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Noe11e_ch_01_FINAL.pptxChapter 1
Human Resource Management: Gaining a Competitive Advantage
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Learning Objectives
LO1-1 Discuss the roles and activities of a company’s human resource management function.
LO1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability.
LO1-3 Discuss how human resource management affects a company’s balanced scorecard.
LO1-4 Discuss what companies should do to compete in the global marketplace.
LO1-5 Identify how social networking, artificial intelligence, and robotics is influencing human resource management.
LO1-6 Discuss human resource management practices that support high-performance work systems.
LO1-7 Provide a brief description of human resource management practices.
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Introduction
Human Resource Management
plays a role in a company’s survival, effectiveness, and competitiveness
refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance
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Competitiveness refers to a company’s ability to maintain and gain market share in its industry. Competitiveness is related to company effectiveness, which is determined by whether the company satisfies the needs of stakeholders (groups affected by business practices). Important stakeholders include stockholders who want a return on their investment; customers who want a high-quality product or service; and employees who desire interesting work and reasonable compensation for their services.
Human resource management (HRM) refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance.
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Figure 1.1 Human Resource Management Practices
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Figure 1.1 emphasizes that there are several important HRM practices. The strategy underlying these practices needs to be considered to maximize their influence on company performance. As the figure shows, HRM practices include analyzing and designing work, determining human resource needs (HR planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), rewarding employees (compensation), evaluating their performance (performance management), and creating a positive work environment (employee relations). HR is solely responsible for outplacement, labor law compliance, record keeping, testing, unemployment compensation, and some aspects of benefits administration. HR is most likely to collaborate with other company functions on employment interviewing, performance management and discipline, and efforts to improve quality and productivity. Large companies are more likely than small ones to employ HR specialists, with benefits specialists being the most prevalent. Other common specializations include recruitment, compensation, and training and development. Many different roles and responsibilities can be performed by the HR department depending on the size of the company, the characteristics of the workforce, the industry, and the value system of company management.
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What Responsibilities and Roles Do HR Departments Perform? 1 of 2
HRM is a means to contribute to
profitability
quality
other business goals
LO 1-1
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What Responsibilities and Roles Do HR Departments Perform? 2 of 2
High-Impact HR functions
more integrated with the business
more skilled at attracting and retaining employees
can adapt quickly
identify and promote talent from within
identify what motivates employees
continuously building talent and skills
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Table 1.1 Responsibilities of HR Departments
| Analysis and design of work |
| Recruitment and selection |
| Training and development |
| Performance management |
| Compensation and benefits |
| Employee relations/Labor relations |
| Personnel policies |
| Employee data and information systems |
| Legal compliance |
| Support for business strategy |
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Table 1.1 shows responsibilities of HR departments. How much should companies budget for HR and how many HR professionals should a company employ? One study estimates that HR budgets on average $2,936 per employee. High-impact HR teams have one staff person per 64 employees, spend more than the average HR budget per employee ($4,434 on average per employee), and employ a higher percentage of HR specialists than more compliance-driven and basic HR organizations.
High-impact HR functions are more integrated with the business, skilled at helping managers in attracting, building, engaging, and retaining talented employees. They can adapt quickly to business needs and workforce changes, identify and promote talent from within the company, and are continuously trying to identify what motivates employees to help them grown and develop. High-impact HR functions ensure that they are continuously building the talent and skills of HR professionals necessary to help the company meet new competitive challenges. The greater cost-per-employee of high-impact HR functions is offset by the greater savings resulting from reduced turnover and increased levels of employee engagement.
Figure 1.2 HR as a Business with Three Product Lines 1 of 3
1. Administrative Services and Transactions
Compensation, hiring, staffing
Emphasis: Resource efficiency and service quality
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Figure 1.2 HR as a Business with Three Product Lines 2 of 3
2. Business Partner Services
Developing effective HR systems and helping implement business plans, talent management.
Emphasis: Knowing the business and exercising influence – problem solving, designing effective systems to ensure needed competencies
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Figure 1.2 HR as a Business with Three Product Lines 3 of 3
3. Strategic Partner
Contributing to the business strategy based on considerations of human capital, business capabilities, readiness, and developing HR practices as strategic differentiators
Emphasis: Knowledge of HR and of the business, competition, the market, and business strategies
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Strategic Role of the HRM Function 1 of 12
HRM Role
Time spent on administrative tasks is decreasing, roles as a strategic business partner, change agent and employee advocate are increasing.
Shared service model
Includes centers of expertise or excellence, service centers, and business partners
Central place for administrative and transactional tasks
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Strategic Role of the HRM Function 2 of 12
Technology
Reducing HRM role in administrative tasks, maintaining records, and providing self-service to employees
Shift to self-service gives employees access to many HR issues
HR managers have more time to work on employee issues
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Strategic Role of the HRM Function 3 of 12
Outsourcing
Most commonly outsourced activities
Benefits administration (e.g., flexible spending accounts, health plan eligibility status)
Relocation
Payroll
Most common reason for outsourcing
Cost savings
Increased ability to recruit and manage talent
Improved HR service quality
Protection of the company from potential lawsuits by standardizing processes such as selection and recruitment
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Outsourcing refers to the practice of having another company (a vendor, third party, or consultant) provide services.
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Strategic Role of the HRM Function 4 of 12
Strategic Role
Lead efforts focused on talent management and performance management
Take the lead in helping companies attract, develop, and retain talent in order to create global workforces
Use and analyze data to make a business case for ideas and problem solutions
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Table 1.2 Questions to Ask: Is HRM Playing a Strategic Role in the Business?
| 1. What is HR doing to provide value-added services to internal clients? |
| 2. Do the actions of HR support and align with business priorities? |
| 3. How are you measuring the effectiveness of HR? |
| 4. How can we reinvest in employees? |
| 5. What HRM strategy will we use to get business from point A to B? |
| 6. From an HR perspective, what should we be doing to improve our marketplace position? |
| 7. What’s the best change we can make to prepare for the future? |
| 8. Do we react to business problems or anticipate them in advance? |
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Table 1.2 provides several questions that managers can use to determine if HRM is playing a strategic role in the business. If these questions have not been considered, it is highly unlikely that (1) the company is prepared to deal with competitive challenges or (2) human resources are being strategically used to help a company gain a competitive advantage. The bottom line for evaluating the relationship between HRM and the business strategy is to consider this question: “What is HR doing to ensure that the right people with the right skills are doing the right things in the jobs that are important for the execution of the business strategy?” HRM practices are directly related to companies’ success in meeting competitive challenges
Strategic Role of the HRM Function 5 of 12
Demonstrating the Strategic Value of HRM: HR Analytics and Evidenced-Based HR
HR can engage in evidence-based HR
Requires the use of HR or Workforce Analytics
Big data
Information merged from HR databases, corporate financial statements, employee surveys, and other data sources
Result in evidence-based HR decisions
Show that HR practices influence the organization’s bottom line, including profits and costs
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As part of its strategic role, one of the key contributions that HR can make is to engage in evidence-based HR. Evidence-based HR is demonstrating that HR practices have a positive influence on the company’s bottom line or key stakeholders. It requires using HR or workforce analytics that uses quantitative and scientific methods to analyze data from HR decisions, financial statements, employee surveys and other data-sources to show the value of HR practices and how they contribute to business strategy and goals. Big data refers to information merged from HR databases, corporate financial statements, employee surveys, and other data sources to make evidence-HR decisions and show that HR practices influence the organization’s bottom line, including profits and costs.
Strategic Role of the HRM Function 6 of 12
The HRM Profession: Positions and Jobs
Primary activities involve performing the HR generalist role
Fewer HR professionals are involved in the HR function at the executive level of the company, training and development, HR consulting, and administrative activities
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Table 1.3 Median Salaries for HRM Positions
| POSITION | SALARY |
| Top HR executive | $240,206 |
| Global HR manager | 121,095 |
| Management development manager | 117,114 |
| Health and safety manager | 101,872 |
| Employee benefits manager | 95,244 |
| HR manager | 95,267 |
| Mid-level labor relations specialist | 83,974 |
| Campus recruiter | 64,725 |
| Entry-level HRIS specialist | 54,233 |
| HR generalist | 51,180 |
| Entry-level compensation analyst | 56,267 |
| Entry-level employee training specialist | 48,286 |
SOURCE: Based on data from Salary Wizard, http://swz.salary.com, accessed February 23, 2017.
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Strategic Role of the HRM Function 7 of 12
Education and Experience
Four-year college or graduate HR degree
Senior HR role
Developing and supporting the company culture,
Employee recruitment, retention and engagement
Succession planning
Designing the company’s overall HR strategy
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Strategic Role of the HRM Function 8 of 12
Education and Experience continued
Junior HR role
Handle transactions related to paperwork, benefits and payroll administration
Answering employee questions
Data management
Professional certification
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Strategic Role of the HRM Function 9 of 12
Competencies and Behaviors
Most HRM professionals are generalists
Lack business acumen
Need nine competencies developed by SHRM
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Strategic Role of the HRM Function 10 of 12
Nine Competencies
HR Technical Expertise and Practice
Apply the principles of HRM to contribute to the success of the business
Business Acumen
Understand business functions and metrics within the organization and industry
Critical Evaluation
Interpret information to determine return on investment and organizational impact in making recommendations and business decisions
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Strategic Role of the HRM Function 11 of 12
Nine Competencies continued
Ethical Practice
Integrate core values, integrity, and accountability throughout all organizational and business practices
Global and Cultural Effectiveness
Manage HR both within and across boundaries
Communications
Effectively exchange and create a free flow of information with and among various stakeholders at all levels of the organization to produce meaningful outcomes
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Strategic Role of the HRM Function 12 of 12
Nine Competencies continued
Organizational Leadership and Navigation
Direct initiatives and processes within the organization and gain buy-in from stakeholders
Consultation
Provide guidance to stakeholders such as employees and leaders seeking expert advice on a variety of circumstances and situations
Relationship Management
Manage interactions with and between others with the specific goal of providing service and organizational success
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Figure 1.4 Competitive Challenges Influencing U.S. Companies
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Competitive Challenges Influencing Human Resource Management 1 of 25
Competing Through Sustainability
Sustainability relates to social responsibility
Also refers to the company’s ability to meet its needs without sacrificing the ability of future generations to meet their needs
Company must meet the needs of stakeholders
LO 1-2
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Sustainability refers to the company’s ability to meet its needs without sacrificing the ability of future generations to meet their needs.
Stakeholders include shareholders, the community, customers and all other parties that have an interest in seeing that the company succeeds.
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Competitive Challenges Influencing Human Resource Management 2 of 25
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
Put in place methods to determine if the company is meeting stakeholders’ needs
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Competitive Challenges Influencing Human Resource Management 3 of 25
Deal with the Workforce and Employment Implications of the Economy
Skill demands for jobs have changed
Remaining competitive in a global economy requires demanding work hours and changes in traditional employment patterns
The economy is not growing although unemployment rate is below 5%
Wage growth has been uneven
Labor productivity fell in 2009
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Competitive Challenges Influencing Human Resource Management 4 of 25
HR practices that enhance labor productivity
Improving the design of work and the use of technology
Upskilling employees through training
Managing performance and compensation to incentivize and motivate workers to work smarter and harder
Raising pay and focus on learning
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Competitive Challenges Influencing Human Resource Management 5 of 25
Labor Force and Employment Characteristics
Population is the most important factor in determining the size and composition of the labor force
Growth is slowing
Labor force is aging
Diversity is increasing
Service sector is growing
Education is important to meet job requirements
Shortage of qualified candidates
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Competitive Challenges Influencing Human Resource Management 6 of 25
Understand and Enhance the Value Placed on Intangible Assets and Human Capital
Three types of assets
Financial assets (cash and securities)
Physical assets (property, plant, equipment)
Intangible assets
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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.
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Table 1.6 Examples of Intangible Assets 1 of 2
Human capital
Tacit knowledge
Education
Work-related know-how
Work-related competence
Customer capital
Customer relationships
Brands
Customer loyalty
Distribution channels
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Table 1.6 Examples of Intangible Assets 2 of 2
Social capital
Corporate culture
Management philosophy
Management practices
Informal networking systems
Coaching/mentoring relationships
Intellectual capital
Patents
Copyrights
Trade secrets
Intellectual property
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Competitive Challenges Influencing Human Resource Management 7 of 25
Understand and Enhance the Value Placed on Intangible Assets and Human Capital continued
Knowledge workers
Contribute specialized knowledge
Share knowledge and collaborate on solutions
In demand because companies need their skills and jobs requiring them are growing
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Competitive Challenges Influencing Human Resource Management 8 of 25
Emphasize Empowerment and Continuous Learning
Give employees responsibility and authority
Hold them accountable
Employees share in the rewards and losses
Learning organization
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A learning organization embraces a culture of lifelong learning, enabling all employees to continually acquire and share knowledge.
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Competitive Challenges Influencing Human Resource Management 9 of 25
Adapt to Change
Inevitable
Employees expected to take more responsibility for their own careers
Challenge is how to build a committed, productive workforce
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Change refers to the adoption of a new idea or behavior by a company. Technological advances, changes in the workforce or government regulations, globalization, and new competitors are among the many factors that require companies to change.
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Competitive Challenges Influencing Human Resource Management 10 of 25
Maximize Employee Engagement
Passionate about his or her work
Committed to the company and its mission
Works hard to contribute
Measured with attitude or opinion surveys
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Employee engagement refers to the degree to which employees are fully involved in their work and the strength of their commitment to their job and the company.
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Table 1.7 Common Themes of Employee Engagement
Pride in employer
Satisfaction with employer
Satisfaction with the job
Opportunity to perform challenging work
Recognition and positive feedback
Personal support from manager
Effort above and beyond the minimum
Understand link between one’s job and company’s mission
Prospects for future growth with the company
Intention to stay with the company
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Table 1.7. Common Themes of Employee Engagement: Employees’ engagement is influenced by how managers treat employees as well as human resource practices such as recruiting, selection, training and development, performance management, work design, and compensation. Employees who are engaged in their work and committed to the company they work for give companies competitive advantage including higher productivity, better customer service, and lower turnover Companies measure employees’ engagement levels with attitude or opinion surveys. Although the types of questions asked on these surveys vary from company to company, research suggests the questions generally measure these common themes.
Competitive Challenges Influencing Human Resource Management 11 of 25
Manage Talent
Acquiring and assessing employees
Learning and development
Performance management
Compensation
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Talent management refers to the systematic planned strategic effort by a company to use bundles of HRM practices—including acquiring and assessing employees, learning and development, performance management, and compensation—to attract, retain, develop, and motivate highly skilled employees and managers.
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Competitive Challenges Influencing Human Resource Management 12 of 25
Consider Nontraditional Employment and the Gig Economy
Between 20-35% of the total U.S. workforce
Workers set their own schedule and do not work for a company
Offers flexibility
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Nontraditional employment includes the use of independent contractors, freelancers, on-call workers, temporary workers, and contract company workers. Companies that rely primarily on nontraditional employment to meet service and product demands are competing in the gig economy.
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Competitive Challenges Influencing Human Resource Management 13 of 25
Provide Flexibility to Help Employees Meet Work and Life Demands
46% of employees work more than 45 hours per week
Only half of employees in the U.S. believe they have the flexibility they need to successfully manage their work and personal or family lives
Solution: flexible work schedules, work-at-home arrangements, protecting employees’ free time, and more productively using employees’ work time
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Competitive Challenges Influencing Human Resource Management 14 of 25
Meet the Needs of Stakeholders, Shareholders, Customers, Employees, and Community
Demonstrate performance to stakeholders: the balanced scorecard
Being customer-focused
Improving quality
Emphasizing teamwork
Reducing new product and service development times
Managing for the long term
LO 1-3
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The balanced scorecard gives managers an indication of the performance of a company based on the degree to which stakeholder needs are satisfied; it depicts the company from the perspective of internal and external customers, employees, and shareholders.
Table 1.8 The Balanced Scorecard
| PERSPECTIVE | QUESTIONS ANSWERED | EXAMPLES OF CRITICAL BUSINESS INDICATORS | CRITICAL HR INDICATORS |
| Customer | How do customers see us? | Time, quality, performance, service, cost | Employee satisfaction with HR department services; Employee perceptions of the company as an employer |
| Internal | What must we excel at? | Processes that influence customer satisfaction, availability of information on service, and/or manufacturing processes | Training costs per employee, turnover rates, time to fill open positions |
| Innovation and learning | Can we continue to improve and create value? | Improve operating efficiency, launch new products, continuous improvement, empowering of workforce, employee satisfaction | Employee/skills competency levels, engagement survey results, change management capability |
| Financial | How do we look to shareholders? | Profitability, growth, shareholder value | Compensation and benefits per employee, turnover costs, profit per employee, revenue per employee |
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Competitive Challenges Influencing Human Resource Management 15 of 25
Demonstrate Social Responsibility
Helps boost a company’s image with customers, gain access to new markets, and help attract and retain talented employees.
Companies try to meet shareholder and general public demands that they be more socially, ethically and environmentally responsible.
Helping to protect the planet can also save money.
Sustainability is an important part of many companies’ business strategy.
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Competitive Challenges Influencing Human Resource Management 16 of 25
Total Quality Management (TQM) 5 Core Values
Methods and processes are designed to meet internal and external customers’ needs.
Every employee receives training in quality.
Promote cooperation with vendors, suppliers and customers.
Managers measure progress with feedback based on data.
Quality is designed into a product or service so that errors are prevented rather than being detected and corrected.
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Competitive Challenges Influencing Human Resource Management 17 of 25
Malcolm Baldrige National Quality Award
ISO (International Organization for Standardization) 9000 Standards
Six Sigma
Lean Thinking & Process Improvement
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The emphasis on quality is seen in the following: Malcolm Baldrige National Quality promotes quality awareness, to recognize quality achievements, and to publicize successful quality strategies. The categories of examination include: leadership, measurement, analysis and knowledge, strategic planning, workforce, operations, customer focus and design improvement. ISO 9000:2000 quality standards adopted worldwide. Six Sigma process system of measuring, analyzing, improving, and controlling processes once they meet quality standards. Lean thinking is a way to do more with less effort, time, equipment, and space, but still provide customers with what they need and want.
Competitive Challenges Influencing Human Resource Management 18 of 25
Recognize and capitalize on the demographics and diversity of the workforce
Internal labor force
External labor market
Average age of workforce will increase
Increased workforce diversity
Immigration will affect size and diversity
Generational difference with five generations
Gender and racial composition of the workforce
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Generational differences- Members of each generation may have misperceptions of each other causing tensions and misunderstanding in the workplace
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Figure 1.5 Comparison of the Age Distribution of the 2014 and 2024 Labor Forces
Jump to long description in appendix
SOURCE: Bureau of Labor Statistics, “Employment Projections, 2014–2024,” News Release, www.bls.gov, accessed February 9, 2017.
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Table 1.11 Generations in the Workforce
| YEAR BORN | GENERATION | AGES |
| 1925–45 | Traditionalists Silent Generation | >72 |
| 1946–64 | Baby Boomers | 53-72 |
| 1965–80 | Generation X | 37-52 |
| 1981–95 | Millennials Generation Y Echo Boomers | 22-36 |
| 1996 | Generation Z | <21 |
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Figure 1.6 The U.S. Workforce, 2024
SOURCE: Bureau of Labor Statistics, “Employment Projections, 2014–2024,” News Release, www.bls.gov, accessed February 9, 2017.
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Competitive Challenges Influencing Human Resource Management 19 of 25
A Workforce of Mixed Gender, Race and Nationality
Diversity of workforce increasing
Immigration is contributing
The percentage of highly skilled immigrants now exceeds the percentage of low-skilled immigrants
Legal vs. illegal immigration
Managing a diverse workforce
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Table 1.12 How Managing Cultural Diversity Can Provide a Competitive Advantage 1 of 2
| 1. Cost argument | As organizations become more diverse, the cost of a poor job in integrating workers will increase. Those who handle this well will thus create cost advantages over those who don’t. |
| 2. Employee attraction and retention argument | Companies develop reputations on favorability as prospective employers for women and ethnic minorities. Those with the best reputations for managing diversity will win the competition for talent. As the labor pool shrinks and changes composition, this edge will become increasingly important. |
| 3. Marketing argument | The insight and cultural sensitivity that diverse employees bring to the marketing effort should help the company enter new markets and develop products and services for diverse populations. |
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Table 1.12 How Managing Cultural Diversity Can Provide a Competitive Advantage 2 of 2
| 4. Creativity argument | Diversity of perspectives and less emphasis on conformity to norms of the past improves the level of creativity. |
| 5. Problem-solving argument | Heterogeneity in decisions and problem-solving groups potentially produces better decisions through a wider range of perspectives and more thorough critical analysis of issues. |
| 6. System flexibility argument | Greater flexibility to react to changes in customer preferences and tastes (i.e., reactions should be faster and cost less). |
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Competitive Challenges Influencing Human Resource Management 20 of 25
Legal Issues
Employment laws and regulations
Eliminating discrimination and harassment
Health care coverage
Immigration
Data security practices and protecting intellectual property
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Figure 1.7 Principles of Ethical Companies
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Competitive Challenges Influencing Human Resource Management 21 of 25
Ethical Issues
Sarbanes-Oxley Act of 2002
Sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance
Imposes criminal penalties for corporate governing and accounting lapses including retaliation against whistle-blowers reporting violations of Security and Exchange Commission rules.
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Due to Sarbanes-Oxley and new Security and Exchange Commission regulations that impose stricter standards for disclosing executive pay, corporate boards are paying more attention to executive pay as well as issues like leadership development and succession planning.
Competitive Challenges Influencing Human Resource Management 22 of 25
Ethical Issues continued
Human resource managers must satisfy three basic standards for their practices to be considered ethical
HRM practices must result in the greatest good for the largest number of people
Employment practices must respect basic human rights of privacy, due process, consent, and free speech
Managers must treat employees and customers equitably and fairly
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Competitive Challenges Influencing Human Resource Management 23 of 25
Competing Through Globalization
U.S. businesses must
Develop global markets
Use their practices to improve global competitiveness
Better prepare employees for global assignments
LO 1-4
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Competitive Challenges Influencing Human Resource Management 24 of 25
Competing Through Globalization continued
Entering International Markets
Exporting products overseas
Building manufacturing facilities or service centers in other countries
Entering into alliances with foreign companies
Engaging in e-commerce
Offshoring and Reshoring
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Competitive Challenges Influencing Human Resource Management 25 of 25
Competing Through Technology
Consider applications of social networking, artificial intelligence, and robotics
Use HRIS, Mobile devices, cloud computing, and HR dashboards
Consider high-performance work systems and virtual teams
LO 1-5, 1-6
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Social networking refers to websites such as Facebook, Twitter, and LinkedIn, and wikis and blogs that facilitate interactions between people usually around shared interests.
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Figure 1.9 Major Dimensions of HRM Practices Contributing to Company Competitiveness
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Meeting Competitive Challenges through HRM Practices
Three challenges
Global
Sustainability
Technology
LO 1-7
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Figure 1.8 Examples of How HRM Practices Can Help Companies Meet Competitive Challenges
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Appendix of Image Long Descriptions
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Appendix 1 Figure 1.1 Human Resource Management Practices
A graphic denotes Strategic HRM Practices of analysis and design of work, HR planning, recruiting, selection, training and development, compensation, performance management and employee relations that all impact company performance.
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Appendix 2 Figure 1.4 Competitive Challenges Influencing U.S. Companies
Competing through sustainability
Deal with the workforce and employment implications of the economy
Understand and enhance the value of intangible assets and human capital
Meet the needs of stakeholders: shareholders, customers, employees, and the community
Emphasize customer service and quality
Recognize and capitalize on the demographics and diversity of the workforce
Deal with legal and ethical issues
Competing through globalization
Entering international markets
Offshoring and reshoring
Competing through technology
Consider social networking
Use HRIS, mobile devices, cloud computing, and HR dashboards
Consider high-performance work systems and virtual teams
All three challenges affect U.S. business competitiveness.
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Appendix 3 Figure 1.5 Comparison of the Age Distribution of the 2014 and 2024 Labor Forces
The first chart is labeled 2014 and shows 64% of the labor force is 25-54 years old; 22% is 55 years and older; and 14% is 16 to 24 years old.
The second chart is labeled 2024 and shows 64% of the workforce is still 25 to 54 years old; but 25% is 55 years and older; and 11% is 16 to 24 years old.
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Appendix 4 Figure 1.7 Principles of Ethical Companies
Emphasize mutual benefits in customer, vendor, client, and community relationships
Employees take responsibility for company actions
A sense of purpose or vision valued and used by employees in their work
Emphasize fairness in treatment of employees, customers, vendors, and clients
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Appendix 5 Figure 1.8 Examples of How HRM Practices Can Help Companies Meet Competitive Challenges
• HRM strategy is matched to business strategy.
• Knowledge is shared.
• Work is performed by teams.
• Pay systems reward skills and accomplishments.
• Selection system is job-related and legal.
• Flexibility in where and when work is performed.
• Employee engagement is monitored.
• Continuous learning environment is created.
• Discipline system is progressive.
• Customer satisfaction and quality are evaluated in the performance management system.
• Skills and values of a diverse workforce are valued and used.
• Technology is used to reduce the time for administrative tasks and to improve HR efficiency and effectiveness.
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