Chapter 1
HRM in a Changing
Environment
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Introduction
HRM is a subset of management. It has five main
goals:
attract
employees
retain hire
employees
Goals employees
of
HRM
motivate train
employees employees
Strong employees = competitive advantage.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
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.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Understanding Cultural Environments
The Heritage Foundation’s Index of Economic Freedom rates
183 countries on openness to trade, business, investment,
and property rights. The U.S. was #6 in 2009. North Korea is
the most repressed.
TOP 10 FREE COUNTRIES TOP 10 LEAST-FREE COUNTRIES
1. Hong Kong 1. North Korea
2. Singapore 2. Zimbabwe
3. Australia 3. Cuba
4. Ireland 4. Burma
5. New Zealand 5. Eritrea
6. United States 6. Venezuela
7. Canada 7. Dem. Rep. of Congo
8. Denmark 8. Comoros
9. Switzerland 9. Libya
10. United Kingdom 10. Sao Tome & Principe
2009 Country Rankings, see www.heritage.org/index/Ranking.aspx
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
HRM operates in a technologically changing
environment.
Thomas Friedman:
Globalization 1.0 Globalization 2.0 Globalization 3.0
(1492-1800) (1800 -2000) (2000 -????)
Driven by transportation Driven by communication Driven by technology
3.0 fueled by instant communication and the Internet.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
The IT field is growing.
Knowledge workers focus on the acquisition and
application of information for decision making.
Some books for aspiring knowledge workers:
1. Learning as a Way of Being by Peter B. Vaill
2. Thinking for a Living: How to Get Better Performance and
Results from Knowledge Workers by Thomas H. Davenport
3. Information Anxiety 2 by Richard S. Wurman
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
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
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
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
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Workforce Diversity
HRM has moved from the melting pot
assumption to celebrating workforce diversity.
The "melting pot" metaphor implies both a melting of
cultures and intermarriage of ethnicities, yet cultural
assimilation or acculturation can also occur without
intermarriage.
Workforce diversity means similarities and
differences among employees in terms of age, cultural
background, physical abilities and disabilities, race,
religion, gender, and sexual orientation
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Workforce Diversity
Today’s workers want a healthy work/life
balance.
They
can work any time, from almost anywhere
work more than 40 hours per week
are part of a dual-income household
#1 reason
for leaving a company:
lack of work schedule flexibility
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
The Labor Supply
HR managers monitor the labor supply.
Trend is to rightsize: fit company goals to
workforce numbers.
For agility, companies build a contingent
workforce of
part-time workers
temporary workers
contract workers
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Continuous Improvement Programs
focus
on
customer
concern for
empowerment continuous
of employees continuous improvement
improvement
components
accurate concern for
measurement total quality
HR managers help workers adapt to continuous improvement changes
through retraining, providing answers, and monitoring expectations.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Employee Involvement
It’s all about employee empowerment through
involvement, which increases worker productivity
and loyalty.
Employee Involvement Concepts
delegation • participative management
work teams • goal setting • employer training
See http://workhelp.org/joomla/content/view/284/ for
managerial tips on empowering employees.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Other HRM Challenges
Challenges for HRM:
The recession has brought layoffs and low
morale.
Increased offshoring means jobs can move
overseas, even HR.
Today’s spate of mergers and acquisitions
increase HR’s role.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
A Look at Ethics
Code of ethics: a formal statement of an
organization’s primary values and the ethical rules
it expects members to follow.
HR managers must take part in enforcing ethics
rules.
Sarbanes-Oxley Act of 2002
Requires proper financial recordkeeping
for public companies
Video: Robert Lane, Ethics at Deere
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
True or False?
1. HRM should assume all countries have the same cultures.
False!
2. Technology and information technology have little impact on HRM.
False!
3. Today’s workforce is composed of diverse groups.
True!
4. Rightsizing is a strategy companies use to balance their labor supply.
True!
5. Continuous improvement programs eliminate change in an organization.
False!
6. Employee empowerment increases worker involvement and productivity.
True!
7. HRM is affected by the economy.
True!
8. HRM can play a vital role in enforcing ethical codes of conduct.
True!
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
