CHAPTER 2: CHALLENGES IN STAFFING HUMAN RESOURCE MANAGEMENT Copyright © 2005 South-Western. All rights reserved.

1–21–2 Major Factors Affecting HRM Strategic HRM Technological Advancement Demographics and Diversity Globalization

Copyright © 2005 South-Western. All rights reserved.1–31–3 Exhibit 2-1 Issues for Integrating New Technologies

Copyright © 2005 South-Western. All rights reserved.1–41–4 Exhibit 2-2 Impact of Technology on Organizations

Copyright © 2005 South-Western. All rights reserved.1–51–5 Technology Challenges for HRM TelecommutingTelecommuting Employee surveillance & monitoringEmployee surveillance & monitoring e-HRe-HR Ethical behaviorEthical behavior TelecommutingTelecommuting Employee surveillance & monitoringEmployee surveillance & monitoring e-HRe-HR Ethical behaviorEthical behavior

Copyright © 2005 South-Western. All rights reserved.1–61–6 TelecommutingTelecommuting Dramatic growth in number of Americans working from homeDramatic growth in number of Americans working from home –3.4 million in 1990 –19.6 million by beginning of 2000 Dramatic growth in number of Americans working from homeDramatic growth in number of Americans working from home –3.4 million in 1990 –19.6 million by beginning of 2000 Issues affecting success of telecommuting programsIssues affecting success of telecommuting programs – Clear performance measurement system is key – Deciding which employees will be offered participation – Equipment expense – Some managers uncomfortable having direct reports away from office

Copyright © 2005 South-Western. All rights reserved.1–71–7 Employee Surveillance and Monitoring More than 80% of large employers utilize monitoring technologyMore than 80% of large employers utilize monitoring technology –Internet usage – s –Computer files –Voic –Telephone usage Under Electronic Communications Privacy Act (ECPA) employees have only limited privacy rightsUnder Electronic Communications Privacy Act (ECPA) employees have only limited privacy rights More than 80% of large employers utilize monitoring technologyMore than 80% of large employers utilize monitoring technology –Internet usage – s –Computer files –Voic –Telephone usage Under Electronic Communications Privacy Act (ECPA) employees have only limited privacy rightsUnder Electronic Communications Privacy Act (ECPA) employees have only limited privacy rights

Copyright © 2005 South-Western. All rights reserved.1–81–8 E-HRE-HR Opportunity to deliver transactional types of services onlineOpportunity to deliver transactional types of services online –Payroll –Employee benefits –Scheduling –Recruiting –Training –Career development Opportunity to deliver transactional types of services onlineOpportunity to deliver transactional types of services online –Payroll –Employee benefits –Scheduling –Recruiting –Training –Career development

Copyright © 2005 South-Western. All rights reserved.1–91–9 Ethical Behavior Majority of jobs are considered to be “at- will”Majority of jobs are considered to be “at- will” Movement toward greater protection for employees in regard to off-duty behaviorMovement toward greater protection for employees in regard to off-duty behavior Ownership of workOwnership of work Fairness of noncompete clausesFairness of noncompete clauses Majority of jobs are considered to be “at- will”Majority of jobs are considered to be “at- will” Movement toward greater protection for employees in regard to off-duty behaviorMovement toward greater protection for employees in regard to off-duty behavior Ownership of workOwnership of work Fairness of noncompete clausesFairness of noncompete clauses Sarbanes-Oxley Act of 2002Sarbanes-Oxley Act of 2002 –Eliminates deception in accounting & management practices by increasing government oversight –Holds senior executives more directly responsible for violations –Protects “whistle- blowers”

Copyright © 2005 South-Western. All rights reserved.1–10 Workforce Demographic Changes: “Graying” of Workforce Negative aspects of older workersNegative 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 & salary costs for senior workers Negative aspects of older workersNegative 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 & salary costs for senior workers Positive aspects of older workersPositive aspects of older workers –As productive or more productive than younger workers –Have more organizational loyalty than younger workers –Possess broader industry knowledge & professional networks

Copyright © 2005 South-Western. All rights reserved.1–11 Workforce Demographic Changes Baby Boomers (1945–1962)Baby Boomers (1945–1962) –In excess supply in middle management ranks –HR challenge is to manage “plateaued” workers Baby Busters (1963–mid-1970s)Baby Busters (1963–mid-1970s) –Are career bottlenecked by Boomers –Who have skills in high demand are doing & will do well Baby Boomers (1945–1962)Baby Boomers (1945–1962) –In excess supply in middle management ranks –HR challenge is to manage “plateaued” workers Baby Busters (1963–mid-1970s)Baby Busters (1963–mid-1970s) –Are career bottlenecked by Boomers –Who have skills in high demand are doing & will do well

Copyright © 2005 South-Western. All rights reserved.1–12 Workforce Demographic Changes Generation “X”ers (late 1970s–early 1980s)Generation “X”ers (late 1970s–early 1980s) –Have life-long exposure to technology & constant change –Seek self-control, independence, personal growth, creativity –Not focused on job security or long-term employment Generation “Y”: “Baby Boom Echo” (after 1979)Generation “Y”: “Baby Boom Echo” (after 1979) –High comfort level with technology –Global & tolerant outlook on life –Highly entrepreneurial –Shorter attention span –Opting for more transient & variable project work Generation “X”ers (late 1970s–early 1980s)Generation “X”ers (late 1970s–early 1980s) –Have life-long exposure to technology & constant change –Seek self-control, independence, personal growth, creativity –Not focused on job security or long-term employment Generation “Y”: “Baby Boom Echo” (after 1979)Generation “Y”: “Baby Boom Echo” (after 1979) –High comfort level with technology –Global & tolerant outlook on life –Highly entrepreneurial –Shorter attention span –Opting for more transient & variable project work

Copyright © 2005 South-Western. All rights reserved.1–13 Workforce Demographic Changes Sexual orientationSexual orientation –More than 200 Fortune 500 employers offer full benefits for domestic partners –Sexual orientation issues can impact bottom line DisabilitiesDisabilities –54 million Americans with disabilities –Often not included in diversity initiatives –Many supervisors do not understand needs of employees with disabilities –Stereotypes Sexual orientationSexual orientation –More than 200 Fortune 500 employers offer full benefits for domestic partners –Sexual orientation issues can impact bottom line DisabilitiesDisabilities –54 million Americans with disabilities –Often not included in diversity initiatives –Many supervisors do not understand needs of employees with disabilities –Stereotypes

Copyright © 2005 South-Western. All rights reserved.1–14 New Employee/Workplace Dynamics Emphasis on management of professionalsEmphasis on management of professionals –Establishment of separate career tracks Technical/Professional, Managerial /AdministrativeTechnical/Professional, Managerial /Administrative –Use of project teams Less employee loyalty, more loyal to selfLess employee loyalty, more loyal to self –Staying with employers for shorter periods; demanding more meaningful work & involvement in organizational decisions Emphasis on management of professionalsEmphasis on management of professionals –Establishment of separate career tracks Technical/Professional, Managerial /AdministrativeTechnical/Professional, Managerial /Administrative –Use of project teams Less employee loyalty, more loyal to selfLess employee loyalty, more loyal to self –Staying with employers for shorter periods; demanding more meaningful work & involvement in organizational decisions

Copyright © 2005 South-Western. All rights reserved.1–15 New Employee/Workplace Dynamics Increased personal & family dynamic effectsIncreased personal & family dynamic effects –More single-parent families, dual-career couples, & domestic partners Increased nontraditional work relationshipsIncreased nontraditional work relationships –Part-time, consulting, & temporary employment flexibility –Outsourcing & entrepreneurial opportunities Increased personal & family dynamic effectsIncreased personal & family dynamic effects –More single-parent families, dual-career couples, & domestic partners Increased nontraditional work relationshipsIncreased nontraditional work relationships –Part-time, consulting, & temporary employment flexibility –Outsourcing & entrepreneurial opportunities

Copyright © 2005 South-Western. All rights reserved.1–16 EthnicityEthnicity By 2050By 2050 –Close to 50% of US population will be non-Caucasian By 2005By 2005 –Ethnic minority share of workforce will be 28% –Up from 22% in 1990 & 18% in 1980 By 2050By 2050 –Close to 50% of US population will be non-Caucasian By 2005By 2005 –Ethnic minority share of workforce will be 28% –Up from 22% in 1990 & 18% in 1980 By 2025By 2025 –African-Americans will represent 14% of population –Up from 12% in 1994 –Hispanics will represent 17% of population –Up from 10% in 1994 –Asians & Pacific Islanders will represent 8% of population –More than double from 1994

Copyright © 2005 South-Western. All rights reserved.1–17 Managing Workplace Diversity Understanding & appreciating diversityUnderstanding & appreciating diversity –Critical to effectively marketing to ethnic & minority groups –Promoted by having diverse workforce at all levels –Helps ensure hiring & promotion decisions are unbiased by person differences Understanding & appreciating diversityUnderstanding & appreciating diversity –Critical to effectively marketing to ethnic & minority groups –Promoted by having diverse workforce at all levels –Helps ensure hiring & promotion decisions are unbiased by person differences Diversity management programs or initiativesDiversity management programs or initiatives –Must be integrated with organization’s mission & objectives –Help key decision makers identify diversity’s benefits to organization –Make critical decisions about implementing optimal program/initiative contingent on organization & its people, mission & culture.

Copyright © 2005 South-Western. All rights reserved.1–18 Exhibit 2-6 Individual Dimensions of Diversity

Copyright © 2005 South-Western. All rights reserved.1–19 Strategic Management of Diversity Determine why diversity is importantDetermine why diversity is important Articulate how diversity relates to mission & strategic objectivesArticulate how diversity relates to mission & strategic objectives Define diversity & determine how inclusive its efforts will beDefine diversity & determine how inclusive its efforts will be Make a decision as to whether special efforts should be extended to attract diverse workforceMake a decision as to whether special efforts should be extended to attract diverse workforce Assess how existing employees, customers, & other constituencies feel about diversityAssess how existing employees, customers, & other constituencies feel about diversity Determine specific types of diversity initiatives that will be undertakenDetermine specific types of diversity initiatives that will be undertaken Determine why diversity is importantDetermine why diversity is important Articulate how diversity relates to mission & strategic objectivesArticulate how diversity relates to mission & strategic objectives Define diversity & determine how inclusive its efforts will beDefine diversity & determine how inclusive its efforts will be Make a decision as to whether special efforts should be extended to attract diverse workforceMake a decision as to whether special efforts should be extended to attract diverse workforce Assess how existing employees, customers, & other constituencies feel about diversityAssess how existing employees, customers, & other constituencies feel about diversity Determine specific types of diversity initiatives that will be undertakenDetermine specific types of diversity initiatives that will be undertaken

Copyright © 2005 South-Western. All rights reserved.1–20 Reading 2.1 Five Challenges to Virtual Team Success Virtual teams:Virtual teams: –Groups of people who work interdependently with shared purpose across space, time, & organization boundaries using technology to communicate & collaborate Types of virtual teamsTypes of virtual teams –Global virtual teams –Teams assigned to accomplish specific projects –Cross-functional teams Challenge: Recognize obstacles confronting teams that are both cross-functional & virtualChallenge: Recognize obstacles confronting teams that are both cross-functional & virtual Virtual teams:Virtual teams: –Groups of people who work interdependently with shared purpose across space, time, & organization boundaries using technology to communicate & collaborate Types of virtual teamsTypes of virtual teams –Global virtual teams –Teams assigned to accomplish specific projects –Cross-functional teams Challenge: Recognize obstacles confronting teams that are both cross-functional & virtualChallenge: Recognize obstacles confronting teams that are both cross-functional & virtual

Copyright © 2005 South-Western. All rights reserved.1–21 Reading 2.1 Five Challenges to Virtual Team Success Building trust within virtual teamsBuilding trust within virtual teams Maximizing process gains & minimizing process losses on virtual teamsMaximizing process gains & minimizing process losses on virtual teams Overcoming feelings of isolation & detachment associated with virtual teamworkOvercoming feelings of isolation & detachment associated with virtual teamwork Balancing technical & interpersonal skills among virtual team membersBalancing technical & interpersonal skills among virtual team members Assessment & recognition of virtual team performanceAssessment & recognition of virtual team performance Building trust within virtual teamsBuilding trust within virtual teams Maximizing process gains & minimizing process losses on virtual teamsMaximizing process gains & minimizing process losses on virtual teams Overcoming feelings of isolation & detachment associated with virtual teamworkOvercoming feelings of isolation & detachment associated with virtual teamwork Balancing technical & interpersonal skills among virtual team membersBalancing technical & interpersonal skills among virtual team members Assessment & recognition of virtual team performanceAssessment & recognition of virtual team performance

Copyright © 2005 South-Western. All rights reserved.1–22 Reading 2.2 Impact of the Sarbanes-Oxley Act New whistleblower protectionsNew whistleblower protections –No public company may discriminate against employee because of any lawful act –Retaliation against employee because of any lawful act done to assist a proceeding relating to alleged violation is prohibited –If DOL determines that violation has occurred, employer may be ordered to reinstate employee & provide compensatory damages New whistleblower protectionsNew whistleblower protections –No public company may discriminate against employee because of any lawful act –Retaliation against employee because of any lawful act done to assist a proceeding relating to alleged violation is prohibited –If DOL determines that violation has occurred, employer may be ordered to reinstate employee & provide compensatory damages

Copyright © 2005 South-Western. All rights reserved.1–23 Reading 2.2 Impact of the Sarbanes-Oxley Act The Act dramatically affects officer compensation programsThe Act dramatically affects officer compensation programs –Executive bonuses subject to forfeiture under Act –Personal loans to executives are regulated by Act –SEC can remove or temporarily freeze payments to executives & directors –Public accounting firms are precluded from auditing company if highly placed executive was employed by auditing firm & participated in company’s prior year’s audit –Attorneys have new rules of professional responsibility The Act dramatically affects officer compensation programsThe Act dramatically affects officer compensation programs –Executive bonuses subject to forfeiture under Act –Personal loans to executives are regulated by Act –SEC can remove or temporarily freeze payments to executives & directors –Public accounting firms are precluded from auditing company if highly placed executive was employed by auditing firm & participated in company’s prior year’s audit –Attorneys have new rules of professional responsibility

Copyright © 2005 South-Western. All rights reserved.1–24 Reading 2.2 Impact of the Sarbanes-Oxley Act The Act requires new employment policies & proceduresThe Act requires new employment policies & procedures –Procedures for receiving & handling complaints of corporate fraud have to be established –Compensation program bonus policies & stock option plans have to take account of new forfeiture provisions –Hiring & recruitment strategies & background checks will have to be revamped to avoid hiring executives whose employment is precluded by the Act –Training required to properly implement all Act’s mandates The Act requires new employment policies & proceduresThe Act requires new employment policies & procedures –Procedures for receiving & handling complaints of corporate fraud have to be established –Compensation program bonus policies & stock option plans have to take account of new forfeiture provisions –Hiring & recruitment strategies & background checks will have to be revamped to avoid hiring executives whose employment is precluded by the Act –Training required to properly implement all Act’s mandates

Copyright © 2005 South-Western. All rights reserved.1–25 Reading 2.3 Employee Satisfaction Potential impact of demographic changesPotential impact of demographic changes –Aging population increases emphasis on health care benefits, retirement planning, & job security –Women are attaining higher proportion of professional qualifications –Future skills shortages may cause industrialized countries to compete for skilled immigrant labor Potential impact of demographic changesPotential impact of demographic changes –Aging population increases emphasis on health care benefits, retirement planning, & job security –Women are attaining higher proportion of professional qualifications –Future skills shortages may cause industrialized countries to compete for skilled immigrant labor Industrial base shifting to service & health care sectorsIndustrial base shifting to service & health care sectors Wider political & economic trends affecting job satisfactionWider political & economic trends affecting job satisfaction –Health care costs –Job security –Pensions

Copyright © 2005 South-Western. All rights reserved.1–26 Reading 2.3 Employee Satisfaction Two groups of issuesTwo groups of issues –Those depending on financial position of company BenefitsBenefits WagesWages Job securityJob security –Those less costly to implement through changing practices, processes, & culture Communication with managementCommunication with management Work/life balanceWork/life balance Employee’s relationship with immediate supervisorEmployee’s relationship with immediate supervisor Career developmentCareer development Two groups of issuesTwo groups of issues –Those depending on financial position of company BenefitsBenefits WagesWages Job securityJob security –Those less costly to implement through changing practices, processes, & culture Communication with managementCommunication with management Work/life balanceWork/life balance Employee’s relationship with immediate supervisorEmployee’s relationship with immediate supervisor Career developmentCareer development