The Changing Environment of Human Resource Management Globalization Trends Technological Trends Trends in the Nature of Work Workforce Demographic Trends Changes and Trends in Human Resource Management Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

The Changing Environment of HR Management :Globalization Trends Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Globalization of the world economy and other trends has triggered changes in how companies organize, manage and use their HR departments. More globalization means more competition, and more competition means more pressure to lower costs, make employees more productive, and do things better and less expensively. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

The Changing Environment of HR Management :Technological Trends Virtual online communities, virtual design environments and Internet-based distribution systems have enabled firms to become more competitive. HR faces the challenge of quickly applying technology to the task of improving its own operations. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA The Changing Environment of HR Management :Trends in the Nature of Work - Jobs are changing due to new technological demands. Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees Nontraditional workers, such as those who hold multiple jobs, part-time workers, or people working in alternative work arrangements, enable employers to keep costs down. 1. High-Tech Jobs – More jobs have gone high tech, requiring workers to have more education and skills. 2. Service Jobs – Most newly created jobs are and will continue to be in the service sector. 3. Human Capital - refers to the knowledge, education, training, skills, and expertise of a firm’s workers The HR function must employ more sophisticated and creative means to identify, attract, select, train and motivate the required work force Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA The Changing Environment of HR Management :Workforce Demographic Trends The labor force is getting older and more multi-ethnic. The aging labor force presents significant changes in terms of potential labor shortages, and many firms are instituting new policies aimed at encouraging aging employees to stay, or at attracting previously retired employees. Growing numbers of workers with eldercare responsibilities, and high rates of immigration also present challenges and opportunities for HR managers. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

The Changing Role of Human Resource Management New Responsibilities for HR Managers Measuring the HRM Team’s Performance Managing with the HR Scorecard Process Creating High- Performance Work Systems Strategic Human Resource Management Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

The Changing Role of HR Management Strategic HRM ; Management expects HR to provide measurable, benchmark-based evidence for its current efficiency and effectiveness of new or proposed HR programs. Management expects solid, quantified evidence that HR is contributing in a meaningful and positive way to achieving the firm’s strategic aims. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA such practices often results in surprising benefits. Creating High Performance Work Systems (HPWS) HR can impact organizational performance in 3 ways: through the use of technology many HR tasks (payroll, reference checks, wellness programs, etc.) are being outsourced to specialist service providers. through effective HR practices Pre-employment personality testing and increased training are just two HR practices that can produce employees who perform better. 3. High Performance Work Systems – Employment security, selective hiring, extensive training, self managed team and decentralized decision making, information sharing, contingent rewards, Implementation of such practices often results in surprising benefits. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Measuring the HR Management Team’s Performance HR managers need a set of quantitative performance measures (metrics) they can use to assess their operations. These metrics allow managers to measure their HR units’ efficiency. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Managing With the HR Scorecard : The HR Scorecard is a concise measurement system, showing quantitative standards or “metrics” used to measure HR activities, employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors. The scorecard highlights the causal link between HR activities, emergent employee behaviors, and the resulting firm-wide strategic outcomes and performance Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

FIGURE 1–5 Five Sample HR Metrics How to Calculate It Absence rate # of days absent in month × 100 Average # of employees during month × # of workdays Cost per hire Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits Number of hires HR expense factor HR expense Total operating expense Time to fill Total days elapsed to fill job requisitions Number hired Turnover rate Number of separations during month Average number of employees during month Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–20; Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management.. Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

The Human Resource Manager’s Proficiencies New Proficiencies HR proficiencies represent knowledge and skills in the area such as selection Business proficiencies Hr Manager should be strategists thinking Leadership proficiencies ability to work and lead management group Learning proficiencies ability to apply new technology and practices Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

FIGURE 1–8 Strategy and the Basic Human Resource Management Process Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA THANK YOU Unit - I 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA