Chapter 1
The Dynamic Environment
of Human Resource
Management (HRM)
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
Introduction
HRM is a subset of management. It has five main
goals:
attract
employees
retain hire
Goals employees
employees
of
HRM
motivate train
employees employees
Strong employees become a source of competitive advantage in a global environment
facing change in complex ways at a rapid pace.
As part of an organization, HRM must be prepared to deal
with the effects of these changes.
This means understanding the implications of
globalization, technology changes, workforce diversity,
labor shortages, changing skill requirements, continuous
improvement initiatives, the contingent workforce,
decentralized work sites, company mergers, offshore
sourcing of goods and services, and employee
involvement.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Understanding Cultural Environments
As part of the rapidly changing environment, organizational
members face the globalization of business.
HRM operates in a global business environment.
Countries have different
values
morals
customs
political, economic, and legal systems
HRM helps employees understand other countries’
political and economic conditions.
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
The IT field is growing.
Knowledge workers focus on the acquisition and
application of information for decision making.
Some books for aspiring knowledge workers:
1. Learning as a Way of Being by Peter B. Vaill
2. Thinking for a Living: How to Get Better Performance and
Results from Knowledge Workers by Thomas H. Davenport
3. Information Anxiety 2 by Richard S. Wurman
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
HRM information systems help to
facilitate HR plans
make decisions faster
clearly define jobs
evaluate performance
provide desirable, cost-effective benefits
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
The Changing World of Technology
HR managers use technology to:
recruit, hire, and train employees
motivate and monitor workers
research fair compensation packages
communicate throughout the organization
evaluate decentralized employees’
performance
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
Workforce Diversity
HRM has moved from the melting pot
assumption to celebrating workforce diversity.
The U.S. Dept. of the Interior’s Web site
www.doi.gov/diversity/8major2.htm overviews major
U.S. civil rights legislation.
The Civil Rights Acts of 1964 and 1991
Equal Pay Act of 1963
Americans with Disabilities Act of 1990
The Age Discrimination in Employment Act
The Rehabilitation Act
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
Workforce Diversity
Today’s workers want a healthy work/life
balance.
They
can work any time, from almost anywhere
work more than 40 hours per week
are part of a dual-income household
#1 reason
for leaving a company:
lack of work schedule flexibility
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
The Labor Supply
HR managers monitor the labor supply.
Trend is to right size: fit company goals to
workforce numbers.
For quickness, companies build a contingent
workforce of
part-time workers
temporary workers
contract workers
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
Continuous Improvement Programs
focus
on
customer
concern for
empowerment continuous
of employees continuous improvement
improvement
components
accurate concern for
measurement total quality
HR managers help workers adapt to continuous improvement changes
through retraining, providing answers, and monitoring expectations.
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
Employee Involvement
It’s all about employee empowerment through
involvement, which increases worker productivity
and loyalty.
Employee Involvement Concepts
delegation • participative management
work teams • goal setting • employer training
See http://workhelp.org/joomla/content/view/284/ for
managerial tips on empowering employees.
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
Other HRM Challenges
Challenges for HRM:
The recession has brought layoffs and low
morale.
Increased offshoring means jobs can move
overseas, even HR.
Today’s spate of mergers and acquisitions
increase HR’s role.
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
A Look at Ethics
Code of ethics: a formal statement of an
organization’s primary values and the ethical rules
it expects members to follow.
HR managers must take part in enforcing ethics
rules.
Sarbanes-Oxley Act of 2002
Requires proper financial recordkeeping
for public companies
Video: Robert Lane, Ethics at Deere
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
True or False?
1. HRM should assume all countries have the same cultures.
False!
2. Technology and information technology have little impact on HRM.
False!
3. Today’s workforce is composed of diverse groups.
True!
4. Rightsizing is a strategy companies use to balance their labor supply.
True!
5. Continuous improvement programs eliminate change in an organization.
False!
6. Employee empowerment increases worker involvement and productivity.
True!
7. HRM is affected by the economy.
True!
8. HRM can play a vital role in enforcing ethical codes of conduct.
True!
Fundamentals of Human Resource
Management, 10/e, DeCenzo/Robbins
