Chapter 1S

BBDH 2013
Human Resource Dr. Cynthia Chan

Ling Meng
Management p4476@tarc.edu.my
Main References
1. Snell, A., & Morris,S. (2023). Managing human resources (19th edn).
Cengage.
2. Gomez-Mejia, L., Balkin, D., & Cardy, R. (2020). Managing human resource
(9th edn). New Jersey, Pearson.
3. Maimunah, A. (2018). Human resource management: principles and
practices(4th edn). Oxford Fajar.
Continuous Assessment
 Group Written Assignment (50 marks)
 Individual Presentation (50 marks)
Snell/Morris, Managing Human Resources, 19 th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
Chapter 1: The Opportunities
and Challenges of Human
Resources Management
Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
Chapter Objectives (slide 1 of 2)
The following objectives are addressed in this chapter:
1.1 Explain how human resource managers and other managers can have
rewarding careers by helping their firms gain a sustainable competitive
advantage through the strategic utilization of people.
1.2. Explain how good human resource practices can help a firm address
. strategic challenges such as globalization, competition, and
sustainability efforts.
1.3. Describe how technology can improve how people perform and how
they are managed.
.
Snell, Managing Human Resources, 19th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter Objectives (slide 2 of 2)
1.4 Explain the dual goals HR managers have in terms of increasing

productivity and controlling costs.
1.5. Discuss how firms can leverage employee differences to their strategic
advantage and how educational and cultural changes in the workforce
are affecting how human resource managers engage employees.
1.6 Provide examples of the roles and competencies of today’s HR

managers and their relationship with other managers
Evolution of HRM
Why Should You Study Human Resources
Management? Will It Pay Off?
Human Resource Management The process of managing human talent to
achieve an organization’s objectives
Importance:
• Having a good understanding of human resources management is important

for managers and entrepreneurs of all types
• All managers are responsible for some activities that fall into the category of
human resources management.
• Managers select employees, train and motivate them, appraise them, and
promote them.
• It’s a job that can be incredibly rewarding.
Snell, Managing Human Resources, 19Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part
Human Capital and Organizational Culture
Human Capital The knowledge, skills, and capabilities of individuals that add
economic value.
• Organizations “compete through people” because success depends on

managing human capital.
• To build human capital, managers develop superior knowledge, skills, and

experience and retain and promote top performers.
Organizational Culture The shared values, beliefs, and assumptions people in an

organization have.
• Organizational culture affects how people work and treat others.

. Snell, Managing Human Resources, 19 Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible
th

Discussion Activity 1
You probably understand organizational culture more than you realize.
a. Are there businesses you like to shop with because they perform better and
you enjoy the atmosphere and people?
b. Are there other businesses that are similar but that you don’t like to shop
with?
The difference is likely due to organizational culture. What are some examples?
Figure 1.1: Overall Framework for Human
Resources Management
Responding Strategically to Changes
and Disruptions in the Marketplace
Agility – A firm’s ability to make quick changes to gain a competitive advantage
• HR managers cope with ever-changing business conditions by helping
redesign their firms to achieve agility.
Human Resource Managers and Business Strategies

HR professionals can improve the top line by redesigning work to foster innovation,
by forecasting labor trends, by recruiting and motivating employees, and by
measuring their effectiveness.
HR managers can also help their firms with business strategies, as well as
mergers, acquisitions, and ways to enter new and global markets.
Competing, Recruiting, and Staffing Globally
• Importing and exporting goods and services is the easiest way to “go global.”
• The national identities of products are blurring.
• Free-trade agreements forged between nations have helped quicken the pace
of globalization.
• GATT paved the way for the formation of many major trade agreements and
institutions, and these are continuously changing- The UK exited- “Brexit”- the
European Union.
How Globalization Affects HRM
• Firms balance the following issues: different geographies, different cultures,
employment laws, business practices, and safety
• Human resource issues underlie these concerns.
• Relocating managers and training foreign managers occur through
• Downsizing – The planned elimination of jobs
• Outsourcing – Contracting outside the organization to have work done that

formerly was done by internal employees
• Offshoring – The business practice of sending jobs to other countries
Setting and Achieving Corporate Social
Responsibility and Sustainability Goals
Corporate Social Responsibility The responsibility to act in the best interests of
people and communities
Many firms have ethics codes, and “chief ethics officers.”

• Being responsible helps avoid lawsuits and improve earnings.
Environmentally Friendly Business – Doing business in a way that does little

harm to the environment
• Achieving complete sustainability is nearly impossible,
HR should spearhead the development and implementation of corporate

citizenship.
Knowledge Check Activity 1
Name a company you hope to work for someday.
What is its track record in terms of corporate social responsibility

and sustainability?
Are these factors important to you? Why or why not?
Technology Challenges (slide 1 of 4)
Advancements in information technology have enabled organizations to take
advantage of the information explosion.
• Computer networks
• “Cloud computing”
• Document-sharing platforms
• Videoconferencing
• Social media networking
The Covid-19 pandemic made web and videoconferencing applications like Zoom,
Skype, and Microsoft Teams everyday necessities.
From Touch Labor to Knowledge Workers
Technology has reduced jobs that require little skill and increased jobs that
require considerable skill.
• Knowledge Worker – Workers whose responsibilities extend beyond the

physical execution of work to include planning, decision-making, and
problem-solving
• There is an increase in knowledge-based training and virtual learning
Technology’s Effect on HRM
Human Resource Information Systems A computerized system that provides
current and accurate HR-related data for purposes of control and decision-
making
Used to:
• Automate payroll processing and administer benefits program
• Access employee records
• Recruit, screen, and pretest applicants online
• Train, track, and promote employees
• Access
Snell,employee
Managing Human records
Resources, 19
th
Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly accessible
Technology’s Effect on HRM (cont’d)
Big data – A buzzword that describes the massive amounts of data available online and
offline today
HR Analytics - The process of gathering and analyzing data to improve a firm’s human
resources management
An HRIS should provide HR personnel with analytical information that analyzes, refines,
and better implements a firm’s strategic direction.
Will technology eliminate the need for human resource managers?
Productivity and Cost Challenges
• Labor costs are often the largest expenditures companies make, particularly
in service and knowledge-intensive firms.
• How can companies actually spend more money on employees and still
drive overall costs lower?
• The answer: via higher employee productivity.
• Employee productivity is the result of a combination of employees’ abilities,

motivation, and work environment, and the technology they use to work.
Maximizing Productivity
Productivity – “The output gained from a fixed amount of inputs”
• Organizations can increase their productivity either by reducing their inputs or

by increasing the amount that employees produce by adding more human
and/or physical capital to the process.
• Growth in output per worker is now climbing fast in countries such as China
that in the past lacked the technology available to U.S. workers.
• Additional productivity will have to come from the enhanced ability of

employees, their motivation, and their work environment.
Managing the Size of the Workforce
To manage the size of the workforce, companies use:
• Offshoring
• Outsourcing
• Nearshoring – Occurs when a firm relocates jobs abroad to nations closer to
its domestic market
• Homesharing – The practice of outsourcing work to domestic workers who
work out of their homes
• Downsizing
• Furloughing - A situation in which an organization asks or requires
employees to take time off for either no pay or reduced pay
• Part-time or contract employees
Managing Pay and Benefits
Companies are trying numerous approaches to manage pay and benefits.
• Charging employees higher premiums to cover spouses

• Giving employees a set amount of money to purchase health insurance on their
own
• Employee Leasing – The process of eliminating the jobs of employees who are
then hired by a leasing company and contracting with that company to lease
back the employees
• Hiring freelancers, part-time employees, independent contractors, and
consultants.
• In the gig economy, people earn income from various nonpermanent “gigs,” or
jobs, and work independently, rather than full time for an employer.
Discussion Activity 2
To combat obesity and other health problems, GlaxoSmithKline, Humana,
Mutual of Omaha, and Best Buy have begun utilizing treadmill desks.
The treadmills move at a slow speed so employees do not get hot and sweaty
and out of breath.
What are some of the pros and cons of using treadmill desks at work?
Do cost-containment pressures work against the effective

management of people?
Why or why not?
Employee Challenges
In addition to strategic challenges, companies must attend to important

employee concerns.
Those challenges include:
• job security
• health care
• diversity
• employee rights.
Responding to the Demographic and Diversity
Challenges of the Workforce (slide 1 of 6)
• To forecast trends to support their strategies, HR managers analyze the

capabilities of demographic groups and how well each is represented in fast-
and slow-growing occupations.
• The labor force participation rate—the number of people employed or actively

looking for work—is declining in the United States,
• It is predicted to continue to fall due to declining birth rates and the aging U.S.
population.
• Figure 1.2 shows the U.S. labor force participation rate.
• The rate peaked in 2000 at about 67 percent; however, many people

dropped out of the job market.
• By 2050, the U.S. Bureau of Labor Statistics (BLS) predicts the labor force
participation rate will be about 60.2 percent.
Figure 1.2: U.S. Labor Force Participation Rates
over Time
Use Figure 1.2 to examine the reasons workforce participation
varies.
What is the current trend in workforce participation?
What factors are affecting it?
Ethnic and Racial Diversity in the Workforce
• Ethnic and racial diversity is growing in the workplace.
• Figure 1.3 shows the number of new temporary work visa approvals from 2010
to 2019.
• Some businesses, including those in agricultural, face labor shortages that

would be more severe without less-skilled immigrants who work for low pay
and few or no benefits.
• In recent years, the federal government and state and local governments
have made it harder for firms to hire undocumented workers.
• Following the widespread protests associated with George Floyd’s death,

and Black Lives Matter, many companies have worked to address this
important issue.
Figure 1.3: Labor Force Participation Rates of
Workers of Hispanic Origin versus Non-
Hispanic Origin
Age Distribution of the Workforce
• Generation Z
• Millenials
• Generation X
• Baby boomers
• Older workers
Figure 1.4: Labor Force Participation Rates of
Workers in the Labor Force by Their Ages
Gender Distribution of the Workforce
• Women constitute a little under half of the U.S. workforce.
• 60 percent of women 16 and older are in the labor force
• 70 percent of mothers with school-age children are employed.
• Three of every five college graduates are women.
• Women’s wages have increased
• Top executive positions are still dominated by men.

Figure 1.5: Labor Force
Participation Rates by Gender
Use Figure 1.5 to examine gender trends in the workforce. Students

who have work experience can discuss if they think they have been paid the
same as others in the same job.
Has gender affected their income?
Educational Shifts
Affecting the Workforce
• Figure 1.6 shows that a college education results in higher wages and lower
unemployment rates.
• Although the educational level of the labor force has risen, American students’
math and science test scores lag behind students in China, Japan, and other
nations.
Challenges:
o American students are said to lag behind in math and science test scores.
o American adults score low on literacy, math, and computer skills tests.
• HR managers have to find strategies to help their firms compete, despite these
challenges
Figure 1.6: Earnings and Unemployment Rates
of Full-Time U.S. Workers by Education
Adapting to Cultural and Societal Changes
Affecting the Workforce (slide 1 of 5)
• The attitudes, beliefs, values, and customs of people in a society are an
integral part of their culture.
• Naturally, their culture and society affect their behavior on the job and the
environment within the organization, influencing their reactions to
o work assignments,
o leadership styles
o reward systems.
• Cultural and societal changes are ongoing. HR policies and procedures

therefore must be adjusted to cope with these changes.
Changing Employee Rights
Laws affecting employee rights are continually changing.
• Equal employment opportunities
• Union representation
• A safe and healthy work environment
• Unemployment and health care benefits
• Regulation of pension plans
• Equal pay for equal work

Privacy Concerns of Employees
Employers are:
• Implementing privacy policies
• Limiting the use of social security numbers on employment forms
• Restricting access to employee files
• Conducting background checks on employees
• Contracting with outside firms that specialize in identity theft to prevent abuse of employee information
• Using the global positioning system (GPS) and smartphone applications to monitor employees
• Scrutinizing information employees post on the Web and social media

Changing Attitudes Toward Work and How They Relate to Employee
Engagement
• Many employees believe satisfaction results from balancing work challenges
and rewards with their personal lives.
• Employees focus on finding interesting work and pursue multiple careers.
Employee Engagement - The extent to which employees are enthused about

their work and committed to it
• Firms focus on achieving employee engagement
Balancing Work and Family
• Employees are working more hours than they have at any time since 1973.
• Competitive organizations are finding it advantageous to provide employees with
more family-friendly options, such as:
• telecommuting
• flexible work hours
• day care
• elder care,
• job sharing
• Assistance with family problems
Companies with programs such as these have a powerful way to attract and retain
top-caliber people.
The Role HR Managers Play and Their
Partnership with Other Managers
By staying abreast of workforce trends and developments and gathering and analyzing data,
HR managers help their firms choose the best strategies for:
o competing globally
o selecting ideal HR systems
o maximizing productivity
o managing benefits.
Line Manager - Non-HR managers who are responsible for overseeing the work of other
employees
• Successful organizations combine the experience of line managers with the expertise of
HR managers to develop and utilize the talents of employees to their greatest potential.
• Different types of HR managers specialize in different functions.
Figure 1.7: Positions in HR and
Their Median Annual Wages
Responsibilities of
Human Resource Managers
The major activities for which HR managers are typically responsible include:
• Strategic advice and counsel
• Service
• Policy formulation and implementation
• Employee advocacy
Figure 1.8: Competencies Human Resource
Managers Require
HR managers need:
• Leadership and navigation,

• Ethical practice
• Business acumen
• Relationship management
• Consultation
• Critical evaluation
• Global & cultural effectiveness
• Communication
• HR expertise.
Figure 1.8: Human Resource Competency
Model
Polling Activity
Question: In your opinion, what is the most important role HR managers play?
a. Business mastery
b. HR masters
c. Personal credibility
Summary
• Now that this lesson has ended, you will have learned how to:
1.1. Explain how human resource managers and other managers can have
rewarding careers by helping their firms gain a sustainable competitive
advantage through the strategic utilization of people.
1.2. Explain how good human resource practices can help a firm address
strategic challenges such as globalization, competition, and
sustainability efforts.
1.3. Describe how technology can improve how people perform and how
they are managed.
.
Summary
1.4. Explain the dual goals HR managers have in terms of increasing
productivity and controlling costs.
1.5. Discuss how firms can leverage employee differences to their strategic
advantage and how educational and cultural changes in the workforce
are affecting how human resource managers engage employees.
1.6 Provide examples of the roles and competencies of today’s HR

managers and their relationship with other managers
Snell, Managing Human Resources, 19 th Edition. © 2023 Cengage. All Rights Reserved. Many not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Question
A new CEO takes charge of a tech company experiencing internal conflicts and low
morale among employees. The CEO initiates measures such as open-door policies,
cross-functional team-building activities, and regular town hall meetings to foster
collaboration and transparent communication.
Based on the given scenario, identify what’s the scenario reflecting? Define and
explain the importance of this scenario at the workplace
Answer
Organizational Culture – The shared value, beliefs and assumptions people in
an organization have.
The importance of organizational culture lies in its profound impact on

various aspects of a company's performance. A strong culture boosts
employee engagement, attracting and retaining top talent while fostering
productivity and innovation. It also enhances adaptability, resilience, and
customer satisfaction, while promoting ethical behavior and compliance.
Ultimately, organizational culture serves as the cornerstone of success,
shaping attitudes, behaviors, and interactions within the company and driving
long-term growth and sustainability.
Questions
In a manufacturing company, employees are regularly required to work overtime
without proper compensation or breaks. Despite complaints from workers,
management ignores their concerns and continues to enforce these practices to meet
production targets. Additionally, there are reports of unsafe working conditions in the
factory, with frequent accidents occurring due to inadequate safety measures. Despite
the existence of labor laws, employees feel powerless to demand their rights and fear
retaliation if they speak up against the company's practices. As a result, morale is low,
and turnover rates are high among workers.
Identify what’s the challenges encountered in the above scenario
Employee Rights

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BBDH 2013

Human Resource Dr. Cynthia Chan

 Individual Presentation (50 marks)

The following objectives are addressed in this chapter:

1.4 Explain the dual goals HR managers have in terms of increasing

1.6 Provide examples of the roles and competencies of today’s HR

• Having a good understanding of human resources management is important

• Organizations “compete through people” because success depends on

• To build human capital, managers develop superior knowledge, skills, and

Organizational Culture The shared values, beliefs, and assumptions people in an

• Organizational culture affects how people work and treat others.

website, in whole or in part.

Human Resource Managers and Business Strategies

• The national identities of products are blurring.

• Downsizing – The planned elimination of jobs

• Outsourcing – Contracting outside the organization to have work done that

• Offshoring – The business practice of sending jobs to other countries

Many firms have ethics codes, and “chief ethics officers.”

Environmentally Friendly Business – Doing business in a way that does little

HR should spearhead the development and implementation of corporate

Name a company you hope to work for someday.

What is its track record in terms of corporate social responsibility

Are these factors important to you? Why or why not?

• Knowledge Worker – Workers whose responsibilities extend beyond the

• There is an increase in knowledge-based training and virtual learning

• Access employee records

• Recruit, screen, and pretest applicants online

• Train, track, and promote employees

Will technology eliminate the need for human resource managers?

• The answer: via higher employee productivity.

• Employee productivity is the result of a combination of employees’ abilities,

• Organizations can increase their productivity either by reducing their inputs or

• Additional productivity will have to come from the enhanced ability of

• Charging employees higher premiums to cover spouses

Do cost-containment pressures work against the effective

Why or why not?

In addition to strategic challenges, companies must attend to important

Those challenges include:

• To forecast trends to support their strategies, HR managers analyze the

• The labor force participation rate—the number of people employed or actively

• Figure 1.2 shows the U.S. labor force participation rate.

• The rate peaked in 2000 at about 67 percent; however, many people

What is the current trend in workforce participation?

What factors are affecting it?

• Ethnic and racial diversity is growing in the workplace.

• Some businesses, including those in agricultural, face labor shortages that

• Following the widespread protests associated with George Floyd’s death,

• 60 percent of women 16 and older are in the labor force

• 70 percent of mothers with school-age children are employed.

• Three of every five college graduates are women.

• Women’s wages have increased

• Top executive positions are still dominated by men.

Use Figure 1.5 to examine gender trends in the workforce. Students

Has gender affected their income?

• Cultural and societal changes are ongoing. HR policies and procedures

• A safe and healthy work environment

• Unemployment and health care benefits

• Regulation of pension plans

• Equal pay for equal work

• Limiting the use of social security numbers on employment forms

• Restricting access to employee files

• Conducting background checks on employees

• Scrutinizing information employees post on the Web and social media