TRENDS SHAPING HRM

TODAY
 GLOBALIZATION

Definition:
Globalization is an overwhelming cultural
phenomenon which provides both
driving forces and direction to most of the
changes we are observing in the
contemporary world (environment).
 GLOBALIZATION

• Globalization is a process of interaction and integration

among the people, companies, and governments of
different nations, a process driven by international trade
and investment and aided by information technology.
This process has effects on the environment, on culture,
on political systems, on economic development and
prosperity, and on human physical well-being in
societies around the world.
 ?WHY GLOBALIZE

• Globalization helps companies

• Acquire Distinctive competencies which are unique strengths that allow
a company to achieve superior efficiency, quality, innovation, or
customer responsiveness
• Increased market share and return on investment
Research has shown that the most reliable source for return on investment comes
from international diversification.
• Economies of scale and learning
• There are greater economies of scale if your potential market is 6 billion people
rather than 240
• Location Advantages
• Lower costs of value creation, allowing company to achieve a low cost position
• Differentiation for local tastes, allowing the company to charge a premium price.
 GLOBALIZATION

• Globalization of the world economy and other trends has

triggered changes in how companies organize, manage, and
use their HR departments.
• More globalization means more competition due to open
markets, and more competition means more pressure to lower
costs, make employees more productive, and do things better
and less expensively. It means developing competitive
advantages to differentiate the organization from its global
competitors.
• Superior human resources are an important source of
competitive advantage.

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 GLOBALIZATION

• It also means forming partnerships with other companies to

face stronger competition within the market.
• Human resource manager is loaded with how to manage
cultural differences between employees from original and
partner company specially if it is an international one.
• In case of international mergers, HR manager should also
ensures legal compliance with the legislation applied in
foreign countries related to working hours, compensation,
taxes, discrimination and other ethical issues.
 GLOBALIZATION

• Globalization will affect the way HR manager develop the

work force plane.
• The strategic objective of global organizations is creating
global competitive advantage. As a result the HR manager
would decide to depend not only on local labor market for the
supply of workers, but also to look for highly skilled
innovative, low cost labor in international labor markets.
• He might decide to use offshoring which means having
employees abroad doing the jobs because they are much more
professional and /or lower in cost.
TECHNOLOGICAL DEVELOPMENTS

• Technology has changed the nature of

almost everything we do: communication,
building customer relations and also
managing people within organizations.
• Technology has enabled organizations to
offshore its jobs to employees abroad
(such as :call centers) through using new
technological developments as internet-
based communication.
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TECHNOLOGICAL DEVELOPMENTS

• Electronic job application: candidates are required to

apply online, and the company use keyword
screening systems to determine whether applicants
are qualified for the jobs.
• Electronic job analysis (EJA) allows experts in
different geographic locations to provide data
about job duties and worker requirements and
then work together in virtual teams to come to an
agreement about these job and candidate
requirements.
TECHNOLOGICAL DEVELOPMENTS

• Human resource management is also influenced

by new technological developments, they now
use internet in advertising, recruiting,
interviewing and testing candidates for job
vacancies( web based job ads, virtual job fairs,
using skype in selection interviews, LinkedIn,
Facebook and Twitter are used to drive traffic
towards a career page or a blog where
information about recruitment is available, using
social media teams to attract potential
candidates).
TECHNOLOGICAL DEVELOPMENTS

• Virtual reality(VR) is a specific form of virtual environment

which provides the user with a feeling of presence, a
feeling of “being there”, through feeding the user with a
continuous stream of realistic visual, audio, and touch
stimuli.
• Using virtual reality can be of huge benefit for recruiting
as well as training for HR departments.
• Showing a day in the life of an employee within your
company through virtual reality would give prospective
candidates a full realistic experience of the company's
offices as well as the way employees work and interact
with each other in their work environment. This can drive
more informed decisions by potential candidates when
choosing their next employer.
TECHNOLOGICAL DEVELOPMENTS

• Training can also be development and done online using

different technologies and tools.
• Virtual reality is also used in the area of training employees. It
offers a safe and relaxing environment to educate and train
without fearing consequences. It allows the trainee to step
into a virtual environment which simulates the real work
environment in order to learn how to perform a task.
• Advantages: cost savings in the long-run, safe, any time,
repeatable.
• Disadvantages: initial cost is high, tutorials are time consuming to
create, motion sickness, inability to transfer 100% of what has been
learned to reality.
TECHNOLOGICAL DEVELOPMENTS

• E-compensation systems: software packages are bought or

developed by the company that are accessible through the
company intranet or over the internet.
• These software usually support some main areas in
compensations :
• Automation of payroll
• Communication and administration of compensation.
• Employee self-service systems (ESS): it gives employees
access to centralized HR database that allows them to review
their personal data, enroll in benefits, sign up for training.
 TRENDS IN THE NATURE OF WORK
• Trends in the Nature of Work – Jobs are changing due to new
technological demands. Dramatic increases in productivity have
allowed manufacturers to produce more with fewer employees.
Nontraditional workers, such as those who hold multiple jobs,
“contingent” or part-time workers, or people working in alternative
work arrangements, enable employers to keep costs down.

1. High-Tech Jobs – More jobs have gone high tech, requiring workers to
have more education and skills. Even traditional blue-collar jobs require
more math, reading, writing, and computer skills than ever before.
 
2. Service Jobs – Most newly created jobs are and will continue to be in
the service sector.
 
3. Knowledge Work and Human Capital – This refers to the knowledge,
education, training, skills, and expertise of a firm’s workers. The HR
function must employ more sophisticated and creative means to identify,
attract, select, train, and motivate the required workforce.

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 WORKFORCE DEMOGRAPHIC
TRENDS
• The labor force is getting older and more multi-ethnic. The aging labor
force presents significant changes in terms of potential labor shortages,
and many firms are instituting new policies aimed at encouraging aging
employees to stay, or at re-hiring previously retired employees.
Growing numbers of workers with eldercare responsibilities and high
rates of immigration also present challenges and opportunities for HR
managers.

• Demographic Trends – The U.S. Workforce is becoming older and more

ethnically diverse. Demographic Trends are also making finding and
retaining quality employees more challenging.
 WORKFORCE DEMOGRAPHIC TRENDS

• “Generation Y” – Born between 1977 and 2002, these employees want fair and
direct supervisors and aim to work faster and better than other workers.

• Retirees – Organizations must deal with the large number of people leaving the
workforce. In many cases the number of younger workers entering the
workforce is not enough to fill all of the vacated positions.

• Nontraditional Workers – These workers may hold multiple jobs and may be
contingent or part-time employees. Technology is facilitating these alternate
work arrangement.

• Workers from Abroad – This is one way that organizations are trying to
overcome the large number of retirees, but the option is sometimes met with
opposition as unemployment increases.
THE CASE OF SOUTH KOREA
 QUESTION

• Discuss the new trends shaping HRM

practices? Support your answer with
examples from your experience or
readings.