Airline Industry Value Chain
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Assignment 2:
Human Resource Implications of Technological Change
Submission Date:
5th May 2007
Table of Contents
Introduction
Definition and Conceptual Framework for HRM Implications of Technological
Importance of HRM Implications of Technological Change to Managing People
HRM Implications of Technological Change
Main Themes on the Topic
2.2 HRM Implications of Technological Change
Implications of Technological Change on Job Design and Job Analysis
Implications of Technological Change on Human Resource (or Employee Planning)
Implications of Technological Change on Organisation Design
Implications of Technological Change on Recruitment and Selection
Implications of Technological Change on Training and Education
Implications of Technological Change on Compensation and Appraisal
Implications of Technological Change on Organisational Culture
Implications of Technological Change on Labour- Management Relations
III Summary and Conclusion
Introduction
Conceptual Framework for HRM Implications of Technological Change
Natalie Greenan (2003, p. 289) describes technological change as a series of changes affecting both factors of production and the way they are used and combined together. He further says that these changes are primarily qualitative. As far as the capital factor is concerned it involves replacing old equipment by new equipment, often incorporating more information technology than before. As far as the labour factor is concerned, it involves investing in new skills and competencies to meet new requirements. Consequently, as far as the use and combination of factors is concerned, it involves redefining the division of labour and the rules permitting effective co-ordination within the firm.
Implicit in the above statement, is that technological change spurs global, systemic and diffuse effects on the different aspects of a product- or service-rendering entity or business. Considering every organisation as a business providing a service or product, this piece of writing will make use of the Michael Porters Value Chain Approach to have a frame of reference for the different aspects of an organisation. This framework shall offer a conceptual basis for zeroing in on the human resource aspects of an organisation, interaction between that aspect and the rest of the components of an organisation, and the implications of technological change of HRM and its relationship to the rest of the organisation.
Given our assumptions, any organisation consists of primary process (inbound logistics, production operations, outbound logistics, marketing and sales, services) and secondary processes (procurement, human resource management, technology and firm infrastructure). All these aspects of a healthy organisation must fit each other. By definition, technological change affects principally the primary processes and the secondary processes are redesigned to be in line with the rest of the system of the organisation.
This piece of writing shall focus on the adjustments in the management of human resources that have been prompted by technological change in organisations in the recent past and the future. In the next section, the paper first considers the importance of the human resource implications of technological change to managing people. The section thereafter states the main themes in the topic and the final chapter delves deeply into the each of the themes highlighted in the previous chapter.
Importance of HRM Implications of Technological Change to Managing
People
As technology determines how the inputs of production, including labour, are combined in order to produce outputs, when technology changes, the manner in which labour is combined with the other factors of production changes. Therefore, it is extremely important for an organization to understand the implications of technological change on the management of its human resources. Once the organisation is able to do so, the organisation is able to seek out, accept or reject new types of technology that may assist it to attain its business objectives.
HRM Implications of Technological Change
Main Themes on the Topic
Stone (2002, p. 13), states that HRM involves the acquisition, development, reward and motivation, maintenance and departure of an organisations human resources. He further states that it can be dissected into the activities stated in the diagram below:
Figure 1: Porters Value Chain and Human Resource Management (HRM)
Human Resource Management
Job Analysis
Human Resource Planning or Employee Planning
Employee Recruitment
Employee Selection
Performance Appraisal
Human Resource Development
Compensations
Benefits or Rewards
Industrial Relations
Firm Infrastructure
Technological Development
Human Resource Management
Procurement
Inbound Logistics
Production Operations
Outbound Logistics
Marketing & Sales
Services
This