HRMT Chapter 1 notes Essay

3172 Words Oct 7th, 2013 13 Pages
CHAPTER ONE - HUMAN RESOURCE MANAGEMENT: Gaining a Competitive Advantage
I. Introduction
• Competitiveness = a company's ability to maintain and gain market share in its industry
• determined by whether the company satisfies the needs of stakeholders (groups affected by business practices)
◦ (1) Stockholders => want return on investment
(2) customers => want a high-quality product or service
(3) employees => desire interesting work and reasonable compensation
(4) community => want company to contribute to activities and projects, and minimize pollution of environment
• Human Resource Management (HRM) = policies, practices and systems that influence employees' behaviour, attitudes, and performance
◦ Refer to Figure 1.1
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Now, businesses see competitive value.
Evidence-based HR = demonstrating that human resource practices have a positive influence on the company's bottom line or key stakeholders (employees, customers, community, and shareholders) ◦ helps show money invested is justified + contributing to company's goals and objectives
◦ requires collecting data on metrics such as productivity, turnover, employee attitudes, accidents and medical costs, and showing their relationship with HR practices

V. 3 Competitive Challenges Influencing Human Resource Management
The Sustainability Challenge
• Sustainability = the ability of a company to survive and exceed in a dynamic competitive environment, based on an approach to organizational decision making that considers the company's ability to make a profit without sacrificing the resources of its employees
• Includes the ability to deal with economic and social changes, engage in responsible and ethical business practices, provide high-quality products and services, and practices environmental responsibility. • Also requires establishing methods to determine and ensure that the company is meeting stakeholders' needs
• Several changes in the

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