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Fundamentals of Human Resource Management, DeCenzo and Robbins
Chapter 1
Strategic Implications of a Dynamic HRM Environment
DeCenzo and Robbins
Fundamentals of Human Resource Management, DeCenzo and Robbins
Introduction
• The World of Work - continues to change, but at an
even more rapid pace.
• HR must understand the implications of:
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globalization
technology changes
workforce diversity
changing skill requirements
continuous improvement initiatives
the contingent work force
decentralized work sites
and employee involvement
Fundamentals of Human Resource Management, DeCenzo and Robbins
Understanding Cultural
Environments
• Today’s business world is truly a global village. This term refers to
the fact that businesses currently operate around the world.
Global
village
Global
frame
work
MNC
National Culture
dimensions
HRM Practices must
be adjusted
Fundamentals of Human Resource Management, DeCenzo and Robbins
Understanding Cultural
Environments
• HRM must ensure that
– employees can operate in the appropriate language
– communications are understood by a multilingual work force
• Ensure that workers can operate in cultures that differ on
variables such as
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status differentiation
societal uncertainty
assertiveness
individualism
• HRM also must help multicultural groups work together.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Understanding Cultural Environments
• GLOBE Dimensions:
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Assertiveness
Future Orientation
Gender Differentiation
Uncertainty Avoidance
Power Distance
Individualism/collectivism
In-group collectivism
Performance orientation
Humane orientation
Fundamentals of Human Resource Management, DeCenzo and Robbins
Understanding Cultural Environments
• GLOBE Dimensions:
– Assertiveness: Assertive and aggressive in social relationships.
– Future Orientation: planning, investing and delaying
gratifications.
– Gender Differentiation
– Uncertainty Avoidance
– Power Distance
Fundamentals of Human Resource Management, DeCenzo and Robbins
Understanding Cultural Environments
• GLOBE Dimensions:
– Individualism/collectivism: How much being in group is
rewarded?
– In-group collectivism: People want to be a part of the group
– Performance orientation: Acceptance of the legitimacy of
hierarchy and valuing of perseverance and thrift.
– Humane orientation: how much altruism, generosity, fairness,
friendliness, being caring (basically being good) is appreciated.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Understanding Cultural
Environments
• Cultural Implications for HRM
– Not all HRM theories and practices are universally
applicable.
– HRM must understand varying cultural values.
Fundamentals of Human Resource Management, DeCenzo and Robbins
The Changing World of Technology
• Has altered the way people work.
• Has changed the way information is created, stored,
used, and shared.
• The move from agriculture to industrialization created
a new group of workers – the blue-collar industrial
worker.
• Since WWII, the trend has been a reduction in
manufacturing work and an increase in service jobs.
Fundamentals of Human Resource Management, DeCenzo and Robbins
The Changing World of Technology
• Knowledge Worker - individuals whose jobs are
designed around the acquisition and application of
information.
• Why the emphasis on technology:
– makes organizations more productive
– helps them create and maintain a competitive
advantage
– provides better, more useful information
Fundamentals of Human Resource Management, DeCenzo and Robbins
The Changing World of Technology
• How Technology Affects HRM Practices
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Recruiting
Employee Selection
Training and Development
Ethics and Employee Rights
Motivating Knowledge Workers
Paying Employees Market Value
Communication
Decentralized Work Sites
Skill Levels
Legal Concerns
Fundamentals of Human Resource Management, DeCenzo and Robbins
Workforce Diversity
• The challenge is to
make organizations
more accommodating to
diverse groups of
people.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Workforce Diversity
• The Workforce Today
– minorities and women have become the fastest
growing segments
– the numbers of immigrant workers and older
workers are increasing
Fundamentals of Human Resource Management, DeCenzo and Robbins
Workforce Diversity
• How Diversity Affects HRM
– Need to attract and maintain a diversified work
force that is reflective of the diversity in the
general population.
– Need to foster increased sensitivity to group
differences.
– Must deal with the different
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Values
Needs
Interests
Expectations of employees
Fundamentals of Human Resource Management, DeCenzo and Robbins
Workforce Diversity
• What Is a Work/Life Balance?
– A balance between personal life and work
– Causes of the blur between work and life
• The creation of global organizations means the world never
sleeps.
• Communication technologies allow employees to work at
home.
• Organizations are asking employees to put in longer hours.
• Fewer families have a single breadwinner.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Labor Supply
• Do We Have a Shortage of Skilled Labor?
– The combination of the small Gen-X population,
the already high participation rate of women in the
workforce, and early retirements will lead to a
significantly smaller future labor pool from which
employers can hire.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Labor Supply
• Why Do Organizations Lay Off During
Shortages?
– Downsizing is part of a larger goal of balancing
staff to meet changing needs.
– Organizations want more flexibility to better
respond to change.
– This is often referred to as rightsizing, linking
employee needs to organizational strategy.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Labor Supply
• How Do Organizations Balance Labor
Supply?
– Organizations are increasingly using contingent
workers to respond to fluctuating needs for
employees.
– Contingent workers include
• Part-time workers: Are there for a few hours and are
rarely given any extra benefits
• Temporary workers: they are like part timers, but they
may be employed for some time as a replacement.
• Contract workers: bound for some time, skilled, generally
charge a high fee for their expertise
Fundamentals of Human Resource Management, DeCenzo and Robbins
Labor Supply
Fundamentals of Human Resource Management, DeCenzo and Robbins
Labor Supply
• Issues Contingent Workers Create for HRM
– How to attract quality temporaries
– How to motivate employees who are receiving
less pay and benefits
– How to have them available when needed
– How to quickly adapt them to the organization
– How to deal with potential conflicts between core
and contingent workers
Fundamentals of Human Resource Management, DeCenzo and Robbins
Continuous Improvement Programs
• Continuous improvement - making constant
efforts to provide better products and service
to customers
– External
– Internal
• Quality management concepts have existed
for over 50 years and include the pioneering
work of W. Edwards Deming.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Continuous Improvement Programs
• Key components of continuous
improvement are:
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Focus on the customer
Concern for continuous improvement
Improvement in the quality of everything
Accurate measurement
Empowerment of employees
Fundamentals of Human Resource Management, DeCenzo and Robbins
Continuous Improvement Programs
• Work Process Engineering involves radical,
quantum changes to entire work processes.
• How HRM Assists in Work Process Engineering
– Helps employees deal with the emotional aspects of conflict
and change
– Provides skills training
– Adapts HR systems, such as compensation, benefits, and
performance standards.
Fundamentals of Human Resource Management, DeCenzo and Robbins
Employee Involvement
• Delegation – having the authority to make decisions
in one’s job
• Work teams – workers of various specializations who
work together in an organization
• HRM must provide training to help empower
employees in their new roles.
• Involvement programs can achieve:
– greater productivity
– increased employee loyalty and commitment
Fundamentals of Human Resource Management, DeCenzo and Robbins
A Look at Ethics
• Three views of ethics:
– Utilitarian View – decisions are made on the basis of their
outcomes or consequences
– Rights View – decisions are made with concern for
respecting and protecting individual liberties and privileges
– Theory of Justice View – decisions are make by enforcing
rules fairly and impartially
• Code of ethics - a formal document that states an
organization’s primary values and the ethical rules it
expects organizational members to follow.
Fundamentals of Human Resource Management, DeCenzo and Robbins