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7/31/2019 Contemporary HR Environment
1/45
By-
Prof Radhika Gupta
CONTEMPORARY HR
ENVIRONMENT
7/31/2019 Contemporary HR Environment
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CONTEMPORARY ENVIRONMENT
OF HRM
contemp. environment of HRM2
What Is Human Resource Management (HRM)?
The policies and practices involved in carrying out
the people or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.
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The Changing Environment of
Human Resource Management
contemp. environment of HRM4
Globalization Trends
Technological Trends
Trends in the Nature of Work
Workforce Demographic Trends
Changes and Trendsin Human Resource
Management
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The changing environment of humanresource management
contemp. environment of HRM
5
Work force diversity related to race ,value,age,culture,system,sex
Technological trends:
technology will force firms to become morecompetitive.
Information technology has also hastened what
experts call the fall of hierarchy,managers
depends less and less on yesterdays stick-to-the-
chain-of-commandapproach to organizing.
empowering workers to make more decisions .
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contemp. environment of HRM6
Globalization:
refers to the tendency of firms to extend their sales or
manufacturing or capital etc. to new markets abroad.
has vastly increased international competition .
to seek cheaper labor,
to tap a vast new supply of skilled labor around the
world.
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contemp. environment of HRM7
Trends in the nature of work:
Technological and globalization trends are in turn
producing changes in the nature of jobs and work.A service society has been formed with an enormous
shift from manufacturing jobs to service jobs
This demands new types of knowledge workers and
new human resource management methods to managethem.
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Knowledge work and Human capital:
Brain-power has never before been so important for
business . Every company depends increasingly on knowledgepatents, processes, managementskills,technologies,information about customers and
suppliers ,and old-fashioned experience.addedtogether
this knowledge is intellectual capital.
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IMPACT OF GLOBALISATION ONHUMAN RESOURCES
contemp. environment of HRM9
Contracting out and outsourcing
More part-time and temporary work
Greater employee involvement in the design
and execution of work Downsizing
Flexible working hours
Flexibility in functions (multiskilled labour) Greater focus on workplace relations
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Globalization
0
10
20
30
40
50
60
70
80
1920 1950 1970 2000
% fortune 500 with aglobal presence
contemp. environment of HRM 10
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WORKFORCE DIVERSITY
contemp. environment of HRM11
Aging workforce
Boomer age bulge
Labour shortages
Greater racial diversities Changing occupational distributions for women
Dual career couples
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TECHNOLOGICAL TRENDS
contemp. environment of HRM12
Use of internet and IT
Use of internet for staffing
Use of Internet for New Ways of Work
- Teleworking
- Project oriented work with subcontracting
Use of internet for employee development
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Nature of Work
contemp. environment of HRM13
In today's world, the structure, content, and process of work have changed.Work is now:
Change from brawn to brains
more cognitively complex
more team-based and collaborative
more dependent on social skills
more dependent on technological competence
more time pressured
more mobile and less dependent on geography.
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Organizations today are:
leaner and more agile
more focused on identifying value from the customerperspective
more tuned to dynamic competitive requirements andstrategy
less hierarchical in structure and decision authority
less likely to provide lifelong careers and job security continually reorganizing to maintain or gain
competitive advantage
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Tomorrows HR Today
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Organizations today must grapple withrevolutionary trends:accelerating product and
technological change,globalized
competition,deregulation,demographic
changes,and trends towards a service societyand the information age.
The traditional pyramid-shaped organization is
giving way to new forms
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contemp. environment of HRM16
At firms like AT&T the new way of organizing
stresses cross-functional teams and boosting
interdepartmental communications. at GE ,Jack Welch talks of the boundaryless
organization,in which employees dot identify with
separate departments but instead interact with
whomever they must to get the job done
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contemp. environment of HRM17
Employees are being empowered to make more and
more decisions.
experts argue for turning the typical organization
upside down.
and put the customers on top and
emphasize that every move the company makesshould be towards satisfying the customers needs.
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contemp. environment of HRM18
Flat organization are the norm.
Work itselfon the factory floor,in the office ,even
in the hotelis increasingly organizing around
teams and processes rather than specialized
functions
The basis of power are changing:the newmanagerial work implies very different ways of
obtaining and using man-power
Managers will not manage: managers have to
learn to manage in situations where they donthave command authority.
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contemp. environment of HRM19
Managers today must build commitment.building
adaptive,customer-responsive organization means
that employees commitment and self-control is moreimportant than it has ever been.
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The changing role of HR
management
contemp. environment of HRM20
HR and boosting productivity: productivity improvement is crucial in todays
globally competitive environment,
HR plays a pivotal role in lowering labor costs,helps
employees adapt to the increased pressures in theirdownsized departments by helping them to learn to
prioritize tasks and reduce job stress.
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contemp. environment of HRM21
HR and responsiveness:making the company
more responsive to product innovations and
technological changes is the basic aim of manyof the management changes listed previously.
downsizing,flattening the pyramid,empowering
employees,for facilitating communications,
customers-need-oriented.
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contemp. environment of HRM22
HR and service:service organizations have little to
sell but their good service,uniquely dependent on
theiremployeess attitudes and motivationand onHR management.
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contemp. environment of HRM23
People-service-profits:using progressive HR
practices to build employee commitment and
morale,employees will then provide excellentcustomer service,which in turn will generate profits.
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contemp. environment of HRM24
HR and corporate strategy:HR in the earliest stages
of developing and implementing the firms strategic
plan,rather than letting HR just react to it.we thus
turn next to strategic planning and HRs strategic role
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The Changing Role of
Human Resource Management
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NewResponsibilitiesfor HR Managers
Measuring the HRM
Teams Performance
Managing with the
HR Scorecard
Process
Creating High-
Performance Work
Systems
Strategic Human
Resource
Management
Th Ch i R l Of
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2009 Pearson Education South Asia. All rightsreserved.
126
Changes in environment HR managers to take
on new responsibilities
HR functions more strategic
The Changing Role Of
HR Management
Th Ch i R l Of
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127
Strategic Planning
The companys long-term plan for how itwill balance its internal strengths and
weaknesses with its external opportunitiesand threats to maintain a competitiveadvantage.
3 questions in strategic planning Current business position
Future business position expected to be How to get to expected future business
position
The Changing Role Of
HR Management
The Changing Role Of
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Strategic HRM
Formulating HR policies and introducing
practices that produce staff competencies
and behaviors that the company needs toachieve its strategic goals.
The Changing Role Of
HR Management
The Changing Role Of
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Strategic HRM
HR managers today are more involved in
partnering with their top managers in both
designing and implementing theircompanies strategies
Top management wants to see, precisely,
how the HR managers plans will make
the company more valuable.
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HR Management
The Changing Role Of
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Outsourcing HR Activities
Computer-based systems easy to
outsource HR activities by providing
access to service providers to thecompanys HR information database
E.g. Payroll, Benefits, Wellness Programs
and Employee Training
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HR Management
The Changing Role Of
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High Performance Work Systems (HPWS)
Integrated set of HRM policies andpractices that together produce superiorstaff performance
Need to focus on performance
No fixed rule of items that comprisesHPWS but should include:
Employment security
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HR Management
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High Performance Work Systems (HPWS)
No fixed rule of items that comprises
HPWS but should include (cont):
Selective hiring
Extensive training
Self managed teams and decentralized decision
making
The Changing Role Of
HR Management
The Changing Role Of
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High Performance Work Systems (HPWS)
No fixed rule of items that comprisesHPWS but should include (cont):
Reduced status distinctions among managers andworkers
Information sharing among managers
Pay-for-performance rewards
Emphasis on high quality work
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HR Management
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High Performance Work Systems (HPWS)
Benefits of HPWS
Generate more job applicants
Screen candidates more effectively
Provide more and better training
Link pay more explicitly to performance
Provide a safer work environment
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HR Management
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High Performance Work Systems (HPWS)
Benefits of HPWS (cont)
Produce more qualified applicants per position
More employees are hired based on validatedselection tests
Provide more hours of training for new employees
Higher percentages of employees receiving regular
performance appraisals.
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HR Management
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Measuring HRM Teams Performance
Employees expect HR teams to provide
measurable proof of the effectiveness of
their programs Require quantitative measures
Metrics and HR Scorecard are used
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HR Management
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The Changing Role Of
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Measuring HRM Teams Performance
Metrics E.g. of HR Metrics (cont)
Cost per Hire(Advertising + Agency Fees + Employee Referrals
+ Travel cost of applicants and staff + Relocation
costs + Recruiter pay and benefits) Number of
Hires
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HR Management
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Measuring HRM Teams Performance
Metrics E.g. of HR Metrics (cont)
Health Care Costs per EmployeeTotal cost of health care Total Employees
HR Expense Factor
HR expense Total operating expense
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T.
Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13
20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,
Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce
Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
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HR Management
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Measuring HRM Teams Performance
HR Scorecard
Measures the HR functions effectiveness and
efficiency in producing employee behaviorsneeded to achieve the companys strategic goals
Concise and simple measurement system
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HR Management
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Measuring HRM Teams Performance
HR Scorecard Use to measure:
HR activities (testing, training, compensation
and safety)
Employee behaviors resulting from such
activities
Organizational outcomes of those employee
behaviors (higher performance, andcompany profit)
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HR Management
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TABLE 11 Technological Applications for HR
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Application Service Providers (ASPs) and technology outsourcing
Web portalsPCs and high-speed access
Streaming desktop video
The mobile Web and wireless net access
E-procurementInternet- and network-monitoring software
Bluetooth
Electronic signatures
Electronic bill presentment and payment
Data warehouses and computerized analytical programs
Hi h P f W k S
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High-Performance Work System
Practices
contemp. environment of HRM43
Employment security Selective hiring
Extensive training
Self-managed teams/decentralized decision
making Reduced status distinctions
Information sharing
Contingent (pay-for-performance) rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work
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Consequences of these basic trends
Technology
Global expansion
Strengths and
Weaknesses
Uncertainty,
Turbulence,
Rapid Change,
Changing
power bases
Companies
must be Fast,
Responsive, andCost-effective
Improved competition
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HRs evolving role
contemp. environment of HRM
Protector
and
Screener
Strategic Partner
Change Agent
Recommended