Human Resources for Competitive Advantage

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Human Resources for Competitive Advantage

• Anil Verma, PhD
• Professor
• Rotman School of Management
• University of Toronto

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HRM SystemsDeterminants and Outcomes
Markets
Work Processes
Technology
Performance
People
Strategic Choice in HRM
HRM SYSTEM
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HRM Paradigm for a Global Economy
Skills
Create a Vision
Competitive Advantage
Incentives
Hire the best people
Autonomy
HRM SYSTEM
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Focus of the HR Transformation
People Strategy Value Chain
ATTRACT
SELECT
MANAGE
DEVELOP
RETAIN
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Strategic FrameworkHewlett Packard
Strategy

• Our corporate objectives
• Our corporate strategy
• Our value proposition

Values and behavior
Structure and processes

• Our shared values
• Our standards of conduct

• Our operating model

Metrics, results and rewards

• Our balanced scorecard

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HRM Policies under Competition

• Increasing Competition

Employee Involvement

• International Trade
• Deregulation
• Privatization

• Flexible Technologies

Sharing
Skills
Flexible Work Organization

• Workforce Characteristics
• Flexible adaptable
• Skilled
• Involved

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The new HRM

• I. Say - participation/involvement
• - due process
• II. Security/Skills
• - employment stabilization
• - investment in human capital
• (training, education)

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The new HRM

• III. Sharing in the fruits of labour
• - profit / gainsharing
• IV. Flexibility
• - assigning work
• - scheduling hours
• - changing production process

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The Ideological Underpinnings of HRM

• The Employment Relationship is characterized
  by
• A. Exchange - Both economic and social
• B. Power - Employer gt Employee
• C. Conflict - Rooted in roles, needs
• (i.e. dividing the pie)
• - Cannot be
  eliminated
• but can be managed

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The Ideological Underpinnings of HRM

• D. Cooperation
• Common Goals (i.e. baking the pie)
• E. Employees Always Have Some Power
  
• Even if they have less than the employer
• (i.e. silent withdrawal of effort)

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Hiring at Microsoft

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Performance Management at Hewlett Packard

• Improve the effectiveness of the goal setting
  process, and individualization of goals
• Create a line-of-sight between individual
  performance and organizational results

• Increase differentiation, pay for performance
• Fully leverage global Total Rewards portfolio

• Differentiate performance
• Improve the quality of the dialogue, and
  subsequent performance coaching and development
  outcomes

• Establish a regular structure for ongoing
  performance feedback
• Identify key performance coaching needs and
  behaviors, and implement

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Microsoft Vega Project

• Young manager, McLellan, is looking for a new
  challenge
• His boss, Jim Kaplan, suggests he look at Project
  Vega to build toys with a computer interface
• McLellan accepts the assignment
• Receives support, mentoring and coaching from
  Kaplan

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Microsoft Vega Project

• What is Unique here?
• Employee participation in assignment selection
• New challenge to motivate, to learn and grow
• Full support from Jim Kaplan
• Autonomy to run his own shop
• Mentoring and coaching from the boss to cover
  risks

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Four Types of HRM Systems