Chapter 2: Trends in HRM Flashcards
(14 cards)
What are the trends in labor force composition and how do they affect human resource management?
Labor Force: All people willing and able to work.
* Internal Labor Market: Organization’s current employees.
* External Labor Market: Individuals actively seeking employment.
HR Importance: HR must monitor external labor trends to build a skilled, motivated internal workforce.
Key Workforce Trends:
Aging Workforce
* Fastest growing group: workers 55+
* Older workers delaying retirement; need for phased retirement, retraining, and motivation strategies
* Rising healthcare/benefit costs
* Multiple generations working together require understanding diverse values and habits
* By 2035, adults 65+ will outnumber children in the US, causing potential labor shortages
Diverse Workforce
* Increasing racial, ethnic, and gender diversity, fueled partly by immigration
* HR must manage supply/demand issues and comply with laws
Strategies include:
* Leveraging diverse talents and values
* Avoiding biased selection tests
* Providing flexible schedules
* Educating on cultural differences and stereotypes
* Supporting career development for women and minorities
Skill Deficiencies
* Many organizations face shortages of employees with necessary skills, especially in technical fields
* Causes include rapid technological changes, evolving job requirements, and gaps in education or training
HR’s role includes:
* Identifying skill gaps through workforce analysis
* Offering targeted training and development programs
* Recruiting employees with critical skills
* Partnering with educational institutions to build future talent pipelines
* Promoting continuous learning and upskilling to adapt to changing demands
Study Figure 2.3 (HRM Practices that Support Diversity Management)
- Study Figure 2.3 (HRM Practices that Support Diversity Management)
What are the current skill deficiencies in the workforce?
Shift in Skill Needs:
* Routine tasks are now done by computers—demand is growing for cognitive and soft skills.
* Key in-demand skills: Mathematical and problem-solving, Verbal and communication,
Computer and technology proficiency, Interpersonal skills, including teamwork and decision-making, Creativity and customer service abilities
* Physical strength and machine operation are less critical than in the past.
Educational Trends:
* College degrees are often basic job requirements.
* Employers expect candidates to be adaptable, multitask, and work in dynamic environments.
Exceptions and Solutions:
* Not all skilled jobs require college degrees.
* Manufacturing faces shortages of workers for computer-controlled machinery.
* Companies are creating apprenticeships and training programs to fill the gap.
* Many employers offer on-the-job training to candidates with potential, even without formal education.
How can HRM support the goal of creating a high-performance work system, and what trends are associated with such systems?
A High-Performance Work System (HPWS) integrates technology, organizational structure, people, and processes to create a competitive advantage. It aligns the social system (employees and interactions) with the technical system (tools and processes).
HRM’s Role in Supporting HPWS:
* Recruit and retain skilled, adaptable employees
* Design jobs that foster collaboration and responsibility
* Provide continuous training and development
* Promote a culture of accountability, innovation, and teamwork
* Implement fair performance evaluations and reward systems
* Support flexible work arrangements and employee well-being
Trends in High-Performance Work Systems:
* Reliance on Knowledge Workers
* Employees who contribute through expertise and problem-solving
* Employee Empowerment
* Giving employees decision-making authority and responsibility
* Teamwork
* Encouraging collaboration to improve quality and innovation
Contextual Factors:
* Customers expect high-quality, customized products
* Employees desire flexibility and meaningful work
* Employers seek to harness creativity and interpersonal skills
What are knowledge workers, and why are they important to high-performance work systems?
Knowledge Workers are employees whose main contribution is their specialized knowledge (e.g., of customers, processes, or a profession), not physical labor.
Key Points:
* Grew in importance with the shift from manufacturing to service and information economies (e.g., rise of e-commerce).
* Hold power in organizations because their expertise is essential for delivering products and services.
* Drive competitive advantage—many fast-growing jobs are filled by knowledge workers.
* Must collaborate and share knowledge—not simply follow orders.
* Some experts argue all modern employees are knowledge workers to some extent.
HR Implications:
* Companies must focus on upskilling (improving current skills) and reskilling (learning entirely new skills) to keep knowledge workers productive and engaged.
What is employee empowerment, and how does it support a high-performance work system?
Employee Empowerment means giving employees responsibility and authority to make decisions in areas like product development and customer service.
Key Features:
* Employees are accountable for outcomes and may share in rewards and losses.
* Encourages innovation, idea sharing, and ownership of work.
* True empowerment requires management to listen, implement, and reward valuable employee ideas.
HRM’s Role:
* Empowerment is supported by HR practices in:
* Training and development
* Performance management
* Work design
* Compensation systems
* Managers must be trained to connect employees with resources, people, and information (internal and external).
Outcome:
* Leads to employee engagement—being fully involved and committed to work.
* Engagement is linked to higher productivity, better customer service, and lower turnover.
What is teamwork, and how does it support a high-performance work system?
Teamwork involves assigning tasks to groups of employees with diverse skills who collaborate to produce a product or provide a service.
Key Features:
* Work teams often handle responsibilities traditionally managed by supervisors, such as:
* Selecting new team members
* Scheduling and coordinating work
* Interacting with customers and other departments
* Teams also help with quality control and inspection during production.
Variations:
* Virtual teams are increasingly common, made possible by communication technology.
Benefits:
* Enhances motivation and job significance
* Encourages collaboration, innovation, and ownership
* Can reduce labor costs and improve efficiency
HR Impact:
* Assigning work to teams is one way to increase employee responsibility and control, supporting a culture of empowerment and engagement.
How can HR professionals support organizational strategies for growth, quality, and efficiency? (See Figure 2.4)
HRM supports organizational strategy by aligning HR policies and practices with company goals such as profitability, quality, market share, and operational efficiency.
Key Roles of HR in Strategy Support:
* Align HR practices (hiring, training, compensation, etc.) with strategic goals
* Support quality improvement efforts through training, performance management, and engagement
* Enable growth through talent acquisition, workforce planning, and development
* Contribute during mergers, acquisitions, and restructuring by managing change, culture alignment, and staffing transitions
* Promote efficiency through better job design, workforce analytics, and automation
HR Professionals Must:
* Understand the business strategy and goals
* Anticipate future workforce needs
* Align day-to-day HR operations with long-term organizational objectives
* Serve as strategic partners, not just administrative support
What is the difference between mergers and acquisitions, and how can HRM support these processes?
Merger: Two companies combine to form one.
Acquisition: One company buys another.
Strategic Purpose:
Often used to consolidate industries—two firms in the same industry join to gain a larger market share.
HRM’s Role:
* Manage conflict due to differences in company cultures and policies
* Support integration of HR systems (e.g., compensation, performance appraisal)
* Provide training, especially in conflict resolution and change management
* Help develop a consistent structure and culture that aligns with the new organization’s goals
* Assist in retaining key talent and maintaining morale during transition
What is Total Quality Management (TQM), and what are its core values?
Total Quality Management (TQM) is a company-wide effort to continuously improve how people, machines, and systems perform work to enhance quality and efficiency.
Core Values of TQM:
* Customer Focus: Processes are designed to meet the needs of internal and external customers.
* Employee Involvement: All employees receive training and are responsible for maintaining quality.
* Error Prevention (Not Detection): Quality is built into the process or product to prevent errors, not just detect and fix them.
* Collaboration: Strong cooperation with vendors, suppliers, and customers helps improve quality and reduce costs.
* Data-Driven Decisions: Progress is measured using feedback and performance data.
HRM’s Role:
* Apply quality principles to HR functions (e.g., training, recruitment, performance management).
* Use data and feedback to continuously improve HR practices.
* Train staff to embed quality thinking across the organization.
How does HRM support cost control, and what roles do downsizing, reengineering, and outsourcing play?
Cost Control involves reducing expenses while maintaining or improving quality and performance. HRM supports this by optimizing workforce efficiency and streamlining HR processes.
HRM’s Role in Cost Control:
* Identify ways to lower costs (especially in benefits like health insurance)
* Help maintain a qualified, motivated workforce at lower cost
* Improve efficiency of HR functions and labor use
Key Strategies for Cost Control:
1. Downsizing: Cutting jobs to reduce labor costs
Challenges:
* Must selectively reduce less valuable positions
* Risk of losing top talent voluntarily
* Can lead to lower morale, reduced trust, and lower profitability
HRM must:
* Communicate transparently
* Support remaining employees’ engagement and trust
- Reengineering
* A complete overhaul of work processes to boost quality and efficiency
* Affects all departments, including HR
HR’s role:
* Redesign HR functions for greater impact
* Lead and manage organizational change to ensure employee commitment
- Outsourcing
Hiring external vendors to perform specific services (e.g., payroll, benefits, training)
Benefits:
* Access to specialized expertise
* Often more cost-effective
HRM helps:
* Facilitate a smooth transition
* Oversee vendor relationships and service quality
How can HRM support organizations expanding internationally? (Include offshoring, reshoring, and expatriates)
As companies globalize, HRM supports international operations through talent management, cultural preparation, and strategic workforce planning.
Global Workforce Strategies:
1. Offshoring: Moving operations to another country with lower pay rates and available skills
HR must assess:
* Skill availability and training needs
* Impacts on U.S.-based employees’ motivation and recruitment
* Manager readiness for cross-border leadership
- Reshoring: Bringing operations back to the home country
Driven by concerns about:
* Product quality
* Supply chain flexibility
* Economic or political instability abroad
International Assignments:
3. Expatriates: Employees sent to work in another country
HR’s responsibilities include:
* Careful selection based on adaptability and skills
* Cross-cultural training
* Ongoing support for a successful international assignment
How is the nature of the employment relationship changing?
Changing environment: Technology and rapid market changes require managers and employees to adapt quickly.
Psychological contract: Unwritten expectations between employee and employer.
* Employees contribute time, effort, skills, loyalty.
* Employers provide job security, promotion opportunities, and rewards.
* Today, employees want: Flexible work schedules, Comfortable work conditions, More control over work methods, Training and development, Performance-based financial incentives
* Employees value employability (training & experience to find future jobs), since job security is less guaranteed.
Need for flexibility:
* Organizations must quickly adjust workforce size and structure to meet changing needs.
* Alternative work arrangements: Independent contractors (self-employed with multiple clients), On-call workers (work as needed), Temporary workers (employed by agencies), Contract workers (hired for specific projects/time)
Flexible work schedules:
* Traditional 40-hour workweek fading due to 24/7 staffing needs.
* Flexible schedules reduce employee stress, improve work-life balance, increase retention, and boost productivity.
