dynamic enviroment of hrm

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

Chapter 02The Dynamic Environment of HRM

Sehrish Imdad DogarBBA(H) University of SindhMBA SZABISTemail i.d: [email protected] page: https://www.facebook.com/Sehrish

introduction

• Business Environment: encompasses all those factors that affect a company's operations.

• why study the Environment?


HRM Environment



Introduction

Strong employees = competitive advantage.

HRM is a subset of management. It has five main goals:

Goalsof

HRM

hireemployees

attractemployees

retainemployees

motivateemployees

trainemployees

Objective 1

How cultural environment affects

HRM practices?



Understanding Cultural Environments

Countries have different values morals customs political, economic, and legal systems

Culture: the specific learned norms of a society that reflect attitudes, values, and beliefs that exist in a nation.

Attitude: thinking/feelingValues: what do u hold importantBeliefs: accepts as true

• Ascribed status v/s acquired status

• Performance orientation (competence v/s seniority)

• Family based orientation (TATA, Ambani)

• Materialism and leisure

• Assertiveness

• Hierarchy of needs



• Power distance (autocratic v/s consultative)

• Individualism v/s collectivism

• Uncertainty avoidance

• Fatalism



Objective 2

How technological environment affects HRM

practices



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


The Changing World of Technology

RecruitingEmployee selectionTraining and developmentEthics and employee rightsMotivating knowledge workersCommunicationsDecentralized work sitesSkill levelsA legal concern

Objective 3

What is workforce diversity. Identify changes in workforce composition and how firms respond to

these changes.



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)


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!

OBJECTIVE 4

HRM implications of labor shortage



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.

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.


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.


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.


Objective 5

Continuous improvement programs

and the role of HRM


• 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.


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.



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



Objective 6

The recent concept of Employee involvement and the role of HRM in achieving that



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

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


• It requires Leadership Skills.

• Train the employees

• Not only job design is changed by it may need to change the interpersonal skills


The role of HRM in Employee involvement

Objective 7

Other HRM challenges


• 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.


Recession

• 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


Off shoring

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


dynamic enviroment of hrm

Recruiting & HR

subset of management

labor supply

labor shortage

contingent workforce

workforce diversityhrm

economic changes

cultural environmentsculture

cultural audits3