This document discusses the dynamic environment of human resource management. It covers how cultural, technological, and workforce diversity factors affect HRM practices. It also addresses challenges like responding to labor shortages, implementing continuous improvement programs, gaining employee involvement, dealing with recessions, offshoring jobs, and managing mergers and acquisitions. The overall document serves to outline the key external factors that influence HRM and how organizations must adapt their HRM strategies in response.

1. Chapter 02
The Dynamic Environment
of HRM
Sehrish Imdad Dogar
BBA(H) University of Sindh
MBA SZABIST
email i.d: dogarsehrish@gmail.com
FB page: https://www.facebook.com/Sehrish
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

2. introduction
• Business Environment: encompasses all
those factors that affect a company's
operations.
• why study the Environment?
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

3. HRM Environment
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

4. Introduction
HRM is a subset of management. It has five main
goals:
attract
employees
Goals
of
HRM
hire
employees
retain
employees
motivate
employees
train
employees
Strong employees = competitive advantage.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

5. Objective 1
How cultural
environment affects
HRM practices?
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

6. Understanding Cultural Environments
Culture: the specific learned norms of a society
that reflect attitudes, values, and beliefs that
exist in a nation.
Attitude: thinking/feeling
Values: what do u hold important
Beliefs: accepts as true
Countries have different
 values
 morals
 customs
 political, economic, and legal systems
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

7. Understanding Cultural Environments
• Ascribed status v/s acquired status
• Performance orientation (competence
v/s seniority)
• Family based orientation (TATA,
Ambani)
• Materialism and leisure
• Assertiveness
• Hierarchy of needs
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

8. Understanding Cultural Environments
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

9. Understanding Cultural Environments
• Power distance (autocratic v/s
consultative)
• Individualism v/s collectivism
• Uncertainty avoidance
• Fatalism
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

10. Objective 2
How technological
environment affects HRM
practices
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

11. 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
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

12. The Changing World of Technology
 Recruiting
Employee selection
Training and development
Ethics and employee rights
Motivating knowledge workers
Communications
Decentralized work sites
Skill levels
A legal concern
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

13. Objective 3
What is workforce
diversity. Identify changes
in workforce composition
and how firms respond to
these changes.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

14. Workforce Diversity
HRM has moved from the melting pot
assumption to celebrating workforce diversity.
1. in 1960s legislation in favor of minority and
women opened up opportunities.
2. birthrates declined and the era of“graying of
the workforce” started
3. Multiculturalism
(immigration+ globalization)
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

15. How has the companies responded to
Workforce Diversity
1. Workforce Diversity Programs
2. Cultural audits
3. Healthy work/life balance.
They can work any time, from almost anywhere
 Global organizations– the world never sleeps
 Communication technology
 Organizations are asking to put in more hours
 Dual career couples
They want “a life” as well as a job!
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

16. OBJECTIVE 4
HRM implications of labor
shortage
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

17. The Labor Supply– why the shortage?
HR managers monitor the labor supply.
• Cyclical labor trends are difficult to predict.–
Economic changes were sudden where as
Demographic changes are predictable over time.
• Labor shortage = f (birthrates, labor participation rates)
• by 2014 2.4 million jobs will go unfiled.
• September 11, 2001 has slowed down the immigrants.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

18. Why do organizations lay off employees
during shortages?
In good times you hire employees;
in bad times, you fire them
• Downsizing: an activity in an organization aimed at creating
greater efficiency by eliminating certain jobs
• Today flatter structures and redesigning jobs is the norm.
• Rightsizing: linking employee needs to organizational strategy.
• Outsourcing: sending work “outside” the organization to be
done by individuals not employed full time with the organization.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

19. How do organizations balance labor supply?
 part-time workers– fewer than 40 hours a week
temporary workers– acts as fill ins. fixed cost
 contract workers/ subcontractors/ consultants –
typically highly skilled. Charges a fee. Fixed cost.
Economies of scale.
why contingent workforce? Quickly react to changes.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

20. Issues contingent workers create for HRM
• Introduce them policies and practices
• Make sure they are not treated as second-class
workers
• They maybe less loyal, less committed and less
motivated.
• Set scheduling options as per their needs.
• Decide whether benefits will be offered to the
contingent workforce or not
• Deal with potential conflicts between core and
contingent workers.
• See to it that core employees are not lured with
the flexibility.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

21. Objective 5
Continuous
improvement programs
and the role of HRM
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

22. Continuous Improvement Programs
• Continuous improvement: organizational
commitment to constantly improving quality of
products and services.
• W.Edward Deming. In 1950 he advised that an
organization which uses statistical control to reduce
variability should result in uniform and predictable
quantity of output .
• CIP is called kaizen in Japanese.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

23. Continuous Improvement Programs
1. Customers includes internal and external
both.
2. Quality can be improved
3. Broader definition of quality
4. Accurate measurement
5. Empowerment of employees.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

24. Continuous Improvement Programs
CIP– incremental change
Work Process Re-engineering– Radical or
quantum change.
In change programs HRM helps by
• Introducing change
• Preparing individuals for the change
• Train employees
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

25. Objective 6
The recent concept of
Employee involvement and the
role of HRM in achieving that
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

26. Employee Involvement
It’s all about employee empowerment through
involvement, which increases worker productivity
and loyalty.
Employee Involvement Concepts
delegation • participative management
work teams • goal setting • employer training
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

27. The role of HRM in Employee involvement
• Autocratic authority is far gone. Delegation is
required.
• It gives greater access to customer demands
• Teams help building and capitalizing on the
various skills and background of the
employees
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

28. The role of HRM in Employee involvement
• It requires Leadership Skills.
• Train the employees
• Not only job design is changed by it may
need to change the interpersonal skills
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

29. Objective 7
Other HRM challenges
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

30. Recession
• Recession: a continuous state of joblessness
and inflation.
• Layoffs– the morale suffers. Fear and
resentment.
• On a brighter side it is possible to attract and
hire better qualified people for jobs.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

31. Off shoring
• Off shoring: the process of moving jobs out of
one country into another country.
Why off shoring?
• Find necessary skills
• Lower labor costs
• Reduced costs of distribution
• To produce better paying jobs in the home
country
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

32. mergers
Mergers: joining ownership of two
organizations
Acquisition: the transfer of ownership and
control of one organization to another.
• Loss of jobs
• Differences in culture
• Better way to enter a new market
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins