TRENDS IN HR

Human Resource
CHALLENGES OF
GLOBALISATION,
TECHNOLOGY
AND
CHANGE MANAGEMENT
Human Resource
Objectives
After studying this chapter, you
should be able to:
1. Identify how firms gain sustainable competitive
advantage through people.
2. Explain how globalization is influencing human
resources management.
3. Describe the impact of information technology on
managing people.
4. Identify the importance of change management.
5. State HRs role in developing intellectual capital.
6. Differentiate how TQM and reengineering
influence HR systems.
Objectives (contd)
After studying this chapter, you
should be able to:
7. Discuss the impact of cost pressures on HR
policies.
8. Discuss the primary demographic and
employee concerns pertaining to HRM.
9. Provide examples of the roles and
competencies of todays HR managers.
Competitive Advantage through
People
Core Competencies
Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to
customers.
Sustained competitive advantage through people is
achieved if these human resources:
Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.
Overall Framework for
Human Resource Management
Presentation Slide 11
COMPETITIVE
CHALLENGES
Globalization
Technology
Managing change
Human capital
Responsiveness
Cost containment
HUMAN
RESOURCES
Planning
Recruitment
Staffing
Job design
Training/development
Appraisal
Communications
Compensation
Benefits
Labor relations
EMPLOYEE
CONCERNS
Background diversity
Age distribution
Gender issues
Educational levels
Employee rights
Privacy issues
Work attitudes
Family concerns

Figure 1.1
Competitive Challenges and
Human Resources Management
The most pressing competitive issues facing
firms:
Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs
Going Global
Globalization
The trend toward opening up foreign markets to
international trade and investment.
Impact of Globalization
Partnerships with foreign firms
Anything, anywhere, anytime markets
Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements
WTO and GATT
Going Global (contd)
Impact on HRM
Different geographies, cultures,
laws, and business practices
Issues:
Identifying capable expatriate
managers.
Developing foreign culture and work
practice training programs.
Adjusting compensation plans for
overseas work.
Embracing New Technology
Knowledge Workers
Workers whose responsibilities extend beyond
the physical execution of work to include
planning, decision making, and problem
solving.
The Spread of E-commerce
The Rise of Virtual Workers
Influence of Technology in HRM
Human Resources Information System (HRIS)
Computerized system that provides current and
accurate data for purposes of control and decision
making.
Benefits:
Store and retrieve of large quantities of data.
Combine and reconfigure data to create new information.
Institutionalization of organizational knowledge.
Easier communications.
Lower administrative costs, increase productivity and response
times.
Major Uses
For
HR
Information
Systems
Source: HR and Technology Survey, Deloitte &
Touche and Lawson Software, 1998.
HRM 1
Impact of IT on HRM
Transformational
Impact
Operational
Impact
Relational
Impact
HRM
HRM IT Investment Factors
Initial costs and annual
maintenance costs
Fit of software packages
to the employee base
Ability to upgrade
Increased efficiency and
time savings
Compatibility with current
systems
User-friendliness
Availability of
technical support
Needs for customizing
Time required to
implement
Training time required
for HR and payroll
Managing Change
Types of Change
Reactive change
Change that occurs after external forces have already affected
performance
Proactive change
Change initiated to take advantage of targeted opportunities
Formal change management programs help to
keep employees focused on the success of the
business.
Managing Change
Why Change Efforts Fail:
1. Not establishing a sense of urgency.
2. Not creating a powerful coalition to guide the effort.
3. Lacking leaders who have a vision.
4. Lacking leaders who communicate the vision.
5. Not removing obstacles to the new vision.
6. Not systematically planning for and creating short-term
wins.
7. Declaring victory too soon.
8. Not anchoring changes in the corporate culture.
Developing Human Capital
Human Capital
The knowledge, skills, and capabilities of
individuals that have economic value to an
organization.
Valuable because capital:
Is based on company-specific skills.
Is gained through long-term experience.
Can be expanded through development.
Responding to the Market
Total Quality Management (TQM)
A set of principles and practices whose core
ideas include understanding customer needs,
doing things right the first time, and striving for
continuous improvement.
Six Sigma
A process used to translate customer needs into
a set of optimal tasks that are performed in
concert with one another.
Responding to the Market
Reengineering
Fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements
in cost, quality, service, and speed.
Requires that managers create an environment for change.
Depends on effective leadership and communication processes.
Requires that administrative systems be reviewed and
modified.
Containing Costs
Downsizing
The planned elimination of jobs (head count).
Outsourcing
Contracting outside the organization to have work done
that formerly was done by internal employees.
Employee Leasing
The process of dismissing employees who are then
hired by a leasing company (which handles all HR-
related activities) and contracting with that company to
lease back the employees.
Downsizing and Upsizing
Percent of companies reporting that they:
*All annual readings are for 12 months ending at
midyear. Categories are not mutually exclusive.
Source: Gene Koretz, Hire Math: Fire 3, Add 5,
Business Week Online (March 13, 2000). Figure 1.2
Containing Costs (contd)
Hidden Costs of Layoff
Severance and rehiring costs
Accrued vacation and sick day payouts
Pension and benefit payoffs
Potential lawsuits from aggrieved workers
Loss of institutional memory and trust in management
Lack of staffers when the economy rebounds
Survivors who are risk-averse, paranoid, and political
Containing Costs (contd)
Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who arent afraid to innovate,
knowing their jobs are safe.
Productivity Enhancements
Figure 1.3 Presentation Slide 12
MOTIVATION
Job enrichment
Promotions
Coaching
Feedback
Rewards



ENVIRONMENT
Empowerment
Teams
Leader support
Culture
ABILITY
Recruitment
Selection
Training
Development
Perf = f (A,M,E)
Social Issues and HRM
Changing Demographics
Shrinking pool of entry-level workers
Productivity
Individual differences
Retirement benefits
Social Security contributions
Skills development
Use of temporary employees
HRM 4
Social Issues and HRM (contd)
Employer/Employee Concerns
Job as an entitlement
Right to work
Whistle-blowing
Employment at will
AIDS
Comparable worth
Concern for privacy
Mandated benefits
HRM 4
Social Issues and HRM (contd)
Attitudes Toward Work and Family
Day care
Flextime
Job sharing
Alternative work schedules
Elder care
Job rotation
Parental leave
Telecommuting
HRM 4
Labor Force and Racial Distribution
Figure 1.4a
Source: Labor Force, Occupational Outlook
Quarterly 45. no. 4 (Winter 2001/2002): 3641.
Labor Force Growth By Race And
Hispanic Origin, Projected 2000
2010
Figure 1.4b
Source: Labor Force, Occupational Outlook
Quarterly 45. no. 4 (Winter 2001/2002): 3641.
Labor Force Share By Race And
Hispanic Origin, 2000 And Projected 2010
Figure 1.4c
Source: Labor Force, Occupational Outlook
Quarterly 45. no. 4 (Winter 2001/2002): 3641.
Labor Force Participation Rate By Sex,
19502000 And Projected 20002010
Figure 1.5a
Labor Force Growth By Sex,
Projected 20002010
Figure 1.5b
Labor Force Share By Sex,
1990, 2000, And Projected 2010
Figure 1.5c
Education
Pays
Source: U.S. Department of Labor.
Figure 1.6
Model of
Diversity
Management
Strategy
Figure 1.7
Source: Kathleen Iverson, Managing for Effective Workforce Diversity, Cornell Hotel
and Restaurant Administration Quarterly 41, no. 2 (April 2000): 3138.
Why Diversity?
The primary business reasons for
diversity management include
HRM 5
Source: Association of Executive Search Consultants (member survey). Used with
permission of the Association of Executive Search Consultants, http://www.aesc.org.
Presentation Slide 13
Better utilization
of talent
(93%)
Increased
marketplace
understanding
(80%)
Enhanced
creativity
(53%)
Increased
quality of team
problem solving
(40%)
Breadth of
understanding in
leadership
positions
(60%)
Top Issues for Managers
in Balancing Work and Home
Executive recruiters say 75 percent of senior management candidates
and 88 percent of middle managers raised concerns about balancing
work and home. Top issues:
Source: Association of Executive Search
Consultants (member survey). Used with
permission of the Association of Executive
Search Consultants, http://www.aesc.org.
Figure 1.8
Qualities of Human Resources
Managers
Responsibilities
Advice and counsel
Service
Policy formulation
and implementation
Employee advocacy

Competencies
Business mastery
HR mastery
Change mastery
Personal credibility



Human
Resource
Competency
Model
Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, Lower Cost, Higher Value: Human Resource Function in
Transformation. Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human
Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) 490-6387, Fax: (212) 682-6851.
Figure 1.9
Presentation Slide 14
Business
Mastery
Business acumen
Customer orientation
External Relations
HR
Mastery
Staffing
Performance appraisal
Rewards system
Communication
Organization design
Change
Mastery
Interpersonal skills
and influence
Problem-solving skills
Rewards system
Innovation and creativity
Personal
Credibility
Trust
Personal
relationships
Lived values
Courage