Human Resource ManagementWeek [2] – Textbook NotesChapter [1]The way an organization acquires, treats, develops, and rewards the people who work for it is arguablythe most important source of its competitive advantage; It is very difficult for a competitor to copy suchsuccess and productivity.oThe success of managing people is a reflection of human developmental pathways andorganizational philosophies, cultures, and networks that are difficult for competitors to replicate.The termshuman resources, human capital, intellectual assets, and talent managementimply thatpeople drive the performance of their organizations (along with other resources, such as money,materials, and information).HRM involves a wide variety of activities:Analyzing a company’s competitive environment anddesigning jobs so that a firm’s strategy can be successfully implemented to beat the competition.oThis requiresidentifying, recruiting, and selectingthe right people for those jobs;Training,motivating, and appraisingthese people;developing competitive compensation policiestoretain them;grooming them to leadthe organization in the future.Why study human resources management?In which of these activities would you like to engage in your career:oEstablishing the strategic direction your firm should take?oAttracting top-notch people to come to work for you and your firm?oDetermining the right people to hire so your team and company are a success?oHelping and coaching people so they become top-notch performers?oMake pay decisions that may influence people’s lives?HRM jobs such as human resources manager, compensation specialists, and talent managers arerewarding jobs, psychologically and financially.Managers play a key role inselecting, training, motivating, appraising, and promotingemployees.In addition, great business plans and products and services can easily be copied by your competitors.oGreat personnel cannot. Their knowledge and abilities are among the most distinctive andrenewable resources upon which a company can draw.oIf you never become a manager, understanding human resources management can help youunderstand your responsibilities and rights as an employee.Human Capital and HRMAs organizations “compete through people”, achieving success increasingly depends on anorganization’s ability to manage talent, orhuman capital.oAlthough the value of such assets does not show up directly on a company’s balance sheet, it hasa tremendous impact on an organization’s performance.Human capital is intangible and cannot be managed the way organizations manage jobs, products, andtechnologies.oEmployees own their own human capital (not organizations).oIf valued employees leave a company, they take their human capital with them, and anyinvestment the company has made in training and developing these people are lost.
