Post on 26-Jan-2017
transcript
Human Resource as a source of competitive advantage in IT
sector
Presented by Manorama Yadav
Research Scholar-UTU, Dehradun
Human Resource as a source of competitive advantage in IT sector
Human Resource as a source of competitive advantage in IT sector
Objectives
1. Identify how firms gain competitive advantage through people.
2. Explain how globalization is influencing human resources management.
3. Describe the impact of information technology on managing people.
4. Identify the importance of change management.5. State HR’s role in developing intellectual capital.6. Differentiate how TQM and reengineering
influence HR systems.
Human Resource as a source of competitive advantage in IT sector
Objectives (cont’d)
7. Discuss the impact of cost pressures on HR policies.
8. Discuss the primary demographic and employee concerns pertaining to HRM.
9. Provide examples of the roles and competencies of today’s HR managers.
Human Resource as a source of competitive advantage in IT sector
Competitive Advantage through People• Human Resource Management
A set of inter-related policies, practices, and programs whose goal is to attract, socialize, motivate, maintain, and retain an organization’s employees
• Core Competencies Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to customers.
Human Resource as a source of competitive advantage in IT sector
Competitive Advantage through People• Competitive advantage through people is
achieved if these human resources:Have value.Are rare and unavailable to competitors.Are difficult to imitate.Are organized for synergy.
Human Resource as a source of competitive advantage in IT sector
Overall Framework for Human Resource Management
COMPETITIVECOMPETITIVECHALLENGESCHALLENGES
• GlobalizationGlobalization• TechnologyTechnology• Managing changeManaging change• Human capitalHuman capital• ResponsivenessResponsiveness• Cost containmentCost containment
HUMAN HUMAN RESOURCESRESOURCES
• PlanningPlanning• RecruitmentRecruitment• StaffingStaffing• Job designJob design•Training/developmentTraining/development• AppraisalAppraisal• CommunicationsCommunications• CompensationCompensation• BenefitsBenefits• Labour relationsLabour relations
EMPLOYEEEMPLOYEECONCERNSCONCERNS
• Background diversityBackground diversity• Age distributionAge distribution• Gender issuesGender issues• Educational levelsEducational levels• Employee rightsEmployee rights• Privacy issuesPrivacy issues• Work attitudesWork attitudes• Family concernsFamily concerns
Human Resource as a source of competitive advantage in IT sector
Competitive Challenges and Human Resources Management• The most pressing competitive issues facing
firms:Going globalEmbracing technologyManaging changeDeveloping human capital Responding to the market Containing costs
Human Resource as a source of competitive advantage in IT sector
Going Global
• GlobalizationThe trend toward opening up foreign markets to
international trade and investment.
• Impact of GlobalizationPartnerships with foreign firms “Anything, anywhere, anytime” marketsLower trade and tariff barriers
Human Resource as a source of competitive advantage in IT sector
Going Global (cont’d)• Impact on HRM
Different geographies, cultures, laws, and business practices
Issues: Identifying capable expatriate managers. Developing foreign culture and work
practice training programs. Adjusting compensation plans for
overseas work.
Human Resource as a source of competitive advantage in IT sector
Embracing New Technology
• Knowledge Workers Workers whose
responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.
Human Resource as a source of competitive advantage in IT sector
Influence of Technology in HRM• Human Resources Information System (HRIS)
Computerized system that provides current and accurate data for purposes of control and decision making.
Benefits: Store and retrieve of large quantities of data. Combine and reconfigure data to create new
information. Institutionalization of organizational knowledge. Easier communications. Lower administrative costs, increase productivity,
and response times.
Human Resource as a source of competitive advantage in IT sector
Impact of IT on HRM
TransformationalTransformationalImpactImpact
OperationalOperationalImpactImpact
RelationalRelationalImpactImpact
HRMHRM
Human Resource as a source of competitive advantage in IT sector
HRM IT Investment Factors• Initial costs and annual maintenance costs
• Ability to upgrade, increased efficiency and time savings
• Compatibility with current systems
• User-friendliness
• Availability of technical support
• Time required to implement
• Training time required for HR and payroll
Human Resource as a source of competitive advantage in IT sector
Managing Change• Types of Change
Reactive change Change that occurs after external forces have already
affected performanceProactive change
Change initiated to take advantage of targeted opportunities
• Formal change management programs help to keep employees focused on the success of the business.
Human Resource as a source of competitive advantage in IT sector
Managing Change through HR• Why Change Efforts Fail:
1. Not establishing a sense of urgency.2. Not creating a powerful coalition to guide the effort.3. Lacking leaders who have a vision.4. Lacking leaders who communicate the vision.5. Not removing obstacles to the new vision.6. Not systematically planning for and creating short-
term “wins.”7. Declaring victory too soon.8. Not anchoring changes in the corporate culture.
Human Resource as a source of competitive advantage in IT sector
Developing Human Capital• Human Capital
The knowledge, skills, and capabilities of individuals that have economic value to an organization.
Human Resource as a source of competitive advantage in IT sector
Human Capital and HRM
• Creation of knowledge• Utilization of knowledge• Application of
knowledge
Human Resource as a source of competitive advantage in IT sector
Responding to the Market• Total Quality Management (TQM)
A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.
• Six SigmaA process used to translate customer needs into a set
of optimal tasks that are performed in concert with one another.
Human Resource as a source of competitive advantage in IT sector
Responding to the Market• Reengineering
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Requires that managers create an environment for
change. Depends on effective leadership and
communication processes. Requires that administrative systems be reviewed
and modified.
Human Resource as a source of competitive advantage in IT sector
Containing Costs• Downsizing
The planned elimination of jobs (“head count”).
Human Resource as a source of competitive advantage in IT sector
Containing Costs (cont’d)• Hidden Costs of Layoff
Severance and rehiring costsAccrued vacation and sick day payoutsPension and benefit payoffsPotential lawsuits from aggrieved workersLoss of institutional memory and trust in managementLack of staffers when the economy reboundsSurvivors who are risk-averse, paranoid, and political
Human Resource as a source of competitive advantage in IT sector
Containing Costs (cont’d)• Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforceHigher customer satisfactionReadiness to snap back with the economyA recruiting edgeWorkers who aren’t afraid to innovate, knowing their
jobs are safe.
Human Resource as a source of competitive advantage in IT sector
Containing Costs• Outsourcing
Contracting outside the organization to have work done that formerly was done by internal employees.
• Employee LeasingThe process of dismissing employees who are then
hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.
Human Resource as a source of competitive advantage in IT sector
Productivity Enhancements
MOTIVATIONMOTIVATION• Job enrichmentJob enrichment• PromotionsPromotions• CoachingCoaching• FeedbackFeedback• RewardsRewards
ENVIRONMENTENVIRONMENT• Empowerment Empowerment • TeamsTeams• Leader supportLeader support• CultureCulture
ABILITYABILITY• RecruitmentRecruitment• Selection Selection • TrainingTraining• DevelopmentDevelopment
Perf = Perf = f f (A,M,E)(A,M,E)
Human Resource as a source of competitive advantage in IT sector
Demographic and Employee Concerns
• The Diversity Challenge
Human Resource as a source of competitive advantage in IT sector
Age Distribution
Human Resource as a source of competitive advantage in IT sector
Gender Distribution
Human Resource as a source of competitive advantage in IT sector
Rising levels of education
Human Resource as a source of competitive advantage in IT sector
Cultural Changes• Employee Rights
Human Resource as a source of competitive advantage in IT sector
Cultural Changes• Concern for Privacy• Changing Attitudes Towards Work• Balancing Work and Family
Human Resource as a source of competitive advantage in IT sector
Partnerships: Line Managers and Human Resources Managers• Responsibilities of HR
Advice and counselServicePolicy formulation and
implementationEmployee advocacy
Human Resource as a source of competitive advantage in IT sector
Strategic Human Resources Management• Strategy
The formulation of an organization’s missions, goals, and objective as well as the action plans to execute the strategy.
Corporate StrategyBusiness Strategy
Human Resource as a source of competitive advantage in IT sector
Strategic Human Resources Management• Strategic HRM
A set of interrelated practices, policies, and philosophies whose goal is to enable the achievement of the corporate or business strategy.
Human Resource as a source of competitive advantage in IT sector
Human Resource Competency Model
BusinessBusinessMasteryMastery
• Business acumenBusiness acumen• Customer orientationCustomer orientation
• External RelationsExternal Relations
HRHRMasteryMastery• StaffingStaffing
• Performance appraisalPerformance appraisal• Rewards systemRewards system• CommunicationCommunication
• Organization designOrganization design
ChangeChangeMasteryMastery
• Interpersonal skillsInterpersonal skillsand influenceand influence
• Problem-solving skillsProblem-solving skills• Rewards systemRewards system
• Innovation and creativityInnovation and creativity
Personal Personal CredibilityCredibility
• TrustTrust• Personal Personal
relationshipsrelationships• Lived valuesLived values
• CourageCourage
Thanks
Human Resource as a source of competitive advantage in IT sector