This chapter discusses trends affecting human resource management and how HRM can support organizations. It outlines objectives related to describing trends in the labor force and their impact on HRM. These trends include a more diverse workforce, aging populations, and skills deficiencies. The chapter also discusses how HRM can help create high-performance work systems through employee empowerment, teamwork, and recruiting knowledge workers. It analyzes how changes in the labor force influence HRM practices around diversity management, lifelong learning, and ensuring an appropriate skills match between employees and organizations.

1. Chapter 2
Trends in
Human
Resource
Management
Krishna Mae P. Cubar

2. OBJECTIVES:
•Describe trends in the Labor Force and how they affect HRM
• Summarize areas in which HRM can support the goal of creating high performance work systems
• Define employee empowerment and explain its role in the modern organization
• Summarizes ways in which HRM can support organizations expanding internationally
• Discuss how technological development are affecting HRM
• Explain how the nature of the employment relationships is changing
• Discuss how the need for flexibility affects HRM

3. Labor Force
Definition:
The labor force, or workforce,
is the total number of people
who are currently employed
plus the number of people who
are unemployed and seeking
employment.

4. The Labor Force
Internal
Labor Force
External
Labor Force
-an organization’s
workers
•employees
•people who have
contracts to work at the
organization
Individuals who are
actively seeking
employment.
Number and kinds of
people in external labor
market determine kinds
of human resources
available to an
organization.
-an organization’s
workers
•employees
•people who have
contracts to work at the
organization

5. Change in the Labor Force
Diverse Workforce
Skill Deficiencies
Aging Workforce

6. Generations

7. Figure 1. Age Distribution of Philippine Statistic
Authority of Employed person by age, 2018 and 2020
July 2018 April 2020

8. Diverse Workforce Gender
More males were employed than females
Employment rate was higher among men compared to women. In April 2020, three in every five (61.9%) of the estimated 33.8
million employed persons were males while employed females were reported at 38.1 percent. (Table 3, and Figure 3)
By age, most of the employed persons were in the age group 25 to 34 years old (27.6%), followed by the employed persons in
the age group 35 to 44 years old (24.0%), and in the age group 45 to 54 years old (19.3%). (Table 3)
https://psa.gov.ph/statistics/survey/labor-and-employment/labor-force-survey/title/Employment%20Situation%20in%20April%202020

9. HRM Practices that Support Diversity Management

10. Putting an emphasis on digital literacy
-According to a 2018 survey, only 16% of business leaders and 9% of
employees consider themselves digitally proficient. However, as a digital HR trend
in 2022, the Philippines can anticipate learning and development strategies that
provide employees with essential digital skills.
Skill Deficiencies
Professional Skilled

11. Effect of Labor Force to the HRM
Aging Workforce
•Human resource professionals will spend much of their time on concerns related to planning retirement, retraining
older workers, and motivating workers whose careers have plateaued.
• Organizations struggle to control rising costs of health care and other benefits.
• Organizations must find ways to attract, retain, and prepare youth labor force. As more and more of the workforce
reaches retirement age, some HR companies have set up mentoring programs between older and younger workers
so that knowledge is not lost but passed on.
Diverse Workforce
Diversity of labor force challenges employers to create HRM practices that ensure to fully utilize the talents, skills,
and values of all employees. Employers will have to ensure that employees and HRM systems are free of bias
and value the perspectives and experience that women and minorities can contribute to organizational goals such
as product quality and customer service.
Skill Deficiencies
Employers are looking for skills: mathematical verbal interpersonal computer
The HRM role is to challenge competition in regards to qualifications in the external labor force as well as
provide necessary programs to the internal labor force who needs apprenticeship and training so that the gap
between skills needed and skills available will decreased among employees.

12. High-Performance Work Systems
Organizations have best fit between their:
-social systems (people and how they interact)
-technical system (equipment and processes)
Key trends in high-performance work systems:
-reliance on knowledge workers
-empowerment of employees
-teamwork

13. Figure 3.

14. Change in the Labor Force

15. WAYS HRM GOAL
FOR HPWS
HRM can help organizations find and keep
the
best possible fit between their social system
and technical system. Organizations need
employees
with broad skills and strong motivation.
Recruiting
and selection decisions are especially
important for
organizations that rely on knowledge
workers. Job
design and appropriate systems for
assessment and

16. END