CHAPTER 2:

CHALLENGES IN
STAFFING HUMAN
RESOURCE
MANAGEMENT
Copyright 2005 South-Western. All rights reserved.

Major
Major Factors
Factors Affecting
Affecting HRM
HRM

Technological
Advancement

Demographics
and Diversity

Strategic
HRM

Globalization

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Exhibit
Exhibit2-1
2-1

Issues
Issues for
for Integrating
Integrating New
New
Technologies
Technologies

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Exhibit
Exhibit2-2
2-2

Impact
Impact of
of Technology
Technology on
on
Organizations
Organizations

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Technology
Technology Challenges
Challenges for
for HRM
HRM

Telecommuting
Telecommuting
Employee
Employee surveillance
surveillance &
& monitoring
monitoring
e-HR
e-HR
Ethical
Ethical behavior
behavior

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Telecommuting
Telecommuting
Dramatic
Dramatic growth
growth in
in
number
number of
ofAmericans
Americans
working
working from
fromhome
home

3.4
3.4million
millioninin1990
1990
19.6
19.6million
millionby
bybeginning
beginning
ofof2000
2000

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Issues
Issuesaffecting
affectingsuccess
successof
of
telecommuting
telecommutingprograms
programs

Clear
Clearperformance
performance
measurement
measurementsystem
systemisiskey
key
Deciding
Decidingwhich
whichemployees
employees
will
willbe
beoffered
offeredparticipation
participation
Equipment
Equipmentexpense
expense
Some
Somemanagers
managers
uncomfortable
uncomfortablehaving
having
direct
directreports
reportsaway
awayfrom
from
office
office

16

Employee
Employee Surveillance
Surveillance and
and
Monitoring
Monitoring
More
More than
than 80%
80% of
of large
large employers
employers utilize
utilize
monitoring
monitoring technology
technology
Internet
Internetusage
usage
E-mails
E-mails
Computer
Computerfiles
files
Voice-mail
Voice-mail
Telephone
Telephoneusage
usage

Under
Under Electronic
Electronic Communications
Communications Privacy
PrivacyAct
Act
(ECPA)
(ECPA) employees
employees have
have only
only limited
limited privacy
privacy
rights
rights
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17

E-HR
E-HR
Opportunity
Opportunity to
to deliver
deliver transactional
transactional types
types
of
of services
services online
online
Payroll
Payroll
Employee
Employeebenefits
benefits
Scheduling
Scheduling
Recruiting
Recruiting
Training
Training
Career
Careerdevelopment
development
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Ethical
Ethical Behavior
Behavior
Majority
Sarbanes-Oxley
Majority of
of jobs
jobs are
are
Sarbanes-OxleyAct
Act of
of
considered
2002
considered to
to be
be atat2002
will
Eliminates
will
Eliminatesdeception
deceptioninin
accounting
accounting&&
Movement
Movement toward
toward
management
managementpractices
practices
greater
protection
for
greater protection for
by
byincreasing
increasing
employees
in
regard
to
employees in regard to
government
governmentoversight
oversight
off-duty
off-duty behavior
behavior
Holds
Holdssenior
seniorexecutives
executives
Ownership
more
moredirectly
directlyresponsible
responsible
Ownership of
of work
work
for
violations
for
violations
Fairness
Fairness of
of
Protects
whistleProtects
whistlenoncompete
clauses
noncompete clauses
blowers
blowers

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Workforce
Workforce Demographic
Demographic Changes:
Changes:
Graying
Graying of
of Workforce
Workforce
Negative
Negative aspects
aspects of
of
older
older workers
workers

Perceived
Perceivedresistance
resistancetoto
change
changeby
byolder
olderworkers.
workers.
Increased
Increasedhealth-care
health-care
costs
costsfor
forsenior
seniorworkers
workers
Blocking
Blockingadvancement
advancement
opportunities
opportunitiesfor
foryounger
younger
workers
workers
Higher
Higherwage
wage&&salary
salary
costs
costsfor
forsenior
seniorworkers
workers

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Positive
Positive aspects
aspects of
of
older
older workers
workers

As
Asproductive
productiveorormore
more
productive
productivethan
thanyounger
younger
workers
workers
Have
Havemore
more
organizational
organizationalloyalty
loyalty
than
thanyounger
youngerworkers
workers
Possess
Possessbroader
broader
industry
industryknowledge
knowledge&&
professional
professionalnetworks
networks
110

Workforce
Workforce Demographic
Demographic Changes
Changes
Baby
Baby Boomers
Boomers (1945
(19451962)
1962)
InInexcess
excesssupply
supplyininmiddle
middlemanagement
managementranks
ranks
HR
HRchallenge
challengeisistotomanage
manageplateaued
plateauedworkers
workers

Baby
Baby Busters
Busters (1963
(1963mid-1970s)
mid-1970s)
Are
Arecareer
careerbottlenecked
bottleneckedby
byBoomers
Boomers
Who
Whohave
haveskills
skillsininhigh
highdemand
demandare
aredoing
doing&&will
willdo
do
well
well

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Workforce
Workforce Demographic
Demographic Changes
Changes
Generation
Generation Xers
Xers (late
(late 1970s
1970searly
early 1980s)
1980s)

Have
Havelife-long
life-longexposure
exposuretototechnology
technology&&constant
constantchange
change
Seek
Seekself-control,
self-control,independence,
independence,personal
personalgrowth,
growth,creativity
creativity
Not
Notfocused
focusedon
onjob
jobsecurity
securityororlong-term
long-termemployment
employment

Generation
Generation Y:
Y: Baby
Baby Boom
BoomEcho
Echo (after
(after 1979)
1979)
High
Highcomfort
comfortlevel
levelwith
withtechnology
technology
Global
Global&&tolerant
tolerantoutlook
outlookon
onlife
life
Highly
Highlyentrepreneurial
entrepreneurial
Shorter
Shorterattention
attentionspan
span
Opting
Optingfor
formore
moretransient
transient&&variable
variableproject
projectwork
work

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Workforce
Workforce Demographic
Demographic Changes
Changes
Sexual
Sexual orientation
orientation

More
Morethan
than200
200Fortune
Fortune500
500employers
employersoffer
offerfull
fullbenefits
benefitsfor
for
domestic
domesticpartners
partners
Sexual
Sexualorientation
orientationissues
issuescan
canimpact
impactbottom
bottomline
line

Disabilities
Disabilities

54
54million
millionAmericans
Americanswith
withdisabilities
disabilities
Often
Oftennot
notincluded
includedinindiversity
diversityinitiatives
initiatives
Many
Manysupervisors
supervisorsdo
donot
notunderstand
understandneeds
needsofofemployees
employees
with
withdisabilities
disabilities
Stereotypes
Stereotypes

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New
New Employee/Workplace
Employee/Workplace Dynamics
Dynamics
Emphasis
Emphasis on
on management
management of
of professionals
professionals
Establishment
Establishmentofofseparate
separatecareer
careertracks
tracks

Technical/Professional,
Technical/Professional,Managerial
Managerial/Administrative
/Administrative

Use
Useofofproject
projectteams
teams

Less
Less employee
employee loyalty,
loyalty, more
more loyal
loyal to
to self
self
Staying
Stayingwith
withemployers
employersfor
forshorter
shorterperiods;
periods;
demanding
demandingmore
moremeaningful
meaningfulwork
work&&involvement
involvementinin
organizational
organizationaldecisions
decisions

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New
New Employee/Workplace
Employee/Workplace Dynamics
Dynamics
Increased
Increased personal
personal &
& family
family dynamic
dynamic
effects
effects
More
Moresingle-parent
single-parentfamilies,
families,dual-career
dual-careercouples,
couples,&&
domestic
domesticpartners
partners

Increased
Increased nontraditional
nontraditional work
work relationships
relationships
Part-time,
Part-time,consulting,
consulting,&&temporary
temporaryemployment
employment
flexibility
flexibility
Outsourcing
Outsourcing&&entrepreneurial
entrepreneurialopportunities
opportunities

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Ethnicity
Ethnicity
By
By 2050
2050

Close
Closetoto50%
50%ofofUS
US
population
populationwill
willbe
be
non-Caucasian
non-Caucasian

By
By 2005
2005

Ethnic
Ethnicminority
minority
share
shareofof workforce
workforce
will
willbe
be28%
28%
Up
Upfrom
from22%
22%inin
1990
1990&&18%
18%inin1980
1980

Copyright 2005 South-

By
By 2025
2025

African-Americans
African-Americanswill
will
represent
represent14%
14%ofofpopulation
population
Up
Upfrom
from12%
12%inin1994
1994
Hispanics
Hispanicswill
willrepresent
represent17%
17%
ofof population
population
Up
Upfrom
from10%
10%inin1994
1994
Asians
Asians&&Pacific
PacificIslanders
Islanders
will
willrepresent
represent8%
8%ofof
population
population
More
Morethan
thandouble
doublefrom
from1994
1994
116

Managing
Managing Workplace
Workplace Diversity
Diversity
Understanding
Understanding&
&
appreciating
appreciatingdiversity
diversity

Critical
Criticaltotoeffectively
effectively
marketing
marketingtotoethnic
ethnic&&minority
minority
groups
groups
Promoted
Promotedby
byhaving
having diverse
diverse
workforce
workforceatatall
all levels
levels
Helps
Helpsensure
ensurehiring
hiring&&
promotion
promotiondecisions
decisionsare
are
unbiased
unbiasedby
byperson
person
differences
differences

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Diversity
Diversitymanagement
management
programs
programsor
orinitiatives
initiatives

Must
Mustbe
beintegrated
integratedwith
with
organizations
organizationsmission
mission&&
objectives
objectives
Help
Helpkey
keydecision
decisionmakers
makers
identify
identifydiversitys
diversitysbenefits
benefitstoto
organization
organization
Make
Makecritical
criticaldecisions
decisionsabout
about
implementing
implementingoptimal
optimal
program/initiative
program/initiativecontingent
contingent
on
onorganization
organization&&its
itspeople,
people,
mission
mission&&culture.
culture.

117

Exhibit
Exhibit2-6
2-6

Individual
Individual Dimensions
Dimensions of
of Diversity
Diversity

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Strategic
Strategic Management
Management of
of Diversity
Diversity

Determine
Determinewhy
whydiversity
diversityisisimportant
important
Articulate
Articulatehow
howdiversity
diversityrelates
relatesto
tomission
mission&
&strategic
strategic
objectives
objectives
Define
Definediversity
diversity&
&determine
determinehow
howinclusive
inclusiveits
itsefforts
effortswill
will
be
be
Make
Makeaadecision
decisionas
asto
towhether
whetherspecial
specialefforts
effortsshould
shouldbe
be
extended
extendedto
toattract
attractdiverse
diverseworkforce
workforce
Assess
Assesshow
howexisting
existingemployees,
employees,customers,
customers,&
&other
other
constituencies
constituenciesfeel
feelabout
aboutdiversity
diversity
Determine
Determinespecific
specifictypes
typesof
ofdiversity
diversityinitiatives
initiativesthat
thatwill
will
be
beundertaken
undertaken
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119

Reading
Reading2.1
2.1

Five
Five Challenges
Challenges to
to Virtual
Virtual Team
Team
Success
Success
Virtual
Virtual teams:
teams:

Groups
Groupsofofpeople
peoplewho
whowork
workinterdependently
interdependentlywith
withshared
shared
purpose
purposeacross
acrossspace,
space,time,
time,&&organization
organizationboundaries
boundaries
using
usingtechnology
technologytotocommunicate
communicate&&collaborate
collaborate

Types
Types of
of virtual
virtual teams
teams

Global
Globalvirtual
virtualteams
teams
Teams
Teamsassigned
assignedtotoaccomplish
accomplishspecific
specificprojects
projects
Cross-functional
Cross-functionalteams
teams

Challenge:
Challenge: Recognize
Recognize obstacles
obstacles confronting
confronting teams
teams
that
that are
are both
both cross-functional
cross-functional &
&virtual
virtual
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Reading
Reading2.1
2.1

Five
Five Challenges
Challenges to
to Virtual
Virtual Team
Team
Success
Success
Building
Building trust
trust within
within virtual
virtual teams
teams
Maximizing
Maximizing process
process gains
gains &
&minimizing
minimizing process
process
losses
losses on
on virtual
virtual teams
teams
Overcoming
Overcoming feelings
feelings of
of isolation
isolation &
&detachment
detachment
associated
associated with
with virtual
virtual teamwork
teamwork
Balancing
Balancing technical
technical &
&interpersonal
interpersonal skills
skills among
among
virtual
virtual team
teammembers
members
Assessment
Assessment &
&recognition
recognition of
of virtual
virtual team
team
performance
performance
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Reading
Reading2.2
2.2

Impact
Impact of
of the
the Sarbanes-Oxley
Sarbanes-Oxley Act
Act
New
New whistleblower
whistleblower protections
protections
No
Nopublic
publiccompany
companymay
maydiscriminate
discriminateagainst
against
employee
employeebecause
becauseofofany
anylawful
lawfulact
act
Retaliation
Retaliationagainst
againstemployee
employeebecause
becauseofofany
anylawful
lawful
act
actdone
donetotoassist
assistaaproceeding
proceedingrelating
relatingtotoalleged
alleged
violation
violationisisprohibited
prohibited
IfIfDOL
DOLdetermines
determinesthat
thatviolation
violationhas
hasoccurred,
occurred,
employer
employermay
maybe
beordered
orderedtotoreinstate
reinstateemployee
employee&&
provide
providecompensatory
compensatorydamages
damages
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Reading
Reading2.2
2.2

Impact
Impact of
of the
the Sarbanes-Oxley
Sarbanes-Oxley Act
Act
The
TheAct
Act dramatically
dramatically affects
affects officer
officer compensation
compensation
programs
programs
Executive
Executivebonuses
bonusessubject
subjecttotoforfeiture
forfeitureunder
underAct
Act
Personal
Personalloans
loanstotoexecutives
executivesare
areregulated
regulatedby
byAct
Act
SEC
SECcan
canremove
removeorortemporarily
temporarilyfreeze
freezepayments
paymentstoto
executives
executives&&directors
directors
Public
Publicaccounting
accountingfirms
firmsare
areprecluded
precludedfrom
fromauditing
auditing
company
companyififhighly
highlyplaced
placedexecutive
executivewas
wasemployed
employedby
by
auditing
auditingfirm
firm&&participated
participatedinincompanys
companysprior
prioryears
yearsaudit
audit
Attorneys
Attorneyshave
havenew
newrules
rulesofofprofessional
professionalresponsibility
responsibility

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Reading
Reading2.2
2.2

Impact
Impact of
of the
the Sarbanes-Oxley
Sarbanes-Oxley Act
Act
The
TheAct
Act requires
requires new
new employment
employment policies
policies &
&
procedures
procedures

Procedures
Proceduresfor
forreceiving
receiving&&handling
handlingcomplaints
complaintsofofcorporate
corporate
fraud
fraudhave
havetotobe
beestablished
established
Compensation
Compensationprogram
programbonus
bonuspolicies
policies&&stock
stockoption
optionplans
plans
have
havetototake
takeaccount
accountofofnew
newforfeiture
forfeitureprovisions
provisions
Hiring
Hiring&&recruitment
recruitmentstrategies
strategies&&background
backgroundchecks
checkswill
will
have
havetotobe
berevamped
revampedtotoavoid
avoidhiring
hiringexecutives
executiveswhose
whose
employment
employmentisisprecluded
precludedby
bythe
theAct
Act
Training
Trainingrequired
requiredtotoproperly
properlyimplement
implementall
allActs
Actsmandates
mandates

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Reading
Reading2.3
2.3

Employee
Employee Satisfaction
Satisfaction
Potential
Potentialimpact
impactof
of
demographic
demographicchanges
changes

Aging
Agingpopulation
populationincreases
increases
emphasis
emphasison
onhealth
healthcare
care
benefits,
benefits,retirement
retirementplanning,
planning,
&&job
jobsecurity
security
Women
Womenare
areattaining
attaininghigher
higher
proportion
proportionofofprofessional
professional
qualifications
qualifications
Future
Futureskills
skillsshortages
shortagesmay
may
cause
causeindustrialized
industrializedcountries
countries
totocompete
competefor
forskilled
skilled
immigrant
immigrantlabor
labor

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Industrial
Industrialbase
baseshifting
shiftingto
to
service
service&
&health
healthcare
care
sectors
sectors
Wider
Widerpolitical
political&
&
economic
economictrends
trendsaffecting
affecting
job
jobsatisfaction
satisfaction

Health
Healthcare
carecosts
costs
Job
Jobsecurity
security
Pensions
Pensions

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Reading
Reading2.3
2.3

Employee
Employee Satisfaction
Satisfaction
Two
Two groups
groups of
of issues
issues
Those
Those depending
depending on
on financial
financial position
position ofof
company
company
Benefits
Benefits
Wages
Wages
Job
Jobsecurity
security

Those
Thoseless
lesscostly
costlytotoimplement
implementthrough
throughchanging
changing
practices,
practices,processes,
processes,&&culture
culture

Communication
Communicationwith
withmanagement
management
Work/life
Work/lifebalance
balance
Employees
Employeesrelationship
relationshipwith
withimmediate
immediatesupervisor
supervisor
Career
Careerdevelopment
development

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