Chapter 2: Trends in HR Management | Human Resource Management

Rising costs of benefits, especially health insurance, have demanded ______________ in planning compensation packages.

creativity

Labor Force

General way to refer to all the people willing and able to work.

Internal Labor Force

An organization's workers (its employees and the people who have contracts to work at the organization). Internal labor force has been drawn from the external labor market.

External Labor Market

Individuals who are actively seeking
employment.

HR professionals need to be aware of trends in the composition of the external labor market because:

These trends affect the organization's options for creating a well-skilled, motivated internal labor force.
The number and kinds of people in the external labor market determine the kinds of human resources available to an organization (and their cost).

Change in the Labor Force

...

Bureau of Labor Statistics (BLS)

Agency of the Department of Labor, that tracks changes in the composition of the US labor force and forecasts employment trends.
The BLS has projected that from 2012 to 2022, the total U.S. civilian labor force will GROW from 155 million to 163 million wo

Aging Workforce

From 2012 to 2022, the fastest-growing age group is expected to be workers 55 and older.
The 25-44 year-old group will increase its numbers only slightly, so its share of the total workforce will fall.
Young workers between the ages of 16 and 24 will actu

Today's workplaces often bring together employees representing THREE or FOUR generations:

1) Silent Generation
2) Baby Boomers
3) Generation X
4) Generation Y

Silent Generation

(born between 1925 and 1945)
Tend to value income and employment security and avoid challenging authority.

Baby Boomers

(born between 1946 and 1964)
Tend to value unexpected rewards, opportunities for learning, and time with management.

Members of the Generation X

(1965-1980)
Tend to be pragmatic and cynical, and they have well-developed self management skills.

Generation Y aka Millenials

(1981 to 1995)
Are comfortable with the latest technology, and they want to be noticed, respected, and involved.

_____________________ differences also can affect how managers approach policies about social media.

Generational

As forecast by the Bureau of Labor Statistics between 2012 and 2022...

By 2022, all baby boomers will be at least 55 years old, swelling the ranks of workers nearing retirement at 26% of the US Labor Force.
Those age 25-54 will account for 63% of the US Labor Fore.
Those age 16-24 will account for 11% of the US Labor Force.

HR Implications of An Aging Workforce

HR professionals will spend much of their time on concerns related to retirement planning, retraining older workers, and motivating workers whose careers have reached a plateau.
Organizations will struggle with ways to control the rising costs of health c

Projected Racial/Ethnic Makeup of the US Workforce, 2022

78% White
12% African American
6% Asian
4% Other Minorities
The FASTEST GROWING of these categories are Asian and "other groups" because these groups are experiencing immigration and birthrates above the national average.
In addition to these racial categ

One important source of racial and ethnic diversity is ______________________.

Immigration

In a recent survey of executives at large global corporations, ______% said a "diverse and inclusive workforce" is important for encouraging innovation.

85%

______________ challenges HRM create practices that ensure they fully utilize the talents, skills, and values of all employees.

Diversity

Skill Deficiencies of the Workforce

Employers are looking for skills:
- mathematical
- verbal
- Interpersonal
- computer
Gap between needed and available skills has DECREASED companies ability to compete.
Companies may lack capacity to upgrade technology, reorganize work, and empower employ

The ____________________ use of computers to do routine tasks has shifted the kinds of skills needed for employees in the U.S. economy.

Increasing

High Performance Work Systems

Are organizations that have the best possible fit between their social system (people and how they interact) and technical system (equipment and processes).
THREE trends in high-performance work systems:
1) Reliance on knowledge workers
2) Empowerment of

The Bureau of Labor Statistics forecasts that between 2012 and 2022, most new jobs will be in:

Service occupations, especially health care and social assistance.
**Construction jobs also are expected to increase, but mostly to replace jobs that were lost during the financial crisis and recession of a few years ago.

HRM Applications for Social Networking

Technology trends that are shaping Internet use are also shaping e-HRM such as social networking. This chart provides some ways that creative organizations are applying social networking tools to HRM.

Top 10 occupations expected to gain the most jobs between 2012 and 2022:

Personal Care Aides
Registered Nurses
Retail salesperson
Home health aides
Combined food prep/serving workers
Nursing Assistants
Secretaries/Admin Assistant
Cust. Service Reps
Janitors & Cleaners
Construction Laborers

Top 10 expected to grow at the fastest rate:

Industrial-organizational psychologists
Personal care aides
Home health aides
Insulation workers, mechanical
Interpreters and translators
Diagnostic medical sonographers
Helpers: brickmasons, blockmasons, stonemasons, and tile and marble setters.
Occupati

The future U.S. labor market will be both a ________________ economy and a ________________ economy

Knowledge, Service

Knowledge Workers

Are employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession.
Knowledge workers are in a position of power, because they own the knowledge that the company needs in order to

Ensuring that knowledge workers will share information and store it so that it is easily retrieved by others is the concern of which of the following HR activities:

A. Turnover
B. Employee Empowerment
C. Knowledge Management
D. Employee Selection
ANSWER: C

Employee Empowerment

Means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.
Employees are held accountable for products and services. In return, they share resulting losses and rewards.
Employee

Employee Engagement

Full involvement in one's work and commitment to one's job and company.
This is associated with:
higher productivity
better customer service
lower employee turnover

Teamwork

The assignment of work to groups of employees with various skills who interact to assemble a product or provide a service.
WORK TEAMS often assume many of the activities traditionally reserved for managers:
- selecting new team members
- scheduling work
-

__________________ is enabling teamwork even when workers are at different locations or work at different times.

Technology

Users of _______________ software development say it increases customer satisfaction and speeds up the time from concept to usable software.

Agile

____________________ can motivate employees by making work more interesting and significant.

Team Work

Sharon is a very smart and conscientious worker. Lately, she has felt that her ideas were disregarded and she was denied autonomy in completing her work. This situation is probably caused by a lack of ____________________.

A. Employee Empowerment
B. Knowledge Management
C. Turnover
D. Teamwork
ANSWER: A

Strategic Business Issues Affecting HRM

Strategic issues include emphasis on quality (TQM) and decisions about growth and efficiency. HRM can support these strategies, including efforts such as quality improvement programs, MERGERS AND ACQUISITIONS, and RESTRUCTURING. Decisions to use REENGINEE

Top Quality Management (TQM)

A companywide effort to continuously improve the ways people, machines, and systems accomplish work.
TQM APPROACH provides guidelines for all the organization's activities, including HRM.
TQM CORE VALUES:
� Methods and processes are designed to meet the n

3 HRM Controls Cost

How to manage the costs while meeting the requirements is complicated.
Employers need to weigh factors such as legal requirements, the costs and types of plans available, the impact on departments' budgets, and the effect on employee morale and retention,

Downsizing

Presents a number of challenges and opportunities for HRM. HRM must "surgically" reduce the workforce by cutting only the workers who are LESS valuable in their performance.
Achieving this is DIFFICULT because the best workers are most able (and often wil

Reengineering

A complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality. Ideally, reengineering involves reviewing all the processes performed by all the organization's major functions, including prod

Often, reengineering results in employees being laid off or reassigned to new jobs, as the organization's ______________ change.

Needs

Outsourcing

Refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services.
Outsourcing gives the company access to in-depth expertise and is often more economical as well.. Functions most likely to be outsourced wer

Mergers & Acquisitions

Merger: two companies becoming one.
Acquisition: one company buying another.
HRM should have a significant role in carrying out a merger or acquisition.
Differences between businesses involved in the deal make conflict inevitable. Training should include

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.
This requires HR expertise in selecting employees for international assignments and preparing them for those

Companies must develop _______________markets, keep up with competition from overseas, hire from an international labor pool, and prepare employees for global assignments.

Global

Important issues that HR experts can help companies weigh includ:

Whether workers in the offshore locations can provide the same or better skills, how offshoring will affect motivation and recruitment of employees needed in the United States, and whether managers are well prepared to manage and lead offshore employees.

Expatriates

Employees who take assignments in other countries.

International Labor Pool

- Hiring at home may may involve selection of employees from other countries.
- Immigration

HR Information System (HRIS)

A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization's human resources.
HRIS can:
- support strategic decision making
- help the organization avoid lawsuits
- provide data for evalu

Cloud Computing

Refers to arrangements in which remote server computers do the user's computing tasks. Access to cloud computing makes powerful HRIS tools available even to small organizations with limited computer hardware.

Data Mining

Uses powerful computers to analyze large amounts of data, such as data about employee traits, pay, and performance. Managers can identify high-potential employees throughout a large organization and offer them development opportunities. employees enroll i

HRM

Employees can go online to select from items in a benefits package and enroll in the benefits they choose. They can look up answers to HR-related questions and read company news, perhaps downloading it as a podcast.
**This processing and transmission of d

Creative organizations are applying social networking tools to _______________.

HRM.
**Information technology is changing the way HR departments handle record keeping and information sharing. HR employees use technology to automate much of their work in managing employee records and giving employees access to information and enrollme

Self Service

System in which employees have online access to information about HR issues and go online to enroll themselves in programs and provide feedback through surveys.
Self-service is especially convenient when combined with today's use of mobile computing devic

e-HRM

processing and transmission of digitized HR information especially using computer networking and Internet.
e-HRM has potential to change all traditional HRM functions.

Psychological Contract

A description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions. It describes unspoken expectations that are widely held by employers and employees.

Employability

This means they want their company to provide training and job experiences to help ensure that they can find other employment opportunities. he key to survival in a fast-changing environment is flexibility.

Alternative Work Arrangements

Methods of staffing other than the traditional hiring of full-time employees (for example, use of independent contractors, on-call workers, temporary workers, and contract company workers).

Flexibility

Includes flexible staffing levels and flexible work schedules. A flexible workforce is one the organization can quickly reshape and resize to meet its changing needs.

Need For Flexibility Affects HRM:

Organizations seek flexibility in staffing levels through alternatives to traditional employment relationship:
1) outsourcing, temporary and contract workers.
2) flexible work schedules - including shortened work weeks.
3) moving employees to different jo