HUMAN RESOURCE MANAGEMENT

HRM IN A CHANGING ENVIRONMENT

OVER VIEW
Challenge of managing people If challenges addressed properly will outperform Challenges are around

Environment Organization Individual

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Organizational Challenges

Individual Challenges

ENVIRONMENTAL CHALLENGES

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges
External

Factors Beyond Control

Rapid Change Work Force Diversity Globalization Technology Evolving Work and family roles

Skills shortages & the rise of the service sector

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Rapid Change Organizations face volatile environment change is constant

To survive- Quickly respond to change

HR is at the heart of an effective change

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Work Force Diversity It is a challenge and real opportunity for managers

HR who addresses them are likely to prosper

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Globalization

The tendency of firms to extend their sales / ownership, & or manufacturing to new markets abroad or
Considering the whole world as a market

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Globalization

21st Century Challenge to compete global firms domestically and abroad

Weak response results in upward layoffs every year HR play significant role to compete head to head with foreign producers

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Globalization Firms try to reduce cultural differences between domestic employees and those in international process We try to build a common corporate culture. We want them all to be Colgaters
Head of HR Colgate European Division

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Globalization Some firms actively do alliances with foreign companies to take advantage of global markets

Such alliances require dedicated and highly trained staff Phillips made a joint venture with AT&T and making several key acquisitions These are because of HR strategies to gain world wide competitive advantage

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Legislations Help keep away from govt agencies, federal courts, stage courts and supreme Courts

Supervisory trainings to increase compliance and minimize complaints

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Technology Rapid technological changes in computer and telecommunication industries

According to one estimate One has to change their skills three or four times in his / her career The advancement has effected business including HRM

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Evolving Work & family roles The proportion of Dual Career (both partners work) are increasing every year

Women face double burden working at home and on job (42h & 30h to children)

Men 43h work and 12h home

Several companies are offering family friendly program gaining advantage in market

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Evolving Work & family roles Among well known firms Half of recruits are women but only 5% of the partners are women

Some companies Child care to facilitate women workers and flexible working hours

HRM IN A CHANGING ENVIRONMENT

Environmental Challenges Skills shortage and rise of service sector Service sector expansion due to consumer needs, tastes and preferences, legal and regulator changes, advances in science and technology eliminated different manufacturing jobs and changes the businesses organized and managed before

Companies are investing on employees to train and over come short comings of the education system

HRM IN A CHANGING ENVIRONMENT

ORGANISATIONAL CHALLENGES

HRM IN A CHANGING ENVIRONMENT

Organizational challenges refer to the concerns that are internal However, they are byproduct of the environmental forces no firm is in vaccum These include,

Competitive position (cost, quality, distinctive capability Decentralization Downsizing Organizational restructuring Self managed work teams

HRM IN A CHANGING ENVIRONMENT

Organizational challenges refer to the concerns that are internal However, they are byproduct of the environmental forces no firm is in vacuum Continued

Small businesses Organizational culture Technology Outsourcing

HRM IN A CHANGING ENVIRONMENT

Organizations can have competitive advantage by,

Controlling costs
Improving quality

Creating distinctive capabilities

Restructuring

Controlling Costs Maintain low cost and strong cash flow

A compensation system that uses innovative reward system to control labor costs Other factors besides compensation policies enhance firms competitiveness by keeping labor costs low. These include,
Better employee selection stay with firm Training employees making them more efficient & effective

Controlling Costs These include Continued,

Effectively managing health and safety issues in workplace to reduce time and resources achieve tasks

Improving Quality To gain competitive advantage engage in continuous quality improvement

Some companies apply TQM approach i.e quality at all stages to finalize a product or service In TQM every aspect of the organization is oriented toward providing a quality product or service

Creating Distinctive Capabilities The third way to gain a competitive advantage Utilize the people with distinctive capabilities to create unsurpassed competence in a particular area

3Ms competence in adhesives

Carlson Corporations leading presence in the travel business Xeroxs dominance of the photocopier market

Restructuring Some firms are changing the way the fucntions are performed E.g Some companies are restructuring HR for reasons such as time pressures, financial considerations and market pressures. Some of the tasks are outsourced size of HR department is decreased, so that HR can focus on more strategic and mission orientated activities

Restructuring The Human resource manager Outsourcing Firms Line Managers Decentralization Downsizing

Elaborate them

INDIVIDUAL CHALLENGES

Productivity Ethics Empowerment Brain Drain Job insecurity Matching People and organization research

INDIVIDUAL CHALLENGES

Productivity

Ability Motivation

Ethics & Social Responsibility

CSR refers to the extent to which companies should and do channel resources for other than firms owners Code of ethics Ronald McDonald houses for families of sick Sears and General Electric support artists and performers

INDIVIDUAL CHALLENGES

Empowerment
Recently firms have reduced dependency on superiors Essence - ownership

Brain Drain
Movement of intellectual of a company competitors lure away them Brain Drain mainly high tech companies, electronics etc Brain Drain delays product launches and innovation Compaq computers revoke bonues if executive take away potential employees

INDIVIDUAL CHALLENGES

Job insecurity
In this era of downsizing and restructuring many employees fear of loss of jobs Regular promotions and steady job is a story of past Layoffs have become essential in an age of cutthroat competition

Chronic job threat leads to lower performance and stress

INDIVIDUAL CHALLENGES

Matching the People and Organization

HR strategies contribute to firms performance employees who best fits in firms culture and overall business objctives E.g. Top executive to hamper or improve firm performance

HUMAN RESOURCE MANAGEMENT David A. Decenzo Stephen p. Robbins Susan L. Verhulst 10th Edition

SEE YOU NEXT WEEK