They may for example become experts at analyzing the business impact of HR deci

They may for example become experts at analyzing the

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They may, for example, become experts at analyzing the business impact of HR deci- sions or at developing and keeping the best talent to support business strategy. An example of an HRM professional who understands this role is Cynthia McCague, director of human resources at Coca-Cola. When McCague took the post, profit growth was stalling, morale was poor, and employee turnover was a major prob- lem. McCague had HR staff conduct a survey of Coke’s top 400 managers. Analysis showed that the company lacked a clear direction and shared purpose, and it con- firmed the low morale, as well as a focus on short-term performance at the expense of long-term results. Coke put together teams of top leaders to address each of these problems, and then the HR group helped roll out changes such as a mission state- ment, an improved reward system, and a more useful intranet for sharing company information online. As employees have begun to feel more purposeful, turnover has fallen, attitudes have improved, and the company has begun reporting high sales and stock prices. 23 The specific ways in which human resource professionals support the organization’s strategy vary according to their level of involvement and the nature of the strat- egy. Strategic issues include emphasis on quality and decisions about growth and effi- ciency. Human resource management can support these strategies, including efforts such as quality improvement programs, mergers and acquisitions, and restructuring. Decisions to use reengineering and outsourcing can make an organization more effi- cient and also give rise to many human resource challenges. International expansion presents a wide variety of HRM challenges and opportunities. Figure 2.4 summarizes these strategic issues facing human resource management. High Quality Standards To compete in today’s economy, companies need to provide high-quality products and services. If companies do not adhere to quality standards, they will have difficulty selling their product or service to vendors, suppliers, or customers. Therefore, many organizations have adopted some form of total quality management (TQM) —a LO4 Identify ways HR professionals can support organizational strategies for quality, growth, and efficiency. Total Quality Management (TQM) A companywide effort to continually improve the ways people, machines, and systems accomplish work.
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CHAPTER 2 Trends in Human Resource Management 39 companywide effort to continually improve the ways people, machines, and systems accomplish work. 24 TQM has several core values: 25 • Methods and processes are designed to meet the needs of internal and external customers (that is, whomever the process is intended to serve). • Every employee in the organization receives training in quality.
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