Chapter 03
Transcript of Chapter 03
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Words of wisdom
‘Every generation believes it is living through great change, and our generation is no different . . .’
‘An infectious greed seemed to have gripped much of our business community in the late 1990s.’
‘Until the benefits of globalization are shared more widely, people will continue to rise up against
globalization.’
The Context of Human Resource Management
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The Context of Human Resource Management
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Conceptions of contexts:
An open system – a set of interrelated and interdependent parts configured in a
manner that produces a unified whole.
Work organizations acquire inputs from the environment, transform them and
discharge outputs to the external environment.
The Context of Human Resource Management
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Conceptions of contexts
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Conceptions of contexts
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Globalization
The growing integration of the world’s economies.
Core economic activities are conducted on a global scale.
The communications revolution.
Fundamental political change.
The Economic Context
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Table 3.1 Per capita income growth in selected developed countries, 1960-96
The Economic Context
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Fig 3.3 Growth in domestic product in the EU for the 3rd quarter of 2001 and 2000
The Economic Context
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The Economic Context
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The Economic Context
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Table 3.2 Non-regular forms of employment, selected countries, 1973-93
The Economic Context
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The Economic Context
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Technological change:
Advanced technical change.
Conventional technical change.
Organizational change.
The Technology Context
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The Technology Context
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The state:
Is responsible for economic policy that influences labour markets.
Establishes the legal context of employment relations.
Is an employer in its own right.
The Political Context
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State interventions:
Facilitative
Supportive
Directive
Neoliberalist
The Political Context
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The Political Context
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Changing demographic determine the size and composition of the workforce.
Different attitudes and values relating to work, parenthood, leisure, ‘fairness’,
organizational loyalty.
The Social Context
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The Social Context
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The Social Context
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What are the implications of economic and technological changes for the recipients of
HRM?
Depends on whether you are a ‘core’ (see empowerment and high rewards) or
‘peripheral’ (see employment insecurity) employee.
Employment standards tend towards worst rather than best practice.
Change and HRM
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