Managing Human Resources 19e PDF

Chapter 1: The Opportunities and Challenges of Human Resources Management Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated,...

Chapter 1: The Opportunities and Challenges of Human Resources Management Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Icebreaker: Interview Simulation 1. The class will be broken up into pairs of students. 2. Each pair of students will interview each other to discover interesting or unusual facts. 3. Then each pair will introduce each other to the class. 4. Think about connecting a story from your personal experience to topics that are relevant to this course. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Chapter Objectives (slide 1 of 2) The following objectives are addressed in this chapter: 1.1 Explain how human resource managers and other managers can have rewarding careers by helping their firms gain a sustainable competitive advantage through the strategic utilization of people. 1.2. Explain how good human resource practices can help a firm address. strategic challenges such as globalization, competition, and sustainability efforts. 1.3. Describe how technology can improve how people perform and how they are managed.. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Chapter Objectives (slide 2 of 2) 1.4 Explain the dual goals HR managers have in terms of increasing productivity and controlling costs. 1.5. Discuss how firms can leverage employee differences to their strategic advantage and how educational and cultural changes in the workforce are affecting how human resource managers engage employees. 1.6 Provide examples of the roles and competencies of today’s HR managers and their relationship with other managers Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Why Should You Study Human Resources Management? Will It Pay Off? Human resources management (HRM) – The process of managing human talent to achieve an organization’s objectives Importance: Having a good understanding of human resources management is important for managers and entrepreneurs of all types All managers are responsible for some activities that fall into the category of human resources management. Managers select employees, train and motivate them, appraise them, and promote them. It’s a job that can be incredibly rewarding. Snell, Managing Human Resources, 19Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part  Human Capital and Organizational Culture Human capital – The knowledge, skills, and capabilities of individuals that add economic value. Organizations “compete through people” because success depends on managing human capital. To build human capital, managers develop superior knowledge, skills, and experience and retain and promote top performers. Organizational culture – The shared values, beliefs, and assumptions people in an organization have. Organizational culture affects how people work and treat others.. th Snell, Managing Human Resources, 19 Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Discussion Activity 1 You probably understand organizational culture more than you realize. a. Are there businesses you like to shop with because they perform better and you enjoy the atmosphere and people? b. Are there other businesses that are similar but that you don’t like to shop with? The difference is likely due to organizational culture. What are some examples? Snell/Morris, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.1: Overall Framework for Human Resources Management Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding Strategically to Changes and Disruptions in the Marketplace Agility – A firm’s ability to make quick changes to gain a competitive advantage HR managers cope with ever-changing business conditions by helping redesign their firms to achieve agility. Human Resource Managers and Business Strategies HR professionals can improve the top line by redesigning work to foster innovation, by forecasting labor trends, by recruiting and motivating employees, and by measuring their effectiveness. HR managers can also help their firms with business strategies, as well as mergers, acquisitions, and ways to enter new and global markets. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Competing, Recruiting, and Staffing Globally Importing and exporting goods and services is the easiest way to “go global.” The national identities of products are blurring. Free-trade agreements forged between nations have helped quicken the pace of globalization. GATT paved the way for the formation of many major trade agreements and institutions, and these are continuously changing- The UK exited- “Brexit”- the European Union. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  How Globalization Affects HRM Firms balance the following issues: different geographies, different cultures, employment laws, business practices, and safety Human resource issues underlie these concerns. Relocating managers and training foreign managers occur through Downsizing – The planned elimination of jobs Outsourcing – Contracting outside the organization to have work done that formerly was done by internal employees Offshoring – The business practice of sending jobs to other countries Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Setting and Achieving Corporate Social Responsibility and Sustainability Goals Corporate social responsibility – The responsibility to act in the best interests of people and communities Many firms have ethics codes, and “chief ethics officers.” Being responsible helps avoid lawsuits and improve earnings. Sustainability – Doing business in a way that does little harm to the environment Achieving complete sustainability is nearly impossible, HR should spearhead the development and implementation of corporate citizenship. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge Check Activity 1 Name a company you hope to work for someday. What is its track record in terms of corporate social responsibility and sustainability? Are these factors important to you? Why or why not? Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Technology Challenges (slide 1 of 4) Advancements in information technology have enabled organizations to take advantage of the information explosion. Computer networks “Cloud computing” Document-sharing platforms Videoconferencing Social media networking The Covid-19 pandemic made web and videoconferencing applications like Zoom, Skype, and Microsoft Teams everyday necessities. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Technology Challenges (slide 2 of 4) From Touch Labor to Knowledge Workers Technology has reduced jobs that require little skill and increased jobs that require considerable skill. Knowledge workers – Workers whose responsibilities extend beyond the physical execution of work to include planning, decision-making, and problem-solving There is an increase in knowledge-based training and virtual learning Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Technology Challenges (slide 3 of 4) Technology’s Effect on HRM Human resources information system (HRIS) – A computerized system that provides current and accurate HR-related data for purposes of control and decision-making Used to: Automate payroll processing and administer benefits program Access employee records Recruit, screen, and pretest applicants online Train, track, and promote employees Access th Snell, Managing Human Resources, 19 Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible employee records website, in whole or in part.  Technology Challenges (slide 4 of 4) Technology’s Effect on HRM (cont’d) Big data – A buzzword that describes the massive amounts of data available online and offline today Workforce (HR) analytics – The process of gathering and analyzing data to improve a firm’s human resources management An HRIS should provide HR personnel with analytical information that analyzes, refines, and better implements a firm’s strategic direction. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge Check Activity 2 Will technology eliminate the need for human resource managers? Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Productivity and Cost Challenges Labor costs are often the largest expenditures companies make, particularly in service and knowledge-intensive firms. How can companies actually spend more money on employees and still drive overall costs lower? The answer: via higher employee productivity. Employee productivity is the result of a combination of employees’ abilities, motivation, and work environment, and the technology they use to work. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Maximizing Productivity Productivity – “The output gained from a fixed amount of inputs” Organizations can increase their productivity either by reducing their inputs or by increasing the amount that employees produce by adding more human and/or physical capital to the process. Growth in output per worker is now climbing fast in countries such as China that in the past lacked the technology available to U.S. workers. Additional productivity will have to come from the enhanced ability of employees, their motivation, and their work environment. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Managing the Size of the Workforce To manage the size of the workforce, companies use: Offshoring Outsourcing Nearshoring – Occurs when a firm relocates jobs abroad to nations closer to its domestic market Homesharing – The practice of outsourcing work to domestic workers who work out of their homes Downsizing Furloughing – A situation in which an organization asks or requires employees to take time off for either no pay or reduced pay Part-time or contract employees Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Managing Pay and Benefits Companies are trying numerous approaches to manage pay and benefits. Charging employees higher premiums to cover spouses Giving employees a set amount of money to purchase health insurance on their own Employee leasing – The process of eliminating the jobs of employees who are then hired by a leasing company and contracting with that company to lease back the employees Hiring freelancers, part-time employees, independent contractors, and consultants. In the gig economy, people earn income from various nonpermanent “gigs,” or jobs, and work independently, rather than full time for an employer. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Discussion Activity 2 To combat obesity and other health problems, GlaxoSmithKline, Humana, Mutual of Omaha, and Best Buy have begun utilizing treadmill desks. The treadmills move at a slow speed so employees do not get hot and sweaty and out of breath. What are some of the pros and cons of using treadmill desks at work? Snell/Morris, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge Check Activity 3 Do cost-containment pressures work against the effective management of people? Why or why not? Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Employee Challenges In addition to strategic challenges, companies must attend to important employee concerns. Those challenges include: job security health care diversity employee rights. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding to the Demographic and Diversity Challenges of the Workforce (slide 1 of 6) To forecast trends to support their strategies, HR managers analyze the capabilities of demographic groups and how well each is represented in fast- and slow-growing occupations. The labor force participation rate—the number of people employed or actively looking for work—is declining in the United States, It is predicted to continue to fall due to declining birth rates and the aging U.S. population. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding to the Demographic and Diversity Challenges of the Workforce (slide 2 of 6) Figure 1.2 shows the U.S. labor force participation rate. The rate peaked in 2000 at about 67 percent; however, many people dropped out of the job market. By 2050, the U.S. Bureau of Labor Statistics (BLS) predicts the labor force participation rate will be about 60.2 percent. Snell/Morris, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.2: U.S. Labor Force Participation Rates over Time Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge Check Activity 4 Use Figure 1.2 to examine the reasons workforce participation varies. What is the current trend in workforce participation? What factors are affecting it? Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding to the Demographic and Diversity Challenges of the Workforce (slide 3 of 6) Ethnic and Racial Diversity in the Workforce Ethnic and racial diversity is growing in the workplace. Figure 1.3 shows the number of new temporary work visa approvals from 2010 to 2019. Some businesses, including those in agricultural, face labor shortages that would be more severe without less-skilled immigrants who work for low pay and few or no benefits. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding to the Demographic and Diversity Challenges of the Workforce (slide 4 of 6) In recent years, the federal government and state and local governments have made it harder for firms to hire undocumented workers. Following the widespread protests associated with George Floyd’s death, and Black Lives Matter, many companies have worked to address this important issue. Snell/Morris, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.3: Labor Force Participation Rates of Workers of Hispanic Origin versus Non- Hispanic Origin Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding to the Demographic and Diversity Challenges of the Workforce (slide 5 of 6) Age Distribution of the Workforce Generation Z: born in the mid-1990s and early 2000s. Millenials: (Generation Y), have 75-80 million people and a big impact on the labor market. Generation X: born between 1964 and 1979 are independent, like challenging work, and value job security. Baby boomers: born between 1946 and 1964. are of retirement age but not all retire. Older workers: dependable and remain on the job longer Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.4: Labor Force Participation Rates of Workers in the Labor Force by Their Ages Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responding to the Demographic and Diversity Challenges of the Workforce (slide 6 of 6) Gender Distribution of the Workforce Women constitute a little under half of the U.S. workforce. 60 percent of women 16 and older are in the labor force 70 percent of mothers with school-age children are employed. Three of every five college graduates are women. Women’s wages have increased Top executive positions are still dominated by men. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Figure 1.5: Labor Force Participation Rates by Gender Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge Check Activity 5 Use Figure 1.5 to examine gender trends in the workforce. Students who have work experience can discuss if they think they have been paid the same as others in the same job. Has gender affected their income? Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Educational Shifts Affecting the Workforce Figure 1.6 shows that a college education results in higher wages and lower unemployment rates. Although the educational level of the labor force has risen, American students’ math and science test scores lag behind students in China, Japan, and other nations. Challenges: o American students are said to lag behind in math and science test scores. o American adults score low on literacy, math, and computer skills tests. HR managers have to find strategies to help their firms compete, despite these challenges Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.6: Earnings and Unemployment Rates of Full-Time U.S. Workers by Education Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Adapting to Cultural and Societal Changes Affecting the Workforce (slide 1 of 5) The attitudes, beliefs, values, and customs of people in a society are an integral part of their culture. Naturally, their culture and society affect their behavior on the job and the environment within the organization, influencing their reactions to o work assignments, o leadership styles o reward systems. Cultural and societal changes are ongoing. HR policies and procedures therefore must be adjusted to cope with these changes. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Adapting to Cultural and Societal Changes Affecting the Workforce (slide 2 of 5) Changing Employee Rights Laws affecting employee rights are continually changing. Equal employment opportunities Union representation A safe and healthy work environment Unemployment and health care benefits Regulation of pension plans Equal pay for equal work Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Adapting to Cultural and Societal Changes Affecting the Workforce (slide 3 of 5) Privacy Concerns of Employees Employers are: Implementing privacy policies Limiting the use of social security numbers on employment forms Restricting access to employee files Conducting background checks on employees Contracting with outside firms that specialize in identity theft to prevent abuse of employee information Using the global positioning system (GPS) and smartphone applications to monitor employees Scrutinizing information employees post on the Web and social media Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Adapting to Cultural and Societal Changes Affecting the Workforce (slide 4 of 5) Changing Attitudes Toward Work and How They Relate to Employee Engagement Many employees believe satisfaction results from balancing work challenges and rewards with their personal lives. Employees focus on finding interesting work and pursue multiple careers. Employee engagement – The extent to which employees are enthused about their work and committed to it Firms focus on achieving employee engagement Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Adapting to Cultural and Societal Changes Affecting the Workforce (slide 5 of 5) Balancing Work and Family Employees are working more hours than they have at any time since 1973. Competitive organizations are finding it advantageous to provide employees with more family-friendly options, such as: telecommuting flexible work hours day care elder care, job sharing Assistance with family problems Companies with programs such as these have a powerful way to attract and retain top-caliber people. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  The Role HR Managers Play and Their Partnership with Other Managers By staying abreast of workforce trends and developments and gathering and analyzing data, HR managers help their firms choose the best strategies for: o competing globally o selecting ideal HR systems o maximizing productivity o managing benefits. Line managers – Non-HR managers who are responsible for overseeing the work of other employees Successful organizations combine the experience of line managers with the expertise of HR managers to develop and utilize the talents of employees to their greatest potential. Different types of HR managers specialize in different functions. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Figure 1.7: Positions in HR and Their Median Annual Wages Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Responsibilities of Human Resource Managers The major activities for which HR managers are typically responsible include: Strategic advice and counsel Service Policy formulation and implementation Employee advocacy Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Figure 1.8: Competencies Human Resource Managers Require HR managers need: Leadership and navigation, Ethical practice Business acumen Relationship management Consultation Critical evaluation Global & cultural effectiveness Communication HR expertise. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.8: Human Resource Competency Model Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Polling Activity Question: In your opinion, what is the most important role HR managers play? a. Business mastery b. HR masters c. Personal credibility Snell/Morris, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Polling Activity Answer This question is meant to stimulate conversation about: The complementary roles within HRM How they fit together How they support the business. Without any one of the roles, the pyramid shown in Fig. 1.8 topples. In today’s organizations, personal credibility and/or ethics may be the most central role. Without it, nothing else much matters. Snell/Morris, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Summary Now that this lesson has ended, you will have learned how to: 1.1. Explain how human resource managers and other managers can have rewarding careers by helping their firms gain a sustainable competitive advantage through the strategic utilization of people. 1.2. Explain how good human resource practices can help a firm address strategic challenges such as globalization, competition, and sustainability efforts. 1.3. Describe how technology can improve how people perform and how they are managed.. Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Summary 1.4. Explain the dual goals HR managers have in terms of increasing productivity and controlling costs. 1.5. Discuss how firms can leverage employee differences to their strategic advantage and how educational and cultural changes in the workforce are affecting how human resource managers engage employees. 1.6 Provide examples of the roles and competencies of today’s HR managers and their relationship with other managers Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.