Shadowing Practice: INTRODUCTION INTO HUMAN RESOURCES MANAGEMENT - LECTURE 01 - Learn English Speaking with Video

Human Resource Management 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.

It's the resource which is somehow linked to what? To people.

Okay?

Human resource management is about people.

What people?

Children?

No. Customers?

No. People inside a company, we We name these employees.

Okay, the problem with resources is that once you use resources, they get exhausted.

Okay?

So, a better term for this is maybe human capital.

Because once you use capital, if you use it the right way, it grows. as well.

But in practice, it's not so commonly used.

Some companies say human capital management, but it's not so commonly used.

I know just a few companies who say human capital management.

Most companies say human resource management, so that's why we stick to this term, okay?

So 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 could talk about this.

Which mega trends determine future challenges in HRM?

There are some mega trends out there.

The world is changing and this has a huge impact on what we do in human resource management.

And then I will show you a kind of overview about what is human resource management all about.

Okay, so So let's start with the first question.

Here is the definition.

No, I start with this.

Innovation.

This is one mega-trend.

Okay, you know what this is?

The old telephone.

One modern telephone.

A cell phone.

An iPhone.

What's next?

What comes after the iPhone?

Be sure that if Apple does not invent something which goes beyond the iPhone, Apple will lose.

Yeah?

It will be the case, definitely.

The iPhone or the smartphone in general, it's not the last thing.

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 we will say, Oh, do you remember?

We used a website called Google.

Yeah.

Old stuff.

That was so boring.

You had to type in a word and then you got a list.

We will laugh about it.

The same way as we love today about this telephone, and it looks nice, but we love about it.

We love about the BT Smartphone, for sure.

You will remember my words.

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 determine business and the world.

Yeah?

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 drive 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, we think about the e-vehicle.

So the engineers, the people in production, everywhere, 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 to knowledge work.

My grandfather worked with his hands, as most of your grandparents did.

They work 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.

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, yes.

You can order and you 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 changes.

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You all know these pyramids, yeah, these age pyramids show that we have more and more older people,

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there's younger people, this age pyramid which rather looks like a donor, yeah, a demographic donor.

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Here is a different slide, yeah, I think this is more relevant.

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What you can see here, this red line, These are those in the age of 25 to 34.

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And the question is, in 2015, in 2020, and so on,

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how many people will we have in this age compared to 2010?

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So here is zero, okay?

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Okay?

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But we'll see that until 2015 this population increases, so we will have more people in this particular age.

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And then the amount of people in this age will decrease.

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And as a rule of thumb, it's about 1% in a year.

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It's not 1% in a decade or 1% in a century, it's 1% in a year.

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And this is really traumatic.

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I mean, who of you has been in Istanbul already?

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You must go there, it's amazing.

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It's a young city.

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You walk through Istanbul, it's really young.

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Crowded up young people, it's party.

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And then you walk through Schweningen.

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Tuesday, 11 o'clock in the morning.

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And you will see the difference.

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Germany, yes.

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Old.

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And that's the same with many Western industries.

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Especially when you look at the group of 65 plus, this line, it's growing steadily.

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I look at the population 50 to 64, this one.

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It's growing in the next 10 years, 10-15 years dramatically.

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What does that mean for human resource?

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What does that mean?

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These people people will retire.

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When they will retire, you have to replace these people.

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Companies lose very experienced people in the next few years.

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A lot of them.

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So you have to have new people.

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But they are getting less and less.

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So this is the problem I talk about.

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What do you want to talk about?

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We have a demographic change, and it's the same in many Western industries,

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and this demographic change will lead to something that we call a talent shortage.

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Talent shortage?

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Fuck that, you know.

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There are not enough people out there, qualified people.

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And as I said, companies more and more need qualified people

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because the world is changing from the world where we work

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with the hands to the world where we work with the brain.

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So these are already two trends.

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And next trend, globalization.

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This is the term in global trade development.

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in the last few years and it's dramatically increasing.

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It's a global trade so we know that Germany is a company

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that primarily exports products and this is not only the case for Germany, I mean Germany is the leader in that,

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but it's the same, you have the same pattern for most other Western industries.

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So, today nations produce their products to export them.

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We got a global market.

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And this is really different today compared to let's say 10 or 20 years.

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So it's really changing.

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What does that mean for the people?

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If you look at the company, even a smaller mid-sized company here in the middle of Black Forest.

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It might be a small company, but you can assume that even a small company is in the middle of nowhere.

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They act globally because their customers are beyond German borders.

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So globalization is a key trend.

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There is a book which is really by Thomas Friedman, the world is flat.

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And he writes about globalization.

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And there was one story which I especially like.

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He said, you are no McDonald's drive-in.

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If you try to McDonald's drive-in in the States, you come to this place where you have to make your order.

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There's a person talking to you.

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You order me?

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And you assume that this person you just talk with is sitting in this restaurant.

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No, this is probably not the case.

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The person you talk with is sitting in India.

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There is no need that this person, which is taking the order, sitting in this particular restaurant.

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This is a person sitting in India, taking order for very different McDonald's restaurants all over the states.

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So give me one job, tell me one job which cannot be, let's say, outsourced, exported.

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Okay, hairdresser.

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But even butchers.

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A lot of things.

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And there's just a minor group of professions that can't be outsourced for other countries.

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That's really, really traumatic.

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So, we will have globally diverse teams and companies.

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The required skills of the employees change.

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20 years ago, it was really not necessary for university graduates that they had experience abroad.

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When I studied, that didn't mean a thing.

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Today, it's a must.

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And you are on the right track, because you will spend some time abroad.

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So, it became so important.

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This is something new.

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Another mega trend, we call it Web 2.0.

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When there is a Web 2.0, probably there is also a Web 2.0.

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What is that?

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You know, oh, no, the web, the internet.

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When the internet appeared, there was a very simple model.

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Institutions or persons, individuals, they had a website.

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It was mainly HTML website and others could read this site.

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One is producing the website and publishing the website and the others read the website.

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For instance, that was the very first generation of the web.

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You will still find a lot of websites that work in that way.

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The university website.

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But it's changed.

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Yeah?

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There's something which we call Web 2.0.

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The point is that, um, let's look at websites like Wikipedia.

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Yeah?

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Who is producing all this content on Wikipedia?

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Anyone can.

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Anyone.

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You can.

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Yeah?

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Everybody can write on Wikipedia, whatever you like.

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Whom of you has ever written, written, not read, written an article in Wikipedia.

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I'm a tennis player.

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You're a tennis player, yes, okay.

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Do it, it's a good experience.

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Write an article about your home village, or about a special about your I don't know.

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It's an interesting experience.

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Everybody can write everything.

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You share information on Facebook.

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Sooner or later you will be on websites like LinkedIn, Opsing, yeah, where you have your profiles and your contacts to others.

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Maybe some of you will Twitter, some of you will write blogs.

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So it's no more just a few institutions who provide content, it's the user who provides the content.

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And that's a major difference.

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You produce the content.

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It's not Facebook that delivers the content.

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Facebook only delivers the platform.

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You provide the content.

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So that's why we call it user-generated content.

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Generated, which is a content which is generated by the users.

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So the user became somebody who really took control about the Internet,

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about the content in the Internet.

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And that's really relevant for human resource management.

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Why?

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As we will see, the Web 2.0 really changed the way how companies hire people.

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We will see that social media Twitter, Facebook, LinkedIn, social media got a crucial role in this.

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We'll talk an entire session about this.

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We learned that the way how people in companies exchange ideas,

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the way they learn, the way they share their knowledge changed through Web 2.0.

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So just think about 20 years ago we didn't have all this stuff.

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I did study without the internet.

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I had my degree when I wrote my first email.

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You cannot imagine this.

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I did an experiment two years ago where eight students declared that they will not use the internet,

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neither internet nor mobile communication for one week.

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I can recommend to do this.

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Just skip all this for one entire week and you will experience that this is a different life.

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You feel it's hard, You feel isolated,

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you feel that you are really totally uninformed.

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You will suffer, but you will sleep more, you will read more, make more sports.

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So it's really traumatic.

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Okay?

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So Web2O changed the way how we communicate with each other, changed the way how we hire how people share their knowledge,

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it changes the way we spend our lives.

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And this is really relevant for human resource management.

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Another mega trend, value change.

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Earlier days, today. Which one is prettier? On the left.

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On the right.

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On the right.

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I think that's an old...

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I hope.

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I hope agreed.

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The role of women in society, in the professional world, totally changed.

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It's not only women.

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It's about everything.

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Our values change.

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What does that mean?

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Value is what is important to people.

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What is important to you?

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If I would ask you, take a piece of paper and write down three things which are important to you.

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And then think about your parents, your grandparents, and think about what were important to them when they were of similar age.

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If you just do this exercise on two little pieces of papers,

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you will immediately realize that what is important to you somehow differs from what was important to earlier generations.

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So, work totally changed.

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It changed what is important to the people.

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The role of people changed.

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The way we work, the way we communicate changed.

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Yeah?

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I mean, look at our university.

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The way we build relationships between students and professors did change.

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I mean, when I studied 20 years ago, we would have never dared to send a letter to a professor,

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because I was here, a small, unimportant person, in practice student, and then there was the professor.

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God!

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God!

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Today, we are more or less on the same island.

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Hey, you have a problem?

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Send me an email.

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Direct communication, open door.

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We even have a rock band.

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Professors and stewards together make loud and noisy and hard rock music.

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Couldn't I have imagined this 50 years ago?

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things change.

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That means that the way we shape our work really, really changed.

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We're gonna see this.

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Okay, so here's the kind of summary.

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I said there are five trends that really impact the world.

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Innovation, Demography, Globalization, Web 2.0, low value change.

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I think these are the five major trends.

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Of course, there are more trends in the world, climate change maybe or some others.

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But the important thing is that all these things,

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as I have indicated, have an impact on challenges that relate to human resource management.

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We'll talk about these challenges in much detail.

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We will need to acquire the right talents to be innovative.

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Give the right rewards, maybe in terms of compensation or other privileges.

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We have to support lifelong learning.

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It's not the case that you do your

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education and you finish and then you have the entire qualification that you need for the rest of your life.

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No, you will need to learn your entire life.

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You have to leverage employee potential, find their talents, support diversity.

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Of course, we are in a global world.

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The customers are global.

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We have to be global.

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We have to have women in leadership positions.

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So that means we have to have more diversity in the workplace.

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Build successors for key positions.

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We're going to talk about this in much detail.

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We have to retain and share knowledge because knowledge became key for most companies.

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Why? Because innovation.

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We have to shape attractive work conditions so that you really attract the right people so that they apply.

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Things change inside companies we have big security changes which we need to manage.

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I will talk about this for two sessions.

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We use latest technology even in HR.

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We use iPad, we use modern software to do human resource management related things.

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Of course we have to retain the best talent and so on.

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This list is not complete but you can see

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that from all these mega trends we can say that there are specific challenges which are special today,

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which were not as big 10 or 20 years ago.

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And we do all this at the end to ensure the competitive position, the competitive advantage of a company.

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Okay?

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So, here is the definition.

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Don't learn this by heart.

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But, if I would show you this definition in the exam, I could imagine asking you to explain this.

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Explain it in your own words.

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many things which we have written here, we have already discussed today.

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You know, the first part is easy.

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It's about management.

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Management, it's a term which you hear a lot of times during your studies and even during your entire career.

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Management.

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What is management?

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Whenever somebody says management, customer relationship management,

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quality management, health management, facility management, management, management.

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Management always means planned and controlled.

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Okay?

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Planned and controlled.

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So, or planned and controlled, in bracket, managed, or planned and controlled activities of an what?

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Organization.

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Why do I say organization and not company?

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Because, I mean, is the Red Cross, is that a company?

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No, it's an organization.

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It's an organization.

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This university is not a company, it's an organization.

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UNICEF, it's an organization.

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The UNO, it's an organization.

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The Christian Demographic Union, CDU, Germany, party, is an organization.

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But every company is also an organization.

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So I rather use this term organization.

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It's about planned and controlled activities of an organization.

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To do what?

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To build and maintain the relation between employees and the company.

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Or the organization.

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I'll be more concrete.

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Relations, what does that mean?

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I mean, at one point in time you apply, you want to work at a company,

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this is start of a relation.

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Or maybe the company wants to hire you, this is start of a relation.

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Then you work with a 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,

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and you get you get privileges you get money

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so this is a relation it's always about the relation and

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if you are strong the company wants to retain you doesn't want to lose you

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so this is all about this relation between the people and the organization.

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To do what?

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To meet organizations, objectives of the organization.

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Could be revenue, can be profit, can be whatever, quality and so on.

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But not only this, organizations are not only there to achieve the organization's objectives.

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The people work there to get something else,

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to learn, to feed the children, all this stuff, okay?

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So it's about both.

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Now, we will see this through the entire lecture.

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It's always about both, both sides.

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And these two things must be in balance.

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So, before we make a short break, here is an overview for the next two semesters.

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I name it HR landscape, HRM landscape.

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So, here is the organization,

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And the first thing we talk about is the HR strategy.

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What is necessary in human resource management in the upcoming years to succeed and to plan this accordingly?

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This is the starting point, we're going to talk about this.

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And from there, once we know how many people we need in the future, what kind of competencies we need in the future, blah, blah, blah, blah, blah,

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we start to acquire talents.

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Talent acquisition.

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Recruiting.

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Okay?

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How to hire people, how to find the right people,

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how to present the company as an attractive employer what we're going to talk about for I would say two

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or so sessions.

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Of course you all know the job ad but the job ad does not work for any jobs,

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especially for the most important jobs,

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the job ads, job advertisements don't work anymore because of what?

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Because of the talent shortage which I have just mentioned.

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So we have to have some different methods and strategies here.

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So once candidates apply, they will be selected.

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Imagine you have a couple of applications.

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You are in a lucky situation that you can choose among different applicants which one is the best.

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So for this we do interviews, we do assessment centers, tests and all this stuff.

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We're going to talk about this.

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What are the commonly used methods here?

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How can I tell whether a selection method is good or worse?

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And then people start working and get paid.

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We're going to talk about money, compensation and benefits.

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How can a company determine individual salaries, for instance?

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What are the commonly shared benefits in companies?

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And why do companies share benefits?

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Company car insurances and all this stuff.

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So we're going to spend one or two sessions around Camp and Ben as we say.

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Then, we walk over here.

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Nowadays people in companies have to learn.

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You will learn through your entire life.

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You will never stop learning.

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Once you feel that in your job you stop learning, quit the job.

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Really.

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Yeah?

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You have to learn every day.

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It's so important.

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Once you stop learning, you start to lose. So, learning.

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We're going to talk about training, how to set up a training, how to design a training.

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But we also talk about some alternative ways of learning.

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through the web, learning from others, informal learning and all this stuff.

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So learning is about the short-term knowledge acquisition, so to speak.

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It's about, I learned how to use Excel.

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I learned how to use a pivot table in Excel.

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The other thing is your long-term development,

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which is presented here, talent development.

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If you are strong in the company you work for,

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you might belong to the 5 to 10 percent people which are considered as high potentials,

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the most talented people in the company.

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And once you are identified As the most talented people in a company, you get some systematic support.

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You're going to learn, you will get some special challenges, you might get support by a mentor, a director, and so on.

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So we're going to talk about how companies build their future leaders.

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And how companies support the career of the most talented people.

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So, and that's it for this semester.

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In the third semester, in your fourth semester, we have quite a long break,

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we're going to talk about the workplace as such, how to shape the workplace in the future,

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how to retain talented people, we're going to talk about change management,

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and here we have all these things you need to have to run human resource management successfully.

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You have to have an organization, HR IT, IT is information technology,

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social media and HR controlling.

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So this is the entire picture and again my promise is

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that first this picture really reflects modern human resource management

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and you will be able to talk about all these things and you have a modern current understanding about all these concepts.

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