SHRM-TOPIC-1-9 PDF - Human Resource Management

INTRODUCTION (MAAM’S LESSONS) Modern Role: Expanded to include hiring, firing, employee engagement, talent development, and Strategic Human Resource Management: The process of...

INTRODUCTION (MAAM’S LESSONS) Modern Role: Expanded to include hiring, firing, employee engagement, talent development, and Strategic Human Resource Management: The process of creating a safe, equitable work environment. aligning HR strategies with organizational goals to enhance performance and achieve business objectives. The 3 Ps in Business Business Stakeholders to Keep Happy 1.People: Employees, customers, and stakeholders are critical to success. 1. Investors 2.Profit: The financial viability of the business to sustain Provide capital and expect returns. operations and growth. Require transparency and strong business performance. 3.Planet: Commitment to sustainability and reducing environmental impact. 2. Customers Concepts in Business Management VUCA Drive revenue and sustainability of the business. *Volatile, Uncertain, Complex, Ambiguous Expect quality products/services and excellent *A framework to understand challenges in an customer service. unpredictable and rapidly changing environment. 3.Employees * Requires businesses to: The backbone of operations and innovation. Out-think: Develop innovative strategies. Need motivation, fair treatment, and a safe Out-plan: Prepare for contingencies. working environment. Out-play: Stay ahead of the competition. BANI Role of Human Resources (HR) Brittle, Anxious, Nonlinear, Incomprehensible * Highlights the fragility of systems, unpredictability, and HR ensures the smooth functioning of the rapid pace of change. organization by focusing on the following areas: *Emphasizes resilience, adaptability, and critical thinking. Core Functions of HR Adult Learning Framework (70-20-10 Model) * Hiring and Onboarding - Assist in attracting, selecting, 70% Experience: Learn through practical, hands-on tasks. and onboarding the right talent. 20% Feedback: Gain insights from mentoring, coaching, *Records Management - Maintain accurate and and reviews. confidential employee data. 10% Formal Learning: Acquire knowledge via courses, seminars, or training programs. *Work Environment Implementation - Create policies ensuring a positive, safe, and inclusive workplace. Mission - Objectives of the company *Employee Relationship Management - Handle Vision - desired future and aspiration disputes, foster communication, and maintain employee satisfaction. CHAPTER ONE: GAINING A COMPETITIVE ADVANTAGE Companies must actively meet the needs of their *Consultation - Act as a mediator between management stakeholders to ensure their success and long-term and employees to address concerns effectively. growth. HR ensures compliance, manages employee Evolution of HR Function records, supports hiring, training, and performance, and helps the company succeed by ensuring employee well- Traditional Role: Focused primarily on administrative being and productivity. In some companies, HR may have tasks like payroll and paperwork. full control over its activities, while in others, responsibilities are shared with departments like finance, operations, or IT. HR may either advise top management or make decisions on staffing, training, and communication, and HR practices while addressing the compensation based on business strategies To practice risks of cybersecurity and job automation. human resources effectively, we need to understand the 9 functional areas of knowledge, ski ls, and abilities. HRM at the Crossroads - Human Resource Management is evolving from a purely administrative HR Technical Expertise and Practice function to a more strategic role. This shift involves Relationship Management balancing traditional tasks with forward-thinking Consultation strategies to improve organizational success and address Organizational Leadership and Navigation dynamic business environment. Communication Global and Cultural Effectiveness Transactional Activities - Routine administrative tasks Ethical Practice such as payroll processing, employee record-keeping, Critical Evaluation and compliance management. These activities are Business Acumen (HR COC GECB) essential but do not directly contribute to strategic business goals. HR has evolved from administration to a strategic role, focusing on future planning, change agent, and employee Traditional Activities - Core HR functions like advo, while proving its impact through data recruitment, training, performance evaluation, and compensation management. These activities help Competitive Challenges Influencing Human Resource manage and develop the workforce to meet Management (SHE GOT TTT) organizational needs. Sustainability - The ability to balance economic, social, and environmental goals to ensure long-term growth and Transformational Activities - Strategic initiatives that success. In HRM, it involves creating strategies that align HR practices with long-term business objectives. support business objectives while promoting Examples include workforce planning, change environmental stewardship, employee well-being, and management, and using data-driven approaches to social responsibility enhance employee engagement and organizational performance. The Global Challenge -The issues organizations face when operating in an interconnected global economy, CHAPTER TWO: HUMAN RESOURCE ENVIRONMENT such as managing culturally diverse workforces, 1.Seven Steps in the Strategic Management Process: complying with international regulations, and addressing (DEFS DIE) global competition 1. Define the Business: Ask, 'What business are we in?' Example: Coca-Cola defines itself as a soft-drink Entering International Markets -The process of company, whereas PepsiCo includes both beverages and expanding business operations into foreign countries. snacks. This includes adapting products, services, and HR practices to suit different cultural, legal, and economic 2. Evaluate Strengths and Weaknesses: Perform a environments SWOT analysis to assess internal strengths and external threats. Offshoring - Moving specific business processes or Example: Apple's strength is its brand loyalty, while a functions (like manufacturing or customer support) to potential threat could be market saturation. another country to reduce costs or gain operational efficiencies 3. Formulate a New Business Direction: Redefine The Technology Challenge - The need to adopt and what the company should focus on. leverage technological advancements to improve Example: Yahoo deciding whether to sell its search operational efficiency, data management, business and focus on content.  4. Set Strategic Goals: Define measurable goals 3. Training hours per employee: The number of hours based on the new direction. dedicated to training employees. Example: Ford’s goal of 'no more than 1 defect per 10,000 cars' when improving quality. 4. Employee satisfaction: Survey-based metric assessing 5. Develop Strategies: Choose specific strategies to employee happiness. achieve the goals. Example: Ford opening high-tech plants to achieve its 5.Revenue per employee: How much revenue each quality goal. employee generates for the company. 6. Implement the Plan: Take action to put the strategies into place, like hiring new employees or launching new products. 5.High-Performance Systems:(CEEPF) 7. Evaluate Results: Continuously review the 1. Clear Performance Metrics: Employers should define outcomes and make adjustments. clear, measurable performance goals. Example: Assessing the success of a new product line and 2. Effective Training Programs: Invest in comprehensive adjusting based on customer feedback. training to improve skills. 3. Employee Involvement: Encourage employees to 2. Main Types of Strategies: participate in decision-making processes. Corporate-Level Strategy: Focuses on which businesses 4. Performance-Based Incentives: Implement incentives the company should be involved in. based on performance. Example: PepsiCo diversifying into snacks with Frito-Lay. 5. Flexible Work Systems: Use flexible work arrangements to increase job satisfaction. Competitive Strategy: Determines how a company will compete in a particular market. 6. Executing a Program to Improve Employee Example: Walmart’s cost-leadership strategy to offer the Engagement: (STIIOA) lowest prices. Step 1: Set measurable objectives like improving Functional Strategy: Defines how each department communication or reducing turnover. supports the competitive strategy. Example: HR strategies that ensure skilled personnel for Step 2: Train managers in leadership skills and monitor the company's goals. progress through feedback. 3. Strategic Human Resource Management Step 3: Implement recognition programs such as Definition: The alignment of HR policies and practices employee awards or thank-you cards. with the strategic goals of the company. Example: Ritz-Carlton’s HR practices to improve customer Step 4: Improve internal communication via meetings service by hiring employees who embody the company’s and employee forums. values. Example in Practice: At the Shanghai Ritz-Carlton, new HR Step 5: Offer personalized development plans based on strategies like focusing on talent and customer care appraisals and career aspirations. helped to improve customer service and boost profitability. Step 6: Align compensation policies with the new engagement strategy. 4. Examples of HR Metrics: (ECRTE) 1.Employee turnover rate: Measures how often Here is a summary of the key points from the document, employees leave the company. with a highlight on the implementation of strategy: Notes on Strategic HRM Plans: 2. Cost per hire: The total cost involved in hiring an 1. The Importance of Strategic Planning: employee. - HRM (Human Resource Management) evolved from Monitoring and Adapting the Strategy: personnel management and now plays a central role in Monitoring: A good HRM strategic plan is continuously achieving organizational goals. reviewed and adapted to organizational changes. - Strategic planning in HRM helps align hiring, training, and employee management with the company's overall Measuring Success: Success metrics should be built into objectives. the plan. Goals should be specific, measurable, and Example: James, an HR manager at Techno Inc., realized adaptable as business needs evolve. the importance of strategic planning after hiring too many people during a temporary growth phase, resulting Flexibility: HR managers must be aware of external in layoffs. This highlighted the need to align HR actions factors like economic shifts and legislative changes that with long-term business forecasts. could impact their strategy. For example, adjusting plans if sales forecasts change or if new laws affect payroll. 2. HRM vs. Personnel Management: * Personnel management focuses on administrative CHAPTER THREE: ANALYSIS AND DESIGN OF WORK tasks like hiring, while HRM is more strategic, focusing on broader goals like company culture, training, and long- 1. Workflow Design - The process of analyzing tasks term workforce development. necessary for producing a product or service, before allocating these tasks to a specific job or * Key duties include staffing, policy development, individual. compensation, retention, training, and safety regulation 2. Workflow Analysis - A systematic process of compliance. examining an organization's workflows to Highlighted Section: Implementation of Strategy: improve operational efficiency. 1. The Role of Strategy in HRM: 3. Organizational Structure - A system outlining * HR strategy is a systematic plan aligned with the how activities are directed to achieve an company's strategic objectives. HR plans include short- organization’s goals. term tasks like hiring, while HRM strategies focus on long- *Dimensions: Centralization and term goals. Departmentalization. * David Ulrich’s HR model emphasizes that HRM must be 4. Job Analysis - A systematic method to identify aligned with global business strategies. This involves and document job tasks, responsibilities, acting as a strategic partner, change agent, administrative necessary skills, qualifications, and working expert, and developer of human capital. conditions. 2. Steps to Strategic Plan Creation: 5. Job Description - A formal document detailing * Conduct a strategic analysis: Understand the the duties, responsibilities, and qualifications company’s mission, values, and lifecycle. Ensure the HRM associated with a specific job role. strategy aligns with organizational phases like growth or 6. Job Design - The process of organizing tasks decline. and responsibilities to create a specific job role. * Identify HR issues: Analyze gaps in current HR 7. Job Redesign - Modifying existing job roles to operations that may prevent the organization from adapt to organizational needs, employee achieving its goals (e.g., lack of training or compensation feedback, or technology changes. policies). * Prioritize actions: Work with management to address top HR concerns, and develop an action plan to address Stages of Workflow Analysis these issues. * Draw up an HRM plan: The final plan should include 1. Analyzing Work Outputs - Focuses on identifying clear steps for staffing, recruiting, training, and the end products or results of the work process. compensation, with flexibility to adjust as the business environment changes. 2.Analyzing Work Processes -Examines steps, activities, and tasks involved in creating outputs.  3.Analyzing Work Inputs -Reviews resources like 2. Enhancing employee involvement labor, materials, equipment, and information needed 3. Increasing flexibility for tasks. 4. Implementing technology 5. Redefining roles and responsibilities Organization Structure 6. Promoting work-life balance A framework that outlines how tasks and responsibilities are divided, coordinated, and 7. Monitoring and evaluating changes managed within an organization. It ensures activities are directed efficiently to achieve the organization’s goals. CHAPTER FOUR: PERFORMANCE MANAGEMENT Performance Management: A systematic process where managers ensure employee outputs align with Two Critical Dimensions organizational goals. 1.Centralization Purpose of Performance Management: Refers to the degree to which decision-making * Strategic Purpose: Aligning employee behavior with authority is concentrated at higher levels in the organizational goals. organization. Highly centralized structures place decision-making power with top management, while * Administrative Purpose: Supporting decisions on decentralized structures distribute authority across salaries, benefits, and recognition. various levels. * Developmental Purpose: Enhancing employees’ skills 2. Departmentalization and knowledge. The method of grouping tasks and activities into Stages of Performance Management: departments based on function, product, geography, 1. Specify relevant aspects of performance. customer, or process. It organizes work to improve coordination and achieve organizational objectives 2. Appraise performance. efficiently. 3. Provide performance feedback. Core Concepts in Job Design Criteria for Effective Performance Management: Refers to the process of organizing tasks, * Fit with Strategy. responsibilities, and systems to create a specific job role within an organization. * Validity. * Task variety * Reliability. * Task identity * Acceptability. * Task significance * Specific Feedback. *Autonomy Approaches to Measuring Performance: *Feedback * Comparison Methods: Strategies for Job Redesign 1. Simple Ranking: Rank employees from highest to lowest performer. Job redesign involves making changes to existing job roles to improve them based on evolving organizational needs, 2. Forced-Distribution Method: Assign fixed percentages employee feedback, or changes in technology. to categories. 1. Reassessing job requirements 3. Paired-Comparison Method: Compare employees with CHAPTER FIVE: ASSESSMENT AND DEVELOPMENT OF one another. HUMAN RESOURCES * Rating Attributes: Approaches to Employee Development 1. Graphic Rating Scale: Rate employees on predefined 1. Formal Education traits. Structured learning experiences provided or 2. Mixed-Standard Scales: Rate based on high, medium, subsidized by the employer, such as workshops, and low performance levels. seminars, certifications, degree programs, and training courses. * Rating Behaviors: 2. Assessment 1.Critical-Incident Method: Use records of effective/ineffective behaviors. Evaluating an employee’s current skills, competencies, and potential for future growth, 2. Behaviorally Anchored Rating Scale (BARS): Rate ensuring alignment with organizational needs. behaviors on specific statements. 3. Job Experience 3. Behavioral Observation Scale (BOS): Observe behaviors for task effectiveness. Hands-on learning gained through work tasks, Sources of Performance Information: job rotations, or leadership roles. * Managers, Peers, Subordinates, Self, and Customers. 4. Interpersonal Development Giving Performance Feedback: Focuses on soft skills such as communication, teamwork, emotional intelligence, and conflict * Steps: resolution. 1. Schedule the session. Development-Related Challenges 2. Prepare for the session. 1. Glass Ceiling - A barrier that prevents women and 3. Conduct the session. minorities from reaching top-level positions. Solutions include coaching, mentoring, and access to * Approaches: developmental job assignments. 1. Tell-and-Sell. 2. Succession Planning - Prepares qualified employees to fill management positions as they become vacant. Key 2. Tell-and-Listen. components include: 3. Problem-Solving. * Identifying high-potential employees. *Providing developmental experiences. Addressing Performance Problems: *CEO involvement with potential successors. * Diagnose issues (e.g., lack of ability, motivation, or both). 3.Dysfunctional Managers - Targeted development programs address dysfunctions in managers by: * Develop improvement plans based on specific deficiencies. Strategic Alignment: * Collecting personality, skill, and interest data. * Link measurements and feedback directly to *Providing feedback, training, and counseling. organizational objectives. * Applying new behaviors in the workplace. Employee Separation - Occurs when an employee leaves a company, either voluntarily or involuntarily. Clear rules and processes are essential to manage separations 1. Work conditions. effectively. 2. Compensation. Principles of Justice in Separation: 3. Relationship with colleagues or supervisors. 1. Outcome Fairness: Ensures consistent and fair consequences for all employees. Employee Retention - The organizational goal of 2. Procedural Justice: Transparency and consistency in retaining talented and productive employees while decision-making processes. minimizing turnover. 3. Interactional Justice: Respect and dignity during Strategies for Retention: communications and interactions. 1. Onboarding: A robust onboarding process to integrate Legal Requirements in Employee Separation: new hires effectively. 1. Wrongful Discharge: Avoiding violations of implied 2. Recognition and Rewards: Incentives for performance agreements or public policies. and milestones. 2. Discrimination: Preventing bias based on protected 3. Competitive Benefits: Offering attractive pay, benefits, characteristics like age, race, or sex. and perks. 3. Employee Privacy: Balancing privacy rights with job- 4. Performance Feedback and Reviews: Regular related information needs. evaluations to foster growth. 4. Notification of Layoffs: Providing legally required 5. Training and Development: Opportunities for career notice for large-scale terminations. advancement. 6. Work-Life Balance: Promoting a healthy and supportive work environment. Alternative Dispute Resolution (ADR) Chapter 6 - Strategic HRM Concepts Methods to resolve conflicts without litigation: 1. Strategic HRM: An approach to align organization’s goals with HR strategies, policies, and practices. * Open-Door Policy Basis: * Peer Review * HR is a strategic asset and source of competitive * Mediation advantage. * Arbitration * Integration of HR strategies with business plans. * Internal coherence among HR strategies for mutual Employee Assistance Program (EAP): A referral service support. for employees needing professional help with emotional * Principles (Ondrack and Nininger): issues or substance abuse. - Clear organizational purpose with evident HR Outplacement Counseling: Support for dismissed dimensions. employees transitioning to new jobs. - Strategy development processes explicitly include HR considerations. Job Withdrawal - Continuous linkages between HR and decision-making Employees’ behaviors to avoid work physically, mentally, processes. or emotionally, often caused by job dissatisfaction. Factors influencing dissatisfaction include: Resource-Based View (RBV): Focuses on leveraging - Strategic Configuration Model (Miles and human capital as a key resource for sustained Snow): Categorizes strategies as prospector, competitive advantage. defender, analyzer, or reactor. Strategic Fit: HR strategies align with organizational goals (vertical integration). Bundling (Configurational Approach): Strategic Flexibility: Enables adaptation to competitive Combines complementary HR practices for mutual and environmental changes. reinforcement. Perspectives on Strategic HRM: Chapter 7 - Strategic Planning and Goal Setting Universalistic Perspective: Universal "best practices" Mission and Vision Statements: improve organizational performance. Mission: Communicates purpose, values, and direction. Contingency Perspective: Effectiveness depends on Vision: Inspires confidence, celebrates diversity, and alignment with organizational context. aligns with nature and sustainability. Configurational Perspective: Interrelated HR practices form a coherent system driving performance. Organizational Self-Assessment: Evaluates internal factors (strengths, weaknesses) and Best-Practice Approach: external factors (threats, and opportunities.) Examples by Jeffrey Pfeffer: Components include: - Employment security. * Financial, physical, human, technological, and capital - Selective hiring. resources. - Self-managed teams. - Performance-based pay. * Management systems (culture, structure, decision- - Training and development. making processes). - Reducing status differences. - Information sharing. Examples by Delery & Doty: Goals and Objectives: - Internal career paths. Goals: Broad and long-term. - Formal training. Objectives: Specific, measurable, and time-bound. - Result-oriented appraisals. - Flexible jobs. Prioritization: Urgent Goals: Require immediate action. Long-Term Goals: Need sustained effort over time. Best-Fit Approach: Tailors HR strategies to organizational context and stage of growth. SMART Goals: Supporting Models: Specific: Clearly defined outcomes (e.g., launch a product - Life Cycle Model: HR strategies evolve through for sensitive skin). start-up, growth, maturity, and decline. Measurable: Quantify progress (e.g., 15% sales increase in six months). - Competitive Strategy Model (Michael Porter): Emphasizes innovation, quality, and cost Achievable: Realistic based on resources (e.g., introduce leadership. three new products). Relevant: Align with organizational mission (e.g., Topic 1: Overview of Evaluation inclusivity in beauty). 1. Strategic Evaluation: Time-Bound: Set deadlines (e.g., launch by February Purpose: To check if a strategy aligns with and achieves 2025). organizational goals. Process: Makes necessary adjustments based on Action Plan Development: evaluations. Steps: Levels: - Define objectives. Strategic Level: High-level objectives and long-term - Break them into tasks. impacts. - Assign responsibilities and deadlines. Operational Level: Day-to-day activities and short-term - Allocate resources. outcomes. - Monitor and adjust. Benefits: Monitoring and Evaluation (M&E): Tracks progress using Key Performance Indicators (KPIs): - Stay aligned with strategic goals. - Optimize resource use. Sales Metrics: Revenue from new products. - Improve decision-making. Engagement Metrics: Social media followers after campaigns. Chapter 8 - STRATEGIC HUMAN RESOURCE IN ACTION Customer Retention: Repeat purchase rate. Approaches to Evaluation Sustainability Metrics: Use of eco-friendly packaging. Refers to methods and frameworks used to assess effectiveness and outcomes of a strategy. Corporate and Business Unit Strategies: Example Approach: Corporate Strategy: Broad organizational objectives. Goal-Setting Approach: Setting measurable objectives - Growth, stability, turnaround/retrenchment (e.g., increasing app usage by 25%) and evaluating actual strategies. outcomes. Business Unit Strategy: Market-focused plans (cost Seven Approaches to Evaluation (Enumeration): leadership, differentiation, focus). Evaluating Strategic Contributions Management Logics: 1.HR Basics: HR connects talent with company goals, Investment Logic: Encourages creativity with loose improves engagement, and boosts productivity. controls. Key HR Roles: Inducement Logic: Emphasizes cost efficiency with tight Recruitment and Selection: Hiring employees controls. who align with company culture and skills needs. Involvement Logic: Balances innovation and efficiency. Compensation & Benefits: Providing competitive packages to retain employees. Training & Development: Enhancing employee skills and preparing them for future responsibilities. 2. Strategic Alignment: Aligning HR practices with Chapter 9 - SPECIAL TOPICS IN HUMAN RESOURCES business strategies leads to improved performance and Collective Bargaining - Negotiation process between profitability. employers and employees to determine terms of 3. Data-Driven Decisions: Use of HR analytics to guide employment, such as wages, hours, benefits, and strategies and improve outcomes. working conditions. Key Metrics: Employers - They are the ones who hire people to work for them. Their main role is to manage the business, Employee Turnover Rate: Measures retention make decisions, and pay employees for their work. and identifies workplace issues. Examples: Business owners, company managers, or Employee Satisfaction Scores: Reflects morale executives. and engagement. Employees - They are the ones who work for the Training Completion Rates: Tracks success of employer. development programs. Examples: Teachers, office staff, factory workers or service providers Evaluation of Human Resource 1. HR Evaluation: Process of assessing the value Key Stages in Collective Bargaining individuals bring to an organization. 1. Preparation - This stage involves gathering Methods: information, setting objectives, and strategizing before Qualitative: Metrics like employee absenteeism rates. negotiations begin. Quantitative: Statistical analyses of workforce 2. Negotiation - During this stage, representatives from performance. both sides (employers and employees) discuss and Benefits: compromise on issues such as wages, working conditions, and benefits. - Identifies skills gaps. - Enables targeted training programs. 3. Agreement - Once negotiations conclude, an agreement is reached that outlines the terms and 1. Strategy: A plan of action to achieve a specific goal. conditions agreed upon by both parties. 2. Evaluation: Assessing effectiveness and outcomes. 4. Implement and Monitoring - This stage involves 3. Profitability: The financial gain from organizational putting the agreed-upon terms into practice and activities. monitoring compliance with the agreement to ensure both parties fulfill their obligations. 4. Compensation: Rewards given to employees for their work. 5. Productivity: The efficiency of output relative to input. Labor Relations - Focuses on managing the relationship between employers, employees, and unions 6. Recruitment: Process of attracting and selecting candidates. Components of Labor Relations 7. Performance: The execution of tasks or duties. 1. Conflict Resolution - The process of addressing and resolving disputes between employers and employees or 8. Assessment: Evaluation or analysis to determine value their representatives to maintain a harmonious work or outcomes. environment. 2. Policy Development - Creating and implementing workplace policies that define roles, responsibilities, and procedures, ensuring fair and consistent treatment of all Political-Legal Systems - Employers expanding abroad employees. must be familiar with the labor law systems in the countries they’re entering. The country’s laws often 3. Compliance - Ensuring adherence to labor laws, dictate the requirement for HRM practices: training, regulations, and agreements to protect the rights of compensation, hiring, firing, and layoffs. workers and employers while avoiding legal issues. Factors Affecting HRM in International Markets Education - The educational and skill levels of a country’s labor force affect how and the extent to which Culture - Countries differ widely in their cultures in the companies want to operate there. basic values that their citizens share, and in how these Types of International Staffing values manifest themselves in the nation’s arts, social programs, and ways of doing things. 1. Expatriates - are noncitizens of the countries in which they are working Hofstede’s Five Dimensions of Culture 2. Home-Country Nationals - citizens of the country in 1. Individualism/Collectivism - describes the strength of which the company is headquartered. the relation between an individual and other individuals in the society 3. Locals/Host-Country Nationals - work for the company abroad and are citizens of the countries where they are 2. Power distance - concerns the way the culture deals working. with unequal distribution of power and defines the amount of inequality that is normal 4. Third-Country Nationals - are citizens of a country other than the parent or the host country 3. Uncertainty avoidance - describes how culture handle the fact that the future is unpredictable 4. Masculinity/Femininity - emphasis a culture places of Selecting International Managers practices or qualities that have traditionally been considered masculine (eg. competitive) or feminine (eg. 1. Testing - Employers use tools like the Overseas cooperation) Assignment Inventory (OAI) to assess potential expatriates 5. Long-term/Short-term orientation - suggests whether the focus of cultural values is on the future (long term) or 2. Realistic Previews - Before sending employees abroad, the past and present (short term) companies provide a realistic preview of what life will be like in the host country. 3. Adaptability Screening - Companies assess a Economic Systems - Differences in economic systems candidate’s ability to adjust to a new culture through translate into differences in intercountry HR practices. adaptability screening Economists distinguish among market, planned, and 4. Selection Trends - Employers look at a combination of mixed economies. factors to select expatriates, including technical skills, Market economies - governments play a willingness to move, cultural adaptability, leadership relatively restrained role in deciding things such as what ability, and previous performance. will be produced and sold, at what prices. Planned economies - the government decides Strategic HRM - is the process of aligning HR practices and plans what to produce and sell, at what price. with an organization’s strategic goals to achieve a Mixed economies - many industries are still competitive advantage. under direct government control, while others make Roles of HRM pricing and production decisions based on market demand. 1. Strategic Planning - HR is directly involved in developing strategies and provides workforce analytics, talent forecasts, and succession planning. Helps leaders make data-driven decisions. 2. Aligning Workforce Skills - HR ensures employees' skills match the company's needs. Upskills employees in areas like AI or cybersecurity during tech expansions. 3. Employee Engagement and Productivity - HR designs initiatives such as rewards programs and wellness plans. Keeps employees motivated and productive through clear communication. External Factors that Influence HRM Government Regulations - Compliance with labor laws, like minimum wage and workplace safety, is crucial. Strategic HR ensures policies meet these legal standards. Economic Conditions - During recessions, HR might focus on retaining key talent and managing layoffs strategically. Workforce Diversity - A diverse workforce fosters innovation and mirrors global customer bases. HR creates inclusive hiring practices to achieve this. Globalization - With companies operating across borders, HR manages global teams and ensures cultural sensitivity. Technology - HR uses tools like AI for recruitment and analytics to predict future talent needs. Strategic HR Models (ARDM) Acquiring - Recruiting the right talent. Developing - Training and improving employee skills. Rewarding - Providing fair pay and benefits. Maintaining - Creating a supportive work environment