Lecture 1 hr as a compatitive advantage advanced hr sahar

Four roles of SHRM
1. Strategic Partner –Partnership with the entire organization to ensure
alignment of the HR function with the needs of the organization.
The HRM is responsible for formulating a flexible organizational structure
to monitor and ensure its proper implementation, development or
adjustment besides acting as partners with the other operation
managers.
2. Change Agent – skill to anticipate and respond to change within the
HR function, but as a company as a whole. HR aid the organization to
adapt quickly to any changes. They often initiate, if not facilitate
organizational changes. HR study the internal changes in the company
including turnover ratio, retirement, promotion. Also the external changes
whether technological as new technologies have to be taught and
trained, and even the economic climate that may result in more or less
demand for the products.

Four roles of SHRM
3. Employee Champion/ advocate – Works for employees currently
within the organization. HR help employees to be more engaged in the
company. HR practices include motivating employees, delivering
orientations and training to them beside deciding the perfect systems for
measuring employees’ performance and rewarding them.
4. Administrative Expert – The ability to understand and implement
policies, procedures, and processes that relate to the HR strategic plan.
HR can perform their functions in various effective ways for cheaper
and less time. For example, detailed process for recruitment in order to
recruit the right people for the right positions. To efficiently do so, they
can rely on technologies that could filter automatically the CVs and
cover letters, and other documents they receive from applicants, to save
time on shortlisting for interviews. This would be beneficial as it would
speed up the process of choosing numerous diverse skilled people from
a range of a backgrounds.

1- Human Capital and HRM
• Words to describe how important people
are to organizations – Human Resources,
Human Capital, Intellectual Assets, and
Talent Management.
• Organizations “compete through people”.
This idea highlights the fact that achieving
success increasingly depends on an
organization’s ability to manage talent, or
human capital.

• Human Capital - The knowledge, skills, and
capabilities of individuals that have economic
value to an organization.
• Although the value of these assets might not
show up directly on a company’s balance sheet,
it nevertheless has tremendous impact on an
organization’s performance.
▪ Human capital is intangible and cannot be
managed the way organizations manage jobs,
products, and technologies. 1–15

▪ One reason why is because employees, not the
organization, own their own human capital.
▪ If valued employees leave a company, they take their
human capital with them, and any investment the
company has made in training and developing these
people is lost.
▪ Valuable because capital:
• is based on company-specific skills.
• is gained through long-term experience.
• can be expanded through development.
“An organization’s ability to learn, and translate that
learning into action rapidly, is the ultimate
competitive business advantage.” ( Jack Welch,
General Electric)

◆ An organization can succeed if it has sustainable
competitive advantage.
◆ HR give organizations advantages because human
resources are valuable, cannot be imitated, have
no good substitutes and with needed skills and
and knowledge are sometimes rare.
HRM and Sustainable
Competitive Advantage

HRM and Sustainable
◆ An organization can succeed if it has
sustainable competitive advantage.
◆ HR give organizations advantages
because human resources are valuable,
cannot be imitated, have no good
substitutes and with needed skills and
knowledge are sometimes rare.
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Human Resource Management
8/2/2021
0 The preselection phase involves planning practices. The
organization must decide what types of job openings will exist
in the upcoming period and determine what qualifications are
necessary to perform these jobs.
0 During the selection phase, the organization selects its
employees. Selection practices include recruiting applicants,
assessing their qualifications, and ultimately selecting those
who are deemed to be the most qualified.

Human Resource Management
8/2/2021
0 In the post selection phase, the organization develops HRM
practices for effectively managing people once they have
“come through the door.”
0 These practices are designed to maximize the performance
and satisfaction levels of a firm’s employees by providing them
with the necessary knowledge and skills to perform their jobs
and by creating conditions that will energize, direct, and
facilitate the employees’ efforts toward meeting the organiza-
tion’s objectives.

HRM Preselection Practices
0Firm must analyze and plan for their
treatment of workers before they can carry
out the remaining HRM practices.
0HR Planning: A process that helps companies
identify their future HRM needs and how
those needs can be met.
0Job Analysis: Systematic procedure for
gathering, analyzing, and documenting
information about particular jobs
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HRM Post-selection Practices
0 Companies implement post selection practices to maintain
or improve their worker’s job performance.
0 Training and Development:
- Training: Planned learning experiences that teach workers
how effectively perform their current jobs.
- Development: Planned learning experiences that prepare
workers to effectively perform their current jobs.
0 Performance Appraisal: A process used by companies to
measure the adequacy of their employees’ job performance
and communicate these evaluations to them.
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HRM Post-selection Practices
0 Compensation: The pay and benefits that employees
receive from the company.
0 Pay: The wage or salary that employees earn.
0 Benefits: A form of compensation provided to employees in
addition to their pay, such as health insurance or employee
discounts.
0 Productivity Improvement Programs: Organizational
interventions designed to improve productivity by
increasing employee motivation.
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Gaining a Competitive
Advantage
0 Firms can gain a competitive advantage over
competitors by effectively managing their human
resources.
0 Competitive Advantage: A status achieved by a
company when gaining a superior marketplace
position relative to its competition.
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Defined
0 To succeed, an organization must gain and maintain
an edge over its competitors—that is, a firm must
develop a competitive advantage or superior
marketplace position relative to its competition.
0 Firms can accomplish this aim in one of two ways:
through cost leadership or product differentiation
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Linking HRM Practices to
Stanford professor Jeffrey Pfeffer describes the
potential impact of HRM practices on competitive
advantage. Pfeffer identified 16 HRM practices that can
enhance a firm’s competitive advantage
Source: Pfeffer, J. (1994). Competitive Advantage through People. Boston: Harvard
Business School Press.
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HRM Practices that Enhance
0 Employment security: A guarantee of employment stating that
no employee will be laid off for lack of work; provides a signal
to the employees of long-term commitment by the organization
to the workforce.
0 This practice generates employee loyalty, commitment, and a
willingness to expend extra effort for the organization’s benefit.
0 Selectivity in recruiting: Carefully selecting the right
employees in the right way. On average, a highly qualified
employee produces twice as much as a poorly qualified one.
Moreover, by being selective in its recruitment practices, the
organization sends the message to applicants that they are
joining an elite organization that has high expectations
regarding employee performance
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0 High wages: Wages that are higher than that required by the
market (i.e., higher than that paid by competitors). High wages
tend to attract better-qualified applicants, make turnover less
likely, and send a message that the firm values its employees.
0 Incentive pay: Allowing employees who are responsible for
enhanced levels of performance and profitability to share in the
benefits. Employees consider such a practice to be fair and just.
If all the gains generated from the employees’ ingenuity and
efforts go to top management, people will view the situation as
unfair, become discouraged, and abandon their efforts
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0 Employee ownership: Giving the employees ownership
interests in the organization by providing them with such
things as shares of company stock and profit- sharing
programs. Employee ownership, if properly implemented, can
align the interests of employees with those of other
shareholders. Such employees will likely take a long-term view
of the organization, its strategy, and its investment policies.
0 Information sharing: Providing employees with information
about operations, productivity, and profitability. Information
sharing provides an informed basis for employees to
appreciate how their own interests and those of the company
are related, and thus provides them with the information they
need in order to do what is required for success.
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0 Participation and empowerment: Encouraging the
decentralization of decision making and broader worker
participation and empowerment in controlling their own work
process. Organizations should move from a system of
hierarchical control and coordination of activity to one in which
lower-level employees are permitted to do things to enhance
performance. Research has shown that participation increases
both employee satisfaction and productivity.
8/2/2021

0 Teams and job redesign: The use of interdisciplinary teams
that coordinate and monitor their own work. Teams exert a
powerful influence on individuals by setting norms regarding
appropriate work quantity and quality. Positive results from
group influences are more likely when there are rewards for
group efforts, when groups have some autonomy and control
over the work environment, and when groups are taken
seriously by the organization.
0 Training and skill development: Providing workers with the
skills necessary to do their jobs. Training not only ensures that
employees and managers can perform their jobs competently,
but it also demonstrates the firm’s commitment to its
employees
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0 Cross-utilization and cross-training: Train people to perform
several different tasks. Having people do several jobs can make
work more interesting and provide management with greater
flexibility in scheduling work. For instance, it can replace an
absent worker with one who has been trained to perform those
duties.
0 Symbolic egalitarianism: Equality of treatment among
employees established by such actions as eliminating executive
dining rooms and reserved parking spaces. The reduction in the
number of social categories tends to diminish the “us” versus
“them” thinking and provides a sense of everyone working
toward a common goal.
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0 Wage compression: Reducing the size of the pay differences
among employees. When tasks are somewhat interdependent
and cooperation is needed to accomplish the work, pay
compression can lead to productivity gains by reducing
interpersonal competition and enhancing cooperation.
0 Promotion from within: Filling job vacancies by promoting
employees from jobs at a lower organizational level. Promotion
increases training and skill development, offers employees an
incentive for doing well, and can provide a sense of fairness
and justice in the workplace.
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0 Long-term perspective:. The organization must realize that
achieving competitive advantage through the workforce takes
time to accomplish, and thus a long- term perspective is
needed.
0 In the short run, laying off people is probably more profitable
than trying to maintain employment security, and cutting
training is a quick way to maintain short-term profits. But once
achieved, competitive advantage brought about by the use of
these HRM practices (i.e., employment security and training) is
likely to be substantially more enduring
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0 Measurement of practices: Organizations should measure
such things as employee attitudes, the success of various
programs and initiatives, and employee performance levels.
Measurement can guide behavior by indicating “what counts,”
and it can provide the company and its employees with
feedback as to how well they are performing relative to
measurement standards.
0 Overarching philosophy: having a system of values and
beliefs about the basis of success and how to manage people.
For instance, the overarching philosophy at Advanced Micro
Devices is “continuous rapid improvement; empowerment;
seamless organizational boundaries; high expectations; and
technical excellence.”
8/2/2021

HRM practices
0 Poor HRM practices can harm employee-centered outcomes by
creating negative attitudes and destructive behaviors, such as
low organizational commitment, distrust in management, job
dissatisfaction, absenteeism, psychological stress, aggressive
behavior, theft, and turnover.
0 Effective HRM practices, on the other hand, can lead to the
opposite results. For instance, good selection practices can help
identify applicants who are competent, motivated, and have
good work attitudes. An effective training program can teach
workers ways to improve their job performance, thus increasing
their competence. It has also been found to increase workers’ job
satisfaction and organizational commitment. Training can also
teach managers how to better motivate their employees and to
treat them in a way that will improve their job satisfaction. An
effective productivity improvement program can motivate
workers to try harder to help the company meet its goals.
8/2/2021

Lecture 1 hr as a compatitive advantage advanced hr sahar

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