Understanding Human Resource Management Trends

Human Resource Management What is a human resource? What is a resource? A resource is something you need to, let's say, produce something, right? Material, money, blah, blah, blah. A human resource is something special. The resource is somehow linked to what? To people. Human resource management is about people. What people? Children? No. Customers, people inside a company, we name these employees. Okay, the problem with resources is that once you use resources, they get exhausted. So a better term for this is maybe human capital. Once you use capital, if you use it the right way, it grows. But in practice, it's not so commonly used. Some companies say human capital. management but it's not so commonly used I only I know it's 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 This is what we're going to do today. Three questions. Of course, you must be able to answer these questions at the end of this semester. What is human resource management? We'll talk about this. Which megatrends determine future challenges in HRM? There are some megatrends 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 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. Innovation. This is one mega thing. Okay, you know what this is? The old telephone. Or modern telephone. Cell phone. iPhone. What's next? What comes after the iPhone? Be sure of that. If Apple... does not invent something which goes beyond the iPhone, Apple will lose. Yeah? It will be the case, definitely. Yeah? The iPhone, or the smartphone in general, it's not the last thing. Yeah? In ten years we will have something totally different. I promise you. Don't think that Google is the last search engine. In 10 or 20 years, you will say, oh, do you remember? We used a website called Google. Old stuff. That was so boring. You had to type in a word, and then you got a list. Yeah, we will laugh about it. The same way as we... We laugh today about this telephone. I mean, it looks nice, yeah? But we laugh about it. We will laugh about the YouTube smartphone. For sure. You will remember my words. Yeah. And for Apple, that means that they must invent new products now. For many companies, especially in the Western industry, they say that 80% of our revenue, Umsatz, 80% of our revenue is done with products that were invented in the last four years. You know what that means? That means if we would not have invented these new products, we would be in deep shit today. Okay, so innovation is really a mega trend that determines business and the world. We can find a lot of other examples, but innovation... is the trend. But the question is, what does that mean for the people in the organizations? That's the question. What does that mean? People have to cope with that. They have to thrive innovation. They have to be leaders in technology or everything. Think about the car manufacturers like BMW, Daimler and so on. The world is changing. Think about the e-vehicle. So the engineers, the people in production, everybody, they have to change their mind, they have to change their skills, their competencies. They have to work with different products. Because the things are 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 their daily life and so on. So that really matters. And we really can see from statistics that in the last decades, There was a major shift from handwork, which is a great field, to knowledge work. My grandfather worked with his hands, as most of you will see. They worked with their hands. Work was moving things, combined things and so on. While you, you will work with your brain. Your work will be nothing else than thinking and communicating. Of course you will need your hand to catch your smartphone, but you think. So in nowadays world, people mainly think. And what they think and what they do is totally changed in the last decades. You can order an employee saying, well, do this by your hand. 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. So the type of work totally changed. We'll talk about this multiple times in this lecture. Another mega trend, which you probably have heard of, demographic change. You all know these pyramids, these age pyramids show that we have more and more older people, there's younger people. This age pyramid which rather looks like a like a donor. demographic journal. Here is a different slide. I think this is more relevant. What you can see here is this red line. These are those in age of 25 to 34. And the question is, in 2015, in 2020, and so on, how many people will we have in this age compared to to 2010. So here is zero. But we'll see that until 2015, this population increases, so we'll 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. It's not 1% in a decade. So when... percent in a century, it's one percent in a year. And this is really true. I mean, who of you has been in Istanbul already? You must go there, it's amazing. It's a young city. You walk through Istanbul, it's really young. A crowd of young people, it's party. And then you walk through Schwenningen. Tuesday, 11 o'clock in the morning. see the difference. Germany gas old. Yeah and that's the same with many Western industries. Okay especially when you look at the group of 65 plus. This line. growing steadily. Or look at the 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. And when they will retire, you have to replace these people. Companies lose very experienced people in the next few years. lot of them. So you have to have new people. But they are getting less and less. So this is the problem I'm talking about. We have a demographic change and it's the same in many West and industries, and this demographic change will lead to something that we call a talent shortage. A talent shortage, fuck that amount. There are not enough people out there, 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 our hands to the world where we work with work with Ukraine. These are already two trends. And next trend, globalization. This is the term in global trade development. 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. Germany is the leader in that. But you have the same pattern for most other Western industries. So today, nations produce their products to export them. We've got a global market. And this is really different today compared to, let's say, 10 or 20 years. So it's really changing. What does that mean for the people? If you look at the... company, even a small or mid-sized company here in the middle of Black Forest. It might be a small company, but you can assume that even a small company is in the middle of nowhere. They act globally because their customers are beyond German borders. Okay, so globalization is a key trend. There is a book which is really great by Thomas Friedman. The world is flat. And he writes about globalization. And there was one story which I especially like. He said, you all know McDonald's drive-in? Yeah? Yeah. If you drive to McDonald's drive-in in the States, you come to this place where you have to make your order. There's 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. There is no need that this person which is taking the order sits in India. sitting in this particular restaurant. This person is sitting in here, taking order for very different McDonald's restaurants all over the state. So give me one job, tell me one job, which cannot be, let's say, outsourced, exported. Okay, Herr Tresser. But even butchers. A lot of things. And there's just a minor group of professions that can't be outsourced. That's really, really traumatic. So, we will have globally diverse teams in companies. The required skills of the employees change. 20 years ago, it was really not necessary for university graduates that they had experience abroad. When I studied, that didn't mean a thing. Today, it's a must. Amen. And you are on the right track, because you will spend some time abroad. It's so important. This is something new. Another mega trend, we call it Web 2.0. When there is a Web 2.0, probably there is also a Web 2.0. What is that? Oh, no, the Web. It's the Internet. When the internet appeared, it was a very simple model. Institutions or persons, individuals, they had a website. It was mainly HTML website and others could read this site. One is producing the website and publishing the website and the others read the website. That was the very first generation of the web. You will still find a lot of websites that work in that way. The university website. But it's changed. There's something which we call Web 2.0. The point is that let's look at websites like Wikipedia. Who is producing all this content on Wikipedia? Anyone can. Anyone. You can. Everybody can write on Wikipedia whatever you like. Whom of you has ever written, written? not read written an article in Wikipedia I'm what I'm a tennis player you're a tennis player yes okay yeah do it it's a good experience yeah write an article about your home village, or about a special about your... I don't know. It's an interesting experience. Everybody can write everything. You share information on Facebook. Sooner or later you will be on websites like LinkedIn or Xing. You have your profiles and your contacts to others. 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 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 content which is chat generated by the users. So the user became 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 Web 2.0 really changed the way how companies hire people. We will see that social media, media, Twitter, Facebook, LinkedIn, social media, got a crucial role in this. We'll talk an entire session about this. We learned that the way how people in companies exchange ideas, the way they learn, the way they share their knowledge, changed through Web 2.0. So just think about 20 years ago, we didn't have all this stuff. I did study without the internet. Really. I had my degree when I wrote my first email. You cannot imagine. 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. Just skip all this for one week. time 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 uninvited uninformed, you will suffer, but you will sleep more, you will read more, make more sports. So it's really traumatic. So Web2O changed the way how we communicate with each other, changed the way how we hire people, how people share their knowledge, it changed the way we spend our lives. This is really relevant for human resource management. Another megatrend. Value change. Yeah? Early days. Today. Right? Which one is prettier? The left. Right. I think that's an important point. I've already agreed. The role of women in society, in the professional world, is totally different. It's not only women. It's about everything. Our values change. What does that mean? Value is what is important to people. 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. And then think about your parents, your grandparents, and think about what were important to them when they were of similar age. If you just do this exercise on two little pieces of paper, you will immediately realize that what is important to you somehow differs from what was important to earlier generations. So, work totally changed. It changed what is important to the people. The role of people changed. The way we work, the way we communicate changed. I mean, look at our university. The way we build relationships between students and professors, they change. 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, in brackets, student, and then there was the professor, God. Today, we are more or less on the same island. Hey, you have a problem? Send me an email. Direct communication, open door. We even have a rock band. Professors and students together make loud and fun... noisy and hard rock music. Couldn't have imagined this 50 years ago. Things change. That means that the way we shape our work really, really changed. You're going to see this. Okay? So, here's the kind of summary. I said there are five trends that really impact the world. Innovation, demography, globalization, Web 2.0, value change. I think these are the five major trends. Of course, there are more trends in the world. Climate change, mainly, or some others. But the important thing is that all these things, as I have indicated, have an impact on challenges that relate to human resource management. And we'll talk about these challenges in much detail. We will need to acquire the right talents to be innovative. Sorry, this is a typo. Give the right rewards. Maybe in terms of compensation. Or other privileges. You have to support lifelong learning. It's not the case that you do your education and you finish 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. You have to leverage employee potential. Find their talents. Support diversity. Of course, we are in a global world. the customers are global we have to be global we have to have women in leadership positions that means we have to have more diversity on the workplace build successors for key positions we have to retain and share knowledge because knowledge became key for most companies because innovation we have to shape attractive work so that you really attract the right people, so that they apply. Things change inside companies. We have big strategic changes which we need to manage. I will talk about this for two sessions. We use latest technology even in HR. 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 these megatrends we can say that there are specific challenges which are special today which were not as big 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 the definition. Don't learn this by heart. But, if I would show you this definition in the exam, I could imagine asking you to explain it. Explain it in your own words. Okay? And many things which I have written here we have already discussed today. You know, the first part is easy. It's about management. Management is a term which you hear a lot of times in your studies and during your entire career. Management. What is management? Whenever somebody says management, relationship management, quality management, health management, facility management, management, management. Management always means planned and controlled. Okay? Planned and controlled. all land and control, in brackets, managed, all land and control activities of what? Organization. Why do I say organization and not company? Because I mean, is is the Red Cross, is that a company? No, it's an organization. It's an organization. This university is not a company. It's an organization. UDIZEF, it's an organization. the UNO it's an organization the Christian Demographic Union CDU Germany party is an 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 all the organizations organization. To be more concrete. Relation. What does that mean? I mean, at one point of time you apply. 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 the company or with the organization. You give. You give your health. You give your time. You give your performance. You give your talents, your skills. And you get privileges, you get money. So this is a relation. It's always about a relation. And if you are strong, the company wants to retain you. It 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, objectives of the organization. Could be revenue, can be profit, can be whatever, quality, and so on. But not only this. are not only there to achieve the organization's objectives. The people work there to get something else. To learn, to achieve. 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. So, before we make a short break, here is an overview for the next two semesters. I name it HR Landscape, HRM Landscape. So, here is the organization, right? And the first thing we talk about is the HR strategy. What is necessary in human resource management in the upcoming years? To succeed. And to plan this accordingly. This is the 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 competition we need, we need in the future, blah, blah, blah, blah, blah. Now we start to acquire talents. Talent acquisition. Recruiting. How to hire people, how to find the right people, how to present the company as an attractive employer. This is what we're going to talk about. Or I would say... Two or so sessions. Of course you are known in job ad, but the job ad does not work for any jobs. Especially for the most important. jobs, the job ads, job advertisements don't work anymore because of what? Because of the talent shortage which I have just mentioned. So we have to have some different methods and strategies here. So once candidates apply, they will be selected. Imagine you have a couple of applications. You are in a lucky 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. How can I tell whether a selection method is good or worse? And then people start working and get paid. So we're going to talk about money. Compensation and benefits. How can a company determine individual sales? 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 comp and ben, as we say. Then, you walk over here. Nowadays, people in companies have to learn. You will learn through your entire life. You will never stop learning. Once you feel that in your job, you stop learning, quit the job. Really. 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 short-term knowledge acquisition, so to speak. It's about, I learn how to use Excel. I learn how to use a pivot table in Excel. The other thing is your long-term development, 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, a director, and so on. So we're going to talk about how companies... build their future leaders. Okay? And how companies support the career of the most talented people. So, and that's it for this semester. In the third semester, in your fourth semester, we have quite a long break. We're going to talk about the workplace as such, how to shape the workplace. on how to retain people. We're going to talk about change management. And here, we have all these things you need to have to run human resource management successfully. You have to have an organization, HR IT, 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 modern, current understanding about all these concepts.

Human Resource Management What is a human resource? What is a resource? A resource is something you need to, let's say, produce something, right? Material, money, blah, blah, blah.

A human resource is something special. The resource is somehow linked to what? To people. Human resource management is about people. What people?

Children? No. Customers, people inside a company, we name these employees. Okay, the problem with resources is that once you use resources, they get exhausted. So a better term for this is maybe human capital.

Once you use capital, if you use it the right way, it grows. But in practice, it's not so commonly used. Some companies say human capital.

management but it's not so commonly used I only I know it's 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 This is what we're going to do today. Three questions. Of course, you must be able to answer these questions at the end of this semester. What is human resource management?

We'll talk about this. Which megatrends determine future challenges in HRM? There are some megatrends 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 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. Innovation.

This is one mega thing. Okay, you know what this is? The old telephone. Or modern telephone.

Cell phone. iPhone. What's next?

What comes after the iPhone? Be sure of that. If Apple... does not invent something which goes beyond the iPhone, Apple will lose.

Yeah? It will be the case, definitely. Yeah?

The iPhone, or the smartphone in general, it's not the last thing. Yeah? In ten years we will have something totally different. I promise you. Don't think that Google is the last search engine.

In 10 or 20 years, you will say, oh, do you remember? We used a website called Google. Old stuff.

That was so boring. You had to type in a word, and then you got a list. Yeah, we will laugh about it. The same way as we...

We laugh today about this telephone. I mean, it looks nice, yeah? But we laugh about it. We will laugh about the YouTube smartphone.

For sure. You will remember my words. Yeah.

And for Apple, that means that they must invent new products now. For many companies, especially in the Western industry, they say that 80% of our revenue, Umsatz, 80% of our revenue is done with products that were invented in the last four years. You know what that means? That means if we would not have invented these new products, we would be in deep shit today. Okay, so innovation is really a mega trend that determines business and the world.

We can find a lot of other examples, but innovation... is the trend. But the question is, what does that mean for the people in the organizations? That's the question. What does that mean?

People have to cope with that. They have to thrive innovation. They have to be leaders in technology or everything. Think about the car manufacturers like BMW, Daimler and so on. The world is changing.

Think about the e-vehicle. So the engineers, the people in production, everybody, they have to change their mind, they have to change their skills, their competencies. They have to work with different products. Because the things are 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 their daily life and so on.

So that really matters. And we really can see from statistics that in the last decades, There was a major shift from handwork, which is a great field, to knowledge work. My grandfather worked with his hands, as most of you will see. They worked with their hands. Work was moving things, combined things and so on.

While you, you will work with your brain. Your work will be nothing else than thinking and communicating. Of course you will need your hand to catch your smartphone, but you think.

So in nowadays world, people mainly think. And what they think and what they do is totally changed in the last decades. You can order an employee saying, well, do this by your hand.

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. So the type of work totally changed. We'll talk about this multiple times in this lecture.

Another mega trend, which you probably have heard of, demographic change. You all know these pyramids, these age pyramids show that we have more and more older people, there's younger people. This age pyramid which rather looks like a like a donor. demographic journal. Here is a different slide.

I think this is more relevant. What you can see here is this red line. These are those in age of 25 to 34. And the question is, in 2015, in 2020, and so on, how many people will we have in this age compared to to 2010. So here is zero. But we'll see that until 2015, this population increases, so we'll 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. It's not 1% in a decade. So when...

percent in a century, it's one percent in a year. And this is really true. I mean, who of you has been in Istanbul already?

You must go there, it's amazing. It's a young city. You walk through Istanbul, it's really young.

A crowd of young people, it's party. And then you walk through Schwenningen. Tuesday, 11 o'clock in the morning.

see the difference. Germany gas old. Yeah and that's the same with many Western industries. Okay especially when you look at the group of 65 plus. This line.

growing steadily. Or look at the 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. And when they will retire, you have to replace these people. Companies lose very experienced people in the next few years.

lot of them. So you have to have new people. But they are getting less and less. So this is the problem I'm talking about.

We have a demographic change and it's the same in many West and industries, and this demographic change will lead to something that we call a talent shortage. A talent shortage, fuck that amount. There are not enough people out there, 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 our hands to the world where we work with work with Ukraine.

These are already two trends. And next trend, globalization. This is the term in global trade development.

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. Germany is the leader in that. But you have the same pattern for most other Western industries.

So today, nations produce their products to export them. We've got a global market. And this is really different today compared to, let's say, 10 or 20 years.

So it's really changing. What does that mean for the people? If you look at the...

company, even a small or mid-sized company here in the middle of Black Forest. It might be a small company, but you can assume that even a small company is in the middle of nowhere. They act globally because their customers are beyond German borders.

Okay, so globalization is a key trend. There is a book which is really great by Thomas Friedman. The world is flat. And he writes about globalization. And there was one story which I especially like.

He said, you all know McDonald's drive-in? Yeah? Yeah. If you drive to McDonald's drive-in in the States, you come to this place where you have to make your order. There's 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. There is no need that this person which is taking the order sits in India.

sitting in this particular restaurant. This person is sitting in here, taking order for very different McDonald's restaurants all over the state. So give me one job, tell me one job, which cannot be, let's say, outsourced, exported. Okay, Herr Tresser.

But even butchers. A lot of things. And there's just a minor group of professions that can't be outsourced.

That's really, really traumatic. So, we will have globally diverse teams in companies. The required skills of the employees change. 20 years ago, it was really not necessary for university graduates that they had experience abroad.

When I studied, that didn't mean a thing. Today, it's a must. Amen.

And you are on the right track, because you will spend some time abroad. It's so important. This is something new.

Another mega trend, we call it Web 2.0. When there is a Web 2.0, probably there is also a Web 2.0. What is that?

Oh, no, the Web. It's the Internet. When the internet appeared, it was a very simple model. Institutions or persons, individuals, they had a website.

It was mainly HTML website and others could read this site. One is producing the website and publishing the website and the others read the website. That was the very first generation of the web. You will still find a lot of websites that work in that way.

The university website. But it's changed. There's something which we call Web 2.0. The point is that let's look at websites like Wikipedia. Who is producing all this content on Wikipedia?

Anyone can. Anyone. You can.

Everybody can write on Wikipedia whatever you like. Whom of you has ever written, written? not read written an article in Wikipedia I'm what I'm a tennis player you're a tennis player yes okay yeah do it it's a good experience yeah write an article about your home village, or about a special about your...

I don't know. It's an interesting experience. Everybody can write everything. You share information on Facebook. Sooner or later you will be on websites like LinkedIn or Xing.

You have your profiles and your contacts to others. 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 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 content which is chat generated by the users.

So the user became 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 Web 2.0 really changed the way how companies hire people.

We will see that social media, media, Twitter, Facebook, LinkedIn, social media, got a crucial role in this. We'll talk an entire session about this. We learned that the way how people in companies exchange ideas, the way they learn, the way they share their knowledge, changed through Web 2.0.

So just think about 20 years ago, we didn't have all this stuff. I did study without the internet. Really.

I had my degree when I wrote my first email. You cannot imagine. 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. Just skip all this for one week. time 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 uninvited uninformed, you will suffer, but you will sleep more, you will read more, make more sports.

So it's really traumatic. So Web2O changed the way how we communicate with each other, changed the way how we hire people, how people share their knowledge, it changed the way we spend our lives. This is really relevant for human resource management.

Another megatrend. Value change. Yeah?

Early days. Today. Right? Which one is prettier?

The left. Right. I think that's an important point.

I've already agreed. The role of women in society, in the professional world, is totally different. It's not only women. It's about everything. Our values change.

What does that mean? Value is what is important to people. 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. And then think about your parents, your grandparents, and think about what were important to them when they were of similar age. If you just do this exercise on two little pieces of paper, you will immediately realize that what is important to you somehow differs from what was important to earlier generations.

So, work totally changed. It changed what is important to the people. The role of people changed.

The way we work, the way we communicate changed. I mean, look at our university. The way we build relationships between students and professors, they change. 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, in brackets, student, and then there was the professor, God.

Today, we are more or less on the same island. Hey, you have a problem? Send me an email.

Direct communication, open door. We even have a rock band. Professors and students together make loud and fun...

noisy and hard rock music. Couldn't have imagined this 50 years ago. Things change.

That means that the way we shape our work really, really changed. You're going to see this. Okay? So, here's the kind of summary. I said there are five trends that really impact the world.

Innovation, demography, globalization, Web 2.0, value change. I think these are the five major trends. Of course, there are more trends in the world. Climate change, mainly, or some others.

But the important thing is that all these things, as I have indicated, have an impact on challenges that relate to human resource management. And we'll talk about these challenges in much detail. We will need to acquire the right talents to be innovative. Sorry, this is a typo.

Give the right rewards. Maybe in terms of compensation. Or other privileges. You have to support lifelong learning.

It's not the case that you do your education and you finish 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. You have to leverage employee potential.

Find their talents. Support diversity. Of course, we are in a global world. the customers are global we have to be global we have to have women in leadership positions that means we have to have more diversity on the workplace build successors for key positions we have to retain and share knowledge because knowledge became key for most companies because innovation we have to shape attractive work so that you really attract the right people, so that they apply.

Things change inside companies. We have big strategic changes which we need to manage. I will talk about this for two sessions.

We use latest technology even in HR. 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 these megatrends we can say that there are specific challenges which are special today which were not as big 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 the definition. Don't learn this by heart.

But, if I would show you this definition in the exam, I could imagine asking you to explain it. Explain it in your own words. Okay? And many things which I have written here we have already discussed today.

You know, the first part is easy. It's about management. Management is a term which you hear a lot of times in your studies and during your entire career.

Management. What is management? Whenever somebody says management, relationship management, quality management, health management, facility management, management, management.

Management always means planned and controlled. Okay? Planned and controlled.

all land and control, in brackets, managed, all land and control activities of what? Organization. Why do I say organization and not company? Because I mean, is is the Red Cross, is that a company?

No, it's an organization. It's an organization. This university is not a company.

It's an organization. UDIZEF, it's an organization. the UNO it's an organization the Christian Demographic Union CDU Germany party is an 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 all the organizations organization.

To be more concrete. Relation. What does that mean? I mean, at one point of time you apply. 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 the company or with the organization. You give.

You give your health. You give your time. You give your performance. You give your talents, your skills.

And you get privileges, you get money. So this is a relation. It's always about a relation.

And if you are strong, the company wants to retain you. It 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, objectives of the organization. Could be revenue, can be profit, can be whatever, quality, and so on.

But not only this. are not only there to achieve the organization's objectives. The people work there to get something else.

To learn, to achieve. 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.

So, before we make a short break, here is an overview for the next two semesters. I name it HR Landscape, HRM Landscape. So, here is the organization, right?

And the first thing we talk about is the HR strategy. What is necessary in human resource management in the upcoming years? To succeed. And to plan this accordingly.

This is the 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 competition we need, we need in the future, blah, blah, blah, blah, blah. Now we start to acquire talents.

Talent acquisition. Recruiting. How to hire people, how to find the right people, how to present the company as an attractive employer. This is what we're going to talk about.

Or I would say... Two or so sessions. Of course you are known in job ad, but the job ad does not work for any jobs.

Especially for the most important. jobs, the job ads, job advertisements don't work anymore because of what? Because of the talent shortage which I have just mentioned. So we have to have some different methods and strategies here.

So once candidates apply, they will be selected. Imagine you have a couple of applications. You are in a lucky 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.

How can I tell whether a selection method is good or worse? And then people start working and get paid. So we're going to talk about money.

Compensation and benefits. How can a company determine individual sales? 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 comp and ben, as we say. Then, you walk over here. Nowadays, people in companies have to learn.

You will learn through your entire life. You will never stop learning. Once you feel that in your job, you stop learning, quit the job.

Really. 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 short-term knowledge acquisition, so to speak.

It's about, I learn how to use Excel. I learn how to use a pivot table in Excel. The other thing is your long-term development, 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, a director, and so on.

So we're going to talk about how companies... build their future leaders. Okay? And how companies support the career of the most talented people. So, and that's it for this semester.

In the third semester, in your fourth semester, we have quite a long break. We're going to talk about the workplace as such, how to shape the workplace. on how to retain people.

We're going to talk about change management. And here, we have all these things you need to have to run human resource management successfully. You have to have an organization, HR IT, 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 modern, current understanding about all these concepts.

Transcript for:Understanding Human Resource Management Trends

Transcript for:
Understanding Human Resource Management Trends