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HRM01 - HRM in changing environment


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Published in: Business, Technology

HRM01 - HRM in changing environment

  1. 1. Chapter One HRM in a Changing Environment Lectured by Mr. Samath Houy Tel: 012 211 345 Email: 1
  2. 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 2
  3. 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 3
  4. 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 4
  5. 5. Human resource (HR) management Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. 5
  6. 6. Types of Organizational Assets Assets Physical Financial Intangible Human 6
  7. 7. Core Competencies in Possible HR Areas 7
  8. 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. 8
  9. 9. HR Management Functions 9
  10. 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 10
  11. 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 11
  12. 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. 12
  13. 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. 13
  14. 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 14
  15. 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 15
  16. 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. 16
  17. 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 17
  18. 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 18
  19. 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 19
  20. 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. 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 21
  22. 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 22
  23. 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 23
  24. 24. EndofChapter01 24