Challenges in SHRM Learning outcomes: Utilization of technology in HRM Reduction of administrative cost Issues for integrating new technologies Impact of technology on organizations HR issues and challenges related to technology Work force demographic changes and diversity

IBM HRSC: – 1997, created its HR Service Center based in North Carolina. – They utilized technology to: 1. Not only improve the delivery of its HR program to its employee 2.Significantly reduced administrative costs – Utilized networking technologies to deliver HR information and service to more than 500,000 active and retired employees (“customers”) – Centers handles more than 1.5 million calls and processes more than 2.5 million transactions annually. Challenges in SHRM

IBM HRSC:  The Center Services over 20 separate IBM business Units in areas such as:  Benefits  Retirement plan  Compensation  Employee suggestions  Staffing  Job posting  Orientation  Performance management  EEO compliance  Employee separation  Skills development These specialist handle more complex issues pertaining to particular HR programs (i.e compensation, tuition, reimbursement, short term foreign services assignment) IBM’s strategy to improve employee service and reduce the costs of human resource administration has led to impressive results. This center reduced the cost of providing HR services by 40 percent. Challenges in SHRM

Organizations face many challenges in traditional approaches to manage people and adopting an investment perspective to HR. The four major arenas of change are: 1.Technological advancement 2.Increasing attention to ethical behavior 3.Demographics and diversity 4.Globalization Challenges in SHRM

Impact of Technology Challenges in SHRM Consideration of adopting a New Technology Strategic issues Impact on productivity Impact on quality of output Impact on timing/delivery of output Cost of equipment/technology Adequacy of current facilities New Market opportunities afforded Strategic HR Issues Necessary expansion/contraction of work force Training needed to utilize new technology Costs of hiring, severance, training Effective management of change Impact on work group dynamics

Challenges in SHRM Technology: –Most significant trends affecting HR and people in organization’s –Is the process of the organization in which it takes input and transform it in output it includes: –Tools –Machinery –Equipment –Work procedure –Employee knowledge –Skills of the employees There is high competitive pressure on organization to make constant advancements in technology. Financial considerations of whether to adopt a new technology must be balanced with a number of strategic issues and, more specifically, a number of strategic HR Issues Upgrade existing employees skills and need to change work habits of employees.

Impact of Technology on organization (how the work is changing) Challenges in SHRM Requires changes in skills and work habits of employees Elimination of some lower-level positions and layers of management Less hierarchy, more collaboration

Challenges in SHRM Technological changes: – Creating demand for workers with more sophisticated training & skills – A significant number of new workforce entrants have limited technical skills – Little or no training – (services industry situation) These advancement resulted in: 1.Elimination lower level positions held by employees; 2.Reduced employee headcounts 3.Remaining employees have high level of training and skills 4.More technical trained employees required 5.Organizational structure changes to fewer hierarchy levels 6.Collaborative teamwork 7.Growing trend for TQM

Challenges of SHRM Technology: 1.Created more flexible organization structure 2.Dynamic organization structure that facilitates changes and adaption to changes in the organization’s environment 3.Alternative structures take the form of unbundled corporations, autonomous grouping or subsidiaries or smaller, streamlined units designed to be more responsive to changing customer needs and competitive pressures

HR issues & challenges related to technology Three new areas of concern for HR and organization 1.Telecommuting 2.Employee Surveillance & Monitoring 3.E-HR

Telecommuting – The process by which employee work from home, – Advances taking place in information processing and telecommunication technologies are the key factors – Its an agreement between employee and organization – It involves management system that allows employees to how they fulfill job responsibilities. HR issues & challenges related to technology

Telecommuting – In US a significant workforce has adopted technology to work for organization – 3.4 million in 1990 to 19.6 million in 2000 – Two-third of Fortune 100 companies currently have telecommuting programs; remaining are planning to do so HR issues & challenges related to technology

Telecommuting Benefits: – Environmental regulations (Clean Air Act) – Annually they are saving 9.5 million gallons of gasoline – 94 million fewer tons of pollutants – Retention aid as more flexible working condition – Employees personal reasons of their location – It also helps organization in flexible recruitment and allow them to hire from broader prospective applicant pool – Significant saving in cost – Increased productivity HR issues & challenges related to technology

Telecommuting HR Issues: (1) – Measuring performance – Monitoring progress – Performance and accountability standards will be different – No face to face contact HP and Cisco Systems have successfully implemented objectives-based performance management programs HR issues & challenges related to technology

Telecommuting HR Issues: (2) – Which employees will be offered participation in telecommuting program – Attention also must be paid to individual employee characteristics – Telecommuting generally requires employees to have strong organizational and time management and self motivated HR issues & challenges related to technology

Telecommuting HR Issues: (3) – Purchasing equipment for employees home office – Liabilities for injuries; bcz home workspace is considered an extension of the company Telecommuting HR Issues: (4) – May be managerial un-comfort HR issues & challenges related to technology

Employees Surveillance & Monitoring – Technology has enhanced employee’s abilities to do their jobs – Data availability on internet allows more comprehensive and faster data collection when addressing issues and problems at work – 90% employees admitted to visit other sites, chat rooms, gaming sties and banking, bill paying shopping. HR issues & challenges related to technology

Employees Surveillance & Monitoring – Increasing number of employers have implemented electronic monitoring of their employees, using SW to track employee internet use – Monitor internet use as well as s, computer files, voice mail and telephone usage – May impact loyalty and morale of employee – Electronic Communication Privacy Act HR issues & challenges related to technology

E-HR – Technological advancements have also provided HR with an incredible opportunities to deliver many of its transactional types of services online, freeing HR staff to work on more strategic issues. – Payroll, employee benefits, scheduling, recruitment, training and career development are just some of the areas that are being delivered in a self service format to the employees HR issues & challenges related to technology

E-HR – Using E-HR to benefit both employees as well as organization, – Range of HR activities that are being delivered electronically – Time warner cable, Inc., in Houston has more then 1,660 employees, spread out over 27 locations. Majority works on great distance from HR office or staff. HR issues & challenges related to technology

E-HR – In 2003; the city of Dallas stopped issuing paychecks to its employees – Pay should be through direct deposits, paper paychecks was expensive and time consuming – Electronic pay resulted in saving of 15,000 $ annual – airlines using internet for customer services – GM is an example HR issues & challenges related to technology

E-HR (GM example) – World largest manufacturer of automobiles – Consumer websites – B2B portals – E-HR services through Employee Service Center – GM has rolled out its ESC to its international divisions and sees the project as continuous, with an updated re-release of the site planed every 6 months. HR issues & challenges related to technology

Ethical behavior of organizations are under discussion that it plays an role for success or failure. It may relate to: – Financial reporting or disclosure – How employees are treated – Employers practices and policies Reputation of organization is dependent on Ethical behavior specially in deciding to accept an offer of employment. Ethical Behavior

A Survey: – 65% executives reported that they would thoroughly investigate the culture and value system of any perspective employer. – 40% executives had resigned from an organization at least once because of the employers unethical behavior Senior management has to consider different dimensions of the employment relationship where ethical decision need to be made. Ethical Behavior

Universal definition of Ethics? They are subject to personal values and convictions Ethical behavior is subjectively assessed as right or wrong, appropriate or inappropriate, and in some cases moral or immoral 1.Employee behavior 2.Employer behavior Ethical Behavior

1.Employee off-duty behavior: – Its an area of ethical concern for HR is employee off- duty behavior. – Winn-Dixie Stores situation Truck driver termination 20 year history and performance He was cross-dresser in private life Company image ??? Services terminated Court case: He was terminated for reason that had nothing to do with job or performance. No law that protect employee off-duty behavior Employee Ethical Behavior

Employer also faces dilemmas about off-duty behavior – Tobacco – Alcohol – Drug use – Political and religious Employer Ethical Behavior

Ownership of work is another important area of ethical consideration Good deal of employee work in a knowledge economy involves the application of knowledge and skills in the development of new and improves products, services, and processes, conflicts have arisen concerning IP rights. Fortune 1000 organizations incur losses more than 45$ billion annually from trade secret theft. Employer Ethical Behavior

Fairness of non-compete clause: – Employees may start work for a competitor or starting his/her own business – Accountants, consultants, any professionals decide to start their own business, do they have a right to bring client with them and/or recruit former clients – Legal contracts? – Balance between job and own business – Sarbanes-Oxley Act was passed to eliminate both deception in accounting and management practices by increasing government oversight of financial reporting and holding senior executives more directly responsible for violations. Employer Ethical Behavior

Sarbanes-Oxley: – The protection it provides to “whistleblower” employees who provide information and/or assistance to investigators that assists in the review of potential violations of federal laws related to fraud against shareholders. – The protection will be provided only when information is provided to one of three sources: A federal regulatory or law enforcement agency Any member or committee of congress A person with supervisory authority over the employee who has the authority to investigate such allegations if reported to media or HR manager, no protection will be provided Ethical Behavior

Increased concern for ethical behavior and accountability Organization’s best interest is to produce code of Ethics Code of Ethical and Professional Standards in HRM developed by society for HRM for its members and profession. Executives can develop in-house codes Ethical Behavior

Demographic changes and diversity is creating number of challenges for HRM. These are critical to the success of organization (public and private) Some employers have commitment to understanding and appreciate diversity, other implement diversity initiatives simply to ensure compliance with federal, state, and local employment laws. Workforce Demographic changes & Diversity

Discrimination based on: – Race – Color – Religion – Gender – National origin – Age discrimination – Disability act Workforce Demographic changes & Diversity

Advances in health care allows: – Live longer, remain healthier longer, remain in workplace longer – Growing % in aged people; 13% to 20% – Organizations clearly benefit through the knowledge and experience of older workforce Graying of the workforce can create number of challenges – Older worker resist changes – New tools, utilizing new technology – Increased health care cost – Productivity is related to new technology Generational diversity

– Older worker can be: More productive Loyal to organization Significant knowledge Key contact in professional network Employers develop incentive programs for early retirement and hire retirees as consultants They want to take advantage of their skills, experience and links in the industry Generational diversity

Baby boomers, in their mid career As one moves up in hierarchy, there are fewer and fewer positions are available and competition in middle and high level rank – Here technology plays an important role, many senior and middle level management positions have been eliminated because of flatter organization and increased use of IT. Generational diversity

Baby busters, born during declining birth rate Lower expectations relative to the pace of their careers. Baby boomers of the previous generation have essentially created a bottleneck in the management hierarchy that busters find themselves behind. Availability of workforce in one era as compare to other makes difference in wages. Generational diversity

Individual dimensions of diversity Work related Motivation Personality Work Ethic Experience Attitudes Job responsibility Employment status Personal RaceResidence Hobbies Family status Marital status Ethnicity Age Religion Gender Sexual orientation Physical ability

1.Determine why diversity is important for the organization 2.Articulate how diversity relates to the mission and strategic objectives of the organization 3.Define diversity and determine how inclusive its effort will be 4.Make a decision as to whether special efforts should be extended to attract a diverse workforce 5.Assess how existing employees, customers, and other constituencies feel about diversity 6.Determine specific types of diversity initiatives will be undertaken Generational diversity