The Challenge of Human Resources
Management
Chapter
1
This chapter lays the foundation for the course by explaining why studying HRM is
important, describing the real-world challenges organizations face today, and focusing on the
need to develop a skilled and flexible workforce in order to compete in the 21st century. In
addition, this chapter provides another important context for understanding HRM by
discussing the impact of demographics and the concerns that employees bring to their
workplaces. Finally, this introductory chapter provides a basic description of the HR
managers’ responsibilities, the skill sets that contribute to their success, and the necessity of
all managerial and supervisory employees to understand how to fully utilize the assistance
and services offered by HR.
Chapter Outline
WHY STUDY HUMAN RESOURCES MANAGEMENT?
Human Capital and HRM
COMPETITIVE CHALLENGES AND HUMAN RESOURCES MANAGEMENT
Challenge 1: Responding Strategically to Changes in the Marketplace
Challenge 5: Containing Costs While Retaining Top Talent and Maximizing
Productivity
Managing Benefits
Downsizing
Furloughing
Outsourcing
Offshoring
Employee Leasing
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Productivity Enhancements
Challenge 6: Responding to the Demographic and Diversity Challenges of the
Workforce
Balancing Work and Family
THE PARTNERSHIP OF LINE MANAGERS AND HR DEPARTMENTS
Responsibilities of the Human Resources Manager
1. Strategic Advice and Counsel
Generating Interest
A good way to kick off this course is with this simple statement that is probably true at least
80 percent of the time: “The way management treats the employees is the way employees
will treat the customers.”
In addition to students learning more about companies they are already familiar with, they
will also be exposed to new companies. The website brings real world into the classroom via
photographs and video clips. The annual ranking shows how companies meet their
employees’ needs through various HR programs by providing:
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Many other areas can be discussed as they relate to this introductory chapter: the %
minorities, % women, and voluntary turnover statistics.
Finally, prove the rest of the statement that “the way management treats the employees is the
The HRM Cycle can play out at least two
ways:
• If management treats employees well,
the odds increase that employees will
treat the customers well. Happy
customers typically become repeat
Dealing with Trouble Spots
Many students who take this course have their perspectives dramatically broadened regarding
the important role HR plays in an organization’s success. The Baldrige National Quality
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Involving Students