Fundamentals of HRM

Chapter 1Strategic Implications of a Dynamic HRM Environment

Fundamentals of Human Resource Management

Introduction

• The World of Work - continues to change, but at an even more rapid pace.

• 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

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.


• 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


• 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

• The Workforce Today – minorities and women have become the

fastest growing segments– the numbers of immigrant 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 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.

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.


• 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.


• GLOBE Dimensions:– Assertiveness– Future Orientation– Gender Differentiation– Uncertainty Avoidance– Power Distance– Individualism/collectivism– In-group collectivism– Performance orientation– Humane orientation


• Cultural Implications for HRM– Not all HRM theories and practices are

universally applicable.– HRM must understand varying cultural

values.

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.


• 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


• 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.

Fundamentals of HRM

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