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Chapter 1 Strategic Implications of a Dynamic HRM Environment Fundamentals of Human Resource Management DeCenzo and Robbins 3

 The World of Work - continues to change, but at an even more rapid pace.  HR must understand the implications of:  globalization  technology changes  workforce diversity  changing skill requirements  continuous improvement initiatives  the contingent work force  decentralized work sites  and employee involvement INTRODUCTION 4

 Today’s business world is truly a global village. This term refers to the fact that businesses currently operate around the world. UNDERSTANDING CULTURAL ENVIRONMENTS 5

 HRM must ensure that  employees can operate in the appropriate language  communications are understood by a multilingual work force  Ensure that workers can operate in cultures that differ on variables such as  status differentiation  societal uncertainty  assertiveness  individualism  HRM also must help multicultural groups work together. UNDERSTANDING CULTURAL ENVIRONMENTS 6

 GLOBE Dimensions:  Assertiveness  Future Orientation  Gender Differentiation  Uncertainty Avoidance  Power Distance  Individualism/collectivism  In-group collectivism  Performance orientation  Humane orientation  gfgjggjkhkhkhhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkhkh khkhkhkhkhkhkhkhkhkhkhkhkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk UNDERSTANDING CULTURAL ENVIRONMENTS 7

 Cultural Implications for HRM  Not all HRM theories and practices are universally applicable.  HRM must understand varying cultural values. UNDERSTANDING CULTURAL ENVIRONMENTS 8

 Has altered the way people work.  Has changed the way information is created, stored, used, and shared.  The move from agriculture to industrialization created a new group of workers – the blue-collar industrial worker.  Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs. THE CHANGING WORLD OF TECHNOLOGY 9

 Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information.  Why the emphasis on technology:  makes organizations more productive  helps them create and maintain a competitive advantage  provides better, more useful information Let us know:  Data Mining  KM management Not Rote learning Or even Common Sense THE CHANGING WORLD OF TECHNOLOGY 10

 How Technology Affects HRM Practices  Recruiting  Employee Selection  Training and Development  Ethics and Employee Rights  Motivating Knowledge Workers  Paying Employees Market Value  Communication  Decentralized Work Sites  Skill Levels  Legal Concerns THE CHANGING WORLD OF TECHNOLOGY 11

 The challenge is to make organizations more accommodating to diverse groups of people. WORKFORCE DIVERSITY 12 Aren’t we Asians, with brown skins?

 The Workforce Today  minorities and women have become the fastest growing segments. Why?  the numbers of immigrant workers and older workers are increasing. Why? WORKFORCE DIVERSITY 13

 How Diversity Affects HRM  Need to attract and maintain a diversified work force that is reflective of the diversity in the general population.  Need to foster increased sensitivity to group differences.  Must deal with the difference on:  Values  Needs  Interests  Expectations of employees Please discuss the possibility of employees’ expectation? (Also, please identify yourself before discuss.) WORKFORCE DIVERSITY 14

 What Is a Work/Life Balance ?  A balance between personal life and work  Causes of the blur between work and life  The creation of global organizations means the world never sleeps.  Communication technologies allow employees to work at home.  Organizations are asking employees to put in longer hours.  Fewer families have a single breadwinner. Discuss: lucky in game will lose in love? WORKFORCE DIVERSITY 15

 Does the world have or have-not a Shortage of Skilled Labor?  The combination of the small Gen-X population, 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.  Consider your classmates? Or your get together gatherings? More males or females or something else? LABOR SUPPLY 16

 Why Do Organizations Lay Off During Shortages?  Downsizing is part of a larger goal of balancing staff to meet changing needs.  Organizations want more flexibility to better respond to change.  This is often referred to as rightsizing, linking employee needs to organizational strategy.  Discuss: custom-made size? LABOR SUPPLY 17

 How Do Organizations Balance Labor Supply?  Organizations are increasingly using contingent workers to respond to fluctuating needs for employees.  Contingent workers include  Part-time workers  Temporary workers  Contract workers LABOR SUPPLY 18

LABOR SUPPLY 19 Discuss: baby boomer in China, India, and your own country?

 Issues Contingent Workers Create for HRM  How to attract quality temporaries  How to motivate employees who are receiving less pay and benefits  How to have them available when needed  How to quickly adapt them to the organization  How to deal with potential conflicts between core and contingent workers LABOR SUPPLY 20

 Continuous improvement - making constant efforts to provide better products and service to customers  External  Internal  Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming.  Discuss: Edwards Deming who is an American, but his QC strageg can be anchoraged in Japan? CONTINUOUS IMPROVEMENT PROGRAMS 21

 Key components of continuous improvement are :  Focus on the customer  Concern for continuous improvement  Improvement in the quality of everything  Accurate measurement  Empowerment of employees CONTINUOUS IMPROVEMENT PROGRAMS 22

 Work Process Engineering involves radical, quantum changes to entire work processes.  How HRM Assists in Work Process Engineering  Helps employees deal with the emotional aspects of conflict and change  Provides skills training  Adapts HR systems, such as compensation, benefits, and performance standards. CONTINUOUS IMPROVEMENT PROGRAMS 23

 Delegation – having the authority to make decisions in one’s job  Work teams – workers of various specializations who work together in an organization  HRM must provide training to help empower employees in their new roles.  Involvement programs can achieve:  greater productivity  increased employee loyalty and commitment EMPLOYEE INVOLVEMENT 24

 Three views of ethics:  View 1 – decisions are made on the basis of their outcomes or consequences  View 2– decisions are made with concern for respecting and protecting individual liberties and privileges  View 3– decisions are make by enforcing rules fairly and impartially  Code of ethics - a formal document that states an organization’s primary values and the ethical rules it expects organizational members to follow. A LOOK AT ETHICS 25