Introduction to Managing HR in North America Steve Werner

Why Should I Care About HR? HR has been shown to affect the firm in many ways including turnover, productivity, and financial performance HR has been shown to affect the firm in many ways including turnover, productivity, and financial performance Studies show that HR effectiveness is positively related to market value, cash flow, and productivity Studies show that HR effectiveness is positively related to market value, cash flow, and productivity

The Structure of the Book Topics are organized into three sections Topics are organized into three sections Major changes in environmental factors and HRMMajor changes in environmental factors and HRM Areas of increased importanceAreas of increased importance Emerging trends and new issuesEmerging trends and new issues

Major Changes in Environmental Factors and HRM Chapter 2 – Staffing and developing the multinational workforce Chapter 2 – Staffing and developing the multinational workforce Chapter 3 – Advances in technology based training Chapter 3 – Advances in technology based training Chapter 4 – New HR challenges in the dynamic environment of legal compliance Chapter 4 – New HR challenges in the dynamic environment of legal compliance Chapter 5 - The changing family and HRM Chapter 5 - The changing family and HRM

Areas of Increased Importance Ethics and HRM Ethics and HRM Health, safety and HRM Health, safety and HRM Competitive advantage through HRM Competitive advantage through HRM Counterproductive leader behavior Counterproductive leader behavior

Chapter 10 – Outsourcing and HRM Chapter 10 – Outsourcing and HRM Chapter 11 – The costs of employee benefits Chapter 11 – The costs of employee benefits Chapter 12 – Executive compensation: something old, something new Chapter 12 – Executive compensation: something old, something new Chapter 13 – HRM after 9/11 and Katrina Chapter 13 – HRM after 9/11 and Katrina Concluding thoughts Concluding thoughts Emerging Trends and New Issues

The Organizing Framework Changes in the external and internal environment that have led to the current issue Changes in the external and internal environment that have led to the current issue HR and firm responses to the environment HR and firm responses to the environment Outcomes resulting from these responses that affect company stakeholders Outcomes resulting from these responses that affect company stakeholders

The General Environment Comprised of factors from the surrounding society including the Comprised of factors from the surrounding society including the Demographic segmentDemographic segment Economic segmentEconomic segment Political/legal segmentPolitical/legal segment Sociocultural segmentSociocultural segment Technological segmentTechnological segment Global segmentGlobal segment

Demographic Segment Defined by the characteristics of the people who are external stakeholders in the firm. Defined by the characteristics of the people who are external stakeholders in the firm. Includes Includes IncomeIncome AgeAge Size and location of the relevant populationSize and location of the relevant population

Economic Segment Economic and financial condition of the firm’s environment Economic and financial condition of the firm’s environment This segment includes: This segment includes: InflationInflation InterestInterest UnemploymentUnemployment Savings ratesSavings rates

Political/legal Segment Comprised of the laws and the dominant political climate Comprised of the laws and the dominant political climate This legal segment includes: This legal segment includes: Tax lawsTax laws Antitrust lawsAntitrust laws Employment lawsEmployment laws Environmental legislationEnvironmental legislation

Political/legal Segment Continued The political segment includes: The political segment includes: Current political climateCurrent political climate Educational philosophiesEducational philosophies Political agendasPolitical agendas Deregulation philosophiesDeregulation philosophies

Socio-cultural Segment Values held by the firms external stakeholders Values held by the firms external stakeholders The Socio-cultural segment includes: The Socio-cultural segment includes: Societal attitudesSocietal attitudes Cultural valuesCultural values

Technological Segment Technology available to the firm Technology available to the firm The Technological Segment includes: The Technological Segment includes: ProductsProducts CommunicationsCommunications Applications of knowledgeApplications of knowledge Data managementData management SoftwareSoftware

Global Segment Non domestic factors that could affect the firm and its industry Non domestic factors that could affect the firm and its industry The global segment includes: The global segment includes: World political eventsWorld political events Global product marketsGlobal product markets Global material availabilityGlobal material availability Societal values of other countriesSocietal values of other countries

Task Environment Comprised of factors that directly affect the firm and its industry Comprised of factors that directly affect the firm and its industry The task environment includes: Labor market Product market Competitors Other stakeholders

Internal Environment The internal environment is the environment specific to the firm The internal environment is the environment specific to the firm The internal environment includes: The internal environment includes: Tangible resources such as physical and technological meansTangible resources such as physical and technological means Intangible resources such as human resources, reputation, and innovationIntangible resources such as human resources, reputation, and innovation

Responses Reactions to inputs from the task environment resulting from changes in the external environment Reactions to inputs from the task environment resulting from changes in the external environment Reactions can include changes in HR procedures and policies such as hiring and training practices Reactions can include changes in HR procedures and policies such as hiring and training practices

Outcomes The results of responses within the company The results of responses within the company Outcomes may be positive for some and negative for others Outcomes may be positive for some and negative for others

Moderating Factors These are intervening factors that change the effects of responses These are intervening factors that change the effects of responses An example of a moderating factor is the external context in which a decision is made An example of a moderating factor is the external context in which a decision is made

Guidelines Guidelines result from the feedback of responses and moderating factors Guidelines result from the feedback of responses and moderating factors The purpose of guidelines is to increase the probability of positive outcomes for the firm The purpose of guidelines is to increase the probability of positive outcomes for the firm

Conclusion The book examines the current “hot” topics The book examines the current “hot” topics Each chapter uses a framework to help organize the chapter Each chapter uses a framework to help organize the chapter This frameworks examines issues from the broad societal and external issues down to the micro issues of responses by the company This frameworks examines issues from the broad societal and external issues down to the micro issues of responses by the company