Lecture 1 HR Trends
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St. Augustine's University**We aren't endorsed by this school
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BUS 445
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Management
Date
Dec 19, 2024
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40
Uploaded by ChiefClover8516
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinTRENDS IN HUMAN RESOURCE MANAGEMENTPART TWO FROM NOE TEXT (CHPT. 2)
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-2NEED TO KNOW1.Labour force composition trends and technological developments how they affect HRM.2.Areas HRM can support the goals of creating a high-performance work system and expanding internationally. 3.Employee empowerment and its role. 4.Ways HR professionals can support organizational strategies for quality, growth, and efficiency. 5.How the nature of employment relationship is changing. 6.How the need for flexibility affects HRM.
2-3The Labour ForceAn organization’s workersIts employeesPeople who have contracts to work at the organizationInternal labour force has been drawn from the external labour market.•Individuals who are actively seeking employment.•Number and kinds of people in external labour market determine kinds of human resources available to an organization.Internal Labour ForceExternal Labour Market
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-4Change in the Labour Force
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-5Generations
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-6FIGURE 2.1: AGE DISTRIBUTION OF U.S LABOR FORCE, 2010 AND 2020
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-7HRM Implications of an Aging Workforce•HR professionals spend much time on concerns related to retirement planning, retraining older workers, and motivating workers whose careers have reached a plateau.•Organizations struggle to control rising costs of health care and other benefits.•Managers will supervise employees much older than themselves.•Organizations must find ways to attract, retain, and prepare youth labor force.
2-8•As more of the workforce reaches retirement age, some companies have set up mentoring programmes between older and younger workers so that knowledge is not lost but passed on.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-9Figure 2.2: Projected Racial/Ethnic Makeup of the U.S. Workforce, 2018
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-10Figure 2.3: HRM Practices That Support Diversity Management
2-11Skill Deficiencies of the Workforce•Employers are looking for skills:mathematicalverbalinterpersonalcomputeremployees.•Gap between needed and available skills has decreased companies ability to compete.•Sometimes lack the capacity to upgrade technology, reorganize work, and empower employees.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-12High-Performance Work Systems
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-13Table 2.2 HRM Applications for Social Networking
2-14Top 10 Occupations for Job Growth
2-15Knowledge WorkersProfession•Employees whose contribution to the organization is specialized knowledge of:•Customers•Processes•Professionmanagement•They are especially needed for jobs in:•health services•business services•social services•engineering•management
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-16Test Your Knowledge•Ensuring that knowledge workers will share information and store it so that it is easily retrieved by others is the concern of which of the following HR activities. A.TurnoverB.Employee EmpowermentC.Knowledge ManagementD.Employee Selection
2-17Employee Empowermentcustomer service.Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.turnoverFull involvement in one’s work and commitment to one’s job and company.This is associated with:higher productivitybetter customer servicelower employee turnoverEmployee EmpowermentEmployee Engagement
2-18Teamworka service.•The assignment of work to groups of employees with various skills who interact to assemble a product or provide a service.•Work teams often assume many of the activities traditionally reserved for managers:•selecting new team members•scheduling work•coordinating work with customers and other units of the organization
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-19Test Your Knowledge•Sharon is a very smart and conscientious worker. Lately, she has felt that her ideas were disregarded and she was denied autonomy in completing her work. This situation is probably caused by a lack of A.Employee EmpowermentB.Knowledge ManagementC.TurnoverD.Teamwork
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-20Figure 2.4: Strategic Business Issues Affecting HRM
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-21Total Quality Management (TQM)
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-22TQM Core Values•Methods and processes are designed to meet the needs of internal and external customers.•Every employee receives training in quality.•Quality is designed into a product or service so that errors are prevented from occurring.•Organization promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs.•Managers measure progress with feedback based on data.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-23Figure 2.5: Number of Employees Laid Off During the Past Decade
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-24Mergers and Acquisitions.HRM should have a significant role in carrying out a merger or acquisition.Differences between businesses involved in the deal make conflict inevitable.Training should include conflict resolution skills.There is a need to sort out differences in the two companies’ practices regarding compensation, performance appraisal, and other HR systems.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-25ReengineeringA complete review of the organization’s major work processes to make them more efficient and able to deliver higher quality, including HRM.Reengineering affects HRM in two ways:How HR accomplishes its goals may change.Change requires HR to help design and implement change so that alll employees will be committed to the reengineered organization’s success.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-26OutsourcingHR helps with a transition to outsourcing.Outsourcing – the practice of having another company (a vendor, third-party provider, or consultant) provide services.•Outsourcing gives the company access to in-depth expertise and is often more economical as well.•HR helps with a transition to outsourcing.
2-27Expanding into Global Marketsavailable.•Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.Immigration.•Hiring at home may may involve selection of employees from other countries.•Immigration.OffshoringInternationalLabor Pool
2-28Figure 2.6: Where Immigrants to U.S. Came from in 2010
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-29HR Information System (HRIS)A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization’s human resources. HRIS can:support strategic decision makinghelp the organization avoid lawsuitsprovide data for evaluating programs or policiessupport day-to-day HR decisions
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-30Table 2.1: New Technologies Influencing HRM
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-31Electronic Human Resource Management (e-HRM)
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-32CHANGE IN THE EMPLOYMENT RELATIONSHIPThe employment relationship takes the form of a “psychological contract”that describes what employees and employers expect from the employment relationship.In the traditional version, organizations expected employees to contribute time, effort, skills, abilities, and loyalty in exchange for job security and opportunities for promotion.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-33CHANGE IN EMPLOYMENT RELATIONSHIP
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-34Nature of the Employment Relationship is Changing •Organizations are requiring top performance and longer work hours but cannot provide job security.•Instead, employees are looking for:–flexible work schedules–comfortable working conditions–greater autonomy–opportunities for training and development–performance-related financial incentives•This requires planning for flexible staffing levels.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-35Flexibility: A Family-Friendly Work Arrangement
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-36Need for Flexibility Affects HRMOrganizations seek flexibility in staffing levels through alternatives to traditional employment relationship:outsourcing, temporary, and contract workersflexible work schedules – including shortened work weeksallowing employees to adjust work hours to meet personal and family needsmoving employees to different jobs to meet changes in demand
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-37
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-38Summarytechnical system.•An organization’s internal labour force comes from its external labour market•U.S. labour market is aging and becoming more racially and ethnically diverse.•Organizations must recruit from a diverse population, establish bias-free HR systems, and help employees understand and appreciate cultural differences.•HRM can help organizations find and keep the best possible fit between their social system and technical system.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-39Summary (continued)interpersonal skills.•Job design and appropriate systems for assessment and rewards have a central role in supporting employee empowerment and teamwork.•Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.•HRM must design jobs to give employees latitude for decision-making and interpersonal skills.
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-40Summary (continued)culture and business practices.HR professionals should be familiar with the organization’s strategy and may even play a role in developing the strategy.Specific HR practices vary according to type of strategy.Organizations with international operations hire employees in foreign countries where they operate, so they need knowledge of differences in culture and business practices.