(Tiểu luận) based on the importance of hrm, describe the following trends affecting human resource management including

Based on the importance of HRM, describe the following trends affecting human resource management including: a.. iii FIGURES Figure 1 Statistics on social media recruitment of companies

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Ho Chi Minh City, June 2023

HCMC UNIVERSITY OF ECONOMICS AND FINANCE FACULTY OF BUSINESS ADMINISTRATION

1 Trần Hu nh Phúc Khang ỳ 215017312 Research question 1, part a 100 2 Võ T n Cao K ấ ỳ 215014698 Research question 1, part b 100 3 Nguyễn Đặng Bảo Minh 215018828 Research question 1, part c 100 4 Nguyễn Trương Quang 215013329 Research question 1, part d 100 5 Nguyễn Anh Tài 215019564 Research question 2, part a 100 6 Mai Chí Thành 215013391 Research question 2, part b 100 7 Nguyễn Huỳnh Duy Vũ 200121351 Research question 2, part c 100

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i

Topic 1

Chapter 1 describes major trends that are affecting human resource management Work in groups and then answer the following questions:

1 Based on the importance of HRM, describe the following trends affecting human resource management including:

a Technology trends b Globalization trends c Trends in how people work

d Workforce demographics and diversity trends

2 Choose a company in the field of food and beverage and fulfil the following requirements:

a Provide a brief introduction of the company

b What specific HR functions can company identify as being problematical?

c Identify the HR activities that company can convert into competitive advantage to compete with the other companies

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3 Trends in how people work 9

4 Workforce demographic & diversity trends 10

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iii

FIGURES

Figure 1 Statistics on social media recruitment of companies in 2022 (source: https://www.zippia.com/advice/social-media-recruitment-statistics/) 2 Figure 2 Statistics on organizations using mobile-enabled HRM (source: extracted and compiled from discrete sources: https://www.statista.com/statistics/1086172/mobile-enabled-hr-technology-applications-usage-worldwide/, Figure 4 Statistics on the status of cloud computing in HRM (source: https://www.statista.com/statistics/203410/global-forecast-of-cloud -computing-hr-service-revenue/) 5 Figure 5 Statistics on data analytics in HRM (source: https://www.grandviewresearch.com/industry-analysis/hr analytics- -market) 6 Figure 6 Statistics on globalization over decades from 1960 to 2020 (source: chart produced with data from https://www.macrotrends.net/countries/WLD/world/gdp

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v Abbreviation Definition

HRM Human Resource Management

HRBP Human Resource Business Partner

SHRM Strategic Human Resource Management

HCM Human Capital Management

DEI Diversity, Equity and Inclusion

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HUMAN RESOURCE MANAGEMENT Introduction

Ever since humans started to do business and trading, they have been involved in the discipline of human management In ancient times, it was about managing slaves and serfs During the Middle Ages, traders negotiated with craftsmen and skilled artisans to run their businesses Fast forwarding to the Industrial Revolution & Trade Union Era, factories practiced "laborers management" to handle their workers by indenture and contracts A few decades later, many firms adopted "personnel management" to cope with the established regulations on social responsibilities Over the past few years, the discipline again changed its name to "human resource management" (HRM), a term for managing human resources in an organization Up to now, HRM is still evolving to become an amalgam of organizational behavior, personnel management, industrial relations, and labor legislation, approached differently such as "Human Capital", "Strategic Human Resource Management", "Human Resource Business Partner”,

HRM is an essential part of any business It the process of acquiring, training, is appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns As society changes and technology develops, the art of managing humans in businesses continues to evolve This study aims to find possible evolutions of HRM in the digital epoch by analyzing the following trends affecting HRM: technology, globalization, how people work, workforce demographics & diversity With the information gathered from the first part, this study takes a further step by choosing a food & beverage company to analyze problematical HR functions and to identify HR activities that can convert into a competitive advantage to compete with the other companies

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HUMAN RESOURCE MANAGEMENT Trends Affecting HRM

In this section, the study presents the effect of the following trends: technology, globalization, how people work, workforce demographics & diversity on human resource management by describing it first and then discussing how it affects human resource management

1 Technology trends

In today's digital era, technology perhaps best characterizes the trends shaping human resource management Such digital technologies are driving this transfer of HRM functionality from HR professionals to automation The most noticeable are social media, mobile applications, gaming, cloud computing, and data analytics

1.1 Social media

Figure 1 Statistics on social media recruitment of companies in 2022 (source: https://www.zippia.com/advice/social-media-recruitment-statistics/)

Employers of many companies are increasingly using social media for recruitment, remarkably social networking sites such as LinkedIn, Twitter, Facebook, and Instagram According to the research conducted recently in 2023 by Zippia, 94% of recruiters use social media, in which 90% of them use Linked, the number one social media site for recruitment, 55% use Facebook, 47% use Twitter and only 11% start using Instagram

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1.2 Mobile applications

Figure 2 Statistics on organizations using mobile-enabled HRM

(source: extracted and compiled from discrete sources: https://www.statista.com/statistics/1086172/mobile-enabled- -technology-applications-usage-worldwide/ https://www.statista.com/statistics/1086hr, ,

https://www.statista.com/statistics/1085944/human-resources-applications-implemented-worldwide/)

In modern workplace, employees are now spending more time on their mobile devices during business hours Mobile functionality has emerged as a crucial buying criterion for HR leaders looking to upgrade the current system of working with desktops and laptops For instance, to monitor employee location and to provide digital photos at the facility clock-in location to identify workers HR apps like Firstup, Beekeeper, Staff base, Poppulo, provide employees with important information in one handy and easily accessible place HR personnels can perform mobile-enabled core HRM functions namely attendance & schedule, internal communication, payroll & benefits, talent acquisition, performance monitoring, …

As reported in an extensive investigation conducted by Statista on a total of 1892 respondents organizations representing a total workforce of 22.2 million employees and contingent workers from 2019 to 2021, 57% of firms are now incorporating mobile functionalities in more areas of HRM functions such as payroll & benefits, performance monitoring,… besides the traditional check-in, check-out mobile apps for staff The most significant trend is that many companies are now placing emphasis on internal communication through the use of mobile applications

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1.3 Gaming

Figure 3 Statistics on the effect of gamification on employees in HRM (source: https://www.zippia.com/advice/gamification-statistics/)

In recent years, more and more successful businesses are incorporating gamification1 into employee training and work experiences to improve productivity and engagement on the job The industry of gamification is projected to grow from $9.1 billion in 2020 to $30.7 billion by 2025 with the rise of gaming designed specifically for HRM such as Knack, Gild, True Office Learning, CuckooTech, Badgeville, … A popular case, My Marriott Hotel is a game that has been developed by Marriott International to recruit newbies It virtually simulates the whole experience to run a hotel business by allowing the candidates to run their own virtual hotel in which they design their own restaurant, purchase inventory, train employees and serve guests

Research by GrowthEngineering in May 2021 shows that on average, employees experience a 48% engagement increase with gamified work experience 70% of the 2000 largest companies, including conglomerates like Google, Facebook, Microsoft, Cisco, Deloitte, McDonald’s… in the world are utilizing gamification in HRM Meanwhile, companies with HRM gamification are 22% more profitable, 21% more productive and have 10% higher customer satisfaction rates

1 Gamification: the application of typical elements of game playing (e.g., point scoring, competition with others, rules of play) to other areas of activity to encourage engagement with a product or service

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1.4 Cloud computing

Figure 4 Statistics on the status of cloud computing in HRM

(source: https://www.statista.com/statistics/203410/global-forecast- -cloud-computing- -service-revenue/ofhr)

Over a decade, cloud computing has infiltrated many aspects of business as it 2

proves plenty of benefits With cloud computing, a recruiter or an interviewer can access resumes and other documents from anywhere at any time enabling a seamless hiring process Cloud computing also allows HR managers to restructure and automate data heavy HR processes like onboarding of new employees, timesheet submission, feedback, performance reviews, payroll and vacation requests processes In addition, it also reduces workload and improves accessibility as all information is stored digitally on a cloud server and can be retrieved anytime, anywhere On top of that, it provides data security by its nature Post the pandemic in 2021, companies have accelerated their move to cloud-based HR platforms The market blooms with the emergence of game changing HR cloud service solutions providers, typically HR Symphony, HR Cloud, Zoho People, Bamboo HR

In accordance with the report of Statistia, the global cloud service revenue from the human resource management segment in 2016 is nearly $15 billion The ISG survey of 260 companies worldwide found 46% using HR Cloud The findings were published as

2 Cloud computing: on-demand access, via the internet, to computing resources—applications, servers, data storage, development tools, networking capabilities —hosted at a remote data center managed by a cloud services provider, who makes these resources available for a monthly subscription fee or bills them according to usage

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part of the 2021 ISG Survey on Industry Trends in HR Technology and Service Delivery report Looking to the future, the survey found 57% of organizations expect to be using a subscription-based HR cloud solution by 2023

1.5 Data analytics

Figure 5 Statistics on data analytics in HRM

(source: https://www.grandviewresearch.com/industry-analysis/hr-analytics-market)

Over the recent years, the use of data analytics in HRM to make data-driven 3

decisions has become critical for monitoring and measuring organizational and employee productivity It has triggered a significant paradigm shift called HR Analytics, which involves collecting data and key metrics on the workforce and organization by using data analytics softwares like Power BI, Tableau, Deel, Rippling, Paycor… to gain valuable insights on HR functions

As stated in the HR Analytics Market Report by Grand View Research in 2022, the global HR analytics market size was valued at USD 2.7 billion in 2021 and is expected to expand at a compound annual growth rate of 14.3% from 2022 to 2030 Over 70% of executives consider HR analytics a main priority in their organization The HR functions account most for that priority are employee engagement (37% market share), recruitment (25% market share) and payroll & compensation (17% market share)

3 Data analytics: the process of statistical techniques, algorithms, and problem-solving to identify relationships among data for the purpose of solving particular problems

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2 Globalization trends

Figure 6 Statistics on globalization over decades from 1960 to 2020 (source: chart produced with data from

https://www.macrotrends.net/countries/WLD/world/gdp-gross-domestic-product)

With the statistics provided by Our World in Data, thanks globalization , the to 4

world’s GDP rose from $1,392 trillion in 2016 to $85,105 trillion in 2020, doubling each decade with the annual growth rate of 3,47% Governments dropped cross-border taxes or tariffs, formed economic free trade areas, and took other steps to encourage the free flow of trade among countries Multinational firms like Apple, Amazon, Alphabet, Meta, Tesla… make their business presence in many countries across the globe For instance, Apple has over two hundred suppliers and subsidiaries around the world in their supply chain Apple gets raw materials such as gold extracted from Peru, copper from Chile… then handles assembling products in China, Malaysia, Thailand by Foxconn Pegatron and or finally distributes them through Apple Reseller s.

PwC’s annual report of top 100 largest global companies in 2022 states that the market capitalization of the world's 100 most valuable companies increased from 21.4 trillion dollars to 31.7 trillion dollars between that year and March 2021, a 48% increase in just one year This proves that globalization provides many opportunities for business success and scaling growth

4 Globalization (in terms of business): refers to companies extending their sales, ownership, and/or manufacturing to new markets abroad

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Table 1 Areas where HR faces challenges of globalization in 2017

(source: re-arranged from https://pdfs.semanticscholar.org/5225/0cb58b021a14f403ff4b7ace0c78f4ad32dc.pdf)

However, globalization does not only provide opportunities but also imposes challenges on the prominent field of human resources The International Research Journal of Business Studies found in 2017 that HRM faces challenges in the areas: culture and norms (72% agree), political influence (65%), change management (56% agree) … Managing the “people” aspects of globalization is a big and complex task for HR managers of any company that expands abroad

Notably, globalization has brought many transformative changes to the field of recruiting Businesses that were once tied to local labor pools now have access to global options and there are numerous job seekers in the queue Social media and professional networking sites have allowed organizations to secure the very best workers and reap the benefits of a diverse workforce Many firms transfer operations abroad, not just to seek cheaper labor but to tap into new markets For instance, Apple saves around $100 per unit on the iPhone and $30-$40 on other products by manufacturing products in China Similarly, Samsung has manufacturing plants across the world including Vietnam, India, Brazil, Indonesia

At the same time, globalization vastly increased international competition The competitive advantage lies at the problem of sustainability as HR leaders have to coordinate their employees from all nations of the world into a single business linked by the vast network of communication technologies meanwhile lowering the costs and making employees more productive In the face of this intense competition, companies turn to Strategic Human Resource Management (SHRM) with the approach of aligning and linking all workforce with core strategies to optimize their human capital

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3 Trends in how people work

Based on the data provided by The World Bank, work has shifted from manufacturing jobs to service jobs worldwide, from 39,4% in 2000 to 50,6% in 2020 in terms of proportion of employment An interesting fact is that employment of service industry in higher income sectors like North America and Western Europe accounts much more (74,1% in 2020 for instance) for the total workforce and vice versa

Figure 7 Global on-demand workforce by country map in 2021 (source: https://data.worldbank.org/indicator/SL.EMP.SELF.ZS)

Workforce shifting towards service jobs in combine with globalization and technology has laid the foundation for the emergence of a new trends of employment, namely on-demand working On-demand workers are classified into different types: 5

independent contractors, moonlighters, temporary workers, business owners (self-employed), and freelancers Exploring Topics’s statistics in 2022 show that there are approximately 1.57 billion on-demand workers across the globe, and it accounts nearly 47% of the global workforce Top countries with the most proportion of on-demand workers are United States (78%), United Kingdom (59%), Brazil (48%), Pakistan (47%),… Fastest growing industries for on-demand working includes accounting, customer service, information technology, and surprisingly HR Worldwide, the total

5 On-demand working: the employment practice in which workers work when they can on what they want to work on, when the company needs them