Fundamentals of Human Resource Management, DeCenzo and Robbins

Chapter 1
Strategic Implications of a Dynamic HRM Environment

DeCenzo and Robbins

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

Understanding Cultural Environments

Todays business world is truly a global village. This term refers to the fact that businesses currently operate around the world.

Global village

MNC

Global frame work

National Culture dimensions HRM Practices must be adjusted

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

Understanding Cultural Environments

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

Understanding Cultural Environments

GLOBE Dimensions:
Assertiveness: Assertive and aggressive in social relationships. Future Orientation: planning, investing and delaying gratifications. Gender Differentiation Uncertainty Avoidance Power Distance

Fundamentals of Human Resource Management, DeCenzo and Robbins

Understanding Cultural Environments

GLOBE Dimensions:
Individualism/collectivism: How much being in group is rewarded? In-group collectivism: People want to be a part of the group Performance orientation: Acceptance of the legitimacy of hierarchy and valuing of perseverance and thrift. Humane orientation: how much altruism, generosity, fairness, friendliness, being caring (basically being good) is appreciated.

Fundamentals of Human Resource Management, DeCenzo and Robbins

Understanding Cultural Environments

Cultural Implications for HRM
Not all HRM theories and practices are universally applicable. HRM must understand varying cultural values.

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

Workforce Diversity
The Workforce Today
minorities and women have become the fastest growing segments the numbers of immigrant workers and older workers are increasing

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

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: Are there for a few hours and are rarely given any extra benefits Temporary workers: they are like part timers, but they may be employed for some time as a replacement. Contract workers: bound for some time, skilled, generally charge a high fee for their expertise

Fundamentals of Human Resource Management, DeCenzo and Robbins

Labor Supply

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

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

Fundamentals of Human Resource Management, DeCenzo and Robbins

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.

Fundamentals of Human Resource Management, DeCenzo and Robbins

Employee Involvement
Delegation having the authority to make decisions in ones 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

Fundamentals of Human Resource Management, DeCenzo and Robbins

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 organizations primary values and the ethical rules it expects organizational members to follow.

Fundamentals of Human Resource Management, DeCenzo and Robbins