Chapter 01 - HRM in Changing Environment

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Chapter One

HRM in a Changing Environment

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Lectured by Mr. Samath Houy

Tel: 012 211 345

Email: [email protected]


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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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21st-Century Corporations

Global

The timeline for the globalization of companies:

Early days: a company that sold goods overseas

Middle period: a company that manufactured and sold goods in other

countries

21st Century: a company that is able to call on talent and resources around

the globe, just as it sells its goods and services around the globe

Speed

Speed in the 21st century company is a business strategy built on a

virtual network of suppliers, manufacturers, and delivery firms


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People-Driven Enterprises

The successful 21st-century company is one that realizes

that it is the people that make up the business

Some key challenges for managers of 21st-century

enterprises:

Understanding the challenges the enterprise faces

Seizing opportunities

Managing frustration


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Strong

employees=

Competitive

advantage

HRM is a subset of management.

It has five main goals:

Goals

of

HRM

hire

employees

attract

employees

retain

employees

motivate

employees

train

employees

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 managementsystems to ensure that humantalent is used effectively and

efficiently to accomplishorganizational 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

HRMinformation systems help to

facilitate HR plans

make decisions faster

clearly define jobs

evaluate performance

provide desirable, cost-effective benefits

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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 Managements 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, andfinancial results.

Is affected by differences in cultural dimensions.

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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 employeesEvaluating and compensating

employees and other HR activities

Approaches to Improving Organizational Productivity

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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

ResponsibilityCustomer

ServiceQuality


Customer Service and Quality Linked to HR

Linking HR to social responsibility, customer service, and quality

significantly affects organizational effectiveness.

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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 costs

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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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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 national22


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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 Workforce23


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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 planning

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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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Chapter 01 - HRM in Changing Environment