HRM in a Changing Environment

HRM Functions

  • Classic Motivation Theories:

    • Hierarchy of Needs: Maslow

    • Theory X & Theory Y: McGregor

    • Motivation-Hygiene: Herzberg

    • Achievement, Affiliation, and Power Motives: McClelland

    • Equity Theory: Adams

    • Expectancy Theory: Vroom

Basic Concepts

  • Management: Coordinating and overseeing work activities to achieve organizational goals effectively and efficiently.

    • Effectiveness.

    • Efficiency.

  • Areas of Management: Human Resource, Information Technology, Financial, Marketing, Operations, Strategic.

  • Human Resource Management (HRM):

    • Function concerned with organization's manpower, performance, and issues.

    • Recruiting, hiring, deploying, and managing employees.

    • Human resource is a vital asset; goal is effective use, risk reduction, and maximizing ROI.

  • Major HRM Activities: HR Planning, Job Analysis, Recruitment & Hiring/Selection, Orientation, Training & Development, Motivation, Performance Appraisal, Compensation & Benefits, Legal Issues/Industrial Relations, Health, Safety, and Security.

Introduction to the Changing World of Work

  • HR must understand implications of globalization, technology changes, workforce diversity, changing skill requirements, continuous improvement, contingent work force, decentralized work sites, and employee involvement.

Understanding Cultural Environments

  • HRM professionals need to understand cultural differences; ensure availability of employees for global assignments (knowledge, skills, cultural adaptability).

  • GLOBE Dimensions: Performance Orientation, Uncertainty Avoidance, In-Group Collectivism, Power Distance, Gender Egalitarianism, Humane Orientation, Institutional Collectivism, Future Orientation, Assertiveness Definitions.

The Changing World of Technology

  • Technology has altered how people work and information is managed.

  • Shift from agriculture to industrialization created blue-collar workers; trend towards service jobs.

  • Knowledge Workers: Main capital is knowledge (e.g., programmers, physicians).

    • Emphasis on technology makes organizations more productive, creates competitive advantage, and provides better information.

  • How Technology Affects HRM Practices: Impacts recruitment & selection, training & development, performance appraisal, motivation, compensation & benefits, legal concerns, communication, and ethics & employee rights.

Workforce Diversity

  • Varied personal characteristics that make the workforce heterogeneous.

  • Includes age, gender, cultural background, physical abilities/disabilities, knowledge, race, & religion.

  • Challenge: make organizations accommodating to diverse groups.

  • Workforce Trends: Increasing minorities, women, immigrant workers, and older workers; focus on equal rights and work-life balance.

  • How Diversity Affects HRM: Attract and maintain a diversified, productive, and loyal workforce; avoid practices against diversity policy.

  • Work-Life Balance: Equilibrium between career and personal life demands.

Labor Supply

  • Shortage of Skilled Labor due to factors like world wars, birth rate, labor participation rate, and terrorist attacks.

  • Downsizing: Permanent reduction of labor force, often due to economic downturns; fastest way to cut costs.

  • Rightsizing: Balancing staff to meet changing needs, often using outside firms.

  • Contingent Workers: Used to respond to fluctuating needs (part-time, temporary, contract workers).

Part-Time, Temporary, and Contract Workers

  • Part-time: Fewer than 40 hours a week, few benefits.

  • Temporary: Employed during peak periods or to fill in forabsences; fixed labor cost.

  • Contract: Work on specific projects; fixed fee; no employee costs.

  • Issues Contingent Workers Create for HRM: Differing treatment needs, attracting quality workers, motivation, availability, quick adaptation, conflict management.

Continuous Improvement Programs

  • Making constant efforts to provide better products and service to customers.

    • Internal (Employees, Managers).

    • External (Consumer, Supplier, Other organization/Customer).

  • Key Components: Customer-focused, concern for continuous improvement, quality enhancement initiatives (training, work process engineering), accurate measurement, employee empowerment.

  • How HRM Assists in Work Process Engineering: Helps employees deal with conflict/change, provides skills training, adapts HR systems.

Employee Involvement

  • Delegation: Having authority to make decisions.

  • Work Teams: Workers of various specializations collaborating.

  • HRM provides training to empower employees.

  • Involvement programs can achieve greater productivity and increased employee loyalty/commitment.

A Look at Ethics

  • Three Views of Ethics:

    • Utilitarian View: Decisions based on outcomes.

    • Rights View: Decisions respect individual liberties.

    • Theory of Justice View: Decisions enforce rules fairly.

  • Code of Ethics: Formal document stating organization's values and ethical rules.