WAL_MMBA6510_04_A_EN

The New Role of Human Resource Management: 

This presentation offers you an opportunity to interact with the slides. Anytime you see a , you can click on it for more information. After you read the additional information, simply click on the return button. The New Role of Human Resource Management The Challenges & Changing Nature of Human Resources Susan H. Jespersen, DBA, SPHR, GPHR

Introduction and Home Page: 

Introduction and Home Page The challenges organizations encounter have a major impact on all aspects of its operations, whether it is a large multinational conglomerate, a small firm, or a public agency. These challenges have led to a renewal or rebirth of the human resource management function in organizations. Part 1: The Challenges and Components of Human Resource Management (HRM) Functional Unit Part 2: HRM from a Leader’s Perspective Part 3: Barriers and Outcomes of Strategic HRM Part 4: Issues Related to International HRM Click on the small arrows to go to the sections or click on the large arrow to continue with the presentation. Click on the “Home” button to return to this page.

Part 1: 

Part 1 The Challenges and Components of a HRM Functional Unit Beginning with the Human Resource Management Functional Model slide, each component of Human Resource Management is explained. This section of the PowerPoint is aligned with the HRM Focus-Topic assignment and is a springboard for your research paper. Back to Introduction

Competitive Challenges Ahead: 

Competitive Challenges Ahead Dave Ulrich (2005) summarizes eight categories of challenges: Globalization Value Chain for Business Competitiveness and Human Resources (HR) Services Profitability through Cost and Growth Capability Focus Change, Change, and Change Some More Technology Attracting, Retaining, and Measuring Competence and Intellectual Capital Turnaround Is Not Transformation Click on the question mark box to read more about each of the challenges. You will be returned to this slide each time.

Challenge 1: Globalization : 

Challenge 1: Globalization HR will need to create models and processes for attaining global agility, effectiveness, and competitiveness. Along with the movement of technology across boundaries, employees need to possess political savvy of various countries, as well as an awareness of global trade issues and knowledge of global customers.

Challenge 2: Value Chain: 

Challenge 2: Value Chain Value Chain for Business Competitiveness and HR Services will be involved in building and operating organizations that will be more customer responsive. Responsiveness to the global customers will require using a service frame of mind, being aware of customer needs, and building strong customer relationships.

Challenge 3: Profitability through Cost and Growth : 

Challenge 3: Profitability through Cost and Growth HR must provide the programs that foster employee responsiveness through innovation, faster decision making, leading an industry in price or value, and effectively linking with suppliers and vendors to build a value chain for customers.

Challenge 4: Capability Focus : 

Challenge 4: Capability Focus Organizational capabilities are the things the firm always does better than its competitors do. HR professionals need to frame what they do in terms of the capabilities they must create. Individual competencies become organizational capabilities.

Challenge 5: Change and Change Some More : 

Challenge 5: Change and Change Some More Managers, employees, and organizations must learn to change faster and more comfortably. HR professionals must design, disseminate, and sponsor the organizational model for change.

Challenge 6: Technology : 

Challenge 6: Technology The one constant in our environment is change and new technology. Technology dramatically affects how and where work is done, through teleconferencing, telecommuting, and shared data sources.

Challenge 7: Competence and Intellectual Capital : 

Challenge 7: Competence and Intellectual Capital HR professionals will be upgrading the leadership bench strength. Leadership in the future will be team focused and shared, rather than driven by a single person. It will become an ongoing process of pioneering and risk taking. Measures for financial performance must now be coupled with measures of intellectual capital.

Challenge 8: Turnaround Is Not Transformation : 

Challenge 8: Turnaround Is Not Transformation Transformation changes the fundamental image of the business, as seen by the customers and employees. HR professionals will be involved in creating fundamental and enduring change.

PowerPoint Presentation: 

The Human Resource Management Functional Model

The Human Resource Management Functional Model: 

The Human Resource Management Functional Model The functional model is a graphic conceptualization of the functions HR professionals perform for an organization. In small business the functions exist, only they may be performed by the business owner.

Three HRM Components: 

Three HRM Components 1. Create the System 2. Maintain the System 3. Improve the System

PowerPoint Presentation: 

Creating the System Organizational Design - How work flows to meet objectives Job Design - The tasks, skills, and environment of the job Planning - Track employees through promotions, exits, and forecast need Selection and Staffing - Recruit and select for best fit Click on each of the question mark boxes to learn about the component. You will be returned to this slide.

Organizational Design: 

Organizational Design Involves determining and arranging how the product or service will flow through the organization to the customer with the greatest effectiveness and efficiency. The organization may be centralized with strong control from the top in one place, or it may be spread out into diverse small units.

Job Design: 

Job Design Involves developing the job, describing it, and planning its role in the flow of work. Job design might involve simple boring tasks on an assembly line, or broad duties with diverse contacts with customers or other employees. The design of the job directly affects motivation and performance.

Planning: 

Planning Human Resource Planning involves predicting the availability of the right numbers of skilled employees to perform the work effectively. Besides tracking employees entering and exiting the organization, this also involves staying abreast of internal and external trends to ensure that the right skills are available in the right amount at the right time.

Selection and Staffing: 

Selection and Staffing This function is the most commonly known, but actually HR is responsible for consulting to and assisting line managers with filling open job positions. Recruiting involves finding viable candidates for jobs locally and afar. Selection involves using various tools and techniques to determine the best candidate for a particular job. Staffing also involves the movement of employees through the organization to new jobs, and the exiting of employees due to retirement or termination, whether voluntary or involuntary.

Maintain the System: 

1. Information Systems - Records, reports, and decision systems 2. Compensation & Benefits - Job evaluation, salary levels, and health, retirement, savings 3. Employee Assistance - Confidential counseling, etc. 4. Labor Relations - Contract negotiation, grievance procedure, and arbitration Maintain the System

1. Information Systems: 

1. Information Systems While charged with ensuring the privacy of employee information, human resource systems maintain records and track job and salary changes. Such decision systems support all of the other functions. Specialized systems can collect information and facilitate access to correct existing data for the members of the organization through internal networks and Web-based portals.

2. Compensation and Benefits : 

2. Compensation and Benefits On an ongoing basis, this function is involved with designing and maintaining programs strategically designed to support the mission and goals of the organization. Pay for performance and incentives for employee motivation would also be included. Decisions involve job evaluation and market analysis to ensure that equity between jobs internally and externally are maintained.

3. Employee Assistance : 

3. Employee Assistance Confidential counseling services provided through third parties are made available to support employees and their families with substance abuse, personal problems, and family counseling. This function might also include employee relations tasks that address performance issues and discipline.

4. Labor Relations : 

4. Labor Relations This function includes contract negotiation with union representatives, grievance procedures, and arbitration of grievances. Contract administration may involve wages, benefits, and collection of union dues.

PowerPoint Presentation: 

Improve the System 1. Career Development - Employee career planning, counseling, and transition 2. Individual Development - Needs assessment and training 3. Organization Development - Team building, change management, etc.

1. Career Development : 

1. Career Development While it may be internal or external in focus, this function may involve how individuals plan and implement their own career goals (career planning) and how organizations design and implement their career development programs (career management). Organizations find that career management processes support and foster motivation, especially for a restructuring or necessary reductions in force.

2. Individual Development : 

2. Individual Development The means through which the organization assists employees in progressing to add skills and knowledge to handle new responsibilities. Assessing the needs of employees is essential to the planning of group training, seminars, online training, and educational programs. Even more critical is the evaluation of the transfer of new skills to the workplace to ensure the return on the investment in training.

3. Organization Development : 

3. Organization Development Involves planned intervention with the employees to provide guidance and skills to deal with change, enhance team effectiveness, and improve overall organizational performance.

The Human Resource Management Wheel: 

The Human Resource Management Wheel Components continuously interact and follow one another in the system

Part 2: HRM from a Leader’s Perspective: 

Part 2: HRM from a Leader’s Perspective The following slides provide a model for the leader to explore in order to find ways to strategically infuse the HRM unit with the goals of the organization. You will first explore how to shift from the day-to-day operations to a focus on the future; how to shift from process to people. Next you will consider the roles of the HR professionals. Finally, you will examine a competency model related to the HR roles. Back to Introduction

PowerPoint Presentation: 

FUTURE / STRATEGIC FOCUS DAY-TO-DAY / OPERATIONAL FOCUS PEOPLE PROCESSES Management of Strategic Human Resources Management of Transformation and Change Management of Firm Infrastructure Management of Employee Contribution Source: Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results . Boston: Harvard Business School Press.

HR Roles in Building a Competitive Organization: 

This model describes the function human resource professionals serve in an organization as a business partner Ulrich (1997). HR Roles in Building a Competitive Organization

HR Roles in Building a Competitive Organization: 

The Y-axis represents the poles of long-term/strategic focus versus the short-term/operational focus. HR professionals must focus on both simultaneously. Activities (the X-axis) range from managing processes (HR tools and systems) to managing people. Within this framework are the four principal HR roles. HR Roles in Building a Competitive Organization

HR Roles in Building a Competitive Organization: 

HR Roles in Building a Competitive Organization Note the four key roles necessary to make the business partnership with HR professionals a reality.

Definition of HR Roles: 

Definition of HR Roles Role/Cell Deliverable/ Outcome Metaphor Activity Management of Strategic Human Resources Executing strategy Strategic partner Aligning HR and business strategy: “Organizational diagnosis” Source: Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results . Boston: Harvard Business School Press. In the Management of Strategic Human Resources, HR professionals perform organizational diagnosis to determine its strengths and weaknesses in order to align HR practices with the business strategy. They become strategic partners in assisting management to execute the strategy. HR professionals must identify HR practices that make the strategy happen. For example, when Motorola wanted to gain access to Russian markets, it offered training and development opportunities to Soviet customers.

Definition of HR Roles: 

Definition of HR Roles Role/Cell Deliverable/ Outcome Metaphor Activity Management of Firm Infrastructure Building an efficient infrastructure Administrative Expert Reengineering Organization Processes: “Shared services” Source: Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results . Boston: Harvard Business School Press. In the Management of Firm Infrastructure, HR professionals have traditionally served as administrative experts in the efficient processes of staffing, training, appraising, rewarding, promoting, and otherwise managing the flow of employees through the organization. This continues to be an important role, but is downplayed to include the others. For example, Marriott works diligently to improve processes. When opening a new facility, Marriott temporarily relocates employees into that facility to implement the best practices used at other facilities. It sponsors the sharing of best practices through workshops.

Definition of HR Roles: 

Definition of HR Roles Role/Cell Deliverable/ Outcome Metaphor Activity Management of Employee Contribution Increasing employee commitment and capability Employee Champion Listening and responding to Employees: “Providing resources to employees” Source: Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results . Boston: Harvard Business School Press. In the Management of Employee Contribution, HR professionals must link employee contributions to the organization’s success. Acting as active employee champions who understand employees’ needs and ensure that these needs are met, HR professionals support the continued growth and effectiveness of the overall employee contribution. Such activities are critical to the organization’s ability to change, meet customer expectations, and increase financial performance. Employee intellectual capital becomes a significant appreciable asset that is reflected in the firm’s financial results. For example, Apple has created an employee services center, which employees can call using an 800 number, staffed by people who can answer questions about company policy and administration.

Definition of HR Roles: 

Definition of HR Roles Role/Cell Deliverable/ Outcome Metaphor Activity Management of Transformation and Change Creating a renewed organization Change Agent Managing transformation & change: “Ensuring capacity for change” Source: Ulrich, D. (1997). Human resource champions: The next agenda for adding value and delivering results . Boston: Harvard Business School Press. In the Management of Transformation and Change, transformation entails fundamental cultural change within the firm. HR becomes the cultural guardian and catalyst. Change refers to the ability of an organization to improve the design and implementation of initiatives and to reduce cycle time in all organizational activities. HR professionals help identify and implement processes for change, build commitment to those processes, and ensure that change occurs as intended.

Traditional HR Versus Strategic HR : 

Traditional HR Versus Strategic HR Traditionally HR might have been mistakenly described as organizational police. The function developed and disseminated the internal policies for the organization, and HR staff specialists were responsible for enforcing those policies and processing the associated paperwork. The strategic focus on the line managers to function as the first-line HR manager clears away from a centralized control. Line managers deal with their employees daily and must address issues and questions that employees have. The HR professionals serve as consultants or business partners to provide specialized support.

Traditional HR Versus Strategic HR: 

Traditional HR Versus Strategic HR Traditional HR Strategic HR Responsibility for HR Staff specialists Line managers Focus Employee relations Partnerships with internal and external customers Role of HR Transactional, change follower, and respondent Transformational, change leader, and initiator Initiatives Slow, reactive, fragmented Fast, proactive, integrated Time horizon Short-term Short, medium, long Control Bureaucratic – roles, policies, procedures Organic – flexible, necessary to succeed Job design Tight division of labor, independence, specialization Broad, flexible, cross-training, teams Key investments Capital, products People, knowledge Accountability Cost center Investment center Source: Mello, J. A. (2002). Strategic human resource management . Cincinnati, OH: South-Western.

Synthesis of Roles for HR Professionals: 

Synthesis of Roles for HR Professionals Adapted from: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. The roles of human resource professionals in organizations have evolved into what they must do to deliver value to the organization. This model represents a synthesis of how diverse thinkers in this field believe HR must function. Employees are critical to reaching competitive advantage in a knowledge-based economy with dynamic demographic change. (Ulrich & Brockbank, 2005).

Synthesis of Roles for Human Capital Developer: 

Adapted from: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. Synthesis of Roles for Human Capital Developer The role of Human Capital Developer goes hand-in-hand with Employee Advocate because HR must also build the future workforce. Here what we mean by “human capital” is a future focus on the wealth created through and by people in the organization. This may include unlearning old skills and mastering new ones in a consistent process of upgrading capabilities through coaching and training delivered by various means.

Synthesis of Roles for Functional Expert: 

Adapted from Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. Synthesis of Roles for Functional Expert The role of Functional Expert begins with the implication that HR professionals will operate with a complete body of knowledge and expertise in their own field of specialization. Actions and decisions made based on a body of knowledge brings to the organization the richness of innovation and state-of-the-art practices that align the direction of the workforce with the strategic plan.

Synthesis of Roles for Strategic Partner: 

Synthesis of Roles for Strategic Partner The role of Strategic Partner involves forming alliances with line managers to consult with them and assist them in creating value for customers. As members of the management team, HR professionals can bring in-depth knowledge of people and the organization while exhibiting business savvy. For example, Katy Barclay, vice president of global HR for General Motors, believes that her deep understanding of the global business environment is an important asset she provides as a business partner. Adapted from Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press.

Synthesis of Roles for Employee Advocate: 

In the role of Employee Advocate, the task is to ensure a reciprocal relationship with employees where employees benefit and the organization benefits. According to Ulrich and Brockbank, “The treatment employees receive shows in the treatment of customers and, ultimately, of investors. Indirectly, caring for employees builds shareholder value” (2005, p. 202). Synthesis of Roles for Employee Advocate Adapted from Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press.

Synthesis of Roles for HR Leader: 

Adapted from Ulrich, D., & Brockbank, W. (2005). The HR value proposition. Boston: Harvard Business School Press. Synthesis of Roles for HR Leader The role of HR Leader brings us back to the important role of leading the HR team within the organization. As leaders, HR professionals will focus on identifying talent and developing capabilities that deliver value, such as joining with marketing and sales to reach out to customers, or joining with manufacturing to improve quality and productivity.

Evolution of HR Roles: 

Evolution of HR Roles Mid-1990s Mid-2000s Evolution of thinking Employee Champion Employee advocate (EA), human capital (HC) developer Employees are increasingly critical to the success of organizations. The EA focuses on today’s employee; HC developer focuses on how employees prepare for the future Administrative Expert Functional expert HR practices are central to HR value: administrative efficiency (technology), and through policies, menus, and interventions Change Agent Strategic partner Multiple dimensions: business expert, change agent, knowledge manager, and consultant Strategic Partner Strategic partner Leader Same as above Sum of above roles: collaborating with other functions, ensuring corporate governance, and monitoring the HR community Adapted from Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press.

Evolution of HR Roles (cont.): 

Adapted from: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. Evolution of HR Roles (cont.) Ulrich and Brockbank (2005) help us to see how the HR roles of the mid-1990s have changed and regrouped in a knowledge-based economy. The Employee Champion must combine the roles of Employee Advocate and Human Capital Developer. Instead of an Administrative Expert focused on clerical maintenance, the role is to be the Functional Expert. The Change Agent has progressed more broadly to become a Strategic Partner where change is only one of its tasks. And last, the Strategic Partner has more logically added to the role of Leader of the HR function.

Competency Model for The HR Value Proposition: 

Competency Model for The HR Value Proposition Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press.

Competency Model for The HR Value Proposition: 

Competency Model for The HR Value Proposition Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. As a logical follow-through to the definition of human resource management roles within the organization, we are then interested in how those roles can be performed. What competencies must HR professionals possess to be successful? Ulrich and Brockbank (2005) developed this model based upon the results of studies conducted at the University of Michigan’s Business School in four major waves over 16 years. The samples included thousands of HR professionals and over 28,000 HR clients (line managers and peers).

Competency Model for Strategic Contribution: 

Competency Model for Strategic Contribution Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. Statistically, the Strategic Contribution of HR accounted for over 50% of the influence on organizations, with subset factors also including culture management, fast change, strategic decision making, and market-driven connectivity.

Competency Model for Personal Credibility: 

Competency Model for Personal Credibility Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. Personal Credibility showed a close second with more than 25% of the influence on performance. Included in this important factor were others such as achieving results, effective relationships, and communication skills.

Competency Model for HR Delivery: 

Competency Model for HR Delivery Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. HR Delivery—delivering traditional HR services— is another major area of importance. Services include staffing, training and development, organization design, performance management, HR measurement, and legal compliance. Even though it is necessary, HR Delivery alone is not enough to provide an ongoing positive influence to the organization.

Competency Model for Business Knowledge: 

Competency Model for Business Knowledge In addition, HR professionals need business knowledge, which translates to having a good understanding of the organization they serve and the industry in which it functions. Within the business knowledge area, it is important to have value chain knowledge, knowledge of the company’s value proposition, and labor knowledge. Knowledge of the value chain is the link between customer demand in the market with the supply of products or services internally. Value chains exist in profit and nonprofit organizations. Knowledge of the firm’s value proposition involves how value-creating activities occur, such as developing a portfolio of businesses, determining which markets to pursue and which marketing activities to use to approach those markets, and understanding the basis processes required to produce products or services and meet quality standards.

Competency Model for HR Technology: 

Competency Model for HR Technology Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition . Boston: Harvard Business School Press. HR Technology is also an important competency, although it is more difficult to show how a new HR information system actually contributes to cost reductions. HR professionals need to be comfortable using these systems and continue looking for greater efficiencies. Organizations that effectively manage HR Technology have systems that allow employees to update their own personal information, thus reducing utilization of resources for input of information.

Part 3: Strategic HR: 

Part 3: Strategic HR Barriers to Strategic HR In these next few slides, we are shifting our focus to Strategic Human Resource Management and will begin with the barriers that hamper organizations from successfully achieving it. Outcomes to Strategic HR Back to Introduction

Barriers to Strategic HR: 

Barriers to Strategic HR Short-term mentality/focus on current performance Inability of HR to think strategically Lack of appreciation of what HR can contribute Failure to understand general manager’s role as an HR manager Difficulty in quantifying many HR outcomes Perception of human assets as higher risk investments Incentives for change that might arise Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Short-term mentality/focus on current performance : 

Short-term mentality/focus on current performance Many times we are so bogged down in the daily ebb and flow of requests and deadlines that we neglect the long-range vision of where the organization is going. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Inability of HR to think strategically : 

Inability of HR to think strategically For whatever reason, it may very well be that the HR staff themselves are not prepared to think of their strategic role. Lack of knowledge of the competencies we just discussed could be the cause. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Lack of appreciation of what HR can contribute : 

Lack of appreciation of what HR can contribute This statement implies that it is top management’s thinking here, but the blame is equally on the HR staff. If the competencies are in place and HR is fully aware of its role in supporting the organization in achieving its business strategy, then this will change. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Failure to understand general manager’s role as an HR manager: 

Failure to understand general manager’s role as an HR manager When HR professionals are no longer performing administrative maintenance work, they more likely find time for strategic design of new HR programs. Line managers need coaching and encouragement to accept their rightful place as the leader of their employees. Most of them have secretly longed for this role. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Difficulty in quantifying many HR outcomes : 

Difficulty in quantifying many HR outcomes If we are not successful in measuring the outcomes of HR programs, we cannot successfully communicate to management how significant the programs can be in adding value. A recent process that has been very helpful in measuring and quantifying is called the Balanced Scorecard. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Perception of human assets as higher risk investments : 

Perception of human assets as higher risk investments Mistakenly, management may become overly concerned with employee-related costs rather than seeing them as human capital—assets that add value to the customer. Proper quantification of costs and long-range results must be communicated in a manner to prove the return on investment of HR programs. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Incentives for change that might arise: 

Incentives for change that might arise Because implementing a strategic approach will bring change, there is naturally great resistance. Some organizations may have difficulty accepting the potential that changes will occur. This is an example of the need for HR to implement good change management processes. Source: Mello, J. A. (2002). Strategic human resource management (pp. 104–106). Cincinnati, OH: South-Western.

Outcomes of Strategic HR: 

Outcomes of Strategic HR Effective management of staffing, retention, and turnover through selection of employees that fit both strategy and culture Cost-effective utilization of employees through investment in human capital with identified potential for high retention Integrated HR programs and policies that clearly follow corporate strategy Facilitation of change and adaptation through a flexible, more dynamic organization Tighter focus on customer needs, key and emerging markets, quality Increased Performance Customer and Employee Satisfaction Enhanced Shareholder Value through Adapted from: Mello, J. A. (2002). Strategic human resource management (p. 107). Cincinnati, OH: South-Western.

Outcomes of Strategic HR: 

Outcomes of Strategic HR Example: Wells Fargo Bank, based in San Francisco, is a large banking organization with 3,000 employees, 185 branches, five separate divisions, and $20 billion in annual transactions. The bank transformed its HR function from a highly centralized HR department at headquarters, to a new decentralized and more integrated approach with HR professions working to support local management. HR staff was trained in facilitation and consultation skills, technical issues, and strategizing and partnering. The transformation took a year to implement and brought the following results: Reduced turnover by 19%, pay problems by 99%, and savings of almost $1 million annually (Mello, 2005).

Part 4: International Human Resources: 

Part 4: International Human Resources Beyond the development of international operations, research and development, sales forces, and accounting systems, HR professionals will be involved with cross-border issues, merging global workforces, and cultures. The bottom line issue will be to discover ways for individuals from diverse backgrounds to work together i.e., “finding ways to develop a corporate glue that will hold the organization effectively together” (Briscoe & Schuler, 2004, p. 397). Back to Introduction

General Competencies of International Human Resources: 

General Competencies of International Human Resources Cross-cultural interpersonal skills Ability to learn about multiple cultures Local responsiveness (colleagues, officials, markets, regulations, and current affairs Cross-national adaptation Change and diversity management Coaching and development of global literacy Source: Briscoe, D., & Schuler, R. (2004). International human resource management . (2nd ed., p. 414). New York: Routledge.

General Competencies of International Human Resources: 

General Competencies of International Human Resources As organizations reach beyond country boundaries to expand to the global marketplace, business expansion comes in the form of cross-border activities, acquisitions, joint ventures, and alliances.

Specific Competencies of International Human Resources: 

Specific Competencies of International Human Resources Effective recruiting and staffing to attract and retain the best talent Formal communication systems International Human Resource Information System Fostering global mindset through training and development Developing leadership through a program of cross-cultural assignments Positioning HR function as a strategic business partner in the global business Demonstrating worth of IHR through global bottom-line contribution and source of worldwide strategic advantage Global HR systems: training, compensation, performance management, employee relations, and health and safety Source: Briscoe, D. & Schuler, R. (2004). International human resource management . (2 nd Ed.) New York: Routledge. P. 414.

1. Effective recruiting: 

1. Effective recruiting It is important to set up systems to recruit in local countries and consider experienced local nationals for opportunities in other countries. The expatriate system of relocating employees from the home country to manage operations in a foreign country is very expensive and subject to higher levels of turnover. It is more commonly used for new operations in countries where there are few qualified candidates and inexperienced workforces.

2. Formal communication systems: 

2. Formal communication systems Compatibility of communications not only must overcome language differences, but also technological differences. For example, electric power in some locations is sporadic at best. How does the foreign unit communicate with customers and headquarters? In some instances, a new phone system had to be installed.

3. International HR Information System: 

3. International HR Information System Systems must be compatible to transmit data and reports between facilities. Compatibility would include differences in available equipment, software, and data formats. Issues of employee privacy are significant, for instance, in the European Union where employee records must not leave the country. Tracking business data and employee statistics are essential to measure HR outcomes.

4. Global Mindset: 

4. Global Mindset Helping employees relate to and understand one another is accomplished more rapidly through training and management development. Educational activities are useful for learning languages, cultural history, understanding the laws and regulations of local governments, and religious influences. Ethics in the global setting is an important area of training, since what is legal in one country may not be in another.

5. Cross-Cultural Assignments: 

5. Cross-Cultural Assignments Foreign assignments of 2–3 years also broaden perspectives and help HR professionals relate to the cultural differences of local employees and customers.

6. Strategic Business Partner: 

6. Strategic Business Partner Similar to earlier discussions about HR professionals serving as business partners, they should work closely with management consulting about the process of building or adding new foreign units.

7. Demonstrate Worth of IHR: 

7. Demonstrate Worth of IHR HR professionals must contribute through action—success breeds success and greater reliance and trust.

8. Global HR Systems: 

8. Global HR Systems HR professionals must ensure that they are knowledgeable and competent in the various services that must be provided in the global setting. Rapid change is going on in this profession as more sophisticated programs and expertise in Global Human Resource Management are developed.

The New Role of Human Resource Management: 

The New Role of Human Resource Management Thank you!