Fundamentals of HRM-chap2 -slides PDF

Human Resource Management (Fundamentals) Wassim J. Aloulou [email protected] Table of contents PART I: The Human resource environment Chap1- Managing Human Resources Chap2- Trends in Human Resource Management Chap3-Providing Equal Employment Opportunity and Safe Workplace Chap4- Analyzing Work...

Human Resource Management (Fundamentals) Wassim J. Aloulou [email protected] Table of contents PART I: The Human resource environment Chap1- Managing Human Resources Chap2- Trends in Human Resource Management Chap3-Providing Equal Employment Opportunity and Safe Workplace Chap4- Analyzing Work and Designing Jobs PART 2: Acquiring, Training, and Developing Human Resources Chap5Chap6Chap7Chap8- Planning for and Recruiting Human Resources Selecting Employees and Placing Them in Jobs Training Employees Developing Employees for Future Success Chapter 2: Trends in Human Resource Management Introduction Change in the Labor Force High-Performance Work Systems Focus on Strategy Technological Change in HRM Change in the Employment Relationship What Do I Need to Know? After reading this chapter, you should be able to: LO 2-1 Describe trends in the labor force composition and how they affect HRM. LO 2-2 Summarize areas in which HRM can support the goal of creating a highperformance work system. LO 2-3 Define employee empowerment, and, explain its role in the modern organization. LO 2-4 Identify ways HR professionals can support organizational strategies for growth, quality, and efficiency. LO 2-5 Summarize ways in which HRM can support organizations expanding internationally. LO 2-6 Discuss how technological developments are affecting HRM. LO 2-7 Explain how the nature of the employment relationship is changing. LO 2-8 Discuss how the need for flexibility affects HRM. Introduction Major trends that affect HRM are described: Modern labor force and workforce of the future HRM can support a number of trends in organizational strategy Efforts to maintain high-performance work systems by emphasizing on teamwork and employee empowerment. Major challenges in technology, especially the role of Internet, providing new ways to carry out HRM. Changing nature of the employment relationship, in which careers and jobs are becoming more flexible Change in Labor Force The term labor force is a general way to refer to all the people willing and able to work. Internal Labor Force An organization’s workers Its employees The people who have contracts to work at the organization The internal labor force has been drawn from the external labor market. External Labor Market Individuals who are actively seeking employment. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization. HR professionals need to be aware of trends in the composition of the external labor market because these trends affect the organization's options for creating a well-skilled, motivated internal labor force. Change in Labor Force The key trends are: An aging workforce Change in Labor Force The key trends are: A Diverse Workforce How diversity affects HRM practices‫ ؟‬For example,… from a staffing perspective, it is important to ensure that tests used to select employees are not unfairly biased against minority groups. From the perspective of work design, employees need flexible schedules that allow them to meet non-work needs. In terms of training, employees must be made aware of the damage that stereotypes can do. With regard to compensation, organizations are providing benefits such as elder care and day care as a way to accommodate the needs of a diverse workforce. Successfully managing diversity is also critical for companies that compete in international markets. Change in Labor Force Change in Labor Force The key trends are: Hard to find qualified employees… Relying on training to correct the skill deficiencies Skill Deficiencies of the Workforce Today, employers are looking for: mathematical skills verbal skills interpersonal skills computer skills The gap between skills needed and skills available has decreased companies’ ability to compete. They sometimes lack the capacity to upgrade technology, reorganize work, and empower employees. High-Performance Work Systems HRM is playing an important role in helping organizations gain and keep an advantage over competitors by becoming high-performance work systems. Organizations must make full use of their people’s knowledge and skill, to meet customer demands for high quality and customized products. Skilled HR management can help organizations do this. High-Performance Work Systems There are three key trends occurring in today’s high-performance work systems: 1.Reliance on knowledge workers (specialized knowledge, owning a power, share, collaborate…): To meet their human capital needs, companies are increasingly trying to attract, develop, and retain knowledge workers. 2.The empowerment of employees to make decisions: 3.The use of teamwork High-Performance Work Systems High-Performance Work Systems There are three key trends occurring in today’s high-performance work systems: 1.Reliance on knowledge workers 2.The empowerment of employees to make decisions: Employee empowerment: Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Employee Engagement 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 3.The use of teamwork High-Performance Work Systems There are three key trends occurring in today’s high-performance work systems: 1.Reliance on knowledge workers 2.The empowerment of employees to make decisions: 3.The use of teamwork One of the most popular ways to increase employee responsibility and control is to assign work to teams. Teamwork can motivate employees by making work more interesting and significant. 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 Focus on Strategy HRM as a means to support a company’s strategy. HR professionals are experts of HR systems, but also, strategic partners with other managers. HR Managers use their knowledge of the business and of human resources to help the organization develop strategies and to align HRM policies and practices with those strategies. To do this, HR managers must focus on the future as well as the present, and on company goals as well as HR activities. Adopt an integrated approach to Talent management (acquiring, training, appraising, compensating…). When the organization modifies its strategy, HR professionals are part of the planning process so they can modify talent management efforts to support the revised strategy. Focus on Strategy HRM can support these strategies, including efforts such as: mergers and acquisitions, and restructuring and quality improvement programs. Decisions to downsize or use reengineering and outsourcing can make an organization more efficient and also give rise to many HR challenges. International expansion presents a wide variety of HRM challenges and opportunities. Focus on Strategy Mergers and Acquisitions HRM should have a significant role in carrying out a merger or acquisition. Differences between the businesses involved in the deal make conflict inevitable. Training should include developing conflict resolution skills. There is a need to sort out differences in the two companies’ practices with regard to compensation, performance appraisal, and other HR systems. () regarding Saudi Market??? Famous M&A??? and impacts on HRM/systems Focus on Strategy High-Quality standards Total Quality Management (TQM) TQM is a companywide effort to continuously improve the ways people, machines, and systems accomplish work. The TQM approach provides guidelines for all the organization’s activities, including HRM. TQM Core Values Methods and processes are designed to meet the needs of internal and external customers. Every employee in the organization receives training in quality. Quality is designed into a product or service so that errors are prevented from occurring. The organization promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. Managers measure progress with feedback based on data. Focus on Strategy Cost Control HRM to identify ways for limiting costs related to maintaining a qualified, motivated workforce. Make efficient HRM processes Best alternatives to be recommended to support the company’s strategy Downsizing Downsizing presents a number of challenges and opportunities for HRM. In terms of challenges, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. Early-retirement programs; outplacement services… Boost the moral of employees who remain and maintain open communication with them to build their trust and commitment Focus on Strategy Cost Control Downsizing Reengineering A complete review of the organization’s critical work processes to make them more efficient and able to deliver higher quality. Involves reviewing all the processes performed by all the organization’s major functions. This includes HRM. Reengineering affects HRM in two ways: 1. 2. 3. The way the HR department itself accomplishes its goals may change dramatically. The fundamental change throughout the organization requires the HR department to help design and implement change so that all employees will be committed to the success of the reengineered organization. HR professionals should also help with this transition, as they do for downsizing. Focus on Strategy Cost Control Downsizing Reengineering Outsourcing the practice of having another company (a vendor, third-party provider, or consultant) provide services. For example: outsource its accounting and transportation functions to businesses that specialize in these activities. It is appliable for HR function too! (recruitment processes oursourced… enrolment and training outsourced via digital platforms…) Outsourcing gives the company access to in-depth expertise and is often more economical as well. HR departments help with a transition to outsourcing. Focus on Strategy Expanding into Global Markets Companies are finding that to survive they must compete in international markets They hire from an international labor pool (Global Workforce) and prepare employees for global assignments. Global expansion can pose some challenges for HRM (cultural differences) Popular practices: offshoring, reshoring… International Assignments Besides hiring an international workforce, organizations must be prepared to send employees to other countries. This requires HR expertise in selecting and preparing employees for international assignments. Employees who take assignments in other countries are called expatriates. Technological Change in HRM Table 2.2. Two areas of development have recently been transforming the work of HR departments: advances in information systems and tools for analyzing data about human resources. Technological Change in HRM HR Information System (HRIS): A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization's human resources. can support strategic decision making, help the organization avoid lawsuits, provide data for evaluating programs or policies, and support day-to-day HR decisions. Also Called “human capital management system” The key advantage of investing in an HRIS is that it helps HR professionals think strategically. Keep track of an enormous amount of information related to employees Support talent management Access to HRIS from platforms and mobile devices… Technological Change in HRM People Analytics Applied to HRM, the use of computers to analyze large amounts of data and offer information to guide decisions by applying artificial intelligence AI applications can improve decision making or smooth processes in many areas of HRM: Job analysis. Recruiting and selection. Performance management. Employee relations. Technological Change in HRM Sharing of Human Resource Information e-HRM: the processing and transmission of digitized HR information especially using computer networking and the Internet. e-HRM has the potential to change all traditional HRM functions. Self-Service: System in which employees have online access to information about HR issues and go online to enroll themselves in programs and provide feedback through surveys HR dashboard… 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. Today, organizations’ needs are constantly changing. Change in the Employment Relationship Flexibility: Flexibility in HRM includes flexible staffing levels and flexible work schedules. Flexible Staffing Levels A flexible workforce is one the organization can quickly reshape and resize to meet its changing needs. To be able to do this without massive hiring and firing campaigns, organizations are using more alternative work arrangements. Change in the Employment Relationship Flexibility: Alternative work arrangements are methods of staffing other than the traditional hiring of full-time employees. There are a variety of methods, with the following being most common: Independent contractors On-call workers Temporary workers Contract workers Gig workers Change in the Employment Relationship Flexibility: Flexible Work Schedules Many organizations are taking steps to provide more flexible work schedules, to protect employees' free time, and to more productively use employees' work time. Are valuable way to ease the pressures and conflicts of trying to balance work and non work activities. Summary The chapter described trends in labor force composition and how they affect HRM. Summarized areas in which HRM can support the goal of creating a highperformance work system. Defined employee empowerment, and explain its role in the modern organization. Identified ways HR professionals can support organizational strategies for growth, quality, and efficiency. Summarized ways in which HRM can support organizations expanding internationally. Discussed how technological developments are affecting HRM. Explained how the nature of the employment relationship is changing. Discussed how the need for flexibility affects HRM. Various features Best practices box: Outsourcing Enriches the Bottom Line for Land O’Lakes HR Analytics and Decision Making… “HR Social” box: What Social-Media Policies Are Suitable across Generations? “HR Oops!” box: Less Helpful than a Search Engine? “HR how to” box: Providing HR Services on Mobile Devices “Did you know?” box: Half of U.S. Employees Looking to Change Jobs “Think ethically” box: HOW SHOULD EMPLOYERS PROTECT THEIR DATA ON EMPLOYEES’ DEVICES? Case studies Taking responsibility: Taking Care of People Gives Cisco Systems a Strategic Advantage Managing talent: Netflix Treats Workers “Like Adults” HR in Small Business: Radio Flyer Rolls Forward