1 Twenty-first Century Human

Resource Management

The public sector is about service. It is about community and making a difference. I
would rather work for state or local government and make a real contribution to my
community than make gobs of money working for a corporation that has no
understanding of the various elements of its own community. I made the right decision. —
Anonymous Harvard Business School MBA graduate

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The arrival of the third millennium now is a reality and so is the need for twenty-first
century human resource management. Yet many human resource practitioners,
especially in the public sector, appear unprepared for the challenges they will
experience over the next quarter century. Our society faces immense transformation,
much of it caused by global, technological, demographic, political, and economic
forces of change. Lavigna and Hays (2004, 238) confirm this concern: “At a time when
governments need to be most adept at luring talent to the public service, their ability
to do so has rarely been so constrained and complicated by economic, social, and
organizational pressures.” Our transition from an industrial to a knowledge-based
society is still in its infancy. For example, Ray Kurzweil indicates in The Age of
Intelligent Machines that America is less than 1 percent into the job loss it will
experience due to the emergence of electronic intelligence. Samson notes also that
within the next 50 to 100 years we will experience

3
a transformation of jobs based on electronic intelligence beyond things we can even imagine
(Marshall 2003, 23). Change is upon us as never before. Local governments must address
these challenges and identify innovative ways to sustain high-quality services; otherwise,
they will lose legitimacy in the eyes of the public they serve.

Public organizations and their human resource staffs must develop and adapt innovative
human capital. All sectors, whether public, not-for-profit, or private, face the need for
creating “organizational learning cultures.” According to John Luthy (2000, 20), organizations
exhibiting learning characteristics seek improvements at all levels and have more initiative,
creativity, spirit, ability to collaborate, productivity, and quality than those that remain static
(i.e., those that maintain traditional management practices). Unfortunately, Peter Senge’s
(1994) research indicates that the public sector’s utilization of learning cultures has not been
effectively promoted nor actively practiced. Learning cultures facilitate the necessary
adaptive capacity that organizations need in order to succeed in increasingly complex and
competitive environments. For many organizations (including those in the public sector), a
culture of learning, growth, and adaptation to change will constitute, over the next quarter
century, the difference between success and failure. Sustaining acceptable productivity is no
longer sufficient for today’s public organization. Citizens demand more from government, and
if more cannot be delivered they will call for change in either the leadership of the
organization or the ownership of service production; that is, the public will demand the
privatization of public services. As Stephen Covey (2004) states, service levels and quality
today must exceed the expectation of customers if organizations hope to remain a viable
force in the marketplace. Local governments must strive to achieve similar outcomes so their
legitimacy will not be questioned nor their survival threatened.

American citizens are impatient consumers of government services. They expect

government, at all levels, to provide high-quality services in a timely manner and within
existing resource bases. The lethargic response in early September 2005 by the U.S. Federal
Emergency Management Agency (FEMA), following the devastation of Hurricane Katrina in
New Orleans and other southern gulf coast communities, demonstrated the level of public
wrath that results when expectations of timely service delivery are not met. Clearly, meeting
these expectation levels challenges public workforces. Such pressures mandate increased
program innovation, higher public employee commitment, better program planning, and
enhanced coordination across interagencies of government. Unfortunately, what worked well
in the past becomes the road map for doom for tomorrow’s public sector unit and its human
resource system. Citizens demand quality services, even though their trust and expectation
that government can deliver has dwindled over the past half-century and remains low today
(Thompson and Radin 1997).

Public sector human resource systems today also face internal questions of legitimacy. A
disturbing paradox exists for many public sector human resource units. At a time when
human resource expertise is most needed, operational staffs least desire it. In many local
governments, department supervisors and their employees detest their human resource
management units. Some view human resources as “those people who do things to us”
rather than “those professionals who do things for us.”
 As Lavigna and Hays (2004) note, job applicants often equate applying for a public position
with visiting a dentist, except that the pain of the application process persists longer.
Movement beyond this obstructionist perception (and in some instances reality) requires
both a shift in the mind-set of the workforce and, more importantly, an alteration of the
human resource unit itself. This entails more than a complete and thorough reexamination of
human resource processes, practices, and policies. It warrants a cultural transformation of
human resource management with an eye to service, rather than compliance, within the
organization.

WHAT IS HUMAN RESOURCE MANAGEMENT?

Human resource (HR) management1 consists of dedicated professionals working
cooperatively with other talented organizational (and community) members to achieve the
organization’s vision, mission, goals, and values. As such, HR management operates as a
service unit for other operational units. HR strives to develop policies, plans, programs, and
initiatives that advance other working units’ human capacity and their ability to provide high-
quality products and services to customers, clients, or citizens (in the case of government).

HR began as personnel administration. Many of the same tasks that personnel

administration units coordinated in the past continue to be part of HR management today.
Chapter 2 will discuss more comprehensively the three levels of HR management.
Operational-level HR (i.e., the work of coordinating personnel functions on a day-to-day
basis) incorporates many of the traditional personnel administration functions. Today,
however, HR systems cannot simply focus on coordination of the organization’s human
capital needs in a present sense. HR units increasingly are moving toward serving in a
strategic capacity, assisting other organizational units to identify and reward talent, as well as
identifying methods and strategies for improving organizational outcomes.

HUMAN RESOURCES’ SIX CORE VALUES

Strongly held and effectively practiced values significantly influence the quality of HR services
offered to individuals seeking professional assistance. These values must be living standards
that guide HR practitioners’ policies, attitudes, actions, and behaviors. Progressive personnel
units’ principles drive the team’s responsiveness to internal customers (i.e., those
departments and people that HR assist in their organizations) and external customers (e.g.,
the media, individuals seeking employment information, and other units of government). The
six core values fundamental to high effectiveness and to quality public sector HR units are:

1. Responsiveness to the public’s will

2. Social equity
3. Mission-driven focus
4. Skills-based competency in employment practices
5. Professional human resource competency
6. Ethically based organizational culture
RESPONSIVENESS TO THE PUBLIC’S WILL
The principal responsiveness to the public’s will demands that public employees act in the
citizens’ best interest. The public’s will is determined through the electoral process and
expressed through public policy decisions offered by their elected representatives. In this
instance, the public servant’s actions ultimately follow the policy directives of elected leaders
unless some compelling reason dictates otherwise. Compelling exceptions might include
officials’ attempts to circumvent existing laws, actions patently serving private interest or
benefit at the expense of the public’s good, and situations violating the ethical or
professional standards of one’s profession. In these circumstances, public employees face
difficult professional (and personal) decisions. Voicing opposition (e.g., whistle-blowing) to
anticipated or actual practices may be one path of action. A second recourse is to remain
quiet while resigning one’s position with the organization. A final approach may be to bring
questionable practices to the attention of leaders (and, if necessary, legal authorities) while
remaining a force for meaningful change. Each whistle-blowing scenario requires personal
fortitude and a strong character, as individuals experiencing these circumstances often suffer
greatly for maintaining high public standards.

SOCIAL EQUITY
The second value, social equity, stresses the fair treatment to all members of society,
including employees (and protected group members seeking entry) in public organizations.
Social equity, in a HR context, focuses on the employment-related decisions affecting
protected class groups (e.g., women, aging employees, the disabled, veterans, and people of
color and other ethnic affiliations). Employment-related actions include recruitment and
selection practices and outcomes, promotion and demotion decisions, training and
development policies and programs, employee discipline processes, and downsizing,
outplacement, and termination strategies.

HR systems serve as gatekeepers of fair treatment across competing interests. Arbitration

of conflict here can be a most formidable task, as social equity issues often come in direct
conflict with the skills-based principle (discussed below). In addition, employee-related
decisions often result in zero-sum outcomes (i.e., one party wins while others lose), raising
the likelihood for conflict (Thurow 1980). Intraorganizational harmony may become the
casualty of organizational decisions. Frequently, nonwinners in these zero-sum decisions
place the blame on HR units and maintain high resentment for officials centrally placed in
such decision-making authority.

MISSION-DRIVEN FOCUS
Over the past quarter century, public organizations have incorporated mission statements as
an integral component of their management planning process and organizational philosophy.
Mission statements give organizations purpose, vision, and meaningful directions for seeking
collective agency accomplishments. These benchmarks also serve as the barometer of
mission-driven success. Traditionally, organizations have viewed efficiency and effectiveness
as measures of success. Paradoxically, organizational activities can be both efficiently
 administered with desired outcomes yet fail to achieve an organization’s purpose and longer-
range mission. Paraphrasing a quote that the author read years ago, “A speeding train
moving in the wrong direction gets nowhere fast.” Thus, HR units play a significant role in the
identification and attainment of the organization’s mission by assisting in the identification of
human capital trends and aiding departments through necessary organizational restructuring.
Furthermore, HR helps employees gain new skills and leadership development. Finally,
through effective human capital planning, HR assists employees to acquire the requisite
talent needed to succeed in executing policies, plans, and programs that sustain the
organization’s mission.

SKILLS-BASED COMPETENCY IN EMPLOYMENT PRACTICES

The principle of skills-based competency relates to the identification and selection of
individuals with the demonstrated talents and capacity to function effectively in the position
they hold or seek. Typically, a person’s qualifications for employment are determined
through a combination of educational attainment, position examinations predicting high job
content knowledge, and an on-the-job demonstration of job abilities. Job content-based
testing and appropriate skill-based selection techniques seek to offset the heavy use of
politically based hiring in public sector. Past patronage selection systems were criticized for
selecting job applicants based on whom the applicants knew rather than what they knew; a
plum job, for example, might go to an unqualified long-time political contributor to the
recently elected mayor’s campaign or a lifelong associate of a powerful local politico. In
contrast, the principle of skillsbased competency ensures that hiring a professional and
talented public employee, such as the city’s next human resource director, will be
determined according to the applicant’s relevant job knowledge, past indications of
performance, and demonstrated successes.

PROFESSIONAL HUMAN RESOURCE COMPETENCY

HR practitioners also aspire to attain professional skill competency. In this profession, one’s
actions impact the lives of others on a daily basis. HR decisions affect who is hired, the
content of training and development afforded to employees, and the nature of measuring
performance levels in the agency. In addition, these decisions influence the distribution of
organizational resources, including employee compensation and benefits along with a myriad
of other critical factors that affect employees’ lives both on and off the job.

Personnelists have a professional and ethical obligation to maintain professional

competency in their positions. Recent Society for Human Resource Management (SHRM) data
indicate substantial growth in the number of professionals attaining human resource
management certification. SHRM’s HR Certification Institute (HRCI) offers three certification
programs: the Global Professional in Human Resources (GPHR), the Senior Professional in
Human Resources (SPHR), and the Professional in Human Resources (PHR). The GPHR and
SPHR include experienced HR professionals with typically six to eight years of HR
management practice. Both require time in service experience and successful passing of a
written exam. The GPHR is designed for international HR specialists, while the SPHR applies
 primarily to the U.S. market. The PHR serves as an entry-level certification program and
requires two years of HR professional work experience and successful passing of an in-depth
exam. As of October 2010, approximately 108,000 HR professionals in more than 70 countries
worldwide had attained one or more of these certifications (HRCI 2010). Growing attainment
of these certifications demonstrates that HR staffs take their own professional development
seriously.

ETHICALLY BASED ORGANIZATIONAL CULTURE

The final HR value, creating standards for improved ethical behavior in public organizations,
ranks among the most significant concerns in today’s public sector environment. The
National Association of Schools of Public Affairs and Administration (NASPAA), for example,
has adopted curriculum standards for ethics training as part of its recommended coursework
provided at schools possessing NASPAA accreditation. HR officers frequently face difficult
ethical issues in their work. They must contemplate their own personal ethical values in
relation to those exhibited by their organization and its executive leaders.

Value-driven HR management principles strengthen the attainment of an organization’s

goals and mission. Moreover, these six core values influence the development of the type of
positive and enduring cultures that HR management systems need in order to develop
sustainable policies that improve twenty-first century workforces as they tackle dynamic
forces for change.

HISTORICAL EMERGENCE OF HUMAN RESOURCE MANAGEMENT

Today’s American organizations face immense change. Employees often claim that “the only
constant we face is the certainty of change.” In reality, public organizational change has
always occurred, but in recent decades its magnitude has rocketed exponentially. Historically,
pressures forcing change and organizational adaptability have been common in the American
economic fabric. America’s Industrial Revolution, commencing in the mid-nineteenth century,
created technological advances, especially in machinery and harvesting equipment. Such
technological advances reduced the need for manual labor on America’s farms. Many
displaced workers (including freed slaves) fled to American cities, hoping to create new lives
and to locate new employment. As a nation in transformation from an agricultural to an
industrial society, America was challenged to design new techniques for managing growing
pools of workers. American government also sought improved organizational structures and
practices to deal effectively with its growing urban centers (like New York, Boston,
Philadelphia, Chicago, and Saint Louis). America needed better government to sustain its
growing national economy.

At the start of the twentieth century, professional management principles, like

those espoused by Frederick Taylor in his “scientific management” theory, began to be
applied in American industry and government. The call for increased professionalism in
management applications significantly influenced changes in management philosophies and
practices. Woodrow Wilson’s seminal article in 1887, “The Study of Administration,” for
example, heightened awareness of the need to run government in a “business-like” fashion
with improved precision and increased organizational efficiency. Other events also created
opportunities to transform governmental practices. The assassination of President James
Garfield in 1881 by a disgruntled civil servant applicant served as a major catalyst for reform,
resulting in the passage of the Pendleton Act. This act, also known as the Civil Service Act of
1883, created the U.S. Civil Service Commission. One of its primary goals was to create a
system to instill merit principles into the process of hiring in place of political patronage.
Patronage hiring had gained growing acceptance in government since Andrew Jackson’s
election as president in 1828. American society, however, was changing rapidly by the end of
the nineteenth century. As its urban centers developed and formal organizations grew, so did
the need for professional staffs to bring about greater organizational efficiency and
accountability, to reform government at all levels, and to create systems for facilitating
growing HR needs in these organizations.

Ironically, HR management’s significance grew at the beginning of the twentieth century as

a result of this industrial expansion. Initial adoption of personnel departments occurred
between 1900 and 1910. Early application of personnel practices was most common in
rapidly growing economic sectors—especially in the railroad and steel industries.

Personnel staffs, policies, and functions expanded as business and government developed
in America. Personnel, as a professional discipline, widened as social science research began
recognizing the significance of human behavior, social and group interactions, and the roles
they played in achieving desired organizational outcomes. Elton Mayo and Fritz
Roethlisberger’s research at Western Electric’s plant in Hawthorne, Illinois, during the 1930s
led to the “discovery” of the Hawthorne effect. Their research originally sought to determine
the effects of plant lighting variations on worker productivity. Ultimately, they discovered
that lighting did not significantly affect performance outcomes as much as did behavioral
changes in the work productivity of employees, who were under study. These findings
suggested that the social needs of workers influenced outcomes as much, if not more than,
the workplace design or standard operating procedures. In this instance, performance
improved as a result of the employees feeling a part of a special group under examination.
Thus, the Hawthorne Effect suggests that social factors and the treatment of people
significantly influence performance outcomes and must be considered when assessing work
structure and design. Their work spawned the human relations movement following World
War II. American personnel departments’ scope of responsibilities also increased with the
expansion of America’s labor movement in the 1930s and 1940s. The enactment of the
National Labor Relations Act of 1935 (also known as the Wagner Act) strengthened workers’
rights and legitimized collective bargaining in many private sector settings. Furthermore, the
introduction of the Fair Labor Standards Act of 1938 required regulation of minimum wages,
overtime pay, and child labor. Enactment of these federal laws created further demand for
personnel specialists capable of ensuring workforce compliance with federal and state
regulations.

Personnel systems experienced smooth growth and relative stability from the end of
World War II in 1945 through the early 1960s. Unprecedented growth occurred in the
American economy during this period with substantial increases overall in state and local
government employment. HR–related legislation intensified during President John F.
Kennedy’s administration (1961–1963). It erupted with President Lyndon B. Johnson’s Great
Society initiatives. The 1960s could be characterized as the high point for the development of
landmark civil rights legislation. In particular, the Equal Pay Act of 1963, Title VII of the 1964
Civil Rights Act, and the Age Discrimination in Employment Act of 1967, all antidiscrimination
policies designed to enhance minority- and gender-based social equity, influenced further the
demand for personnel specialists. Judicial activism also created a need for additional
expertise. This became especially true for labor-law attorneys, who could be called on to
counsel management regarding changes in personnel regulations and strategies for
remaining in compliance with increasingly complex and taxing regulatory policies.

Societal confidence in government began to erode during the middle 1960s and continued
in the 1970s. Simultaneously, the conservatism movement grew while antigovernmental
attitudes developed. Growing state tax revolts in California, Texas, and Ohio exemplified
distrust of government. California’s Proposition 13 referendum, approved by voters in June
1978, cut California property tax rates by as much as 30 percent. It also placed limits on
future tax rate increases. Within five years of Proposition 13’s passage, nearly half the states
had placed similar restraints on lawmakers’ taxing authority (Moore 1998). These actions
forced local Californian communities to rethink (i.e., reinvent) service delivery strategies and
community priorities due to the dramatic revenue shortfalls they created (Osborne and
Gaebler 1992). Declining local revenues forced greater focus on entrepreneurial methods for
delivering local government services. Local government personnel systems were tested
during this period. Less progressive systems that could not adapt quickly enough were
perceived as superfluous.

In the 1980 presidential campaign, Ronald Reagan gained significant political support when
he claimed, “Government is not the solution to the problem. Government IS the problem”
(Quotes for All 2005). Criticism of affirmative action (i.e., programs to facilitate increased
workforce participation and upward mobility of minority members) also increased. Regents v.
Bakke (1978) is one example. Alan Bakke, a Caucasian applicant to the University of
California-Davis medical school, was twice denied admission. At the same time, the university
admitted minority candidates with lower qualifying standards (as determined by
undergraduate grades and medical school entry examination test scores), utilizing affirmative
action policies. In response, Bakke filed a “reverse discrimination” lawsuit. Ultimately, Bakke
was admitted to the medical school (independent of judicial intervention), while the U.S.
Supreme Court upheld America’s affirmative action policy. Nevertheless, this case served as a
focal point and catalyst for criticism of affirmative action programs and called into question
the legitimacy of affirmative action applications. Norma Riccucci (1997, 57) notes that,
“almost since its inception, affirmative action has been pummeled by attacks from the
citizenry, scholars, and even individual lawmakers and jurists. Efforts to curb discrimination
(i.e., in the form of equal employment opportunity—EEO— programs) have been subject to
the whims of hiring authorities and policymakers.” Riccucci also notes that the 1990s
witnessed growing grassroots efforts to dismantle all types of affirmative action programs.
The 1996 California Civil Rights Initiative (CCRI, also referred to as California Proposition 209)
asked state voters to determine whether “the state shall not discriminate against, or grant
 preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity or
national origin in the operation of public employment, public education, or public
contracting” (American Civil Rights Institute n.d.). Although opposed by the Clinton
administration, Proposition 209 received the voters’ approval with 54 percent of the vote.
This law limits preferential treatment in virtually all of California’s public sector, including
state and local governments, public schools (including California’s public universities and
community colleges), special districts, and other political subdivisions. It is noteworthy that
this law does not apply to the private sector, which found increased diversity in its
organizations beneficial in opening new markets and better understanding new customers’
consumption desires and service needs.

The last two decades have witnessed further transformations of HR management

practices. This period can best be characterized by (1) the devolution of state and local
government civil service systems and (2) the growth of decentralized applications of HR at
the operational level. The State of Georgia’s civil service reform in 1996 serves as the best
recent example of civil service system reforms. In effect, the state dismantled its civil service
system and the protections afforded new employees. All new hires beginning work after July
1, 1996, would serve on an “at will” basis (Gossett 2002). “At will” means that they serve at
the pleasure of their superiors. They can leave “at will,” without notice, but their
employment also can be terminated at the will of their employer. This change lessened
protections for new employees while increasing employment flexibility. Ultimately, this
reform gives Georgia state government greater latitude to decrease the size (and cost) of its
workforce.

The use of the “new public management” (also known as “New Public Administration”)
principles—which focuses on improved public service efficiency through greater market
competition—also has had considerable effects on HR practices. Some personnel activities,
such as the selection and hiring of new employees, have been devolved to operating units.
This change grants these units greater control over the hiring of individuals, as well as often
reducing the time necessary to bring new selections on board. Lavigna and Hays (2004, 240)
note that “widespread initiatives have been undertaken to ‘de-bureaucratize’ HRM by
eliminating unnecessary rules and regulations.” In May 2010, the U.S. Office of Personnel
Management (OPM) launched a new initiative designed to streamline the federal
government’s recruitment and selection system. Two primary goals of the new hiring process
are to reduce the burdens placed on job applicants seeking employment and to reduce the
time it takes for agencies to make hiring decisions (Crum 2010). Ultimately, reforms like these
being initiated in OPM, while painful for traditional HR operations, will both advance the
image of HR management and facilitate the needs of operating units in an increasingly
competitive labor market. Thus, HR management, by relinquishing some bureaucratic power
and control, gains immense strength providing assistance in other areas, like strategic
workforce forecasting, that are more appreciated and relevant to the organizations it serves.

TWENTY-FIRST CENTURY WORKFORCE DEMOGRAPHICS

AND DIVERSITY

To succeed in the twenty-first century, America’s workplace must embrace the challenges of
a new economy—this includes knowledge of how people work, where they work, and how
they balance professional and family needs (Chao 2001). Traditional paternal protections,
such as stable employment for workers in return for their loyalty and commitment to the
organization, no longer exist in many workplaces. Even the concept of tenure (i.e.,
employment for life) that public organizations used in the past to attract and retain public
servants is fading. Today, the average thirty-four-year-old American employee already has
worked for nine different companies during his or her brief career (Chao 2001).

Employee organizational trust is disintegrating. Diminishing job satisfaction, motivation,

and long-term organizational commitment in many workplace settings reflect this change. It
should come as no surprise that the traditional psychological contract between employer and
employee, whereby the employee relinquishes decision-making authority to the boss in
exchange for job stability and progressive promotions based on seniority, is dying, if not
dead. Workers’ attitudes, especially among younger cohorts, differ significantly from those of
earlier generations (Kaye, Scheff, and Thielfoldt 2003). Younger workers, especially millennial 2
employees (born between 1977 and 1997) currently entering the workforce, demand greater
decision-making involvement and control over their work assignment and work environment.
Paul Light’s research suggests that today’s youth are intolerant of “thick hierarchies, rule-
bound processes, and limited opportunities for meaningful work [that] keep government
from offering the kind of challenging work necessary to draw and retain top people” (quoted
in Frisby 2003, 10). Clearly, many will “walk” (i.e., voluntarily resign their positions) if shared
work autonomy is not granted. Moreover, their primary commitment is to their own
professional skills development, not to their employers. Many younger generation workers
believe that those who maintain high loyalty to their organizations are fools. They witnessed
their parents’ loyalty being disregarded during frequent American corporation downsizing
during the 1980s and 1990s. They refuse to fall for the same “loyalty ruse.” Thus, retaining
high-quality human capital today is no longer simply a matter of providing better
compensation. This remains a necessary condition but an insufficient strategy. HR planners
must think more creatively, addressing work assignments and the developmental needs of
their employees. They also must consider their employees’ broader familial needs. In
particular, an organization must balance employees’ work with their family obligations.
Achieving such balance is critical, requiring due diligence of HR systems. Without family
friendly working initiatives in place, sustaining worker satisfaction, organizational
commitment, performance outcomes, and the organization’s human capital will be difficult, if
not impossible, to achieve.

DEMOGRAPHIC CHANGE AND JOB SHORTAGES

Demographers researching American population trends of the past two decades have
predicted skills shortages in critical occupational fields in the near future. Levine and Kleeman
(1986) refer to this situation, as it relates to the public sector, as the “quiet crisis.” This term
epitomizes their concern for the federal government’s increasing inability to recruit,
motivate, and retain high-quality civil servants. Recent economic slowdowns have moderated
 in some occupational fields. An American Association of Retired People’s (AARP) 2008 survey
found that approximately 25 percent of respondents age forty-five years and older indicated
that they might delay early retirement if economic conditions did not improve (Fox 2010).
Nevertheless, Department of Labor economists still project workforce shortages caused by
skills gaps in some occupational areas in information technology (Fox 2010). Progressive
municipal HR systems, like the City of Phoenix, recognized this fact early, especially relating
to the hiring and retention of its information technology (IT) staff. Wisely, it adjusted city HR
policies to compete more aggressively to attract the best talent in the marketplace (Lan,
Riley, and Cayer 2005). Applicant availability is not the issue for Phoenix as many job seekers
continue to apply for open positions. Rather, Phoenix’s concern is locating and acquiring
individuals with the best talent and skill sets needed to excel in a twenty-first century
organization.

Local government executive leadership also might be in short supply in the near future.
Green (2000) notes that in the near future local governments will be adversely affected by
retirements. Sam Ehrenhalt (now deceased) served as a Senior Fellow at the Rockefeller
Institute of Government. His findings, as reported by Green (2000, 439), indicate that “the
proportion of older government workers aged forty-five to sixty-four has risen from 36.8
percent in 1994 to 41.7 percent in 1998.” Furthermore, the International City/County
Management Association (ICMA) expresses concern about the aggregate aging of local
government city managers. The association expects an increasing percentage of these leaders
to retire over the next decade. The ICMA recently noted: “The local government
management profession is approaching a crossroads as baby boomers that comprise the
majority of local government managers approach retirement at a quickening pace, and
statistics indicate that the greatest numbers of retirees will come from the managerial ranks”
(ICMA n.d., n.p.). Furthermore, it expresses concern for a declining number of youth entering
the city manager profession, suggesting a potential void in talent once current executives
vacate their positions. The ICMA has repeatedly heard from its members “that today’s young
people have a limited knowledge of how their communities operate and lack an interest in
pursuing careers in local government management” (Frisby 2003, 8).

WOMEN IN THE WORKFORCE

Gender redistribution in America’s workplace has significantly evolved in recent years.
Between 1970 and 2004, women increased their labor force participation from 43 to 59
percent (Bureau of Labor Statistics ([BLS] 2005). The days of white-maledominated staffs
have disappeared. Today, the workforce is more gender-blended. BLS gender-related
employment statistics bear out the radical transformation that occurred over the past
quarter-century. Today, women account for about one-half of America’s labor market.
Historically, education has been strongly linked to both employability and upward
employment mobility. Among 2004 U.S. high school graduates, more females enrolled in
college than their male counterparts. Of this graduating class, 72 percent of females entered
college compared to 61 percent of male graduates (BLS 2005). Assuming this trend continues,
women are likely to ascend to positions of higher authority and responsibility in the coming
years. Some evidence exists supporting this observation, as women’s earnings—as a
 percentage of men’s earnings between 1979 and 2004—increased from 62 to 80 percent (BLS
2005). Recent findings of the Institute for Women’s Policy Research (2010), however, indicate
that progress has slowed considerably in recent years: median weekly earnings of full-time
working women have been essentially flat since 2005.

Balancing family and work obligations has become an increasingly formidable burden for
American workers. Family friendly organizations, which allow the flexibility and assistance for
individuals to balance these competing work-family obligations, position themselves at a
competitive advantage compared with more traditional organizations. Working women, in
particular, value flexible policies and initiatives that allow them to function dually as a
contributing parent and productive employee. Position attractiveness increases considerably
when the organization provides family friendly policies such as flexible working hours, flexible
leave programs, on-site childcare programs or childcare referral assistance, and other desired
benefits and perks.

ETHNIC DIVERSITY
America’s population continues to become increasingly diverse in terms of both race and
ethnicity. As of August 2008, minorities accounted for one-third of the U.S. population. If
growth trends continue, this group will reach majority population status by 2042 (U.S. Census
Bureau 2010). In terms of the federal government’s work composition, as of June 30, 2010,
non-Hispanic whites constitute 66.5 percent of the permanent U.S. federal government’s
civilian workforce, with the remaining 33.5 percent being minority status members (U.S.
Office of Personnel Management 2010).

By 2100 the Caucasian population will have shrunk to only 40 percent of the population
(Centers for Disease Control and Prevention n.d.). Today, African-American and Hispanic
populations are approximately equal, each group constituting 13 to 14 percent of the
population. The African-American population is likely to remain about the same at 14 percent
of the overall population. By 2050 the Hispanic population will account for 25 percent of the
population. Much of the growth in the Hispanic population will result from higher family
birthrates (relative to other groups) and the continuation of significant Hispanic immigration
from other countries (Klingner and Nalbandian 2003).

Changes in the nation’s population certainly will influence the racial and ethnic diversity in
the American workplace. Increased interest in diversity training, for example, is one outcome
of greater demographic diversity in the country’s communities as well as in its workforce.
Understanding cultural differences across social groups will be an important factor in
interacting with the public. The outcome of the beating of Rodney King in Los Angeles on
March 3, 1991, for example, demonstrates the need for better understanding of cultural and
diversity differences across social groups. Mr. King, an African-American driving under the
influence, led police on a high-speed chase. Ultimately, Los Angeles Police Department (LAPD)
apprehended King. Four of its officers beat King brutally during his arrest. A bystander
videotaped this incident and, subsequently, the video was broadcast repeatedly over national
newscasts. In 1992 the State of California tried the LAPD officers, with the jury verdict calling
for their acquittal. Los Angeles community race riots followed the decision. Eventually,
 federal trials for civil rights violations ensued with jury decisions finding two of the four
officers guilty of federal civil rights violations for which they served time in prison. The two
remaining LAPD officer gained acquittals of the charges.

Clearly, social equity legislation and judicial intervention since the 1960s have opened
doors of opportunity for ethnic minorities (and women) that were previously locked. The U.S.
labor market reflects greater minority participation today than ever before.

AMERICA’S AGING WORKFORCE

America’s population, like that of many developed nations, is growing older. As society ages,
HR systems logically are concerned about future staff availability. In addition, personnel
policies and planning must be crafted to deal with staffing transition. Common questions
asked in today’s large organization abound: How can we retain our senior talent? Where will
we find qualified applicants to replace this talent? How can we develop personnel policies
that can attract and retain our human capital? How do we legally protect the organization
against litigation associated with the aging process?

As society ages, the costs for health care and pension benefits will increase. HR strategies
must anticipate that over the next ten to twenty years, as the baby boom generation (i.e.,
those born between 1945 and 1964) ages, its members will seek favorable public policy
initiatives to protect their self-interests, both in the workplace and in general. Policies dealing
with aging must be factored into organizational strategies and planning to protect the
organization’s human capital investment, maintain desired productivity outcomes, and
sustain a smooth staffing transition. BLS data displayed in Figure 1.1 demonstrate the aging of
America over the past quarter-century.

HR systems can create procedures and plans to smooth the workforce lumpiness that will
be experienced between now and 2025. Progressive HR units already have begun addressing
these concerns, realizing the benefits of their actions.

CHAPTER SUMMARY
This chapter addressed the definition of HR management and the importance of its six core
values. The chapter also examined the historical factors and demographic
Figure 1.1 Aging of American Society
 41
40.7
40

39

Median Age (Years)

38.7

38

37

36
35.9
35
34.8
34
1975 1980 1985 1990 1995 2000 2005 2010
Observation Year

Source: Bureau of Labor Statistics (n.d.).

influences that have shaped HR practices in the past as well as in the twenty-first century.

The next chapter turns its attention toward specific activities and responsibilities found in
HR systems. A review of these major activities serves as a bridge for an indepth focus on each
of these activities in subsequent chapters.

KEY CONCEPTS AND TERMS

aging of America’s workforce Civil Service
Act of 1883

gender and ethnic transformations in the American workforce

HR Certification Institute and certification programs (GPHR, SPHR, and PHR) National
Association of Schools of Public Affairs and Administration (NASPAA) six core values of HR
management
U.S. Office of Personnel Management

PRACTICAL LEARNING ACTIVITIES

1. Break into small groups of three to five students. Identify one group member to serve
as spokesperson for the group’s findings. Discuss how diversity in the workplace has
changed the nature of managing people and reshaped the culture of most
organizations today. Reflect upon how a predominantly white and male organization
would differ from a robust organization that is diverse in terms of gender and
ethnicity. Also, consider the pressures that ethnicity and gender changes exert on
reshaping the practices and policies of HR systems today.
2. The instructor will identify and place each student into one of six teams. Each team
will review one of the six core values of HR management (see numbered list on page
5). Each team will discuss how HR management systems benefit by possessing
 significant levels of the value that it has been asked to review. For example, if the
group has been selected to assess an “ethically based organizational culture,” discuss
how highly ethical work units might differ from units lacking such ethical standards.
3. America’s workforce is aging, as is evident from a review of Figure 1.1. What is likely
to be the impact of aging in the workplace on future personnel policies, performance
outcomes, medical and health care planning, and succession planning? What can HR
systems do to facilitate organizational planning as they prepare to deal with the
effects of aging in the workplace?

NOTES
1.For the purposes of general discussion, the terms “human resources” and “personnel” will be used
interchangeably, even though distinctions between the two terms do exist.
2.Some of the other names attributed to this generation of workers are “digital generation,” “the D
[digital] generation,” “nesters,” “generation Y,” and “net generation.”

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