Jan 2, 2014

Changing Environment of HRM

The business environment is changing the environment and thus , the environment of human resources. The changing environment of HRM includes the diversity of the workforce , economic and technological developments , globalization, organizational restructuring , changes in the nature of jobs and work , and so on.

Workforce Diversity : Diversity was defined as an attribute that humans are likely to use to say , this person is different from me , and therefore , such factors as race , sex , age, values ​​and cultural norms. Indian workforce is characterized by such diversity that deepens and dissemination of Jay- by - day. It is likely to be more diverse than women, members of minority groups , and older workers flooding the labor market . With the increasing number of women in the workforce due to a combination of factors such as women's empowerment , economic needs , greater gender equality , education, and so on , additional pressures managing a different set of problems in the workplace arose. As such , the number of women is increasing in all areas of life, ie , teachers, lawyers, doctors, engineers , accountants, drivers , parliamentarians, and so suite.

However, increasing the number of women in the workforce has been requiring the implementation of flexible working hours, facilities child care , maternity and paternity leave and now also transfer to the location of the place of posting her husband. In addition, the aging of the workforce , employers will face higher health care costs and higher pension contributions. Overall, the increased diversity of the workforce will place enormous demands on the function of HR management.

In addition, do unanimously a diverse workforce has also become a challenge for the director of human resources. This is because , as several experts said , diversity is marked by two fundamental and contradictory realities now operating with it. One is that organizations say they seek to maximize diversity in the workplace, and to maximize the capacity of such a diverse workforce. The other is that the system of traditional human resources does not allow diversity, only similarity . These experts point out that employers traditionally hire , evaluate and promote the people who fit the image of a particular employer that employees should believe and act like . At the same time , there is a tendency to deviate corresponding those who do not match.

Economic and technological change : Over time , several economic and technological changes have occurred that have changed jobs and professional profile. In India too , there is a perceptible change in the occupational structure of agriculture to industry to services. The new economic policy of 1991 led to the liberalization and globalization giving genesis of multinational organizations with their multicultural dimensions with some implications for HRM .

Technology has become the hallmark of modern organizations . As such, are modern organizations have become technology-based organizations . So to speak , men are replaced by machines . For example, the manufacturing technology has changed the automation and robotics . Advanced manufacturing of this type will eliminate many blue-collar jobs , replacing them with fewer but more highly skilled jobs . Similar changes take place in the office automation , where personal computers, word processing and management information system (GIS ) continue to change the nature of office work.

The explosive growth of information technology related to the Internet has opened many changes in the organization. One of the major changes driven by information technology is that it has accelerated what experts call the "fall of the hierarchy " , ie , managers rely less " stick-to - the - chain of command approach ." yesterday , in the organization of the function This is becauseearlier it used to be , if you wanted information , you had . climb on and through the organization Now we just step in. This is what broke - . . down the hierarchy Now employees do not need to attend a specific work place instead , they can work from their own places / homes across the net . This gave the genesis of a new breed of organizations, called " virtual organizations " ( VO) .

In summary, the economic and technological changes have created an environment quite different from HRM.

Globalization: The New Economic Policy , 1991 . among other things, globalized Indian economy. There has been a growing trend among business enterprises to expand their sales or manufacturing to new markets on board. The rate of globalization in recent years in India is nothing phenomenal. Globalization increases competition in international trade. Finns who previously had competed with local companies must now compete with foreign / competitors businesses. Thus, the world has become a global market where competition is a two way street .

Globalization has given rise to the multinational companies ( MNCs) . Multinationals are characterized by their cultural diversity , increased competition , changes in business practices and so on. As an expert in international trade says, " the bottom line is that the growing integration of the global economy in one huge place , the market is increasing the intensity of competition in a wide range of industries manufacturing and service .

Given these conditions, to draw the world laborforce the formulation of policies for the selection, training and remuneration of expatriate employees have posed major challenges for HRM in the coming years. It stressed the need to study and understand the HRM multinational organizations or international organizations separately.

Organizational restructuring : organizational restructuring is used to make the organization competitive . From this point of view , mergers and acquisitions have become common forms of restructuring to ensure the competitiveness of the organization. Mega- mergers in the banking business , telecommunications and oil have been very visible in our country. Downsizing is another form of organizational restructuring. In the context of organizational change, many organizations have " rightsized " themselves in various ways, such as eliminating layers of managers , plant closing , merging with other organizations or outplacing workers. It has been a practice to flatten organizations by removing several layers of management and improve productivity, quality and service while reducing costs. Whatever the form of restructuring , jobs are redesigned and people affected . One of the challenges facing HRM organizational restructuring deal with the human consequences of change. For example, associated with downsizing human cost was much worse and discussed in the popular press. As such , HRM should focus on the scenario has changed in a unique way and that is not so simple. Thus , the management of human resources activities has become crucial for human resource managers .

Changing Nature of Work : With the evolution of technology and globalization , the nature of jobs and work has also changed. For example , technological changes such as the introduction of fax technology information and personal computers have enabled companies to outsource operations to places with lower wages . There is also a trend towards increased use of temporary or part-time in organizations.

A most significant change in the nature of work is that it has changed manual for mental / knowledge work. Organizations and will give increasing emphasis on human capital , namely , knowledge, education, training, skills and expertise of employees, capital expenditures as physical equipment , machinery and physical facilities . This growing emphasis on education and human capital , among other things , changed the nature of the economy that service-oriented economy. In the economic scenario has changed jobs require a certain level of expertise that is beyond rewarded for most workers , there are 20 or 30 years. This means that businesses rely more on creativity and skills of the employee, ie , the brain power of the employee.

As such , the environment has changed HR . The challenge of change in environment promotes intellectual and human capital management needs of these differently than the previous generation .

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