Chapter 1
HRM
in a Changing Environment
Global Village
No national boundaries in the world of business
Human resources must ensure that the appropriate mix of
employees in terms of knowledge, skills, and cultural diversity
is available to handle global assignments.
Knowledge of the language of the country
Knowledge of the country’s culture
Changing Skills Requirement
Skill deficiencies translate into significant losses for the
organization in terms of poor quality work and lower
productivity, increases in employee accidents, and customer
complaints.
The Management Process
Planning
Controlling Organizing
Leading Staffing
Human Resource Management
The function performed in organizations that facilitates
the most effective use of people (employees) to achieve
organizational and individual goals.
Achieving organizational goals can’t be done without
human resources. It’s people, not buildings, equipment, or
brand name, that make a company.
HRM and Organizational Effectiveness
Performance Training effectiveness
Legal compliance Training return on
Employee satisfaction investment
Absenteeism Grievance rates
Turnover Accident rates
Objectives of the HRM Function (1 of 2)
Helping the organization reach its goals
Employing the skills and abilities of the workforce
efficiently
Providing the organization with well-trained and well-
motivated employees
Increasing to the fullest the employee’s job satisfaction
and self-actualization
Objectives of the HRM Function (2 of 2)
Developing and maintaining a quality of work life that
makes employment in the organization desirable
Communicating HRM policies to all employees
Helping to maintain ethical policies and socially
responsible behavior
Managing change to the mutual advantage of the
organization’s stakeholders
Managing increased urgency and faster cycle time
Who Performs HRM Activities
In most organizations two groups perform HRM activities:
1) HR manager-specialists (staff)
2) Operating managers (line)
Competencies Needed by HR
Professionals
Communication skills Technology
Problem solving Forecasting
Leadership Compensation design
Recruiting/staffing Benefits design and
Employment law administration
Training and Record keeping
Customer Service Orientation
development
Relationship Between Strategy,
Objectives, Policies, and Rules
Strategy – The plan that
integrates major objectives
More specific
Objectives – Goals that are
specific and measurable
More specific
Policies – Guides to decision
making
More specific
Procedures/Rules – Specific
directions for decision making
Corporate Downsizing
Downsizing = rightsizing = restructuring = retrenchment
= de-layering
Concept behind downsizing is to create lean and mean
organizations.
Foreign competition, mergers, and takeovers forced
organizations to trim the fat or the inefficiencies from their
ranks.
Corporate Downsizing
HRM must ensure that proper communications occur
during downsizing.
HRM must minimize the negative effects of rumors and
ensure that individuals are kept informed with factual data.
HRM must prepare individuals for the change. This
requires clear and extensive communications of why the
change will occur, what is to be expected, and the effects it
will have on employees.
Contingent Workforce
Core employees and contingent workers
Core employees are workers who hold full time jobs in
organizations. These employees usually provide some
essential job tasks that require commitment in the
organizations.
Contingent workers include individuals who are typically
hired for shorter periods of time. They perform specific
tasks that often require special job skills and are employed
when an organization is experiencing significant deviations
in its workflow.
Decentralized Worksites
Work is where computer is
HRM and decentralized worksites
Employee involvement
Employees should do more, faster, better, and with
less.
How?
Through delegation, participative management, work
teams, goal setting, and training – employee
empowerment.