HUMAN RESOURCE MANAGAMENT
MODULE 1B
Human Resource
Management: Gaining A
Competitive Advantage
Reference:
Noe, Raymond A., [Link] (2017). Human Resource Management Gaining a Competitive
Advantage, 10th Edition. USA: McGraw-Hill Education
Jeffrey M. Mayor, LPT, CLDP®
HUMAN RESOURCE MANAGAMENT
MODULE CONTENT
Strategic Role of the HRM Function
HR as a Business with Three Product Lines
Demonstrating The Strategic Value of HR
LEARNING OBJECTIVES
1. Discuss the roles and activities of a company’s human
resource management function.
2. Discuss the implications of the economy, the makeup of the
labor force, and ethics for company sustainability.
3. Explain how competitive challenges influencing Human
Resource Management
Jeffrey M. Mayor, LPT, CLDP®
HUMAN RESOURCE MANAGAMENT
Strategic Role of the HRM Function
Human resource management (HRM) refers to the policies, practices, and systems
that influence employees’ behavior, attitudes, and performance. Many
companies refer to HRM as involving “people practices.
Responsible for identifying the need for
change within the organization.
Ex. PLDT/ Globe
The amount of time that the HRM function devotes to administrative tasks is
decreasing, and its roles as a ✔strategic business partner, ✔change agent, and
✔employee advocate are increasing. Representing the interests of employees within the management team and ensuring
that there are equitable procedures governing the employment relationship.
The role of HRM in administration is decreasing as technology is used for many
administrative purposes, such as managing employee records (HRIS) and allowing
employees to get information about and enroll in training, benefits, and other
programs.
The availability of the Internet has decreased the HRM role in maintaining records
and providing self-service to employees. Self-service refers to giving employees
online access to, or apps which provide, information about HR issues.
Outsourcing refers to the practice of having another company (a vendor, third
party or consultant) provide services.
Jeffrey M. Mayor, LPT, CLDP®
HUMAN RESOURCE MANAGAMENT
Effectiveness—a function of getting the job done whenever and however it must
be done. It answers the question, “Did we do the right things?”
Efficiency—a function of how many organizational resources we used in getting
the job done. It answers the question, “Did we do things right?”
HR as a Business with Three Product Lines
Outsourcing refers to the practice of
having another company (a vendor,
third party or consultant) provide
services.
DEMONSTRATING THE STRATEGIC VALUE OF HR
Evidence-based HR refers to the demonstration that human resources practices
have a positive influence on the company’s bottom or key stakeholders
(employees, customers, community, shareholders).
HR or workforce analytics refers to the practice of using quantitative methods and
scientific methods to analyze big data.
Big data refers to information merged from human resource databases, corporate
financial statements, employee surveys, and other data sources to make
evidence-based human resource decisions and show that HR practices influence
the organization’s bottom line, including profits and costs.
Jeffrey M. Mayor, LPT, CLDP®
HUMAN RESOURCE MANAGAMENT
THE HRM PROFESSION: POSITIONS AND JOBS
Salaries for HR professionals vary according to position, level of experience, train-
ing, location, and firm size.
Competitive Challenges Influencing Human Resource
Management
Three competitive challenges that companies now face will increase the
importance of human resource management practices: ✔the challenge of
sustainability, ✔the global challenge, and ✔the technology challenge.
These competitive challenges are directly linked to the HR challenges that
companies are facing including developing, attracting, and retaining talented
employees, finding employees with the necessary skills, and breaking down
cultural barriers to create a global company.
Jeffrey M. Mayor, LPT, CLDP®
HUMAN RESOURCE MANAGAMENT
THE SUSTAINABILITY CHALLENGE
Sustainability includes the ability to deal with economic and social changes,
practice environmental responsibility, engage in responsible and ethical business
practices, provide high-quality products and services, and put in place methods
to determine if the company is meeting stakeholders’ needs; that is, HR systems
that create the skills, motivation, values, and culture that help the company
achieve its triple bottom line- ✔economic, ✔social, and ✔environmental benefits
and insure the long-term benefits for the organizations stakeholders.
Intangible assets have been shown to be responsible for a company’s competitive
advantage. Intangible assets include ✔human capital, ✔customer capital, social
capital, and ✔intellectual capital. Intangible assets are equally or even more
valuable than financial and physical assets but they are difficult to duplicate or
imitate.52
By one estimate, up to 75% of the source of value in a company is in intangible
assets. Intangible assets have been shown to be responsible for a company’s
competitive advantage.
Human resource management practices such as training, selection, performance
management, and compensation have a direct influence on human and social
capital through influencing ✔customer service, ✔work-related know-how and
✔competence, and ✔work relationships.
Emphasis on Empowerment and Continuous Learning
To completely benefit from employees’ knowledge requires a management style
that focuses on developing and empowering employees. Empowering means
giving employees responsibility and authority to make decisions regarding all
aspects of product development or customer service. Employees are then held
accountable for products and services; in return, they share the rewards and losses
of the results.
A learning organization embraces a culture of lifelong learning, enabling all
employees to continually acquire and share knowledge. Improvements in product
or service quality do not stop when formal training is completed.
Talent Management is a systematic planned strategic effort by a company to
attract, retain, develop, and motivate highly skilled employees and managers.
Jeffrey M. Mayor, LPT, CLDP®
HUMAN RESOURCE MANAGAMENT
INDIVIDUAL ACTIVITY
Jeffrey M. Mayor, LPT, CLDP®