1. Chapter 1 Understanding Human Resource Management in the Context of Organizations and Their Environments Susan E. Jackson and Randall S. Schuler

6. Internal Contexts Technology Processes for transforming inputs into outputs Routine Interdependence pooled sequential reciprocal Firms using technology: –selective hiring –compensation –training –appraisals for development and compensation –externally equitable compensation

7. Internal Contexts Structure Allocate tasks and responsibilities Formal reporting relationships Functional: –accounting – management – marketing –finance Product: A, B, C and D Geographical: NE, NW, SE and SW

8. Internal Contexts Size Larger organizations-more sophisticated and socially responsive HR activities due to visibility and desire to gain legitimacy Economies of scale are needed to justify sophisticated HRM system implementation Larger organization characteristics –due process –employee involvement –less temporary staff –sophisticated staffing, training and development –developed internal labor markets –higher pay –larger percent of pay linked to bonuses/incentives –drug testing

9. Internal Contexts Life Cycle Stage Changing managerial priorities in rapidly-growing firms, recruitment and selection are most important aspect of HRM in mature firms there is concern for a broad array of activities stages constrain and shape HRM wise choices lead to good fit between stage and HRM

10. Internal Contexts Strategy Prospector-first mover; concerned with recruitment and performance appraisal in evaluation Analyzer-imitator Defender-hold their own; performance appraisal development and develop current employees Reactor-last mover Low cost Differentiation Focus

11. External Contexts Legal, Social and Political Local, state and federal laws Social issues Politics vary

12. External Contexts Unionization Higher wages Better working conditions and safety Decline in unionization Deregulation Global economy Service economy Some unions are working cooperatively with management

13. External Contexts Labor Market Conditions Unemployment declines –wages and costs increase –profits and investments decline –expensive/intensive recruitment Unemployment rises –absenteeism and turnover decrease –link between dissatisfaction and turnover weakens Diversity –gender –age –ethnicity

14. External Contexts Industry Characteristics Issues for concern vary across industries

15. External Contexts National Culture Individualism/collectivism Masculinity/femininity Uncertainty avoidance Power distance See Figure 1.1 p. 18