human resource mgmt ch 2 revised
TRANSCRIPT
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Human ResourceManagement
Chapter Two
Organizational Demands
and Environmental Influences
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Managing Employees
Strategically
Helps companies:
Use HR tools and practices appropriately
Realize no two companies are alikethere isno best way
Understand using the wrong practice or the
right practice poorly can cause harm
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Meeting Organizational
Demands
Factors inherent within a company that
influence how employees are managed
These include: Strategy
Company characteristics
Organizational culture
Employee concerns
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Strategy
A plan for achieving a competitive
advantage Influences how employees add value
Impacts types of jobs employees perform
Affects attitudes and behaviors employees
display
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Cost Leadership Strategy
Offering the lowest costs for products and
services
Focus on efficiencies and cost reductions
Minimize overhead and costs
Economies of scale are realized
Only one cost leader in an industry
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Differentiation Strategy
Providing something unique for which customers
are willing to pay
Unique product may include features, location,
innovation, reputation, status, customer service orquality
Offering something competing firms do not provide
and customers value
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Low-Cost Strategy and
Managing Employees
Jobs are narrow in focus and emphasizestandardized and repetitive actions
Behaviors are fairly well understood Individuals are hired with basic skills
Employees trained to understand expectations
Employees paid based on jobs they perform
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Differentiation Strategy and
Managing Employees
Jobs geared toward creativity or customer
service
Employees hired with specific skills and newperspectives
Jobs require cooperation, creativity and
knowledge sharing Pay based on individual potential or team
accomplishments
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Company Size
Small businesses: Have generated 60-80% of new jobs in past 10
years
Hire 40% of high-tech workers
Represent over 99% of all employers
Have line managers perform the HR functions
Are challenged to provide competitive wages,
benefits and training Enable each employee to directly impact
companys success
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Young companies:-focus on growth and survival
-face pressure to hire people to help thecompany grow
Mature companies:
-focus on customer retention and futureopportunities
-have more resources and establishedpolicies and procedures
-are more bureaucratic
Stages of Development
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Organizational Culture
Assumptions, values and beliefs of a company thataffect how employees behave
Informal or unwritten
Observed in how employees talk to one another Seen in employees interaction with customers
Bureaucratic cultures value rules, formalization,hierarchy
Entrepreneurial cultures value creativity, knowledgeexchange, innovation
Other cultures value competition, teamwork,cooperation, fun
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What Shapes Culture?
Values and beliefs of a companys founders
Important decisions made in companys history
HR practices that signal values and behavior
Management practices and actions
Mergers and acquisitions
Strong cultures provide clear, consistent signals
Weak cultures are ambiguous and lack a clearmessage
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Employee Concerns
Psychological ContractPerceived
obligations employees believe they owe their
company and the company owes them
Includes pay, benefits and training in exchange
for commitment and performance
Governs how employees evaluate company
decisions and how they act on the job
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Work/Life Balance
Demands of work and personal lives
60% of mothers in U.S. workforce have
children under the age of 3
57% of workforce are dual-career households
Many caring for older family members or
dealing with traffic and long commutes
Flexible work schedules, telecommuting,family-friendly benefits help attract and retain
employees
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Justice
Employees expect to be treated fairly:
Distributive justice:
Fairness in what individuals receive for their efforts
Compensation for time and effort put into jobs
Procedural justice: Determination that the process used to make
decisions, rewards, and resolution of disputes isviewed as fair
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Understanding Procedure Justice
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Interactional Justice
How employees feel they are treated by
managers and supervisors
When employees perceive company is not
meeting its obligations, they respond by: Speaking up
Silence
Neglect Leaving
Destructive behaviors
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Environmental Influences
Aging Workforce
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Aging Workforce
Baby boomers are approaching retirement
There is competition for a limited supply of
workers to replace them
Some companies are recruiting older
workers who bring experience and skills to
workplace
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Demographic Diversity
Number of women expected to grow 9% from
2006 to 2016
Fastest-growing group: Hispanics and Asians
Foreign-born population in the U.S. has
increased 57% from 1990 to 2000
Companies must manage diversity to
leverage the benefits and eliminate bias and
discrimination
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Technology
Increased reliance on the Internet
Some computer proficiency may be requiredin all jobs
Broadens recruitment efforts beyond localmarket
Enables virtual workforcetelecommuting,videoconferencing, e-mail
Can also negatively affect the emotionalconnection employees feel to co-workers andthe company
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Globalization
Influenced by trade agreements: NAFTA,
EU, APEC
Blurs country boundaries in business
activities Enables international joint ventures and
partnerships
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International Strategies
Domestic strategyserving markets within aparticular country
International strategyexpanding to markets inmultiple countries
Multinational strategyestablishing autonomousbusiness units in multiple countries
Global strategynot aligning with a particularcountry, but across countries to gain efficiencies
Transnational strategyshared vision andcoordination across business units yet tailoringproducts to meet local country needs
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Global Factors
Locations of operations
Proximity to target market
Access to resources Labor costs
Availability of qualified labor
Unemployment levels
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Cultural Differences
Individualism vs. Collectivism
Power Distance Uncertainty Avoidance
Masculinity vs. Femininity
Long-term vs. Short-term Orientation
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Managing Employees in a
Global Environment
Cultural differences affect HR and
management practices and activities
International experiences may benefit
companies entering new markets and inbuilding relationships with stakeholders
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Ethics and Social Responsibility
Involves how companies behave toward their
stakeholders
Includes consistent monitoring of all facets of
operations
Can help foster positive reputation and
consumer support
Companies rated as best corporate citizens
financially outperform their counterparts
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Pressure Points for Unethical
Behavior
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How to Encourage Ethical
Behavior
Appoint an ethics officer
Monitor aspects of companys value system
Provide ethics training
Perform background checks on incoming
employees
Devote time at meetings to talk about ethics
Have a written code of conduct
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