Fundamentals of Human

Resource Management
Ninth Edition

DeCenzo and Robbins

Chapter 1
Strategic Implications of a Dynamic HRM Environment

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Introduction
 The World of Work - continues to change, but at an
even more rapid pace.
 HR must understand the implications of:
 globalization
 technology changes
 workforce diversity
 changing skill requirements
 continuous improvement initiatives
 the contingent work force
 decentralized work sites
 and employee involvement

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Understanding Cultural
Environments
 Today’s business world is truly a global village.
This term refers to the fact that businesses currently
operate around the world.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Understanding Cultural
Environments
 HRM must ensure that
 employees can operate in the appropriate language

 communications are understood by a multilingual work force

 Ensure that workers can operate in cultures that differ on

variables such as
 status differentiation

 societal uncertainty

 assertiveness

 individualism

 HRM also must help multicultural groups work together.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Understanding Cultural
Environments
 GLOBE Dimensions:
 Assertiveness
 Future Orientation
 Gender Differentiation
 Uncertainty Avoidance
 Power Distance
 Individualism/collectivism
 In-group collectivism
 Performance orientation
 Humane orientation
Fundamentals of Human Resource Management 9e, DeCenzo and Robbins
 Understanding Cultural
Environments
 Cultural Implications for HRM
 Not all HRM theories and practices are universally
applicable.
 HRM must understand varying cultural values.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 The Changing World of
Technology
 Has altered the way people work.
 Has changed the way information is created,
stored, used, and shared.
 The move from agriculture to industrialization
created a new group of workers – the blue-
collar industrial worker.
 Since WWII, the trend has been a reduction
in manufacturing work and an increase in
service jobs.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 The Changing World of
Technology
 Knowledge Worker - individuals whose jobs are
designed around the acquisition and application of
information.
 Why the emphasis on technology:
 makes organizations more productive

 helps them create and maintain a competitive

advantage
 provides better, more useful information

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 The Changing World of
Technology
 How Technology Affects HRM Practices
 Recruiting
 Employee Selection
 Training and Development
 Ethics and Employee Rights
 Motivating Knowledge Workers
 Paying Employees Market Value
 Communication
 Decentralized Work Sites
 Skill Levels
 Legal Concerns

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Workforce Diversity
 The challenge is to make organizations more
accommodating to diverse groups of people.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Workforce Diversity
 The Workforce Today
 minorities and women have become the fastest
growing segments
 the numbers of immigrant workers and older
workers are increasing

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Workforce Diversity
 How Diversity Affects HRM
 Need to attract and maintain a diversified work
force that is reflective of the diversity in the
general population.
 Need to foster increased sensitivity to group
differences.
 Must deal with the different
 Values
 Needs
 Interests
 Expectations of employees
Fundamentals of Human Resource Management 9e, DeCenzo and Robbins
 Workforce Diversity
 What Is a Work/Life Balance?
 A balance between personal life and work
 Causes of the blur between work and life
 The creation of global organizations means the world
never sleeps.
 Communication technologies allow employees to work
at home.
 Organizations are asking employees to put in longer
hours.
 Fewer families have a single breadwinner.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Labor Supply
 Do We Have a Shortage of Skilled Labor?
 The combination of the small Gen-X population,
the already high participation rate of women in the
workforce, and early retirements will lead to a
significantly smaller future labor pool from which
employers can hire.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Labor Supply
 Why Do Organizations Lay Off During
Shortages?
 Downsizing is part of a larger goal of balancing
staff to meet changing needs.
 Organizations want more flexibility to better
respond to change.
 This is often referred to as rightsizing, linking
employee needs to organizational strategy.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Labor Supply
 How Do Organizations Balance Labor
Supply?
 Organizations are increasingly using contingent
workers to respond to fluctuating needs for
employees.
 Contingent workers include
 Part-time workers
 Temporary workers
 Contract workers

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Labor Supply

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Labor Supply
 Issues Contingent Workers Create for HRM
 How to attract quality temporaries
 How to motivate employees who are receiving
less pay and benefits
 How to have them available when needed
 How to quickly adapt them to the organization
 How to deal with potential conflicts between core
and contingent workers

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Continuous Improvement
Programs
 Continuous improvement - making constant
efforts to provide better products and service
to customers
 External
 Internal
 Quality management concepts have existed
for over 50 years and include the pioneering
work of W. Edwards Deming.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Continuous Improvement
Programs
 Key components of continuous
improvement are:
 Focus on the customer
 Concern for continuous improvement
 Improvement in the quality of everything
 Accurate measurement
 Empowerment of employees

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Continuous Improvement
Programs
 Work Process Engineering involves radical,
quantum changes to entire work processes.
 How HRM Assists in Work Process Engineering
 Helps employees deal with the emotional aspects of
conflict and change
 Provides skills training
 Adapts HR systems, such as compensation, benefits, and
performance standards.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Employee Involvement
 Delegation – having the authority to make decisions
in one’s job
 Work teams – workers of various specializations
who work together in an organization
 HRM must provide training to help empower
employees in their new roles.
 Involvement programs can achieve:
 greater productivity
 increased employee loyalty and commitment

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 A Look at Ethics
 Three views of ethics:
 Utilitarian View – decisions are made on the basis of their
outcomes or consequences
 Rights View – decisions are made with concern for
respecting and protecting individual liberties and privileges
 Theory of Justice View – decisions are make by enforcing
rules fairly and impartially
 Code of ethics - a formal document that states an
organization’s primary values and the ethical rules it
expects organizational members to follow.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins