Gaining a Competitive Advantage

1. Gaining a Competitive Advantage HRM Overview

2. HR Roles in building a competitive organization Management of strategic human resource Management of transformation and change Management of firm infrastructure Management of employee contribution

3. HRM roles • Strategic partner: • Aligning HRM strategies to business strategies is important to help the company execute its business strategy • Administrative expert: • Designing and delivering efficient and effective HRM systems, processes, and practices. Such as systems for selections, training, developing, appraising and rewarding employees.

4. HRM roles • Employee Advocate: • Entails managing the commitment and contributions of employees. No matter how skilled an employee is, if he is angry or alineated,he will not contribute his efforts to the firms’success,nor will he stay with the firm for long. • Change agents: • HRM must help in transforming organizations to meet the new competitive conditions. You need to change and develop a capacity for change

5. What skills do HRM Professionals Need? change agent Strategic partner Data-base Decision- making Negotiations Communications Overcoming resistance to change Legal compliance Contract Admin. HRM & HR info. systems Counseling Developing Teams Administrative expert Employee advocate

6. Competitive challenges • Increased Value Placed on Knowledge: • 75% of the value in any company is, intangible (intellectual capital) which refers to creativity, productivity, and service provided by employees. • Effective management of people is key to boosting the value of intellectual capital.

7. Competitive challenges • Skill Requirement: • The emphasize is on knowledge workers and service work, skills requirements have changed. The demand for cognitive skills, mathematical and verbal reasoning ability- and interpersonal skills related to being able to work in teams or to interact with customers in a service economy.

8. Competitive challenges • Changes in the Employment Relationship: • The psychological contract changed: From relational to transactional • Meaning : employees aren't expecting job security, they want employability-that is, they want their company to provide training and job experiences to help ensure that employees can find other employment opportunities. • (The challenge for HR is how to build a committed, productive workforce in turbulent economic conditions.

9. The global challenge • 1. Development of Global Markets: • Companies that believed that their people were the greatest asset and are the key to success was translated into HRM practices, such as rewarding employee performance, promotion from within, investing in employee development

10. The Global challenge • 2.Competitiveness in Global markets through HRM practices: • To succeed in the global market place you must understand the culture differences and invest in human resources

11. The global challenge • 3. Preparing Employees for International Assignments: • Foreign countries must be willing to train and develop local managers to win their foreign business. Boeing brings workers from India and Poland into the US. They return home with needed knowledge in aircraft design and manufacturing.

12. The challenge of Meeting Stakeholders’ Needs • Company effectiveness and competitiveness is determined by whether the company satisfies the needs of stakeholders. • Stockholders and a return on their investments • Customers and a high quality product or service • Employees who desire interesting work and a reasonable compensation for their services

13. Stakeholders needs are met through: • 2. Meeting Customer Needs for Quality through: • A. ISO certification • B. Six sigma: to create a total business focus on serving the customer-to deliver what customer wants and when they want it.

14. Major Dimensions of HRM practices Acquiring & Preparing HR Compensating HR Assessment & development Of HR Managing HR environment competitiveness

15. Managing the HR environment • Create a positive environment for employees by: • Linking practices to company objectives. • Ensuring that HR practices comply with state and local laws. • Designing work that motivates and satisfies the employees as well as maximizes customer services and productivity.

16. Acquiring & preparing HR • Customer needs determine the number and type of employees needed, Manager must be able to determine that as well as identifying current or potential employees who can successfully deliver products and services. • Identifying HR requirements-planning-recruiting and selecting • Training employees to have the skills needed to perform their jobs.

17. Assessment & development of HR • Create a work environment that supports employees’ work and non work activities. • Measuring employees’ performance. • Prepare employees for future work roles and identifying employees’ work interests, goals, values and other career issues.

18. Compensating HR • Creating a pay system • Rewarding employee contributions • Providing employees with benefits. ` The positive influence of new work designs, new technology can be damaged if employees are not satisfied with the level of pay and benefits or believe that benefits are unfairly distributed.