Concluding Thoughts

1
Concluding Thoughts

• Steve Werner

2
Summary of the Major Environmental Changes

• Major environmental changes include the
• Global segment
• Technological segment
• Legal segment
• Demographic segment
• Internal environment

3
The Global Segment

• Major effects of the globalization of business
  include the
• Staffing and development
• Importance of technology training
• Cultural context of work
• Outsourcing decisions

4
The Technological Segment

• Rapid improvements in technology have impacted
  all aspects of business from production to
  marketing

5
The Technological Segment Continued

• Technology is impacting business in the following
  ways
• Employee communication
• Employee training
• Organizational Structure
• How work is organized
• Skills needed
• Outsourcing decisions
• Benefit costs
• Post-catastrophe capabilities

6
The Legal Segment

• Court rulings affecting HRM address issues such
  as
• Sexual harassment
• Age discrimination
• Alternative dispute resolution

7
The Legal Segment Continued

• Recent laws affecting HRM include the
• Sarbanes-Oxley Act
• Changes in SEC disclosure requirements

8
Demographic Segment

• Demographic changes include
• More dual career families
• The changing shape of families
• The aging workforce
• Increased diversity
• More women in the workforce

9
Internal Environmental Factors

• Changes in the internal environment include
• Altered employee expectations with respect to
  work/life balance
• Increased childcare and elder care
  responsibilities of employees
• Increased job stress
• Increased employee diversity
• Reduced employee commitment
• Changes in employee benefit needs

10
Common Company Response Themes

• Some common themes of company responses to issues
  that emerged include
• Modifying the companys culture
• Increasing training
• Using compensation and performance appraisals to
  support change
• Introducing new programs and policies

11
Modifying the Companys Culture

• One way that companies responded to environmental
  changes was to alter their companys culture. The
  following changes were discussed
• Increased diversity and tolerance
• High ethics
• Safety emphasis
• Employee empowerment
• Social support

12
How HR Changes Company Culture

• Training, assessment and evaluation
• Communication of goals and good progress
• Adapting HR functions
• Incorporating changes into policies, procedures,
  and programs

13
New Programs and Policies

• New programs can be used as agents of change in
  organizations but do not necessarily affect the
  culture. Some examples of new programs are
• Health awareness programs
• Safety programs
• Employee assistance programs
• Work/life programs
• Diversity programs
• Commitment-enhancing programs

14
Increased Training

• Training programs are an important part of
  company responses to the environment. Examples
  include
• Training specific to supervisors regarding
  conflict resolution
• Post traumatic stress behaviors
• Training for team building
• Ethics training
• Safety training

15
Performance Appraisal and Compensation

• Performance appraisal and compensation has been a
  tool of HR to respond to the environment through
• Helping to foster cultural change
• Cost savings
• Enhancing employee commitment
• Increased employee support

16
HR Outcomes

• Internal outcomes of HR responses include
• More ethical behaviors by employees and managers
• Increased employee productivity and performance
• Increased employee commitment
• Healthier employees
• Lower turnover

17
HR Outcomes Continued

• Firm level outcomes include
• Greater legal compliance
• More efficient and effective training
• Greater workforce flexibility
• Improved recruiting
• Increased profits
• Improved customer loyalty
• Sustained competitive advantage

18
Negative Outcomes

• Some costs that might be associated with HR
  responses are
• Reduced control of employees allowing poor
  choices to be made
• Reduced motivation
• Lower social connectivity
• Greater administrative costs
• Increased demands on employees

19
Moderating Factors

• The appropriateness of HR responses is likely to
  vary depending on the firms internal
  environment. Important factors to consider in the
  internal environment are
• Capabilities and resources
• Size
• Nature of its ownership
• Current culture
• Characteristics of its labor force

20
Moderating Factors Continued

• Workforce characteristics affecting outcomes
  include the
• Nature of the work performed
• Personal characteristics of the employees

21
Common Guideline Themes

• Guidelines are one way that companies proactively
  address environmental issues. Three areas that
  guidelines are commonly developed for are
• Monitoring the external and internal environment
• Using HR functions to prepare and adapt to
  environmental changes
• Educating and encouraging employees

22
Monitor the External and Internal Environment

• Firms should establish programs and mechanisms to
  anticipate and detect environmental changes
• Monitoring should include specific legal,
  technological, global and demographic changes
• Monitoring should also include measuring the
  internal environment of the company in various
  areas

23
Guidelines for Adapting to Environmental Change

• Training can be used to increase employee skills,
  knowledge, and abilities to better adapt to
  changes
• Performance appraisals can be used to provide
  feedback to employees regarding desired behaviors

24
Guidelines for Adapting to Environmental Change
Continued

• Compensation can be used to reinforce and reward
  desired behaviors
• Staffing can be used to attract, hire and retain
  employees who better fit the new culture

25
Educate and Encourage Employees

• Encourage employees to adapt to organizational
  changes including
• Enrolling in new programs
• Following new policies and procedures
• Educating employees on how and why these changes
  will be beneficial

26
Conclusion

• The chapters in this book have pointed out
  numerous issues that are currently being tackled
  by HR departments in North American firms
• This book has shown that environmental changes
  have created complex and exciting challenges for
  firms in the area of HR