[Music] Human Resource Management what is a human resource what is a resource a resource is something you you need yeah to let's say produce something right material money blah blah blah yeah a human resource is something special it's the resource which is somehow linked to what you people okay human resource management is about people um what people children no customers no people inside a company we name these employees right okay the problem with resources is that once you use resources they get exhausted okay so a better term for this is maybe human capital because once you use Capital if you use it the right way it grows yeah that's value but um in practise we we it's not so commonly used some companies say you Capital Management but it's not so commonly used I only I know just a few companies who say human Capital Management most companies say human resource management so that's why we stick to this term okay so here this is what we're going to do today three questions of course you must be able to answer these questions uh at the end of this uh semester what is human resource management talk about this which Mega Trends determine future challenges in HRM there are some Mega Trends out there the world is changing and this has a huge impact on what we do in human resource management and then I will show you a kind of overview about what is human resource management all about okay so let's start with the first question here is the definition no I start with this sorry Innovation this is one Mega Trend okay you know what this is the old telephone modern telephone a cell phone iPhone what's next what comes after the iPhone be sure that if apple does not invent something which goes beyond the iPhone Apple will lose yeah will be the case definitely yeah the iPhone or the smartphone in general it's not the last thing yeah in 10 years we will have something totally different I promise you don't think that Google is the last search engine yeah in 10 or 20 years you will say oh do you remember we used a website called uh Google yeah H old stuff that was that was so boring hey you had to type in a word and then you got a list H yeah we will laugh about it yeah uh the same way as we love today about this telephone I mean looks nice yeah but we love about it we love about the the the smartphone for sure will you will remember my words yeah and for Apple that means that they must invent new products now yeah um for many companies especially in the western industry they say that 80% of our Revenue ums 80% of our revenue is done with products that were invented in the last four years yeah you know what that mean that means if we would not have invented these new products we would be in deep [ __ ] today okay um so Innovation is really a mega Trend that that that that determine business and the world yeah now we can find a lot of other examples but Innovation is is the trend yeah but the question is what does that mean for the people in the organizations that's the question what does that mean yeah people have to cope with that yeah they have to drive innovation they have to be leaders in technology or everything okay uh think about the the um car manufacturers like BMW diimler and so on the world is changing we think about the E the E vehicle yeah so the engineers the people in production everywhere they have to they have to change their mind they have to change their skills their competencies they have to work with different products because the things start changing so when things change or people have to change things that matters really to the people to their work to their skills to their challenges in the daily life and so on so that really matters okay um and we really can see from statistics that in the last decades there was a major shift from handwork is the great field to knowledge work uh my grandfather worked with his hands yeah as most of your grand Grands uh parents did they worked with their hands work was moving things combined things and so on while you you will work with your brain yeah your work will be nothing else than thinking and communicating right of course you will need your hand yeah um to catch your smartphone H but you you think so in nowadays world people mainly think yeah and what they think and what they do is is was totally changed in the last decades yeah you can order an employee saying saying well do this by your hand yeah combine these pieces 100 times an hour do this I pay you for this yes yes yes you can order and you control you can control but can you order an employee saying well come up with an idea in the next hour that's hard yeah so the type of work totally changed we'll talk about this multiple times in this lecture okay okay another Mega Trend which you probably have heard of demographic changes you all know these pyramids yeah these age pyramids show that that we have more and more older people there's younger people this this age pyramid which rather looks like a like a derer yeah the demographic derer uh here is a different slide yeah I think this is more relevant uh what you can see here this this red line these are those in the age of 25 to 34 and the question is um in in 2015 in 2020 and so on how many people will we have in this age yeah compared to 2010 so here is here is zero okay and we'll see that until 2015 this population increases so we will have more people in this particular age and then the amount of people in this age will decrease and as a rule of thumb it's about 1% in a year yeah it's not 1% in a decade or 1% in a century it's 1% in a year and this is really tramatic I mean um whom of you has been in Istanbul already uh you must go there it's amazing it's a young City you walk through istan it's really young crowded of young people it's party yeah and then you walk through schwiening Yeah Tuesday 11:00 in the morning and you will see the difference Germany gets old yeah and that's the same with many Western Industries okay especially when you look at the uh the group of 65 plus this line yeah it's growing steadily yeah um or look at the uh uh population 50 to 64 this one it's growing in the next 10 years 10 15 years dramatically what does that mean for human resource what does that mean these people will retire okay and when they will retire you have to replace these people okay um companies lose very experienced people in the next few years A lot of them so you have to have uh new people yeah but they are getting less and less so this is the problem I'm talk about yeah we have a demographic change and it's the same in many Western Industries and this demographic change will lead to something that we call a talent shortage Talent shortage there are not enough people out there okay qualified people and as I said companies more and more need qualified people because the world is changing from a world where we work with the hands to the world where we work with the CR okay so these are already two Trends and next Trend globalization yeah this is the German global trade development yeah in uh in the last few years and it's dramatically increasing it's a global trade so we know that Germany is a company that primarily exports products and this is not only the case for Germany I mean German is the leader in that but it's the same you have the same pattern for for most other Western Industries yeah so today Nations produce their products to export them we got a global market and this is really different today compared to let's say 10 or 20 years H so it's really changing uh what does that mean for the people if you look at the company even a smaller midsize company here in the middle of black forest it might be a small company but you can assume that even the small companies in the middle of nowhere they act globally because their customers are Beyond uh German borders okay so globalization is a is a key Trend uh there is a book which is really great by Thomas fredman the World is Flat and he writes about globalization there was one story which I especially like he said um you all know McDonald's dve in yeah if you trve to McDonald trive in in the states yeah you come to this place where you have to make your order right there a person talking to you you order please and you assume that this person you just you talk with is sitting in this restaurant no this is probably not the case the person you talk with is sitting in India yeah there is no need that this person which is taking the order sitting in this particular restaurant this a person sitting in India taking order for very different McDonald's restaurants all over the state yeah so give me one job tell me one job which cannot be let's say outsourced exported yeah okay hair dresser yeah but even butchers a lot of things and there just a minor group of of professions that can't be outsourced fors that's really really tramatic yeah so we will have globally diverse teams in companies yeah the the required skills of the employees change H uh 20 years ago it was really not necessary for University graduates uh that they had uh experience abroad when I studied that didn't mean a thing today it's a must and you are on the right track because you will spend some time abroad it's so became so important yeah this is something new yeah another Mega Trend um we call it web2 um when there is a web2 probably there is also web too what what is that you know all know the web it's the internet um when the internet appeared there was a very simple model yeah um institutions or persons individuals they had a website was mainly HTML website yeah and others could read this site okay one is producing the website and Publishing the website and the others read the website full stop that was the very first generation of the web you will still find a lot of website that work in that way yeah the University website but it's it's changed yeah it's something which we call Web 20 point is that um let's look at websites like Wikipedia yeah who is produced using all this content on Wikipedia anyone can anyone you can yeah everybody can write on Wikipedia whatever you like whom of you has ever written written not read written Artic in Wikipedia I cool what about what tennis player about a tennis player yes okay yeah do it it's a good experience yeah write an article about your home Village yeah or about a special about your I don't know yeah uh it's interesting experience everybody can write everything you share information on Facebook now uh sooner or later you will be on on websites like LinkedIn oring yeah where you have your profiles and your contacts to others um maybe some of you will Twitter some of you will write blogs so it's no more just a few institutions who provide content it's the user who provides the content and that's a major difference yeah you produce the content it's not Facebook that delivers the content Facebook only delivers the platform you provide the content so that's why we call it user generated content generated which is a Content which is generated by the users yeah so the user became a uh uh somebody who really took control about the internet about the content in the internet and that's really relevant for Human Resource Management why as we will see the web2 really changed the way how companies hire people yeah we will see that social media Twitter Facebook LinkedIn social media uh got a crucial role in this we'll talk entire session about this we learned that uh the way how people in companies exchange ideas the way they learn the way they share their knowledge yeah changed through web2 so just think about 20 years ago we didn't had all this stuff I did study without the internet really I had my decree when I wrote my first email yeah you cannot imagine this I did an experiment two years ago where eight students declared that they will not use the internet neither internet nor mobile communication for one week I can recommend to do this yeah just skip all this for one entire week and you will experience that this is a different life you feel it's hard yeah you feel isolated yeah you feel that you you you are really totally uninformed yeah you will suffer yeah but you will sleep more you will read more make more Sports yeah so it's really traumatic okay so web to Chang the way how we communicate with each others change the way how we hire people how people share their knowledge it changes the way uh we we we spend our lives yeah and this is really relevant for Human Resource Management another Mega value change [Music] yeah earlier days today right which one is prer left right uh I think that's an old iph um the role of women in society in professional world totally change it's not only women yeah it's it's about everything our values change a value what does that mean value is what is important to people uh what is important to you if I would ask you take a piece of paper and write down three things which are important to you yeah and then think about your parents your grandparents and think about what were important to them when they were of similar age you just do this exercise yeah on two little piece of papers you will immediately realize that what is important to you somehow differs from what was important to earlier Generations yeah so uh work totally changed yeah it changed what is important to the people the role of people change the way we work the way we communicate change yeah I mean look at our University the way we built relationship between students and professors did change okay I mean when I studied 20 years ago we would have never dared to send a letter to a professor because I was here a small unimportant person and prate student and then there was the professor God today you're more or less on the same island yeah hey you have problem send me email yeah direct communication Open Door yeah um we even have a rock band yeah professors and stewards together make loud and noisy and hard rock music yeah you could not have imagined this 50 years ago H so um things change yeah that means that the way we shape our our our our work yeah really really changed we're going to see this okay so here's the kind of summary is that there are five trends that really impact the world Innovation demography globalization web to0 value change I think these are the five major Trends yeah of course there are more Trends in the world climate change maybe or some others um but the important thing is that all these things as I have indicated have an impact on on challenges that relate to human resource management and we'll talk about these challenges in much detail yeah we will need to acquire the right talents to be Innovative yeah um sorry this typo give the right rewards yeah maybe in terms of compensation or other privileges we have to support lifelong learning yeah it's it's it's not the case that you do your your education and you finished and then you have the entire qualification that you need for the rest of your life no you will need to learn your entire life yeah you have to leverage employee potential find their talents yeah uh support diversity of course we are in a global world uh the customers are Global we have to be Global um we have to have women in leadership positions so that means we have to have more diversity on the workplace build successors for key positions we're going to talk about in much detail we have to retain and share knowledge because knowledge became key for most companies why because Innovation okay we have to shape attractive work conditions so that you really attract the right people so that they apply uh things change inside companies we have big strategic changes which we need to manage now will talk about this for two sessions uh we use l technology even in HR yeah we use iPad we use modern software to do human resource management related things of course we have to retain the best talent and so on this list is not complete but you can see that from all this Mega Trends we can um can say that there are specific challenges which are special today which were not as big uh 10 or 20 years ago and we do all this at the end to ensure the competitive position the competitive advantage of a company okay so here is a definition yeah don't learn this by heart yeah but if I would show you this definition in the exam I could imagine asking you explain this explain it in your own words okay and many things which we which we which I have written here we have already discussed today yeah um you know the first part is easy uh it's about management management it's a term which you hear a lot of time during your studies in during your entire career management what is management whenever somebody says management customer relationship management quality management Health Management Facility management management management yeah management always means planned and controlled okay planned and controlled so all planned and controlled in bracket managed all planned and controlled activities of and what organization why do I say organization and not company because I mean is um is the Red Cross is that a company it's organ it's organization this University is not a company it's an organization un it's an organization yeah the Uno it's the organization the Christian demographic Union C Germany party is a organization but every company is also an organization so I rather use this term organization it's about planned and controlled activities of an organization to do what to build and maintain the relation between employees and the company yeah or the organization be more concrete relation what does that mean I mean at one point of time you you you apply yeah you want to work at a company this is the start of a relation or maybe the company wants to hire you this is the start of a relation then you work with a company or with the organization you give you give your health you give your time you give you performance you give you talents the skills and you get you get privileges you get money so this is a relation it's always about a relation yeah and if you are strong the company wants to retain pain you doesn't want to lose you so this is all about this relation between the people and the organization to do what to meet organizations uh organization objectives of the organization could be Revenue can be profit can be whatever quality and so on but not only this organizations are not only there to to achieve the organization's objectives the people work there to to get something else to learn to to feed the children all this stuff okay so it's about both now we will see this through the entire lecture it's always about both both sides and these two things must be in Balance um so before we make a short break here is an overview for the next two semesters uh it's I name it a HR landscape HRM landscape so here is the organization right and um the first thing we talk about is the HR strategy yeah what is necessary in human resource management in the upcoming years to succeed and to plan this accordingly uh this is a starting point we're going to talk about this coming from there once we know how many people we need in the future what kind of competencies we need in the future blah blah blah blah blah yeah we start to acquire talents Talent acquisition recruiting okay how to hire people how to find the right people how to present a company as an attractive employer this is what we're going to talk about for I would say two or so sessions yeah of course you all know the job ad but the job ad does not work for any jobs um especially for the most important important jobs the chob ads chob advertisements don't work anymore because of what because of the talent shortage which I have just mentioned yeah so we have to have some different methods and strates here so once candidates apply they will be selected yeah uh imagine you have a couple of applications yeah you are in a situation that you can choose among different applicants which one is the best so for this we do interviews we do assessment centers tests and all this stuff we're going to talk about this what are the commonly used methods here yeah how can I tell whether a a selection method is good or verse yeah and then people start working and get paid so we're going to talk about money compensation and benefits yeah how can a company determine individual salaries for instance what are the commonly shared benefits in companies and why do companies share benefits company car insurances and all this stuff so we're going to spend one or two sessions around C and Ben as we say okay then you walk over here yeah nowadays people in companies have to learn yeah you will learn uh through your entire life you will never stop learning once you feel that in your job you stop learning quit the job really yeah you have to learn every day it's so important once you stop learning you start to lose so learning we're going to talk about training how to set up a training how to design a training but we also talk about some alternative ways of learning learning through the web learning from others informal learning and all this stuff so learning is about the shortterm knowledge acquisition so to speak it's about I learn how to use Excel I learn how to use a pivot table in Excel um uh the other thing is your long-term development um which is which is presented here Talent Development if you are strong in the company you work for you might belong to the 5 to 10% people which are considered as high potentials the most talented people in the company and once you are identified as the most talented people in a company you get some systematic support you're going to learn you will get some special challenges you might get support by a mentor yeah a director and so on so we going to talk about how companies build their Future Leaders yeah okay and how companies support the career of the most talented people so and that's it for for this semester in the in the third in the in your fourth semester we have a quite a long break we're going to talk about the workplace as such how to shape the workplace in the future how how to retain talented people we're going to talk about change management and here you have all these things you need to have to run Human Resource Management successfully you have to have an organization um hrit it is information technology social media and HR controlling so this is the entire picture and again my promise is that first this picture really reflects modern human resource management and you will be able to talk about all these things and you have a a modern current understanding about all these Concepts