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- 1. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 1 The Dynamic Environment of Human Resource Management (HRM)
- 2. Learning Outcomes After reading this chapter, you will be able to 1. Discuss how cultural environments affect human resource management (HRM) 2. Describe how technology is changing HRM. 3. Identify significant changes that have occurred in workforce composition. 4. Describe the HRM implications of a labor shortage. 5. Describe how changing skill requirements affect HRM. 6. Explain why organizational members focus on quality and continuous improvements. 7. Describe work process engineering and its implications for HRM. 8. Identify who makes up the contingent workforce and the HRM implications. 9. Define employee involvement and list its critical components. 10.Explain the importance of ethics in an organization. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
- 3. What do you expect your role would be as being human resource manager? Activity
- 4. Human Resource Management Human: The skilled workforce in the organization. Resource: refer to limited availability or scarce. Management: refer to maximum or proper utilization and make best use of limited and a scare resource.
- 5. Concept of HRM HRM is concerned with the human beings in an organization. “The management of man” is a very important and challenging job because of the dynamic nature of the people. No two people are similar in mental abilities, tacticians, sentiments, and behaviors; they differ widely also as a group and are subject to many varied influences. People are responsive, they feel, think and act therefore they can not be operated like a machine or shifted and altered like template in a room layout. They therefore need a tactful handing by management personnel.”
- 6. Concept of HRM HRM is the process of managing people of an organization with a human approach. Human resources approach to manpower enables the manager to view the people as an important resource. It is the approach through which organization can utilize the manpower not only for the benefits of the organization but for the growth, development and self satisfaction of the concerned people. Thus, HRM is a system that focuses on human resources development on one hand and effective management of people on the other hand so that people will enjoy human dignity in their employment
- 7. Human Resource Management - Definition What is HRM? In simple words, Human resource management is management function that helps manager to recruit, select, train and develop organization members. Or HRM is a process of making the efficient and effective use of human resources so that the set goals are achieved
- 8. HRM has a dual nature: Importance of HRM supports the organization’s strategy represents and advocates for the employees Strategic HRM provides a clear connection between the organization’s goals and the activities of employees.
- 9. HRM plays a pivotal role in aligning the workforce with the organization's strategic goals and objectives. This strategic aspect of HRM involves: •Strategic Planning: HR professionals work closely with top management to identify the human capital needs required to achieve the organization's strategic objectives. •Talent Acquisition and Development: HR is responsible for recruiting, selecting, and developing employees with the skills and competencies needed to execute the organization's strategic plans. •Performance Management: HR establishes performance management systems that evaluate employee performance in the context of organizational goals, providing feedback and making adjustments as needed. •Change Management: During periods of strategic change or transformation, HR plays a critical role in managing the transition, communicating changes to employees, and ensuring their buy-in and support. •Organizational Culture: HR helps shape and nurture the organizational culture that aligns with the strategic direction, fostering values, behaviors, and norms that support the strategy. Supports the Organization's Strategy:
- 10. In addition to its strategic functions, HRM is also responsible for advocating for employees' rights, well-being, and interests within the organization. This aspect includes: •Employee Relations: HR manages employee relations, addressing concerns, conflicts, and grievances, and promoting a healthy work environment. •Employee Benefits and Compensation: HR is responsible for designing and administering fair compensation and benefits packages to attract and retain talent. •Compliance and Legal Issues: HR ensures the organization complies with labor laws, regulations, and ethical standards, safeguarding employee rights. •Employee Development and Well-being: HR supports employee development through training and career advancement opportunities and fosters a work environment that promotes employee well-being and work-life balance. •Advocacy: HR professionals often act as advocates for employees, representing their concerns to management and ensuring that employees are treated fairly Represents and Advocates for the Employees:
- 11. The HRM Functions HRM has four basic functions: In other words, hiring people, preparing them, stimulating them, and keeping them. staffing training and development motivation Maintenance Retention
- 12. The HRM Functions staffing strategic human resource planning: match prospects’ skills to the company’s strategy needs recruiting: use accurate job descriptions to obtain an appropriate pool of applicants selection: thin out pool of applicants to find the best choice Staffing has fostered the most change in HR departments during the past 30 years. How?
- 13. 1.Technology Integration: HR departments now use advanced applicant tracking systems (ATS), artificial intelligence (AI), and machine learning algorithms to streamline recruitment, improve candidate sourcing, and enhance the overall hiring process. 2.Online Recruitment: The rise of the internet and social media platforms has transformed the way companies find and attract talent. Online job boards, professional networking sites like LinkedIn, and social media recruiting have become essential tools for HR professionals. 3.Diversity and Inclusion: There has been a growing emphasis on diversity and inclusion in staffing. Organizations are placing greater importance on creating diverse workforces, and HR departments are implementing strategies to attract and retain employees from a variety of backgrounds. 4.Remote Work and Virtual Teams: The COVID-19 pandemic accelerated the adoption of remote work and virtual teams, necessitating changes in staffing practices to support remote hiring, onboarding, and management of distributed teams. 5.Gig Economy and Freelancers: The rise of the gig economy has prompted HR departments to adapt to hiring and managing freelancers, contractors, and temporary workers Some of the key changes and developments in staffing
- 14. The HRM Functions training and development orientation: teach the rules, regulations, goals, and culture of the company employee training: help employees acquire better skills for the job employee development: prepare employee for future position(s) in the company organizational development: help employees adapt to the company’s changing strategic directions career development: provide necessary information and assessment in helping employees realize career goals The goal is to have competent, adapted employees.
- 15. motivation theories and job design: environment and well-constructed jobs factor heavily in employee performance performance appraisals: standards for each employee; must provide feedback rewards and compensation: must be link between compensation and performance employee benefits: should coordinate with a pay-for-performance plan The HRM Functions
- 16. The HRM Functions Maintenance Retention safety and health: caring for employees’ well-being has a big effect on their commitment communications and employee relations: keep employees well-informed of company doings Job loyalty has declined over the past decade. Why?
- 17. 1.Changing Workforce Dynamics: The nature of work has changed with the rise of the gig economy and freelance work. More people are engaged in temporary or part-time employment, which naturally leads to less job loyalty. 2.Economic Uncertainty: The 2008 financial crisis and subsequent economic challenges in various parts of the world have created a sense of job insecurity. Employees may be less willing to commit to a single employer when economic stability is uncertain. 3.Technology and Automation: Automation and advancements in technology have led to job displacement in certain industries. Workers in these fields may feel less loyalty to employers who are rapidly adopting automation and outsourcing. 4.Globalization: The globalized job market has made it easier for employees to explore opportunities outside of their current employer's region or country. This increased mobility can reduce job loyalty. 5.Millennial and Gen Z Values: Younger generations, such as Millennials and Gen Z, tend to prioritize factors like personal development, work-life balance, and social impact in their careers. They are more likely to change jobs in pursuit of these values. Factors that lead to less job loyalty
- 18. The Dynamic Environment of HRM As part of an organization, HRM must be prepared to deal with the effects of changes. This means understanding the implications of globalization, technology changes, workforce diversity, labor shortages, changing skill requirements, continuous improvement initiatives, the contingent workforce, decentralized work sites, company mergers, offshore sourcing of goods and services, and employee involvement. Let’s look at how these changes are affecting HRM goals and practices in organizations functioning in a global environment.
- 19. Organizations are no longer constrained by national borders in producing goods and services. BMW, a German-owned firm, builds cars in South Carolina. Similarly, McDonald’s sells hamburgers in China, and General Electric expects to receive 60 percent of its revenue growth from developing countries in the next ten years. Toyota makes cars in Kentucky. Mercedes sport utility vehicles are made in Alabama. Quintessentially American company John Deere makes farm equipment in Illinois to ship to Russia, makes equipment in China to ship to the Middle East, and its tractors made in Germany and India go to the United States. Tractors made in the United States are assembled with parts received from twelve countries and are shipped to over 110 countries. These examples illustrate the extent of globalization on manufacturing and labor. To be effective in this boundless world, organizational members and HRM professionals need to adapt to cultures, systems, and techniques different from their own.
- 20. HRM helps employees understand other countries’ political and economic conditions. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Understanding Cultural Environments HRM operates in a global business environment. Countries have different values morals customs political, economic, and legal systems
- 21. Countries differ greatly on the emphasis they place on the individual versus the collective. Organizations that plan to enter the global environment need to do their homework to understand the culture and workers. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
- 22. Countries That Value Individualism and Acquiring Things United States Great Britain Australia Canada Netherlands New Zealand Countries That Value Collectivism, Relationships, and Concern for Others Japan Colombia Pakistan Singapore Venezuela Philippines Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
- 23. Understanding Cultural Environments Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins TOP 10 LEAST-FREE COUNTRIES 1. North Korea 2. Zimbabwe 3. Cuba 4. Burma 5. Eritrea 6. Venezuela 7. Dem. Rep. of Congo 8. Comoros 9. Libya 10. Sao Tome & Principe The Heritage Foundation’s Index of Economic Freedom rates 183 countries on openness to trade, business, investment, and property rights. The U.S. was #6 in 2009. North Korea is the most repressed. 2009 Country Rankings, see www.heritage.org/index/Ranking.aspx TOP 10 FREE COUNTRIES 1. Hong Kong 2. Singapore 3. Australia 4. Ireland 5. New Zealand 6. United States 7. Canada 8. Denmark 9. Switzerland 10. United Kingdom
- 24. The Changing World of Technology Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins HRM operates in a technologically changing environment. Thomas Friedman: Globalization 1.0 (1492-1800) Driven by transportation Globalization 2.0 (1800 -2000) Driven by communication Globalization 3.0 (2000 -????) Driven by technology 3.0 fueled by instant communication and the Internet. Globalization 2.0 (1800 -2000) Driven by communication Globalization 3.0 (2000 -????) Driven by technology Globalization 1.0 (1492-1800) Driven by transportation Globalization 2.0 (1800 -2000) Driven by communication Globalization 3.0 (2000 -????) Driven by technology Globalization 1.0 (1492-1800) Driven by transportation Globalization 2.0 (1800 -2000) Driven by communication Globalization 1.0 (1492-1800) Driven by transportation Globalization 2.0 (1800 -2000) Driven by communication Globalization 3.0 (2000 -????) Driven by technology
- 25. 1. Learning as a Way of Being by Peter B. Vaill 2. Thinking for a Living: How to Get Better Performance and Results from Knowledge Workers by Thomas H. Davenport 3. Information Anxiety 2 by Richard S. Wurman Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins The Changing World of Technology The IT field is growing. Knowledge workers focus on the acquisition and application of information for decision making. Some books for aspiring knowledge workers:
- 26. The Changing World of Technology Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins HRM information systems help to facilitate HR plans make decisions faster clearly define jobs evaluate performance provide desirable, cost-effective benefits
- 27. The Changing World of Technology Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins HR managers use technology to: recruit, hire, and train employees motivate and monitor workers research fair compensation packages communicate throughout the organization evaluate decentralized employees’ performance
- 29. Workforce Diversity Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins HRM has moved from the melting pot assumption to celebrating workforce diversity. The U.S. Dept. of the Interior’s Web site www.doi.gov/diversity/8major2.htm overviews major U.S. civil rights legislation. The Civil Rights Acts of 1964 and 1991 Equal Pay Act of 1963 Americans with Disabilities Act of 1990 The Age Discrimination in Employment Act The Rehabilitation Act
- 30. Workforce Diversity Today’s workers want a healthy work/life balance. They can work any time, from almost anywhere work more than 40 hours per week are part of a dual-income household #1 reason for leaving a company: lack of work schedule flexibility Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
- 31. The Labor Supply Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins HR managers monitor the labor supply. Trend is to rightsize: fit company goals to workforce numbers. For agility, companies build a contingent workforce of part-time workers temporary workers contract workers
- 32. The Labor Supply
- 33. Continuous Improvement Programs HR managers help workers adapt to continuous improvement changes through retraining, providing answers, and monitoring expectations. continuous improveme nt components Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins empowerment of employees accurate measurement concern for total quality focus on custo mer concern for continuous improvement
- 35. Employee Involvement Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins It’s all about employee empowerment through involvement, which increases worker productivity and loyalty. See http://workhelp.org/joomla/content/view/284/ for managerial tips on empowering employees. Employee Involvement Concepts delegation • participative management work teams • goal setting • employer training
- 36. Other HRM Challenges Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Challenges for HRM: The recession has brought layoffs and low morale. Increased offshoring means jobs can move overseas, even HR. Today’s spate of mergers and acquisitions increase HR’s role.
- 37. A Look at Ethics Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Code of ethics: a formal statement of an organization’s primary values and the ethical rules it expects members to follow. HR managers must take part in enforcing ethics rules. Sarbanes-Oxley Act of 2002 Requires proper financial recordkeeping for public companies