Professional Documents
Culture Documents
What Do I Need to Know? 1
L O 2‐1 Describe trends in the labor force composition and
how they affect human resource management.
L O 2‐2 Summarize areas in which human resource
management can support the goal of creating a high‐
performance work system.
Chapter 2 L O 2‐3 Define employee empowerment, and explain its role in
TRENDS IN HUMAN the modern organization.
RESOURCE
L O 2‐4 Identify ways HR professionals can support
MANAGEMENT organizational strategies for growth, quality, and
efficiency.
What Do I Need to Know? 2 Change in the Labor Force 1
L O 2‐5 Summarize ways in which human resource
management can support organizations expanding Internal Labor Force External Labor Market
internationally.
• An organization’s workers • Individuals who are actively
L O 2‐6 Discuss how technological developments are affecting includes its employees and seeking employment
human resource management. people who have contracts • Number and kinds of people
L O 2‐7 Explain how the nature of the employment to work at the organization in external labor market
relationship is changing. • Internal labor force has been determine kinds of human
drawn from the external resources available to an
L O 2‐8 Discuss how the need for flexibility affects human
labor market organization
resource management.
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Change in the Labor Force 2 What age do you expect to work until?
POLLING QUESTION
A. 55
An Aging Workforce
B. 60
• Workers aged 55 and older fastest growing group in force
C. 65
• HRM considerations:
D. 70
• Planning retirement
E. 75
• Retraining older workers
• Motivating workers whose careers have plateaued
F. Never retiring
• Controlling the rising cost of health care and other benefits
• Today’s workforce often brings together three to four
generations
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Change in the Labor Force 3 Figure 2.1 Age Distribution of U.S. Labor Force,
2016 and 2026
©Hero Images/Getty Images
As more and 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.
Jump to long description in appendix..
©McGraw‐Hill Education. ©McGraw‐Hill Education. Source: Bureau of Labor Statistics, “Employment Projections, Table 3.1,” October 24, 2017, http:// www.bls.gov/emp/ep_ table_301.htm.
Change in the Labor Force 4 Figure 2.2 Projected Racial/Ethnic Makeup of
the U.S. Workforce, 2026
A Diverse Workforce
• Growing diverse in race, ethnicity, and gender
• Immigration important source of growing diversity
• HRM considerations regarding immigration:
• Supply of and demand for labor
• Need to comply with laws
Change in the Labor Force 5 Figure 2.3 HRM Practices That Support
Diversity Management
A Diverse Workforce continued
• HRM considerations regarding diversity:
• Use talents, skills, and values of all employees
• Staffing selection should not use biased tests
• Employees’ nonwork needs should be met with flexible schedules
• Educate employees on cultural differences and stereotypes
• Encourage career development for women and minorities
Jump to long description in appendix.
©McGraw‐Hill Education. ©McGraw‐Hill Education. Source: Based on M. Loden and J. B. Rosener, Workforce America! (Homewood, IL: Business One Irwin, 1991).
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Change in the Labor Force 6 High‐Performance Work Systems 1
Skill Deficiencies of the Workforce
Organizations that have the best fit between:
Desired skills today: Many employers willing to • Social system (people and how they interact)
• Mathematical accept candidates without an
• Technical system (equipment and processes)
education; they offer training
• Verbal
to correct any skills gaps Trends in high‐performance work systems
• Interpersonal
• Computer/technology
• Reliance on knowledge workers
Physical strength and mastery of • Empowerment of employees to make decisions
machinery no longer as important
• Use of teamwork
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Table 2.1 Top 10 Occupations for Job Growth High‐Performance Work Systems 2
Most New Jobs Fastest Rate of Growth
Personal care aides Solar voltaic installers Knowledge Workers
Combined food preparation and serving Wind turbine service technicians • Main contribution to company is specialized knowledge
workers such as in customers, process, or a profession
Registered nurses Home health aides
Home health aides Personal care aids
• Have a position of power
Software developers, applications Physician assistants • Employers need the knowledge they possess
Janitors and cleaners Nurse practitioners • Competitive: most jobs with fast rates of growth are filled by
General and operations managers Statisticians knowledge workers
Laborers and freight, stock, material movers Physical therapist assistants • Some argue that all workers are knowledge workers
Medical assistants Software developers, applications
Waiters and waitresses Mathematicians
©McGraw‐Hill Education. ©McGraw‐Hill Education.
High‐Performance Work Systems 3 High‐Performance Work Systems 4
Teamwork
Employee Empowerment
• Groups of employees with
• Employees allowed to make more decisions; they share in
various skills work together to
resulting losses and rewards
assemble a product or provide
• Leads to more innovation and sharing of ideas a service
• HRM practices such as performance management, work • Virtual teams possible through
design, and compensation should be considered
©Pixtal/AGE Fotostock
technology
• Employee engagement leads to higher productivity, better • Can motivate employees;
customer service, and lower turnover makes work more interesting
One way companies can increase
• More companies using
employee responsibility and control
teamwork due to its proven is to assign work to teams.
benefits
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Sharon is a very smart and conscientious Focus on Strategy 1
POLLING QUESTION
worker. However, she feels that her ideas are
disregarded and she has not had autonomy in
HRM must support company’s strategy
completing her work. This situation is probably
caused by a lack of _____. • Align policies and practices with company goals
• Support company decisions through quality improvement
A. teamwork
programs, mergers and acquisitions, and restructuring
B. knowledge management
C. employee empowerment
D. job security
©McGraw‐Hill Education. ©McGraw‐Hill Education.
Figure 2.4 Business Strategy: Issues Affecting HRM Focus on Strategy 2
Mergers and Acquisitions
• Mergers: two companies become one
• Acquisitions: one company buys another
• In both, HR must be involved in resolving inevitable
conflicts between companies’ practices
Jump to long description in appendix.
©McGraw‐Hill Education. ©McGraw‐Hill Education.
Focus on Strategy 3 Focus on Strategy 4
Total Quality Management (TQM) TQM Core Values
• Many companies use TQM: high‐quality standards are 1. Methods and processes are designed to meet the needs
necessary to remain competitive of internal and external customers
• Provides guidelines for all the organization’s activities 2. Every employee receives training in quality
• Quality improvement can focus on HRM functions 3. Quality is designed into product or service to prevent
• Applying data to improve business functions errors 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
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Focus on Strategy 5 Focus on Strategy 6
Cost Control Cost Control: Downsizing
• Some organizations have a low‐cost, low‐price strategy • HRM challenged to “surgically” reduce workforce
• These organizations rely on HR to identify ways to limit • Most valuable employees should be kept, but they are often
costs of maintaining a qualified, motivated workforce willing and able to find other employment before layoffs
• HR must lower costs without compromising quality • HRM must boost morale of remaining workers
• Open communication necessary to build trust: notify employees of
• HRM can downsize, reengineer, outsource to control costs reason for downsizing and strategies moving forward
©McGraw‐Hill Education. ©McGraw‐Hill Education.
Figure 2.5 Number of Job Cuts Announced by Focus on Strategy 7
Employers during the Past Decade
Cost Control: Reengineering
• Complete review of organization’s work processes to make
them more efficient and able to deliver higher quality
• Effects on HRM:
• How HR accomplishes goals may change dramatically
• HR must design and implement change so that all employees will
be committed to the reengineered organization’s success
Jump to long description in appendix.
©McGraw‐Hill Education. Source: Challenger, Gray & Christmas, “Lowest Job Cut Total Since 1990,” news release, January 4, 2018, http://www.challengergray.com. ©McGraw‐Hill Education.
Focus on Strategy 8 Focus on Strategy 9
Cost Control: Outsourcing Expanding Into Global Markets
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Figure 2.6 Where Immigrants to the United States Technological Change in HRM 1
Came from in 2016
Human Resource Information System (HRIS)
• Computer system that automates HR processes
• Improves accuracy and efficiency; helps avoid lawsuits
• Supports strategic and day‐to‐day decision making
Even hiring at home may
• Provides data for evaluating programs or policies
involve selection of
employees from other • Cloud computing expands use of HRIS
countries.
• Organization can set up an intranet to protect info
Jump to long description in appendix.
Source: Ryan Baugh, “U.S. Lawful Permanent Residents: 2016,” Annual Flow Report (Department
©McGraw‐Hill Education. of Homeland Security, Office of Immigration Statistics, December 2017), http://www.dhs.gov. ©McGraw‐Hill Education.
Technological Change in HRM 2 Technological Change in HRM 3
People Analytics Sharing of Human Resource Information
• The use of computers to analyze large amounts of data and • Employees can now access HR info through self‐service
offer information to guide decisions • Using self‐service has privacy and efficiency benefits
• Artificial Intelligence (AI) can improve HR decisions
• Job analysis
• Recruiting and selection
Access to an HRIS from mobile devices is
• Performance management helpful for employees who work outside the
• Employee relations office because they can receive and share
information online easily. The benefits of
©Comstock/PunchStock
products such as smartphones are
enormous, but is it possible to be too
accessible?
©McGraw‐Hill Education. ©McGraw‐Hill Education.
Table 2.2 Automating HR Tasks 1 Table 2.2 Automating HR Tasks 2
Sources: Erica Volini, Pascal Ocean, Michael Stephan, and Brett Walsh, “Digital HR: Platforms, People, and Work,”
Rewriting the Rules for the Digital Age (Deloitte, 2017), pp. 87–94; Mary E. Shacklett, “What Is HCM Software, and
©McGraw‐Hill Education.
What Are the HR Software Benefits?” TechTarget, February 2018, http:// searchhrsoftware. techtarget. ©McGraw‐Hill Education.
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Change in the Employment Relationship 1 Change in the Employment Relationship 2
A Psychological Contract Flexibility
• Unspoken expectations of both employee and employer • Flexible staffing levels
• Employees expected to take responsibility in careers • Allows an organization to quickly meet changing needs
• Employers expected to provide perks in exchange • Alternative work arrangements: independent contractors, on‐call
workers, temporary workers, contract workers
Declining Union Membership
• Flexible work schedules
• Has been declining since 1980s; consistent with idea of
• Helps protect employees’ free time and to more productively use
individual workers taking responsibility for own careers employees’ work time
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Appendix to Figure 2.1 Age Distribution of U.S.
Labor Force, 2016 and 2026
Age Distribution in 2016:
16 to 24 years old: 13 percent
Appendix of Image Long 25 to 54 years old: 64 percent
Descriptions 55 years and older: 23 percent
Projected Age Distribution in 2026:
16 to 24 years old: 12 percent
25 to 54 years old: 63 percent
55 years and older: 25 percent
Return to original slide
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©McGraw‐Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw‐Hill Education. ©McGraw‐Hill Education.
Appendix to Figure 2.3 HRM Practices That Appendix to Figure 2.4 Business Strategy:
Support Diversity Management Issues Affecting HRM
Communication: Communicate with employees from a variety of 1. Mergers and Acquisitions
backgrounds.
2. Reengineering
Development: Provide career development for employees with
3. International Expansion
different backgrounds and abilities.
4. Downsizing
Performance appraisal: Provide feedback based on objective
outcomes. 5. Outsourcing
Employee Relations: Create a work environment that is 6. Total Quality Management
comfortable for all and fosters creativity.
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Appendix to Figure 2.5 Number of Job Cuts Appendix to Figure 2.6 Where Immigrants to
Announced by Employers during the Past Decade the United States Came from in 2016
All numbers are approximate. Asia: 39 percent
2007 800,000
2008 1,200,000 North America: 31 percent
2009 1,250,000
Central and South America: 11 percent
2010 500,000
2011 600,000 Africa: 10 percent
2012 500,000
2013 450,000 Europe: 8 percent
2014 400,000
2015 600,000
Other: 1 percent
2016 550,000
2017 450,000
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