Fundamentals of Human

Resource Management
DeCenzo and Robbins

Chapter 1
Strategic Implications of a Dynamic HRM Environment

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 HUMAN RESOURCE MANAGEMENT

All organizations need resources of manpower,

money, material and machinery to function
effectively.  The resources by themselves cannot
fulfill the objectives of the organization, they need
to be collected, coordinated and utilized through
human resources who in turn are to be managed
effectively and efficiently. Hence human resource
management (HRM) is a major activity in an
organization that deals with issues related to
people
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 HRM Process
It is the process of:
 Recruitment
 Selection of employees
 Providing orientation
 Induction
 Training as well as the development of skills
 Performance appraisal of employees
 Providing proper compensation and benefits
 Motivating
 Communication
 Administration
 Maintaining proper relations with employees as well as with trade unions
 Maintaining employee’s safety, welfare and health by complying with labor laws
 Organization development.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 The ten ‘Cs’ of HRM
 Cost effectiveness
 Competitive
 Coherence (consistency)
 Credibility
 Communication
 Creativity
 Competitive advantage
 Competence
 Change
 Commitment
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 HRM Definition
As per Decenzo and Robbins ‘HRM is concerned
with the people dimension in management. Since
every organization is made up of people, acquiring
their services, developing their skills, motivating
them to higher levels of performance and ensuring
that they continue to maintain their commitment
to the organization is essential to achieve
organizational objectives.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Functions of HRM

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Introduction
• The World of Work - continues to change, but
at an even more rapid pace.
• HR must understand the implications of:
– globalization
– technology changes
– workforce diversity
– changing skill requirements
– continuous improvement initiatives
– the contingent work force
– decentralized work sites
– and employee involvement

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Understanding Cultural
Environments
• Today’s business world is truly a global
village. This term refers to the fact that
businesses currently operate around the
world.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Understanding Cultural
Environments
• HRM must ensure that
– employees can operate in the appropriate language
– communications are understood by a multilingual work force
• Ensure that workers can operate in cultures that differ
on variables such as
– status differentiation
– societal uncertainty
– Assertiveness (Confidence)
– Individualism (uniqueness)
• HRM also must help multicultural groups work
together.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Understanding Cultural
Environments
• GLOBE Dimensions:
– Assertiveness
– Future Orientation
– Gender Differentiation
– Uncertainty Avoidance
– Power Distance
– Individualism/collectivism
– In-group collectivism
– Performance orientation
– Humane orientation

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Understanding Cultural
Environments
• Cultural Implications for HRM
– Not all HRM theories and practices are
universally applicable.
– HRM must understand varying cultural
values.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 The Changing World of
Technology
• Has altered the way people work.
• Has changed the way information is
created, stored, used, and shared.
• The move from agriculture to
industrialization created a new group of
workers – the blue-collar industrial
worker.
• Since WWII, the trend has been a
reduction in manufacturing work and an
increase in service jobs.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 The Changing World of
Technology
• Knowledge Worker - individuals whose jobs
are designed around the acquisition (gaining)
and application of information.
• Why the emphasis on technology:
– makes organizations more productive
– helps them create and maintain a
competitive advantage
– provides better, more useful information

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 The Changing World of
Technology
• How Technology Affects HRM Practices
– Recruiting
– Employee Selection
– Training and Development
– Ethics and Employee Rights
– Motivating Knowledge Workers
– Paying Employees Market Value
– Communication
– Decentralized Work Sites
– Skill Levels
– Legal Concerns

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Workforce Diversity
• The challenge is to make organizations
more accommodating to diverse groups
of people.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Workforce Diversity
• The Workforce Today
– minorities and women have become the
fastest growing segments (sectors)
– the numbers of immigrant workers and
older workers are increasing

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Workforce Diversity
• How Diversity Affects HRM
– Need to attract and maintain a diversified
work force that is reflective (deep) of the
diversity in the general population.
– Need to foster (bring up) increased
sensitivity to group differences.
– Must deal with the different
• Values
• Needs
• Interests
• Expectations of employees

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Workforce Diversity
• What Is a Work/Life Balance?
– A balance between personal life and work
– Causes of the blur (distortion) between
work and life
• The creation of global organizations means the
world never sleeps.
• Communication technologies allow employees
to work at home.
• Organizations are asking employees to put in
longer hours.
• Fewer families have a single breadwinner
(wage earner).
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 Labor Supply
• Do We Have a Shortage of Skilled
Labor?
– The combination of the small Gen-X
population, the already high participation
rate of women in the workforce, and early
retirements will lead to a significantly
smaller future labor pool from which
employers can hire.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Labor Supply

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Labor Supply
• Issues Contingent Workers Create for
HRM
– How to attract quality temporaries
– How to motivate employees who are
receiving less pay and benefits
– How to have them available when needed
– How to quickly adapt them to the
organization
– How to deal with potential conflicts
between core (principle) and contingent
workers
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 Continuous Improvement
Programs
• Continuous improvement - making
constant efforts to provide better
products and service to customers
– External
– Internal
• Quality management concepts have
existed for over 50 years and include
the pioneering (founding) work.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins