This first chapter provides a broad overview of the strategic human resource challenges organizations face, and provides a framework to understand the role of human resource strategies, activities, and programs to achieve sustained competitive advantage. To support this broad perspective, some of the most important external and internal challenges vis-‘a-vis HR strategies are discussed in three categories: environmental challenges, organizational challenges, and individual challenges. The chapter explains the planning and implementation of strategic HR policies, as well as the role of line managers and the HR department in the effective use of human resources. Also explored here is how managers, in partnership with Human Resource professionals, adopt and implement HR strategies through specific strategies and programs. HR professionals are often responsible for designing these programs in order to meet business goals and employee needs. While the line managers provide the necessary input during the program design phase, they are primarily responsible for carrying out or implementing such programs. This chapter provides a strong overview of how firms can use HR strategies and initiatives to deal with external and internal challenges which are then explored in detail in later chapters.
ANNOTATED OUTLINE
I. Human Resource Management: The Challenges (PPT 1.1 and 1.2) Human resource challenges that face today’s managers may be categorized according to their primary focus: the environment, the organization; or the individual. Firms that deal with these challenges effectively are likely to outperform those that do not.
A. Environmental Challenges (PPT 1.3)
Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. They include: rapid change, the Internet revolution, workforce diversity, globalization, legislation,