This document discusses key topics in human resource management including: - HRM is the process of managing human talent to achieve organizational objectives. - It is important to study HRM to understand how to manage people and build human capital within organizations through continuous development, retaining top performers, and experience. - Organizations face challenges in strategically responding to changes in the marketplace regarding entry strategies, personnel placement, and crisis management. They modify operations using approaches like Six Sigma, reengineering, downsizing, and outsourcing. - Change management is a systematic way of managing organizational and individual changes through communicating vision, setting expectations, and developing execution capability. Proactive and reactive changes are both important strategic considerations.

1. Human Resource
Management
Chapter 1 – The Challenge of Human
Resource and Management

2. Human Resource Management
The process of managing human talent to
achieve an organization’s objective.

3. Why Study HRM?
• Opportunity to
manage people
• Have a good
understanding

4. How to build human capital in
organizations?
 Continue to develop superior knowledge skills
 Experience within their workforces
 Retain and promote top performers
Human capital – the
knowledge, skills and
capabilities of individuals that
have economic value to an
organization

5. Challenge #1: Responding Strategically to
Changes in the Marketplace
 What is our entry strategy?
 Who should we send first?
 Where should we locate our sales,
production and other personnel?
 How do we manage a crisis?

6. MODIFY THE WAY THEY
OPERATE TO BE SUCCESSFUL
 Six Sigma Quality
– a set of principles and
practices whose core ideas
include understanding
customer needs, doing
things right the first time,
and striving for continuous
improvement.
 Reengineering –
rethink and redesigning of
business process to
achieve improvements in
cost, quality, service and
speed
 Downsizing – the planned
elimination of jobs
 Outsourcing – hiring
someone outside the
company

7. Change Management
- A systematic way
of bringing about
and managing both
organization
changes and
changes on the
individual level
 Envision the future
 Communicate this
vision to employees
 Set clear expectations
for performance
 Develop the capability
to execute by
recognizing people
and relocating assets

8. 2 STRATEGIC CHANGES
REACTIVE CHANGE
- Result when external
forces have already
affected an organization’s
performance
PROACTIVE
CHANGE
- to have advantage of
targeted opportunities
particularly in fast-
changing industries

9. Keep in mind…
 HR’s role is not all about providing advice to
CEO’s and supervisors
 HR managers are also responsible for listening
to and advocating on behalf of employees to
make sure their interests are aligned with those
of the firm and vice versa