dynamic enviroment of hrm
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dynamic enviroment of hrmTRANSCRIPT
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Chapter 02The Dynamic Environment of HRM
Sehrish Imdad DogarBBA(H) University of SindhMBA SZABISTemail i.d: [email protected] page: https://www.facebook.com/Sehrish
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introduction
• Business Environment: encompasses all those factors that affect a company's operations.
• why study the Environment?
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
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HRM Environment
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Introduction
Strong employees = competitive advantage.
HRM is a subset of management. It has five main goals:
Goalsof
HRM
hireemployees
attractemployees
retainemployees
motivateemployees
trainemployees
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Objective 1
How cultural environment affects
HRM practices?
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Understanding Cultural Environments
Countries have different values morals customs political, economic, and legal systems
Culture: the specific learned norms of a society that reflect attitudes, values, and beliefs that exist in a nation.
Attitude: thinking/feelingValues: what do u hold importantBeliefs: accepts as true
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• Ascribed status v/s acquired status
• Performance orientation (competence v/s seniority)
• Family based orientation (TATA, Ambani)
• Materialism and leisure
• Assertiveness
• Hierarchy of needs
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Understanding Cultural Environments
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Understanding Cultural Environments
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• Power distance (autocratic v/s consultative)
• Individualism v/s collectivism
• Uncertainty avoidance
• Fatalism
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Understanding Cultural Environments
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Objective 2
How technological environment affects HRM
practices
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
HRM information systems help to
facilitate HR plans make decisions faster clearly define jobs evaluate performance provide desirable, cost-effective benefits
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
RecruitingEmployee selectionTraining and developmentEthics and employee rightsMotivating knowledge workersCommunicationsDecentralized work sitesSkill levelsA legal concern
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Objective 3
What is workforce diversity. Identify changes in workforce composition and how firms respond to
these changes.
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Workforce Diversity
HRM has moved from the melting pot assumption to celebrating workforce diversity.
1. in 1960s legislation in favor of minority and women opened up opportunities.
2. birthrates declined and the era of“graying of the workforce” started
3. Multiculturalism(immigration+ globalization)
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
How has the companies responded to Workforce Diversity
1. Workforce Diversity Programs
2. Cultural audits
3. Healthy work/life balance.They can work any time, from almost anywhere
Global organizations– the world never sleeps Communication technology Organizations are asking to put in more hours Dual career couples
They want “a life” as well as a job!
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OBJECTIVE 4
HRM implications of labor shortage
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The Labor Supply– why the shortage?
HR managers monitor the labor supply.
• Cyclical labor trends are difficult to predict.– Economic changes were sudden where as Demographic changes are predictable over time.
• Labor shortage = f (birthrates, labor participation rates)
• by 2014 2.4 million jobs will go unfiled.
• September 11, 2001 has slowed down the immigrants.
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Why do organizations lay off employees during shortages?
In good times you hire employees;
in bad times, you fire them
• Downsizing: an activity in an organization aimed at creating greater efficiency by eliminating certain jobs
• Today flatter structures and redesigning jobs is the norm.
• Rightsizing: linking employee needs to organizational strategy.
• Outsourcing: sending work “outside” the organization to be done by individuals not employed full time with the organization.
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How do organizations balance labor supply?
part-time workers– fewer than 40 hours a week
temporary workers– acts as fill ins. fixed cost
contract workers/ subcontractors/ consultants – typically highly skilled. Charges a fee. Fixed cost. Economies of scale.
why contingent workforce? Quickly react to changes.
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Issues contingent workers create for HRM
• Introduce them policies and practices• Make sure they are not treated as second-class
workers• They maybe less loyal, less committed and less
motivated.• Set scheduling options as per their needs.• Decide whether benefits will be offered to the
contingent workforce or not• Deal with potential conflicts between core and
contingent workers.• See to it that core employees are not lured with the
flexibility.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
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Objective 5
Continuous improvement programs
and the role of HRM
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• Continuous improvement: organizational commitment to constantly improving quality of products and services.
• W.Edward Deming. In 1950 he advised that an organization which uses statistical control to reduce variability should result in uniform and predictable quantity of output .
• CIP is called kaizen in Japanese.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Continuous Improvement Programs
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1. Customers includes internal and external both.
2. Quality can be improved
3. Broader definition of quality
4. Accurate measurement
5. Empowerment of employees.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Continuous Improvement Programs
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CIP– incremental change
Work Process Re-engineering– Radical or quantum change.
In change programs HRM helps by
• Introducing change
• Preparing individuals for the change
• Train employees
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Continuous Improvement Programs
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Objective 6
The recent concept of Employee involvement and the role of HRM in achieving that
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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Employee Involvement
It’s all about employee empowerment through involvement, which increases worker productivity and loyalty.
Employee Involvement Concepts
delegation • participative management work teams • goal setting • employer training
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The role of HRM in Employee involvement
• Autocratic authority is far gone. Delegation is required.
• It gives greater access to customer demands
• Teams help building and capitalizing on the various skills and background of the employees
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• It requires Leadership Skills.
• Train the employees
• Not only job design is changed by it may need to change the interpersonal skills
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The role of HRM in Employee involvement
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Objective 7
Other HRM challenges
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• Recession: a continuous state of joblessness and inflation.
• Layoffs– the morale suffers. Fear and resentment.
• On a brighter side it is possible to attract and hire better qualified people for jobs.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Recession
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• Off shoring: the process of moving jobs out of one country into another country.
Why off shoring?• Find necessary skills• Lower labor costs• Reduced costs of distribution• To produce better paying jobs in the home
country
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Off shoring
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mergers
Mergers: joining ownership of two organizations
Acquisition: the transfer of ownership and control of one organization to another.
• Loss of jobs
• Differences in culture
• Better way to enter a new market
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins