MGT-373 (Chapter 2: Trends in Human Resource Management - Terms)
An Aging Workforce (p 29-30)
An aging workforce- From 2012 to 2022, the fastest-growing age group is expected to be workers 55 and older. The 25- to 44-year-old group will increase its numbers only slightly, so its share of the total workforce will fall. Young workers between the ages of 16 and 24 will actually be fewer in number. This combination of trends will cause the overall workforce to age. Today's workplaces often bring together employees representing three or four generations. This creates a need for understanding the values and work habits that tend to characterize each generation.6 members of the silent generation (born between 1925 and 1945) tend to value income and employment security and avoid challenging authority. Baby boomers (born between 1946 and 1964) tend to value unexpected rewards, opportunities for learning, and time with management. Members of Generation X (1965-1980) tend to be pragmatic and cynical, and they have well-developed self-management skills. Those born from 1981 to 1995, often called Millennials, or Generation Y, are comfortable with the latest technology, and they want to be noticed, respected, and involved. Some generational differences can be addressed through effective HRM. For example, organizations train managers to provide frequent feedback to members of Generation Y, and they show respect for older generations' hard work and respect for authority by asking them to mentor younger workers. Generational differences also can affect how managers approach policies about social media.
A Diverse Workforce - p. 31-32
Another kind of change affecting the U.S. labor force is that it is growing more diverse in racial, ethnic, and gender terms. As Figure 2.2 shows the 2022 workforce is expected to be 78% white, 12% African American, and 10% Asian and other minorities. The fastest growing of these categories are Asian and "other groups" because these groups are experiencing immigration and birthrates above the national average. In addition to these racial categories, the ethnic category of Hispanics is growing even faster, and the Hispanic share of the U.S. labor force is expected to reach 19% of the total by 2022. Along with greater racial and ethnic diversity, there is also greater gender diversity. More women today than in the past are in the paid labor force, and the labor force participation rate for men has been slowly declining. During the economic recession and slow recovery, women's labor force participation rate also declined slightly, but between 2012 and 2022, women's share of the labor force is expected to remain steady, at around 47%.
e-HRM - p.46
HRM activities have moved onto the Internet. Privacy is an important issue in e-HRM. 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. Self-service is especially convenient when combined with today's use of mobile computing devices such as smartphones and tablet computers. More companies are combining employee self-service with management self-service, such as the ability to go online to authorize pay increases, approve expenses, and transfer employees to new positions.
High Performance Work Systems - p. 33
HRM is playing an important role in helping organization's gain and keep an advantage over competitors by becoming high-performance work systems. High-performance work systems are organizations that have the best possible fit between their social system (people and how they interact) and technical system (equipment and processes). As the nature of the workforce and the technology available to organizations have changed, so have the requirements for creating a high-performance work system. Customers are demanding high quality and customized products, employees are seeking flexible work arrangements, and employers are looking for ways to tap people's creativity and interpersonal skills. Such demands require that organizations make full use of their people's knowledge and skill, and skilled human resource management can help organizations do this. The growth in e-commerce, plus the shift from a manufacturing to a service and information economy, has changed the nature of employees that are most in demand. Three key trends occurring in today's high-performance work systems: 1.Reliance on knowledge workers 2.Empowerment of employees to make decisions 3.Teamwork Bureau of Labor Statistics forecasts that between 2012 and 2022, most new jobs will be in service occupations, especially health care and social assistance. Construction jobs also are expected to increase, but mostly to replace jobs that were lost during the financial crisis and recession of a few years ago.
Offshoring and Reshoring - (definitions) p.44
LO 2.5 Summarize ways in which human resource management can support organizations expanding internationally. To survive, companies must compete in international markets as well as fend off foreign competitors' attempts to gain ground in the United States. Companies must develop global markets, keep up with competition from overseas, hire from an international labor pool, and prepare employees for global assignments. Talent comes from a global workforce. Hiring in developing nations such as India, Mexico, and Brazil gives employers access to people with potential who are eager to work yet who will accept lower wages than elsewhere in the world. Challenges, however, may include employees' lack of familiarity with technology and corporate practices, as well as political and economic instability in the areas. 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 United States, and whether managers are well prepared to manage and lead offshore employees. Organizations with international operations hire at least some of their employees in foreign countries where they operate. In fact, regardless of where their customers are located, more and more organizations are looking overseas to hire talented people willing to work for less pay than the U.S. labor market requires. Intel, for example, has projected that most of its future employees will be hired outside U.S. borders. The efforts to hire workers in other countries are called offshoring- moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available. organizations must be prepared to send employees to other countries. 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.
Outsourcing - p. 42
Many organizations are increasingly outsourcing business activities. Many HR functions are being outsourced. One recent study suggests that 70% of companies outsource at least one human resource activity. Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services. Outsourcing gives the company access to in-depth expertise and is often more economical as well. Functions most likely to be outsourced were employee assistance, retirement planning, and outplacement.
Knowledge Workers - p35
The high-growth jobs generally require specialized knowledge. To meet their 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. 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. They must share their knowledge and collaborate with others in order for their employer to succeed.
Employee Empowerment - p. 35
To completely benefit from employees' knowledge, organizations need a management style that focuses on developing and empowering employees. Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Employees are held accountable for products and services. In return, they share resulting losses and rewards. Employee empowerment shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills. Employees who have responsibility for a final product or service must be able to listen to customers, adapt to changing needs, and creatively solve a variety of problems. HRM must design jobs to give employees latitude for decision making and train employees to handle their broad responsibilities. Feedback and rewards must be appropriate for the work of empowered employees. HRM can also play a role in giving employees access to the information they need.