Bo OB NE ul 13% 3:02 PM RUN A CHAM ENVIRONMENT [Attrstudin this chapter students shoul beable to understond the fling concept: AHR in a Changing Ervircnmont New trends at werk poco Lessow oveRvIEW This lecture wil primarily help students whe intend tobe managers deal effectively with he challenges oP mansging reels, Firms that dec! with thee challenger ef Feutvely are likely to oxtperForm thse that de not thes challenges may bo categoria according tether primary fous the ensrennent, the cnganiation, or tho individual AHR in Changing Emvirenment: The Challenges Teday'senganiastions ae facing challenges unonfallesing levels: i. Ervironmentel Challenges iL Orgeniationl Challenges ‘ic Individel Challenges Environmental Challenges Emirovmenta allenges refer to Sercesexternel tothe fm thet ae largely heyend mencgement’s contro but influcnceerganiastion| performance, They inclade: ror chengo, the mternat revolution warkferce divest olbalinatios lzglaten, evelng werk ard famly roles and sll shartayes an tho visa of the service sector, ‘Sic impertantenvrenmental challenges teday are 2) Rapid change, ba) Werk force diversity ¢) leeliation, ) Legislatien, 2) Tednoly 4) Evolbing were and family rls, @) Skil shortages and the ise of the sevice acter 2) Repl change Many arganautons face a vltle onvrenmentn hich change nearly constant they aro te survive cand prosper they need te adapt te change gully and effectively. Human rescurces are clmest cays ct the hart of an Facto response system Here crea Few cxamples of how HR policies can hlp er hinder 2 Frm grappling with ectoral change by Werk Force Diversity ‘All these tvends present beth sgnifean challenge en reel appertunity fer managers, Firms that ormlete rd imolement HR ctrotepes that cepitale en empleseeaverety re mere likely to urvie ard prosper. 2) cbatiation, (One oP the mest dramatic challenges facing as they ener the twenty-first century ishow te compete aginst Foreign firms, both demecticllyand chroad, Many companies oe srecdy being compeled to think plbelly semething that deosr't come casi firms lng accustomed t deny business in large ond expending lomastic market with minnelFercgn compat, Weck response te interntiona cetitin may he resulting in upward ayes in every yee Human reseurces can play rte olen business's clity to compete hezd-te-heed with Forcign producers, The Iimplicstions of gba economy on hac resoure mancgoment cre mony. Hore area Few cmos: Mid companies ‘Some firms try te develop gl! company identity te smecth ever cultural Perences between domestic employees ard hose in interntions! operation, Minimizing thse difPerences increases eeoperction and < 9g i Q Qaso OB YE ul 13% Ml 3:02 PM Hunan ResurceManagoment(MET30") canave «strong impact on the botemling, Fer instance, the head of human resources ot the Europesn ison of Colgate Palmolive ntos, "We try te bul s commen corporate culture, We want them al tobe Colpaters” lcci Some Free actoely engage m international lances with Feregn firms oF cei companics overseas to take advantage of slchal markets, Making auchaliances wer requites a highly teined and devoted tat For tance, Mili (2 Netherlondihtng and electronics Sm) became the largest lighting manaecturer Inthe werld by estchliching¢ ent venture with AT&T and making eeveral key craton, ‘These illustrations show how Brecon se HR strategies 4ogain worldwide competitive advantage, 4) Legislation ho the grewth inthe HR, Function over the past three decades may he attrbuted tots eri! ele in beeping the company eut of trouble with the lou, Most rms are deeply concerned with pete! ibility resulting from personnel decane that may violate laws enacted hy tho state loyslaturas and/or eel qvversments, These aus are constant interpreted in thousands of cases brought heferegoverement yercce, Sederal courte, state courts ond ¢Suoveme Court Hew sucessfully frm manages its hamcn resources devonds te large extent on its chilty te dec oF fectivly with government regulations, porting within the logalFramouerk raquires keeping track of the external legal envrcrment and develring interns systems (For example, superviery training and grievance recedures) to ensure complcrce cd minimize complaints, any rms ore new devcleping feral plies con sows harasement and estcblishing inter! cdministratin chamels to deal ith lloged incidents before omploysce fool tho need te flo laweur, Legislation often has a dierantial impact on publc~ and private sector ergrizatons, (Plc sector another term for goverementel agencies: private sector refers tallethey types ef erganaations,) Seme epilation applies only te public-sector erganiaations For instance, aFfrmative cation requirements are ‘apically lived to public eroainations on to ergancaatins that do contract work Fr thom, However, much ep sation cppies to beth publc~and private sector erganaations. Th fact, it's dit te think oF emg HR practices that are nein uence by government repuletiens, 2) Tecnology ‘The werld hes never bePere seen such apd telnelegicl changes os are presently eceurving in the computer and telecormanicatins industries, ve estimate fs that techrelepcal change is caring so repidly that indvidusle may have te change their entire ll three or Four times in their caret. The advances being mee, 2 Fact every area of 3 businee including human resource mangement, +) Eelving Work end Family Poles ‘The proprtion oF dua!-creer Felis, in ahichboth wife ad hudend (or beth members of ecue) werk is ncraasing every year, UnFertunatoly wenen Face the deuble burden of working st hee and on tho jes, dovetng 2 hours por wook on avorage tothe office and an altonal 30 fours at hemo te children, Ths compares to 43 keurs spent working inthe effze and only 12 heurs at home Fer men. ere and mere componice are introducing “amily-frindly” programe that give them a competitive advantage nthe aker market, thao regrams are HR tactics that companies us thir a stan the Leest- qualified empleyoes, mle or Pomale, and they ave very likely t pagel For instance, amerg tho wel Lenoun organizations / ims, balé ofl racrute are women, but oly 5% of partare are ween Major ‘lent i bing wested cs many worn dropout after lengthy training because they have decided that the mending 10~to 2-year partnor track raquirs total scriPue oF Fomily life, Those Firms have storted to change ther policies and are elresdly seeing gains a result. DiFFeventcompenies have recently hepun offering child-care al eldercarereferal serves as ell te facitate women werkers os well sare Inkreduing alternative scheduling 4 lew employees some Hexibility nthe work ours, 9) Skil shortages andthe Rise ofthe Service Sector, Expersen of cevvice-tector emplegnent inked toc numer of focters, including changes i consumer ‘testes cr preferences, leg! nd regulatory changer, edWancer in science end tedhndegy thet have clmincted many manafactuing jobs, and changes nthe way businesses ae organized and managed, Service, technical and monagoralpesitons that rou collage dagraes will mak uphalf el < 9g i Q - 2 5 ¢aso OB YE ul 13% Ml 3:02 PM Human Rescurce Management (NETO!) smenufecturing and sevice jobs} 2000, Unfertunately meet avichlewerkers willbe to uncle to fll ‘these bs, Even now, many companies complain thatthe supply ef sled ler is dvinling and that thoy ‘must revide thoi employees with basic taming to makeup fer the shortcomings of the public education system Torectfy these shertuomings, companies curently spend large ameurt year on 2 wide variety cP ‘taining propre, i Orpenzutional Challenges Organizational challenges refer to cencern thet ar internel tothe rm, However, they are oPten ¢ byproduct of emsrcomentel Forces becuse no firm aperctes ina vccuum, Thase issues include: cempattive poston (ost, suslity, end distinctive capality),decentalastion, downsizing, ergeiastions! restructuring, el?-mansged werk tears, eal husinosses, oroonastienal culture, techoleiy. re cutseurcing, Orgerizctiona challenges cre cencernser problems intern! te c-Brm, They ere often a bypreduct of cnsirenmantal forces because no Frm cperatesin eum, Stil, managers con usually ever mach mare centrl ever oganizetional challenges than over envirenmental challenges, Etfoctivo managers spat orgariatinal sues and deal with them befere they necome mejor preblems. One ofthe themes oF this ‘teat ic proztively: the need fer frm to take ction before preblems get out of zr, Only mangers whe rowel infermed about impertant HR issuss ard ergeniaatena challenges cand this, These ialenges ‘nclade the nood fora conpottivepesiton ae fowhlty the prablems of deansiing are eroanastienal restructuring, the use of se!-managed werk teams, he vise of aml businesses, the need to wreate aston corgariatina! culture, the role of tecnelegy and the rise eeutzourcing, ‘Amerganisationual utpor form itscempotiters if tof foctivel yutiios te work Force's unique combination of skis and abiitis to oxletonvreomental pportuntoe and neutralize thrests, HR plcce con InFuenco an organization's competitive position by ©) Contraling costs, 1) Improving quality and 6) Creating distinctive capable Restructuring 2) Controling costs (One way fora ir to gain competitive ceuantazeis to maintain ow costs anda strong cash Slow. compensation system tht ses inevatie reward strategies to cntrel chor costs can help the erganiation grew, well-designed compensation system rewards employees for behaviors that benefit the empang, Other factors besides cempersaton plcies can enhance a Fem's competitivness by keeping labor costs under central, These itlude: better emplewce selection s0 that workers are mor kel te stay with the company end tperForm better while they ar there, taining employees to mele them more eFRcient end reductive; attinng harmonies lake relations); oF Fectvely managing heclth nd safety issues inthe workplace and structuring wert rodice the time ond resources nasded to desig, pred, and dalivor products or sorvicos 1b) Imeroving quality The secend way 4 goin compatitive advantage i te engage continuous uclty improvement Many companies are implementing teal quility menagement (Tar) intiatves ubichave pregram designed te improve the qelity of al the processes that lead to & nl preduct ev eevee. In TAM program, every capoct of the organizations oriented toward prowding «ality product er sarvie, ) Creating Distinctive Capeiltios ‘The third wey te gun competitive achantage iso utlize people wth lstintive caphlites to ereate unzarpazzed competence in partiular area (Fr example, 3's competence m adhesives Carlen Cererations leading presence nthe travel busines, and Xere's dominance of the phetecepier market) 4) Restructuring ‘Anumiber of Srms are changing the wey the Buctions re performed, For cxcmpl, soma compenics ore restructuring HR for reasons such os time pressures, Snancal consideration, ond market pressures, This < G - 2 G 1”