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CHAPTER 1: Managing Human Resources

The document discusses the importance of effective Human Resource Management (HRM) in organizations, emphasizing that skilled HRM leads to higher employee satisfaction, innovation, and overall company performance. It outlines key HRM practices such as job analysis, recruitment, training, and compliance with labor laws, while also highlighting the need for HR professionals to understand business strategies and contribute to organizational goals. Additionally, it addresses the significance of human capital as a competitive advantage and the role of evidence-based HR in demonstrating the impact of HR practices on business outcomes.

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0% found this document useful (0 votes)
18 views15 pages

CHAPTER 1: Managing Human Resources

The document discusses the importance of effective Human Resource Management (HRM) in organizations, emphasizing that skilled HRM leads to higher employee satisfaction, innovation, and overall company performance. It outlines key HRM practices such as job analysis, recruitment, training, and compliance with labor laws, while also highlighting the need for HR professionals to understand business strategies and contribute to organizational goals. Additionally, it addresses the significance of human capital as a competitive advantage and the role of evidence-based HR in demonstrating the impact of HR practices on business outcomes.

Uploaded by

Samantha Garcia
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 1: Managing Human Resources organization performs best when all of these practices

are managed well. At businesses and other


organizations with effective HRM, employees and
Introduction customers tend to be more satisfied, and the
companies tend to be more innovative, have greater
David Windley productivity, and develop a more favorable reputation
– CEO of IQTalent Partners; he said that this is an in the community.
excellent time to be working in human resource
management because internet-based technology is Human Resources and Company Performance
changing the way work gets done, automating many
tasks once carried out by humans. As Windley sees it, Economic value – is usually associated with capital -
this will result in organizations needing people for their cash, equipment, technology, and facilities.
creativity and good judgment, not their ability to carry Human capital – means the organization's
out routine, repetitive tasks. When machines are employees, described in terms of their training,
doing routine work, what differentiates companies will experience, judgment, intelligence, relationships, and
be having the best--the most creative, the most insight-employee characteristics that add economic
insightful-people and setting up an environment in value to the organization.
which they can and will contribute.
– At the age of 27, he took his first job heading an HR Impact of Human Resource Management:
department, at a company called Mediagenic (now
Activision). He later held executive roles at Intuit,
Microsoft, Yahoo, and others. Windley says one of his
greatest challenges was implementing a cultural shift
in a company-taking managers who had viewed their
individual units as separate kingdoms and persuading
them to unite in a common purpose.
– Windley, who holds bachelor's and master's
degrees in business, says he chose human resource
management as a career because the "people side of
business" was what interested him the most.

Human Resource Management – Employees in today's organizations are not


– A company’s success requires skillful HRM interchangeable, easily replaced parts of a system but
– The policies, practices, and systems that influence a source of the company's success or failure. By
employees' behavior, attitudes, and performance. influencing who works for the organization and how
Many companies refer to HRM as involving "people those people work, human resource management
practices." therefore contributes to basic measures of an
– Implies that emplovees are resources of the organization's performance, such as quality,
employer. profitability, and customer satisfaction.
– In terms of business strategy, an organization can
Human Resource Management Practices: succeed if it has a sustainable competitive
advantage (is better than competitors at something
and can hold that advantage over a sustained period
of time. Therefore, we can conclude that
organizations need the kind of resources that will give
them such an advantage.

 Human resources are valuable. High-


quality employees provide a needed service
as they perform many critical functions.
– Emphasizes that there are several important HRM
practices that should support the organization's
 Human resources are rare. In the sense
that a person with high levels of the needed
business strategy: analyzing work and designing jobs,
skills and knowledge is not common. An
determining how many employees with specific
organization may spend months looking for a
knowledge and skills are needed (human resource
talented and experienced manager or
planning), attracting potential employees (recruiting),
technician.
choosing employees (selection), teaching employees
how to perform their jobs and preparing them for the  Human resources cannot be imitated. To
future (training and development), evaluating their imitate human resources at a high-
performance (performance management), rewarding performing competitor, you would have to
employees (compensation), and creating a positive figure out which employees are providing the
work environment (employee relations). An advantage and how. Then you would have to
recruit people who can do precisely the
same thing and set up the systems that personnel policies and (2) ensuring compliance with
enable those people to imitate your labor laws.
competitor.
 Human resources have no good Responsibilities of HR Departments:
substitutes. When people are well trained
and highly motivated, they learn, develop
their abilities, and care about customers. It is
difficult to imagine another resource that can
match committed and talented employees.

– Effective management of human resources can


form the foundation of a high-performance work
system - an organization in which technology,
organizational structure, people, and processes work
together seamlessly to give an organization an
advantage in the competitive environment.
– High-performance work systems also have been
essential in making organizations strong enough to – HR responsibilities include administrative tasks,
weather the storm of the recent recession and remain business services, and working as a strategic
profitable as the economy slowly begins to expand corporate partner within the organization.
again. Maintaining a high-performance work system
may include development of training programs,  Analyzing and Designing Jobs
recruitment of people with new skill sets, and
establishment of rewards for such behaviors as – To produce their given product or service (or set of
teamwork, flexibility, and learning. products or services), companies require that a
number of tasks be performed. The tasks are grouped
Responsibilities of Human Resource Departments together in various combinations to form jobs. Ideally,
the tasks should be grouped in ways that help the
– One way to define the responsibilities of HR organization operate efficiently and obtain people with
departments is to think of HR as a business within the the right qualifications to do the jobs well. This
company with three product lines: function involves the activities of job analysis and job
design.
 Administrative services and transactions Job analysis – process of getting detailed information
- Handling administrative tasks (for example, about jobs.
hiring employees and answering questions Job design – process of defining the way work will be
about benefits) efficiently and with a performed and the tasks that a given job requires.
commitment to quality. This requires REI – is one of only five companies to make
expertise in the particular tasks. Fortune's list of "100 Best Companies to Work For"
 Business partner services - Developing every year since the rankings began in 1998. The
effective HR systems that help the retailer of outdoor gear and apparel provides health
organization meet its goals for attracting, care benefits to all emplovees working at least 10
keeping, and developing people with the hours per week, plus extra time off with pay for getting
skills it needs. For the systems to be outside to enjoy nature.
effective, HR people must understand the
business so they can understand what the  Recruiting and Hiring Employees
business needs.
 Strategic partner - Contributing to the Recruitment – is the process through which the
company's strategy through an organization seeks applicants for potential
understanding of its existing and needed employment.
human resources and ways HR practices Selection – refers to the process by which the
can give the company a competitive organization attempts to identify applicants with the
advantage. For strategic ideas to be necessary knowledge, skills, abilities, and other
effective, HR people must understand the characteristics that will help the organization achieve
business, its industry, and its competitors. its goals. An organization makes selection decisions
in order to add employees to its workforce, as well as
– Another way to think of HR responsibilities is in to transfer existing employees to new positions.
terms of specific activities. The picture below details
the responsibilities of human resource departments. – Approaches to recruiting and selection involve a
These responsibilities include the practices introduced variety of alternatives. Some organizations may
in “Human Resource Management Practices” image actively recruit from many external sources, such as
plus two areas of responsibility that support those Internet job postings, online social networks, and
practices: (1) establishing and administering college recruiting events. Other organizations may
rely heavily on promotions from within, applicants much to offer in salary or wages, as opposed to
referred by current employees, and the availability of bonuses, commissions, and other performance-
in-house people with the necessary skills. related pay.

Top Qualities Employers Look For in Employees:  Maintaining Positive Employee Relations

– Organizations often depend on human resource


professionals to help them maintain positive relations
with employees. This function includes preparing and
distributing employee handbooks that detail company
policies and, in large organizations, company
publications such as a monthly newsletter or a
website on the organization's intranet. Preparing
these communications may be a regular task for the
 Training and Developing Employees human resource department.

– Although organizations base hiring decisions on  Establishing and Administering


candidates' existing qualifications, most organizations Personnel Policies
provide ways for their employees to broaden or
deepen their knowledge, skills, and abilities. To do – All the human resource activities described so far
this, organizations provide for employee training and require fair and consistent decisions, and most require
development. substantial record keeping. Organizations depend on
Training – is a planned effort to enable employees to their HR department to help establish policies related
learn job-related knowledge, skills, and behavior. For to hiring, discipline, promotions, and benefits. For
example, many organizations offer safety training to example, with a policy in place that an intoxicated
teach employees safe work habits. worker will be immediately terminated, the company
Development – involves acquiring knowledge, skills, can handle such a situation more fairly and objectively
and behaviors that improve employees' ability to meet than if it addressed such incidents on a case-by-case
the challenges of a variety of new or existing jobs, basis. The company depends on its HR professionals
including the client and customer demands of those to help develop and then communicate the policy to
jobs. Development programs often focus on preparing every employee, so that everyone knows its
employees for management responsibility. Likewise, if importance.
a company plans to set up teams to manufacture
products, it might offer a development program to help  Managing and Using Human Resource
employees learn the ins and outs of effective Data
teamwork.
– All aspects of human resource management require
 Managing Performance careful and discreet record keeping, from processing
job applications, to performance appraisals, benefits
– Managing human resources includes keeping track enrollment, and government-mandated reports.
of how well employees are performing relative to Handling records about employees requires accuracy
objectives such as job descriptions and goals for a as well as sensitivity to employee privacy. Whether
particular position. the organization keeps records in file cabinets or on a
Performance Management - the process of ensuring sophisticated computer information system, it must
that employees' activities and outputs match the have methods for ensuring accuracy and for
organization's goals. The activities of performance balancing privacy concerns with easy access for
management include specifying the tasks and those who need information and are authorized to see
outcomes of a job that contribute to the organization's it.
success. – Thanks to computer tools, employee-related
information is not just an administrative responsibility;
 Planning and Administering Pay and it also can be the basis for knowledge that gives
Benefits organizations an edge over their competitors. Data
about employees can show, for example, which of the
– The pay and benefits that employees earn play an company's talent has the most promise for future
important role in motivating them. This is especially leadership, what kinds of employees tend to perform
true when rewards such as bonuses are linked to the best in particular positions, and in which departments
individual's or group's achievements. Decisions about the need for hiring will be most pressing. To use the
pay and benefits can also support other aspects of an data for answering questions such as these, many
organization's strategy. organizations have set up human resource
– Planning pay and benefits involves many decisions, information systems. They may engage in workforce
often complex and based on knowledge of a multitude analytics, which is the use of quantitative tools and
of legal requirements. An important decision is how scientific methods to analyze data from human
resource databases and other sources to make shareholders). This practice helps show that the
evidence-based decisions that support business money invested in HR programs is justified and that
goals. HRM is contributing to the company's goals and
objectives. For example, data collected on the
 Ensuring Compliance with Labor Laws relationship between HR practices and productivity,
turnover, accidents, employee attitudes, and medical
– These laws govern such matters as equal costs may show that the HR function is as important
employment opportunity, employee safety and health, to the business as finance, accounting, and
employee pay and benefits, employee privacy, and marketing.
job security. Government requirements include filing – Another strategic challenge tackled by a growing
reports and displaying posters, as well as avoiding number of companies is how to seek profits in ways
unlawful behavior. Most managers depend on human that communities, customers, and suppliers will
resource professionals to help them keep track of support over the long run. This concern is called
these requirements. sustainability - broadly defined as an organization's
– Ensuring compliance with laws requires that human ability to profit without depleting its resources,
resource personnel keep watch over a rapidly including employees, natural resources, and the
changing legal landscape. For example, the increased support of the surrounding community. Success at
use of and access to electronic databases by sustainability comes from meeting the needs of the
employees and employers suggest that in the near organization's stakeholders, all the parties who have
future legislation will be needed to protect employee an interest in the organization's success. Typically an
privacy rights. Currently no federal laws outline how to organization's stakeholders include shareholders, the
use employee databases in a way that protects community, customers, and employees. Sustainable
emplovees' privacy while also meeting emplovers' and organizations meet their needs by minimizing their
society's concern for security. environmental impact, providing high-quality products
– Lawsuits that will continue to influence HRM and services, ensuring workplace safety, offering fair
practices concern job security. Because economic or compensation, and delivering an adequate return to
competitive conditions can force companies to close investors. Sustainability delivers a strategic advantage
facilities and lay off employees, cases dealing with the when it boosts the organization's image with
illegal discharge of employees have increased. The customers, opens access to new markets, and helps
issue of "employment at will" - that is, the principle attract and retain talented employees. In an
that an employer may terminate employment at any organization with a sustainable strategy, HR
time without notice-will be debated. departments focus on employee development and
empowerment rather than short-term costs, on long-
 Supporting the Organization’s Strategy term planning rather than smooth turnover and
outsourcing, and on justice and fairness over short-
Today's HR professionals need to understand the term profits.
organization's business operations, project how
business trends might affect the business, reinforce Skills of HRM Professionals
positive aspects of the organization's culture, develop
talent for present and future needs, craft effective HR – With such varied responsibilities, the human
strategies, and make a case for them to top resource department needs to bring together a large
management. pool of skills. The Society for Human Resource
Human Resource Planning - identifying the numbers Management (SHRM) has defined sets of knowledge
and types of employees the organization will require and skills associated with success, grouping these
in order to meet its objectives. Using these estimates, into ten competencies: HR expertise, ethical practice,
the human resource department helps the leadership and navigation, diversity, equity, and
organization forecast its needs for hiring, training, and inclusion, communications, relationship management,
reassigning employees. Planning also may show that global mindset, business acumen, consultation, and
the organization will need fewer employees to meet analytical aptitude.
anticipated needs. In that situation, human resource
planning includes how to handle or avoid layoffs. Competencies for HR Professionals:
Talent Management— systematic, planned effort to
attract, retain, develop, and motivate highly skilled
employees and managers. When managers are clear
about the kinds of people they will need to achieve the
organization's goals. talent management combines
recruiting, selection, training, and motivational
practices to meet those needs.
Evidence-based HR – the collection and use of data
to demonstrate that human resource practices have a
positive influence on the company's profits or key
stakeholders (employees, customers, community,
organization's strategy. Behaviors include
– For each competency, the SHRM model provides gaining and applying knowledge of business
definitions, specifics, and standards for the behavior principles and how HR functions relate to
necessary for success at every level in an business success.
organization. Here are some examples for each:  Diversity, equity & inclusion (DE&I) -
 Human resource expertise - essentially involves recognizing, supporting, and
involves understanding and carrying out the advocating for a diverse workforce,
functions of human resource management. designing effective DE&I initiatives, and
These behaviors include designing HR identifying opportunities to make
practices for acquiring, developing, and organizational policies more equitable for all
motivating employees, using HR technology, employees.
applying policies and procedures, and
keeping up to date on HR laws. – An HR organization that doesn't fully identify and
 Relationship management - involves acquire these necessary competencies can wind up
handling the personal interactions necessary with shortcomings in knowledge or skills. Given the
for providing services and supporting the strategic importance of human resources, a
organization's goals. Behaviors include shortcoming in ethics, business relevance, or any of
treating employees respectfully, building the other competencies can pose significant
trust, and providing great customer service to problems.
those served by HR functions.
 Consultation - refers to the was HR HR Responsibilities of Supervisors
emplovees guide others in the organization.
They do this through behaviors such as Supervisors’ Involvement in HRM: Common Areas
coaching, gathering data to support business of Involvement:
decisions, and especially at a senior level,
designing solutions in support of business
strategy.
 Leadership and navigation - refer to
directing the organization's processes and
programs. Depending on one's level in the
organization, the necessary behaviors would
include behaving consistently with the
organization's culture, encouraging people to
collaborate, or setting a vision for the HR
function or entire organization.
 Communication - involves the skills needed – It shows some HR responsibilities that supervisors
to exchange information with others inside are likely to be involved in. Organizations depend on
and outside the organization. Behavior supervisors to help them determine what kinds of
examples include expressing information work need to be done (job analysis and design and
clearly, providing constructive feedback, and how many employees are needed (HR planning).
listening effectively. Supervisors typically interview job candidates and
 Global mindset - means valuing and participate in the decisions about which candidates to
considering various people's perspectives. hire. Many organizations expect supervisors to train
Behaviors include acquiring knowledge of emplovees in some or all aspects of the employees'
other cultures, resolving conflicts, and jobs. Supervisors conduct performance appraisals
supporting inclusiveness so that all can and may recommend pay increases. And, of course,
contribute to their fullest. supervisors play a key role in employee relations
 Ethical practice - involves applying integrity, because they are most often the voice of
accountability, and other core values. management for their employees, representing the
Examples include maintaining confidentiality, company on a day-to-day basis.
rewarding ethical behavior, and responding
to reports of unethical conduct. Ethics in Human Resource Management
 Analytical aptitude - refers to the
interpretation of information needed for Ethics - refers to fundamental principles of right and
making business decisions. Behaviors wrong; ethical behavior is behavior that is consistent
include gathering relevant data, applying with those principles. Whenever people's actions
statistical knowledge to understand the data, affect one another, ethical issues arise, and business
and using the results of data analysis to decisions are no exception.
determine the best solution or action to take.
(see "Best Practices" for an example).  Employee Rights
 Business acumen - involves understanding
how information can be used to support the
Right of free consent - People have the right to be – First, HRM practices must result in the greatest
treated only as they knowingly and willingly consent to good for the largest number of people. Second,
be treated. An example that applies to employees employment practices must respect basic human
would be that employees should know the nature of rights of privacy, due process, consent, and free
the job they are being hired to do; the employer speech. Third, managers must treat employees and
should not deceive them. customers equitably and fairly. The issue of equity
Right of privacy - People have the right to do as they and fairness arises at Xplane with regard to the $200
wish in their private lives, and they have the right to monthly allotment for work/life benefits. In one sense,
control what they reveal about private activities. One it is fairer than the more common approach of the HR
way an employer respects this right is by keeping department selecting particular benefits, in that
employees' personal records confidential. everyone has a chance to get benefits of equal value.
Right of freedom of conscience - People have the If, for example, the company offered child care, this
right to refuse to do what violates their moral beliefs, benefit would only have value to employees with
as long as these beliefs reflect commonly accepted young children; at Xplane, a childless employee has
norms. A supervisor who demands that an employee other benefits to choose from. Not every employee
do something that is unsafe or environmentally spends the full $200, but the choice is left to the
damaging may be violating this right if the task employee. Similarly, with no defined limit for paid time
conflicts with the employee's values. (Such behavior off, some employees will take more than others, but
could be illegal as well as unethical.) the employees have control over their own choices.
Right of freedom of speech - People have the right Katie Augsburger, Xplane's manager of employee
to criticize an organization's ethics if they do so in experience, says the issue she needs to address is
good conscience and their criticism does not violate that some employees take less time away than the
the rights of individuals in the organization. Many company believes is necessary for recharging, so the
organizations address this right by offering hot lines or company is considering communications to
policies and procedures designed to handle encourage emplovees to take time off at least three
complaints from employees. weeks a year.
Right to due process - If people believe their rights
are being violated, they have the right to a fair and Careers in Human Resource Management
impartial hearing. Congress has addressed this right
in some circumstances by establishing agencies to Median Salaries for HRM Positions:
hear complaints when employees believe their
employer has not provided a fair hearing. For
example, the Equal Employment Opportunity
Commission may prosecute complaints of
discrimination if it believes the employer did not fairly
handle the problem.

 Standards for Ethical Behavior

– Ethical, successful companies act according to four


principles. First, in their relationships with customers,
vendors, and clients, ethical and successful
companies emphasize mutual benefits. Second,
employees assume responsibility for the actions of the – The vast majority of HRM professionals have a
company. Third, such companies have a sense of college degree, and many also have completed
purpose or vision that employees value and use in postgraduate work. The typical field of study is
their day-to-day work. Finally, they emphasize business (especially human resources or industrial
fairness; that is, another person's interests count as relations), but some HRM professionals have degrees
much as their own. in the social sciences (economics or psychology), the
humanities, and law programs. Those who have
Standards for Identifying Ethical Practices: completed graduate work have master's degrees in
HR management, business management, or a similar
field. This is important because to be successful in
HR, you need to speak the same language as people
in the other business functions. You have to have
credibility as a business leader, so you must be able
to understand finance and to build a business case for
HR activities.
– HR professionals can increase their career
opportunities by taking advantage of training and
development programs. These may include taking
courses toward a master's degree, studying to pass
an exam for a professional certification, accepting
assignments to spend time observing, or "shadowing." Labor Force – is a general way to refer to all the
a manager in another department, or taking a position people willing and able to work.
in another department to learn more about the Internal Labor Force – consists of the organization's
business. workers-its employees and the people who have
– Some HRM professionals have a professional contracts to work at the organization. This internal
certification in HRM, but many more are members of labor force has been drawn from the organization's
professional associations. The primary professional external labor market.
organization for HRM is the Society for Human External Labor Market – individuals who are actively
Resource Management (SHRM). SHRM, the world's seeking employment. The number and kinds of
largest human resource management association, people in the external labor market determine the
provides education and information services, kinds of human resources available to an organization
conferences and seminars, government and media (and their cost). Human resource professionals need
representation, and online services and publications to be aware of trends in the composition of the
(such as HR Magazine). SHRM has developed two external labor market because these trends affect the
levels of certification (SHRM-Certified Professional organization's options for creating a well-skilled,
and SHRM-Senior Certified Professional) related to motivated internal labor force.
its nine-competency model. Another organization, the
HR Certification Institute (HRCI), also offers  An Aging Workforce
national and international certifications. Among these
are PHR (Professional in Human Resources) and – In the United States, the Bureau of Labor Statistics
SPHR (Senior Professional in Human Resources), (BLS), an agency of the Department of Labor, tracks
based on work experience, knowledge, and changes in the composition of the U.S. labor force
education. It recently added the certification APHRI and forecasts employment trends. The BLS has
(Associate Professional in Human Resources- projected that from 2018 to 2028, the total U.S.
International) for people who are new to the field and civilian labor force will grow from 162 million to 171
want to acquire a foundation of knowledse. Other million workers. This represents growth of 5.5% over
organizations support professional development in the 10-year span, an improvement over the 5.0%
particular areas of human resource management: two growth of 2008-2018 (a period that included a severe
examples are the Association for Talent Development recession) but noticeably behind the growth of the
and the Labor and Emplovment Relations preceding decade (12.1% for 1998-2008).
Association.
Age Distribution of U.S. Labor Force, 2018 and
CHAPTER 2: Tends in Human Resource 2028:
Management – From 2018 to 2028, the fastest-growing age group

Introduction

– Some companies are charging their HR


departments with identifying which of their current
workers have the intellect and understanding of
processes necessary for learning to work with
computers. These companies commit to training
because it gives them a more reliable supply of talent continues to be workers 55 and older, although the
for the new era of manufacturing. This type of HR growth has slowed from the previous decade.
expertise gives an advantage not only to Participation by the 25 to 44-year-old age group
manufacturers but also to companies in any industry continues to increase. And young workers between
where technology is transforming the way work gets the ages of 16 and 24 will actually be fewer in
done. number. This combination of trends will cause the
– Aneesa Muthana and other forward-thinking overall workforce to continue to age. It shows the
managers are succeeding in a fast-changing business change in age distribution from 2018 to 2028, as
environment because they are creative in addressing forecast by the Bureau of Labor Statistics. With a
the trends shaping human resources today. In growing share of the workforce nearing retirement
Muthana's case, she has responded creatively to the age, human resource professionals will need to spend
shift of making basic parts in low-wage countries, as much of their time on concerns related to planning
well as to the potential of using technology to make retirement, retraining older workers, and motivating
processes faster and more accurate. These trends workers whose careers have plateaued.
have transformed the kinds of talent needed and Organizations will struggle with ways to control the
forced companies to meet their talent needs with rising costs of health care and other benefits, and
training as well as hiring decisions. many of tomorrow's managers will supervise
employees much older than themselves. At the same
Change in the Labor Force time, organizations will have to find ways to compete
in attracting and preparing young workers from a labor
force that is growing more slowly. – One important source of racial and ethnic diversity
– Today's older generation includes many people who is immigration. The U.S. government establishes
are in no hurry to retire. They may enjoy making a procedures for foreign nationals to follow if they wish
contribution at work, have ambitious plans for which to live and work permanently in the United States, and
they want to earn money, or simply be among the it sets limits on the number of immigrants who are
many who have inadequate savings for full retirement. admitted through these channels. Of the more than 1
Therefore, many older workers want to be allowed to million immigrants who come to the United States
gradually move toward retirement by working part- legally each year, more than 7 out of 10 are relatives
time or taking temporary assignments. of U.S. citizens. Another 14% come on work-related
Accommodating such preferences of older workers visas, some of which are set aside for workers with
may become an essential HR practice, given recent exceptional qualifications in science, business, or the
Census Bureau projections that by 2035, adults older arts, and another 8% are refugees from other
than 65 will outnumber children in the United States. countries, including Ukraine, Syria, Congo, and
Unless a significant share of these older workers stay Afghanistan.8 The U.S. government also grants
in the workforce, it could be difficult for some temporary work visas to a limited number of highly
companies to fill all their open positions. educated workers, permitting them to work in the
– This creates a need for understanding the values United States for a set period of time but not to remain
and work habits that tend to characterize each as immigrants. U.S. law requires employers to verify
generation. For example, members of the silent that any job candidate who is not a U.S. citizen has
generation (born between 1925 and 1945) tend to received permission to work in the United States as
value income and employment security and avoid an immigrant or with a temporary work permit.
challenging authority. Baby boomers (born between – Other foreign-born workers in the United States
1946 and 1964) tend to value unexpected rewards, arrived in this country without meeting the legal
opportunities for learning, and time with management. requirements for immigration or Page 33 asylum.
Members of Generation X (1965-1980) tend to be These individuals, known as undocumented or illegal
pragmatic and cynical, and they have well-developed immigrants, likely number more than 10 million. While
self-management skills. Those born from 1981 to government policy toward immigrants has become
1995, often called millennials, are comfortable with more restrictive during the Trump administration, the
the latest technology, and they want to be noticed, human resource implications have two practical parts.
respected, and involved. And Generation Z, who are The first involves the supply of and demand for labor
fresh out of college, value individual expression and (see the "Best Practices" box for an example. Many
ongoing dialogue to solve conflicts and improve the U.S. industries, including meatpacking, construction,
world. farming, and services, rely on immigrants to perform
demanding work that may be low paid. In other
 A Diverse Workforce industries, such as computer software development,
employers say they have difficulty finding enough
– Another kind of change affecting the U.S. labor qualified U.S. workers to fill technical jobs. These
force is that it is growing more diverse in racial, ethnic, employers are pressing for immigration laws to allow
and gender terms. It shows that 2028 workforce is a greater supply of foreign-born workers.
expected to be 75% white, 13% African American, – The greater diversity of the U.S. labor force
and 12% Asian and other minorities. The fastest challenges employers to create HRM practices that
growing of these categories is "other groups" because ensure that they fully utilize the talents, skills, and
of their multiracial origin. In addition to these racial values of all employees. As a result, organizations
categories, the ethnic category of Hispanics is cannot afford to ignore or discount the potential
growing even faster, and the Hispanic share of the contributions of women and minorities. Employers will
U.S. labor force is expected to top 21% of the total by have to ensure that employees and HRM systems are
2028. Along with greater racial and ethnic diversity, free of bias and value the perspectives and
there is also greater gender diversity. More women experience that women and minorities can contribute
today than in the past are in the paid labor force. to organizational goals such as product quality and
Between 2018 and 2028, women's share of the labor customer service. Managing cultural diversity involves
force is expected to increase slightly, at around 48%. many different activities. These include creating an
organizational culture that values diversity, ensuring
Projected Racial/Ethnic Makeup of the U.S. that HM systems are bias-free, encouraging career
Workforce, 2028: development for women and minorities, promoting
knowledge and acceptance of cultural differences,
ensuring involvement in education both within and
outside the organization, and dealing with employees
resistance to diversity.
– Although many U.S. companies have committed
themselves to recognizing the diversity of their
internal labor force and using it to gain competitive
advantage, some workers believe there is more work
to be done, particularly those in underrepresented High-performance work systems – these are
groups such as women, racial and ethnic minorities, organizations that have the best possible fit between
and LGBTO employees. In a recent global survey their social system (people and how they interact) and
conducted by Boston Consulting Group, nearly 75% technical system (equipment and processes). As the
of individuals in these underrepresented groups said nature of the workforce and the technology available
they do not believe they have personally benefited to organizations have changed, so have the
from their companies' diversity and inclusion requirements for creating a high-performance work
programs. In another diversity and inclusion study system.
conducted for Glassdoor, 60% of employees surveyed
said they had witnessed or experienced discrimination  Knowledge Workers
based on age, race, gender, or LGBIQ identity in the
workplace. Diversity and inclusion will continue to be – Because of the growth in e-commerce, plus the shift
important topics that need to be discussed and from a manufacturing to a service and information
addressed at all organizational levels. Recent economy, the qualities that are in most demand in
statistics suggest that companies continue to take employees have changed. The Bureau of Labor
diversity and inclusion issues seriously: hiring for Statistics forecasts that between 2018 and 2028, most
diversity and inclusion jobs is up 30% over the past new jobs will be in service occupations, especially
few years. The image below highlights some ways in health care.
which HRM can support the management of diversity
and inclusion for organizational success. Top 10 Occupations for Job Growth:

HRM Practices That Support Diversity


Management:

 Skill Deficiencies of the Workforce Knowledge workers – employees whose main


contribution to the organization is specialized
– The increasing use of computers to do routine tasks knowledge, such as knowledge of customers, a
has shifted the kinds of skills needed for employees in process, or a profession. Further complicating that
the U.S. economy. Such qualities as physical strength challenge, many of these knowledge workers will
and mastery of a particular piece of machinery are no have to be "technoservice" workers who not only
longer important for many jobs. More employers are know a specialized field such as computer
looking for mathematical, verbal, and interpersonal programming or engineering, but also must be able to
skills, such as the ability to solve math or other work directly with customers. In a position of power
problems or reach decisions as part of a team. Often, because they own the knowledge that the company
when organizations are looking for technical skills, needs in order to produce its products and services,
they are looking for skills related to computers and and they must share their knowledge and collaborate
using the Internet. Today's employees must be able to with others in order for their employer to succeed. An
handle a variety of responsibilities, interact with employer cannot simply order these employees to
customers, and think creatively. perform tasks. Managers depend on the employees'
– To find such employees, most organizations are willingness to share information. Furthermore, skilled
looking for educational achievements. A college knowledge workers have many job opportunities,
degree is a basic requirement for many jobs today. even in a slow economy. If they choose, they can
Competition for qualified college graduates in many leave a company and take their knowledge to another
fields is intense. More employers are rewriting job employer. Replacing them may be difficult and time
requirements to accept candidates without a degree consuming.
or even without particular technical skills required for
the job; then they offer training to correct any skills  Employee Empowerment
gaps. Other companies team up with universities,
community colleges, and high schools to design and Employee empowerment – means giving employees
teach courses ranging from basic reading to design responsibility and authority to make decisions
blueprint reading. regarding all aspects of product development or
customer service. Employees are then held
High-Performance Work Systems accountable for products and services. In return, they
share the resulting losses and rewards. Employee
empowerment can also extend to innovation.  Focus on Strategy
Employees at all levels are encouraged to share their – They are looking at HRM as a means to support a
ideas for satisfying customers better and operating company's strategy - its plan for meeting broad goals
more efficiently and safely. This is empowering if such as profitability, quality, and market share. This
management actually listens to the ideas, implements strategic role for HRM has evolved gradually. At many
valuable ones, and rewards employees for their organizations, managers still treat HR professionals
innovations. primarily as experts in designing and delivering HR
– HRM practices such as performance management, systems. But at a growing number of organizations,
training, work design, and compensation are HR professionals are strategic partners with other
important for ensuring the success of employee managers.
empowerment. Jobs must be designed to give – This means they use their knowledge of the
employees the necessary latitude for making a variety business and of human resources to help the
of decisions. Employees must be properly trained to organization develop strategies and to align HRM
exert their wider authority and use information policies and practices with those strategies. To do
resources such as the Internet as well as tools for this, human resource managers must focus on the
communicating information. Employees also need future as well as the present, and on company goals
feedback to help them evaluate their success. Pay as well as human resource activities. They may, for
and other rewards should reflect employees' authority example, become experts at analyzing the business
and be related to successful handling of their impact of HR decisions or at developing and keeping
responsibility. In addition, for empowerment to the best talent to support business strategy.
succeed, managers must be trained to link employees Organizations do this, for example, when they
to resources within and outside the organization, such integrate all the activities involved in talent
as customers, co-workers in other departments, and management with each other and with the
websites with needed information. Managers must organization's other processes in order to provide the
also encourage employees to interact with staff skills the organization needs to pursue its strategy.
throughout the organization, must ensure that
employees receive the information they need, and
must reward cooperation. Finally, empowered
employees deliver the best results if they are fully – The specific ways in which human resource
engaged in their work. professionals support the organization's strategy vary
Employee engagement – full involvement in one's according to their level of involvement and the nature
work and commitment to one's job and company-is of the strategy. Strategic issues include emphasis on
associated with higher productivity, better customer quality and decisions about growth and efficiency.
service, and lower turnover. Human resource management can support these
strategies, including efforts such as quality
 Teamwork improvement programs, mergers and acquisitions,
and restructuring. Decisions to use reengineering and
Teamwork – is the assignment of work to groups of outsourcing can make an organization more efficient
employees with various skills who interact to and also give rise to many human resource
assemble a product or provide a service. Work teams challenges. International expansion presents a wide
often assume many activities traditionally reserved for variety of HRM challenges and opportunities.
managers, such as selecting new team members,
scheduling work, and coordinating work with Business Strategy: Issues Affecting HRM:
customers and other units of the organization. Work
teams also contribute to total quality by performing
inspection and quality-control activities while the
product or service is being completed.
– In some organizations, technology is enabling
teamwork even when workers are at different
locations or work at different times. These
organizations use virtual teams - teams that rely on
communications technology such as
videoconferences, e-mail, and cell phones to keep in
touch and coordinate activities.
– Companies that develop software pioneered an
approach they call agile, which involves weaving the
 Mergers and Acquisitions
development process more tightly into the
organization's activities and strategies. The process is
– Often organizations join forces through mergers
"agile" because the team changes specifications and
(two companies becoming one) and acquisitions (one
code as a result of the feedback throughout the
company buying another). Some mergers and
development process.
acquisitions result in consolidation within an industry,
meaning that two firms in one industry join to hold a expensive. How to manage the costs while meeting
greater share of the industry. the requirements is complicated. Employers need to
HRM should have a significant role in carrying out a weigh factors such as legal requirements, the costs
merger or acquisition. Differences between the and types of plans available, the impact on
businesses involved in the deal make conflict departments' budgets, and the effect on employee
inevitable. Training efforts should therefore include morale and retention, as well as on the ability to
development of skills in conflict resolution. Also, HR recruit new employees. Management relies on well-
professionals have to sort out differences in the two informed HR managers to identify alternatives and
companies' practices with regard to compensation, recommend which ones will best support the
performance appraisal, and other HR systems. company's strategy.
Settling on a consistent structure to meet the – Beyond specific issues such as health insurance
combined organization's goals may help bring and the Affordable Care Act, human resource
employees together. management can support strategic efforts to control
costs through downsizing, reengineering, and
 High-Quality Standards outsourcing.

– To compete in today's economy, companies need to o Downsizing


provide high-quality products and services. If
companies do not adhere to quality standards, they Number of Job Cuts Announced by Employers
will have difficulty selling their product or service to during the Past Decade:
vendors, suppliers, or customers. Therefore, many
organizations have adopted some form of total
quality management (TQM) - a companywide effort
to continually improve the ways people, machines,
and systems accomplish work.25 TQM has several
core values:
o Methods and processes are designed to
meet the needs of internal and external – In fact, contrary to popular belief, research has
customers (that is, whomever the process is found that downsizing is associated with negative
intended to serve). stock returns and lower profitability following the
o Every employee in the organization receives layoffs. One reason may be that although labor costs
training in quality. fall after a downsizing, sales per employee also tend
o Quality is designed into a product or service to fall. Circuit City, for example, tried to save money
so that errors are prevented from occurring, by laying off its highest-paid salespeople. Customers
rather than being detected and corrected in soon found that they preferred other electronics
an error-prone product or service. retailers, and Circuit City went out of business. In
o The organization promotes cooperation with contrast, Intuitive Research & Technology, based in
vendors, suppliers, and customers to Huntsville, Alabama, has never laid off any
improve quality and hold down costs. employees. Unlike many other defense contractors,
o Managers measure progress with feedback which hire employees to fulfill particular contracts and
then let them go when the contracts end, Intuitive
based on data.
hires employees according to whether they will bring
– Based on these values, the TQM approach provides
exceptional talent. The company then supports
guidelines for all the organization's activities, including
continued learning and rewards high performance-
human resource management. To promote quality,
policies that together focus on having great people
organizations need an environment that supports
bring in projects, rather than staffing up and down as
innovation, creativity, and risk taking to meet
projects come and go.
customer demands. Problem solving should bring
– Another HRM challenge is to boost the morale of
together managers, employees, and customers.
employees who remain after the reduction. HR
Employees should communicate with managers about
professionals should maintain open communication
customer needs.
with remaining employees to build their trust and
commitment, rather than withhold information. All
 Cost Control
employees should be informed why the downsizing is
necessary, what costs are to be cut, how long the
– Human resource management supports cost control
downsizing will last, and what strategies the
both by helping the organization use human
organization intends to pursue. Finally, HRM can
resources more efficiently and by making HRM
provide downsized employees with outplacement
processes as efficient as possible. This has become
services to help them find new jobs.
particularly relevant to employee benefits, specifically
health insurance.The cost of this benefit has grown
o Covid-19
rapidly, while the Affordable Care Act has introduced
a set of employer requirements that can be
– Dealing with the pandemic effectively provided areas that automate processes and support decision
many challenges to both businesses and their HR making. For example, recruitment process
staffs. In a survey of more than 300 HR executives in outsourcing helps employers use data to figure out
Asia, nearly 70% of the respondents cited crisis how to build a pipeline for the right kinds of talent.
management and business continuity planning as Providers of benefits administration help companies
their top challenge during the COVID-19 outbreak, set up enrollment and training via online platforms that
along with managing flexible work arrangements and employees--especially younger ones--have come to
employee communications to increase awareness. expect. Small organizations sometimes outsource
– Among their communication strategies: provide most of their HR work.
continuous updates to employees regarding
measures adopted by the company; issue guidance to o Expanding into Global Markets
employees regarding travel; share updates from
business leaders via e-mail or video; provide ongoing – Companies are finding that to survive they must
information on HR policies related to the outbreak; compete in international markets as well as fend off
and offer education through health talks. foreign competitors' attempts to gain ground in the
United States. To meet these challenges, U.S.
o Reengineering businesses must develop global markets, keep up
with competition from overseas, hire from an
– Rapidly changing customer needs and technology international labor pool, and prepare employees for
have caused many organizations to rethink the way global assignments. This global expansion can pose
they get work done. For example, when an some challenges for human resource management as
organization adopts new technology, its existing HR employees learn about the cultural differences
processes may no longer result in acceptable quality that shape the conduct of employees in other parts of
levels, meet customer expectations for speed, or keep the world. Companies that are successful and widely
costs to profitable levels. Therefore, many admired not only operate on a multinational scale, but
organizations have undertaken reengineering - a also have workforces and corporate cultures that
complete review of the organization's critical work reflect their global markets.
processes to make them more efficient and able to
deliver higher quality. o The Global Workforce
– Therefore, reengineering affects human resource
management in two ways. First, the way the HR – In fact, regardless of where their customers are
department itself accomplishes its goals may change located, organizations are looking overseas to hire
dramatically. Second, the fundamental change talented people willing to work for less pay than the
throughout the organization requires the HR U.S. labor market requires. The efforts to hire workers
department to help design and implement change so in other countries are common enough that they have
that all employees will be committed to the success of spurred the creation of a popular name for the
the reengineered organization. Employees may need practice: offshoring. Just a few years ago, most
training for their reengineered jobs. The organization offshoring involved big manufacturers building
may need to redesign the structure of its pay and factories in countries with lower labor costs. But it has
benefits to make them more appropriate for its new become so easy to send information and software
way of operating. It also may need to recruit around the world that even start-ups joined the
employees with a new set of skills. Reengineering offshoring movement. During the 2000s, large U.S.-
often results in employees being laid off or reassigned based multinational companies were shrinking their
to new jobs, as the organization's needs change. domestic employment while hiring overseas. More
recently, greater reliance on automation (which
o Outsourcing reduces the importance of labor costs), even in the
services sector, and concern for quality and flexibility
Outsourcing – refers to the practice of having have driven a trend toward reshoring, or
another company (a vendor, third-party provider, or reestablishing operations in North America. Although
consultant) provide services. For instance, a offshoring continues, the number of manufacturing
manufacturing company might outsource its jobs returning to the United States in 2018 exceeded
accounting and transportation functions to businesses the number moving overseas. The majority returned
that specialize in these activities. Outsourcing gives from China, where labor costs have risen. According
the company access to in-depth expertise and is often to Deloitte's 2020 Manufacturing Industry Outlook
more economical as well. report, however, optimism on the part of U.S.
– Not only do HR departments help with a transition to manufacturers is mixed as hiring has slowed due to
outsourcing, but many HR functions are being tariffs and difficulty filling jobs because of applicants'
outsourced. Outsourcing initially focused on routine lack of critical skills.
transactions such as payroll processing and on
complex technical specialties such as managing
retirement accounts and, more recently, health care
coverage. Today's outsourcing is moving more into
Where Immigrants to the United States Came from arrangements in which remote server computers do
in 2018: the user's computing tasks. The Internet also expands
the use of an HIS by enabling managers in different
locations to share data in real time. And the Internet
makes it practical to collect greater amounts of data,
including social-media commentary and
communications among emplovees.
– The key advantage of investing in an HRIS is that it
helps HR professionals think strategically. As
organizations plan, implement, and change strategies,
decision makers must be constantly prepared to have
the right talent in place at all levels. This requires
keeping track of an enormous amount of information
related to employees' skills, experience, and training
o International Assignments needs, as well as the organization's shifting needs for
the future. An HIS can support talent management by
– Besides hiring an international workforce, integrating data on recruiting, performance
organizations must be prepared to send employees to management, and training. Integrating the data
other countries. This requires HR expertise in means, for example, that the HRIS user can see how
selecting employees for international assignments specific kinds of recruiting, hiring, and training
and preparing them for those assignments. decisions relate to high performance. Of course, the
Expatriates – employees who take assignments in value of the guidance is only as good as the value of
other countries the data and the relevance to actual business
situations. Ideally, the company collects accurate,
timely data associated with performance outcomes.
Technological Change in HRM – Organizations need to protect the data in their HIS
databases-a particular concern when data are stored
– Advances in computer-related technology have had in the cloud or accessed online. A great deal of
a major impact on the use of information for managing information is confidential and not suitable for posting
human resources. Decision makers can easily obtain on a website for everyone to see. One solution is to
large quantities of data and manipulate it with set up an intranet, which is a network that uses
spreadsheets and statistical software. Internet tools but limits access to authorized users in
the organization. With any online application,
Automating HR Tasks: however, the organization must ensure that it has
sufficient security measures in place to protect
employees' privacy.

 People Analytics

People Analytics – applied to human resource


management, the use of computers to analyze large
amounts of data and offer information to guide
decisions. So far, many businesses are investigating
how people analytics can improve HR decisions, but
 HR Information Systems only a few are fully using the capabilities. However,
the potential is great, and so is the demand for
Human Resource Information System (HRIS) – a strategic thinking in HRM. So people analytics may be
computer system used to acquire, store, manipulate, the future of the field.
analyze, retrieve, and distribute information related to Artificial Intelligence (Al) – a technology that
an organization's human resources. Automating these simulates human thinking. It is programmed to
processes can improve accuracy and efficiency, conduct queries that enable the software to learn from
leading some companies to replace routine HR data, identifying trends and patterns that enable it to
clerical positions with specialists in developing and deliver better results over time.46 Systems that
maintaining information systems. Some companies include Al can adapt to change and can be set up to
call their HRIS a human capital management svstem. make decisions automatically. Another promising
This type of system both provides information and technology is the use of chatbots, a voice interface
automates HR tasks. that, like Alexa or Siri, answers employees' questions
– The use of an HRIS is more widespread today, about their insurance, vacation time, and so on.
largely thanks to the Internet. For example,
companies that cannot afford powerful computers can – Al applications can improve decision making or
still use sophisticated software and large databases. smooth processes in many areas of human resource
They can opt for cloud computing services, management. Here are just a few examples:
o Job analysis. Software by Unitive can take longer hours without job security, employees want
data from meetings, create job descriptions, companies to provide flexible work schedules,
and review them for unintended bias. comfortable working conditions, more control over
o Recruiting and selection. Firstjob has a how they accomplish work, training and development
chatbot that fields questions from job opportunities, and financial incentives based on how
candidates; early results show it handling the organization performs. Employees realize that
three-fourths of their questions. companies cannot provide employment security, so
o Performance management. At a consumer they want employability.
products company, the HR and sales – In fact, some employees engage in job hopping,
departments teamed up to create a model the intentional practice of changing jobs frequently-
that predicts and corrects problems in sales say, every year or two -especially in recent years,
performance, including poor hiring decisions. when the national unemployment rate had dropped to
historic lows with employers offering attractive
o Employee relations. IBM has a chatbot that
salaries and benefits to fill open positions. Job
answers employees' HR-related questions,
hopping can be appealing to an employee as a way to
submitted by text, data entry, or voice.
stave off boredom and win some rapid increases in
pay and responsibility. Some employees even are
 Sharing of Human Resource Information
able to pick short-term jobs that give them valuable,
carefully targeted experiences. However, there are
– Information technology is changing the way HR
some significant disadvantages. Every time the
departments handle record keeping and information
employee starts with a new employer, the employee
sharing. Today HR employees use technology to
needs to learn a new network of contacts and a new
automate much of their work in managing employee
set of policies and procedures. This can slow down
records and giving employees access to information
the employee's ability to learn a career in depth and
and enrollment forms for training, benefits, and other
reduce the employee's value to each employer.
programs. As a result, HR employees play a smaller
Therefore, employers tend to be wary of a job
role in maintaining records, and employees now get
candidate who seems to have a history of job
information through self-service. This means
hopping. They may interpret job hopping as evidence
employees have online access to information about
of a character flaw such as inability to make a
HR issues such as training, benefits, compensation,
commitment or lack of conscientiousness.
and contracts; go online to enroll themselves in
programs and services; and provide feedback through
 Declining Union Membership
online surveys. Today employees routinely look up
workplace policies and information about their
– Another trend affecting the employment relationship
benefits online, and they may receive electronic
has been ongoing for several decades. The
notification when deposits are made directly to their
percentage of employees who belong to unions has
bank accounts.
been declining since the 1980s. Outside of
government agencies, fewer U.S. workers today are
Change in the Employment Relationship
union members. This trend is consistent with the idea
of individual workers taking responsibility for their own
 A Psychological Contract
careers. Whereas once many workers saw strength in
numbers from joining a union, perhaps workers of the
Psychological Contract – a description of what an
Internet era will prefer using numbers a different way:
employee expects to contribute in an employment
finding salary data and employer reviews online to
relationship and what the employer will provide the
negotiate their own career paths.
employee in exchange for those contributions. Unlike
a written sales contract, the psychological contract is
 Flexibility
not formally put into words. Instead it describes
unspoken expectations that are widely held by
– From the organization's perspective, the key to
employers and employees. In the traditional version of
survival in a fast-changing environment is flexibility.
this psychological contract, organizations expected
Organizations want to be able to change as fast as
their employees to contribute time, effort, skills,
customer needs and economic conditions change.
abilities, and loyalty. In return, the organizations would
Flexibility in human resource management includes
provide job security and opportunities for promotion.
flexible staffing levels and flexible work schedules.
– However, this arrangement is being replaced with a
o Flexible Staffing Levels
new type of psychological contract. Companies
expect employees to take more Page 52 responsibility
Alternative work arrangements – are methods of
for their own careers, from seeking training to
staffing other than the traditional hiring of full-time
balancing work and family. These expectations result
employees. There are a variety of methods, with the
in less job security for employees, who can count on
following being most common:
working for several companies over the course of a
career. In exchange for top performance and working
o Independent contractors are self-employed stress, less satisfied employees, loss of productivity,
individuals with multiple clients. and higher turnover-all of which are costly for
o On-call workers are persons who work for companies.
an organization only when they are needed. – Many organizations are taking steps to provide
o Temporary workers are employed by a more flexible work schedules, to protect employees'
temporary agency; client organizations pay free time, and to more productively use employees'
the agency for the services of these workers. work time. Workers consider flexible schedules a
valuable way to ease the pressures and conflicts of
o Contract workers are employed directly by
trying to balance work and nonwork activities.
a company for a specific time or on a specific
Employers are using flexible schedules to recruit and
project as stipulated in a written contract.
retain employees and to increase satisfaction and
productivity.
– Recent research estimates that more than one-third
of the U.S. workforce consists of contingent workers
of one kind or another. Most of them are on the
payrolls of the companies they serve, with self-
employed workers representing around 11% of
workers.54 Employers once mainly relied on
contingent workers to fill administrative jobs, but now
turn to contingent work arrangements for production
workers, technical support, and even some
professional tasks, such as graphic design,
engineering, and finance. A major reason for the
popularity of contingent work arrangements is that
paying contractors enables an organization to pay
only for completion of specific tasks and therefore to
control costs.
– Companies that rely primarily on alternative work
arrangements to meet service and product demand
are competing in the gig economy.Gig workers are
typically independent contractors who control when
and where they work and often are assigned work
through a website or mobile app (for example, a ride-
sharing driver). The model for the gig economy
focuses more on using a contingent workforce and
more project-based assignments and has now been
adopted in part by more and more U.S. businesses.
This approach to project-based employment will
require a different set of management skills for line
managers who might need to manage virtual teams,
remote workers, and constantly changing work terms.
According to the ADP Research Institute, the share of
gig workers at U.S. businesses has increased by
more than 15% over the last decade with no end in
sight.

o Flexible Work Schedules

– The globalization of the world economy and the


development of e-commerce have made the notion of
a 40-hour workweek obsolete. As a result, companies
need to be staffed 24 hours a day, seven days a
week. Employees in manufacturing environments and
service call centers are being asked to work 12-hour
days or to work afternoon or midnight shifts. Similarly,
professional employees face long hours and work
demands that spill over into their personal lives. B-
mail, texts, and tweets bombard employees with
information and work demands. In the car, on
vacation, on planes, and even in the bathroom,
employees can be interrupted by work demands.
More demanding work results in greater employee

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