CHAPTER 2 TRENDS IN HUMAN RESOURCE MANAGEMENT

1. Fundamentals of human resource management 5theditionBy R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 2 TRENDS IN HUMAN RESOURCE MANAGEMENT

2. NEED TO KNOW Labor force composition trends and technological developments how they affect HRM. Areas HRM can support the goals of creating a high-performance work system and expanding internationally. Employee empowerment and its role. Ways HR professionals can support organizational strategies for quality, growth, and efficiency. How the nature of employment relationship is changing. How the need for flexibility affects HRM.

3. The Labor Force Internal Labor Force External Labor Market • An organization’s workers • Its employees • People who have contracts to work at the organization • Internal labor force has been drawn from the external labor market. • Individuals who are actively seeking employment. • Number and kinds of people in external labor market determine kinds of human resources available to an organization.

4. Change in the Labor Force

5. Generations

6. FIGURE 2.1: AGE DISTRIBUTION OF U.S LABOR FORCE, 2010 AND 2020

7. HRM Implications of an Aging Workforce • HR professionals spend much time on concerns related to retirement planning, retraining older workers, and motivating workers whose careers have reached a plateau. • Organizations struggle to control rising costs of health care and other benefits. • Managers will supervise employees much older than themselves. • Organizations must find ways to attract, retain, and prepare youth labor force.

8. As more of the workforce reaches retirement age, some companies have set up mentoring programs between older and younger workers so that knowledge is not lost but passed on.

9. Figure 2.2: Projected Racial/Ethnic Makeup of the U.S. Workforce, 2018

10. Figure 2.3: HRM Practices That Support Diversity Management

11. Skill Deficiencies of the Workforce • Employers are looking for skills: • mathematical • verbal • interpersonal • computer • Gap between needed and available skills has decreased companies ability to compete. • Sometimes lack the capacity to upgrade technology, reorganize work, and empower employees.

12. High-Performance Work Systems • Organizations have best fit between their: • social system (people and how they interact); and • technical system (equipment and processes). • Key trends in high-performance work systems: • reliance on knowledge workers • empowerment of employees to make decisions • teamwork

13. Table 2.2 HRM Applications for Social Networking

14. Top 10 Occupations for Job Growth

15. Knowledge Workers • Employees whose contribution to the organization is specialized knowledge of: • Customers • Processes • Profession • They are especially needed for jobs in: • health services • business services • social services • engineering • management

16. Test Your Knowledge • Ensuring that knowledge workers will share information and store it so that it is easily retrieved by others is the concern of which of the following HR activities. • Turnover • Employee Empowerment • Knowledge Management • Employee Selection

17. Employee Empowerment Employee Empowerment Employee Engagement Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Full involvement in one’s work and commitment to one’s job and company. This is associated with: • higher productivity • better customer service • lower employee turnover

18. Teamwork • The assignment of work to groups of employees with various skills who interact to assemble a product or provide a service. • Work teams often assume many of the activities traditionally reserved for managers: • selecting new team members • scheduling work • coordinating work with customers and other units of the organization

19. Test Your Knowledge • Sharon is a very smart and conscientious worker. Lately, she has felt that her ideas were disregarded and she was denied autonomy in completing her work. This situation is probably caused by a lack of • Employee Empowerment • Knowledge Management • Turnover • Teamwork

20. Figure 2.4: Strategic Business Issues Affecting HRM

21. Total Quality Management (TQM)

22. TQM Core Values • Methods and processes are designed to meet the needs of internal and external customers. • Every employee receives training in quality. • Quality is designed into a product or service so that errors are prevented from occurring. • Organization promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. • Managers measure progress with feedback based on data.

23. Figure 2.5:Number of Employees Laid Off During the Past Decade

24. Mergers and Acquisitions HRM should have a significant role in carrying out a merger or acquisition. • Differences between businesses involved in the deal make conflict inevitable. • Training should include conflict resolution skills. • There is a need to sort out differences in the two companies’ practices regarding compensation, performance appraisal, and other HR systems.

25. Reengineering • A complete review of the organization’s major work processes to make them more efficient and able to deliver higher quality, including HRM. • Reengineering affects HRM in two ways: • How HR accomplishes its goals may change. • Change requires HR to help design and implement change so that alll employees will be committed to the reengineered organization’s success.

26. Outsourcing Outsourcing – the practice of having another company (a vendor, third-party provider, or consultant) provide services. • Outsourcing gives the company access to in-depth expertise and is often more economical as well. • HR helps with a transition to outsourcing.

27. Expanding into Global Markets Offshoring International Labor Pool • Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available. • Hiring at home may may involve selection of employees from other countries. • Immigration.

28. Figure 2.6: Where Immigrants to U.S. Came from in 2010

29. HR Information System (HRIS) A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization’s human resources. HRIS can: • support strategic decision making • help the organization avoid lawsuits • provide data for evaluating programs or policies • support day-to-day HR decisions

30. Table 2.1: New Technologies Influencing HRM

31. Electronic Human Resource Management (e-HRM)

32. CHANGE IN THE EMPLOYMENT RELATIONSHIP • The employment relationship takes the form of a “psychological contract”that describes what employees and employers expect from the employment relationship. • In the traditional version, organizations expected employees to contribute time, effort, skills, abilities, and loyalty in exchange for job security and opportunities for promotion.

33. CHANGE IN EMPLOYMENT RELATIONSHIP

34. Nature of the Employment Relationship is Changing • Organizations are requiring top performance and longer work hours but cannot provide job security. • Instead, employees are looking for: • flexible work schedules • comfortable working conditions • greater autonomy • opportunities for training and development • performance-related financial incentives • This requires planning for flexible staffing levels.

35. Flexibility: A Family-Friendly Work Arrangement

36. Ned for Flexibility Affects HRM • Organizations seek flexibility in staffing levels through alternatives to traditional employment relationship: • outsourcing, temporary, and contract workers • flexible work schedules – including shortened work weeks • allowing employees to adjust work hours to meet personal and family needs • moving employees to different jobs to meet changes in demand

37. Summary • An organization’s internal labor force comes from its external labor market • U.S. labor market is aging and becoming more racially and ethnically diverse. • Organizations must recruit from a diverse population, establish bias-free HR systems, and help employees understand and appreciate cultural differences. • HRM can help organizations find and keep the best possible fit between their social system and technical system.

38. Summary (continued) • Job design and appropriate systems for assessment and rewards have a central role in supporting employee empowerment and teamwork. • Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. • HRM must design jobs to give employees latitude for decision-making and interpersonal skills.

39. Summary (continued) HR professionals should be familiar with the organization’s strategy and may even play a role in developing the strategy. Specific HR practices vary according to type of strategy. Organizations with international operations hire employees in foreign countries where they operate, so they need knowledge of differences in culture and business practices.