chapter 2 trends affecting human resource management powerpoint presentation by charlie cook...

CHAPTER 2

TRENDS AFFECTINGHUMAN RESOURCE MANAGEMENT

PowerPoint Presentation by Charlie CookCopyright © 2002 South-Western. All rights reserved

Copyright © 2002 South-Western. All rights reserved. 2–2

Major Factors Affecting HRMMajor Factors Affecting HRMMajor Factors Affecting HRMMajor Factors Affecting HRM

StrategicStrategicHRMHRM

TechnologicalTechnologicalAdvancementAdvancement

DemographicsDemographicsand Diversityand Diversity

GlobalizationGlobalization


Technology and HRMTechnology and HRMTechnology and HRMTechnology and HRM


Technology Challenges for HRMTechnology Challenges for HRMTechnology Challenges for HRMTechnology Challenges for HRM


Workforce Demographic ChangesWorkforce Demographic ChangesWorkforce Demographic ChangesWorkforce Demographic Changes

• The The “Graying”“Graying” of the Workforce of the Workforce

• Negative Aspects of Older WorkersNegative Aspects of Older Workers– Perceived resistance to change by older workers.Perceived resistance to change by older workers.– Increased health-care costs for senior workersIncreased health-care costs for senior workers– Blocking advancement opportunities for younger workersBlocking advancement opportunities for younger workers– Higher wage and salary costs for senior workersHigher wage and salary costs for senior workers

• Positive Aspects of Older WorkersPositive Aspects of Older Workers– As productive or more productive than younger workersAs productive or more productive than younger workers– Have more organizational loyalty than younger workersHave more organizational loyalty than younger workers– Possess broader industry knowledge and professional networksPossess broader industry knowledge and professional networks

• The The “Graying”“Graying” of the Workforce of the Workforce

• Negative Aspects of Older WorkersNegative Aspects of Older Workers– Perceived resistance to change by older workers.Perceived resistance to change by older workers.– Increased health-care costs for senior workersIncreased health-care costs for senior workers– Blocking advancement opportunities for younger workersBlocking advancement opportunities for younger workers– Higher wage and salary costs for senior workersHigher wage and salary costs for senior workers

• Positive Aspects of Older WorkersPositive Aspects of Older Workers– As productive or more productive than younger workersAs productive or more productive than younger workers– Have more organizational loyalty than younger workersHave more organizational loyalty than younger workers– Possess broader industry knowledge and professional networksPossess broader industry knowledge and professional networks


Workforce Demographic ChangesWorkforce Demographic ChangesWorkforce Demographic ChangesWorkforce Demographic Changes

• Baby Boomers (1945Baby Boomers (1945––1962)1962)– In excess supply in middle management ranksIn excess supply in middle management ranks– HR challenge is to manage “plateaued” workersHR challenge is to manage “plateaued” workers

• Baby Busters (1963Baby Busters (1963––mid-1970s)mid-1970s)– Are career bottlenecked by the BoomersAre career bottlenecked by the Boomers– Who have skills in high demand are doing and will do wellWho have skills in high demand are doing and will do well

• Generation “X”ers (late 1970sGeneration “X”ers (late 1970s–early 1980s)–early 1980s)– Have life-long exposure to technology and constant changeHave life-long exposure to technology and constant change– Seek self-control, independence, personal growth, creativitySeek self-control, independence, personal growth, creativity– Are not focused on job security or long-term employment.Are not focused on job security or long-term employment.

• Baby Boomers (1945Baby Boomers (1945––1962)1962)– In excess supply in middle management ranksIn excess supply in middle management ranks– HR challenge is to manage “plateaued” workersHR challenge is to manage “plateaued” workers

• Baby Busters (1963Baby Busters (1963––mid-1970s)mid-1970s)– Are career bottlenecked by the BoomersAre career bottlenecked by the Boomers– Who have skills in high demand are doing and will do wellWho have skills in high demand are doing and will do well

• Generation “X”ers (late 1970sGeneration “X”ers (late 1970s–early 1980s)–early 1980s)– Have life-long exposure to technology and constant changeHave life-long exposure to technology and constant change– Seek self-control, independence, personal growth, creativitySeek self-control, independence, personal growth, creativity– Are not focused on job security or long-term employment.Are not focused on job security or long-term employment.


New Employee/Workplace DynamicsNew Employee/Workplace DynamicsNew Employee/Workplace DynamicsNew Employee/Workplace Dynamics

• Emphasis on the Management of ProfessionalsEmphasis on the Management of Professionals– Establishment of separate career tracksEstablishment of separate career tracks

• Technical/Professional, Managerial /AdministrativeTechnical/Professional, Managerial /Administrative– Use of project teamsUse of project teams

• Less Employee Loyalty, More Loyal to SelfLess Employee Loyalty, More Loyal to Self– Staying with employers for shorter periods; demanding more meaningful Staying with employers for shorter periods; demanding more meaningful

work and involvement in organizational decisionswork and involvement in organizational decisions

• Increased Personal and Family Dynamic EffectsIncreased Personal and Family Dynamic Effects– More single-parent families, dual-career couples, and domestic partnersMore single-parent families, dual-career couples, and domestic partners

• Increased Nontraditional Work RelationshipsIncreased Nontraditional Work Relationships– Part-time, consulting, and temporary employment flexibilityPart-time, consulting, and temporary employment flexibility– Outsourcing and entrepreneurial opportunitiesOutsourcing and entrepreneurial opportunities

• Emphasis on the Management of ProfessionalsEmphasis on the Management of Professionals– Establishment of separate career tracksEstablishment of separate career tracks

• Technical/Professional, Managerial /AdministrativeTechnical/Professional, Managerial /Administrative– Use of project teamsUse of project teams

• Less Employee Loyalty, More Loyal to SelfLess Employee Loyalty, More Loyal to Self– Staying with employers for shorter periods; demanding more meaningful Staying with employers for shorter periods; demanding more meaningful

work and involvement in organizational decisionswork and involvement in organizational decisions

• Increased Personal and Family Dynamic EffectsIncreased Personal and Family Dynamic Effects– More single-parent families, dual-career couples, and domestic partnersMore single-parent families, dual-career couples, and domestic partners

• Increased Nontraditional Work RelationshipsIncreased Nontraditional Work Relationships– Part-time, consulting, and temporary employment flexibilityPart-time, consulting, and temporary employment flexibility– Outsourcing and entrepreneurial opportunitiesOutsourcing and entrepreneurial opportunities


Managing Workplace DiversityManaging Workplace DiversityManaging Workplace DiversityManaging Workplace Diversity

• Understanding and Appreciating DiversityUnderstanding and Appreciating Diversity– Is critical to effectively marketing to ethnic and minority groupsIs critical to effectively marketing to ethnic and minority groups– Is promoted by having a diverse workforce at all organization levelsIs promoted by having a diverse workforce at all organization levels– Helps ensure that hiring and promotion decisions are unbiased by person Helps ensure that hiring and promotion decisions are unbiased by person

differencesdifferences

• Diversity Management Programs/InitiativesDiversity Management Programs/Initiatives– Must be integrated with organization’s mission and objectivesMust be integrated with organization’s mission and objectives– Help key decision makers identify diversity’s benefits to the organizationHelp key decision makers identify diversity’s benefits to the organization– Make critical decisions about implementing the optimal program/initiative Make critical decisions about implementing the optimal program/initiative

contingent on the organization and its people, mission and culture.contingent on the organization and its people, mission and culture.

• Understanding and Appreciating DiversityUnderstanding and Appreciating Diversity– Is critical to effectively marketing to ethnic and minority groupsIs critical to effectively marketing to ethnic and minority groups– Is promoted by having a diverse workforce at all organization levelsIs promoted by having a diverse workforce at all organization levels– Helps ensure that hiring and promotion decisions are unbiased by person Helps ensure that hiring and promotion decisions are unbiased by person

differencesdifferences

• Diversity Management Programs/InitiativesDiversity Management Programs/Initiatives– Must be integrated with organization’s mission and objectivesMust be integrated with organization’s mission and objectives– Help key decision makers identify diversity’s benefits to the organizationHelp key decision makers identify diversity’s benefits to the organization– Make critical decisions about implementing the optimal program/initiative Make critical decisions about implementing the optimal program/initiative

contingent on the organization and its people, mission and culture.contingent on the organization and its people, mission and culture.


Reading 2.1:Reading 2.1: Telecommuting TelecommutingReading 2.1:Reading 2.1: Telecommuting Telecommuting

• BenefitsBenefits– Reduced work Reduced work

commuting timecommuting time– Employee retentionEmployee retention– Increased geographic Increased geographic

recruiting flexibilityrecruiting flexibility– Reduced costs of doing Reduced costs of doing

business (reduced office business (reduced office space)space)

– Significant productivity Significant productivity gainsgains

• BenefitsBenefits– Reduced work Reduced work

commuting timecommuting time– Employee retentionEmployee retention– Increased geographic Increased geographic

recruiting flexibilityrecruiting flexibility– Reduced costs of doing Reduced costs of doing

business (reduced office business (reduced office space)space)

– Significant productivity Significant productivity gainsgains

• ObstaclesObstacles– Difficulty in measuring Difficulty in measuring

performanceperformance– Determining eligible jobsDetermining eligible jobs– Individual employee Individual employee

characteristicscharacteristics– Assumption of home office Assumption of home office

expenses/liabilitiesexpenses/liabilities– Managerial resistance to Managerial resistance to

telecommutingtelecommuting– Increased networking costIncreased networking cost

• ObstaclesObstacles– Difficulty in measuring Difficulty in measuring

performanceperformance– Determining eligible jobsDetermining eligible jobs– Individual employee Individual employee

characteristicscharacteristics– Assumption of home office Assumption of home office

expenses/liabilitiesexpenses/liabilities– Managerial resistance to Managerial resistance to

telecommutingtelecommuting– Increased networking costIncreased networking cost


Reading 2.2: Workplace DiversityReading 2.2: Workplace DiversityReading 2.2: Workplace DiversityReading 2.2: Workplace Diversity

• Issues Affecting Diversity PolicymakingIssues Affecting Diversity Policymaking– Why diversity is internally and externally important to the organization?Why diversity is internally and externally important to the organization?– How is diversity related to the current and future mission and strategic How is diversity related to the current and future mission and strategic

objectives of the organization?objectives of the organization?– How is diversity to be defined in its inclusion and exclusion of the extent, How is diversity to be defined in its inclusion and exclusion of the extent,

composition, and recognition of “differences”?composition, and recognition of “differences”?– Should the organization make special efforts to attract a diverse Should the organization make special efforts to attract a diverse

workforce? and for what purposes? workforce? and for what purposes? – How do existing employees and constituents feel about diversity?How do existing employees and constituents feel about diversity?– What specific types of diversity initiatives will be undertaken? and to What specific types of diversity initiatives will be undertaken? and to

meet what objectives?meet what objectives?

• Issues Affecting Diversity PolicymakingIssues Affecting Diversity Policymaking– Why diversity is internally and externally important to the organization?Why diversity is internally and externally important to the organization?– How is diversity related to the current and future mission and strategic How is diversity related to the current and future mission and strategic

objectives of the organization?objectives of the organization?– How is diversity to be defined in its inclusion and exclusion of the extent, How is diversity to be defined in its inclusion and exclusion of the extent,

composition, and recognition of “differences”?composition, and recognition of “differences”?– Should the organization make special efforts to attract a diverse Should the organization make special efforts to attract a diverse

workforce? and for what purposes? workforce? and for what purposes? – How do existing employees and constituents feel about diversity?How do existing employees and constituents feel about diversity?– What specific types of diversity initiatives will be undertaken? and to What specific types of diversity initiatives will be undertaken? and to

meet what objectives?meet what objectives?

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