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HRM

in a Changing Environment

1
Introduction

HRM is a subset of management.


It has five main goals:
attract
employees

hire
Strong retain
employees
Goals employees
of
employees HRM
=
Competitive motivate train
employees employees
advantage 2
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.

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Types of Organizational Assets

Assets

Physical Financial Intangible Human

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Core Competencies in Possible HR Areas

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Human Capital in Organizations

Human Capital Core Competency

The collective value of the A unique capability that


capabilities, knowledge, creates high value and
skills, life experiences, and differentiates an organization
motivation of an from its competition.
organizational workforce.

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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 A measure of HR productivity


and quality of work done, computed by dividing the
considering the cost of average cost of workers by
the resources used. their average levels of output.

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Restructuring the Organization Re-Designing Work
Revising organizational structure Changing workloads and combining
jobs
Reducing staff
Reshaping jobs due to technology
Aiding in mergers and acquisitions changes

Goals
Increase
organizational
productivity
Reduce unit
labor costs

Aligning HR Activities
Outsourcing
Attracting and retaining employees
Using domestic vendors/contractors
Training and developing employees
instead of employees
Evaluating and compensating
International outsourcing operations
employees and other HR activities

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 Customer
Quality
Responsibility Service
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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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Challenges faced by Human
Resource Managers
There may be various challenges that a human resource
manager might face:
Technological changes
Workforce diversity
Change management
Outsourcing
Health and welfare
Recruitment and availability of skilled labour
Retention and succession planning
Restructuring
Industrial relations
Employee compensation and rewards
Retirement

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Holistic model of human
resource management practices

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