Concluding ThoughtsConcluding Thoughts

Steve Werner Steve Werner

Summary of the Major Summary of the Major Environmental ChangesEnvironmental Changes

Major environmental changes include Major environmental changes include the:the:• Global segmentGlobal segment• Technological segmentTechnological segment• Legal segmentLegal segment• Demographic segmentDemographic segment• Internal environment Internal environment

The Global SegmentThe Global Segment

Major effects of the globalization of Major effects of the globalization of business include the:business include the:• Staffing and developmentStaffing and development• Importance of technology trainingImportance of technology training• Cultural context of workCultural context of work• Outsourcing decisionsOutsourcing decisions

The Technological Segment The Technological Segment

Rapid improvements in technology Rapid improvements in technology have impacted all aspects of have impacted all aspects of business from production to business from production to marketingmarketing

The Technological Segment The Technological Segment ContinuedContinued

Technology is impacting business in the Technology is impacting business in the following ways:following ways:• Employee communicationEmployee communication• Employee trainingEmployee training• Organizational StructureOrganizational Structure• How work is organizedHow work is organized• Skills neededSkills needed• Outsourcing decisionsOutsourcing decisions• Benefit costsBenefit costs• Post-catastrophe capabilities Post-catastrophe capabilities

The Legal SegmentThe Legal Segment

Court rulings affecting HRM address Court rulings affecting HRM address issues such as:issues such as:• Sexual harassmentSexual harassment• Age discriminationAge discrimination• Alternative dispute resolution Alternative dispute resolution

The Legal Segment ContinuedThe Legal Segment Continued

Recent laws affecting HRM include Recent laws affecting HRM include the:the:• Sarbanes-Oxley Act Sarbanes-Oxley Act • Changes in SEC disclosure requirements Changes in SEC disclosure requirements

Demographic SegmentDemographic Segment

Demographic changes include:Demographic changes include:• More dual career familiesMore dual career families• The changing shape of familiesThe changing shape of families• The aging workforceThe aging workforce• Increased diversityIncreased diversity• More women in the workforce More women in the workforce

Internal Environmental FactorsInternal Environmental Factors

Changes in the internal environment Changes in the internal environment include:include:• Altered employee expectations with respect to Altered employee expectations with respect to

work/life balancework/life balance• Increased childcare and elder care Increased childcare and elder care

responsibilities of employeesresponsibilities of employees• Increased job stressIncreased job stress• Increased employee diversityIncreased employee diversity• Reduced employee commitmentReduced employee commitment• Changes in employee benefit needs Changes in employee benefit needs

Common Company Response Common Company Response ThemesThemes

Some common themes of company Some common themes of company responses to issues that emerged responses to issues that emerged include:include:• Modifying the company’s cultureModifying the company’s culture• Increasing trainingIncreasing training• Using compensation and performance Using compensation and performance

appraisals to support changeappraisals to support change• Introducing new programs and policies Introducing new programs and policies

Modifying the Company’s CultureModifying the Company’s Culture

One way that companies responded One way that companies responded to environmental changes was to to environmental changes was to alter their company’s culture. The alter their company’s culture. The following changes were discussed:following changes were discussed:• Increased diversity and toleranceIncreased diversity and tolerance• High ethicsHigh ethics• Safety emphasisSafety emphasis• Employee empowermentEmployee empowerment• Social supportSocial support

How HR Changes Company How HR Changes Company CultureCulture

Training, assessment and evaluationTraining, assessment and evaluation Communication of goals and good Communication of goals and good

progressprogress Adapting HR functionsAdapting HR functions Incorporating changes into policies, Incorporating changes into policies,

procedures, and programs procedures, and programs

New Programs and Policies New Programs and Policies

New programs can be used as agents of New programs can be used as agents of change in organizations but do not change in organizations but do not necessarily affect the culture. Some necessarily affect the culture. Some examples of new programs are:examples of new programs are:• Health awareness programsHealth awareness programs• Safety programsSafety programs• Employee assistance programsEmployee assistance programs• Work/life programsWork/life programs• Diversity programsDiversity programs• Commitment-enhancing programs Commitment-enhancing programs

Increased TrainingIncreased Training

Training programs are an important Training programs are an important part of company responses to the part of company responses to the environment. Examples include:environment. Examples include:• Training specific to supervisors Training specific to supervisors

regarding conflict resolutionregarding conflict resolution• Post traumatic stress behaviorsPost traumatic stress behaviors• Training for team building Training for team building • Ethics trainingEthics training• Safety trainingSafety training

Performance Appraisal and Performance Appraisal and Compensation Compensation

Performance appraisal and Performance appraisal and compensation has been a tool of HR compensation has been a tool of HR to respond to the environment to respond to the environment through:through:• Helping to foster cultural changeHelping to foster cultural change• Cost savingsCost savings• Enhancing employee commitmentEnhancing employee commitment• Increased employee supportIncreased employee support

HR OutcomesHR Outcomes

Internal outcomes of HR responses Internal outcomes of HR responses include:include:• More ethical behaviors by employees More ethical behaviors by employees

and managersand managers• Increased employee productivity and Increased employee productivity and

performanceperformance• Increased employee commitmentIncreased employee commitment• Healthier employeesHealthier employees• Lower turnoverLower turnover

HR Outcomes ContinuedHR Outcomes Continued

Firm level outcomes include:Firm level outcomes include:• Greater legal compliance Greater legal compliance • More efficient and effective trainingMore efficient and effective training• Greater workforce flexibilityGreater workforce flexibility• Improved recruitingImproved recruiting• Increased profitsIncreased profits• Improved customer loyaltyImproved customer loyalty• Sustained competitive advantage Sustained competitive advantage

Negative OutcomesNegative Outcomes

Some costs that might be associated Some costs that might be associated with HR responses are:with HR responses are:• Reduced control of employees allowing Reduced control of employees allowing

poor choices to be madepoor choices to be made• Reduced motivationReduced motivation• Lower social connectivityLower social connectivity• Greater administrative costsGreater administrative costs• Increased demands on employeesIncreased demands on employees

Moderating FactorsModerating Factors

The appropriateness of HR responses is The appropriateness of HR responses is likely to vary depending on the firm’s likely to vary depending on the firm’s internal environment. Important factors to internal environment. Important factors to consider in the internal environment are:consider in the internal environment are:• Capabilities and resourcesCapabilities and resources• SizeSize• Nature of its ownershipNature of its ownership• Current cultureCurrent culture• Characteristics of its labor force Characteristics of its labor force

Moderating Factors ContinuedModerating Factors Continued

Workforce characteristics affecting Workforce characteristics affecting outcomes include the:outcomes include the:• Nature of the work performedNature of the work performed• Personal characteristics of the Personal characteristics of the

employeesemployees

Common Guideline ThemesCommon Guideline Themes

Guidelines are one way that Guidelines are one way that companies proactively address companies proactively address environmental issues. Three areas environmental issues. Three areas that guidelines are commonly that guidelines are commonly developed for are:developed for are:• Monitoring the external and internal Monitoring the external and internal

environmentenvironment• Using HR functions to prepare and adapt Using HR functions to prepare and adapt

to environmental changesto environmental changes• Educating and encouraging employees Educating and encouraging employees

Monitor the External and Internal Monitor the External and Internal EnvironmentEnvironment

Firms should establish programs and Firms should establish programs and mechanisms to anticipate and detect mechanisms to anticipate and detect environmental changes environmental changes

Monitoring should include specific Monitoring should include specific legal, technological, global and legal, technological, global and demographic changesdemographic changes

Monitoring should also include Monitoring should also include measuring the internal environment measuring the internal environment of the company in various areasof the company in various areas

Guidelines for Adapting to Guidelines for Adapting to Environmental ChangeEnvironmental Change

Training can be used to increase Training can be used to increase employee skills, knowledge, and employee skills, knowledge, and abilities to better adapt to changes abilities to better adapt to changes

Performance appraisals can be used Performance appraisals can be used to provide feedback to employees to provide feedback to employees regarding desired behaviors regarding desired behaviors

Guidelines for Adapting to Guidelines for Adapting to Environmental Change ContinuedEnvironmental Change Continued

Compensation can be used to Compensation can be used to reinforce and reward desired reinforce and reward desired behaviors behaviors

Staffing can be used to attract, hire Staffing can be used to attract, hire and retain employees who better fit and retain employees who better fit the new culture the new culture

Educate and Encourage Educate and Encourage EmployeesEmployees

Encourage employees to adapt to Encourage employees to adapt to organizational changes including:organizational changes including:• Enrolling in new programsEnrolling in new programs• Following new policies and proceduresFollowing new policies and procedures• Educating employees on how and why Educating employees on how and why

these changes will be beneficial these changes will be beneficial

ConclusionConclusion

The chapters in this book have The chapters in this book have pointed out numerous issues that are pointed out numerous issues that are currently being tackled by HR currently being tackled by HR departments in North American firms departments in North American firms

This book has shown that This book has shown that environmental changes have created environmental changes have created complex and exciting challenges for complex and exciting challenges for firms in the area of HR firms in the area of HR