2020-Module-1-HRM-The-Rewards-and-Challenges-of-Human-Resource-Management (1)-converted PDF

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UNIVERSITY OF MAKATIJ. P. Rizal Ext., West Rembo, Makati CityCOLLEGE OF BUSINESS AND FINANCIAL SCIENCEDepartment of Human Resource Development Management Course Title Module No. 1TitleHUMAN RESOURCE MANAGEMENTTHE REWARDS AND CHALLENGES OFHUMAN RESOURCE MANAGMENTModule Leader DR. JANINE MONEDA-DELA C...

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UNIVERSITY OF MAKATI J. P. Rizal Ext., West Rembo, Makati City

COLLEGE OF BUSINESS AND FINANCIAL SCIENCE Department of Human Resource Development Management Title Course Title Module 1 THE REWARDS AND CHALLENGES OF No. HUMAN RESOURCE MANAGMENT HUMAN RESOURCE MANAGEMENT Module Leader DR. JANINE MONEDA-DELA CRUZ

Timeframe: How to Complete this module?

Module DR. FELICISIMA V. RAFAEL Contributor/s Students are expected to finish all the activities, assignments, and assessments of this module within week 2. Students are expected to: 1. Read the Topic Lesson 2. View video lecture a. Importance of studying Human Resource Management: http://www.youtube.com/watch? v=xQvjWcGTcoI, July 2020 b. Strategic and Global Challenges  Technology  Challenges  Productivity and  Cost Challenge  Employee Challenges c. https://www.youtube.com/watch?v=kqr8r8r95x0, July 2020 3. Participate in this week’s discussion 4. Answer the Performance Task No. 2 a. INTERNET RESEARCH: THE HRM ROLE IN BUSINESS ORGANIZATION (Group Task – by Pair) 1. RESEARCH a company (small, medium and multinational company) in the country or abroad. 2. COMPARE AND CONTRAST the different roles and competencies required of an HR Managers today. 3. PREPARE 2-minute video presentation for this task and upload your work in YouTube. Link should be submitted during google meeting for critiquing. b. REFLECT UPON (ESSAY – MINIMUM OF 200 WORDS) (Individual Task) 1. What I did well? 2. What I will do differently next time? 3. Other learning points.

Teaching Strategies

1. Read Topic Note (Module) / PPT presentation. 2. Discussion/ Recitation via Google Meet.

Introduction/Overview

The human resource management is a subset of a study of management that focuses on how to attract, hire, train, motivate and maintain employees. Strong employees become a source of competitive advantages in global environment facing rapid and complex change. HRM professionals must be prepared to deal with the effects of these changes. This means understanding the implications of an increasingly complex external environment that includes changing employee expectations, globalization, technology changes, global economies, workforce diversity, labor shortages, changing skill requirements, continuous improvement initiatives, decentralized work sites, company mergers, offshore sourcing of goods and services, and employee involvement. These challenges are not related to the single dimension; rather they are directed towards multi-dimensional issues that should be tackled with immediate care. The following are the broad categories of Human Resource Management challenges in today’s competitive world.

By the end of this module, student should be able to: 1. EXPLAIN how the human resource managers and other managers can have rewarding careers by helping their firms gain a sustainable competitive advantage through strategic utilization of people. 2. DISCUSS how good human resource practices can help a firm’s globalization, corporate social responsibility, and sustainable effort. 3. DESCRIBE how technology can improve how people perform and how they managed. 4. EVALUATE dual goals HR manager have in terms of increasing productivity and controlling costs. 5. ASSESS how firms can leverage employee differences to their strategic advantage and how educational and cultural changes in the workforce are affecting how human resources manager engage employees. 6. PROVIDE examples of the roles and competencies of today’s HR managers and their relationship with other managers.

I.

REWARDING CAREERS IN HUMAN RESOURCE MANAGEMENT A. Competitive Advantage through Strategic Utilization of People Understanding human resources management practices and issues can help you better compete in the marketplace. Employees and managers who have a good understanding of their firm's business can help it achieve its strategies the effective utilization of people and their talents. To "compete through people," organizations have to do a good job of managing human capital: the knowledge, skills, and capabilities that have value to organizations: 1.

Managers must develop strategies for identifying, recruiting, and hiring the best talent available;

2.

Develop these employees in ways that are firm-specific; helping them to generate new ideas and generalize them throughout the company;

3.

Encourage information sharing;

4.

Rewarding collaboration and teamwork among employees.

B. The Challenging Role of Managing Human Resource Today 1.

Changing Employee Expectations The values of today’s employees are somewhat different from the values of a generation ago. One must recognize that today’s workforce comprises of several generation, each with different set of values, aspirations, and each with unique perspective and attitude towards work. By 2024, about 25% of the workforce is projected to be over the age 55. That compares to only 12 percent of the workforce in 1994. In fact, some of workplaces, 55 doesn’t even begin to signify time to retire. Those in their 60s, 70s, and even 80s also are deciding to stay in the place either full time or part time. This trend has resulted in new phenomenon: more generations in the workplace. In fact, today, many workplaces are composed of five generations:

WATCH: How to Manage 5 Generations in the Modern Workplace https://www.youtube.com/watch?v=gmzgfJl40hQ, 30 August 2020

a. The Silent Generation / Traditionalist – Born before1946. They are now veterans who entered the workforce in the 1950s and 1960s. They are known to be loyal to the organization. b. The Baby Boomers – Born between 1946 and 1964. They who are born after the second world war when the economy was booming. People experience hardships of the war days. Aggressive and ambitious. They were known to be loyal to their careers. c. Generation X – Born between 1965 and 1976. They were born before the advent of the Information Age. They were concern about work life balance. d. Generation Y, or Millennial – Born between 1977 and 1997. They were considered as Nexters and they are already in their 20s. They love modern gadgets of the information age, designer coffee, hoodie jackets and jeans. They are known for talking back to their bosses, they are ambitious, demanding and questions everything. When it comes to loyalty, the companies they work for are last on their list—behind their families, friends, communities, co-workers, and of course themselves. e. Generation Z – Born after 1997. Their media consumption habits differ from previous generations-event to the millennial. They

prefer

Entrepreneurial

cool and

products

over

tech-savvy

cool are

experiences.

Generation

Z

characteristics. They respond to edgy campaigns. They want to co-create culture—and they do. II.

HUMAN RESOURCE PRACTICES IN TERMS OF GLOBALIZATION, CULTURAL ENVIRONMENT,

REGULATIONS

AND

LEGISLATION,

DIVERSITY

AND

INCLUSION A. Globalization The process by which businesses or other organizations develop international influence or start operating on an international scale. The number of organizations seeking to find a talented workforce, advance technology, suppliers, trade information transfer capital, and move products has increased dramatically. As globalization accelerates international borders reduce in importance to business and global economies become more independent. Multi-national corporations (MNCs) are typically based on home country, but

have significant operations in many other countries. This allows them to extend their production and distribution on a regional or global basis to take

advantages of the resources and markets in other countries. opportunities for growth

These

have enabled many organizations to develop extensive international operations with subsidiaries in many countries, no longer identifying with a single “home” country, earning the title of transnational corporation. The familiar multinational and transnational company include: Toyota, Nestle, San Miguel Corporation etc. These organizations are able to take advantage of the global pool of talent and resource as opportunities arises. These requires HRM professionals to adopt to cultures, legal systems and business practices in many different countries and ensures that employees with the appropriate mix of knowledge, skills and cultural adaptability are available and ready to handle global assignments. B. Understanding Cultural Environment The increase of multinational and transaction companies creates new requirements on human resource managers to understand global and organizational cultures and to ensure that the employees have the appropriate mix of knowledge, skills and adaptability to operate within those cultures. C. Regulations and Legislation New laws and court decisions change HR every day. Additionally, the Department of International Labor Organization (ILO), Labor and Employment (DOLE), National Labor Relations Commission (NLRC), and many other government agencies frequently revisit the way they interpret and enforce policies and laws involving employees and employers. Some issues that have been addressed in the states include increasing minimum wage above the federal minimum, protecting employment rights of smokers or the obese, requiring employers to provide mandatory sick leave, restrictions on requiring employees to travel in bad weather, and either cracking down on or increasing the rights of illegal immigrants in the workplace. When local or state laws conflict with federal laws, the one that gives employees more rights usually prevails. Legal rights and requirements are so important, legal compliance has become a major responsibility for HRM. Records must be kept, posters must be posted, data must be reported, safety must be monitored, and a thousand other legal requirements need to be monitored to protect the rights of employees and protect the employer from legal liability. We will address many of these requirements as we study hiring, compensation, benefits, unions, safety, and many other topics. Professional organizations such as Society of Human Resource Management (SHRM) help HR professionals keep informed

on the latest legal issues and provide lobbying efforts to inform legislators about the concerns of employers and HR professionals

D. Diversity and Inclusion Many employers are choosing to define workforce diversity in a much broader way that recognizes individuality rather than groups and labels. This includes going beyond Equal Employment Opportunity laws that protect recognized groups from discriminatory practices, recognizing that we are all unique individuals who want to be recognized for our uniqueness rather than our similarity to others.

Employees who are able to be open about all aspects of their spirituality, politics, sexual orientation, disabilities, socio-economic status, family, cultural influences, and many other beliefs and characteristics, in addition to traditionally recognized and legally protected personal attributes, are hap- pier, more engaged, and more productive.

III.

USE OF TECHNOLOGY IN MANAGING HUMAN RESOURCES A. Technology and HR Technology and the Internet are responsible for accelerating the globalization of the world’s economy. The influence of the technology and the Internet on our lives, employers, and the way we work, and the economy was on the mind of Thomas Friedman, a Pulitzer Prize ‐winning New York Times author, as he explored the foundations of globalization in his best ‐selling book, The World Is Flat. Friedman explained that countries, companies, and individuals are now able to compete on an almost level playing field, aided by cheap instantaneous communication via fiber optics and the Internet. Fast inexpensive transportation of people and goods have accelerated the process of globalization. Individuals are now empowered to compete globally, regardless of their country of origin. Friedman projects that world economies will be dominated by empowered individuals, creating a business environment that is more diverse and less dominated by organizations in Western countries.

Many HR tasks have been automated, making it easier for employees to access HR information quickly and easily via company websites and intranets. These self‐service systems allow employees to access frequently requested information such as payroll, benefits, available training, employee handbooks, and deductions conveniently. The Human Resource Information Systems (HRIS) that make this possible also gather, store, and analyze HR information allowing HRM professionals to better facilitate payroll, benefits administration,

applicant tracking, training, performance management, and many other important HR functions:



Staffing Chances are you’ve used an online source like to look for job opportunities. Did you check the “Careers” section of the company website? CareerBuilder, Monster, Indeed, or another online job board? LinkedIn, Facebook, Twitter, or other social media? Most employers recruit online because it’s the most effective way to find qualified applicants.



Training and Development HRIS software helps HRM orient, train, and develop employees and help them manage their careers. Web or cloud ‐based services provide training and development to employees on demand, whenever the employee has the time to concentrate on the material. Online training and teleconferencing also allow HR departments to deliver cost‐effective training that helps stretch the HR budget.



Ethics and Employee Rights Knowledge workers are susceptible to distractions that can undermine their work effort and reduce their productivity. Electronic surveillance of employees by employers is an issue that pits an organization’s desire for control against an employee’s right to privacy.



Compensation It’s becoming more difficult today for organizations to find and retain technical and professional employees. Many companies have implemented an extensive list of attractive incentives and benefits rarely seen by non-managerial employees in typical organizations, for instance, signing bonuses, stock options, cars, free health club memberships, full ‐time on‐site concierges, and subsidies for mobile phones. Technology is also making compensation more transparent.

IV.

GOALS OF HR MANAGERS IN TERMS OF INCREASING PRODUCTIVITY AND CONTROLLING COST

A. Labor Costs Labor costs are a significant expense for many organizations. During the recent recession, many were forced to reduce the size of their workforce significantly

using a variety of methods such as reduced hours, pay reduction, downsizing, outsourcing, off-shoring, and using contingent labor. During the recovery, many organizations have been reluctant to regain their prerecession employment levels and have continued their use of contingent labor as a way to manage labor costs. As we progress, we will examine additional ways to control labor costs by reducing costs of employee benefits, managing worker’s compensation and disability claims and many others. For now, we’ll focus on the challenges of downsizing, contingent workers, and offshoring. 1. Downsizing The purpose of downsizing is to cut costs in the face of financial pressures or a downturn in the economy. It may also be a strategic move when restructuring requires an organization to close a division or facility. Sometimes, organizations attempt to increase their flexibility in order to better respond to change. Quality‐emphasis programs may create a flatter structure and redesign work to increase efficiency, resulting in the need for fewer employees. Companies such as GE, Kraft, and Time Warner have managed to create agility by dividing their organization into smaller, more flexible units. When downsizing is used as a way of balancing staff to meet changing needs, it may involve cutting staff in some areas as they increase staff in other areas. This change in staffing is often called rightsizing. 

Rightsizing promotes greater use of outside firms for providing necessary products and services called outsourcing—in an effort to remain flexible and responsive to the ever ‐changing work environment.

2. Contingent Workforce Many organizations have learned that they can save money and increase their flexibility by converting many jobs into temporary or part‐ time positions, giving rise to what is commonly referred to as the contingent workforce. Temporary workers can be found in nearly every job

category

including

administrative,

nursing,

accounting,

manufacturing, legal, dentistry, IT, engineering, marketing, education, publishing, and even senior management positions. The contingent workforce includes the following:



Part‐time Employee – Part‐time employees are those who work fewer than 40hours a week. Generally, part ‐timers receive few employee benefits. Part‐time employees allow organizations to

supplement their staff during peak hours. For example, the bank

staff that expects its heaviest clientele between 10A.M. and 2P.M. may bring in part‐time tellers for those 4 hours. Part‐time employees may also split one full ‐time job with another part‐time employee, often called job‐sharing. 

Temporary employee –

Temporary employees may be

employed during peak production periods to meet increased demand for production or services. Temporary workers also act as fill‐ins when some employees are off work for an extended time. For example, an administrative assistant position may be filled using a “temp” while the employee is off work during his 12‐ week unpaid leave of absence for the birth of his daughter.



Contract

workers

Contract

workers,

freelancers,

subcontractors, and consultants are contracted by organizations to work on specific projects. These workers are often highly skilled. Their fee is set in the contract and is usually paid when the organization receives particular deliverables. Contract workers are used because their labor cost is fixed, and they incur few of the costs associated with a full ‐time employee population. 3.

Off-shoring Off-shoring, the process of moving jobs to another country for economic reasons has been blamed for the decrease in employment in many industries, particularly in manufacturing. It’s partly true, but economists estimate that off-shoring may explain no more than 3 percent of all mass layoffs. Instead, many manufacturing jobs are lost to more efficient production methods such as robotics and computerized tooling. Off-shoring isn’t always a permanent solution to controlling costs. General Electric has brought production of some appliances back to the United States and a few manufacturers of large, expensive products such as jet engines and power plant turbines also brought production back to the United States, a process re-shoring, or bringing jobs back to the home country.

B. Continuous Improvement Programs. The ability to compete in a global economy requires an emphasis on quality production and services. The generic terms that describe this revolution are quality management and continuous improvement. Hiring, training, and

maintaining workers able to support an emphasis on quality management and continuous improvement are a strategic HRM responsibility in many

organizations. An early advocate of quality production was W. Edwards Deming, an American statistician who taught statistical methods to control...