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  1. 1. Chapter 1 Strategic Implications of a Dynamic HRM Environment Fundamentals of Human Resource Management Eighth Edition DeCenzo and Robbins
  2. 2. Introduction <ul><li>The World of Work - continues to change, but at an even more rapid pace. </li></ul><ul><li>HR must understand the implications of: </li></ul><ul><ul><li>globalization </li></ul></ul><ul><ul><li>technology changes </li></ul></ul><ul><ul><li>workforce diversity </li></ul></ul><ul><ul><li>changing skill requirements </li></ul></ul><ul><ul><li>continuous improvement initiatives </li></ul></ul><ul><ul><li>the contingent work force </li></ul></ul><ul><ul><li>decentralized work sites </li></ul></ul><ul><ul><li>and employee involvement </li></ul></ul>
  3. 3. Understanding Cultural Environments <ul><li>Today’s business world is truly a global village. This term refers to the fact that businesses currently operate around the world. </li></ul>
  4. 4. Understanding Cultural Environments <ul><li>HRM must ensure that </li></ul><ul><ul><li>employees can operate in the appropriate language </li></ul></ul><ul><ul><li>communications are understood by a multilingual work force </li></ul></ul><ul><li>Ensure that workers can operate in cultures that differ on variables such as </li></ul><ul><ul><li>status differentiation </li></ul></ul><ul><ul><li>societal uncertainty </li></ul></ul><ul><ul><li>assertiveness </li></ul></ul><ul><ul><li>individualism </li></ul></ul><ul><li>HRM also must help multicultural groups work together. </li></ul>
  5. 5. Understanding Cultural Environments <ul><li>GLOBE Dimensions: </li></ul><ul><ul><li>Assertiveness </li></ul></ul><ul><ul><li>Future Orientation </li></ul></ul><ul><ul><li>Gender Differentiation </li></ul></ul><ul><ul><li>Uncertainty Avoidance </li></ul></ul><ul><ul><li>Power Distance </li></ul></ul><ul><ul><li>Individualism/collectivism </li></ul></ul><ul><ul><li>In-group collectivism </li></ul></ul><ul><ul><li>Performance orientation </li></ul></ul><ul><ul><li>Humane orientation </li></ul></ul>
  6. 6. Understanding Cultural Environments <ul><li>Cultural Implications for HRM </li></ul><ul><ul><li>Not all HRM theories and practices are universally applicable. </li></ul></ul><ul><ul><li>HRM must understand varying cultural values. </li></ul></ul>
  7. 7. The Changing World of Technology <ul><li>Has altered the way people work. </li></ul><ul><li>Has changed the way information is created, stored, used, and shared. </li></ul><ul><li>The move from agriculture to industrialization created a new group of workers – the blue-collar industrial worker. </li></ul><ul><li>Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs. </li></ul>
  8. 8. The Changing World of Technology <ul><li>Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information. </li></ul><ul><li>Why the emphasis on technology: </li></ul><ul><ul><li>makes organizations more productive </li></ul></ul><ul><ul><li>helps them create and maintain a competitive advantage </li></ul></ul><ul><ul><li>provides better, more useful information </li></ul></ul>
  9. 9. The Changing World of Technology <ul><li>How Technology Affects HRM Practices </li></ul><ul><ul><li>Recruiting </li></ul></ul><ul><ul><li>Employee Selection </li></ul></ul><ul><ul><li>Training and Development </li></ul></ul><ul><ul><li>Ethics and Employee Rights </li></ul></ul><ul><ul><li>Motivating Knowledge Workers </li></ul></ul><ul><ul><li>Paying Employees Market Value </li></ul></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>Decentralized Work Sites </li></ul></ul><ul><ul><li>Skill Levels </li></ul></ul><ul><ul><li>Legal Concerns </li></ul></ul>
  10. 10. Workforce Diversity <ul><li>The challenge is to make organizations more accommodating to diverse groups of people. </li></ul>
  11. 11. Workforce Diversity <ul><li>The Workforce Today </li></ul><ul><ul><li>minorities and women have become the fastest growing segments </li></ul></ul><ul><ul><li>the numbers of immigrant workers and older workers are increasing </li></ul></ul>
  12. 12. Workforce Diversity <ul><li>How Diversity Affects HRM </li></ul><ul><ul><li>Need to attract and maintain a diversified work force that is reflective of the diversity in the general population. </li></ul></ul><ul><ul><li>Need to foster increased sensitivity to group differences. </li></ul></ul><ul><ul><li>Must deal with the different </li></ul></ul><ul><ul><ul><li>Values </li></ul></ul></ul><ul><ul><ul><li>Needs </li></ul></ul></ul><ul><ul><ul><li>Interests </li></ul></ul></ul><ul><ul><ul><li>Expectations of employees </li></ul></ul></ul>
  13. 13. Workforce Diversity <ul><li>What Is a Work/Life Balance ? </li></ul><ul><ul><li>A balance between personal life and work </li></ul></ul><ul><ul><li>Causes of the blur between work and life </li></ul></ul><ul><ul><ul><li>The creation of global organizations means the world never sleeps. </li></ul></ul></ul><ul><ul><ul><li>Communication technologies allow employees to work at home. </li></ul></ul></ul><ul><ul><ul><li>Organizations are asking employees to put in longer hours. </li></ul></ul></ul><ul><ul><ul><li>Fewer families have a single breadwinner. </li></ul></ul></ul>
  14. 14. Labor Supply <ul><li>Do We Have a Shortage of Skilled Labor? </li></ul><ul><ul><li>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. </li></ul></ul>
  15. 15. Labor Supply <ul><li>Why Do Organizations Lay Off During Shortages? </li></ul><ul><ul><li>Downsizing is part of a larger goal of balancing staff to meet changing needs. </li></ul></ul><ul><ul><li>Organizations want more flexibility to better respond to change. </li></ul></ul><ul><ul><li>This is often referred to as rightsizing , linking employee needs to organizational strategy. </li></ul></ul>
  16. 16. Labor Supply <ul><li>How Do Organizations Balance Labor Supply? </li></ul><ul><ul><li>Organizations are increasingly using contingent workers to respond to fluctuating needs for employees. </li></ul></ul><ul><ul><li>Contingent workers include </li></ul></ul><ul><ul><ul><li>Part-time workers </li></ul></ul></ul><ul><ul><ul><li>Temporary workers </li></ul></ul></ul><ul><ul><ul><li>Contract workers </li></ul></ul></ul>
  17. 17. Labor Supply
  18. 18. Labor Supply <ul><li>Issues Contingent Workers Create for HRM </li></ul><ul><ul><li>How to attract quality temporaries </li></ul></ul><ul><ul><li>How to motivate employees who are receiving less pay and benefits </li></ul></ul><ul><ul><li>How to have them available when needed </li></ul></ul><ul><ul><li>How to quickly adapt them to the organization </li></ul></ul><ul><ul><li>How to deal with potential conflicts between core and contingent workers </li></ul></ul>
  19. 19. Continuous Improvement Programs <ul><li>Continuous improvement - making constant efforts to provide better products and service to customers </li></ul><ul><ul><li>External </li></ul></ul><ul><ul><li>Internal </li></ul></ul><ul><li>Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming. </li></ul>
  20. 20. Continuous Improvement Programs <ul><li>Key components of continuous improvement are : </li></ul><ul><ul><li>Focus on the customer </li></ul></ul><ul><ul><li>Concern for continuous improvement </li></ul></ul><ul><ul><li>Improvement in the quality of everything </li></ul></ul><ul><ul><li>Accurate measurement </li></ul></ul><ul><ul><li>Empowerment of employees </li></ul></ul>
  21. 21. Continuous Improvement Programs <ul><li>Work Process Engineering involves radical, quantum changes to entire work processes. </li></ul><ul><li>How HRM Assists in Work Process Engineering </li></ul><ul><ul><li>Helps employees deal with the emotional aspects of conflict and change </li></ul></ul><ul><ul><li>Provides skills training </li></ul></ul><ul><ul><li>Adapts HR systems, such as compensation, benefits, and performance standards. </li></ul></ul>
  22. 22. Employee Involvement <ul><li>Delegation – having the authority to make decisions in one’s job </li></ul><ul><li>Work teams – workers of various specializations who work together in an organization </li></ul><ul><li>HRM must provide training to help empower employees in their new roles. </li></ul><ul><li>Involvement programs can achieve: </li></ul><ul><ul><li>greater productivity </li></ul></ul><ul><ul><li>increased employee loyalty and commitment </li></ul></ul>
  23. 23. A Look at Ethics <ul><li>Code of ethics - a formal document that states an organization’s primary values and the ethical rules it expects organizational members to follow. </li></ul>