1. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. CHAPTER 2 TRENDS IN HR MANAGEMENT

2. 1-2 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-2 1.Labor force composition trends and technological developments how they affect HRM. 2.Areas in which HRM can support the goals of creating a high- performance work system and expanding internationally. 3.Employee empowerment and its role. 4.Ways HR professionals can support organizational strategies for quality, growth, and efficiency. 5.How the nature of employment relationship is changing. 6.How the need for flexibility affects HRM. Need To Know

3. 1-3 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-3 The Labor Force Internal Labor Force An organization’s workers includes its employees and people who have contracts to work at the organization Internal labor force has been drawn from the external labor market. External Labor Market Individuals who are actively seeking employment. Number and kinds of people in external labor market determine kinds of human resources available to an organization.

4. 1-4 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-4 Aging Workforce Diverse WorkforceSkill Deficiencies Change in the Labor Force

5. 1-5 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-5 Today’s Workforce Generation Y Generation X or Millennials Silent Generation Baby Boomers Generations

6. 1-6 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-6 FIGURE 2.1 Age Distribution Of U.S Labor Force

7. 1-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-7 HRM spends much time on retirement planning, retraining and motivating workers. Organizations must find ways to prepare youth labor force. Organizations struggle to control rising costs of health care and benefits Managers will supervise older employees. HR Implications of an Aging Workforce

8. 1-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-8 As more of the workforce reaches retirement age, some companies have set up mentoring programs between older and younger workers so that knowledge is not lost but passed on.

9. 1-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-9 Figure 2.2 Projected Racial/Ethnic Makeup of the U.S. Workforce, 2022

10. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. supply of and demand for labor need to comply with laws HR Implications Toward Undocumented or Illegal Immigrants

11. 1-11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-11 Figure 2.3 HRM Practices That Support Diversity Management

12. 1-12 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-12 Skill Deficiencies of the Workforce Employers are looking for skills:  mathematical  verbal  Interpersonal  computer Gap between needed and available skills has decreased companies ability to compete. Companies may lack capacity to upgrade technology, reorganize work, and empower employees.

13. 1-13 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-13 High-Performance Work Systems

14. 1-14 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-14 HRM Applications for Social Networking

15. Table 2.1 Top 10 Occupations for Job Growth

16. 1-16 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-16 Knowledge Workers Employees whose contribution to the organization is specialized knowledge of: customers processes profession They are especially needed for jobs in: health services business services social services engineering management They are especially needed for jobs in: health services business services social services engineering management

17. 1-17 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-17 Ensuring that knowledge workers will share information and store it so that it is easily retrieved by others is the concern of which of the following HR activities. A.Turnover B.Employee Empowerment C.Knowledge Management D.Employee Selection Test Your Knowledge

18. 1-18 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-18 Employee Empowerment Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Employee Engagement Full involvement in one’s work and commitment to one’s job and company. This is associated with:  higher productivity  better customer service  lower employee turnover Full involvement in one’s work and commitment to one’s job and company. This is associated with:  higher productivity  better customer service  lower employee turnover

19. 1-19 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-19 Teamwork The assignment of work to groups of employees with various skills who interact to assemble a product or provide a service. Work teams often assume many of the activities traditionally reserved for managers: selecting new team members scheduling work coordinating work with customers and other units of the organization

20. 1-20 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-20 Sharon is a very smart and conscientious worker. Lately, she has felt that her ideas were disregarded and she was denied autonomy in completing her work. This situation is probably caused by a lack of A.Employee Empowerment B.Knowledge Management C.Turnover D.Teamwork Test Your Knowledge

21. 1-21 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-21 Figure 2.4 Strategic Business Issues Affecting HRM

22. 1-22 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-22 TQM is a companywide effort to continuously improve the ways people, machines, and systems accomplish work. TQM approach provides guidelines for all the organization’s activities, including HRM. Total Quality Management (TQM)

23. 1-23 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-23 1.Methods and processes are designed to meet the needs of internal and external customers. 2.Every employee receives training in quality. 3.Quality is designed into a product or service so that errors are prevented from occurring. 4.Organization promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. 5.Managers measure progress with feedback based on data. TQM Core Values

24. 1-24 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-24 3 HRM Controls Cost downsizing outsourcing reengineering health insurance

25. 1-25 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-25 Figure 2.5 Number of Employees Laid Off During the Past Decade

26. 1-26 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-26  A complete review of the organization’s major work processes to make them more efficient and able to deliver higher quality, including HRM.  Reengineering affects HRM in two ways: How HR accomplishes its goals may change. Change requires HR to help design and implement change so that all employees will be committed to the reengineered organization’s success. Reengineering

27. 1-27 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-27 Outsourcing – the practice of having another company, such as a vendor, third-party provider, or consultant, provide services. Outsourcing gives the company access to in-depth expertise and is often more economical as well. HR helps with a transition to outsourcing. Outsourcing

28. 1-28 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-28 HRM should have a significant role in carrying out a merger or acquisition. Differences between businesses involved in the deal make conflict inevitable. Training should include conflict resolution skills. There is a need to sort out differences in the two companies’ practices regarding compensation, performance appraisal, and other HR systems. HRM should have a significant role in carrying out a merger or acquisition. Differences between businesses involved in the deal make conflict inevitable. Training should include conflict resolution skills. There is a need to sort out differences in the two companies’ practices regarding compensation, performance appraisal, and other HR systems. Mergers and Acquisitions

29. 1-29 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-29 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. International Labor Pool Hiring at home may may involve selection of employees from other countries. Immigration

30. Figure 2.6 Where Immigrants to U.S. Came from in 2012

31. 1-31 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-31 A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization’s human resources. HRIS can: support strategic decision making help the organization avoid lawsuits provide data for evaluating programs or policies support day-to-day HR decisions HR Information System (HRIS)

32. 1-32 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-32 Internet Portal Shared Service Centers Cloud computing, such as application service providers Business Intelligence Data mining Table 2.2 Technologies Influencing HRM

33. 1-33 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-33 e-HRM: processing and transmission of digitized HR information especially using computer networking and Internet. e-HRM has potential to change all traditional HRM functions. Self-Service: System in which employees have online access to information about HR issues and go online to enroll themselves in programs and provide feedback through surveys. Electronic Human Resource Management (e-HRM)

34. 1-34 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-34 A New Psychological Contract Flexibility Flexible Staffing Levels Flexible Work Schedules Change In Employment Relationship

35. 1-35 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-35 Flexibility: A Family-Friendly Work Arrangement

36. 1-36 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-36 Organizations seek flexibility in staffing levels through alternatives to traditional employment relationship: outsourcing, temporary and contract workers flexible work schedules – including shortened work weeks moving employees to different jobs to meet changes in demand Need for Flexibility Affects HRM

37. 1-37 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-37 An organization’s internal labor force comes from its external labor market U.S. labor market is aging and becoming more racially and ethnically diverse. Organizations must recruit from a diverse population, establish bias-free HR systems, and help employees understand and appreciate cultural differences. HRM can help organizations find and keep the best possible fit between their social and technical systems. Summary

38. 1-38 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-38 Job design and appropriate systems for assessment and rewards have a central role in supporting employee empowerment and teamwork. Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. HRM must design jobs to give employees latitude for decision-making and interpersonal skills. Summary (continued)

39. 1-39 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 2-39  HR professionals should be familiar with the organization’s strategy and may play a role in developing the strategy.  Specific HR practices vary according to type of strategy.  Organizations with international operations hire employees in foreign countries where they operate, so they need knowledge of differences in culture and business practices.  HR professionals should be familiar with the organization’s strategy and may play a role in developing the strategy.  Specific HR practices vary according to type of strategy.  Organizations with international operations hire employees in foreign countries where they operate, so they need knowledge of differences in culture and business practices. Summary (continued)