Chapter 01 - Hrm In Changing Environment 46hd

Chapter One HRM in a Changing Environment Lectured by Mr. Samath Houy Tel: 012 211 345 Email: [email protected] 1

Objectives After completing this chapter, you will be able to:  Discuss how cultural environments affect HRM practices  Identify the organizational assets and core competencies in HR areas  Define human capital and identify the seven categories of HR activities  Describe how technology is changing HRM  Describe how the major roles of HR management are being transformed  Provide an overview of six challenges facing HR today

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21st-Century Corporations 

Global – The timeline for the globalization of companies: • Early days: a company that sold goods overseas • Middle period: a company that manufactured and sold goods in other

countries • 21st Century: a company that is able to call on talent and resources around the globe, just as it sells its goods and services around the globe

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Speed – Speed in the 21st century company is a business strategy built on a virtual network of suppliers, manufacturers, and delivery firms

People-Driven Enterprises  The successful 21st-century company is one that realizes that it is the people that make up the business  Some key challenges for managers of 21st-century

enterprises: – Understanding the challenges the enterprise faces – Seizing opportunities – Managing frustration

Introduction HRM is a subset of management. It has five main goals: attract employees

Strong employees = Competitive advantage

retain employees

motivate employees

Goals of HRM

hire employees

train employees 5

Understanding Cultural Environments  HRM operates in a global business environment. Countries have different  values

 morals  customs  political, economic, and legal systems

HRM helps employees understand other countries’ political and economic conditions. 6

Human resource (HR) management

Deg management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

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Types of Organizational Assets

Assets

Physical

Financial

Intangible

Human

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Core Competencies in Possible HR Areas

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Human Capital in Organizations Human Capital

Core Competency

The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.

A unique capability that creates high value and differentiates an organization from its competition.

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HR Management Functions

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The Changing World of Technology  HRM information systems help to  facilitate HR plans  make decisions faster  clearly define jobs  evaluate performance  provide desirable, cost-effective benefits 12

The Changing World of Technology  HR managers use technology to:  recruit, hire, and train employees  motivate and monitor workers  research fair compensation packages  communicate throughout the organization

 evaluate decentralized employees’ performance

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HR Management’s Contributing Role Organizational Culture and HR  Organizational Culture – Is the shared values and beliefs in an organization. – Is the internal “climate” of the organization. – Positively affects service and quality, productivity, and

financial results. – Is affected by differences in cultural dimensions. 14

HR Management’s Contributing Role Organizational Productivity Productivity

Unit Labor Cost

A measure of the quantity and quality of work done, considering the cost of the resources used.

A measure of HR productivity computed by dividing the average cost of workers by their average levels of output.

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Re-Deg Work

Restructuring the Organization

• Changing workloads and combining jobs • Reshaping jobs due to technology changes

• Revising organizational structure • Reducing staff • Aiding in mergers and acquisitions

Goals • Increase organizational productivity • Reduce unit labor costs

Aligning HR Activities • Attracting and retaining employees • Training and developing employees • Evaluating and compensating employees and other HR activities

Outsourcing • Using domestic vendors/contractors instead of employees • International outsourcing operations

Approaches to Improving Organizational Productivity 16

HR Management’s Contributing Role Social Responsibilities and HR  HR Advantages and Social Responsibilities – Attracting and retaining employees – Achieving sustainability in dealing with economic challenges – Creating a “green culture”

 Global Social Responsibility and HR – Results in higher organizational images globally, better employee morale and loyalty, and more competitive advantages with consumers

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HR Management’s Contributing Role Customer Service and Quality Linked to HR  Linking HR to social responsibility, customer service, and quality significantly affects organizational effectiveness. Human Resource Management

Social Responsibility

Customer Service

Quality 18

HR Management’s Contributing Role Employee Engagement and HR Culture  Employee Engagement – Individuals feel linked to organizational success and how the organization performs positively.

 Social Networking – Has evolved from personal s and oral communications to include: • E-mail and text messages • Twitters • Blogs 19

Current and Future HR Management Challenges Organizational Cost Pressures and Restructuring  Pressures from global competitors and information technology have forced firms to use: – international outsourcing – adapt management practices – increase productivity, and – decrease labor costs 20

Current and Future HR Management Challenges Economics and Job Changes  The shifts in the global economy has changed to the service industry rather than manufacturing firms.

– Occupational Shifts – Workforce Availability and Quality Concerns

– Talent Management and Development – Growth in Contingent Workforce 21

Current and Future HR Management Challenges Globalization of Organizations  The business has shifted trade to the integration of global operations, management, and strategic alliances. – An expatriate – A host-country national – A third-country national

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Current and Future HR Management Challenges Workforce Demographics and Diversity  More diverse racially and ethnically, more women and the average age in workforce are increasing. – Racial/Ethnic Diversity – Women in the Workforce – Aging Workforce

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Current and Future HR Management Challenges HR Technology  Human Resource Management System (HRMS) – An integrated system providing information used by HR management in decision making.  Purposes of HRMS Data Collection

– istrative and operational efficiency – Availability of data for HR strategic planning 24

Current and Future HR Management Challenges Measuring HR Impact through Metrics  More analytical and develop metrics that measure the HR efforts, much like financial officers. – measuring the cost of hiring someone, – calculating the turnover costs when persons leave the firm, – doing a return-on-investment analysis of training results and expenses

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End of Chapter 01