CHAPTER OVERVIEW - CHAPTER OVERVIEW This first chapter provides a ...

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Chapter 1 Meeting Present and Emerging Strategic Human Resource Challenges

CHAPTER OVERVIEW

This first chapter provides a broad overview of the strategic human resource challenges organizations face, and provides a framework to understand the role of human resource strategies, activities, and programs to achieve sustained competitive advantage. To support this broad perspective, some of the most important external and internal challenges vis-à-vis HR strategies are discussed in three categories: environmental challenges, organizational challenges, and individual challenges. The chapter explains the planning and implementation of strategic HR policies, as well as the role of line managers and the HR department in the effective use of human resources. Also explored here is how managers, in partnership with human resource professionals, adopt and implement HR strategies through specific strategies and programs. HR professionals are often responsible for designing these programs in order to meet business goals and employee needs. Although the line managers provide the necessary input during the program design phase, they are primarily responsible for carrying out or implementing such programs.This chapter provides a strong overview of how firms can use HR strategies and initiatives to deal with external and internal challenges, which are then explored in detail in later chapters.

LEARNING OBJECTIVES

After reading this chapter, students should be able to deal more effectively with the

following challenges:

1.1 Describe the major challenges affecting HR.

1.2 Outline key steps in planning and implementing strategic HR policies.

1.3 Understand the various HR strategies that 1.4 companies use to increase firm performance.

1.5 Outline HR best practices.

1.6 Explain how to establish a close partnership between the HR department and managers.

ANNOTATED OUTLINE

LEARNING OBJECTIVE 1.1

Describe the major challenges affecting HR

I. Human Resource Management: The Challenge

Human resource challenges that face today’s managers may be categorized

according to their primary focus: the environment, the organization, or the

individual. Firms that deal with these challenges effectively are likely to outperform those that do not. Figure 1.1

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• Environmental Challenges

Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. They include rapid change, the web economy, workforce diversity, globalization, legislation, evolving work and family roles, skill shortages and the rise of the service sector, and natural disasters and terrorism,

• Organizational Challenges

Organizational challenges refer to concerns that are internal to the firm.Effective managers must be proactive and deal with organizational issues before they become too big.

C. Competitive Position: Cost, Quality, or Distinctive Capabilities

Human resources represent the single most important cost in many businesses.A number of HR policies affect the organization’s competitive position. These issues include: decentralization, downsizing, organizational restructuring, self- managed work teams, organizational culture, technology, internal security, data security, outsourcing, and product integrity.

• Individual Challenges

Human resource issues at the individual level address decisions most pertinent to specific employees. These issues almost always reflect what is happening in the larger organization. How individuals are treated also is likely to have an effect on organizational issues. For instance, if many key employees leave a firm to join its competitor, it will affect the competitive posture of the firm.The individual issues include matching people and organizations, ethics and social responsibility, productivity, empowerment, brain drain, and job insecurity.

LEARNING OBJECTIVE 1.2

Outline key steps in planning and implementing strategic HR policies

II. Planning and Implementing Strategic HR Policies

To be successful, firms must closely align their HR strategies and programs (tactics) with environmental opportunities, business strategies, and the organization’s unique characteristics and distinctive competence.

• The Benefits of Strategic HR Planning
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