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Chapter Seventeen

Part 8 Human Resources. Chapter Seventeen. The Changing Face of Organizational Life. Chapter Seventeen Learning Objectives. Examine the workplace, especially the environmental forces that are causing turbulence.

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Chapter Seventeen

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  1. Part 8Human Resources Chapter Seventeen The Changing Face of Organizational Life

  2. Chapter Seventeen Learning Objectives • Examine the workplace, especially the environmental forces that are causing turbulence. • Become familiar with comparative statistical information that reflects globally competitive workforce data. • Recognize the differences between corporate organization and operation into the 1980s and since then. • Recognize the differences between employment dynamics into the 1980s and since then. • Compare workforce flexibility as a strategic strength between industrialized nations.

  3. TheWorkplace PAST FUTURE Demographic Change GovernmentIntervention Technological Change Competition StructuralChange External Forces Changing the Workplace

  4. Demographic Change in the U.S.2000 – 2010 Demographic % of Labor % of Labor Percent Change Component Force, 2000 Force, 2010 in Numbers Total labor force 100.0 100.0 11.9 Men 53.4 52.1 9.2 Women 46.6 47.9 15.1 Children 10-14 0.0 0.0 0.0 White 83.5 81.2 8.9 White male 45.5 43.2 6.7 Black 11.8 12.7 20.7 Hispanic origin 10.9 13.3 36.3 Asian and other* 4.7 6.1 44.1 *Includes Pacific Islanders, American Indians, and Alaska Natives. Table 17.1 (excerpt) Source:Bureau of Labor Statistics.

  5. The World’s Largest Labor Forces: 2000 1. China 751 million 2. India 441 million 3. USA 141 million

  6. Comparative Occupational Structures of Eight Developed Nations: 1999 Agriculture Industry Services Australia 5% 21% 74% Canada 4 22 75 France 4 24 72 Germany 3 34 64 Italy 6 33 62 Japan 5 31 64 Sweden 3 24 73 United Kingdom† 2 26 72 Table 17.2 Source: Bureau of Labor Statistics, Comparative Civilian Labor Force Statistics: Ten Countries 1959-2000 (Washington, DC: U.S. Department of Labor, March 16, 2001), table 7.

  7. Average Hourly CompensationAround the World in 2000 Germany $24.01 Norway $22.05 Japan $23.66 Switzerland $21.24 Belgium $21.11 Denmark $20.44 Sweden $20.14 United States $19.86 France $16.38 Taiwan $ 5.98 Mexico $ 2.46 Sri Lanka $ .50

  8. Government InterventionThe Early Years • Liberty of Contract Doctrine • Norris-La Guardia Anti-Injunction Act of 1932 outlaws Yellow Dog contracts • National Labor Relations Act of 1935

  9. Current Regulation to Protect Employees • 200 federal statutes • State legislatures liberalize federal statutes • State courts erode employment-at-will Public policy exceptions Good faith exceptions Implied contract exceptions • Costs Direct dollar costs Indirect economic costs Lost flexibility

  10. 1920 1930 1940 1950 1960 1970 1980 1990 2000 ADA Americans With Disabilities Act ADEA Age Discrimination in Employment Act COBRA Consolidated Omnibus Budget Reconciliation Act of 1985 CWHSSA Contract Work Hours and Safety Standards Act DBA Davis-Bacon Act DFWA Drug-Free Workplace Act EO 11246 Executive Order 11246 EPPA Employee Polygraph Protection Act EQPA Equal Pay Act (amendments to the Fair Labor Standards Act) ERISA Employee Retirement Income Security Act FLSA Fair Labor Standards Act FLMA Family and Medical Leave Act IRCA Immigration Reform and Control Act (amendments to the Immigration and Nationality Act) LMRDA Labor-Management Reporting and Disclosure Act MSHA Federal Mine Safety and Health Act MSPA Migrant and Seasonal Agricultural Worker Protection Act NLRA National Labor Relations Act NLA Norris-LaGuardia Act OSHA Occupational Safety and Health Act RA Rehabilitation Act - Section 503 RLA Railway Labor Act SCA Service Contract Act STAA Surface Transportation Assistance Act (Anti-retaliatory provision) Title VII Title VII of the Civil Rights Act UC Unemployment compensation provisions of the Social Security ActVRR Veterans’ reemployment rights provisions of the Selective Training and Service Act WHA Walsh-Healey Act WARN Workers Adjustment and Retraining Notification Act COBRAIRCA CWHSSAEO 11246 NLRAUC MSHA ERISA EPPADFWAWARN NLA SCAEQPA FLSA ADA ADEA RLA DBA WHA VRR RA LMRDA OSHA MSPA STAA FMLA Title VII Chronology of Major Workplace Regulations Source: Adapted from General Accounting Office. “Testimony: Rethinking the Federal Role in Worker Protection and Workforce Development,” 1995, p. 5. Figure 17.1

  11. The American Job Equation: 1979-2001 Permanently lost 55 million Newly created 88 million Net gain: 33 million Unemployment in 1981 11% Unemployment in 2001 5% Net decline: 6%

  12. Corporate Structure • Traditionally configured corporations were organized along functional lines that were quite rigid. • The organization charts resembled a triangle. Broad at the base and tapering to the top, reflecting the great numbers engaged at operational levels compared to a greatly reduced number required to manage and administer. • Any required operational changes could be accomplished only with great investment of time and expense.

  13. Corporate Change • The new corporation design is a lean corporation. • The organization’s shape has been flattened. • Global competition has forced the organization to adopt change as a necessary ingredient of success. Flexibility and the ability to adapt very quickly to changed conditions is absolutely essential.

  14. The Employment Contract:THEN • Early corporate culture demanded loyalty and rewarded it. • Individuals with good education and work habits could expect to find a stable employer who would reward them for their time and efforts throughout the period of their careers. • There were many instances where employees spent their entire work life with the same company.

  15. The Employment Contract:NOW • Given the economic stresses of global competition, employers will not be able to make long-term commitments in the future. • Employees should anticipate the necessity of changing jobs several times throughout their working years. • More significant is the probable requirement that employees retrain from time-to-time. Skills will become obsolete, new skills will have to be acquired. • The present and future member of the work force is effectively in business for him(her)self.

  16. Employment as a Strategic Component of National Competitiveness of Various Industrialized Nations Country Flexible Inflexible Belgium X Denmark X France X Germany X Italy X Japan X United States X

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