1. Chapter One
HRM in a Changing Environment
Lectured by Mr. Samath Houy
Tel: 012 211 345
Email: houysamath@sru.edu.kh
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2. Objectives
After completing this chapter, you will be able to:
Discuss how cultural environments affect HRM practices
Identify the organizational assets and core competencies in HR areas
Define human capital and identify the seven categories of HR activities
Describe how technology is changing HRM
Describe how the major roles of HR management are being transformed
Provide an overview of six challenges facing HR today
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3. Strong
employees
=
Competitive
advantage
HRM is a subset of management.
It has five main goals:
Goals
of
HRM
hire
employees
attract
employees
retain
employees
motivate
employees
train
employees
Introduction
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4. HRM helps employees understand other countries’
political and economic conditions.
Understanding Cultural Environments
 HRM operates in a global business environment.
Countries have different
 values
 morals
 customs
 political, economic, and legal systems
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5. Human resource (HR) management
Designing management
systems to ensure that
human talent is used
effectively and efficiently
to accomplish
organizational goals.
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6. Types of Organizational Assets
Assets
Physical Financial Intangible Human
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7. Core Competencies in Possible HR Areas
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8. Human Capital in Organizations
Human Capital
The collective value of the
capabilities, knowledge,
skills, life experiences, and
motivation of an
organizational workforce.
Core Competency
A unique capability that
creates high value and
differentiates an organization
from its competition.
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9. HR Management
Functions
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10. The Changing World of Technology
 HRM information systems help to
 facilitate HR plans
 make decisions faster
 clearly define jobs
 evaluate performance
 provide desirable, cost-effective benefits
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11. The Changing World of Technology
 HR managers use technology to:
 recruit, hire, and train employees
 motivate and monitor workers
 research fair compensation packages
 communicate throughout the organization
 evaluate decentralized employees’ performance
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12. HR Management’s Contributing Role
Organizational Culture and HR
Organizational Culture
– Is the shared values and beliefs in an organization.
– Is the internal “climate” of the organization.
– Positively affects service and quality, productivity, and
financial results.
– Is affected by differences in cultural dimensions.
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13. HR Management’s Contributing Role
Organizational Productivity
Productivity
A measure of the quantity
and quality of work done,
considering the cost of
the resources used.
Unit Labor Cost
A measure of HR productivity
computed by dividing the
average cost of workers by
their average levels of output.
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14. Goals
• Increase
organizational
productivity
• Reduce unit
labor costs
Restructuring the Organization
•Revising organizational structure
•Reducing staff
•Aiding in mergers and acquisitions
Re-Designing Work
•Changing workloads and combining
jobs
•Reshaping jobs due to technology
changes
Outsourcing
•Using domestic vendors/contractors
instead of employees
•International outsourcing operations
Aligning HR Activities
•Attracting and retaining employees
•Training and developing employees
•Evaluating and compensating
employees and other HR activities
Approaches to Improving Organizational Productivity
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15. HR Management’s Contributing Role
Social Responsibilities and HR
HR Advantages and Social Responsibilities
– Attracting and retaining employees
– Achieving sustainability in dealing with economic challenges
– Creating a “green culture”
Global Social Responsibility and HR
– Results in higher organizational images globally, better employee
morale and loyalty, and more competitive advantages with consumers
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16. Human Resource Management
Social
Responsibility
Customer
Service
Quality
HR Management’s Contributing Role
Customer Service and Quality Linked to HR
Linking HR to social responsibility, customer service, and quality
significantly affects organizational effectiveness.
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17. HR Management’s Contributing Role
Employee Engagement and HR Culture
Employee Engagement
– Individuals feel linked to organizational success and how the
organization performs positively.
Social Networking
– Has evolved from personal contacts and oral communications to
include:
• E-mail and text messages
• Twitters
• Blogs
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18. Current and Future HR Management
Challenges
Organizational Cost Pressures and Restructuring
Pressures from global competitors and information
technology have forced firms to use:
– international outsourcing
– adapt management practices
– increase productivity, and
– decrease labor costs
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19. Current and Future HR Management
Challenges
Economics and Job Changes
The shifts in the global economy has changed to the
service industry rather than manufacturing firms.
– Occupational Shifts
– Workforce Availability and Quality Concerns
– Talent Management and Development
– Growth in Contingent Workforce
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20. Current and Future HR Management
Challenges
Globalization of Organizations
The business has shifted trade to the integration
of global operations, management, and strategic
alliances.
– An expatriate
– A host-country national
– A third-country national 20

21. Current and Future HR Management
Challenges
Workforce Demographics and Diversity
More diverse racially and ethnically, more women
and the average age in workforce are increasing.
– Racial/Ethnic Diversity
– Women in the Workforce
– Aging Workforce
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22. Current and Future HR Management
Challenges
HR Technology
Human Resource Management System (HRMS)
– An integrated system providing information used by
HR management in decision making.
Purposes of HRMS Data Collection
– Administrative and operational efficiency
– Availability of data for HR strategic planning
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23. Current and Future HR Management
Challenges
Measuring HR Impact through Metrics
More analytical and develop metrics that measure the HR
efforts, much like financial officers.
– measuring the cost of hiring someone,
– calculating the turnover costs when persons leave the firm,
– doing a return-on-investment analysis of training results and
expenses
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24. EndofChapter01
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