Transcript Chapter 1 notes

Homework . Complete prior to
next class
 Read Chapter 2 in text.
 Consider the following questions and be
prepared to discuss in class:
“What profession and industry will be the
‘hottest ‘ job market for employees?”
“What employee skills will be necessary to be
successful in such assignments?”
Team Configuration List
 TEAM ONE
 Nicole
 Mary Paris
 Chris
 Rob
 Tatyana
 TEAM TWO A
 Lauren Branard
 Sarah Carter
 Lauren Toalson
 Elizabeth S.
 Nu’uve’a Eshelman
Team configuration List
 Team 2 B
 Bailey Stump
 Kari Wan
 Derek Mason
 Jessica Ross
 Blair Warner
 Courtney Ball
 Team 2 C
 Brett Hunter
 Chase D’Arnaud
 Denny Duron
 Nick gaudi
 Matt Aidem
 Robert “the dickster”
sample group presentation topics
 Women in the workforce
 The Glass ceiling
 Title IX
 Working overseas
 Wellness programs
 Abusive work environments
 Illegal immigration
 Outsourcing
 Is Wal-Mart a fair employer?
 Workplace violence
Group topics
 American Apparel Co. or any other interesting
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employer
Compare a union and non-union operation
Should you hire ex convicts?
Did 9/11 change the workplace?
Workplace motivation techniques
Workplace horror stories
Romance at work
HRM in the major leagues
Here come the millennial's
More topics
 Age discrimination in Europe and Asia
 Generational differences
 HRM in the Major Leagues
 Is diversity good for business?
“Blue Light Special” For Group
Presentations
First group up to 18 points
Second group up to 17 points
Third group up to 16 points
Outsourcing
Merve Asimgil
Matthew Steffen
Marcel Strickler
Adam Taki
Outsourcing
• The practice subcontracting
manufacturing work to outside
and especially foreign or
nonunion companies.
• Since the 1990’s outsourcing
has become a standard
business tactic in today’s
American organizations.
• Outsourcing typically takes
place when a company
decides that it can progress its
overall efficiency by giving a
Outsourcing Continue
• Companies are driven by
maximizing their profits,
which is resulted by increasing
its productivity and
profitability.
• When an organization turns
towards outsourcing they are
looking to contract out their
work that needs to be done to a
company who can produce the
goods or services more
efficiently.
Dell Outsourcing to India
• Dell has dominated the U.S. market,
accounting for almost a third of all
the computers sold in 2005.
• Dell is cutting costs by outsourcing
to India.
• Dell opened the first facility in India
in 2001.
• Expect to double its employees to
20000 in the next three years.
• Jobs will come in a wide range of
categories-from hardware engineers
to line workers.
Global Component Network
18-15
Types of Outsourcing
• IT Outsourcing
• BPO ( Business Process
Outsourcing)
– Accounting, HR,
Benefits, Payroll,
Finance functions and
activities
Outsourcing Statistics
• % 28 of IT Outsourcing
• % 15 of HR Outsourcing
• % 14 of Marketing and Sales
Outsourcing
• % 11 of Finance Outsourcing
• % 32 Administrative Outsourcing
• China, India, Philippines, Mexico
Reasons for Global Outsourcing
•
•
•
•
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Reduce costs due to less expensive labor
Improve quality
Increase exposure to worldwide technology
Improve delivery of supplies
Strengthen reliability of supply by supplementing
domestic with foreign suppliers (2nd sourcing)
• Gain access to materials available only abroad
• Establish presence in a foreign market
• Share risks
Disadvantages of Outsourcing
• Loss of the managerial control
• Hidden costs
• Threat to the security and confidentiality of
the issues of a company
• Loss of flexibility
• Long term Dependency
• %20 - 35 of IT outsourcing is not revived
after the contract expires
Responsibilities of the HR Management
• Recognize that outsourcing is growing rapidly
• Pick the right location
• Must consider when the company will utilize or already
utilizes
• Implement training programs
• Creating linkages between the organization and the supplier
at various strategic levels
• Implement a formal performance review process and a
system of incentives and penalties
• Must seek creative managers have excellent negotiating
skills
• Getting the best of the labor pool
Outsourcing and the U.S Economy
•
Global sourcing contributed $5.1 billion to US exports in 2005 and is
expected to grow to $9.7 billion by 2010
•
Outsourcing contributed $68.7 billion in real US GDP
•
Every $1 spent on foreign outsourcing creates $1.12 to $1.14 of
additional economic activity in the U.S. economy.
•
Reduces cost of IT and other services by 60 percent
•
Increases jobs in the U.S and increases spending
•
•
Helps to keep inflation and interest rates low and productivity high.
Global Insights estimates the US economy will be $124 billion larger in
2008 because of outsourcing compared to an economy where the
practice was restricted.
Nike Case Study
• Nike has Contracts with over
500 factories in 45 Countries
• Nike is the largest producer of
sportswear in the world
• Outsourcing can be a danger to
a company’s reputation
Social and Employee Responsibilities
• When companies outsource, they rely on
the suppliers to have acceptable
employment practices
• Nike had a very difficult experience in
this area
Lawsuit
• In 1996 Nike was accused of slave labor
with young Asians working in
“sweatshops”
• Also human rights abuses, violence to
laborers, and hideous working conditions
Nike Reacted with a campaign focusing on
their corporate policy
• New Labor Codes
• Press Releases to the
Publications
• Personal Letters from the
executives
• Campus Visits to Colleges
Lawsuit
• Nike was sued for false advertising by a
San Francisco Resident
Nike’s Reply
• First Amendment Freedom of Speech
• US Supreme Court postponed the ruling
• And Nike donated $1.5 million to the Fair
Labor Association
Recommendations for Outsourcing
•Although Nike has had some
trouble with outsourcing
benefits of outsourcing far
outweigh the disadvantages
•American companies need to
work closely with the
suppliers overseas
Conclusion
• Companies have to pay close attention to
what is taking place overseas
• The advantages can be great
• Outsourcing is a corporate trend that is not
going away
Video Clips
• Outsourcing: Costing Americans their
jobs?
http://www.cbsnews.com/htdocs/videoplayer/newVid/small_player/vplayer2.shtml?clip=/media/2004/03/15/video60648
4.rm&sec=&vidId=&title=Jobs$@$Sent$@$Overseas&hitboxMLC=
• Outsourcing: Leads to Child Labor
Violations
http://www.ifilm.com/ifilmdetail/2671448?refsite=7063&ns=1
• What can be done?
http://video.broadcastconnect.com/videos/broadband/sweat_shop_response_rvp_hi.wmv
Class Discussion
• What are the pros and cons of
outsourcing?
Class Discussion
• Is the U.S. economy dependent
on outsourcing?
Class Discussion
• Check the tags of the clothing
you are wearing to see where it
was made… raise your hand if
you are 100% sure that you are
not wearing something made
by a child in a sweatshop.
Share your
work
experiences
How to make “snake & pigmy pie”
Just tie on some protective gear
Pop down the
hole
Use the latest available torch
Watch the birdie (or flame in this case)
Make sure the protective gear is the first thing to be bitten
Drag out the
snake
Drag out
the
hunter
Show off
the catch
Just
another
day at
the office
P.S Africa is
not for
“sissy’s”
Describe
Best Job
Worst Boss
Best Boss
Can you predict behavior?
 Driving
 In elevator
 In a doctor’s office
 At Duke’s on Friday night
 At Church on Sunday morning
What makes you qualified
to understand human
behavior?
The Molly Maguires
How has HRM
Changed?
1-2
Human Resource
Management
Human Resource Management is
the function performed in
organizations that facilitates the
most effective use of people
(employees) to achieve
organizational and individual goals.
48
Human Resource
Activities
1-3
 Equal Employment Opportunity (EEO) Compliance
 Job Analysis
 Human Resource Planning
 Employee Recruitment, Selection, Motivation, and
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Orientation
Performance Evaluation and Compensation
Training and Development
Labor Relations
Safety, Health, and Wellness
49
1-4
HRM Practice Is:
ACTION
ORIENTED
PEOPLE
ORIENTED
GLOBALLY
ORIENTED
FUTURE
ORIENTED
1-5
From Welfare Secretaries to
HRM Professionals
 Guilds To Improve Work
Conditions
forerunners of trade unions
 Human Relations
Movement
focused on the worker and
individual differences
 Industrial Revolution
altered working conditions
and social patterns
 Identity Crisis
record-keeping image
 Scientific Management
focused on the job and
efficiencies
 Strategic HRM
competitive importance
links to the bottom-line
1-6
Key Concepts of HRM
 Analyzing and solving problems
 Assessing and interpreting costs or
benefits of HRM
 Using planning models
 Preparing reports on HRM solutions
 Training the HR staff
1-7
HRM Contributions to
Organizational Effectiveness
 Help organization reach goals
 Use skills and abilities of employees
efficiently
 Provide well-trained and well-motivated
employees
 Increase job satisfaction and selfactualization
 Communicate HRM policies
 Maintain ethical policies and socially
responsible behavior
 Manage the increasing pace of change
1-8
Quality of Work Life (QWL)
QWL is a general concept referring to several
aspects of the job experience, including:
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Management and Supervisory
Style
Freedom and Autonomy to Make
Decisions
Satisfactory Physical Surroundings
Job Safety
Satisfactory Working Hours
Meaningful Tasks
1-10
HRM Policies and Programs
Zero-Tolerance
Policy on
EMPLOYEE BEHAVIOR
Sexual
Harassment
Sample HRM
Policies & Programs
(guidelines)
EMPLOYEE PAY
AND BENEFITS
EMPLOYEE SAFETY
AND HEALTH
Employee
Benefit
Program
Safety First
Program
1-11
HRM Procedures and Rules
EMPLOYEE BEHAVIOR
Sample HRM
Procedures & Rules
(direction, action)
EMPLOYEE PAY
AND BENEFITS
EMPLOYEE SAFETY
AND HEALTH
Complaint
Investigation
Eligibility
Determination
Accident
Prevention