UNITED STATES OF AMERICA

MAP OF USA

Size 9,629,091 sq km

Population 309,897,000Age structure

0-14 years: 21% (male 30,116,782; female 28,765,183) 15-64 years: 66.4% (male 92,391,120; female 93,986,468) 65 years and over: 12.6% (male 14,748,522; female 20,554,414)

Sex ratioat birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 0.98 male(s)/female 65 years and over: 0.72 male(s)/female total population: 0.96 male(s)/female

BASIC STATISTICS AND DEMOGRAPHICS OF USA

WHITE HOUSE

Race/Ethnicity (2008)

White 79.8%

African American 12.8%

Asian American 4.5%

Native American and Alaska Native

1.0%

Native Hawaiian and Pacific Islander

0.2%

Multiracial 1.7%

Hispanic (of any race) 15.4%

CAPITAL - WASHINGTON D.C.

LARGEST CITY - NEW YORK

IMD ranking – 1(2002); 1(2001) Unemployment rate: 9.5% (June 2010) GDP - real growth rate: 3.0% (1Q 2010)

[-2.4% (2009)] Inflation rate (consumer prices): 1.1% (June 2009 – June

2010) Industries: leading industrial power in the world, highly

diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining

Industrial production growth rate: -3.7% (2001 est.)

OVERVIEW

Hofstede model United States

Power distance -Low (40)

Masculinity -High (62)

Uncertainty avoidance -Average (46)

Individualism -Higher (91)

HOFSTEDE MODEL FOR THE U.S

More equal relationships; Low power distance More individualistic Display personal steadiness Behave more ethically under conflict situation Prefer abstract universal principles More interpersonal trust, less familistic Pay attention to the focal object, Focus is on logical connections and on linear and Sequential explanations

EXTERNAL FACTORS AND CULTURAL VALUES

1. The leading national exporters2. The top business services3. World leadership in many sophisticated

industries4. The vast amount of arable land and reserves of

natural deposits5. The highest productivity rate of workforce6. Strong infrastructure supporting business7. Basic scientific research and R&D dept.8. Less government intervention in market9. Highest economic-stability 10. The power of unions is relatively less

THE COMPETITIVE ADVANTAGE OF NATION

Decentralized system controlled by the state govt and local school boards.

Age 6 to 18 mandatory education. Recent reports document that the education

system in US fails to serve the needs of employing organizations

EDUCATION SYSTEM

-Pharmaceuticals - Johnson & Johnson, GlaxoSmithKline

-Software - Microsoft,IBM,Dell -Services - Amex,BOA -Electronics - Thomson, -Engineering -Ford -Astronomical - NASA

LIST OF INDUSTRIES AVAILABLE IN U.S.

Developed structure

Work responsibilities are defined in job descriptions Standard procedures Staff and line units are clearly differentiated

ORGANIZATION STRUCTURE

High and rapidly growing integration of HR and business strategy

HR metrics gaining popularity Rapid growth of HR planning in firms Role of HR is more strategic in service

industry than in mfg. firms Decentralization of administrative HR

functions, but centralization of strategic functions

Increasing trends of outsourcing HR across the borders

HRMS

External FactorsHigh on individualism

Low Union DensityModerate State Involvement

Slowing Economic DevelopmentOpen society most MNC’s

Legal system regulatedPolitical stabilityIMD ranking 1

Skill Levels increasingChange in net migration is stable

Women & Youth in the labor force.Increasing level of education

Internal factorsTechnology expanding

Knowledge AgeMaturity stage

Knowledge workers increasingEmployment steady

Outsourcing to other marketsCost cutting as vital

Sixth Sigma Quality PracticesSupply Chain Management

HR Policies & Practices

HR highly streamlinedReduced general Training in

organizationsMore variable pay than base pay

More Part time employment & increasing flexibility

Changing Labor Contracts High Employee involvement & accountability

Executive Development & Exec Pay

Value of Stakeholders Internal Stakeholders more important than

external stake holders.Balanced Scorecard approach

HRM Effects HR to manage differently

for diversity. Ethics an HR function

Knowledge management initiatives

by HR. HR MetricsGlobal HR

HR at the tableStrategic HR

at Corporate level Decentralized HR at Business Units

HR Scorecard

• Impact on Stakeholders•Employee Customer Profit chain

• Increased coordination• with suppliers

Schuler Begin Model – Future trendsUS

HR FunctionIncreasingly shifting to

Executive Leadership focusMore administrative HR functions

shifting to line managers. HR focus Doables to Deliverables

Transfer of HRP& P External transfer of

practices very uncommonInternal practices share

common ground – best practices

RECRUTIMENT AND SELECTION

RECRUTIMENT Informal recruiting Formal recruiting Targeting

SELECTIONApplication letters

CV/ResumesApplication FormsPsychological TestsAptitude TestsEmotional Quotient

A sense of purpose Connection Appreciation Control Fun Pride

HOW TO RETAIN EMPLOYEES

Minimum wages are $7.25 in a hour

COMPENSATION IN USA

Tax Rate

Married Couples Filing Jointly

Most Single Filers

10% Not over $16,750 Not over $8,37515% $16,750 – $68,000 $8,375 – $34,00025% $68,000 – $137,300 $34,000 – $82,40028% $137,300 –

$209,250$82,400 – $171,850

33% $209,250 – $373,650

$171,850 – $373,650

35% Over $373,650 Over $373,650

Federal Income Tax Brackets For 2010 – Based On Taxable Income Ranges

Decreasing number of part-time jobs while fulltime jobs grow rapidly

Substantial flexibilities in hiring and promotion policies Internal promotions are seniority based due to collective

bargaining Overtime is billed at time and one half (1.5) the regular bill

rate and applied to any time worked over eight (8) hours in a work day or over forty (40) hours worked in a workweek.

No notice required to be given for termination/layoffs No mandatory retirement .Pensionable age is 67 years for both

men and women

STAFFING PRACTICES

Not much focus on organizational level training Lower training budgets allocated Highly specialized jobs require less training High school education along with a little on-the-job

training sufficient Lower employment securities cause employers to

invest less in training Major training facilities provided despite the lower

budgets. Examples are tuition reimbursement, negotiations with unions, etc.

ORGANIZATIONAL-LEVEL TRAINING

Low expenditure on formal and informal training

Professionals and managers receive more training than skilled crafts or production workers

Development & Training

Most training is job-specific - OTJ training Workers perform job hired for Low eagerness to assist others when needed Reward systems don’t encourage movement Outcome = low functional , flexibility

FUNCTIONAL FLEXIBILITYability of organization to deploy workforce among tasks

Work Systems Design -Vertical/horizontal specialized jobsReward Systems -Pay based on the work that is doneEducation -Average yrs formal schooling 15.2

-Low workforce skills obtainedTraining -“On The Job”

-More $ spent on mgmt/professionalsStaffing Systems -Limit ability to allocate wkrs

throughout the firm

OUTOME = LOW COMPETENCY

Competence of Workforceability of workforce to meet organizational staffing

needs

Flexible hiring/term policies

Temp/Part-time workers incorporated into staffing strategies to reduce need for layoffs

Used as way to meet demandchanges

# of Temp/PT employees decreasing (more FT employees being hired)

OUTOME = HIGH ENF

External Numerical Flexibilityability of organization to adjust size of

workforce

Absence of centralized wage negotiation. Pay more clearly Related to Performance 96% organizations use Merit Pay Employee Stock Options a valued form of

compensation significantly for executive compensation

Profit sharing used more widely than gain sharing but gain sharing increasing in importance. Piece work not common anymore. Skill based pay becoming more common

REWARDS & PERFORMANCE APPRAISAL

Fringe benefits is 40% of base pay and paid by employer. Pension pay after 67 Flexi benefits becoming common. Defined Contribution and Defined Benefit Plans 73.4 % organizations purpose is individual prp (performance

related pay) Training needs analyzed to a greater extent – 89%

Contd…

Get Employees to Complete Self-Assessments Gather 360 Degree Feedback Align Employee Goals with Organizational Goals Create Development Plans for Employees Reward Good Performance

5 Important Performance Management Tasks

No legally mandated paid leave In law, workers in the United States are not guaranteed

any paid holidays or vacation days. the average number of paid days off far lower in the United States than in the rest of the industrial world.

VACATION & PAID TIME OFF

VACATION DAYS HOLIDAYS TOTAL

USA 12 11 23

The report defines three types of program: Traditional - preferred by large organizations and used by 54% of

companies. These programs give employees separate allotments for vacation, personal and sick days. A typical program offers 21 days (12 paid vacation plus nine sick days) on average for one to two years of service.

PTO bank-type - this model has increased in popularity from 28 per cent in 2002 to 40 per cent in 2010. Employees are given a pooled number of days off to be used as needed, although fixed holidays, jury duty and bereavement are treated separately. PTO bank programs average a total of 19 days.

Unlimited leave - allowing employees to take as many days as needed. This model is offered by mere one percent of organizations.

On average, employers offer nine paid statutory

Paid Time Off Programs and Practices

mess in communal areas (25 per cent) intrusive noise (21 per cent) smells including perfume, food or smoke (20

per cent) overuse of personal electronics during

meetings (15 per cent) political conversations (12 per cent) misuse of email (12 per cent), and personal use of social media sites (12 pre

cent)

Common Workplace Annoyances

Concept of Employment at will Title VII of Civil Rights Act ADEA, ADA EEOC

National Labor Relations Act (commonly known as the Wagner Act).

Equal Pay Act

FLSA -  Fair Labor Standards Act (FLSA)

FMLA -  Family and Medical Leave Act  provides unpaid leave for certain reasons

Unemployment Insurance

OSHA

Immigration and Nationality Act of 1990 applies to employers seeking to hire nonimmigrant aliens as workers in specialty occupations under H-1B visas.

LEGAL ANGLE

The Department of Labor's Unemployment Insurance (UI) programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own, and meet certain other eligibility requirements.

Disaster Unemployment Assistance The Unemployment Compensation for Federal

Employees Unemployment Compensation for Ex-Service

members  Extended Benefits

Unemployment Insurance (UI)

The Occupational Safety and Health Administration (OSHA). Safety and health conditions in most private industries are regulated by OSHA or OSHA-approved state systems.

Nearly every employee in the nation comes under OSHA's jurisdiction with some exceptions such as miners, some transportation workers, many public employees, and the self-employed.

In addition to the requirements to comply with the regulations and safety and health standards contained in the OSH Act, employers subject to the Act have a general duty to provide work and a workplace free from recognized, serious hazards.

Workplace Safety & Health

Most of firms are partnership(private)

Less centralized or decentralized-making and control systems

Tight organizational structure Democratic and collective decision and

managerial style Rational planning Credit systems linkages each other in the

society

Nature of ownership and Management

Employee Assignment Low functional flexibility, Moderate Financial flexibility, High external numerical flexibility (firing/layoff is common, high union),High internal numerical flexibility

Employee Competencies Education do not prepare people for work

Employee job assignment characteristics

Employee Behaviors Low organizational commitment, Low trust between employees & employer

Employee Motivation Not so willing to sacrifice personal live for making more money

Strategic partner Employee involvement high and for the improve of productivity.

76% company willing to share financial information.

Relatively strong union.

Shareholder & Investor value High transparency,CEO responsible, Listing well controlled

Organization value Fulfill multi-stakeholders

Customer value High customer right, More on needs (banking)

Employee value Attracted and retained by train & development, flexible work schedule, above market pay, competencies, and group incentives

Society value Strong government intervention. Companies value community as one of the stakeholder.

HR Linkage to the needs of the firm Strategy HR management is highly recommended with precise steps of application in about 20% of Fortune 500 firms

“The strategy-focused organization”

“The HR scorecard”

“Human Resource Champions”

Barriers - Highly integrated HR systems. Short term vision. Historically bureaucratic organizations.

Facilitators - Open government policy. Academic research. Respect to diversity. High unemployment rate. Global competition.

Transfer of HR Policies and Practices

Upon terminationof employment, some workers and their families (who might otherwise lose their health benefits) have the right to choose to continue group health benefits provided by their group health plan for limited periods of time.

Employers may also be required to provide notices to their employees under theConsolidated Omnibus Budget Reconciliation Act (COBRA) and the Health Insurance Portability and Accountability Act (HIPAA). Also, for information on health insurance coverage under the Family Medical Leave Act (FMLA) upon termination,

TERMINATION

Low union membership low coverage characterized by single corporation based bargaining

Union avoidance is common Low union density Differentiation between Labor & Employment Law Confrontational union relationships – low

participation

INDUSTRIAL RELATIONS

Labor Market United States

Mobility High

Education levels -High level education, including graduate level and research

-Specialized towards managerial jobs

Composition of labor force -31% managerial and professional -29% technical, sales and administrative

support -14% services-24% manufacturing, mining, transportation,

and crafts -2% farming and fishing

Rates of unemployment 5%

LABOR MARKET FOR THE U.S.

Efforts are made to solve problems at the lowest level of the hierarchy as quickly as possible

First step usually involves a meeting between the union representative (shop steward) at the operating level and the employee’s supervisor – they attempt to agree on how to solve the grievance

Unresolved grievances may involve union officials and higher-level management representatives – these conciliatory approaches usually solve the grievance

Sometimes the matter ends up in the hands of a mediator or an arbitrator

The U.S. Approach to Labor Relations

Steps of a Grievance Procedure

Three of the most common arbitration approaches for resolving wage-related issues include:

Labor Relations in the International Arena

50/50 Split Splitting the difference between the demands of the two parties

Either/OrUsing an either-or approach: one position is fully supported and the other is rejected

What’s Fair? Determining a fair wage based on market conditions

The U.S. Approach to Labor Relations

Mediation and Arbitration

• The US has a substantial competitive advantage over at least half the member states of the EU, at $17.50.

• Comparative Labor Costs of average hourly cost to employers

Labor Costs

AFL-CIO American Federation of Musicians American Federation of Teachers Industrial Workers of the World ("Wobblies") International Association of Machinists and Aerospace

Workers International Brotherhood of Electrical Workers International Brotherhood of Teamsters International Ladies Garment Workers Union International Longshoremen's Assoication National Education Association National Farmers Union United Auto Workers

NAME OF US TRADE UNIONS

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