لخّصلي

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نتيجة التلخيص (50%)

An organization consists of people with formally assigned roles who work together to achieve the organization's goals.Economic trends will undoubtedly turn positive again, perhaps even as you read these pages.These include:

  • Conducting job analyses (determining the nature of each employee's job) * Planning labor needs and recruiting job candidates
  • Selecting job candidates
  • Orienting and training new employees
  • Managing wages and salaries (compensating employees)
  • Providing incentives and benefits
  • Appraising performance
  • Communicating (interviewing, counseling, disciplining)
  • Training and developing managers
  • Building employee commitment And what a manager should know about:
  • Equal opportunity and affirmative action
  • Employee health and safety
  • Handling grievances and labor relations 6

Why Is Human Resource Management Important to All Managers?Seeking the collaboration that s often missing when one works alone, co-working sites are springing up. These offer freelance workers and consultants office space and access to office equipment (and of course an opportunity to interact with other independent workers) for fees of perhaps $200 or $300 per month.43 WORKERS FROM ABROAD 20

With retirements triggering projected workforce shortfalls, many employers are hiring foreign workers for U.S. jobs.As the U.S. governments Occupational Outlook Quarterly put it, knowledge-intensive high-tech manufacturing in such industries as aerospace, computers, telecommunications, home electronics, pharmaceuticals, and medical instruments is replacing factory jobs in steel, auto, rubber, and textiles.One survey found that 41% of surveyed employers are bringing retirees back into the workforce, 34% are conducting studies to determine projected retirement rates in the organization, and 31% are offering employment options designed to attract and retain semiretired workers.For example, no manager wants to:

  • Hire the wrong person for the job
  • Experience high turnover
  • Have your people not doing their best
  • Waste time with useless interviews
  • Have your company taken to court because of your discriminatory actions
  • Have your company cited under federal occupational safety laws for unsafe practices
  • Have some employees think their salaries are unfair relative to others in the organization
  • Allow a lack of training to undermine your departments effectiveness
  • Commit any unfair labor practices Carefully studying this book will help you avoid mistakes like these.Reasons range from rising shipping and labor costs abroad to occasional poor quality goods and intellectual property theft abroad.)18 For business owners, globalization means (potentially) millions of new consumers, but also new and powerful global competitors at home.About 80% of those in one survey worked their way up within HR.6 About 17% of these HR executives had earned the Human Resource Certification Institute s Senior Professional in Human Resources (SPHR) designation, and 13% were certified Professionals in Human Resources (PHR).For example, in the next few years, many employers plan to offshore even highly skilled jobs such as sales managers, general managers and HR managers.17 (On the other hand, what USA Today calls A small but growing band of U.S. manufacturers including giants such as General Electric, NCR, and Caterpillar are actually reshoring jobs bringing them back to the United States.After General Motors emerged from bankruptcy a few years ago, it replaced its human resource director with Mary Barra, GM s vice president for global manufacturing engineering, an executive with no human resource management experience.Investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports.* The transactional HR group uses centralized call centers and outsourcing arrangements (such as with benefits advisors) to provide support for day-to-day transactional activities (such as changing benefits plans and employee assistance and counseling).When IBM sold its PC division to the Chinese firm Lenovo, it did so partly to cement firmer ties with the booming China market.In the United States, labor force growth is not expected to keep pace with job growth, with an estimated shortfall of about 14 million collegeeducated workers by 2020.36 One study of 35 large global companies senior human resource officers said talent management in particular, the acquisition, development, and retention of talent to fill the companies employment needs ranked as their top concern.Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating subordinates work.* The centers of expertise are like specialized HR consulting firms within the company for instance, they provide specialized assistance in areas such as organizational change.Globalization and Competition Trends Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad.Examples surround us. Toyota produces the Camry in Kentucky, while Dell produces PCs in China.Governments dropped cross-border taxes or tariffs, formed economic free trade areas such as NAFTA, and took other steps to encourage the free flow of trade among countries.The accompanying HR as a Profit Center feature illustrates how human resource management methods can boost profitability by building and capitalizing on such employee skills.19

RETIREES Many human resource professionals call the aging workforce the biggest demographic trend affecting employers.Determining what type of people you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counseling employees; compensating employees.Remember that you can do everything else right as a manager lay brilliant plans, draw clear organization charts, set up world-class 7

assembly lines, and use sophisticated accounting controls but still fail, by hiring the wrong people or by not motivating subordinates.On the other hand, many managers presidents, generals, governors, supervisors have been successful even with inadequate plans, organizations, or controls.For example, Pearson Corporation (which publishes this book) recently promoted the head of 8

one of its publishing divisions to chief human resource executive at its corporate headquarters.Reasons given include the fact that these people may give the firms HR efforts a more strategic emphasis, and the possibility that they re sometimes better equipped to integrate the firm s human resource efforts with the rest of the business.Human Resource Manager s Duties 11

In providing this specialized assistance, the human resource manager carries out three distinct functions: 1.Here he or she ensures that line managers are implementing the firm s human resource policies and practices (for example, adhering to its sexual harassment policies).Other trends shaping human resource management include globalization, deregulation, changes in demographics and the nature of work, and economic challenges.Today, as management guru Peter Drucker predicted years ago, the center of gravity in employment is moving fast from manual and clerical workers to knowledge workers.Referring to them as the most praised generation, the Wall Street Journal explains how Lands End and Bank of America are teaching their supervisors to complement these new employees with prize packages and public appreciation.40 But, as the first generation raised on cell phones and e-mail, their capacity for using information technology will also make them the most high-performing.Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling.Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.HR assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees.Although human resource managers generally can t wield line authority (outside their departments), they are likely to exert implied authority.For example, some organize their HR services around four groups: transactional, corporate, embedded, and centers of expertise.In one survey, about 75% of respondents said their firms were providing transactional, administrative human resource services through such arrangements.Free trade areas agreements that reduce tariffs and barriers among trading partners further encourage international trade.Thus, some apparel manufacturers design and cut fabrics in Miami, and then assemble the actual products in Central America, where labor costs are relatively low.As one expert puts it, The bottom line is that the growing integration of the world economy into a single, huge marketplace is increasing the intensity of competition in a wide range of manufacturing and service industries.Technological Trends Everyone knows that technology changed almost everything we do. We use smartphones and iPads to communicate with the office, and to plan trips, manage money, and look for local eateries.The percentages of younger workers will fall, while those over 55 of age will leap from 12.4% of the workforce in 1998 to 23.9% in 2018.35 At the same time, demographic trends are making finding and hiring employees more challenging.For one thing, says one expert, they have been pampered, nurtured, and programmed with a slew of activities since they were toddlers, meaning they are both high-performance and high-maintenance.For example, professional online Web sites such as LinkedIn (www.linkedin.com) enable free agent professionals to promote their services.The country s H-1B visa program allows U.S. employers to recruit skilled foreign professionals to work in the United States when they can t find qualified U.S. workers.After what the world went through starting in 2007-2008, it's doubtful that the deregulation, leveraging, and globalization that drove economic growth for the previous 50 years will continue unabated.I do know of industries whose growth has been partly stopped or hampered because they can t maintain an efficient and enthusiastic labor force, and I think this will hold true even more in the future.One survey found that about one-fourth of large U.S. businesses appointed managers with no human resource management experience as their top human resource executives.The Society for Human Resource Management (SHRM) offers a brochure describing alternative career paths within human resource management.Line and Staff Aspects of Human Resource Management All managers are, in a sense, human resource managers, because they all get involved in recruiting, interviewing, selecting, and training their employees.Staff managers generally run departments that are advisory or supportive, like purchasing, and human resource 10

management.They assist and advise line managers in areas like recruiting, hiring, and compensation.It helps line managers comply with equal employment and occupational safety laws, and plays an important role in handling grievances and labor relations.It carries out aninnovator role, by providing up-to-date information on current trends and new methods for better utilizing the company s employees (or human resources ).For a very large employer, an organization chart would be typical, containing a full complement of specialists for each HR function.13

  • The corporate HR group focuses on assisting top management in top level big picture issues such as developing and explaining the personnel aspects of the company s long-term strategic plan.* The embedded HR unit assigns HR generalists (also known as relationship managers or HR business partners ) directly to departments like sales and production.For example, the total sum of U.S. imports and exports rose from $47 billion in 15

1960, to $562 billion in 1980, to about $4.1 trillion in 2010.19 Economic and political philosophies drove this boom.Facebookrecruiting is one example.21 According to Facebook s Facebookrecruiting site, employers start the process by installing the Careers Tab on their Facebook page.Once installed, companies have a seamless way to recruit and promote job listings from directly within Facebook.Then, after creating a job listing, the employer can advertise its job link using Facebook Advertisements.Today, Chad and his team spend much of their time 16

keying commands into computerized machines that create precision parts for products, including water pumps.Furthermore, higher productivity enables manufacturers to produce more with fewer workers.Just-in-time manufacturing techniques link daily manufacturing schedules more precisely to customer demand, squeezing waste out of the system and reducing inventory needs.As manufacturers integrate Internetbased customer ordering with just-in-time manufacturing, scheduling becomes more precise.For example, when a customer orders a Dell computer, the same Internet message that informs Dell s assembly line to produce the order also signals the screen and keyboard manufacturers to prepare for UPS to pick up their parts.The net effect is that manufacturers have been squeezing slack and inefficiencies out of production, enabling companies to produce more products with fewer employees.Economic Challenges and Trends All these trends are occurring in a context of economic upheaval.The challenging times mean that for the foreseeable future and even well after things turn positive employers will have to 21

be more frugal and creative in managing their human resources than perhaps they've been in the past.Establishing goals and standards; developing rules and procedures; developing plans and forecasting.The topics we'll discuss should therefore provide you with the concepts and techniques you need to perform the people or personnel aspects of your management job.IMPROVE PROFITS AND PERFORMANCE Similarly, effective human resource management can help ensure that you get results through people.They were successful because they had the knack of hiring the right people for the right jobs and motivating, appraising, and developing them.Indeed, we'll see that because of global competition, technological advances, and the changing nature of work, that president s statement has never been truer than it is today.In popular usage, people tend to associate line managers with managing departments (like sales or production) that are crucial for the company s survival.For example, one major company outlines its line supervisors responsibilities for effective human resource management under these general headings: 1.With global competition, more manufacturing jobs have shifted to low-wage countries.* Organizing.2.3.4.2.3.1.2.3.5.2.3.4.5.6.


النص الأصلي

An organization consists of people with formally assigned roles who work together to achieve the organization's goals. A manager is the person responsible for accomplishing the organization's goals, who does so by managing the efforts of the organization's people. Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.
Some of the specific activities involved in each function include:



  • Planning. Establishing goals and standards; developing rules and procedures; developing plans and forecasting.

  • Organizing. Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating subordinates work.

  • Staffing. Determining what type of people you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counseling employees; compensating employees.

  • Leading. Getting others to get the job done; maintaining morale; motivating subordinates.

  • Controlling. Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action, as needed.
    5


In this book, we are going to focus on one of these functions the staffing, personnel management, or human resource management (HRM) function. Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. The topics we’ll discuss should therefore provide you with the concepts and techniques you need to perform the people or personnel aspects of your management job.
These include:



  • Conducting job analyses (determining the nature of each employee’s job) * Planning labor needs and recruiting job candidates

  • Selecting job candidates

  • Orienting and training new employees

  • Managing wages and salaries (compensating employees)

  • Providing incentives and benefits

  • Appraising performance

  • Communicating (interviewing, counseling, disciplining)

  • Training and developing managers

  • Building employee commitment
    And what a manager should know about:

  • Equal opportunity and affirmative action

  • Employee health and safety

  • Handling grievances and labor relations
    6


Why Is Human Resource Management Important to All Managers?
These concepts and techniques important to all managers for several reasons:



  1. AVOID PERSONNEL MISTAKES
    First, having a command of this knowledge will help you avoid the sorts of personnel mistakes you don t want to make while managing. For example, no manager wants to:



  • Hire the wrong person for the job

  • Experience high turnover

  • Have your people not doing their best

  • Waste time with useless interviews

  • Have your company taken to court because of your discriminatory actions

  • Have your company cited under federal occupational safety laws for unsafe practices

  • Have some employees think their salaries are unfair relative to others in the organization

  • Allow a lack of training to undermine your departments effectiveness

  • Commit any unfair labor practices Carefully studying this book will help you avoid mistakes like these.



  1. IMPROVE PROFITS AND PERFORMANCE
    Similarly, effective human resource management can help ensure that you get results through people. Remember that you can do everything else right as a manager lay brilliant plans, draw clear organization charts, set up world-class
    7


assembly lines, and use sophisticated accounting controls but still fail, by hiring the wrong people or by not motivating subordinates. On the other hand, many managers presidents, generals, governors, supervisors have been successful even with inadequate plans, organizations, or controls. They were successful because they had the knack of hiring the right people for the right jobs and motivating, appraising, and developing them. Remember as you read this book that getting results is the bottom line of managing, and that, as a manager, you will have to get those results through people. As one company president summed up:
For many years, it has been said that capital is the bottleneck for a developing industry. I don t think this any longer holds true. I think its the work force and the company s inability to recruit and maintain a good work force that does constitute the bottleneck for production. I don t know of any major project backed by good ideas, vigor, and enthusiasm that has been stopped by a shortage of cash. I do know of industries whose growth has been partly stopped or hampered because they can t maintain an efficient and enthusiastic labor force, and I think this will hold true even more in the future.
Indeed, we’ll see that because of global competition, technological advances, and the changing nature of work, that president s statement has never been truer than it is today.
3. YOU TOO MAY SPEND SOME TIME AS AN HR MANAGER
Here is a third reason to be familiar with this book s contents. You may well make a planned (or unplanned) stopover as a human resource manager. For example, Pearson Corporation (which publishes this book) recently promoted the head of
8


one of its publishing divisions to chief human resource executive at its corporate headquarters. After General Motors emerged from bankruptcy a few years ago, it replaced its human resource director with Mary Barra, GM s vice president for global manufacturing engineering, an executive with no human resource management experience.
One survey found that about one-fourth of large U.S. businesses appointed managers with no human resource management experience as their top human resource executives. Reasons given include the fact that these people may give the firms HR efforts a more strategic emphasis, and the possibility that they re sometimes better equipped to integrate the firm s human resource efforts with the rest of the business.
However, most top human resource executives do have prior human resource experience. About 80% of those in one survey worked their way up within HR.6 About 17% of these HR executives had earned the Human Resource Certification Institute s Senior Professional in Human Resources (SPHR) designation, and 13% were certified Professionals in Human Resources (PHR). The Society for Human Resource Management (SHRM) offers a brochure describing alternative career paths within human resource management.
4. HR FOR ENTREPRENEURS
Finally, another reason to study this book is that you might end up as your own human resource manager. More than half the people working in the United States about 68 million out of 118 million work for small firms. Small businesses as a group also account for most of the 600,000 or so new businesses created every year. Statistically speaking, therefore, most people graduating from college in the next few years either will work for small businesses or will create new small businesses of their own. Especially if you are managing your own small firm with
9


no human resource manager, you ll have to understand the nuts and bolts of human resource management.
Line and Staff Aspects of Human Resource Management
All managers are, in a sense, human resource managers, because they all get involved in recruiting, interviewing, selecting, and training their employees. Yet most firms also have human resource departments with their own top managers. How do the duties of this human resource manager and department relate to the human resource duties of sales and production and other managers? Answering this requires a short definition of line versus staff authority.
Authority is the right to make decisions, to direct the work of others, and to give orders. Managers usually distinguish between line authority and staff authority. In organizations, having what managers call line authority traditionally gives managers the right to issue orders to other managers or employees. Line authority therefore creates a superior (order giver) subordinate (order receiver) relationship. When the vice president of sales tells her sales director to get the sales presentation ready by Tuesday, she is exercising her line authority. Staff authority gives a manager the right to advise other managers or employees. It creates an advisory relationship. When the human resource manager suggests that the plant manager use a particular selection test, he or she is exercising staff authority.
On the organization chart, managers with line authority are line managers. Those with staff (advisory) authority are staff managers. In popular usage, people tend to associate line managers with managing departments (like sales or production) that are crucial for the company s survival. Staff managers generally run departments that are advisory or supportive, like purchasing, and human resource
10


management. Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation.
Line Managers Human Resource Duties
However, line managers still have many human resource duties. This is because the direct handling of people has always been part of every line manager s duties, from president down to first-line supervisors. For example, one major company outlines its line supervisors responsibilities for effective human resource management under these general headings:



  1. Placing the right person in the right job

  2. Starting new employees in the organization (orientation)

  3. Training employees for jobs that are new to them

  4. Improving the job performance of each person

  5. Gaining cooperation and developing smooth working relationships

  6. Interpreting the company s policies and procedures

  7. Controlling labor costs

  8. Developing the abilities of each person

  9. Creating and maintaining department morale

  10. Protecting employees health and physical condition In small organizations, line managers may carry out all these personnel tasks unassisted.
    But as the organization grows, they need the assistance, specialized knowledge, and advice of a separate human resource staff. The human resource department provides this specialized assistance.
    Human Resource Manager s Duties
    11


In providing this specialized assistance, the human resource manager carries out three distinct functions:



  1. A line function. The human resource manager directs the activities of the people in his or her own department, and perhaps in related areas (like the plant cafeteria).

  2. A coordinative function. The human resource manager also coordinates personnel activities, a duty often referred to as functional authority (or functional control). Here he or she ensures that line managers are implementing the firm s human resource policies and practices (for example, adhering to its sexual harassment policies).

  3. Staff (assist and advise) functions. Assisting and advising line managers is the heart of the human resource manager s job. He or she advises the CEO so the CEO can better understand the personnel aspects of the company s strategic options. HR assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. It administers the various benefit programs (health and accident insurance, retirement, vacation, and so on). It helps line managers comply with equal employment and occupational safety laws, and plays an important role in handling grievances and labor relations. It carries out aninnovator role, by providing up-to-date information on current trends and new methods for better utilizing the company s employees (or human resources ). It plays an employee advocacy role, by representing the interests of employees within the framework of its primary obligation to senior management. Although human resource managers generally can t wield line authority (outside their departments), they are likely to exert implied authority. This is because line managers know the human resource manager has top managements ear in areas like testing and affirmative action.
    12


The size of the human resource department reflects the size of the employer. For a very large employer, an organization chart would be typical, containing a full complement of specialists for each HR function. Examples of human resource management specialties include:




  • Recruiters. Search for qualified job applicants.




  • Equal employment opportunity (EEO) coordinators. Investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports.




  • Job analysts. Collect and examine information about jobs to prepare job descriptions.




  • Compensation managers. Develop compensation plans and handle the employee benefits program.




  • Training specialists. Plan, organize, and direct training activities.




  • Labor relations specialists. Advise management on all aspects of union management relations.
    New Approaches to Organizing HR Employers are also offering human resource services in new ways. For example, some organize their HR services around four groups: transactional, corporate, embedded, and centers of expertise.




  • The transactional HR group uses centralized call centers and outsourcing arrangements (such as with benefits advisors) to provide support for day-to-day transactional activities (such as changing benefits plans and employee assistance and counseling). In one survey, about 75% of respondents said their firms were providing transactional, administrative human resource services through such arrangements.
    13




  • The corporate HR group focuses on assisting top management in top level big picture issues such as developing and explaining the personnel aspects of the company s long-term strategic plan.




  • The embedded HR unit assigns HR generalists (also known as relationship managers or HR business partners ) directly to departments like sales and production. They provide the localized human resource management assistance the departments need.




  • The centers of expertise are like specialized HR consulting firms within the company for instance, they provide specialized assistance in areas such as organizational change.
    THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT
    What human resource managers do and how they do it is changing. Some of the reasons for these changes are obvious. One is technology. For example, employers now use their intranets to let employees change their own benefits plans, something they obviously couldn t do years ago. Other trends shaping human resource management include globalization, deregulation, changes in demographics and the nature of work, and economic challenges. Let s look at these trends next.





  1. Globalization and Competition Trends
    Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Examples surround us. Toyota produces the Camry in Kentucky, while Dell produces PCs in China. Free trade areas agreements that reduce tariffs and barriers among trading partners further encourage international trade. NAFTA (the North American Free Trade Agreement) and the EU (European Union) are examples. Companies expand abroad for several reasons. Sales expansion is one. Walmart is opening stores in
    14


South America. Dell, knowing that China will soon be the world s biggest market for PCs, is aggressively selling there. Firms go abroad for other reasons. Some manufacturers seek new foreign products and services to sell, and to cut labor costs. Thus, some apparel manufacturers design and cut fabrics in Miami, and then assemble the actual products in Central America, where labor costs are relatively low. Sometimes, it s the prospect of forming partnerships that drives firms to do business abroad. When IBM sold its PC division to the Chinese firm Lenovo, it did so partly to cement firmer ties with the booming China market. For businesspeople, globalization means more competition, and more competition means more pressure to be world-class to lower costs, to make employees more productive, and to do things better and less expensively. As one expert puts it, The bottom line is that the growing integration of the world economy into a single, huge marketplace is increasing the intensity of competition in a wide range of manufacturing and service industries. Both workers and companies have to work harder and smarter than they did without globalization. Globalization therefore brings both benefits and threats. For consumers it means lower prices and higher quality on products from computers to cars, but for workers it means the prospect of working harder, and perhaps less secure jobs. Job offshoring having employees abroad do jobs that Americans formerly did illustrates this threat. For example, in the next few years, many employers plan to offshore even highly skilled jobs such as sales managers, general managers and HR managers.17 (On the other hand, what USA Today calls A small but growing band of U.S. manufacturers including giants such as General Electric, NCR, and Caterpillar are actually reshoring jobs bringing them back to the United States. Reasons range from rising shipping and labor costs abroad to occasional poor quality goods and intellectual property theft abroad.)18 For business owners, globalization means (potentially) millions of new consumers, but also new and powerful global competitors at home. For 50 or so years, globalization boomed. For example, the total sum of U.S. imports and exports rose from $47 billion in
15


1960, to $562 billion in 1980, to about $4.1 trillion in 2010.19 Economic and political philosophies drove this boom. Governments dropped cross-border taxes or tariffs, formed economic free trade areas such as NAFTA, and took other steps to encourage the free flow of trade among countries. The fundamental economic rationale was that by doing so, all countries would gain. And indeed, economies around the world, not just in the United States but also in Europe and Asia, did grow rapidly.
2. Technological Trends
Everyone knows that technology changed almost everything we do. We use smartphones and iPads to communicate with the office, and to plan trips, manage money, and look for local eateries. We also increasingly use technology for many human resource management type applications, such as looking for jobs. Facebookrecruiting is one example.21 According to Facebook s Facebookrecruiting site, employers start the process by installing the Careers Tab on their Facebook page. Once installed, companies have a seamless way to recruit and promote job listings from directly within Facebook. Then, after creating a job listing, the employer can advertise its job link using Facebook Advertisements.
3. Trends in the Nature of Work
Technology has also had a huge impact on how people work, and therefore on the skills and training today s workers need.
HIGH-TECH JOBS
For example, skilled machinist Chad Toulouse illustrates the modern blue-collar worker. After an 18-week training course, this former college student works as a team leader in a plant where about 40% of the machines are automated. In older plants, machinists would manually control machines that cut chunks of metal into things like engine parts. Today, Chad and his team spend much of their time
16


keying commands into computerized machines that create precision parts for products, including water pumps. As the U.S. governments Occupational Outlook Quarterly put it, knowledge-intensive high-tech manufacturing in such industries as aerospace, computers, telecommunications, home electronics, pharmaceuticals, and medical instruments is replacing factory jobs in steel, auto, rubber, and textiles.
SERVICE JOBS
Technology is not the only trend driving the change from brawn to brains. Today over two-thirds of the U.S. workforce is producing and delivering services, not products. Between 2004 and 2014, almost all of the 19 million new jobs added in the United States will be in services, not in goodsproducing industries. Several things account for this. With global competition, more manufacturing jobs have shifted to low-wage countries. For example, Levi Strauss, one of the last major clothing manufacturers in the United States, closed the last of its American plants a few years ago. Furthermore, higher productivity enables manufacturers to produce more with fewer workers. Just-in-time manufacturing techniques link daily manufacturing schedules more precisely to customer demand, squeezing waste out of the system and reducing inventory needs. As manufacturers integrate Internetbased customer ordering with just-in-time manufacturing, scheduling becomes more precise. For example, when a customer orders a Dell computer, the same Internet message that informs Dell s assembly line to produce the order also signals the screen and keyboard manufacturers to prepare for UPS to pick up their parts. The net effect is that manufacturers have been squeezing slack and inefficiencies out of production, enabling companies to produce more products with fewer employees. So, in America and much of Europe, manufacturing jobs are down, and service jobs up.
4. KNOWLEDGE WORK AND HUMAN CAPITAL
17


In general, the best jobs that remain require more education and more skills. For example, we saw that automation and just-in-time manufacturing mean that even manufacturing jobs require more reading, math, and communication skills. For employers this means relying more on knowledge workers like Chad Toulouse, and therefore on human capital. Human capital refers to the knowledge, education, training, skills, and expertise of a firm s workers. Today, as management guru Peter Drucker predicted years ago, the center of gravity in employment is moving fast from manual and clerical workers to knowledge workers. Human resource managers now list critical thinking/problem-solving and information technology application as the two skills most likely to increase in importance over the next few years. The accompanying HR as a Profit Center feature illustrates how human resource management methods can boost profitability by building and capitalizing on such employee skills.
5. DEMOGRAPHIC TRENDS
Most importantly, the U.S. workforce is becoming older and more multiethnic. For example, between 1998 and 2018, the percent of the workforce that it classifies as white, non-Hispanic will drop from 83.8% to 79.4%. At the same time, the percent of the workforce that is black will rise from 11.6% to 12.1%, those classified Asian will rise from 4.6% to 5.6%, and those of Hispanic origin will rise from 10.4% to 17.6%. The percentages of younger workers will fall, while those over 55 of age will leap from 12.4% of the workforce in 1998 to 23.9% in 2018.35 At the same time, demographic trends are making finding and hiring employees more challenging. In the United States, labor force growth is not expected to keep pace with job growth, with an estimated shortfall of about 14 million collegeeducated workers by 2020.36 One study of 35 large global companies senior human resource officers said talent management in particular, the acquisition, development, and retention of talent to fill the companies employment needs ranked as their top concern.
18


GENERATION Y Also called Millennials, Gen Y employees are roughly those born 1977 2002. They take the place of the labor force s previous new entrants,
Generation X, those born roughly 1965 1976 (and who themselves were the children of, and followed into the labor force, the Baby Boomers, born just after the Second World War, roughly 1944 1960).
Although every generation obviously has its own labor force entrants, Gen Y employees are different. For one thing, says one expert, they have been pampered, nurtured, and programmed with a slew of activities since they were toddlers, meaning they are both high-performance and high-maintenance. As a result:



  1. They want fair and direct supervisors who are highly engaged in their professional development.

  2. They seek out creative challenges and view colleagues as vast resources from whom to gain knowledge.

  3. They want to make an important impact on Day 1.

  4. They want small goals with tight deadlines so they can build up ownership of tasks.

  5. They aim to work faster and better than other workers.
    Fortune Magazine says that today s Generation Y employees will bring challenges and strengths. It says they may be the most high-maintenance workforce in the history of the world. Referring to them as the most praised generation, the Wall Street Journal explains how Lands End and Bank of America are teaching their supervisors to complement these new employees with prize packages and public appreciation.40 But, as the first generation raised on cell phones and e-mail, their capacity for using information technology will also make them the most high-performing.
    19


RETIREES
Many human resource professionals call the aging workforce the biggest demographic trend affecting employers. The basic problem is that there aren’t enough younger workers to replace the projected number of baby boom era older- worker retirees. Employers are dealing with this challenge in various ways. One survey found that 41% of surveyed employers are bringing retirees back into the workforce, 34% are conducting studies to determine projected retirement rates in the organization, and 31% are offering employment options designed to attract and retain semiretired workers.
NONTRADITIONAL WORKERS
At the same time, there has been a shift to nontraditional workers. Nontraditional workers include those who hold multiple jobs, or who are contingent or part-time workers, or who are working in alternative work arrangements (such as a mother daughter team sharing one clerical job). Today, almost 10% of American workers 13 million people fit this nontraditional workforce category. Of these, about 8 million are independent contractors who work on specific projects and move on once they complete the projects.
Technological trends facilitate such alternative work arrangements. For example, professional online Web sites such as LinkedIn (www.linkedin.com) enable free agent professionals to promote their services. Thanks to technology, people working from remote locations at least once per month rose about 39% from 2006 to 2008 to just over 17 million people. Seeking the collaboration that s often missing when one works alone, co-working sites are springing up. These offer freelance workers and consultants office space and access to office equipment (and of course an opportunity to interact with other independent workers) for fees of perhaps $200 or $300 per month.43
WORKERS FROM ABROAD
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With retirements triggering projected workforce shortfalls, many employers are hiring foreign workers for U.S. jobs. The country s H-1B visa program allows U.S. employers to recruit skilled foreign professionals to work in the United States when they can t find qualified U.S. workers. U.S. employers bring in about 181,000 foreign workers per year under these programs. Particularly with high unemployment, such programs face opposition. For example, one study concluded that many workers brought in under the programs filled jobs that didn t actually demand highly specialized skills, many paying less than $15 an hour.
6. Economic Challenges and Trends
All these trends are occurring in a context of economic upheaval. Gross national product (GNP) a measure of U.S. total output boomed between 2001 and 2008. During this period, home prices leaped as much as 20% per year. Unemployment remained at about 4.7%. Then, around 2007 2008, all these measures seemingly fell off a cliff. GNP fell. Home prices dropped by 20% or more (depending on city). Unemployment nationwide rose to more than 9.1%. Why did all this happen? That is a complicated question, but for one thing, all those years of accumulating excessive debt seems to have run their course. Banks and other financial institutions (such as hedge funds) found themselves with trillions of dollars of worthless loans on their books. Governments stepped in to try to prevent their collapse. Lending dried up. Many businesses and consumers simply stopped buying. The economy tanked. Economic trends will undoubtedly turn positive again, perhaps even as you read these pages. However, they have certainly grabbed employers attention. After what the world went through starting in 2007-2008, it’s doubtful that the deregulation, leveraging, and globalization that drove economic growth for the previous 50 years will continue unabated. That may mean slower growth for many countries, perhaps for years. This means challenging times ahead for employers. The challenging times mean that for the foreseeable future and even well after things turn positive employers will have to
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be more frugal and creative in managing their human resources than perhaps they’ve been in the past.


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