Human Resources Management

International Executive Master of Business Administration

Human Resources Management

http://www.pgsm.edu.vn

HUMAN RESOURCE
MANAGEMENT
Assoc. Prof. NGUYEN MINH DUC
PhD in Economics (Auburn University, USA)

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PGSM International Executive MBA Program

 Human Resources Management

HUMAN RESOURCE
MANAGEMENT
Assoc. Prof. NGUYEN MINH DUC
PhD in Economics at Auburn University, USA
Lecturers in various universities in HoChiminh City: University of Economics, Foreign
Trade University, Open University, Vietnam National University (University of
Economics and Laws), TonDucThang University, Van Hien University, NongLam
University,…

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HUMAN RESOURCE
MANAGEMENT
CHAPTER 2 TRENDS IN HR AND HRM

NGUYEN MINH DUC

Assoc. Prof.
PhD in Economics at Auburn University, USA

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PGSM International Executive MBA Program

 Human Resources Management

THE CHANGING ENVIRONMENT OF

HR MANAGEMENT
HR’s changing role:
“ Personnel departments”
 Took over hiring and firing from supervisors, payroll,
and benefit plans administration.
 In the 1930s added “protecting the firm in its
interaction with unions” responsibilities (labor relations).
 Assumed organizational responsibilities for equal
employment and affirmative action.

NGUYENMINHDUC 1–5

A CHANGING HR ENVIRONMENT
Globalization
Technological Advances
Outsourcing Jobs
The Nature of Work
Workforce Demographics
Gen Z development
Remote working with Covid-19
NGUYENMINHDUC 1–6

PGSM International Executive MBA Program

 Human Resources Management

EMPLOYMENT EXODUS:
PROJECTED LOSS OF JOBS AND WAGES

Figure 1–4
Source: Michael Shroeder, “States Fight Exodus of Jobs,” Wall Street Journal, June 3, 2003, p. 84.
NGUYENMINHDUC 1–7

NEW APPROACHES TO ORGANIZING HR

New HR Services Groups

Transactional HR Corporate Embedded Centers of

group HR group HR unit Expertise

1–8
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 Human Resources Management

TRENDS SHAPING HUMAN RESOURCE

MANAGEMENT
Globalization
and Competition
Trends

Indebtedness
(“Leverage”) and Technological
Deregulation Trends
Trends in HR
Management
Workforce and
Trends in the
Demographic
Nature of Work
Trends

Economic
Challenges and
Trends

NGUYENMINHDUC
1–9

FIGURE 1–4 Trends Shaping Human Resource Management

1–10
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 Human Resources Management

FIGURE 1–5 Employment Exodus: Percent of employers who said they

planned as of 2008 to offshore a number of these jobs

NGUYENMINHDUC
1–11

TRENDS IN THE NATURE OF WORK

Changes in How We Work

High-Tech Service Knowledge Work

Jobs Jobs and Human Capital

1–12
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 Human Resources Management

TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016

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1–13

WORKFORCE AND DEMOGRAPHIC TRENDS

Demographic Trends

Generation “Y”
Trends Affecting
Human Resources
Retirees

Nontraditional Workers

1–14
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 Human Resources Management

IMPORTANT TRENDS IN HRM

The New HR
Managers

Strategic High-Performance
HRM Human Work Systems
Resource
Management
Evidence-Based Trends Managing
HRM Ethics

HR
Certification

NGUYENMINHDUC
1–15

MEETING TODAY’S HRM CHALLENGES

The New Human Resource
Managers

Acquire broader
Find new ways to
Focus more on business
provide
“big picture” knowledge and
transactional
(strategic) issues new HRM
services
proficiencies

1–16
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PGSM International Executive MBA Program

 Human Resources Management

HUMAN
RESOURCE IN
COVID19

NGUYENMINHDUC 1–17

7.8 million Vietnamese workers' jobs affected by

Covid-19

Covid-19 slump forces nearly 30,000 businesses

to suspend operations in Vietnam

REMOTE WORK
WITH
DISTANCING

NGUYENMINHDUC 1–18

PGSM International Executive MBA Program

 Human Resources Management

Life-sciences & medical device manufacturing

HIGH DEMAND JOBS Media and Communication positions

IN THE CURRENT
COVID-19 PANDEMIC
Information Technology positions

Shippers or delivery drivers

NGUYENMINHDUC 1–19

People first – health and wellbeing above all else

WORKING IN Be there for clients – supporting clients reliably

through this period
COVID-19
DISTANCING
Don’t waste a crisis – drive business continuity
through cash and cost management; seize
opportunities to position ourselves ahead of the
curve as the pandemic radically reshapes the
working world.
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PGSM International Executive MBA Program

 Human Resources Management

Strategy
 The company’s long-term plan for how it will
balance its internal strengths and weaknesses
MEASURING with its external opportunities and threats to
maintain a competitive advantage.
HR’S  HR managers today are more involved in partnering with their
CONTRIBUTION top managers in both designing and implementing their
companies’ strategies.

 Top management wants to see, precisely, how

the HR manager’s plans will make the
company more valuable.

NGUYENMINHDUC 1–21

FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes

NguyenMinhDuc 1–22

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 Human Resources Management

Absence Rate
[(Number of days absent in month) ÷ (Average number of
employees during month) × (number of workdays)] × 100
Cost per Hire
(Advertising + Agency Fees + Employee Referrals + Travel
HR METRICS cost of applicants and staff + Relocation costs + Recruiter
pay and benefits) ÷ Number of Hires
Health Care Costs per Employee
Total cost of health care ÷ Total Employees
HR Expense Factor
HR expense ÷ Total operating expense

NGUYENMINHDUC 1–23

Human Capital ROI

Revenue − (Operating Expense − [Compensation cost
+ Benefit cost]) ÷ (Compensation cost + Benefit cost)
Human Capital Value Added
Revenue − (Operating Expense − ([Compensation cost
HR METRICS + Benefit Cost]) ÷ Total Number of FTE
Revenue Factor
Revenue ÷ Total Number of FTE
Time to fill
Total days elapsed to fill requisitions ÷ Number hired

NGUYENMINHDUC 1–24

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 Human Resources Management

Training Investment Factor

Total training cost ÷ Headcount
Turnover Costs
Cost to terminate + Cost per hire + Vacancy
Cost + Learning curve loss
HR METRICS Turnover Rate
[Number of separations during month ÷ Average
number of employees during month] × 100
Compensation Cost per Employee
Total compensate cost for Year ÷ Average
number of employees

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High-Performance Work System (HPWS)

• A set of human resource management policies and
practices that promote organizational effectiveness.
BUILDING A High-Performance Human Resource Policies
HIGH- and Practices
PERFORMANCE • Emphasize the use of relevant HR metrics.
• Set out the things that HR systems must do to become
WORK SYSTEM an HPWS.
• Foster practices that encourage employee self-
management.
• Practice benchmarking to set goals and measure the
notable performance differences required of an
HPWS.

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 Human Resources Management

Generate more job applicants

Screen candidates more effectively
Provide more and better training
BENEFITS OF A Link pay more explicitly to performance
HIGH Provide a safer work environment
PERFORMANCE Produce more qualified applicants per position
WORK SYSTEM More employees are hired based on validated
selection tests
(HPWS) Provide more hours of training for new
employees
Higher percentages of employees receiving
regular performance appraisals.
NGUYENMINHDUC 1–27

Comparison of Selected Human Resource Practices in High-Performance and Low-Performance Companies

3–28
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 Human Resources Management

New Proficiencies
 HR proficiencies
 Business proficiencies
 Leadership proficiencies
 Learning proficiencies
The Need to “Know Your Employment Law”
 Equal employment laws
 Occupational safety and health laws
 Distancing regulations for Covid-19 and other pandemic outbreaks
 Labor laws

THE NEW HR MANAGER

NGUYENMINHDUC 1–29

 Intranet-based employee portals through which employees

can self-service HR transactions.
 The availability of centralized call centers staffed with HR
specialists.
 Increased efficiency of HR operations.
 The development of data warehouses of HR-related
information.
 The ability to outsource HR activities to specialist service
providers.
 IT software in HR
 ERP (Enterprise Resource Planning)

HR AND TECHNOLOGY
NGUYENMINHDUC 1–30

PGSM International Executive MBA Program

 Human Resources Management

TABLE 1–2 Some Technological Applications to Support HR

Technology How Used by HR

Application service providers ASPs provide software application, for instance, for processing
(ASPs) and technology employment applications. The ASPs host and manage the services
outsourcing for the employer from their own remote computers

Web portals Employers use these, for instance, to enable employees to sign up
for and manage their own benefits packages and to update their
personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to
provide corporate information to employees quickly and
inexpensively

Internet- and network- Used to track employees’ Internet and e-mail activities or to monitor
monitoring software their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping

Electronic bill presentment Used, for instance, to eliminate paper checks and to facilitate
and payment payments to employees and suppliers

Data warehouses and Help HR managers monitor their HR systems. For example, they
computerized analytical make it easier to assess things like cost per hire, and to compare
programs current employees’ skills with the firm’s projected strategic needs

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PGSM International Executive MBA Program