Have you ever tried to assemble a jigsaw puzzle? Without the picture on the box? You have all these odd-shaped little pieces of colored cardboard but no clear idea of how to start putting them together. For many managers, knowing how to hire employees, give them performance feedback, and decide on a pay raise feels much like trying to complete that puzzle without the picture. No sooner does the manager begin to feel as if she has a handle on some of these aspects of employee management than changes occur in the business environment.
It shows the relationship between the organization’s context, both external and internal, and the HR activities that the organization needs to use to manage employees to achieve its ultimate goal: competitive advantage.
By understanding the relationships among these components and how the HR activities build on each other, managers can equip and position employees to maximize their contribution to company performance, which in turn creates competitive advantage.
Regulatory issues are so critical to employee management.