Chapter 2

Trends in Human Resource Management

MGMT 422 - Chapter 2

US Labor Market Definition

– Internal labor market – the workers an organization already has

– External labor market – individuals actively seeking employment

Expected Changes– Demographics

– Skill requirements

MGMT 422 - Chapter 2

US Labor Market Age Distribution

MGMT 422 - Chapter 2

US Labor Market Ethnic Distribution2012

MGMT 422 - Chapter 2

HRM Practices that Support a Diverse Workforce

MGMT 422 - Chapter 2

High Performance Work Systems Organizations that have the best

possible fit between their social and technical systems

New skill requirements– Specialized knowledge– Judgment and decision making– Interpersonal communication

MGMT 422 - Chapter 2

New Skill Requirements Knowledge workers – employees whose main

contribution to the organization is specialized knowledge (customers, process, or profession)

Employee empowerment – giving employees responsibility and authority to make decisions

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

MGMT 422 - Chapter 2

Strategic Issues Affecting HRM

MGMT 422 - Chapter 2

Technological Change in HRM Human resource information system (HRIS) –

a computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to human resources.

Electronic business (e-business) – using the Internet to gain an advantage or keep up with competitors

e-HRM – processing and transmitting digitized HR information

MGMT 422 - Chapter 2

New Technologies Influencing HRM

MGMT 422 - Chapter 2

Change in Employment Relationship

The psychological contract – what an employee expects to contribute to and gain from an employment relationship

Flexibility/Alternative work arrangements– Staffing

– Work schedules