Chapter 1Strategic Implications of a Dynamic HRM Environment

Fundamentals of Human Resource ManagementEighth Edition

DeCenzo and Robbins

Introduction The World of Work - continues to change, but at

an even more rapid pace(speed). 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

Understanding Cultural Environments 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 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 GLOBE Dimensions:

Assertiveness Future Orientation Gender Differentiation Uncertainty Avoidance Power Distance Individualism/collectivism In-group collectivism Performance orientation Humane orientation

Understanding Cultural Environments

Cultural Implications for HRM Not all HRM theories and practices are

universally applicable. HRM must understand varying cultural

values.

The Changing World of Technology 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 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

The Changing World of Technology 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

Workforce Diversity

The challenge is to make organizations more accommodating to diverse groups of people.

Workforce Diversity Diversity is the existence of many

unique individuals in the workplace, marketplace and community. This includes men and women from different nations, cultures, ethnic groups, generations, backgrounds, skills, abilities and all the other unique differences that make each of us who we are.

Workforce Diversity

The Workforce Today minorities and women have become the

fastest growing segments the numbers of immigrant(migrators)

workers and older workers are increasing

Workforce Diversity 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(further) increased sensitivity to group differences.

Must deal with the different Values Needs Interests Expectations of employees

Workforce Diversity

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.

Labor Supply

Do We Have 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.

Labor Supply

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.

Labor Supply

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

Labor Supply 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

Continuous Improvement Programs

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.

Continuous Improvement Programs

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 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.

Employee Involvement 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

A Look at Ethics Three views of ethics:

Utilitarian View – decisions are made on the basis of their outcomes or consequences

Rights View – decisions are made with concern for respecting and protecting individual liberties and privileges

Theory of Justice View – 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.