Chapter 2: Trends in HRM

A Diverse Workforce

-Growing diversity in race, ethnicity, and gender. -Fastest growing racial group is multiracial, and fastest growing ethnic group is Hispanic. -Immigration is an important source of growing diversity. H R M considerations regarding immigration: • Supply of and demand for labor. • Need to comply with laws.

High-Quality Standards

-Many companies use total quality management (T Q M). -Provides guidelines for all the organization's activities. -Quality improvement can focus on H R M functions. • Applying data to improve business processes.

Skill Deficiencies of the Workforce

-Physical strength and mastery of machinery no longer as important. -Many employers accept candidates without an education; then offer training to correct any skills gaps. -Manufacturing companies are looking for people who can operate sophisticated computer-controlled machinery. Desired skills today: • Mathematical. • Verbal. • Interpersonal. • Decision making. • Computer/technology.

Cost Control

-Some organizations have a low-cost, low-price strategy. • These organizations rely on HR to identify ways to limit costs of maintaining a qualified, motivated workforce. -HR must lower costs without compromising quality. -H R M can help the organization use human resources more efficiently and make H R M processes more efficient. -H R M can downsize, reengineer, or outsource to control costs.

An Aging Workforce

-Workers aged 55 and older are the fastest growing workforce group. -The number of young workers between the ages of 16 and 24 is decreasing. -H R M considerations: • Planning retirement. • Retraining older workers. • Motivating workers whose careers have plateaued. • Controlling the rising cost of health care and other benefits.

Automating HR Tasks

-employee selection -workforce planning -compensation -orientation of new employees -training

Global workforce

-offshoring and reshoring Hiring from developing nations has some challenges. • 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 United States. • Whether managers are well prepared to manage and lead offshore employees.

TQM Core Values

1. Methods and processes are designed to meet the needs of internal and external customers. 2. Every employee receives training in quality. 3. Quality is designed into product or service to prevent 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.

2018-2028 the fastest growing age group continues to be workers

55 and older, although the growth has slowed from the previous decade. Participation by the 25-44 age group continues to increase. And young workers between 16-24 will actually be fewer in number

Cloud Computing

A service that provides storage space and other resources on the Internet

Using Mobile Devices

Access to an HRIS from mobile devices is helpful for employees who work outside the office because they can receive and share information online easily.

Human Capital Management (HCM)

Another term for human resources that describes the tasks associated with managing a company's workforce.

Mentoring Programs

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.

Sharon is a very smart and conscientious worker. However, she feels that her ideas are disregarded, and she has not had autonomy in completing her work. This situation is probably caused by a lack of

C. Employee empowerment.

Bureau of Labor Statistics (BLS)

Department of labor, track changes in the composition of the U.S labor force and forecasts employment trends

contract workers

Employed directly by a company for a specific time or on a specific project as stipulated in a written contract

Sharing of Human Resource Information

Employees can now access much of HR info through self-service. • Especially convenient when combined with mobile computing devices. • Also being used for management tasks, such as compensation and performance management .• Offers benefits in terms of privacy and efficiency. An HR dashboard is a display of how the company is performing on specific HR metrics.

Compensation

Ex.A payroll system maintains information about salaries, bonuses, and other pay and automatically computes taxes and benefits costs to be withheld. It keeps pay records up-to-date and shares information with banks receiving direct deposits

Employee selection

Ex.Developers are working on software that can analyze videos of interviews to provide data about candidates' behavior associated with particular characteristics.

Orientation of new employees

Ex.New hires at Royal Bank of Canada use a "preboarding" system to get information about the job, their team, and the company culture.

Workforce planning

Ex.Software can analyze hourly pay to identify and predict situations in which companies are paying for overtime, pointing to opportunities for better workforce management to reduce this expense.

Training

Ex.Training modules are available online for employees to download as they identify relevant skills they want to learn. A training system may also include information about career paths and the necessary skills for each.

Flexibility

Flexible staffing levels: • Allows an organization to quickly meet changing needs. • Alternative work arrangements include independent contractors, on-call workers, temporary workers, and contract workers. • In a gig economy, workers are typically independent contractors who control when and where they work and often are assigned work through a website or mobile app. Flexible work schedules: • Helps protect employees' free time and to more productively use employees' work time. • 24/7 access may result in greater employee stress, less satisfied employees, loss of productivity, and higher turnover.

Downsizing

H R M challenged to "surgically" reduce workforce. • Most valuable employees should be kept, but they are often willing and able to find other employment before layoffs. • Early-retirement programs are humane, but they essentially reduce the workforce with a "grenade" approach. H R M must boost morale of remaining workers. • Open communication necessary to build trust: notify employees of reason for downsizing and provide downsized employees with outplacement services.

A Diverse Workforce (continued)

H R M 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 minorities and women. • Provide benefits such as elder care and day care to accommodate the needs of a diverse workforce.

Independent Contractor

Self-employed individual who works for multiple customers and clients on a project or fee basis.

gig economy

Situation in which companies rely primarily on alternative work arrangements to meet service and product demands. -gig workers are typically independent contractors who control when and where they work and how often are assigned work through a website or mobile app

expanding into global markets

The Global Workforce and international assignments

Knowledge Workers

The main contribution to a company is specialized knowledge such as in customers, process, or a profession. Have a position of power. • Employers need the knowledge they possess. • They often have many job opportunities, even in slow economies. Some argue that all workers are knowledge workers.

offshoring

The practice of exporting U.S. jobs to lower paid employees in other nations.

People Analytics

The use of computers to analyze large amounts of data and offer information to guide decisions. Artificial intelligence (A I) can improve HR decisions in: • Job analysis. • Recruiting and selection. • Performance management. • Employee relations.

An Aging Workforce (continued)

Today's workforce often brings together four or five generations. • Older workers may choose to work part time or take temporary assignments. • Creates a need for understanding the values and work habits that characterize each generation. • HR managers need to address generational differences.

Reengineering

Undertaken to deal with rapidly changing customer needs, new technology. Effects on H R M: • 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. • Often results in employees being laid off or reassigned to new jobs.

Psychological Contract

Unspoken expectations of both employee and employer. In today's world: • Employees expected to take responsibility in careers. • Employers expected to provide perks in exchange. • Flexible work schedules, comfortable working conditions, more control over their work, training and development opportunities, and financial incentives. In recent years, more people are job hopping. • Staves off boredom and wins rapid increases in pay and responsibility.

Reegineering

a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality

companies that develop software pioneered an approach they call

agile which involves weaving the development process more tightly into organizations activities and strategies

high performance work system

an organization in which technology, organizational structure, people, and processes work together seamlessly to give an organization an advantage in the competitive environment

High-performance work systems

are organizations that have the best fit between: • Social system (people and how they interact). • Technical system (equipment and processes).

On-call workers

are persons who work for an organization only when they are needed

silent generation

born: 1925-1945 tend to value income and employment security and avoid challenging authority

HRM should have a significant role in

carrying out a merger or acquisition

job design and appropriate systems for assessment and rewards have

central role in supporting employee empowerment and work

Millennials (1981-1995)

comfortable with the latest tech and they want to be noticed, respected, and involved

HRM practices that support diversity management

communication, development, performance appraisal, employee relations

Human resource information style (HRIS)

computer system used to acquire , store, manipulate, analyze, retrieve and distribute info related to an organizations human resources

Internal labor force def

consists of the organization's workers-its employees and the people who have contracts to work at the organization

temporary workers

employed by a temporary agency; client organizations pay the agency for the services of these workers

expatriates

employees assigned to work in another country

To meet these human capital needs, companies are increasingly trying to attract, develop and retain knowledge workers. Knowledge workers are

employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession

organizations internal labor force comes from its

external labor market

Generation Z (Gen Z)

fresh out of college, value individual expression and ongoing dialogue to solve conflicts and improve the world

employee engagement

full involvement in one's work and commitment to one's job and company -is associated with higher productivity, better customer service, and lower turnover

one important source of racial and ethnic diversity is

immigration

External Labor Market Def

individuals who are actively seeking employment

teamwork

is the assignment of work to groups of employees with various skills who interact to assemble a product, or provide a service

strategy

its plan for meeting broad goals such as profitability, quality and market share

More employers are looking for

mathematical, verbal and interpersonal skills such as the ability to solve math or other problems or reach decisions as part of a team. Often when organizations are looking for technical skills they are looking for skills related to computers and using the interent

Alternative Work Arrangements

methods of staffing other than the traditional hiring of full-time employees (for example, use of independent contractors, on-call workers, temporary workers, and contract company workers)

acquisitions

one company buying another

Reshoring

reestablishing operations back in the country where a company is headquartered due to quality and flexibility concerns

outsourcing

refers to the practice of having another company provide services

Among the trends that are occurring in todays high performance work systems are

reliance on knowledge workers, empowerment of employees to make decisions and use of team work

The bureau of labor statistics forecasts that between 2018-2028 most new jobs will be in

service occupations, especially health care

HR professionals are

strategic partners with other managers

self-service

system in which employees have online access to information about HR issues and go online to enroll themselves in programs and provide feedback through surveys

virtual teams

teams that rely on communications technology such as videoconferences, e-mail, and cell phones to keep in touch and coordinate activities

artifical intelligence (AI)

technology that simulates human thinking

Generation X (1965-1980)

tend to be pragmatic and cynical and they have well-developed self management skills

Baby Boomers (1946-1964)

tend to value unexpected rewards, opportunities for learning and time with managment

Mergers

two companies becoming one

foreign-born workers in arrived in this country without legal requirements for immigration or asylum. These individuals known as

undocumented or illegal immigrants

H R M must support company's strategy by:

• Aligning policies and practices with company goals • Supporting company decisions through quality improvement programs, mergers and acquisitions, restructuring, reengineering, outsourcing, and international expansion.

Internal Labor Force

• An organization's workers includes its employees and people who have contracts to work at the organization. • Internal labor force has been drawn from the external labor market.

Employee Empowerment

• Employees are allowed to make more decisions; they share in resulting losses and rewards. • Leads to more innovation and sharing of ideas. • H R M practices such as performance management, training, work design, and compensation should be considered. • Employee engagement leads to higher productivity, better customer service, and lower turnover. • Shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills.

International Assignments

• Expatriates .• HR must select expatriates carefully and help prepare them to work internationally. • Good candidates understand and respect the cultural and business norms of the host country, while having language skills and technical ability.

Outsourcing

• Gives company access to in-depth expertise. • Is often more economical. • HR helps with the transition to outsourcing, and many HR functions are also outsourced.

Declining Union Membership

• Has been declining since 19 80s. • Consistent with individual workers taking responsibility for own careers.

HR Information Systems

• Improve accuracy and efficiency. • Support strategic and day-to-day decision making. • Help avoid lawsuits.• Provide data for evaluating programs or policies. • Cloud computing expands use of HRIS. • Organization can set up an intranet to protect information.

Teamwork

• Increases employee responsibility and control. • Virtual teams rely on communications technology to keep in touch and coordinate activities. • Can motivate employees by making work more interesting and significant, and may lower labor costs. • Being agile involves weaving the development process into the organization's activities and strategies.

External Labor Market

• Individuals who are actively seeking employment • Number and kinds of people in external labor market determine kinds of human resources available to an organization.

Mergers and Acquisitions

• Mergers: two companies become one. • Acquisitions: one company buys another. • HR must be involved in resolving inevitable conflicts between companies' practices.

Trends in high-performance work systems:

• Reliance on knowledge workers. • Empowerment of employees to make decisions. • Use of teamwork.