The Dynamic of HRM
Environment
Chapter 2
•
• Dynamics of Human resource management environment.
• Identify environmental factors that
affect Human resource management . • Review internal environmental factors • Who performs HRM tasks
• Define diversity and identify the diverse workforce that management now
confronts.
•
• Utilization of individuals to achieve organizational objective
• All managers at every level must concern themselves with human resource management
• Five functions
Staffing HRM HRM Function Function Employ ee & Labor Relation s Safety & Health Compens ation & Benefits Human Resource Develop ment
© 2008 Prentice Hall, Inc. All rights reserved. 5
–
Case
Lone Star Manufacturing
Wayne Simmons, vice president of HR for
Lone Star Manufacturing, returned to his office from weekly executive staff meeting, he was disturbed.
Lone Star, a producer of high – quality
telecommunication equipment, is HQ in Texas, and has manufacturing plant throughout Texas, Louisiana and Oklahoma.
Wayne had just heard a rumor that an
overseas firm has developed a new
manufacturing process that had the potential to cut costs substantially.
Should this report prove true, customers
might switch to cheaper product. The three
plants that produce similar products would then be in serious trouble.
If the new technology was superior, he also knew Lone Star might have to cut back production severely or even close some
plants. These plants are located in areas that are already experiencing high unemployment because of the depressed price of crude oil.
Plant closing would have a devastating
effect on the economies of their respective communities. A few workers could be
transferred to other locations, but most would have to be laid off.
Thus, Wayne is now keenly aware of ways
in which the EXTERNAL ENVIRONBMENT can have an impact on the operations of Lone Star Manufacturing
Lone Star Manufacturing
(
Cont
..)
Environmental Factors
Affecting HR Management
•
•
Many Interrelated Factors Affect
HRM
–
Internal Environment
–
External Environment
© 2008 Prentice Hall, Inc. All rights reserved. 8 EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Staffing Employee & Labor Relations Safety & Health Compensatio n & Benefits Human Resource Development HR Management Functions
The Environment of HRM
The Environment of HRM
The external environment
component
§ § Labor Force § Legal Considerations § Society § Unions § Shareholders § § Competition § Customers § Technology § Economy ’Th e fa cto rs th a t affe ct a firm s h u m a n
re so u rce s fro m o u tsid e th e o rg an iza tio n 's b ou n d a rie s
Environmental Factors
Labor Force
•
• A pool of individuals external to the firms from which the organization obtains its workers.
• The capacities of the firm’s
employees determine to a larger extent how well the organization can perform its mission.
• As new employees are hired from
outside the firm, the labor force is considered an external
Environmental Factors
Legal consideration
•
• Relates to federal, state and local legislation, and many court
decisions.
• Compliance with Law
• EEO (Equal Employment opportunity) – to employ disabilities.
• OSHA (Occupational Safety and
Health Act) – to provide safe and conductive work place.
Environmental Factors
Society
• Society may also exert pressure on HRM. The public is no longer to
accept, without question, the actions of the business.
• Individuals and special interest
groups have found that they effect changes through their voices,
votes, and other actions.
• The attitudes and beliefs of the
general public can affect the firm’s behavior, because those attitudes and beliefs often directly affect
Environmental Factors
Unions
•
• A group of employees who have
joined together for the purpose of dealing collectively with their
employer.
• Unions are treated as an
environmental factor because, essentially, they become a third party when dealing with the
company.
• In a unionized organization, the union rather than the individual employee negotiates an
agreement with management. •
Environmental Factors
Shareholders
•
• The owners of the corporations. • As shareholders, have invested
money in the firms, they may at times challenge program consider by management to be beneficial to their organization.
• They are Stockholders who
frequently hold lawsuits against managers and directors, claiming they failed to look out for
Environmental Factors
Competition
•
• Firms may face intense competitions in both their products and services and labor market.
• Firms must maintain a supply of competent employees if it is to succeed, grow, and prosper.
• A firm’s major task is to ensure that it obtains and retains a sufficient number of employees in various career fields to allow the firms to compete effectively.
Environmental Factors
Customer
•
• The people who actually use a firm’s goods and services are also part of external environment.
• Customers constantly demand high quality products and after
purchase services.
• Sales are often lost or gained
because of variance in product quality and follow – up service.
Environmental Factors
Technology
• Technology change cause career changes.
• One of the most challenging aspect of HRM will be training and developing employees to keep with rapidly
advancing technology.
•
• In the case we studied earlier, Wayne Simmons is well aware of the impact of technology on the workforce,
realizing that technologies
disadvantage will possibly result in plant closure
Environmental Factors
Economy
•
• The economy of the nation, on the whole and its various segments, is a major environmental factor
affecting HRM.
• When the economy is booming,
recruiting qualified worker is more difficult.
• On the other hand, when a
downtown is experiencing, more applicants are typically available.
The Internal Environment
•
Mission
•
Policies
•
Corporate
Culture
•
Management
Style of
Upper
Managers
••
Employees
•
Informal
Organization
•
Labor-Management
Agreement
•20
Mission
• It illustrates what the company is, what the company does and where the company is headed.
Policies
• A written statement that reflects the employer’s standards and obligations relating to various employees activities and employment –
related matters. •
Corporate Culture
• The beliefs, values and practice adopted by an organization that directly influence employees conducts and behaviors
•
The Internal Environment
(
Cont
..)
21
Labor Management Agreement
• A binding agreement governing wages, benefits, representation rights and other working
conditions between a labor union and management.
The Internal Environment
(
Cont
..)
•
• The Human Resource Manager • Shared Service Centers
• Outsourcing Firms • Line Managers
Who performs human resource
management tasks
Human Resource Manager
•
• Acts in advisory or staff capacity • Serves an increasing number of
employees
• Shares responsibility with line
managers and HR professionals
• Coordinate HR activities to achieve organization goal
• •
–
HR Manager
Example
Bill Brown, the production supervisor for
Ajax Manufacturing, has just learned that one of his machine operators has resigned
He immediately calls Sandra Williams,
the HR Manager, and says, “ Sandra, I just has a class A Machine operator quit down
here. Can you find some qualified people for me to interview?”
“Sure Bill”, Sandra Replies. “I’ll send two
or three down to you with in the week, and you can select the one that best fits your needs.”
–
HR Manager
Example
In this instance, both Bill and Sandra
are concerned with achieving
organizational goals, but from different perspective.
HOW?
What are their Responsibility?
Sandra, as a HR Manager, identifies
applicants who meet the criteria
specified by Bill. Where as Bill primary responsibility is productions.
As a HR Manager, Sandra must
constantly deal with many problem related to HR that Bill and other
managers Face
26
A central place
where routine,
transaction – based activities that are
dispersed throughout the organization are consolidated.
For eg., a
company with 20
strategic business unit could consolidate
routine HR tasks and performs them in one location
Shared Service Centers
Shared Service Centers
(
SSCS
)
•
Shared Service Centers
(
SSCS Performing HR Tasks
)
H R M a n ag ers A ssu m e a M ore S tra teg ic R ole
Im p roves Q u ality
Fe w er H R Pe rso n n e l
28
Outsourcing Firms
• • Transfer responsibility to an external provider • Contracting with another organization (vendor, third party provider or consultant) to provide service Reduces: • Cost
• Transaction Time
Improves Quality
Involved with Human Resources
Used more to deliver HR services
Reduces size of HR department
Line Manager Performing HR
Line Manager Performing HR
Tasks
MANAGING THE DIVERSE WORKFORCE
The issue of diversity is one reality of
being globally competitive.
Today, Levis Strauss has taken the moral
high ground in terms of being socially responsible by developing a diverse workforce.
Earlier in 1908, Levis placed an
advertisement brochure that had “none but
white women and girls are employed”
But now the firm appears to be
exceptional in this areas and is currently recognized as “one of the most ethnically and culturally diverse companies in the US, if not the world”
• Single parent and working mother • Women in business • Dual career families • Workers of color • Older worker • Person with disabilities • Immigrants • Yong persons with limited education / skills • Education level of employees •
Managing the diverse
Managing the diverse
workforce
•
• Number is growing
• Many marriages end in divorce
• Widows and widower who have children • Need alternative
childcare
arrangement
• Childcare service and workplace flexibility needed
• 11.9% of corporate officers
• Number in entry- and mid-level
managerial
positions has risen • More than 9 million
women-owned businesses • Increasing number of nontraditional households • Organizations must address work/family issues •
Single Parent and working
• Represent 53% of marriages
• Both spouses have
jobs and family responsibilities • Challenges and opportunities • Flexibility in their workplaces and careers. • • • Often experience stereotypes • Often encounter misunderstandin gs and expectations • Role conflict • Role overload • Socialize within their particular culture Dual Career
• Population is growing • Long-term labor shortage is developing • Early retirement is about to reverse itself • Needs and interests may change • May require retraining •
• One million legal
immigrants per year • Newer immigrants require time to adapt • Managers must work to understand the different cultures and languages
• Several thousands of young, unskilled workers are hired • Poor work habits
• Tardy or absent
• Can do many jobs well • Jobs can be de-skilled
•
• Bipolar country with regard to education • Half of new jobs need
some education
beyond high school • Those with limited
education will be left out of
empowerment effort
Young Persons with
Limited Education or Skills
Educational Level of Employees
Structure Question
1.Identify the HRM Function?
2.What are the challenges of HRM
3.Identify the external environment? 4.Who perform HRM activities?
5.Identify the diverse workforce that management now confronts
