Human resource management: Leaders, laggards, and followers

Executive Overview Most American companies face intense competition, have had to cut costs, and see a continuing need to improve quality and customer service. In response, they have trimmed their work forces and expanded operations overseas. Those companies that rank as human resource leaders have combined downsizing with restructuring, reengineering, employee involvement programs, and team-based work redesigns. They have retrained and redeployed twice as many workers as the human resource laggards, are more apt to sponsor private-public partnerships with schools, offer employees flexible work arrangements, and conduct diversity training and mentoring programs. Neither leaders nor laggards, HB followers are hampered by short-term pressures, indifferent middle management, and other barriers to change; such companies wait for innovations to take hold in their industries. Because HR executives are generally not well-positioned to promote innovation in their companies, the gap between leaders, followers, and laggards, may widen in the years ahead.