Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Human Resource
Management
GAINING A
COMPETITIVE
ADVANTAGE
Fourth Edition
Raymond A. Noe
The Ohio State University

John R. Hollenbeck
Michigan State University

Barry Gerhart
Vanderbilt University

Patrick M. Wright
Cornell University
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Objectives
After reading this chapter, you should be able to:
Chapter
1. Discuss the roles and activities
of a companys activities of a
companys human resource
function.
2. Discuss the implications of the
new economy and e-business
for HRM practices
3. Discuss how human resource
practices affect a companys
balanced scorecard.
4. Discuss what companies
should do to be competitive in
the global marketplace

5. Identify the characteristics of
the work force and how they
influence human resource
management practices.
6. Discuss human resource
practices that support high-
performance work systems.
7. Provide a brief description of
human resource management
practices.
Human Resource
Management: Gaining a
Competitive Advantage
1
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitiveness and HRM
Competitiveness- refers to the companys ability to
maintain and gain market share in its industry.
HRM- refers to policies, practices and systems that
influence employees behaviors, attitudes and
performance.

Effective HRM Company
Practices Performance
affects
1-2
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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
HR Function in Transition


Administrative Strategic
Function Business
Partner
1-3
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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Challenges
Influencing HRM
Competing in the New Economy
The Global Challenge
The Challenge of Meeting Stakeholders Needs
The High Performance Work System Challenge
1-4
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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competing in the New Economy
Develop an E-Business
Competition of Labor
Knowledge Value Increase
Required Skills
1-5
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competing in the New Economy
Employment Relationship Changes

More Flexibility Included in Demanding
Work
Ways of to Win the War for Talent



1-6
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competing Through
Globalization
Expand into foreign markets.

HRM practices that create competitiveness in
foreign markets.

Prepare employees to work in foreign
locations.
1-7
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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competing by Meeting
Stakeholders Needs
1-8
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Stockholders Customers Employees Community
Stakeholders
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competing by Meeting
Stakeholders Need
The balanced scorecard
Meeting customer needs for quality
Labor force of economy
Legislation and litigation
Ethical considerations

1-9
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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Principles of Total Quality
Management
1-10
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1. Customer Focus
6. FEEDBACK
5. Fact-based
decision-making
4. employees
expertise
TRANSFORMATION
PROCESS
2. focus on process
3. prevention vs. inspection
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Categories and Point Values:
Malcolm Baldrige Award
1-11
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Business Results - 450 points
Customer Focus - 80 points
& Market Focus
Process Management - 100 points
HRD & Management - 100 points
Leadership - 110 points
Information Analysis - 80 points
Strategic Planning - 80 points
Total points = 1000
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
ISO 9000
ISO 9000
It was developed by the International Organization
for Standardization in Geneva, Switzerland.
It is the name of a family of standards that includes
requirements such as how to establish quality
standards and document work processes to help
workers understand quality system requirements.
It has been adopted as a quality standard in nearly
100 countries.
1-12
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Six Sigma Process
The Six Sigma Process
System of measuring, analyzing, improving, and
then controlling processes once they have been
brought within the narrow Six Sigma quality
tolerances or standards.
Objective is to create a total business focus on
serving the customerthat is, deliver what
customers really want when they want it.
1-13
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Composition of the Labor Force
Internal Labor Force the labor force of the current
employees
External Labor Force persons actively seeking
employment
Managing Diversity
To successfully manage a diverse workforce, managers
much develop a new set of skills.
Many US companies have already made a commitment
to ensuring that diversity in their workforce is
recognized and effectively used for competitive
advantage.
1-14
Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
HIGH-PERFORMANCE
Work System Challenge
Change in work roles & skills
Use of teams
Change in nature of managerial work
Change in company structures
Availability of HRM databases and e-HRM
Increased competitiveness


1-15
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Copyright 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Dimensions of
HR Practices
Managing the HR Environment
Acquiring and Preparing HR
Assessing and Developing HR
Compensating HR
COMPETITIVENESS
1-16
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