Understanding Cultural EnvironmentsGlobalization – a process of interactions and integration among the people, companies, and governments of different nations driven by international trade and investment, accelerated by informational technologyHRM needs to adapt to different cultures, systems, and technologiesDifferent emphasis, such as ascribed status or achieved statusDifferent societies, such as individualistic or collectiveMultinational corporations – corporations with significant operations in more than one countryGrowth of international tradeThe Changing World of TechnologyThe internet allowed for quick communication across countries and continentsTechnology has allowed for mass manufacturing on a global scaleWhat is a knowledge worker?They are individuals whose jobs are designed around the acquisition and application of informationMake up 1/3 of US workforceHow technology affects HRM practices?HRM workers have become the primary source of information in organizationsRecruitingPosting jobs on the internet and company sitesEmployee SelectionsInternet tools allow screening of applicantsTraining and DevelopmentInternet based web trainingEthics and Employee RightsMotivating Knowledge WorkersPaying Employees Market ValuesCommunicationsDecentralized Work SitesSkill LevelsA Legal ConcernWorkforce DiversityCompanies strive to make their workplace welcoming to diverse groupsThe Workforce todayOrganizations that celebrate worker diversity get higher profitsNew laws = opportunities for women and minoritiesWorkforce diversity – the varied personal characteristics that make the workforce heterogeneousAverage age of workers is increasingHow Diversity affects HRMHuman resource practice have adapted to reflect diversity changesHire more minorities, promote diversity training for employeesEmployers must recognize different characteristics among diversity groupsWhat is a Work/Life balance?It is important for employers to hire and retain good high quality employeesEmployers must work with their worker’s personal livesThe Labor SupplyDo we have a shortage of skilled labor?Shortage of skilled labor due to birthrates and labor participation ratesBaby boomers – individuals born between 1946 and 1965Why Do Organizations lay off employees during shortages?Downsizing- an activity in an organization aimed at creating greater efficiency by eliminating certain jobsThis has been occurring throughout the worldPart of goal of balancing staff to meet changing needsRightsizing – linking employee needs to organizational strategyHow do organizations balance labor supply?Contingent workforce – part time, temporary, and contract workers used by organizations to fill peak staffing needs or perform work not done by core employeesIssues Contingent workers create for HRMThey may not get the same benefits as core workers, therefore may not treat their work as seriouslyMotivational issuesThey may not get along with core workers, and employers need to adjust to their needsContinuous Improvements ProgramsQuality managements - organizational commitment to continuous process of improvement that expands the definition of customer to include everyone involved in the organizationContinuous improvement – organizational commitment to constantly improving quality of products or servicesWork Process engineeringRadical, quantum change in an organizationRethinking or redesigning processes used to accomplish organizational goals with objective of improvements in efficiency and competitivenessHow HRM can support improvement ProgramsMust communicate change and effects of change to employeesEmployee InvolvementCan be defined as giving each worker more control over his or her jobRequires delegation, participative management, developing work teams, goal setting, and employee trainingLeads to developing more productive employees who are more loyal and committed to the organizationWhy ethics is importantEthics refer to rules or principals that define right and wrong in the work placeMore focal point of proper organizational citizenshipWhy is HRM important to an Orgnization?Management – process of efficiently completing activities with and through peoplePlanning – a management function focusing on setting organizational goals and objectivesOrganizing – management function that deals with determining what jobs are to be done, by whom, where decisions are to be made, and how to group employeesLeading – management functions concerned with directing the work of othersControlling – management function concerned with monitoring activities to ensure goals are metThe Strategic NatureCost Differentiation – provide great value and low costLow cost materials, reducing waste , maximizing efficienciesProduct Differentiation – deliver product/service that is similar to competitors but incorporates a feature that differentiates itCreativity and innovations, make product service that stands outCustomer Intimacy – strong personal relationship between provider of product/service and customerPersonalized serviceCustomer/market focus – unique target market characteristicsEmphasized needs of a specific marketStrategic Human Resource Management – aligning HR policies and decisions with the organizational strategy and missionConnection between goals of organization and activities of the people who work thereLinking daily tasks and achievement of a purpose or a goalHRM Functionsa. Staffingi. Recruitingii. selectionb. Training and developmenti. Orientationii. Employee training and developmentiii. Keeping employees up to date with skills, knowledge, and abilitiesc. Motivationi. Performance appraisalsii. Employee benefitsiii. Rewardsiv. Helping employees exert at high energy levelsd. Maintenancei. Safety and healthii. Communicationiii. Maintaining employee commitment and loyalty to the organizationiv. Communication programs – designed to provide information to employeesHow External Influences Affect HRMLabor Union – acts on behalf of its members to secure wages, hours, and other terms and conditions of employmentway for workers to deal with the management of an organizationManagement Thought – Early theories of management that promoted today’s HRM operationsScientific management – set of principles designed to enhance worker productivityHawthorne Studies – a series of studies that provided new insights into group behavior and motivation­gave rise to human relation departmentStructure of HR DepartmentCompensation