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Phunkyjeans

Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

Table of Contents

Introduction ............................................................................................................................................ 3 Organizations Over the years .................................................................................................................. 3 The Human Side of Things ....................................................................................................................... 4 1 Work Force Diversity ....................................................................................................................... 5 1.1 1.2 1.3 The Work Force........................................................................................................................ 5 Diversity................................................................................................................................... 6 Managing Diversity .................................................................................................................. 7 Advantages ...................................................................................................................... 7 Disadvantages .................................................................................................................. 8

1.3.1 1.3.2 1.4 2

Work Force Strategies.............................................................................................................. 9

Globalization ................................................................................................................................. 10 2.1 2.2 Challenges ............................................................................................................................. 10 HR s Additional Role in Global Markets ................................................................................. 11

Technological Innovation .............................................................................................................. 12 3.1 3.2 The Hype Cycle ...................................................................................................................... 12 The Adoption Cycle ................................................................................................................ 13

4 5

The Work Environment Around Us................................................................................................ 14 Conclusion ..................................................................................................................................... 15

April 19, 2011

Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

Work Force Diversity, Globalization, Technological Innovation & Human Resource Practices
Introduction
An organization is a social arrangement where people come together and put in their efforts to achieve a well defined and common goal or purpose. In order to achieve these goals organizations hire people human resources who perform certain processes. Any organization s survival in today s market depends upon the performance of its people. It is the effort of these resources that ensures that organizations thrive and flourish to occupy a certain market share in comparison to their competitors. Therefore, it is important that organizations are fully aware of how to maximize the benefits which can be obtained from superior performance. The key function of Human Resource is to manage the human element of the organization. This is done through various processes which include a careful assessment of the staffing needs of the organization and recruiting the appropriate personnel to fulfill this need. They also train and develop these personnel to ensure that their staff is top line with the latest knowledge which will in turn enhance their performance levels in the long run. They also have to come up with the suitable compensation and benefits packages which will motivate them to achieve goals better. And lastly but most importantly, they have to monitor and measure the performance of all resources to make sure of accurate utilization.

Organizations Over the years


If we take a glance at organizational structure over the last 10-15 years, we will come across the drastic changes that organizations have gone through and evolved into its present day structure. Human Resource function especially has undergone a lot of change in itself. 15 years ago, few organizations envisioned a separate functional unit looking after the human aspects of their businesses. Hardly any organizations had a Human Resource Department performing its intended function. Later on, organizations started paying more attention to this area and hence Personnel Development came into existence where the main function was highlighted as paperwork which was necessary at the time of hiring, hence giving HR more of an administrative role. Fast forward the scenario to a few years later and nowadays we hear the words Talent Management being used more than often. This change has occurred as organizations come to the realization that as entities benefiting from the functioning of humans, it is their responsibilities to take each and every aspect of human performance into consideration. Hence in today s world, the talent management system is a far more encompassing term which covers everything from the initial hiring to the learning and development and the performance management of any human resource. And its function continues to grow with each day.

April 19, 2011

Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

The Human Side of Things


Since we are dealing with human resources here and a lot of it has to do with their psychology and behavior in a work environment, it is important that we first discuss the division of generations. Business theorist and most market analysts have made some clear divisions in the human generations based on their age and their year of birth: a) Baby Boomers Born between 1946 and 1964 (value and cause driven individuals) b) Generation X Born between 1965 and 1977 (media savvy and more individualistic) c) Generation Y Born between 1978 and 1994 (edgy, focused on urban lifestyles)

It is based on these divisions that most marketers target their segmentation. The main reason for this is that people belonging to these groups tend to display similar behaviors and patterns in terms of buying and various life decisions including career choices. Hence the three divisions are an important tool for recruiters and organizations as a whole to target their strategies in terms of staffing, compensation, benefits, motivation and retention. A clear understanding of these generations at this point will assist in a detailed explanation of the topic of discussion.

April 19, 2011

Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

1 Work Force Diversity


1.1 The Work Force
Combined together the total number of employees working in an organization is referred to as its work fore. This work force is recruited based on several specifications which fit the various job descriptions. There has been a general shift in the population, and thus the labor force. This shift has been a result of three particular demographic influences. These factors have given a rise to what is known as the age wave which can be explained as a shift in the age distribution of the population. This particular age wave is a real concern for today s management as they indicate a crisis in terms of work force availability in the present day as well as well as the future. These factors are: I. The Baby Boom as described above, this group constitutes the people born between the years of 1946 and 1964. They lend in a major hand in fueling the productivity over the last two decades or so. As this group prepares to retire, most organizations need to focus on strategies as their senior resources with years of experience and skills leave the organization. Longevity the improvements in healthcare and medicine has significantly improved the life expectancy of the world population as more and more people live longer. It is important now to define the particular age when an individual is no longer productive and fails to lend in a fruitful role in the organization. Birth Dearth economic conditions and a focus on improved life standards has changed the mind set of people resulting in smaller sized families. With fewer children per woman, organizations fear a dearth in young talent in the job market resulting in an aging work force.

II.

III.

The above factors have clearly altered the work environment in terms of its resources and now organizations are looking into altered practices which will help them deal with such situations and turn things in their own benefit.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

1.2 Diversity
With the changing time, today s work force is becoming more diverse than ever. Diversity refers to the co-existence of employees belonging to various socio-cultural backgrounds working together for one organization to achieve a common goal. Diversity covers various features including gender, race, culture, lifestyles, beliefs, ethics, color, education, etc. We would shed light on some of these factors to elaborate the differences which have taken place over the years.

Gender Two decades ago, the participation of women in the work place was extremely low. However, nowadays we see more and more emphasis on career and professional ambition in females as higher numbers step up to take up managerial roles. According to a survey done in the States, around 61% women work, bringing their percentage in the total work force to around 48%. Ethnicity Minority representation in today s world is changing with each day. We witness more involvement by minor groups in terms of purchasing as well as work participation. According to some business forecasts the addition of younger work force in the years ahead will be far more diverse with more minority groups availing new opportunities. Education Economic growth has been led in part by rising levels of education required to take up higher roles in organizations. The baby boomers are far more educated than their preceding generation, and the number of younger generation with college degrees continues to increase steadily. However the decreasing birth rates also mean that young people with technical specialty will be less in fewer. Family In the past it was relatively easy to predicate the life cycle and the various stages of an individual as they married early and focused on starting families. However the scenario has changed altogether nowadays as people are no longer focused on settling down at an early age. In fact most delay their marriages along with an increase in divorce rates. These facts make it difficult to predict the decisions that one is likely to make as people are fill more than one role at any given stage of their life. Aspirations Similar to the life cycle changes, people s aspirations have been altered as different stages in one s lifecycle overlap. We observe changes in one s wants and desires as they go through different stages of their professional career.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices  Loyalty With information just one click away, people are now taking an over all view of the work environment. It is not just the compensation which matters any more, its more about the complete packages which includes a nice work environment, benefits, opportunities to learn and the overall culture. Loyalty is no longer a priority for most people; it is about maximization of what one can get out of an organization during their tenure.

1.3 Managing Diversity


Managing diversity implies that organizations provide an equitable work environment where employees can work to their maximum potential achieving their career aspiration by not allowing the above mentioned factors act as hurdles. Withy the shifts in population and a mix in the composition of the work force, it is high time that managers start think about managing these changes. In a highly competitive environment, every organization looks forward to attain features which will becomes its competence and add to advantage. The market share and efficiency of any good organization depends on its ability to manage this diversified work force as best as they could. Research has proven that having a diverse work force can certainly prove to be a source of competitive advantage for an organization. 1.3.1 Advantages

In a world where innovation is the hot topic in all conference rooms, having a diverse workforce can make room for creativity and innovation. By having a people with different backgrounds bringing in their own individual inputs, only results in more that one idea to resolve issues and make decisions hence the creativity gets flowing with such a set up. There is an increase in the number of minority group consumers in today s market. With this increase there is also a shift from manufacturing orientation to service orientation. This shift requires a high level concentration on effective communication and interaction in order to convey the business message and to assess the target in a better way. Here, having a diverse work fore will hence the organizations sustain themselves in the market as the work force will possess the necessary skills to identify the right target and to communicate with them effectively. Encouraging work force diversity can address several legal issues that an organization might end up facing otherwise. As more women and minority groups step into the professional world, authorities have formulated certain acts which safeguard the interest of these groups. Allowing these groups to apply for opportunities within the organization helps the business protect themselves against these acts. Another advantage is to diminish the stereotypes which have

April 19, 2011

Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices been created within the society but creating an equal environment where people from varying backgrounds can come together and put in their efforts in achieving the overall goals at their best. Putting all arguments together, today s diverse environment calls for innovation and organizations have this factor in their control by allowing a diversified work force to compete with each other. Allowing people from different backgrounds flourishes change and innovation resulting in survival. It also creates a healthy competition within the organization which can act as a motivational factor for the existing employees thereby improving the individual performance levels.

1.3.2

Disadvantages

Just like a coin had two sides, every aspect has a good and a bad side too. Similarly, whereas work force diversity can prove advantageous for organizations, it also has some negative aspects which every manager must look into. Staffing of a diversified work force requires a change in an existing organization s culture. A clear message form the management needs to be conveyed to employees at all levels regarding the acceptance of different personalities. This feature comes in addition to the various trainings and seminars which need to be arranged in order to ingrain these principles within the existing employees. Hence the cost of such trainings and programs will add to the overall cost of any organization. Besides these, organizations need to keep in view the mind set of this diversification in human nature and rafting the appropriate balance of benefits which is appealing for these groups thus attracting them to your organization. Another major drawback of this is the increase in conflict and a strong need of having a proper conflict management system in place. When you have a diversified set of employees working on a project there will be moments of argument where disagreement. In certain cases these conflicts could arise as a result of stereotypes and discrimination. Therefore it is important that HR takes this into account and addresses any case pertaining to conflict. Another factor is the turn over and the absenteeism rate. Research shows that certain groups are more prone to absenteeism. Similarly if we consider the above example of aging work force we must also keep in mind that this can result in a greater rate of absenteeism as well. Similarly as the concept of loyalty is scratched away, the turn over rate will be high and retention will be a problem that every manager in every organization will have to put some serious thought into.

April 19, 2011

Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

1.4 Work Force Strategies


In light of the above mentioned text, organizations need to devise strategies which will help them manage the supply and reduce the demand for work force. Here we discuss some of the broad strategies which can be adopted by organization to achieve this: a) Raising Productivity Calls for automation and redesign of work process so profitable levels of productivity can be achieved with the work force at hand. b) Exporting Work Outsourcing some noncritical processes to another region where the labor costs are low and work can be done as efficiently as possible. c) Importing Workers Recruit and relocate resources with the necessary, required skill set. d) Amplifying Skill Levels Attempt to expand the skills and capabilities of the existing work force to take up greater roles within the organization. e) Expanding the Labor Pool Target people beyond the original pool by appealing to people nearing their retirement and unskilled labor to develop them further so they can be used for productivity. f) Improving Branding and Recruiting Employer himself is a brand. Therefore it is important to make your brand more appealing for the target you are recruiting so more people prefer your organization as an employer.

Devising an appropriate strategy for a diversified work force requires a lot more customization in comparison to the practices carried out in the past. This customization requires a careful diagnosis and analysis of the mix of employees working in your organization and assessing what motivates them. This exercise helps in establishing the key factors on which organizations can combine the accurate mix of compensation and benefits to maximize the productivity from the diverse work force. But it is extremely important for diversity to flourish in any organization that the management is always in support of it. And with the changing work environment it is becoming necessary for managers to think ahead and plan for the future by emphasizing on developing a culture which will promote work force diversity. HR professionals need to adopt a pace at which they can move as quickly as the environment changes.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

2 Globalization
With the passage of time, the world gets smaller and smaller as organization expand across geographical boundaries to explore new and unchartered waters in search of opportunities. Certain factors have driven the cause of globalization. These factors can be divided into: a) Market the expansion of the overall market across the global. b) Cost efforts to achieve economies of scale and cheap labor costs. c) Competition a competitive market leading to several adversaries all trying to achieve the same goals. d) Government reduction on tariffs and increased privatization in several parts of the world.

2.1 Challenges

The traditional organization now encompasses a lot more. As they expand, so do their boundaries and functions. These structures now require personnel with increased knowledge and technical skills to manage things across borders. There is a strong need to recruit the top notch candidates with the desired knowledge to assess foreign markets and acquire a significant share by using profitable strategies. This aspect puts the HR in a strategic role as the real wealth of any organization is its people. The change in organizational structure and design and its ultimate scope results in changes in HR as well. Thus it is important that HR equips itself to deal with such changes first. In the future, there is expected to be much more emphasis on performance and results as opposed to the number of hours worked, this is due to the emergence of the concept of virtual offices . Work places are expected to become increasingly flexible with more people working from outside their physical offices. As physical boundaries are eliminated, there will also be more focus on collaborative team work exercising heightened level of autonomy.
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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices Going global is a major decision that an organization takes in terms of expansion. However this is a decision which should not be discussed in the upper echelons, it is important that in such matters HR should be made a partner with the business and its functions are aligned with that of the organization itself. It is in situations like these that HR comes to play to devise the best strategies in terms of human resources which will be the eventual source of profitability. It is the responsibility of the HR manager to help the organization fulfill their staffing needs by identifying and recruiting the right personnel, providing them with the required training and development opportunities to grow their skills and then work on retention strategies to ensure a long term relationship between the employee and the organization. The ultimate task of gauging the employee s output and enhancing the performance levels also rests with the HR.

2.2 HR s Additional Role in Global Markets


HR managers will also be expected to take on some extra skills to combat the problems of global markets. Such skills include knowledge of foreign languages as they will be interacting with potential prospects for the organization. An insight into foreign cultures will act as an added advantage as cultural backgrounds and differences can have a huge impact on the organizations overall structure. For example, British manager give more value to individual accomplishments whereas French managers are more interested in fringe benefits, security and competent supervision, and at the same time Indian managers are pay more attention to tradition and culture. As discussed in the previous section, globalization will bring along more diversity. And HR managers will excel only if they learn to manage this diversity and make the most out of the employees working in their organization. In another 20 years, more drastic changes are expected to occur in the work place as the world treads on the path of innovation and technological advancements. This will result in far more diversity which means that HR managers need to upgrade their sills in terms of language barrier, cultural knowledge, technological innovations and market assessment tools so they can ensure the maximum return on investment.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

3 Technological Innovation
A lot of the companies make the mistake of involving Human Resources towards the end once they are done making the decision of technology improvements. This results in various difficulties for the organizations in the long run since the human aspect cannot fit in to the innovative technology raising the overall cost of implementation. According to a recent research 60% of most expenditure in organizations is IT related. And around 70% of these projects are termed as failures by businesses. The number 1 reason for these failures is the people. Management initiates the implementation of new and improved technology without understanding the appropriate usage rate within their organization and how it affects the system s interaction with the people. This is one of the major reasons why HR deserves to have a seat at the table in the conference room when such decisions are being made. The HR people need to identify the technical skill level of the current employees and match up with the system which will be implemented and how the existing people will adapt to this new system. Here two schemes can be of assistance for HR in understanding the people s reaction to the change. These schemes are elaborated in the section below.

3.1 The Hype Cycle


This cycle was identified by the Gartner Group and it clearly depicts and explains that whenever an organization decides to roll out a new IT implementation project for improved efficiency, it follows a particular curve. This curve shows that initially there is inflation in expectations followed by a deep disappointment and later on the usage comes back to normal. This is true with any system after its implementation, as the expectations soar, the productivity declines since the people have not fully adopted the new system. However after a certain period of time people start to adopt the new technology and hence productivity take a normal curve shape.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

3.2 The Adoption Cycle

The adoption cycle studies the adoption rate of various people and how their practices influence the decisions of others. Innovators are usually the first ones to adopt new technology however their opinion is usually not considered to be that high hence no immediate result. The early adopters on the other hand are far more influential and hence they can get the technology down to the early majority. This practice is soon followed by late majority and lastly the laggards. Timely identification of the early adopters can be helpful in making the technology roll out a success in any organization.

Technological innovations bring in a huge change in any work place therefore HR managers need to be prepared to identify those who will be affected the most by this change. Their task would then be to make this change acceptable amongst the work force by identifying the early adopters who will use the technology. Through proper training over a certain time period, they can make people achieve a comfort level with new technology which will prove fruitful in the years to come.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

4 The Work Environment Around Us


If we take a good look around ourselves in terms of work environment, we will notice the changes which we have discussed so far. Organizations are changing in terms of their staffing needs and as most organizations expand globally, the composition of their human resources gets directly impacted. The same goes for technology. Whereas we used to see work stations piled with files and documents, today s work space is far more organized with gigabytes of information available just one click away. We can elaborate these instances with the help of some local examples in our job market. Eden Builders for example, is operating in Pakistan and providing quality lifestyles by constructing state of the art design homes. However if we take a closer look at its structure, we see a clear distinction between its technical and non-technical staff, based on the organizations functions. However, being a construction company which is predominantly a male profession, we see that the organization has female employees serving some non-technical functions. With this particular change in their work force, the organization is now focused on reconsidering their benefits to better attract females. With this perspective in terms of change, Eden builders is now working on installing an ERP System to help automate some of its business processes. They are however facing some resistance to this change but with the benefits of such powerful management systems, conformity would soon follow. A similar scenario in terms of work force diversity especially female recruitment is visible in Descon, as elaborated by their recruitment team lead of the engineering division. Being an engineering organization and heavily staffed with males, the management now feels the need for change in culture. Due to this thought, a lot of the management jobs in this particular organization consider competitive, career oriented females who are willing to take on major roles in a male-oriented work environment and prove their competence.

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Work Force Diversity, Globalization, Technological Innovations and Human Resource Practices

5 Conclusion
As we come to a close on this elaborate discussion on the changing practices in the professional world and the resulting practices of Human Resources, we would like to emphasize on the need for change. Change is inevitable, and soon it will encompass every sector. It is the task of senior management o f an organization to realize the need for change and benefit from it. Referring to the original topic, work force diversity, globalization and technological innovation are phenomena that cannot be separated. These factors are all interrelated at some point and will not only affect the organizational culture but also its resulting practices. This is where HR function comes into play to take up a significant role and has to step outside the box to prove its efficiency. It is important that HR should be assigned a strategic role especially during these diversified timings. They need to be aligned with the core business functions so that they can better understand the needs which need to be fulfilled and eventually manage the level of performance required to achieve organizational goals. As mentioned above, change is inevitable and we see its signs everywhere. The world might be huge but with globalization and corporate expansions, the markets become smaller and smaller. Cultures are now more in contact, and it is important that people also become aware of diversified practices and values in different cultures which will only help them assess the work force and the prospective potential in a better way. More focus needs to be paid to technical skills; here only HR is not accountable, in fact societies as while should focus on a learning culture providing more opportunities to people to enhance their skills. As ERP Systems take on major business processes and eliminate tons of manual labor, they also create opportunities for people to carve skills to be able to manage such systems. Whereas change is today s desire, technology is today s necessity. And with the passage of time we will see some more drastic changes in organizations. Therefore HR managers are expected to take up a lot more in the near future as they continue to provide organizations with the greatest wealth the people.

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