Chapter 1

Strategic Implications of a Dynamic HRM Environment

Fundamentals of Human
Resource Management
The World of Work - continues to change, but at
an even more rapid pace.
HR must understand the implications of:
globalization
technology changes
workforce diversity
changing skill requirements
continuous improvement initiatives
the contingent work force
decentralized work sites
and employee involvement
The World of Work - continues to change, but at
an even more rapid pace.
HR must understand the implications of:
globalization
technology changes
workforce diversity
changing skill requirements
continuous improvement initiatives
the contingent work force
decentralized work sites
and employee involvement
Todays business world is truly a global village.
This term refers to the fact that businesses
currently operate around the world.
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
status differentiation
societal uncertainty
assertiveness
individualism
HRM also must help multicultural groups work together.

GLOBE Dimensions:
Assertiveness
Future Orientation
Gender Differentiation
Uncertainty Avoidance
Power Distance
Individualism/collectivism
In-group collectivism
Performance orientation
Humane orientation



1. Assertiveness: Assertive and aggressive in social relationships.
2. Future Orientation: planning, investing and delaying gratifications.
3. Gender Differentiation
4. Uncertainty Avoidance
5. Power Distance
6. Individualism/collectivism: How much being in group is rewarded?
7. In-group collectivism: People want to be a part of the group
8. Performance orientation: Acceptance of the legitimacy of hierarchy and
valuing of perseverance and thrift.
9. Humane orientation: how much altruism, generosity, fairness,
friendliness, being caring (basically being good) is appreciated.


Cultural Implications for HRM
Not all HRM theories and practices are universally
applicable.
HRM must understand varying cultural values.
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.
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

How Technology Affects HRM Practices
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

The challenge is to make organizations more
accommodating to diverse groups of people.

The Workforce Today
minorities and women have become the fastest growing
segments
the numbers of immigrant workers and older workers are
increasing

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
Values
Needs
Interests
Expectations of employees

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.
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.
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.

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

Delegation having the authority to make
decisions in ones 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
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 organizations primary values and the ethical
rules it expects organizational members to
follow.