Chapter 2

Trends in Human Resources
Management
Text book: Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P.
M. (2018). Fundamentals of human resource management. NY:
McGraw-Hill.
Learning objectives
• Describe trends in the labor force composition and how

they affect human resource management.
• Summarize areas in which human resource management
can support the goal of creating a high-performance work
system.
• Define employee empowerment, and explain its role in the
modern organization.
• Identify ways HR professionals can support organizational
strategies for growth, quality, and efficiency.
Nhat Tan Pham, Ph.D. Green your life, green your company,
Learning objectives
• Summarize ways in which human resource management can

support organizations expanding internationally.
• Discuss how technological developments are affecting human
resource management.
• Explain how the nature of the employment relationship is
changing.
• Discuss how the need for flexibility affects human resource
management.
1. Change in Labor force
Internal Labor Force External Labor Force
• An organization’s workers: Its • Individuals who are actively
employees and people who seeking employment.
have contracts to work at the • The number and kinds of people
organization. in the external labor market
• Internal labor force has been determine the kinds of human
drawn from the external labor resources available to an
market. organization (and their cost).
An aging workforce
An aging workforce
An aging workforce
• HR professionals spend much time on concerns related to

retirement planning, retraining older workers, and motivating
workers whose careers have reached a plateau.
• Organizations struggle to control rising costs of health care
and other benefits.
• Managers will supervise employees much older than
themselves.
An aging workforce
• Organizations must find ways to attract, retain, and prepare

young labor force.
• As more of the workforce reaches retirement age, some
companies have asked them if they would be interested in
the possibility of ever returning to work on projects (or
part-time works), or set up mentoring programs between
older and younger workers so that knowledge is not lost but
passed on
A diverse workforce (for example: US
workforce)
-
workforce)
• Other foreign-born workers in the United States arrived in this
country without meeting the legal requirements for immigration or
asylum.
• One important source of racial and ethnic diversity is immigration
• The greater diversity of the U.S. labor force challenges employers to
create HRM practices that ensure that they fully utilize the talents,
skills, and values of all employees.
• Employers will have to ensure that employees and HRM systems are
free of bias and value the perspectives and experience that women
and minorities can contribute to organizational goals
workforce)
Managing cultural diversity involves many different
activities:
• creating an organizational culture that values diversity,
• ensuring that HRM systems are bias-free,
• encouraging career development for women and minorities,
• promoting knowledge and acceptance of cultural differences,
• ensuring involvement in education both within and outside the
organization,
• dealing with employees’ resistance to diversity
HRM practices support diversity
management
Skill deficiencies in workforce
• The increasing use of computers to do routine tasks has

shifted the kinds of skills needed
• Such qualities as physical strength and mastery of a
particular piece of machinery are no longer important for
many jobs
• More employers are looking for mathematical, verbal, and
interpersonal skills.
Skill deficiencies in workforce
Today, ….
• Employees must be able to handle a variety of
responsibilities, interact with customers, and creative
thinking.
• A college degree is a basic requirement for many jobs
today.
• Not all the skills employers want require a college
education. Thus, companies and communities have set up
apprenticeship and training programs to fix the worker
shortage
2. High-Performance Work Systems
(HPWS)
HPWS is an organization in which technology, organizational
structure, people, and processes work together seamlessly to
give an organization an advantage in the competitive
environment.
Today’s HPWS rely on:
•knowledge workers,
•empowerment of employees to make decisions,
•use of teamwork
Knowledge Workers
• It prefers employees whose main contribution to the

organization is specialized knowledge, such as knowledge of
customers, a process, or a profession.
• Knowledge workers are in a position of power because they
own the knowledge that the company needs in order to
produce its products and services. Also, they must share their
knowledge and collaborate with others in order for their
employer to succeed
Employee empowerment
Giving employees responsibility and authority to make decisions
regarding all aspects of product development or customer service.
Ensuring the success of employee empowerment
• HRM practices such as performance management, training, work
design, and compensation are important
• Managers must be trained to link employees to resources within and
outside the organization, such as customers, co-workers, and
websites.
• Managers must also encourage employees to interact with staff
throughout the organization, must ensure that employees receive the
information
• Employees are fully engaged in their work
Teamwork
• It is 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 activities traditionally
reserved for managers such as (1) selecting new team
members, (2) scheduling work, and (3) coordinating work
with customers and other units.
Teamwork
• Work teams also contribute to total quality by performing

inspection and quality-control activities while the product or
service is being completed.
• Virtual teams are so popular now— that rely on
communications technology such as videoconferences,
e-mail, and cell phones to keep in touch and coordinate
activities.
3. Focus on Strategy
Business
strategy: Issues
affecting HRM
Mergers and Acquisitions
• Often organizations join forces through mergers (two

companies becoming one) and acquisitions (one company
buying another).
• Some mergers and acquisitions result in consolidation
within an industry, meaning that two firms in one industry
join to hold a greater share of the industry
HRM should have a significant role in carrying out a merger or
acquisition. Differences between the businesses involved in the
deal make conflict inevitable, therefore,
▪ Training efforts should include development of skills in conflict
resolution.
▪ HR professionals have to sort out differences in the two
companies’ practices with regard to compensation, performance
appraisal, and other HR systems.
▪ Settling on a consistent structure to meet the combined
organization’s goals may help bring employees together.
M&A failures
Microsoft and Nokia (2013): US$7 billion
Google and Motorola (2012): US$12.5 billion
Total quality management (TQM)
TQM-a companywide effort to continually improve the ways people,
machines, and systems accomplish work.
TQM has several core values:
• Methods and processes are designed to meet the needs of internal and
external customers (that is, whomever the process is intended to serve).
• Every employee in the organization receives training in quality.
• Quality is designed into a product or service so that errors are prevented
from occurring, rather than being detected and corrected in an error-prone
product or service. ∙
• The organization promotes cooperation with vendors, suppliers, and
customers to improve quality and hold down costs.
• Managers measure progress with feedback based on data.
Total quality management (TQM)
To promote quality, organizations need:
• An environment that supports innovation, creativity, and
risk-taking to meet customer demands.
• Problem-solving should bring together managers, employees,
and customers.
• Employees should communicate with managers about customer
needs.
• A focus on the HRM function itself, such as employee selection,
training and development, and performance management
Control costs
HRM strategy to control costs
Downsizing Reengineering Outsourcing
Cắt giảm nhân sự
Downsizing
It is measured by the number of job cuts announced by

employers
The main reason employers gave for downsizing was
restructuring their operations to be more profitable
HRM challenges of the downsizing policy
• HRM department must “surgically” reduce the workforce by
cutting only the workers who are less valuable in their
performance.
• Achieving this is difficult because the best workers are most able
(and often willing) to find alternative employment and may leave
voluntarily before the organization lays off anyone.
• The surge in unemployment created a climate of fear for many
workers.
• Early-retirement programs are humane, but they essentially
reduce the workforce with a “grenade” approach—not
distinguishing good from poor performers but instead eliminating
Nhat Tan Pham, Ph.D.group of employees.
an entire Green your life, green your company,
HRM challenges of the downsizing policy
• Another HRM challenge is to boost the morale of employees who
remain after the reduction
• HRM should maintain open communication with remaining
employees to build their trust and commitment, rather than
withhold information.
• All employees should be informed why the downsizing is
necessary, what costs are to be cut, how long the downsizing will
last, and what strategies the organization intends to pursue.
• HRM can provide downsized employees with outplacement
services to help them find new jobs, which show that it cares
about its employees, even though it cannot afford to keep all of
them Ph.D.
Nhat Tan Pham, on the payroll. Green your life, green your company,
Tái cấu trúc
Reengineering
Reengineering is a complete review of the organization’s

critical work processes to make them more efficient and able
to deliver higher quality.
Reengineering involves reviewing all the processes
performed by all the organization’s major functions, including
production, sales, accounting, and human resources.
Reengineering
Reengineering affects HRM in two ways:

• The way the HR department itself accomplishes its goals
may change dramatically.
• The fundamental change throughout the organization
requires the HR department to help design and implement
change so that all employees will be committed to the
success of the reengineered organization.
Outsourcing
Outsourcing is contracting with another organization (vendor,

third-party provider, or consultant) to provide services.
Outsourcing gives the company access to in-depth expertise and is
often more economical as well
Thuê ngoài
Outsourcing
HR functions are being outsourced.
Today’s outsourcing is moving more into areas that automate
processes and support decision making.
Providers of benefits administration help companies set up
enrollment and training via online platforms that employees,
especially younger employees, have come to expect.
Outsourcing HRM has helped the company stay in compliance with
labor laws and provided a source of advice in support of its
strategy.
Expanding into Global Markets
Businesses must….
• develop global markets,
• keep up with competition from overseas,
• hire from an international labor pool,
• prepare employees for global assignments
However, this global expansion can pose some challenges for HRM
as HR employees learn about the cultural differences that shape
the conduct of employees in other parts of the world
Global workforce
• Offshoring - moving operations from the country where a
company is headquartered to a country where pay rates (for
workers) are lower but the necessary skills are available. It relies
on labor cost
• Reshoring - reestablishing operations back in the country where a
company is headquartered due to quality and flexibility concerns.
• However, challenges may include employees’ lack of familiarity
with technology and corporate practices, as well as political and
economic instability in the areas
Global workforce
Important issues that HR experts can help companies weigh

include:
• Whether workers in the offshore locations can provide the
same or better skills,
• How offshoring will affect motivation and recruitment of
employees needed in the host country, especially big
countries like the US.
• Whether managers are well prepared to manage and lead
offshore employees
Global workforce
International assignments
Today, international assignments are really important,
especially for multinational companies
This requires HR expertise in selecting employees for
international assignments and preparing them for those
assignments.
Employees who take assignments in other countries are called
expatriates
4. Technological change in HRM
Human Resource Information System (HRIS) - A computer

system used to acquire, store, manipulate, analyze, retrieve,
and distribute information related to an organization’s human
resources.
Human Resource Information System
(HRIS)
Human Resource Information System
(HRIS)
• HRIS can support strategic decision making, help the organization
avoid lawsuits, provide data for evaluating programs or policies,
and support day-to-day HR decisions.
• HRIS can help HR professionals think strategically. As strategies
are planned, implemented, and changed, the organization must be
constantly prepared to have the right talent in place at all levels.
• HRIS can support talent management by integrating data on
recruiting, performance management, and training
Electronic Human Resource Management
and Cloud computing
• Electronic Human Resource Management (e-HRM) - The
processing and transmission of digitized HR information,
especially using computer networking and the Internet.
• Cloud Computing - The practice of using a network of remote
servers hosted on the Internet to store, manage, and process
data.
Electronic Human Resource Management
and Cloud computing
Sharing of Human Resource Information
• Through using technology, HR employees play a smaller role in
maintaining records, and employees now get information through
self-service.
• Self-service - employees have online access to information about
HR issues such as training, benefits, compensation, and contracts;
go online to enroll themselves in programs and services, and
provide feedback through online surveys.
• Today employees routinely look up workplace policies and
information about their benefits online, and they may receive
electronic notification when deposits are made directly to their
bank accounts
5. Change in the Employment Relationship
• Psychological Contract - A description of what an employee
expects to contribute in an employment relationship and what the
employer will provide the employee in exchange for those
contributions.
• In the traditional view of this psychological contract, organizations
expected their employees to contribute time, effort, skills, abilities,
and loyalty. In return, the organizations would provide job security
and opportunities for promotion
Psychological Contract …
• Today, companies expect employees to take more responsibility
for their own careers, from seeking training to balancing work and
family. This results in less job security for employees.
• Therefore, employees want companies to provide: flexible work
schedules, comfortable working conditions, more control over how
they accomplish work, training and development opportunities,
and financial incentives.
• Also, employees want employability because they want their
company to provide training and job experiences to help ensure
that they can find other employment opportunities
Question Discussion
Q1. What do you think about the importance of a Bachelor's

degree in the future labor market, especially in the
technology field?
Please access the following link and present your ideas
https://content.techgig.com/google-launches-6-month-certific
ation-program-to-teach-in-demand-tech-skills/articleshow/77
706263.cms
Q2. What are job skills needed for employees during and
Nhat Tan post
Pham,covid-19
Ph.D. pandemic? Green your life, green your company,
Question Discussion
Q3. With “America First” policy, U.S. President Donald

Trump is changing international trade law dramatically. For
instance, he withdrew the United States from the
Trans-Pacific Partnership (TPP), FTA with Mexico and
Canada (NAFTA), South Korea (KORUS), as well as trade
war with China. What do you think about changes in the
global workforce towards US companies?
https://english.bdi.eu/article/news/america-first-u-s-trade-poli
cy-under-president-donald-trump/
Other references
• Robert L. Mathis & John H. Jackson 2011, Human Resource Management,
South-Western, 13th edition.
• Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human
resource management influence organizational outcomes? A meta-analytic
investigation of mediating mechanisms. Academy of management Journal,
55(6), 1264-1294.
• Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM
and strategic human resource management. Human Resource
Management Review, 23(1), 18-36.

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Chapter 2

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Trends in Human Resources

• Describe trends in the labor force composition and how

• Summarize ways in which human resource management can

• HR professionals spend much time on concerns related to

• Organizations must find ways to attract, retain, and prepare

• The increasing use of computers to do routine tasks has

• It prefers employees whose main contribution to the

• It is the assignment of work to groups of employees with

• Work teams also contribute to total quality by performing

• Often organizations join forces through mergers (two

Microsoft and Nokia (2013): US$7 billion

Google and Motorola (2012): US$12.5 billion

HRM strategy to control costs

Downsizing Reengineering Outsourcing

It is measured by the number of job cuts announced by

Reengineering is a complete review of the organization’s

Reengineering affects HRM in two ways:

Outsourcing is contracting with another organization (vendor,

Important issues that HR experts can help companies weigh

Human Resource Information System (HRIS) - A computer

Q1. What do you think about the importance of a Bachelor's

Q3. With “America First” policy, U.S. President Donald

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