Instructor: LTT Xun

HRM GAINING A COMPETITIVE ADVANTAGE

Challenges facing businesses

The Challenge of
Sustainability

The Global
Challenge

The Technology
Challenge

Instructor: LTT Xun

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HRM GAINING A COMPETITIVE ADVANTAGE

Meeting competitive advantage through HRM practices
Managing the Human Resource Environment
Linking HRM practices to the companys business objectives
Ensuring that HRM practices comply with laws
Designing work motivating, satisfying the employees as well as
maximizing customer services, quality, and productivity
Acquiring and preparing human resources
Identifying human resource requirements
Training employees

Instructor: LTT Xun

HRM GAINING A COMPETITIVE ADVANTAGE

Meeting competitive advantage through HRM practices
Assessment and Development of human resources
Measuring employees performance
Preparing employees for future work roles and identifying their work
interests, goals, values and other career issues
Creating an employment relationship and work environment benefiting
both the company and the employee
Compensating Human Resource
Creating pay systems
Rewarding employee contributions
Providing employees with benefits

Instructor: LTT Xun

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ETHICS & HR
What is ethical behavior?
- What ought to be done
- Questions to be considered:
1. Does the behavior or result meet all applicable laws, regulations, and
government codes?
2. Does the behavior or result achieved meet all organizational standards
of ethical behavior?
3. Does the behavior or result achieved meet professional standards of
ethical behavior?

Instructor: LTT Xun

ETHICS & HR
Examples of Ethical Misconduct in HR Activities

Instructor: LTT Xun

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ETHICS & HR

Human resource managers must satisfy three basic standards

for their practices to be considered ethical:

HRM practices must result in the greatest good for the largest
number of people.

Employment practices must respect basic human rights of privacy,
due process, consent, and free speech.

Managers must treat employees equitably and fairly.

Instructor: LTT Xun

ESSENTIAL PERSPECTIVES

HR as core competency of the organization

HR body as strategic partner
HR functions as career field
HR practices follow a flow of employees from IN to OUT of the
organization

Attracting Using & developing Retaining people:

people: people:
Compensation &
Training & Lay off
HR Planning Benefits
development
Job analysis Health, Safety, & Termination
Performance Employee rights
Staffing Retirement
management
Employee
Orientation relations

IN OUT

2005 Southwestern College Publishing.

All rights reserved.
26

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DISCUSSION QUESTION

Imagine that a small manufacturing company decides to

invest in a material recourse planning (MRP) system. This
is a computerised information system that improves
efficiency by automating such work as planning needs for
resources, ordering materials and scheduling work on the
shop floor. The company hope that with the new MRP
system, it can grow by quickly and efficiently processing
small orders for a variety of products.

1/ Which of the human resource functions are

likely to be affected by this change?
2/ How can HRM help the organization carry
out this change successfully?
Instructor: LTT Xun

GROUP ASSIGNMENT

How to measure HRs contribution?

-Choose an industry
-Write about metrics which should be used in that
industry and your explanation

Instructor: LTT Xun

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FOR NEXT CLASS

Review lesson of Environment in Management

Each group select an interesting industry, and find information

about business environment of that selected industry.

Instructor: LTT Xun

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