Chapter One

HRM in a Changing Environment

Lectured by Mr. Samath Houy Tel: 012 211 345 Email: houysamath@sru.edu.kh
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Objectives
After completing this chapter, you will be able to: Discuss how cultural environments affect HRM practices Identify the organizational assets and core competencies in HR areas Define human capital and identify the seven categories of HR activities Describe how technology is changing HRM Describe how the major roles of HR management are being transformed Provide an overview of six challenges facing HR today

21st-Century Corporations
Global The timeline for the globalization of companies:
Early days: a company that sold goods overseas Middle period: a company that manufactured and sold goods in other

countries
21st Century: a company that is able to call on talent and resources around the globe, just as it sells its goods and services around the globe

Speed Speed in the 21st century company is a business strategy built on a virtual network of suppliers, manufacturers, and delivery firms

People-Driven Enterprises
The successful 21st-century company is one that realizes that it is the people that make up the business Some key challenges for managers of 21st-century

enterprises:
Understanding the challenges the enterprise faces Seizing opportunities Managing frustration

Introduction
HRM is a subset of management. It has five main goals:
attract employees

Strong employees = Competitive advantage

retain employees

Goals of HRM

hire employees

motivate employees

train employees
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Understanding Cultural Environments

HRM operates in a global business environment.
Countries have different values

morals
customs political, economic, and legal systems

HRM helps employees understand other countries political and economic conditions.
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Human resource (HR) management

Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

Types of Organizational Assets

Assets

Physical

Financial

Intangible

Human

Core Competencies in Possible HR Areas

Human Capital in Organizations

Human Capital Core Competency

The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.

A unique capability that creates high value and differentiates an organization from its competition.

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HR Management Functions

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The Changing World of Technology

HRM information systems help to facilitate HR plans make decisions faster clearly define jobs evaluate performance provide desirable, cost-effective benefits
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The Changing World of Technology

HR managers use technology to: recruit, hire, and train employees motivate and monitor workers research fair compensation packages communicate throughout the organization

evaluate decentralized employees performance

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HR Managements Contributing Role

Organizational Culture and HR
Organizational Culture
Is the shared values and beliefs in an organization. Is the internal climate of the organization. Positively affects service and quality, productivity, and

financial results.
Is affected by differences in cultural dimensions.
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HR Managements Contributing Role

Organizational Productivity
Productivity
Unit Labor Cost

A measure of the quantity and quality of work done, considering the cost of the resources used.

A measure of HR productivity computed by dividing the average cost of workers by their average levels of output.

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Restructuring the Organization

Revising organizational structure Reducing staff Aiding in mergers and acquisitions

Re-Designing Work
Changing workloads and combining jobs Reshaping jobs due to technology changes

Goals
Increase organizational productivity Reduce unit labor costs

Aligning HR Activities
Attracting and retaining employees Training and developing employees Evaluating and compensating employees and other HR activities

Outsourcing
Using domestic vendors/contractors instead of employees International outsourcing operations

Approaches to Improving Organizational Productivity

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HR Managements Contributing Role

Social Responsibilities and HR
HR Advantages and Social Responsibilities
Attracting and retaining employees Achieving sustainability in dealing with economic challenges Creating a green culture

Global Social Responsibility and HR

Results in higher organizational images globally, better employee
morale and loyalty, and more competitive advantages with consumers

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HR Managements Contributing Role

Customer Service and Quality Linked to HR
Linking HR to social responsibility, customer service, and quality significantly affects organizational effectiveness.
Human Resource Management

Social Responsibility

Customer Service

Quality
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HR Managements Contributing Role

Employee Engagement and HR Culture
Employee Engagement
Individuals feel linked to organizational success and how the organization performs positively.

Social Networking
Has evolved from personal contacts and oral communications to include:
E-mail and text messages
Twitters Blogs
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Current and Future HR Management Challenges

Organizational Cost Pressures and Restructuring Pressures from global competitors and information technology have forced firms to use:
international outsourcing
adapt management practices increase productivity, and decrease labor costs
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Current and Future HR Management Challenges

Economics and Job Changes The shifts in the global economy has changed to the service industry rather than manufacturing firms.

Occupational Shifts
Workforce Availability and Quality Concerns

Talent Management and Development

Growth in Contingent Workforce
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Current and Future HR Management Challenges

Globalization of Organizations The business has shifted trade to the integration of global operations, management, and strategic alliances.
An expatriate A host-country national A third-country national
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Current and Future HR Management Challenges

Workforce Demographics and Diversity More diverse racially and ethnically, more women and the average age in workforce are increasing.
Racial/Ethnic Diversity Women in the Workforce Aging Workforce
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Current and Future HR Management Challenges

HR Technology Human Resource Management System (HRMS) An integrated system providing information used by HR management in decision making. Purposes of HRMS Data Collection

Administrative and operational efficiency

Availability of data for HR strategic planning
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Current and Future HR Management Challenges

Measuring HR Impact through Metrics More analytical and develop metrics that measure the HR efforts, much like financial officers.
measuring the cost of hiring someone,
calculating the turnover costs when persons leave the firm, doing a return-on-investment analysis of training results and expenses

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End of Chapter 01