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Lecture Human resource management: Gaining a competitive advantage (9/e) – Chapter 16

Chapter 16 - Strategically managing the HRM function. After reading this chapter, you should be able to: Describe the roles that HRM plays in firms today and the categories of HRM activities, discuss how the HRM function can define its mission and market, explain the approaches to evaluating the effectiveness of HRM practices, describe the new structures for the HRM function. | Chapter 16 Strategically Managing the HRM Function Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Introduction HRM practices can help companies gain a competitive advantage. Virtually every HR function in top companies is going through a transformation process to play a new strategic role while fulfilling its other roles. For HR to become truly strategic in its orientation, it must view itself as a separate business entity. Customer orientation is one of the most important changes in HR's attempt to become strategic. Products of HR must be identified. Technologies through which HR meets customer needs vary depending on the need being satisfied. 16- Categories of HRM Activities Transformational Knowledge Management Cultural Change Strategic Redirection & Renewal Management Development Traditional Recruitment and Selection Training Performance Management Compensation Employee Relations Transactional Benefits Administration Record Keeping Employee Services Figure 16.1 16- Customer-Oriented Perspective Figure 16.2 16- Basic Process for HR Strategy Identify strategic business issues Figure 16.4 16- Types of Cost–Benefit Analyses HR Accounting capitalization of salary net present value of expected wage payments returns on human assets and human investments Utility Analysis turnover costs absenteeism and sick leave costs gains from selection and training programs impact of positive employee attitudes Restructuring to Improve HRM 16- Outsourcing Outsourcing - Contracting with an outside vendor to provide a product or service to the firm. Outsourcing partner can provide the service more cheaply, efficiently and effectively. Firms primarily outsource transactional activities and services of HR such as payroll, pension and benefits administration. 16- Reengineering is a complete review of critical work processes and redesign to make them more . | Chapter 16 Strategically Managing the HRM Function Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Introduction HRM practices can help companies gain a competitive advantage. Virtually every HR function in top companies is going through a transformation process to play a new strategic role while fulfilling its other roles. For HR to become truly strategic in its orientation, it must view itself as a separate business entity. Customer orientation is one of the most important changes in HR's attempt to become strategic. Products of HR must be identified. Technologies through which HR meets customer needs vary depending on the need being satisfied. 16- Categories of HRM Activities Transformational Knowledge Management Cultural Change Strategic Redirection & Renewal Management Development Traditional Recruitment and Selection Training Performance Management Compensation Employee .