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CHALLENGES IN STAFFING HUMAN RESOURCE MANAGEMENT
CHAPTER 2: CHALLENGES IN STAFFING HUMAN RESOURCE MANAGEMENT Copyright © 2005 South-Western. All rights reserved.
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Major Factors Affecting HRM
Technological Advancement Demographics and Diversity Strategic HRM Globalization Copyright © 2005 South-Western. All rights reserved.
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Exhibit 2-1 Issues for Integrating New Technologies
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Exhibit 2-2 Impact of Technology on Organizations
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Technology Challenges for HRM
Telecommuting Employee surveillance & monitoring e-HR Ethical behavior Copyright © 2005 South-Western. All rights reserved.
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Telecommuting Dramatic 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 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.
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Employee Surveillance and Monitoring
More 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 rights Copyright © 2005 South-Western. All rights reserved.
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Opportunity to deliver transactional types of services online
E-HR Opportunity to deliver transactional types of services online Payroll Employee benefits Scheduling Recruiting Training Career development Copyright © 2005 South-Western. All rights reserved.
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Ethical Behavior Majority of jobs are considered to be “at-will”
Movement toward greater protection for employees in regard to off-duty behavior Ownership of work Fairness of noncompete clauses Sarbanes-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.
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Workforce Demographic Changes: “Graying” of Workforce
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 & 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 & professional networks Copyright © 2005 South-Western. All rights reserved.
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Workforce Demographic Changes
Baby Boomers (1945–1962) In excess supply in middle management ranks HR challenge is to manage “plateaued” workers 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.
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Workforce Demographic Changes
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) 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.
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Workforce Demographic Changes
Sexual orientation More than 200 Fortune 500 employers offer full benefits for domestic partners Sexual orientation issues can impact bottom line Disabilities 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.
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New Employee/Workplace Dynamics
Emphasis on 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 & involvement in organizational decisions Copyright © 2005 South-Western. All rights reserved.
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New Employee/Workplace Dynamics
Increased personal & family dynamic effects More single-parent families, dual-career couples, & domestic partners Increased nontraditional work relationships Part-time, consulting, & temporary employment flexibility Outsourcing & entrepreneurial opportunities Copyright © 2005 South-Western. All rights reserved.
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Ethnicity By 2050 Close to 50% of US population will be non-Caucasian By 2005 Ethnic minority share of workforce will be 28% Up from 22% in 1990 & 18% in 1980 By 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.
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Managing Workplace Diversity
Understanding & 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 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.
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Exhibit 2-6 Individual Dimensions of Diversity
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Strategic Management of Diversity
Determine why diversity is important Articulate how diversity relates to mission & strategic objectives Define diversity & determine how inclusive its efforts will be Make a decision as to whether special efforts should be extended to attract diverse workforce Assess how existing employees, customers, & other constituencies feel about diversity Determine specific types of diversity initiatives that will be undertaken Copyright © 2005 South-Western. All rights reserved.
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Reading 2.1 Five Challenges to Virtual Team Success
Groups of people who work interdependently with shared purpose across space, time, & organization boundaries using technology to communicate & collaborate Types 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 & virtual Copyright © 2005 South-Western. All rights reserved.
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Reading 2.1 Five Challenges to Virtual Team Success
Building trust within virtual teams Maximizing process gains & minimizing process losses on virtual teams Overcoming feelings of isolation & detachment associated with virtual teamwork Balancing technical & interpersonal skills among virtual team members Assessment & recognition of virtual team performance Copyright © 2005 South-Western. All rights reserved.
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Reading 2.2 Impact of the Sarbanes-Oxley Act
New 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.
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Reading 2.2 Impact of the Sarbanes-Oxley Act
The 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.
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Reading 2.2 Impact of the Sarbanes-Oxley Act
The 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.
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Reading 2.3 Employee Satisfaction
Potential 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 sectors Wider political & economic trends affecting job satisfaction Health care costs Job security Pensions Copyright © 2005 South-Western. All rights reserved.
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Reading 2.3 Employee Satisfaction
Two groups of issues Those depending on financial position of company Benefits Wages Job security Those less costly to implement through changing practices, processes, & culture Communication with management Work/life balance Employee’s relationship with immediate supervisor Career development Copyright © 2005 South-Western. All rights reserved.
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