Strategy for Human Resource Management Lecture 4

1. Strategy for Human Resource ManagementLecture 4 Strategic Implications of a Dynamic HRM Environment HRM 765

2. Last lecture • Understanding Work World • Understanding Culture Environment • Technology • Work force diversity • How diversity affect HRM • Work Life Balance

3. Labor Supply • Do We Have a Shortage of Skilled Labor? • The combination of the small Gen-X (Born from 1946-1965) population, the already high participation rate of women in the workforce, and early retirements will lead to a significantly smaller future labor pool from which employers can hire.

4. Labor Supply • Why Do Organizations Lay Off During Shortages? • Downsizing is part of a larger goal of balancing staff to meet changing needs. • Organizations want more flexibility to better respond to change. • This is often referred to as rightsizing, linking employee needs to organizational strategy.

5. Labor Supply • How Do Organizations Balance Labor Supply? • Organizations are increasingly using contingent workers to respond to fluctuating needs for employees. • Contingent workers include • Part-time workers • Temporary workers • Contract workers

6. Labor Supply • Issues Contingent Workers Create for HRM • How to attract quality temporaries • How to motivate employees who are receiving less pay and benefits • How to have them available when needed • How to quickly adapt them to the organization • How to deal with potential conflicts between core and contingent workers

7. Continuous Improvement Programs • Continuous improvement - making constant efforts to provide better products and service to customers • Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming.

8. Continuous Improvement Programs • Key components of continuous improvement are: • Focus on the customer • Concern for continuous improvement • Improvement in the quality of everything • Accurate measurement • Empowerment of employees

9. Continuous Improvement Programs • Work Process Engineering involves radical, quantum changes to entire work processes. • How HRM Assists in Work Process Engineering • Helps employees deal with the emotional aspects of conflict and change • Provides skills training • Adapts HR systems, such as compensation, benefits, and performance standards.

10. Employee Involvement • Delegation – having the authority to make decisions in one’s job • Work teams – workers of various specializations who work together in an organization • HRM must provide training to help empower employees in their new roles. • Involvement programs can achieve: • greater productivity • increased employee loyalty and commitment

11. A Look at Ethics • Three views of ethics: • Utilitarian View – decisions are made on the basis of their outcomes or consequences • Rights View – decisions are made with concern for respecting and protecting individual liberties and privileges • Theory of Justice View – decisions are made by enforcing rules fairly and impartially • Code of ethics - a formal document that states an organization’s primary values and the ethical rules it expects organizational members to follow.

12. Summary • Labor supply • Do We Have a Shortage of Skilled Labor? • Why Do Organizations Lay Off During Shortages? • How Do Organizations Balance Labor Supply? • Issues Contingent Workers Create for HRM • Continuous improvement program • Focus on the customer • Concern for continuous improvement • Improvement in the quality of everything • Accurate measurement • Empowerment of employees

13. Summary • Employee involvement • Delegation • Work teams • Empower • Involvement programs can achieve: • greater productivity • increased employee loyalty and commitment • A look at ethics • three views of ethics • Utilitarian View – decisions are made on the basis of their outcomes or consequences • Rights View – decisions are made with concern for respecting and protecting individual liberties and privileges • Theory of Justice View – decisions are make by enforcing rules fairly and impartially. • Code of ethics