Muhammad Haris ..

1. Human Resource
Management
Chapter 1
Strategic Implications of a Dynamic HRM Environment

2. Introduction
• The World of Work - continues to change, but at
an even more rapid pace.
• HR must understand the implications of:
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globalization
technology changes
workforce diversity
changing skill requirements
continuous improvement initiatives
the contingent work force
decentralized work sites
and employee involvement

3. Understanding Cultural Environments
• Today’s business world is truly a global village.
This term refers to the fact that businesses
currently operate around the world.

4. Understanding Cultural Environments
• HRM must ensure that
 employees can operate in the appropriate language
 communications are understood by a multilingual work force
• Ensure that workers can operate in cultures that differ on
variables such as
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status differentiation
societal uncertainty
assertiveness
individualism
• HRM also must help multicultural groups work together.

5. Understanding Cultural Environments
• GLOBE Dimensions:
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Assertiveness
Future Orientation
Gender Differentiation
Uncertainty Avoidance
Power Distance
Individualism/collectivism
In-group collectivism
Performance orientation
Humane orientation

6. Understanding Cultural Environments
• Cultural Implications for HRM
 Not all HRM theories and practices are
universally applicable.
 HRM must understand varying cultural values.

7. The Changing World of Technology
• Has altered the way people work.
• Has changed the way information is
created, stored, used, and shared.
• The move from agriculture to
industrialization created a new group of
workers – the blue-collar industrial worker.
• Since WWII, the trend has been a
reduction in manufacturing work and an
increase in service jobs.

8. The Changing World of Technology
• Knowledge Worker - individuals whose jobs are
designed around the acquisition and application
of information.
• Why the emphasis on technology:
 makes organizations more productive
 helps them create and maintain a competitive
advantage
 provides better, more useful information

9. The Changing World of Technology
• How Technology Affects HRM Practices
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Recruiting
Employee Selection
Training and Development
Ethics and Employee Rights
Motivating Knowledge Workers
Paying Employees Market Value
Communication
Decentralized Work Sites
Skill Levels
Legal Concerns

10. HRM / HRD
Point of distinction
HRM
HRD
1. status
It is and independent functions with
independent sub function.
It is an integrated system consisting
of interdependent sub system
2. orientation
It is a service and reactive function
It is a proactive function
It seeks to improve efficiency of
people and administration
It seeks to develop total
organization and its culture.
4. incentives used
It focuses on salary, economic
rewards, job simplification and job
specification for motivating people.
It focuses on autonomous work
group. Job challenges and creativity
for motivating people
5. responsibility
It is considered to be responsibility
of hrm
It is the responsibility of all
manager
3. aims

11. Workforce Diversity
• The challenge is to make organizations
more accommodating to diverse groups of
people.

12. Workforce Diversity
• The Workforce Today
– minorities and women have become the
fastest growing segments
– the numbers of immigrant workers and older
workers are increasing

13. Workforce Diversity
• How Diversity Affects HRM
 Need to attract and maintain a diversified
work force that is reflective of the diversity in
the general population.
 Need to foster increased sensitivity to group
differences.
 Must deal with the different
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Values
Needs
Interests
Expectations of employees

14. Workforce Diversity
• What Is a Work/Life Balance?
 A balance between personal life and work
 Causes of the blur between work and life
• The creation of global organizations means the
world never sleeps.
• Communication technologies allow employees to
work at home.
• Organizations are asking employees to put in
longer hours.
• Fewer families have a single breadwinner.

15. Labor Supply
• Do We Have a Shortage of Skilled Labor?
 The combination of the small Gen-X
population, the already high participation rate
of women in the workforce, and early
retirements will lead to a significantly smaller
future labor pool from which employers can
hire.

16. Labor Supply
• Why Do Organizations Lay Off During
Shortages?
 Downsizing is part of a larger goal of
balancing staff to meet changing needs.
 Organizations want more flexibility to better
respond to change.
 This is often referred to as rightsizing, linking
employee needs to organizational strategy.

17. Labor Supply
• How Do Organizations Balance Labor
Supply?
 Organizations are increasingly using
contingent workers to respond to fluctuating
needs for employees.
 Contingent workers include
• Part-time workers
• Temporary workers
• Contract workers

18. Labor Supply

19. Labor Supply
• Issues Contingent Workers Create for
HRM
 How to attract quality temporaries
 How to motivate employees who are receiving
less pay and benefits
 How to have them available when needed
 How to quickly adapt them to the organization
 How to deal with potential conflicts between
core and contingent workers

20. Continuous Improvement Programs
• Continuous improvement - making
constant efforts to provide better products
and service to customers
 External
 Internal
• Quality management concepts have
existed for over 50 years and include the
pioneering work of W. Edwards Deming.

21. Continuous Improvement Programs
• Key components of continuous
improvement are:
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Focus on the customer
Concern for continuous improvement
Improvement in the quality of everything
Accurate measurement
Empowerment of employees

22. Continuous Improvement Programs
• Work Process Engineering involves radical,
quantum changes to entire work processes.
• How HRM Assists in Work Process Engineering
 Helps employees deal with the emotional aspects of
conflict and change
 Provides skills training
 Adapts HR systems, such as compensation, benefits,
and performance standards.

23. Employee Involvement
• Delegation – having the authority to make
decisions in one’s job
• Work teams – workers of various specializations
who work together in an organization
• HRM must provide training to help empower
employees in their new roles.
• Involvement programs can achieve:
 greater productivity
 increased employee loyalty and commitment

24. A Look at Ethics
• Three views of ethics:
 Utilitarian View – decisions are made on the basis of
their outcomes or consequences
 Rights View – decisions are made with concern for
respecting and protecting individual liberties and
privileges
 Theory of Justice View – decisions are make by
enforcing rules fairly and impartially
• Code of ethics - a formal document that states
an organization’s primary values and the ethical
rules it expects organizational members to
follow.

25. Chapter # 1 KEY TERMS
•Human Resource Management
•Human Resources
•Globalization
•Downsizing
•Rightsizing
•Outsourcing
•Core Employees
•Continuous Improvement
•Merger
•Acquisition
•Ethics
•Management
•Planning
•Organizing
•Leading
•Controlling
•Strategic Human Resource
Management
•Staffing Function
•Training & Development Function
•Motivation Function
•Maintenance Function
•Communication Programs
•Labor Union
•Management Thought
•Scientific Management
•Compensation and Benefits
•Employee Relation Function
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