Thursday 19 April 2012

HRM IN A CHANGING ENVIRONMENT


A.  HRM in a Changing Environment
B.  New trends at work place

LESSON OVERVIEW
This lecture will primarily help students who intend to  be managers, deal effectively with the challenges of
managing people. Firms that deal with these challenges effectively are likely to outperform those that do not.
These challenges may be categorized according to their primary focus: the environment, the organization, or the individual.

A. HRM in a Changing Environment: The Challenges
Today’s organizations are facing challenges upon following levels:
i.  Environmental Challenges
ii.  Organizational Challenges
iii.  Individual Challenges
 
i.  Environmental Challenges 
Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance.  They include:  rapid change, the internet revolution, workforce diversity, globalization, legislation, evolving work and family roles, and skill shortages and the rise of the service sector.

Six important environmental challenges today are:
a)  Rapid change,
b)  Work force diversity,
c)  Globalization, 
d)  Legislation,
e)  Technology
f)  Evolving work and family roles,
g)  Skill shortages and the rise of the service sector

a)  Rapid Change
Many organizations face a volatile environment in which change is nearly constant. If they are to survive and
prosper, they need to adapt to change quickly and effectively. Human resources are almost always at the heart of an effective response system. Here are a few examples of how HR policies can help or hinder a firm grappling with external change:

b)  Work Force Diversity. 
All these trends present both a significant challenge and a real opportunity for managers. Firms that formulate
and implement HR strategies that capitalize on employee diversity are more likely to survive and prosper.


c)  Globalization.
One of the most dramatic challenges facing as they enter the twenty-first century is how to compete against
foreign firms, both domestically and abroad. Many companies are already being compelled to think globally,
something that doesn't come easily to firms long accustomed to doing business in a large and expanding
domestic market with minimal foreign competition.Weak response to international competition may be resulting in upwards layoffs in every year. Human resources can play a critical role in a business's ability to compete head-to-head with foreign producers. The implications
of a global economy on human resource management are many. Here are a few examples: Worldwide company culture Some firms try to develop a global company identity to smooth over cultural differences between domestic employees and those in international operations. Minimizing these differences increases cooperation and can have a strong impact on the bottom line. For instance, the head of human resources at the European division of Colgate Palmolive notes, "We try to build a common corporate culture. We want them all to be Colgate’s." 

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