Human Resources Management (HRM)
○ The process of managing human talent to achieve an organization’s objectives
Why Study Human Resources Management?
○ Establishing the strategic direction your firm should take
○ attracting top-notch people to come to work for you and your firm
○ determining the right people to hire so your team and company are a success,
○ helping and coaching people so they become top performers are as relevant to
line managers as they are to managers in the HR department.
○ Great business plans, products, and services can easily be copied by your
competitors. Great personnel cannot.
Words to describe how important people are to organizations:
• Human Resources
• Human Capital
• Intellectual Assets
• Talent Management
Competitive Issues and Human Resources Management
Top issues include:
○ Responding Strategically to Changes in the Local and Global Marketplace
○ Setting and Achieving Corporate Social Responsibility and Sustainability Goals
○ Advancing HRM with Technology
○ Containing Costs While Retaining Top Talent and Maximizing Productivity
○ Responding to the Demographic and Diversity Challenges of the Workforce
○ Adapting to Educational and Cultural Shifts Affecting the Workforce
issue one: Responding Strategically to Changes in the Local and Global
Marketplace
HR Managers and Business Strategy
• From administrative tasks to strategic partners
• Human resources managers need an intimate understanding of their firms’
competitive business, operations and strategies.
Human resources managers need to understand:
Six Sigma
• A set of principles and practices whose core ideas include understanding
customer needs, doing things right the first time, and striving for continuous
improvement
Total Quality Management (TQM)
• A process used to translate customer needs into a set of optimal tasks that
are performed in concert with one another
Reengineering
• The fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in cost, quality, service, and speed
Downsizing
• Planned elimination of jobs (“head count”)
• Layoffs
Outsourcing
• Contracting outside the organization to have work done that formerly was
done by internal employees
Offshoring (Global Sourcing)
• The business practice of sending jobs to other countries
Change Management
➔systematic way of bringing about and managing both organizational changes and
changes on the individual level
➔To successfully engineer change, HR managers must:
1. Link the change to the business strategy
