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McGraw-Hill/IrwinCopyright?2010byTheMcGraw-HillCompanies,Inc.Allrightsreserved.Chapter2AStrategicManagementApproachtoHumanResourceManagementTakingaStrategicHRMApproachHRMstrategiesGreaterfocusonstrategicthinkingandprocessesMakeHRmanagementatoppriorityIntegrateHRMwiththecompany’soverallstrategy,mission,andgoalsBeincludedinstrategicplanningfromtheonsetDeterminewhatmustbedonetoachievepriorityobjectivesStrategicPlansThreetofiveyeartimelineAnnualmonitoring&modificationFitbetweenorgstrategy&HRMpolicies/programsRecruitment,selection,
outsourcing,telecommuting,
performanceevaluation,compensationAModeltoOrganizeHRMADRMGoalsofARDM:sociallyresponsible,ethicalpracticesAcquiringDevelopingRewardingMaintaining
&ProtectingAModeltoOrganizeHRMExternal
InfluencesInternalInfluencesGovernmentrequirements,regulations,lawsTheunionEconomicsCompetitivenessLaborforcecompositionLocationStrategyGoalsOrganizationalcultureNatureofthetaskWorkgroupLeader’sstyleandexperienceAModeltoOrganizeHRMMatchingpeopleandactivitiesiseasiertoaccomplishwithadiagnosticapproachEmployeesarethebestqualifiedTheyperformjobsthatsuit
theirneeds,skills,abilitiesSuccessofanyHRMactivityTakingaDiagnosticApproachtoHRMTheARDMmodelhasfourspecificstepsDiagnosisImplementationPrescriptionEvaluationTakingaDiagnosticApproachtoHRM=Sociallyresponsible,ethicalbehaviorsCompetitive,high-qualityproducts
andservicesFocuson
ADRM+EnvironmentAvailableresourcesHRMEnvironmentalInfluencesGuidelinesThelabor
forceEconomic
conditionsUnionprocedures,
requirementsGovernment
laws,regulationsCompetenciesInternalInfluencesExternalInfluencesHRMisOneFunctionAmongManyProductionFinanceAccountingMarketingR&DHRMGovernmentLawandRegulationsGovernmentregulationdirectlyaffects:RecruitingSelectionEvaluationPromotionGovernmentLawandRegulationsEEO&HRrightslegislationindirectlyaffects:EmploymentplanningOrientationCareerplanningTrainingEmployeedevelopmentGovernmentLawandRegulationsOtherareasoflegislationandregulationEmploymentofillegalaliens
Discriminationbasedonsex,age,disability
Compensationregulation
Benefitsregulation
Workers'compensationandsafetylaws
Laborrelationslawsandregulations
Privacylaws
GovernmentLawandRegulationsGovernmentregulationhasincreasedsubstantiallyIn1940,theU.S.Dept.ofLaboradministered18regulatoryprogramsIn2004,itadministeredmorethan135AndthatisjustonegovernmentagencyGovernmentLawandRegulationsEncouragessimplisticthinkingoncomplicatedissuesComplexityleadstoslowdecisionmakingLeadstocomplicatedlegalmaneuveringManyregulationsareoutdated,withlittlepurposeOverlap,contradictionamongregulatoryagenciesGovernmentregulationimpactsamanager’sjobTheUnionUnion
ImpactsWorking
conditionsWork
hoursGrievance
processesEmployee
rightsFringe
benefitsWagesand
salariesTheUnionUnionsarenolongerconcentratedinafewsectorsThefastest-growingsectorsarethe
publicsectorandthethirdsectorUnionizedemployeesarenolongerjustblue-collarfactoryworkersEconomicConditionsTwoeconomicfactorsaffectHRMprograms:
ProductivityTheworksectoroftheorganizationProductivityis:Abigpartofanation'seconomiccondition
Representativeofanorganization’soverallefficiency
Theoutputofgoodsandservicesperunitofinput(resources)usedinaproductionprocess
EconomicConditionsDetermine
outputcostsIsolatetheoutputsComparecurrent&previousyearMeasuring
productivityProductivitymeasuresarecrudeandsubjecttoshort-termerror,butovertimecanshowatrendEconomicConditionsSuggestedSolutionsforIncreasingProductivityPotential
NegativeImpactsOthersAirpollutionRadiationToxicwasteReducegovernmentcontrolsDevelopfavorableincometaxincentivesReindustrializeEconomicConditionsInfluenceproductivitythroughsoundHRMprogramsDiagnose,prescribe,implement,evaluateRecruitmentandselectionMotivationaltechniquesCompensationTraininganddevelopmentTheWorkSectorofHRMPrivateSector60%Profit-orientedbusinessesPublicSector30%GovernmentThirdSector10%Museums,socialclubs,orchestras,schools,churchesCompetitivenessOrganizationalcompetitiveness…substituteorganizationfornation,andemployeesforcitizensThedegreetowhichanationcan,underfreeandfairmarketconditions,producegoodsandservicesthatmeetthetestofinternationalmarkets
whilesimultaneouslymaintainingorexpandingtherealincomes
ofitscitizensOrganizationalCompetitivenessHoweffectivelydoweproducetheproduct?Howgoodareourservicesorgoods?Canworkershandlenewtechnology?Cantheproductioncostsbelowered?Dowehaveenoughworkersforglobal
productionlevels?Willworkingharderandfasterincrease
turnover,absenteeism,anddefects?CompetitivenessDealingeffectivelywithemployees,customers,suppliers,competitorsHavingasuperiormarketplacepositionrelativetocompetitorsHowHRMactivitiesareimplementedandmodified
canprovidetheseadvantagesCompetitive
AdvantageSustainableCompetitiveAdvantageCompetitivenessActivitiesthatenhance/sustaincompetitiveadvantageEmploymentsecuritySelectiverecruitingHighwagesIncentivepayEmployeeownershipInformationsharingParticipation,empowermentTeamsandjobredesignTraining(skilldevelopment)SymbolicegalitarianismPromotionfromwithinMeasurementofpracticesCross-utilization,cross-trainingWagecompressionLong-termperspectiveOverarchingphilosophyCompetitivenessCompetitorscanadoptand/orimproveonsuccessfulHRMactivities
AfirmwithfairandequitabletreatmentofhumanresourcesislesssusceptibletolosingitscompetitiveadvantageAfewHRMactivitiescanbecopied,butimitationofanentirecultureandsystemofHRMisdifficultComposition&DiversityofLaborForce
In2004,146+millionAmericans
wereintheworkforceNotinthemilitaryEmployedoractivelyseekingwork16yearsorolderWomenintheWorkforceIn2007,about48%ofU.S.workforcewasfemaleA280%increasesince1947TheystillfaceworkplacediscriminationMosthaveprofessionaljobsMinoritiesintheWorkforceThemostrecentimmigrantgroups
takethelowest-leveljobsFewHispanics,African-Americans,orNativeAmericanshavehigh-status,high-payingjobsMinoritieslivedintheU.S.
longbeforeimmigrantsarrivedThesituationforracialðnicminorities
issimilartothatforwomenFactsAboutOlderEmployeesWorkers45+haveno
moreaccidentsthanyoungeronesUntilage55,absenteeism
ratesarethesameorlowerOlderemployeesarejustaseffective
asyoungeronesInsurancepremiumsarehigher,
makingthemmorecostlytoemployWithagingcomesaloss
ofsomefacultiesEmploymentProjectionDentalhygienistsSoftwareengineers,applicationsPhysicaltherapistassistantsPhysicianassistantsNetworksystems/datacommunicationsanalystsHomehealthaidesFastestGrowingOccupations2004-2014GeographicLocationofOrganizationThelocationoftheorganization
impactshiringpracticesand
HRMactivitiesRuralversusurbanInternationalversuslocalEducationBehaviorLegal-politicalfactorsEconomicsInter-culturaltrainingInternalInfluencesonHRMProgramsCorporatestrategyCorporategoalsCompanyCultureThenatureofthetasksWorkgroupsLeaderstyle/experienceStrategyWhatkeyexecutiveshopetoaccomplishinthelongrunConcernedwithcompetitionandaligningtheresourcesofthefirmLong-termsuccesslinkedtohelpingemployeesachieve
work-lifebalanceGoalsEffectivenessproblemsIfprofitstakeprecedence,HRMgoalsreceivelittleattentionMostdepartmentshave
similargoalsDifferencesarisefromtheimportanceplacedongoalsGoalsdifferwithinandamongdepartmentsGoalsDiversityreferstoanymixtureofthemescharacterizedbydifferencesandsimilarities
Diversityinorganizationsmeansfocusingonthecollectivepictureofdifferencesandsimilarities
GoalsWisconsinPowerandLight’sapproachtodiversitytrainingFormadiversitysteeringteamCreateadiversitytrainingteamSelecttrainingprojectmanagerCompleteculturalauditDesigntrainingprogramImplementandevaluatethetrainingOrganizationalCultureHowemployeesand
customersaretreatedHowbusiness
isconductedDegreeofloyalty
expressedbyemployeesAutonomyorfreedomin
departmentsorofficesSystemofshared
meaningheldby
organizationmembersOrganizationCultureImpactsexpectationsNoone“best”cultureProvidesbenchmarkforperformancestandardsImpactsbehavior,productivityPerceptionsofcultureheldbyemployeesNatureoftheTaskHRMistheeffectivematchingof
thenatureofthetask(job)
withthenatureoftheemployee
JobFactorsthatAttract/RepelWorkersEnvironmental
pleasantnessJobdesignPhysical
locationTaskidentityTaskvarietyTimedimensionHuman
interactionDegreeof
empowermentPhysical
exertionDegreeof
knowledgePhysical
exertionWorkGroupConsiderthemselvesagroupWorkinter-dependentlyInteractcontinuouslyOftenworknexttoeachotherTwoormorepeopleEffectiveWorkGroupsEffectiveWorkGroupsFullmemberparticipationClearlydefinedgoalsAdequateresourcesMembersfurnishsuggestionsleadingtogoalachievementStablemembershipSupportsorganizationgoalsFewinnumber(7to14)WorkcloselytogetherHavesimilarbackgroundsDependonthegroupto
satisfytheirneedsSupportmanagementFunctionasateamEffectiveGroupMembersWorkGroupChangingagroup’snormsandbehaviorManager’sleadershipRewardsanddisciplineMembertransfersLeader’sStyleandExperienceTheexperience/leadershipstyleoftheoperatingmanagerdirectlyaffectsHRMactivitiesOrchestratingtheskills,experiences,
personalities,andmotivesofindividualsFacilitatinginteractionwithinworkgroupsProvidingdirection,encouragement,and
authoritytoevokedesiredbehaviorsReinforcingdesirablebehaviorStrategicHRM:AKeytoSuccessStrategic(longterm)RewardsManagerial(mediumterm)Operational(shortterm)HRMStrategyLevelsAppraisalsDevelopmentEmployeeselection/placementHRMActivitiesStrategicHRM:AKeytoSuccessStrategicHRMplanningLeadstogrowth,profits,
businesssurvivalExpandsawarenessofpossibilities
Identifiesstrengthsandweaknesses
Revealsopportunities
Pointstotheneedtoevaluatethe
impactofinternalandexternalforces
StrategicHRM:AKeytoSuccessMatchingStrategicplansEmployeecharacteristicsCompetitiveproductsandservicesHRMactivities=StrategicHRMInvolvedinallaspectsoforganization’soperationMakeseverydaycontributionsComprehensiveprogramsAdaptivetoorganization’scultureResponsivetoemployeeneedsOptimizesemployeeskills,talents,creativityResponsivetoglobalchallengesStrategicHRM:AKeytoSuccessGlobalmarketconnectionGrowingknowledgeneedsShiftinhumancompetenciesQuickerinnovationBusinessstreamliningRapidresponseTechnologyTrendsQualityimprovementIndustrialrevolutionBuildingaCooperativeWorkforceAlmosthalftheworkforceisfemaleSlowergrowthinnumberofCaucasianworkersWhitemalesnolongerdominateworkforceBabyboomersarestayinginworkforcelongerChangesinU.S.WorkforceGenXisvyingwithBoomersforjobsMoreHispanic,Asian,olderworkersBuildingaCooperativeWorkforceMoreemphasison…ChildandeldercareDiversityunderstanding,trainingFair,ethical,promptissuehandlingRecruiting/developingskilledlaborRestructuringandDownsizingHalfofdownsizedfirmsendupwithasmanyworkersDownsizinginmanufacturingisnotnewPositivelycorrelatedtoforeigncompetitionEncouragesfirmstoreducetheircostsProfitsincreaseintheshort-run,butnotproductivityLeadstolowercompensation/wageswithinthefirmFactsAboutDownsizingRestructuringandDownsizingRestructuringChangingthereportingandauthorityrelationshipswithin
afirmDownsizingAreductioninacompany’sworkforceCanresultin
stress-related
healthproblemsContingentWorkersTemporaryParttimeContractLeasedHighestgrowthrate…h(huán)omehealthcare;medicalassistants;computerhardware,datacommunication,andsoftwarePeople&theHRMDiagnosticFrameworkAbilitiesAttitudes,preferencesStylesIntellectualcapacitiesWayofdoingjobsAbilitiesofEmployeesAbilities/SkillsMechanicalMotorcoordinationMentalCreativeAbilitiesresultingfromgeneticfactorscanrarely
bechangedEmployeeAttitudesandPreferencesPreferenceEvaluatinganobject,idea,orpersoninapositiveornegativewayAttitudeCharacteristic,long-lastingwayofthinking,feeling,andbehavingObject,idea,person,orgroupWorkTheamountofenergydirectedtowardworkisdirectlylinkedtotheamountdirectedtofamily,interpersonalrelations,andrecreationAllowsexpressionofbothaggressiveand
pleasure-seekingdrivesOffersjustificationforexistenceAwaytochannelenergyProvidesincomeAwaytoachieveself-esteem,self-worthMotivationAsetofattitudesthatpredisposesapersontoactinaspecific,goal-direct
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