Chapter 1 Strategic Implications of a Dynamic HRM Environment

1. Fundamentals of Human Resource Management, DeCenzo and Robbins

2. Chapter 1 Strategic Implications of a Dynamic HRM Environment DeCenzo and Robbins Fundamentals of Human Resource Management, DeCenzo and Robbins

3. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

4. 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. MNC Global village National Culture dimensions HRM Practices must be adjusted Global frame work Fundamentals of Human Resource Management, DeCenzo and Robbins

5. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

6. Understanding Cultural Environments • GLOBE Dimensions: • Assertiveness • Future Orientation • Gender Differentiation • Uncertainty Avoidance • Power Distance • Individualism/collectivism • In-group collectivism • Performance orientation • Humane orientation Fundamentals of Human Resource Management, DeCenzo and Robbins

7. Understanding Cultural Environments • GLOBE Dimensions: • Assertiveness: Assertive and aggressive in social relationships. • Future Orientation: planning, investing and delaying gratifications. • Gender Differentiation • Uncertainty Avoidance • Power Distance Fundamentals of Human Resource Management, DeCenzo and Robbins

8. Understanding Cultural Environments • GLOBE Dimensions: • Individualism/collectivism: How much being in group is rewarded? • In-group collectivism: People want to be a part of the group • Performance orientation: Acceptance of the legitimacy of hierarchy and valuing of perseverance and thrift. • Humane orientation: how much altruism, generosity, fairness, friendliness, being caring (basically being good) is appreciated. Fundamentals of Human Resource Management, DeCenzo and Robbins

9. Understanding Cultural Environments • Cultural Implications for HRM • Not all HRM theories and practices are universally applicable. • HRM must understand varying cultural values. Fundamentals of Human Resource Management, DeCenzo and Robbins

10. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

11. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

12. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

13. Workforce Diversity • The challenge is to make organizations more accommodating to diverse groups of people. Fundamentals of Human Resource Management, DeCenzo and Robbins

14. Workforce Diversity • The Workforce Today • minorities and women have become the fastest growing segments • the numbers of immigrant workers and older workers are increasing Fundamentals of Human Resource Management, DeCenzo and Robbins

15. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

16. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

17. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

18. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

19. 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: Are there for a few hours and are rarely given any extra benefits • Temporary workers: they are like part timers, but they may be employed for some time as a replacement. • Contract workers: bound for some time, skilled, generally charge a high fee for their expertise Fundamentals of Human Resource Management, DeCenzo and Robbins

20. Labor Supply Fundamentals of Human Resource Management, DeCenzo and Robbins

21. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

22. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

23. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

24. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins

25. 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 Fundamentals of Human Resource Management, DeCenzo and Robbins

26. 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. Fundamentals of Human Resource Management, DeCenzo and Robbins