Fundamentals of Human Resource Management 11e

Fundamentals of
Human Resource Management 11e
Chapter 1
The Dynamic Environment of HRM
Introduction
HRM is a subset of management. It has five main
goals:
attract
employees
retain hire
Goals employees
employees
of
HRM
motivate train
employees employees
Strong employees = competitive advantage.

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.
Exhibit 1-1: Cultural Values
Understanding Cultural Environments
The Heritage Foundation’s Index of Economic Freedom rates
179 countries on openness to trade, business, investment,
and property rights. The U.S. was #10 in 2012. 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.New Zealand 4.Libya
5.Switzerland 5.Eritrea
6.Canada 6.Venezuela
7.Chile 7.Burma
8.Mauritius 8.Dem. Rep. of Congo
9.Ireland 9.Iran
10.United States 10.Equatorial Guinea
2012 Country Rankings, see www.heritage.org/index/Ranking.aspx
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.

The Impact of Technology
 HR is increasingly using IT
 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

 HRM information systems help to

• facilitate HR plans
• make decisions faster
• clearly define jobs
• evaluate performance
• provide desirable, cost-effective benefits
 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
Workforce Diversity
 HRM has moved from the melting pot assumption to

celebrating workforce diversity.
 The U.S. Dept. of the Interior’s website overviews major U.S.
civil rights legislation. Click here
The Civil Rights Acts of 1964 and 1991

Equal Pay Act of 1963
Americans with Disabilities Act of 1990
The Age Discrimination in Employment Act
The Rehabilitation Act
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
 Part of a dual-income household
#1 reason
for leaving a company:
lack of work schedule flexibility
The Labor Supply
 HR managers monitor the labor supply.

 Trend is to right size: fit company goals to
workforce numbers.
 For agility, companies build a contingent
workforce of:
• Part-time workers
• Temporary workers
• Contract workers
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.
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
Other HRM Challenges
 Challenges for HRM:

• The recession has brought layoffs and low morale.
• Increased offshoring means jobs can move
overseas, even HR.
• Current trend of mergers and acquisitions increase
HR’s role.
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
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!

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Fundamentals of

Human Resource Management 11e

Strong employees = competitive advantage.

HRM helps employees understand other countries’

 HRM operates in a technologically changing

Globalization 1.0 Globalization 2.0 Globalization 3.0

3.0 fueled by instant communication and the Internet.

1. Learning as a Way of Being by Peter B. Vaill

2. Thinking for a Living: How to Get Better Performance and

3. Information Anxiety 2 by Richard S. Wurman

 HRM information systems help to

 HR managers use technology to:

 HRM has moved from the melting pot assumption to

The Civil Rights Acts of 1964 and 1991

 Today’s workers want a healthy work/life balance.

 HR managers monitor the labor supply.

accurate concern for

HR managers help workers adapt to continuous improvement changes

It’s all about employee empowerment through

Employee Involvement Concepts

delegation • participative management

 Challenges for HRM:

 Code of ethics: a formal statement of an

Sarbanes-Oxley Act of 2002

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