Trends affecting HRM Chapter 3 References: Strategic Human Resource Management by Jeffrey A. Mello Strategic Human Resource Management by Charles R. Greer Resource Person: Furqan-ul-haq Siddiqui

2–2 Major Factors Affecting HRM Strategic HRM Technological Advancement Demographics and Diversity Globalization

Issue for Integrating new Technologies

Impact of Technologies on Organizations

Workforce Demographic Changes The “Graying” of the Workforce Note: Dates are approximate and there is some overlap because there are no standard definitions for when a generation begins and ends.

2–7 Workforce Demographic Changes Baby Boomers (1945–1964)  In excess supply in middle management ranks  HR challenge is to manage “plateaued” workers Gen X (1961–1981)  Are career bottlenecked by the Boomers  Who have skills in high demand are doing and will do well Gen Y (1975–1995)  Have life-long exposure to technology and constant change  Seek self-control, independence, personal growth, creativity  Are not focused on job security or long-term employment.

Negative Aspects of Older Workers  Perceived resistance to change by older workers.  Increased health-care costs for senior workers  Blocking advancement opportunities for younger workers  Higher wage and salary costs for senior workers Positive Aspects of Older Workers  As productive or more productive than younger workers  Have more organizational loyalty than younger workers  Possess broader industry knowledge and professional networks

Equal Employment Opportunity (EEO) means freedom from discrimination on the basis of sex, color, religion, national origin, disability and age.

Career Many professionals assume their work path is predetermined by their career choice or by their organization.  For example, a person trained to be an accountant may see himself or herself only as an accountant who, after completing their professional training.  Following one career path may be limiting for some people.  You may find yourself meeting the needs of their employer, but not your own personal career goals.

11 1. Exploration Stage- A career stage that usually ends in mid-twenties as one makes the transition from school to work.  Involves:  trying out different fields  discovering likes and dislikes  forming attitudes toward work and social relationship patterns  Includes school and early work experiences, such as internships Traditional Career Stages

12 2. Establishment Stage- Stage in which one begins to search for work and finds a first job.  Includes:  search for work  getting first job  getting evidence of “success” or “failure”  Takes time and energy to find a “niche” and to “make your mark”. 3. Mid Career Stage- A career stage marked by continuous improvement in performance, leveling off in performance or beginning decline of performance. Person may face threats to his/her position from younger, better-trained and more aggressive employees.

13  Plateaued mid-career- Plateaued but may not failed in mid career. Even can be more productive, committed, loyal but not ambitious as climbers. 4. Late Career- Stage in which individuals are no longer learning about their jobs nor expected to outdo levels of performance from previous years.  Successful “elder states persons” can enjoy being respected for their judgment. Good resource for teaching others.  Those who have declined may experience job insecurity.  Off the job life increases in importance.

14 5.Decline Stage- The final stage in one’s career, usually marked by retirement/death.  May be most difficult for those who were most successful at earlier stages.  Today’s longer life spans and legal protections for older workers open the possibility for continued work contributions, either paid or volunteer.

Protean Career The career of the 21 st century is protean, a career that is driven by the person, not the organization, and that will be reinvented by the person from time to time, as the person and the environment change. The protean career is a process which the person, not the organization, is managing. It consists of all of the person's varied experiences in education, training, work in several organizations, changes in occupational field, etc.

Strategic Implications

17 Successful Career Tips Know Yourself Manage your reputation Job Performance Build & Maintain Network Contacts Keep Current Balance your specialist & generalist competencies Document your Achievements Keep your options open Resignations T & D Exposure “If you don’t have a plan for yourself you’ll be a part of someone else’s” American Proverb  Having a plan does not mean auto success Need to have good performance, experience, education, faith, planning and preparation

New Employee/Workplace Dynamics Emphasis on the Management of Professionals  Establishment of separate career tracks Technical/Professional, Managerial /Administrative  Use of project teams Less Employee Loyalty, More Loyal to Self  Staying with employers for shorter periods; demanding more meaningful work and involvement in organizational decisions Increased Personal and Family Dynamic Effects  Nuclear families, dual-career couples, and commuter couples Increased Nontraditional Work Relationships  Part-time, consulting, and temporary employment flexibility  Outsourcing and entrepreneurial opportunities

Managing Workplace Diversity Understanding and Appreciating Diversity  Is critical to effectively marketing to ethnic and minority groups  Is promoted by having a diverse workforce at all organization levels  Helps ensure that hiring and promotion decisions are unbiased by person differences Diversity Management Programs/Initiatives  Must be integrated with organization’s mission and objectives  Help key decision makers identify diversity’s benefits to the organization  Make critical decisions about implementing the optimal program/initiative contingent on the organization and its people, mission and culture.

Strategic Business Issues Affecting HRM

A subsidiary of Engro Corp. – Pakistan’s largest private- sector conglomerate – despite a ‘weak performance’ in the last quarter, Engro Foods more than doubled its net profit, which amounted to over Rs3 billion up by a staggering 256% compared to Rs888 million, in financial year ending December 31, 2015, revealed a notice sent to the Pakistan Stock Exchange in January Its revenue during 2015 improved significantly on the back of higher volumetric flows in Olper’s. The company’s reported Rs50 billion in net sales during 2015, up 17% compared to Rs42.6 billion it grossed in Published: January 28, 2016 by Express Tribune 22

A Dutch dairy cooperative is set to buy out a Pakistani food giant with an investment of around $460 million, in what would amount to the largest private sector takeover by a foreign firm in the country’s history. Friesland Campina International Holding BV intends to acquire a 51 per cent stake of Engro Foods Limited, one of the largest listed companies at the benchmark Pakistan Stock Exchange (PSX), a notification on the bourse’s website said Thursday. The deal would bring in a minimum investment of $460 million based on the Pakistani firm’s present stock. “Pakistan is already in the radar range of the world corporate sector and this deal further lifts its image outside,”. If finalized the Dutch takeover would boost Pakistan’s foreign direct investment statistics. Published: March 04, 2016 by Express Tribune 23

Globalization Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Challenges for HRM  Managing diversity of workforce  Managing pressures for more labor rights in third world countries.  Management of Laws Across Jurisdictions  Managing Outsourced and temporary workforce  Downsizing the workforce  Coping with flexible working hour  Great emphasis on training

Types of Firms  International companies are importers and exporters, they have no investment outside of their home country.  Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.  Global companies have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency.  Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.

Expanding into Global Markets Offshoring Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available. The International Labor Pool Hiring at home may may involve selection of employees from other countries. The beginning of the 21 st century has seen significant immigration.