Strategic Human Resource Management

GreggU

12 Aug 201606:49

Summary

TLDRThe video script discusses strategic employee management, emphasizing the importance of aligning HR practices with organizational demands such as company strategy, culture, and employee concerns. It highlights the significance of understanding the aging and diversifying labor force, and the need for fair treatment of employees through distributive, procedural, and interactional justice. The script also touches on environmental influences like labor market trends, technology, globalization, and ethics.

Takeaways

🔍 Managing employees strategically involves using different practices as tools to achieve organizational goals through human resource management.
🏢 Organizational demands, such as strategy, company characteristics, organizational culture, and employee concerns, influence how employees are managed.
📈 A company's strategy sets its overall objectives and parameters for employee contributions, affecting how competitive advantage is created.
🏭 Company characteristics, including size and stage of development, directly relate to how employees are managed and what is expected of them.
🌐 Organizational culture, defined as the underlying values and beliefs shared by employees, impacts how a company operates and manages its workforce.
👥 Employee concerns are critical to consider in HR management, as they influence how employees view their relationship with the organization and their expectations of fairness.
💼 Distributive justice, procedural justice, and interactional justice are three primary aspects of employee-company relationships that employees monitor, affecting their perceptions of fairness.
🌟 Distributive justice involves the fairness of what individuals receive from organizations in return for their effort, focusing on a balanced exchange.
📚 Procedural justice is about whether the processes used to affect employees are viewed as fair, with consistency being a key factor in employee acceptance.
💬 Interactional justice concerns how employees feel they are treated by managers in everyday interactions, emphasizing politeness and respect.
🌐 Environmental influences, such as labor market trends, technology, globalization, and ethics and social responsibility, also impact the strategic management of human resources.

Q & A

What is the primary purpose of managing employees strategically?
-The primary purpose of managing employees strategically is to accomplish organizational goals through the effective use of various HR practices, which are considered as tools to manage human resources.
What are the factors that constitute organizational demands affecting how employees are managed?
-Organizational demands affecting employee management include strategy, company characteristics, organizational culture, and employee concerns.
How does a company's strategy influence the management of employees?
-A company's strategy sets the overall objectives and parameters for employee contributions, determining how people add value within the company and what kind of contributions are needed to create a competitive advantage.
What is meant by company characteristics in the context of employee management?
-Company characteristics refer to the differences in size and stage of development of a company, which directly relate to how they manage employees.
Can you explain the concept of organizational culture and its role in employee management?
-Organizational culture is a set of underlying values and beliefs shared by employees within an organization, often summarized as 'how we do things around here.' It influences the practices and behaviors expected and reinforced in the workplace.
What are the three primary aspects of justice that employees tend to monitor in their relationship with the company?
-The three primary aspects of justice are distributive justice, procedural justice, and interactional justice, which relate to the fairness of what individuals receive, the fairness of processes used, and how employees are treated in everyday interactions.
How does distributive justice affect employees' perception of their work environment?
-Distributive justice affects employees' perception by ensuring a balanced exchange where employees receive compensation and benefits of equal value for their time and effort.
What factors influence perceptions of procedural justice among employees?
-Factors influencing perceptions of procedural justice include consistency, transparency, and fairness in the processes that affect employees, such as evaluations or decisions regarding pay raises.
How is interactional justice related to the everyday treatment of employees by managers?
-Interactional justice is related to how employees feel they are treated by their managers and supervisors in everyday interactions, focusing on politeness, respect, and the overall quality of treatment.
What are the possible actions employees may take in response to perceived violations of justice?
-Employees may voice actions to correct perceived unfair situations, choose silence or non-rest, neglect fair duties, exit the company, or engage in counterproductive behaviors such as vandalism, theft, or aggression.
How are environmental influences like labor market trends, technology, globalization, and ethics impacting the strategic management of human resources?
-Environmental influences impact strategic HR management by requiring organizations to adapt to an aging and more diverse workforce, technological advancements, global competition, and ethical considerations in their HR practices.

Outlines

00:00

🛠️ Strategic Management of Human Resources

This paragraph discusses the strategic management of employees, comparing it to selecting the right tool for a job. It emphasizes that HR practices are tools managers use to achieve organizational goals. The paragraph highlights three main organizational demands that influence HR management: strategy, company characteristics, and employee concerns. Strategy involves a company's plan for competitive advantage, while company characteristics include size and development stage. Organizational culture is described as the shared values and beliefs of employees. Employee concerns are issues that need to be addressed through proper HR management. The paragraph also delves into the concept of justice in the workplace, focusing on distributive, procedural, and interactional justice, and how employees may react to perceived injustices, such as voicing concerns, silence, neglect, exit, or destructive behavior. Additionally, it touches on environmental influences like labor market trends, technology, globalization, and ethics and social responsibility.

05:03

🌐 Changing Demographics in the Labor Force

This paragraph addresses the changing composition of the workforce, noting that it is becoming older and more diverse. By 2020, the youngest baby boomers were expected to be 56 years old, and companies were urged to plan for an aging workforce. The paragraph provides statistics showing the growth of the population aged 55 and older, compared to younger age groups. It also highlights the increasing diversity of the labor force, with projections for women, Hispanics, blacks, and Asians. The paragraph underscores the importance of understanding and embracing demographic diversity for strategic HR management. It mentions the significant increase in the foreign-born population in the United States, with a breakdown of the regions from which immigrants have come. This information is crucial for companies to effectively manage their human resources in a diverse and aging labor market.

Mindmap

Keywords

💡Strategic Management

Strategic management refers to the process of setting organizational goals, developing an action plan to achieve those goals, and allocating resources to carry out the plan. In the context of the video, it is about how to effectively manage employees to achieve organizational success. The script discusses how different practices used in HR activities are tools for managers to accomplish these goals.

💡Organizational Goals

Organizational goals are the objectives that an organization aims to achieve. They are the driving force behind the company's strategy and operations. The script mentions that these goals are accomplished through the management of human resources, highlighting the importance of aligning employee contributions with these goals.

💡Company Characteristics

Company characteristics refer to the distinct features of a company, such as its size and stage of development. The script indicates that these characteristics directly influence how a company manages its employees, suggesting that different stages and sizes require tailored HR strategies.

💡Organizational Culture

Organizational culture encompasses the shared values, beliefs, and practices that shape the work environment and behavior of employees. The script describes it as a set of basic assumptions and values that influence how things are done within a company, affecting employee behavior and HR practices.

💡Employee Concerns

Employee concerns are the issues that employees prioritize and feel need to be addressed by the organization. The script points out that these concerns are critical in HR management, as they influence how employees view their relationship with the organization and their commitment to it.

💡Distributive Justice

Distributive justice is about the perceived fairness of what individuals receive from an organization in exchange for their work. The script explains that employees expect a balanced exchange of compensation and benefits for their efforts, which is a key aspect of their relationship with the company.

💡Procedural Justice

Procedural justice focuses on the fairness of the processes that affect employees, such as decision-making regarding evaluations or pay raises. The script mentions that employees are more likely to accept decisions when they believe the processes are applied consistently and fairly to all.

💡Interactional Justice

Interactional justice pertains to how employees feel they are treated by their managers in daily interactions. The script emphasizes the importance of politeness and respect in these interactions, as it significantly impacts employees' perceptions of fairness and their relationship with the company.

💡Labor Market Trends

Labor market trends refer to the shifts and patterns in the workforce, such as changes in demographics and skill requirements. The script discusses the aging workforce and increasing diversity as significant trends that companies must consider in their strategic HR management.

💡Demographic Diversity

Demographic diversity is the variety of characteristics such as age, gender, ethnicity, and nationality within a workforce. The script highlights the growing diversity in the labor force, noting the increasing percentage of women, Hispanics, and other groups, which is crucial for companies to embrace in their HR strategies.

💡Ethics and Social Responsibility

Ethics and social responsibility pertain to the moral principles and obligations a company has towards its stakeholders, including employees. Although not explicitly detailed in the script, these concepts are implied as part of the external environmental influences that can affect HR practices and company reputation.

Highlights

Managing employees strategically involves selecting the right practices, or 'tools,' for HR activities to achieve organizational goals.

Organizational demands such as strategy, company characteristics, and organizational culture influence how employees are managed.

A company's strategy sets objectives and parameters for employee contributions to create a competitive advantage.

Company characteristics, including size and development stage, directly relate to employee management practices.

Organizational culture, defined as the shared values and beliefs of employees, shapes the 'personality' of a company.

Employee concerns highlight the need for proper HR management to address issues important to staff.

Fairness in HR practices is subjective and can vary between employees' perspectives.

Distributive justice involves the balance of exchange between employee effort and compensation received.

Procedural justice is about the fairness of processes affecting employees, such as consistent application of evaluation methods.

Interactional justice reflects employees' feelings about how they are treated in everyday interactions with management.

Employees may respond to perceived injustices through voice, silence, neglect, exit, or counterproductive behavior.

Environmental influences, such as labor market trends, technology, globalization, and ethics, impact HR management.

The US labor force is aging and becoming more diverse, with significant implications for strategic HR management.

By 2022, women are expected to constitute 47% of the labor force, indicating a need for gender diversity in HR strategies.

Hispanics are projected to make up 24% of the US labor force by 2050, highlighting the growing importance of cultural diversity.

The foreign-born population, particularly from Latin America and Asia, is increasing, affecting the demographic makeup of the workforce.

Strategic management of Human Resources must embrace the demographic diversity of the labor force for effective HR practices.