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Chapter One
HRM in a Changing Environment
Lectured by Mr. Samath Houy
Tel: 012 211 345
Email: [email protected]
Objectives
After completing this chapter, you will be able to:
Discuss how cultural environments affect HRM practices
Identify the organizational assets and core competencies in HR areas
Define human capital and identify the seven categories of HR activities
Describe how technology is changing HRM
Describe how the major roles of HR management are being transformed
Provide an overview of six challenges facing HR today
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Strong employees
= Competitive
advantage
HRM is a subset of management.
It has five main goals:
Goalsof
HRM
hireemployees
attractemployees
retainemployees
motivateemployees
trainemployees
Introduction
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HRM helps employees understand other countries’ political and economic conditions.
Understanding Cultural Environments
HRM operates in a global business environment.
Countries have different
values
morals
customs
political, economic, and legal systems
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Human resource (HR) management
Designing management
systems to ensure that
human talent is used
effectively and
efficiently to accomplish
organizational goals.
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Types of Organizational Assets
Assets
Physical Financial Intangible Human
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Core Competencies in Possible HR Areas
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Human Capital in Organizations
Human Capital
The collective value of the capabilities, knowledge,
skills, life experiences, and motivation of an
organizational workforce.
Core Competency
A unique capability that creates high value and
differentiates an organization from its
competition.
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HR Management Functions
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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 benefits10
The Changing World of Technology
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
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HR Management’s Contributing Role
Organizational Culture and HR
Organizational Culture
– Is the shared values and beliefs in an organization.
– Is the internal “climate” of the organization.
– Positively affects service and quality, productivity, and
financial results.
– Is affected by differences in cultural dimensions.
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HR Management’s Contributing Role
Organizational Productivity
Productivity
A measure of the quantity and quality of work done, considering the cost of
the resources used.
Unit Labor Cost
A measure of HR productivity computed by
dividing the average cost of workers by their average
levels of output.
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Goals• Increase
organizational productivity
• Reduce unit labor costs
Restructuring the Organization
•Revising organizational structure
•Reducing staff
•Aiding in mergers and acquisitions
Re-Designing Work•Changing workloads and
combining jobs
•Reshaping jobs due to technology changes
Outsourcing•Using domestic
vendors/contractors instead of employees
•International outsourcing operations
Aligning HR Activities•Attracting and retaining
employees•Training and developing
employees•Evaluating and compensating
employees and other HR activities
Approaches to Improving Organizational Productivity14
HR Management’s Contributing Role
Social Responsibilities and HR
HR Advantages and Social Responsibilities
– Attracting and retaining employees
– Achieving sustainability in dealing with economic challenges
– Creating a “green culture”
Global Social Responsibility and HR
– Results in higher organizational images globally, better employee
morale and loyalty, and more competitive advantages with consumers
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Human Resource Management
Social Responsibilit
y
Customer Service
Quality
HR Management’s Contributing Role
Customer Service and Quality Linked to HR
Linking HR to social responsibility, customer service, and quality significantly affects organizational
effectiveness.
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HR Management’s Contributing Role
Employee Engagement and HR Culture
Employee Engagement
– Individuals feel linked to organizational success and how the
organization performs positively.
Social Networking
– Has evolved from personal contacts and oral communications to
include:
• E-mail and text messages
• Twitters
• Blogs
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Current and Future HR Management Challenges
Organizational Cost Pressures and
Restructuring
Pressures from global competitors and information
technology have forced firms to use:
– international outsourcing
– adapt management practices
– increase productivity, and
– decrease labor costs18
Current and Future HR Management Challenges
Economics and Job Changes
The shifts in the global economy has changed to the
service industry rather than manufacturing firms.
– Occupational Shifts
– Workforce Availability and Quality Concerns
– Talent Management and Development
– Growth in Contingent Workforce
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Current and Future HR Management Challenges
Globalization of Organizations
The business has shifted trade to the integration of
global operations, management, and strategic
alliances.
– An expatriate
– A host-country national
– A third-country national20
Current and Future HR Management Challenges
Workforce Demographics and Diversity
More diverse racially and ethnically, more women
and the average age in workforce are increasing.
– Racial/Ethnic Diversity
– Women in the Workforce
– Aging Workforce
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Current and Future HR Management Challenges
HR Technology
Human Resource Management System (HRMS)
– An integrated system providing information used by
HR management in decision making.
Purposes of HRMS Data Collection
– Administrative and operational efficiency
– Availability of data for HR strategic planning22
Current and Future HR Management Challenges
Measuring HR Impact through Metrics
More analytical and develop metrics that measure the HR
efforts, much like financial officers.
– measuring the cost of hiring someone,
– calculating the turnover costs when persons leave the firm,
– doing a return-on-investment analysis of training results and
expenses
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