Chapter 1Strategic Implications of a Dynamic HRM Environment

Human Resource Management

Introduction

• The World of Work - continues to change, but at an even more rapid pace.

• HR must understand the implications of: globalization technology changes workforce diversity changing skill requirements continuous improvement initiatives the contingent work force decentralized work sites and employee involvement

Understanding Cultural Environments

• Today’s business world is truly a global village. This term refers to the fact that businesses currently operate around the world.

Understanding Cultural Environments

• HRM must ensure that employees can operate in the appropriate language communications are understood by a multilingual work force

• Ensure that workers can operate in cultures that differ on variables such as status differentiation societal uncertainty assertiveness individualism

• HRM also must help multicultural groups work together.

Understanding Cultural Environments

• GLOBE Dimensions: Assertiveness Future Orientation Gender Differentiation Uncertainty Avoidance Power Distance Individualism/collectivism In-group collectivism Performance orientation Humane orientation

Understanding Cultural Environments

• Cultural Implications for HRM Not all HRM theories and practices are

universally applicable. HRM must understand varying cultural values.

The Changing World of Technology

• Has altered the way people work. • Has changed the way information is

created, stored, used, and shared.• The move from agriculture to

industrialization created a new group of workers – the blue-collar industrial worker.

• Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs.

The Changing World of Technology

• Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information.

• Why the emphasis on technology: makes organizations more productive helps them create and maintain a competitive

advantage provides better, more useful information

The Changing World of Technology

• How Technology Affects HRM Practices Recruiting Employee Selection Training and Development Ethics and Employee Rights Motivating Knowledge Workers Paying Employees Market Value Communication Decentralized Work Sites Skill Levels Legal Concerns

HRM / HRDPoint of distinction HRM HRD

1. status It is and independent functions with independent sub function.

It is an integrated system consisting of interdependent sub system

2. orientation It is a service and reactive function It is a proactive function

3. aims It seeks to improve efficiency of people and administration

It seeks to develop total organization and its culture.

4. incentives used It focuses on salary, economic rewards, job simplification and job specification for motivating people.

It focuses on autonomous work group. Job challenges and creativity for motivating people

5. responsibility It is considered to be responsibility of hrm

It is the responsibility of all manager

Workforce Diversity

• The challenge is to make organizations more accommodating to diverse groups of people.

Workforce Diversity

• The Workforce Today – minorities and women have become the

fastest growing segments– the numbers of immigrant workers and older

workers are increasing

Workforce Diversity

• How Diversity Affects HRM Need to attract and maintain a diversified

work force that is reflective of the diversity in the general population.

Need to foster increased sensitivity to group differences.

Must deal with the different• Values• Needs• Interests• Expectations of employees

Workforce Diversity

• What Is a Work/Life Balance? A balance between personal life and work Causes of the blur between work and life

• The creation of global organizations means the world never sleeps.

• Communication technologies allow employees to work at home.

• Organizations are asking employees to put in longer hours.

• Fewer families have a single breadwinner.

Labor Supply

• Do We Have a Shortage of Skilled Labor? The combination of the small Gen-X

population, the already high participation rate of women in the workforce, and early retirements will lead to a significantly smaller future labor pool from which employers can hire.

Labor Supply

• Why Do Organizations Lay Off During Shortages? Downsizing is part of a larger goal of

balancing staff to meet changing needs. Organizations want more flexibility to better

respond to change. This is often referred to as rightsizing, linking

employee needs to organizational strategy.

Labor Supply

• How Do Organizations Balance Labor Supply? Organizations are increasingly using

contingent workers to respond to fluctuating needs for employees.

Contingent workers include• Part-time workers• Temporary workers• Contract workers

Labor Supply

Labor Supply

• Issues Contingent Workers Create for HRM How to attract quality temporaries How to motivate employees who are receiving

less pay and benefits How to have them available when needed How to quickly adapt them to the organization How to deal with potential conflicts between

core and contingent workers

Continuous Improvement Programs

• Continuous improvement - making constant efforts to provide better products and service to customers External Internal

• Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming.

Continuous Improvement Programs

• Key components of continuous improvement are: Focus on the customer Concern for continuous improvement Improvement in the quality of everything Accurate measurement Empowerment of employees

Continuous Improvement Programs

• Work Process Engineering involves radical, quantum changes to entire work processes.

• How HRM Assists in Work Process Engineering Helps employees deal with the emotional aspects of

conflict and change Provides skills training Adapts HR systems, such as compensation, benefits,

and performance standards.

Employee Involvement

• Delegation – having the authority to make decisions in one’s job

• Work teams – workers of various specializations who work together in an organization

• HRM must provide training to help empower employees in their new roles.

• Involvement programs can achieve: greater productivity increased employee loyalty and commitment

A Look at Ethics

• Three views of ethics: Utilitarian View – decisions are made on the basis of

their outcomes or consequences Rights View – decisions are made with concern for

respecting and protecting individual liberties and privileges

Theory of Justice View – decisions are make by enforcing rules fairly and impartially

• Code of ethics - a formal document that states an organization’s primary values and the ethical rules it expects organizational members to follow.

Chapter # 1 KEY TERMS

1–25

• Human Resource Management• Human Resources• Globalization• Downsizing• Rightsizing• Outsourcing• Core Employees• Continuous Improvement• Merger• Acquisition• Ethics• Management• Planning• Organizing• Leading• Controlling

• Strategic Human Resource Management

• Staffing Function• Training & Development Function• Motivation Function• Maintenance Function• Communication Programs• Labor Union• Management Thought• Scientific Management• Compensation and Benefits• Employee Relation Function

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