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Intro to Business
Table of Contents
Unit 8 Overview: Human Resources and Labor Relations
8.1 Achieving High Performance through Human Resources Management
8.2 Employee Recruitment
8.3 Employee Selection
8.4 Employee Training and Development
8.5 Performance Planning and Evaluation
8.6 Employee Compensation and Benefits
8.7 The Labor Relations Process
8.8 Managing Grievances and Conflicts
8.9 Legal Environment of Human Resources and Labor Relations
8.10 Trends in Human Resource Management and Labor Relations

💼intro to business review

8.10 Trends in Human Resource Management and Labor Relations

Citation:

Workforce diversity is a powerful tool for gaining a competitive edge. It fosters creativity, attracts top talent, and enhances understanding of diverse customer needs. Companies that embrace diversity can boost their reputation and better serve their markets.

Human resource management is evolving with outsourcing and technology. These trends streamline HR processes, allowing professionals to focus on strategic tasks. Meanwhile, labor unions are adapting to changes in the service sector, facing unique challenges in organizing workers.

Workforce Diversity and Competitive Advantage

Competitive advantage of employee diversity

  • Diversity in the workplace encompasses differences between people including race, gender, age, religion, sexual orientation, and cultural background
    • Diverse perspectives foster increased creativity and innovation (brainstorming sessions)
    • Diversity of thought enables organizations to solve problems more effectively (cross-functional teams)
  • Diversity enhances an organization's ability to attract and retain top talent
    • Inclusive work environments appeal more to job seekers (company culture)
    • Diverse organizations typically have lower employee turnover rates (job satisfaction)
  • Diversity improves an organization's understanding of diverse customer needs and preferences
    • Diverse employees provide insights into different market segments (cultural knowledge)
    • Organizations can better tailor products and services to diverse customer bases (targeted marketing)
  • Diversity boosts an organization's reputation and brand image
    • Consumers increasingly value diversity and inclusion in the companies they support (social responsibility)
    • A diverse workforce helps organizations build trust and credibility with diverse communities (community outreach)
    • Organizational culture plays a crucial role in fostering diversity and inclusion

Outsourcing and technology in HR practices

  • Outsourcing involves contracting external providers for certain HR functions or services
    • Commonly outsourced HR functions include payroll, benefits administration, and recruitment (ADP)
    • Outsourcing allows organizations to focus on core competencies and reduce costs (cost savings)
  • Technology has transformed many aspects of HR management
    • Human Resource Information Systems (HRIS) automate and streamline HR processes (employee self-service portals)
    • Online recruitment platforms and applicant tracking systems improve hiring efficiency (LinkedIn)
    • E-learning and virtual training enable cost-effective employee development (webinars)
  • Outsourcing and technology have shifted HR's role from transactional to strategic
    • HR professionals can focus on higher-level tasks like talent management and organizational development (succession planning)
    • Data analytics tools help HR make data-driven decisions and demonstrate ROI (predictive analytics)
  • Globalization has increased the need for HR to manage diverse, international workforces
  • Labor union membership has been declining in the United States since the 1950s
    • In 2020, only 10.8% of wage and salary workers were union members, down from 20.1% in 1983
    • Factors contributing to declining union membership include globalization, automation, and changing workforce demographics (gig economy)
  • Union membership is higher in the public sector than in the private sector
    • In 2020, 34.8% of public-sector workers were union members, compared to 6.3% of private-sector workers
  • Union membership in the service sector has been growing in recent years
    • Service industries with notable union presence include healthcare, education, and hospitality (nurses' unions)
    • Factors driving union growth in the service sector include low wages, job insecurity, and desire for better working conditions (fight for $15)
  • Unions in the service sector face unique challenges
    • Service jobs are often part-time, temporary, or contract-based, making it harder to organize workers (freelancers)
    • High turnover rates in service industries can hinder union stability and bargaining power (fast food industry)
  • Labor relations and collective bargaining remain important aspects of HR management in unionized workplaces

Employee Well-being and Engagement

  • Work-life balance initiatives are becoming increasingly important for attracting and retaining talent
  • Employee engagement strategies focus on creating a positive work environment and fostering commitment to organizational goals
  • HR departments are implementing programs to support employee well-being, including mental health resources and flexible work arrangements

Key Terms to Review (34)

National Labor Relations Board: The National Labor Relations Board is an independent federal agency established in 1935 that enforces US labor law in relation to collective bargaining and unfair labor practices. It oversees the process for employees to choose whether to have unions as their bargaining representative and adjudicates disputes between employers, employees, and unions.
Niche competitive advantage: A niche competitive advantage is when a business focuses on a specific segment of the market, offering unique products or services that meet the particular needs and preferences of that segment better than competitors. This strategy allows the business to dominate a small part of the market, even if larger competitors exist in the industry as a whole.
Outsourcing: Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees and staff. It is often pursued to reduce costs, access specialized expertise, or free internal resources for other purposes.
Collective bargaining: Collective bargaining is the process through which employers and a group of employees negotiate terms and conditions of employment, such as wages, hours, and workplace policies. It serves as a way for workers to use their collective power to ensure fair treatment and compensation.
Succession planning: Succession planning is a strategic process in businesses for identifying and developing new leaders who can replace old leaders when they leave, retire or pass away. It ensures that businesses continue to operate efficiently without interruption by having a plan for leadership transitions.
Labor union: A labor union is an organized group of workers who unite to make decisions about the conditions of their work. They seek to improve wages, hours, benefits, and working conditions through collective bargaining with employers.
Competitive Advantage: Competitive advantage refers to the unique capabilities, resources, or strategies that allow a business to outperform its competitors and maintain a favorable market position. It is the edge a company has over others in the same industry, enabling it to generate greater sales, profits, and customer loyalty.
Globalization: Globalization refers to the increasing interconnectedness and interdependence of economies, societies, and cultures across the world. It involves the integration of international trade, investment, information technology, and labor markets, leading to a more global economy and shared cultural experiences.
Outsourcing: Outsourcing is the practice of contracting work to an external provider or third-party vendor, rather than performing the work internally within an organization. This strategic business decision allows companies to focus on their core competencies while leveraging the specialized expertise and resources of external partners across various functions and industries.
Organizational Culture: Organizational culture refers to the shared values, beliefs, attitudes, and behaviors that characterize the unique environment within an organization. It shapes how members of the organization interact with each other and with external stakeholders, and it influences the way decisions are made and work is carried out.
Work-Life Balance: Work-life balance refers to the equilibrium an individual maintains between the time and energy devoted to professional responsibilities and personal/family commitments. It is a state of being where one is able to effectively manage the demands of their job alongside the needs and interests of their private life.
Gig Economy: The gig economy refers to the growing trend of short-term, on-demand, or freelance work arrangements, where individuals provide services or complete tasks for companies or clients on an as-needed basis, rather than being employed in traditional full-time or part-time roles. This shift in the labor market has significant implications for business ownership, entrepreneurship, and human resource management.
Cross-Functional Teams: Cross-functional teams are groups of individuals with diverse skills and expertise from different departments or functional areas within an organization, who work collaboratively to achieve a common goal. These teams bring together a variety of perspectives and knowledge to tackle complex problems or projects that require a multidisciplinary approach.
Applicant Tracking Systems: Applicant Tracking Systems (ATS) are software applications used by organizations to manage the recruitment and hiring process. They serve as a centralized platform for collecting, organizing, and evaluating job applications, streamlining the process of identifying and selecting qualified candidates.
Labor Relations: Labor relations refers to the relationship between employers and employees, particularly as it pertains to collective bargaining, contract negotiations, and the resolution of workplace disputes. It is a critical aspect of human resource management that aims to foster a productive and harmonious work environment.
Succession Planning: Succession planning is the process of identifying and developing internal employees with the potential to fill key leadership positions in an organization. It ensures the continued effective performance of an organization by making provisions for the replacement of key people over time.
Talent Management: Talent management is the process of attracting, developing, and retaining skilled and high-performing individuals within an organization. It is a strategic approach to ensuring that a company has the right people, with the right skills, in the right roles, to achieve its business objectives.
E-Learning: e-Learning refers to the use of electronic technologies and digital media for teaching and learning. It encompasses a wide range of online educational tools and platforms that enable remote, technology-mediated instruction and training.
Workforce Diversity: Workforce diversity refers to the range of differences among employees within an organization, including but not limited to age, gender, race, ethnicity, physical abilities, religious beliefs, sexual orientation, and socioeconomic backgrounds. It is a key consideration in the context of human resource management and labor relations.
Human Resource Information Systems: Human Resource Information Systems (HRIS) are integrated software solutions that help organizations manage and automate various human resource functions. HRIS are designed to streamline HR processes, improve data management, and support decision-making in the areas of human resource management and labor relations.
Predictive Analytics: Predictive analytics is the use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. It involves analyzing current and historical facts to make predictions about future events, trends, and behaviors. Predictive analytics has applications across various business functions, including human resource management, product development, information systems, and accounting, allowing organizations to make more informed decisions and gain a competitive advantage.
Job Satisfaction: Job satisfaction refers to an individual's overall contentment and positive emotional state derived from their work experience and the fulfillment of their professional needs and expectations. It is a critical factor that influences employee motivation, productivity, and retention within an organization, and is closely linked to various aspects of human resource management, labor relations, and interpersonal skills development.
Labor Union: A labor union is an organization of workers who have come together to collectively bargain with their employer for better wages, benefits, and working conditions. Labor unions play a crucial role in managing grievances, navigating the legal environment of human resources and labor relations, and addressing emerging trends in the workforce.
Private Sector: The private sector refers to the part of the economy that is owned and operated by private individuals or organizations, rather than the government. It encompasses businesses, companies, and industries that are not owned or controlled by the public sector.
Employee Engagement: Employee engagement refers to the level of emotional commitment, motivation, and dedication an employee has towards their work and the organization they are a part of. It encompasses the employee's sense of purpose, job satisfaction, and willingness to go above and beyond their job responsibilities to contribute to the company's success.
Collective Bargaining: Collective bargaining is the process by which workers, through their unions, negotiate with employers to determine the conditions of employment, such as wages, benefits, hours, and working conditions. It is a fundamental right that allows employees to have a voice in decisions that affect their work lives.
Targeted Marketing: Targeted marketing is a strategic approach in which businesses focus their marketing efforts on specific, well-defined segments of the population that are most likely to be interested in their products or services. It involves identifying and understanding the unique needs, preferences, and behaviors of target audiences to create tailored marketing messages and campaigns that resonate with them effectively.
Employee Diversity: Employee diversity refers to the range of unique individual characteristics and experiences present within a workforce. It encompasses factors such as age, gender, race, ethnicity, cultural background, physical abilities, sexual orientation, and other attributes that make each employee distinct.
Social Responsibility: Social responsibility is the ethical framework in which businesses and organizations operate to create a positive impact on society, the environment, and their stakeholders. It involves integrating sustainable practices, philanthropy, and a commitment to the greater good into the core of an organization's mission and operations.
Public sector: The public sector refers to the part of the economy that is controlled and operated by government entities. It encompasses a wide range of services and activities aimed at providing essential services to citizens, including education, healthcare, public safety, and infrastructure. The public sector is crucial for maintaining social welfare and ensuring that basic needs are met for all members of society.
Nurses' unions: Nurses' unions are organizations formed by registered nurses to advocate for their rights, working conditions, and professional interests. These unions aim to improve wages, benefits, and workplace safety for nurses, while also providing a collective voice in negotiations with healthcare employers. As the healthcare industry evolves, nurses' unions play a critical role in shaping labor relations and human resource management practices within the sector.
Employee turnover: Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. It is a crucial metric for organizations as high turnover can indicate dissatisfaction among workers, leading to increased costs for recruitment and training, as well as decreased productivity and morale within the workplace.
Community outreach: Community outreach refers to the efforts made by organizations, businesses, or individuals to engage and connect with local communities to provide support, resources, and services. This practice is vital in fostering relationships, understanding community needs, and addressing social issues, often leading to improved public perception and increased collaboration with stakeholders.
Fight for $15: The fight for $15 is a labor movement advocating for a minimum wage of $15 per hour for all workers in the United States. This movement highlights issues of economic inequality, workers' rights, and the cost of living, pushing for changes in labor policies to support low-wage workers and improve their standard of living.