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: dogarsehrish@gmail.comFB page: https://www.facebook.com/Sehrish

introduction

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

• why study the Environment?

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

HRM Environment

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

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

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?

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

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

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

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

Understanding Cultural Environments

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

Understanding Cultural Environments

• Power distance (autocratic v/s consultative)

• Individualism v/s collectivism

• Uncertainty avoidance

• Fatalism

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

Understanding Cultural Environments

Objective 2

How technological environment affects HRM

practices

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

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

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

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

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.

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

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

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)

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

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

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

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

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.

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

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.

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

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.

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

Objective 5

Continuous improvement programs

and the role of HRM

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

• 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.

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

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.

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

Continuous Improvement Programs

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

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

Continuous Improvement Programs

Objective 6

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

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

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

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

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

• It requires Leadership Skills.

• Train the employees

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

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

The role of HRM in Employee involvement

Objective 7

Other HRM challenges

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

• 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.

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

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

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

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

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