D U C T I O N T O H U M A N

INTRO
RE SO U R C E M A N A G EM E N T
 ENTRANCE SURVEY VIA ILEARN
 LECTURE NOTES
 SCHEME OF WORK
 ASSESSMENT
 ATTENDANCE
 ATTIRE
 MOBILE PHONE
CHAPTER OBJECTIVES
AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO

1. EXPLAIN THE BASIC CONCEPTS AND DEFINITIONS OF HRM.

2. EXPLAIN THE IMPORTANCE OF HUMAN RESOURCE

MANAGEMENT (HRM).

3. EXPLAIN HRM AND THE ENVIRONMENTAL FACTORS.

4. EXPLAIN HRM AND THE CURRENT GLOBAL CHALLENGES.

WHAT IS HUMAN RESOURCE MANAGEMENT?

• THEPROCESS OF MANAGING HUMAN TALENTS TO ACHIEVE AN

ORGANIZATION’S OBJECTIVES (SNELL & BOHLANDER, 2007).

• THE UTILIZATION OF A FIRM’S HUMAN RESOURCES TO ACHIEVE

ORGANIZATIONAL OBJECTIVES (MONDY & NOE, 2005).

• PHILOSOPHIES, POLICIES, PROCEDURES AND PRACTICES RELATED

TO THE MANAGEMENT OF PEOPLE WITHIN ORGANIZATION (NOE ET
AL., 2007; DESSLER, 2005).

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 WHAT IS HUMAN RESOURCE MANAGEMENT?

• THE DESIGN OF FORMAL SYSTEMS IN AN ORGANIZATION TO ENSURE

EFFECTIVE AND EFFICIENT USE OF HUMAN TALENT TO ACCOMPLISH
ORGANIZATIONAL GOALS (MATHIS & JACKSON, 2004).

• STRATEGIC AND COHERENT APPROACH TO THE MANAGEMENT OF AN

ORGANIZATION’S MOST VALUED ASSETS – THE PEOPLE
(ARMSTRONG).

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 HUMAN RESOURCE MANAGEMENT AND
NATION BUILDING

• ECONOMIC TRANSFORMATION PROGRAMME (ETP) - HUMAN CAPITAL DEVELOPMENT STRATEGIC REFORM INITIATIVE
OF THE. IN ORDER TO ATTRACT, DEVELOP, RETAIN THE TOP TALENT REQUIRED FOR MALAYSIA TO REACH HER AMBITION
OF A DEVELOPED ECONOMY BY 2020, IT IS IMPERATIVE THAT WE RAISE THE BAR OF THE HR PROFESSION TO IMPROVE
THE WORKPLACE PRACTICES AND TALENT MANAGEMENT INITIATIVES IN THEIR ORGANISATIONS.

• 2030 AGENDA - THE SUSTAINABLE DEVELOPMENT GOALS (SCIENCE, TECHNOLOGY AND INNOVATION AND GENDER
EQUALITY). ITS HUMAN DEVELOPMENT GOALS ARE COMPLEMENTED BY GOALS PROMOTING INCLUSIVE GROWTH;
DECENT WORK; ESSENTIAL INFRASTRUCTURE - INCLUDING ENERGY AND INFORMATION COMMUNICATION
TECHNOLOGIES (ICTS); AND, THAT FUNDAMENTAL PRECONDITION FOR SUSTAINABLE DEVELOPMENT, PEACEFUL AND
INCLUSIVE SOCIETIES

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 WHY STUDY HUMAN RESOURCES MANAGEMENT?

 STAFFING THE ORGANIZATION, DESIGNING JOBS AND TEAMS,

DEVELOPING SKILLFUL EMPLOYEES, IDENTIFYING APPROACHES
FOR IMPROVING THEIR PERFORMANCE, AND REWARDING
EMPLOYEE SUCCESSES—ALL TYPICALLY LABELED HRM ISSUES—
ARE AS RELEVANT TO LINE MANAGERS AS THEY ARE TO
MANAGERS IN THE HR DEPARTMENT.
 BY INFLUENCING WHO WORKS FOR THE ORGANIZATION AND HOW
THOSE PEOPLE WORK, HRM CONTRIBUTES TO QUALITY,
PROFITABILITY AND CUSTOMER SATISFACTION
 GREAT BUSINESS PLANS, PRODUCTS AND SERVICES CAN EASILY
BE COPIED BY YOUR COMPETITORS. GREAT PERSONNEL CANNOT.
THE IMPORTANCE OF HRM

• TOGAIN / SUSTAINED COMPETITIVE ADVANTAGE THROUGH PEOPLE BY

MEETING THE FOLLOWING CRITERIA:
• THE RESOURCES MUST BE VALUE - IT INCREASE WHEN EMPLOYEES FIND WAYS TO
DECREASE COSTS, PROVIDE UNIQUENESS OF THE PRODUCT/SERVICE TO THE CUSTOMERS
OR WITH THE COMBINATION OF BOTH.

• THE RESOURCES MUST BE RARE – WHEN THEIR SKILLS, KNOWLEDGE, ABILITIES,

ATTITUDES (KSA) ARE NOT THE SAME WITH THE COMPETITORS.

• THE RESOURCES MUST BE DIFFICULT TO IMITATE - EACH EMPLOYEES HAVE DIFFERENT

KSA’S AND CANNOT BE COPIED BY OTHERS.

• THE RESOURCES MUST BE ORGANIZED – WHEN THEIR KSA’S CAN BE COMBINED AND CAN
BE RAPIDLY USED TO IMPROVE THE EFFICIENCY AND EFFECTIVENESS OF THE COMPANY.

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THE IMPORTANCE OF HRM

• TO DEVELOP EMPLOYEES FOR THE BENEFIT OF ORGANIZATION.

• TO RECOGNIZE EMPLOYEES AS AN IMPORTANCE ASSET.
• TO PROMOTE MANAGEMENT EFFECTIVENESS AND EFFICIENCY.
• TO ENSURE CONSISTENT AND FAIR TREATMENT OF EMPLOYEES.
• TO CONTROL HR PERFORMANCE.
• TO RECOMMEND HR POLICIES.

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THE IMPORTANCE OF HRM

• TO ACT AS STRATEGIC PARTNER TO THE ORGANIZATION.

• PROPER HR PLANNING IN THE ORGANIZATION.
• TO DEAL WITH HR ISSUES AND CHALLENGES.
• VIEWED AS EQUIVALENT TO FINANCIAL MANAGEMENT, PRODUCTION
MANAGEMENT & MARKETING MANAGEMENT.

• TOENSURE THE PEOPLE EMPLOYED BY THE ORGANIZATION ARE BEING

USED AS EFFICIENTLY & EFFECTIVELY.

• TO CONTRIBUTE TOWARDS ACHIEVING THE ORGANIZATIONAL GOALS

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 HUMAN CAPITAL AND HRM

• WORDS TO DESCRIBE HOW IMPORTANT PEOPLE

ARE TO ORGANIZATIONS
 HUMAN RESOURCES,
 HUMAN CAPITAL,
 INTELLECTUAL ASSETS, AND
 TALENT MANAGEMENT.

“An organization’s ability to learn, and translate that learning into action rapidly,
is the ultimate competitive business advantage.” ( Jack Welch, General Electric)

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 HUMAN CAPITAL AND HRM

• HUMAN CAPITAL - THE KNOWLEDGE, SKILLS, AND

CAPABILITIES OF INDIVIDUALS THAT HAVE
ECONOMIC VALUE TO AN ORGANIZATION
 HUMAN CAPITAL IS INTANGIBLE AND CANNOT BE
MANAGED THE WAY ORGANIZATIONS MANAGE JOBS,
PRODUCTS, AND TECHNOLOGIES.
 VALUABLE BECAUSE CAPITAL:
• IS BASED ON COMPANY-SPECIFIC SKILLS.

• IS GAINED THROUGH LONG-TERM EXPERIENCE.

• CAN BE EXPANDED THROUGH DEVELOPMENT.

 HUMAN CAPITAL AND HRM

• INTELLECTUAL ASSET/CAPITAL
 TO REFLECT THE THINKING,
KNOWLEDGE, CREATIVITY AND
DECISION MAKING THAT PEOPLE IN
ORGANIZATIONS CONTRIBUTE
OVERVIEW

COMPENSATION
&
BENEFITS
EMPLOYMENT
HUMAN
&
RESOURCE
LABOR
DEVELOPMENT
RELATIONS

SAFETY
STAFFING HRM &
HEALTH

The HRM System (Mondy & Noe, 2005)

 THE FUNCTIONS OF HRM

1. STAFFING
THE PROCESS THROUGH WHICH AN ORGANIZATION
ENSURES THAT IT ALWAYS HAS THE PROPER NUMBER OF
EMPLOYEES WITH THE APPROPRIATE SKILLS AT THE RIGHT
JOBS AT THE RIGHT TIME TO ACHIEVE THE
ORGANIZATION’S OBJECTIVES. STAFFING INVOLVES JOB
ANALYSIS, HR PLANNING, RECRUITMENT AND SELECTION.
a. JOB ANALYSIS IS THE SYSTEMATIC PROCESS OF DETERMINING THE
SKILLS, DUTIES AND KNOWLEDGE REQUIRED FOR PERFORMING JOBS IN
AN ORGANIZATION. IT CONSISTS OF JOB DESCRIPTION AND JOB
SPECIFICATION.
b. HR PLANNING IS THE PROCESS OF COMPARING HUMAN RESOURCE
REQUIREMENTS WITH THEIR AVAILABILITY AND DETERMINING WHETHER
THE FIRM HAS A SHORTAGE OR EXCESS OF PERSONNEL. THE DATA THEN
USED FOR RECRUITMENT OR OTHER HR FUNCTIONS.
c. RECRUITMENT IS THE PROCESS OF ATTRACTING QUALIFIED INDIVIDUALS
AND ENCOURAGING THEM TO APPLY FOR WORK WITH THE ORGANIZATION.
d. SELECTION IS THE PROCESS THROUGH WHICH THE ORGANIZATION
CHOOSE THOSE INDIVIDUALS IN A GROUP OF APPLICANTS THAT BEST
SUITED THE POSITION AND THE COMPANY (INTERVIEW).
 THE FUNCTIONS OF HRM

2. HUMAN RESOURCE DEVELOPMENT (HRD)

HRD IS A MAJOR HRM FUNCTIONS THAT CONSIST OF TRAINING
AND DEVELOPMENT, CAREER PLANNING & DEVELOPMENT,
ORGANIZATION DEVELOPMENT AND PERFORMANCE APPRAISAL.
A. TRAINING IS DESIGNED TO PROVIDE LEARNERS WITH THE
KNOWLEDGE AND SKILLS NEEDED FOR THEIR PRESENT JOB.
DEVELOPMENT INVOLVES LEARNING THAT GOES BEYOND TODAY’S
JOB PARTICULARLY FOR A LONG TERM CAREER DEVELOPMENT.
 THE FUNCTIONS OF HRM

b.CAREER PLANNING IS AN ONGOING PROCESS WHEREBY AN INDIVIDUAL SETS

CAREER GOALS AND IDENTIFIES THE MEANS TO ACHIEVE THEM. CAREER
DEVELOPMENT IS A FORMAL APPROACH USED BY THE ORGANIZATION TO
ENSURE THAT PEOPLE WITH THE PROPER QUALIFICATIONS AND
EXPERIENCES ARE AVAILABLE WHEN NEEDED.
c.ORGANIZATION DEVELOPMENT IS THE PLANNED PROCESS OF IMPROVING AN
ORGANIZATION BY DEVELOPING ITS STRUCTURES, SYSTEMS AND PROCESS
TO IMPROVE EFFECTIVENESS AND ACHIEVING DESIRED GOALS.
d.PERFORMANCE APPRAISAL IS FORMAL SYSTEM OF REVIEW AND EVALUATION
OF INDIVIDUAL OR TEAM TASK PERFORMANCE.
 THE FUNCTIONS OF HRM
3. COMPENSATION AND BENEFITS

COMPENSATION REWARDS PEOPLE FOR PERFORMING ORGANIZATIONAL WORK

THROUGH PAY AND INCENTIVES. MEANWHILE BENEFITS ARE AN NON FINANCIAL
REWARDS SUCH AS HOLIDAYS, SICK LEAVE AND MEDICAL COVERAGE (EMPLOYMENT
ACT, MACHINERY ACT).

4. SAFETY AND HEALTH

SAFETY INVOLVES PROTECTING EMPLOYEES FROM INJURIES CAUSED BY WORK

RELATED ACCIDENTS. HEALTH REFERS TO THE EMPLOYEES’ FREEDOM FROM PHYSICAL
OR EMOTIONAL ILLNESS (OSHA, DOSH).

5. EMPLOYEE AND LABOR RELATIONS

WHEN EMPLOYEES ARE REPRESENTED BY UNION, THE HUMAN RESOURCE ACTIVITY IS

OFTEN REFERRED TO AS AN INDUSTRIAL RELATIONS WHICH HANDLES THE JOB OF
COLLECTIVE BARGAINING (INDUSTRIAL RELATIONS ACT).
FIGURE 1.1 PROVIDES AN OVERALL FRAMEWORK OF HR ACTIVITIES. FROM THIS
FIGURE, WE CAN SEE THAT MANAGERS HAVE TO HELP BLEND MANY ASPECTS
OF MANAGEMENT. IT IS THE BASIS FOR OUR DISCUSSION THROUGHOUT THIS
CHAPTER.

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AFFECTING FACTORS TO HRM

• EXTERNAL FACTORS
• FACTORS THAT AFFECT A FIRM’S HUMAN RESOURCES FROM OUTSIDE
THE ORGANIZATION’S BOUNDARIES.

• INTERNAL FACTORS
• FACTORS THAT AFFECT A FIRM’S HUMAN RESOURCES FROM INSIDE
ORGANIZATION

• ALL
FACTORS (INTERNAL AND EXTERNAL) VERY MUCH DEPENDING ON THE
STRATEGY AND POLICIES SET UP BY THE ORGANIZATION THAT ALSO CAN
HAVE A DIRECT IMPACT PERTAINING HRM IN THAT PARTICULAR
ORGANIZATION.
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EXTERNAL FACTORS

• LABOR FORCE/MARKET

• POOL OF INDIVIDUALS EXTERNAL TO THE FIRM FROM WHICH THE ORGANIZATION

OBTAINS ITS WORKERS. IT ALWAYS CHANGING AND INEVITABLY CAUSE CHANGES
IN THE WORKFORCE OF AN ORGANIZATION (ACCESSIBILITY, LEVEL OF
COMPETENCIES

• LEGAL CONSIDERATIONS/REQUIREMENTS

• RELATES TO FEDERAL, STATE AND LOCAL RULES AND REGULATIONS THAT AFFECT
THE HR POLICIES. VARIOUS ISSUES ON LAWS, POLICIES, RULES & REGULATIONS
IMPOSED BY THE GOVERNMENT (LABOUR DEPARTMENT, EMPLOYMENT ACT,
SAFETY ENVIRONMENT, OSHA, WHISTLE BLOWER PROTECTIONS ACT, SEXUAL
HARASSMENT, COMPENSATION ACT, MACHINERY ACT )

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EXTERNAL FACTORS

• ECONOMIC CONDITIONS
• WHEN THE ECONOMY IS BOOMING, RECRUITING QUALIFIED WORKERS IS
MORE DIFFICULT COMPARED TO DOWNTURN IN ECONOMY.

• ATTRACTIVE SALARY AND BENEFITS TO POTENTIAL AND HIGHLY

QUALIFIED INDIVIDUALS

• TECHNOLOGICAL CHANGES
• TECHNOLOGY CHANGES RAPIDLY AND HR MUST COPE UP WITH THIS
CHANGES TO ENSURE THE SUCCESSFULNESS OF THE ORGANIZATION
(PRODUCTION, MARKETING, AND DISTRIBUTION OF PRODUCTS, HIRING,
STAFFING, DEVELOPING AND COMPENSATING THE EMPLOYEES)
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EXTERNAL FACTORS

• CUSTOMERS
• THEPEOPLE WHO ACTUALLY USE FIRMS GOODS AND SERVICES THAT
OFFER BEST QUALITY PRODUCT AND AFTER SALES SERVICE.
UNDERSTAND THEIR NEEDS AND DEMANDS, SAFEGUARDS THEIR
INTERESTS.

• COMPETITION
• FIRMS
MAY FACE INTENSE COMPETITION IN THE MARKET. COMPETENT
EMPLOYEES GUARANTEED ORGANIZATION SUCCESSFULNESS OVER ITS
COMPETITORS.

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EXTERNAL FACTORS

• SHAREHOLDERS
• THE OWNERS OF A CORPORATION THAT EXPECT HIGH RETURN IN PROFITS AND
SALES REVENUE FOR THEIR INVESTMENT.

• UNIONS
• COMPRISED OF EMPLOYEES WHO HAVE JOINED TOGETHER FOR THE PURPOSE OF
DEALING WITH THEIR EMPLOYER. ANY COLLECTIVE BARGAINING MADE WILL
GIVE AN IMPACT TOWARD THE ORGANIZATIONS DIRECTLY.

• SOCIETY
• SOCIETY
MAY ALSO EXERT PRESSURE ON HRM BY MEANS OF ENSURING THE
ORGANIZATIONS TO COMPLY ON SOCIAL RESPONSIBILITY.

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INTERNAL FACTORS

• MARKETING: HOW ORGANIZATION ATTRACT PEOPLE TO JOIN THEIR

ORGANIZATION TO SELECT THE SUITABLE APPLICANT ETC.
• OPERATIONS: JOB ANALYSIS AND JOB DESIGN FOR EMPLOYEES ETC.
• FINANCE: COST FOR RECRUITMENT, PAYING SALARY, BUDGET FOR TRAINING
ETC.
• ORGANIZATIONAL POLICY: POLICY ON HOW ORGANIZATION MANAGE THEIR
EMPLOYEES.
• ORGANIZATION PERFORMANCE: PERFORMANCE MANAGEMENT OF EMPLOYEES.
• INTERNAL LABOR SUPPLY AND DEMAND: JOB OPENINGS, METHODS AND
SOURCES OF EMPLOYEES.

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 COMPETITIVE CHALLENGES AND
HUMAN RESOURCES MANAGEMENT

• TOP CHALLENGES INCLUDE:

 RESPONDING STRATEGICALLY TO CHANGES IN THE
MARKETPLACE
 COMPETING, RECRUITING, AND STAFFING GLOBALLY
 SETTING AND ACHIEVING CORPORATE SOCIAL RESPONSIBILITY
AND SUSTAINABILITY GOALS
 ADVANCING HRM WITH TECHNOLOGY
 CONTAINING COSTS WHILE RETAINING TOP TALENT AND
MAXIMIZING PRODUCTIVITY
 RESPONDING TO THE DEMOGRAPHIC AND DIVERSITY
CHALLENGES OF THE WORKFORCE
 ADAPTING TO EDUCATIONAL AND CULTURAL SHIFTS AFFECTING
THE WORKFORCE 1–27
 CHALLENGE 1: RESPONDING
STRATEGICALLY TO CHANGES IN THE
MARKETPLACE

• HUMAN RESOURCES MANAGERS AND BUSINESS

STRATEGY
 FROM ADMINISTRATIVE TASKS TO STRATEGIC
PARTNERS.
 HUMAN RESOURCES MANAGERS NEED AN INTIMATE
UNDERSTANDING OF THEIR FIRMS’ COMPETITIVE
BUSINESS OPERATIONS AND STRATEGIES. THEY NEED TO
UNDERSTAND…..
• Total quality management • Change management
• Reengineering • Reactive change
• Downsizing • Proactive change
• Outsourcing • Six Sigma

And more….
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 CHALLENGE 1: RESPONDING
STRATEGICALLY TO CHANGES IN THE
MARKETPLACE (CONT.)
• TOTAL QUALITY MANAGEMENT (TQM)
 A SET OF PRINCIPLES AND PRACTICES WHOSE CORE IDEAS
INCLUDE UNDERSTANDING CUSTOMER NEEDS, DOING THINGS
RIGHT THE FIRST TIME, AND STRIVING FOR CONTINUOUS
IMPROVEMENT.

• SIX SIGMA
 A PROCESS USED TO TRANSLATE CUSTOMER NEEDS INTO A SET
OF OPTIMAL TASKS THAT ARE PERFORMED IN CONCERT WITH
ONE ANOTHER.

– REDUCE DEFECTS AND VARIABILITY

– HR FACILITATES ORGANIZATIONAL DEVELOPMENT OF SIX
SIGMA.

– HR HELPS BALANCE THE OPPOSING NEEDS FOR ORDER AND

CONTROL WITH THE NEEDS FOR GROWTH AND CREATIVITY.

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 CHALLENGE 1: RESPONDING STRATEGICALLY
TO CHANGES IN THE MARKETPLACE (CONT.)

• REENGINEERING AND HRM

 FUNDAMENTAL RETHINKING AND RADICAL REDESIGN
OF BUSINESS PROCESSES TO ACHIEVE DRAMATIC
IMPROVEMENTS IN COST, QUALITY, SERVICE, AND SPEED.

–REQUIRES THAT MANAGERS CREATE AN

ENVIRONMENT OR CHANGE.
–DEPENDS ON EFFECTIVE LEADERSHIP AND
COMMUNICATION PROCESSES.
–REQUIRES THAT ADMINISTRATIVE SYSTEMS
BE REVIEWED AND MODIFIED.

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 CHALLENGE 1: RESPONDING STRATEGICALLY
TO CHANGES IN THE MARKETPLACE (CONT.)

• DOWNSIZING
 THE PLANNED ELIMINATION OF JOBS (“HEAD COUNT”).
 LAYOFFS

• OUTSOURCING
 CONTRACTING OUTSIDE THE ORGANIZATION TO HAVE
WORK DONE THAT FORMERLY WAS DONE BY INTERNAL
EMPLOYEES.

• OFF-SHORING (GLOBAL SOURCING)

 THE BUSINESS PRACTICE OF SENDING JOBS TO OTHER
COUNTRIES.

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 CHALLENGE 1: RESPONDING STRATEGICALLY
TO CHANGES IN THE MARKETPLACE (CONT.)

• WHY CHANGE EFFORTS FAIL:

 NOT ESTABLISHING A SENSE OF URGENCY.
 NOT CREATING A POWERFUL COALITION TO GUIDE THE
EFFORT.
 LACKING LEADERS WHO HAVE A VISION.
 LACKING LEADERS WHO COMMUNICATE THE VISION.
 NOT REMOVING OBSTACLES TO THE NEW VISION.
 NOT SYSTEMATICALLY PLANNING FOR AND CREATING
SHORT-TERM “WINS.”
 DECLARING VICTORY TOO SOON.
 NOT ANCHORING CHANGES IN THE CORPORATE
CULTURE.

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CHALLENGE 2: COMPETING, RECRUITING,
AND STAFFING GLOBALLY

•GLOBALIZATION
APPROXIMATELY 70 TO 85 PERCENT OF THE U.S.
ECONOMY TODAY IS AFFECTED BY INTERNATIONAL
COMPETITION.
ABOUT 10 PERCENT OF WHAT AMERICANS PRODUCE
EVERY YEAR, DOLLAR-WISE, IS SOLD ABROAD.
ISSUES RELATED TO DIFFERENT GEOGRAPHIES,
CULTURES, LAW AND BUSINESS PRACTICES

•IMPACT OF GLOBALIZATION
“ANYTHING, ANYTIME, ANYWHERE” MARKETS,
PARTNERSHIPS WITH FOREIGN FIRMS
LOWER TRADE AND TARIFF BARRIERS; NAFTA, EU, APEC
TRADE AGREEMENTS, WTO AND GATT

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 CHALLENGE 3: SETTING AND ACHIEVING
CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY GOALS

• CORPORATE SOCIAL RESPONSIBILITY (CSR)

 THE RESPONSIBILITY OF THE FIRM TO ACT IN THE BEST
INTERESTS OF THE PEOPLE AND COMMUNITIES
AFFECTED BY ITS ACTIVITIES.

 SUSTAINABILITY IS CLOSELY RELATED TO CORPORATE

SOCIAL RESPONSIBILITY. SUSTAINABILITY REFERS TO A
COMPANY’S ABILITY TO PRODUCE A GOOD OR SERVICE
WITHOUT DAMAGING THE ENVIRONMENT OR DEPLETING
A RESOURCE.

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 CHALLENGE 4: ADVANCING HRM WITH
TECHNOLOGY

• COLLABORATIVE SOFTWARE THAT ALLOWS WORKERS

ANYWHERE ANYTIME TO INTERFACE AND SHARE
INFORMATION WITH ONE ANOTHER ELECTRONICALLY—
WIKIS, DOCUMENT-SHARING PLATFORMS SUCH AS GOOGLE
DOCS, ONLINE CHAT AND INSTANT MESSAGING, WEB AND
VIDEO CONFERENCING, AND ELECTRONIC CALENDAR
SYSTEMS—HAVE CHANGED HOW AND WHERE PEOPLE AND
COMPANIES DO BUSINESS.

• FROM TOUCH LABOR TO KNOWLEDGE WORKERS

 KNOWLEDGE WORKERS - WORKERS WHOSE
RESPONSIBILITIES EXTEND BEYOND THE PHYSICAL
EXECUTION OF WORK TO INCLUDE PLANNING, DECISION
MAKING, AND PROBLEM-SOLVING.

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 CHALLENGE 4: ADVANCING HRM WITH
TECHNOLOGY (CONT.)

• HUMAN RESOURCES INFORMATION SYSTEM (HRIS)

- A COMPUTERIZED SYSTEM THAT PROVIDES CURRENT AND
ACCURATE DATA FOR PURPOSES OF CONTROL AND DECISION-
MAKING.
 IT HAS BECOME A POTENT WEAPON FOR LOWERING
ADMINISTRATIVE COSTS, INCREASING PRODUCTIVITY,
SPEEDING UP RESPONSE TIMES, IMPROVING DECISION-
MAKING, AND TRACKING A COMPANY’S TALENT.
 ANOTHER WAY IN WHICH INFORMATION TECHNOLOGY IS
AFFECTING HUMAN RESOURCES MANAGEMENT IS
RELATIONAL IN NATURE --CONNECTING PEOPLE WITH EACH
OTHER AND WITH HR DATA THEY NEED.

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 CHALLENGE 4: ADVANCING HRM WITH
TECHNOLOGY (CONT.)

• BENEFITS:
 AUTOMATION OF ROUTINE TASKS, LOWER
ADMINISTRATIVE COSTS, INCREASED PRODUCTIVITY AND
RESPONSE TIMES.
 SELF-SERVICE ACCESS TO INFORMATION AND TRAINING
FOR MANAGERS AND EMPLOYEES
 ONLINE RECRUITING, SCREENING, AND PRETESTING OF
APPLICANTS
 TRAINING, TRACKING, AND SELECTING EMPLOYEES
BASED ON THEIR RECORD OF SKILLS AND ABILITIES
 ORGANIZATION-WIDE ALIGNMENT OF “CASCADING”
GOALS

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CHALLENGE 4: ADVANCING HRM WITH
TECHNOLOGY (CONT.)

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CHALLENGE 4: ADVANCING HRM WITH
TECHNOLOGY (CONT.)

1–39
CHALLENGE 4: ADVANCING HRM WITH
TECHNOLOGY (CONT.)

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 CHALLENGE 5: CONTAINING COSTS WHILE
RETAINING TOP TALENT AND MAXIMIZING
PRODUCTIVITY

• ORGANIZATIONSTAKE MANY APPROACHES TO LOWERING

LABOR-RELATED COSTS, INCLUDING….
 CAREFULLY MANAGING EMPLOYEES’ BENEFITS
 DOWNSIZING
 FURLOUGHING EMPLOYEES (A PERIOD OF TIME WHEN AN
EMPLOYEE IS TOLD NOT TO COME TO WORK AND IS NOT PAID)
 OUTSOURCING
 OFFSHORING
 EMPLOYEE LEASING

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 CHALLENGE 5: CONTAINING COSTS WHILE
RETAINING TOP TALENT AND MAXIMIZING
PRODUCTIVITY (CONT.)

• HIDDEN COSTS OF A LAYOFF

 SEVERANCE AND REHIRING COSTS
 ACCRUED VACATION AND SICK DAY PAYOUTS
 PENSION AND BENEFIT PAYOFFS
 POTENTIAL LAWSUITS FROM AGGRIEVED WORKERS
 LOSS OF INSTITUTIONAL MEMORY AND TRUST IN
MANAGEMENT
 LACK OF STAFFERS WHEN THE ECONOMY REBOUNDS

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 CHALLENGE 5: CONTAINING COSTS WHILE
RETAINING TOP TALENT AND MAXIMIZING
PRODUCTIVITY (CONT.)

• BENEFITS OF A NO-LAYOFF POLICY

 A FIERCELY LOYAL, MORE PRODUCTIVE
WORKFORCE
 HIGHER CUSTOMER SATISFACTION
 READINESS TO SNAP BACK WITH THE
ECONOMY
 A RECRUITING EDGE
 WORKERS WHO AREN’T AFRAID TO
INNOVATE, KNOWING THEIR JOBS ARE
SAFE.

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 CHALLENGE 5: CONTAINING COSTS WHILE
RETAINING TOP TALENT AND MAXIMIZING
PRODUCTIVITY (CONT.)

• EMPLOYEE LEASING
 THE PROCESS OF DISMISSING EMPLOYEES WHO ARE
THEN HIRED BY A LEASING COMPANY (WHICH
HANDLES ALL HR-RELATED ACTIVITIES) AND
CONTRACTING WITH THAT COMPANY TO LEASE
BACK THE EMPLOYEES.

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 CHALLENGE 6: RESPONDING TO THE DEMOGRAPHIC
AND DIVERSITY CHALLENGES OF THE WORKFORCE

• IN A RECENT SURVEY, ALMOST HALF OF THE

ORGANIZATIONS REPORTED THAT THE BIGGEST
INVESTMENT CHALLENGE FACING THEM OVER THE
NEXT TEN YEARS IS OBTAINING HUMAN CAPITAL AND
OPTIMIZING THEIR HUMAN CAPITAL INVESTMENTS.
WHY IS THIS SO? CHANGES IN THE DEMOGRAPHIC
MAKEUP OF EMPLOYEES, SUCH AS THEIR AGES,
EDUCATION LEVELS, AND ETHNICITIES, IS PART OF
THE REASON WHY.

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 CHALLENGE 6: RESPONDING TO THE DEMOGRAPHIC
AND DIVERSITY CHALLENGES OF THE WORKFORCE

DEMOGRAPHIC CHANGES Managing Diversity

 MORE DIVERSE
WORKFORCE
 Being aware of
characteristics common to
– ETHNIC AND employees, while also
CULTURAL managing employees as
CHALLENGES individuals
 AGING WORKFORCE
 MORE EDUCATED
WORKFORCE
– NECESSITY OF BASIC
SKILLS TRAINING

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CHALLENGE 6: RESPONDING TO THE DEMOGRAPHIC
AND DIVERSITY CHALLENGES OF THE WORKFORCE
(CONT.)

1–47
CHALLENGE 6: RESPONDING TO THE DEMOGRAPHIC
AND DIVERSITY CHALLENGES OF THE WORKFORCE
(CONT.)

1–48
 CHALLENGE 7: ADAPTING TO EDUCATIONAL AND
CULTURAL SHIFTS AFFECTING THE WORKFORCE

• OVER THE YEARS, THE EDUCATIONAL ATTAINMENT

OF THE U.S. LABOR FORCE HAS RISEN
DRAMATICALLY. FIGURE 1.5 SHOWS THAT IT
CLEARLY PAYS TO GET A COLLEGE EDUCATION. AN
EDUCATION ALSO HELPS A PERSON STAY OUT OF
THE RANKS OF THE UNEMPLOYED.

• FOR EXAMPLE, IN 2010, THE UNEMPLOYMENT

RATE OF PEOPLE AGES TWENTY TO TWENTY-FOUR
HIT 17 PERCENT. BUT THOSE IN THE SAME AGE
RANGE WITH COLLEGE DEGREES FARED BETTER.
THE UNEMPLOYMENT RATE FOR THEM WAS A
LITTLE OVER 9 PERCENT.

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CHALLENGE 7: ADAPTING TO EDUCATIONAL AND
CULTURAL SHIFTS AFFECTING THE WORKFORCE
(CONT.)
 CHALLENGE 7: ADAPTING TO EDUCATIONAL AND
CULTURAL SHIFTS AFFECTING THE WORKFORCE
(CONT.)

• OTHER FACTORS:
 CULTURAL AND SOCIETAL CHANGES AFFECTING THE
WORKFORCE
 EMPLOYEE RIGHTS
 PRIVACY CONCERNS OF EMPLOYEES
 CHANGING ATTITUDES TOWARD WORK
 BALANCING WORK AND FAMILY
CHALLENGE 7: ADAPTING TO EDUCATIONAL AND
CULTURAL SHIFTS AFFECTING THE WORKFORCE
(CONT.)
CHALLENGE 7: ADAPTING TO EDUCATIONAL AND
CULTURAL SHIFTS AFFECTING THE WORKFORCE
(CONT.)
 THE PARTNERSHIP OF LINE MANAGERS
AND HR DEPARTMENTS

• SUCCESSFUL ORGANIZATIONSCOMBINE THE EXPERIENCE OF LINE

MANAGERS WITH THE EXPERTISE OF HR MANAGERS TO DEVELOP
AND UTILIZE THE TALENTS OF EMPLOYEES TO THEIR GREATEST
POTENTIAL. LINE MANAGERS ARE NON-HR MANAGERS WHO ARE
RESPONSIBLE FOR OVERSEEING THE WORK OF OTHER EMPLOYEES.

• JUST AS THERE ARE DIFFERENT TYPES OF LINE MANAGERS WHO

SPECIALIZE IN DIFFERENT FUNCTIONS—OPERATIONS, ACCOUNTING,
MARKETING, AND SO FORTH—THERE ARE DIFFERENT TYPES OF
HUMAN RESOURCES MANAGERS WHO SPECIALIZE IN DIFFERENT HR
FUNCTIONS.
 THE PARTNERSHIP OF LINE MANAGERS
AND HR DEPARTMENTS (CONT.)

• RESPONSIBILITIES OF HUMAN RESOURCES

MANAGERS
1. STRATEGIC ADVICE AND COUNSEL
2. SERVICE
3. POLICY FORMULATION AND IMPLEMENTATION
4. EMPLOYEE ADVOCACY

• COMPETENCIES HUMAN RESOURCES

MANAGERS REQUIRE
 BUSINESS MASTERY
 HR MASTERY
 PERSONAL CREDIBILITY
THE PARTNERSHIP OF LINE MANAGERS
AND HR DEPARTMENTS (CONT.)
 KEY TERMS

CORPORATE SOCIAL managing diversity

RESPONSIBILITY
offshoring
DOWNSIZING
EMPLOYEE LEASING outsourcing
GLOBALIZATION proactive change
HUMAN CAPITAL reactive change
HUMAN RESOURCES
INFORMATION SYSTEM (HRIS) reengineering
HUMAN RESOURCES Six Sigma
MANAGEMENT
(HRM) total quality management
(TQM)
KNOWLEDGE WORKERS
 TUTORIAL QUESTIONS

• DEFINE HRM AND EXPLAIN HOW HRM CONTRIBUTES TO AN

ORGANIZATION’S PERFORMANCE
• WHAT SKILLS ARE IMPORTANT FOR SUCCESS IN HUMAN
RESOURCE MANAGEMENT? WHICH OF THESE SKILLS ARE
ALREADY STRENGTHS OF YOURS?
• DESCRIBE HOW ECONOMIC AND WORKFORCE CHANGES ARE
AFFECTING ORGANIZATIONS IN WHICH YOU HAVE WORKED,
AND GIVE SPECIFIC EXAMPLES OF HOW THESE CHANGES
COULD BE ADDRESSED.