The Macro Level Scenario and HRM

The Macro Level Scenario and HRM

Changes Taking Place At global level world of work rapidly changing A challenge for HRM is: To deal with the effects of the changing world of work! Changes Taking Place Globalization Technology changes Decentralized work sites Diversity of work force Labour shortages Changing skill requirements Work/Life balance Continuous improvement initiatives Contingent work force Outsourcing 2

Globalization Producing and marketing goods worldwide Examples BMW, Mc Donald, Toyota, General Motors Challenge for HR manager select people with an appropriate mix of skills and capacity to adapt to cultures, systems and techniques different from their own GLOBE research Program started in 1993 but ongoing cross-cultural investigation of leadership and national cultures Covers 62 countries, 825 organizations It identified nine dimensions of national cultures:- Assertiveness Future orientation Gender differentiation Uncertainty avoidance Power distance Individualism/Collectivism Performance orientation Human orientation Ascribed status/achieved status 3

Globalization as a challenge for HR manager HR manager has to: Understand cultural differences that might affect operations in another country setting up beef industry in India difficult Understand the culture of country before sending the employee Individualistic US employee may not work well in collectivistic Japanese culture Develop mechanisms to help multicultural individuals work together Make effort to acclimatize different cultural groups to each other building teams and thus reducing conflicts. 4

The changing world of Technology Toffler divides social history of modern civilization into Three Waves:- Age of agriculture people were their own bosses Age of industrialization people hired by tightly structured and formal workplaces - mass production - specialized job - authority relations Age of information - jobs designed around acquisition and application of knowledge knowledge workers - Shift of focus manufacturing to service 5

Automation of Manufacturing processes Even manufacturing processes being automated- companies like GE, Citigroup, Global Technologies, Wall Mart, 3M etc. using: Automated offices Manufacturing robotics Computer aided design software Microprocessors Electronic meetings/ teleconferencing etc. 6

Changing Technology and HRM HR Manager:- Can disseminate information quickly Can reach larger pool of potential job applicants Can make employee selection through internet by posting selection tools on the net Can provide T & D specific information to employees on demand Faces the ethical dilemma of employee surveillance how much monitoring justified Faces the challenge of motivating knowledge workers to use official computer resources for achieving organizational goals, not for their personal interests like e shopping, placing bets etc. Faces the challenge of oneness, loyalty and commitment in netconnected but geographically dispersed employees of virtual organization 7

Decentralized Work Sites Working from home own pace, own schedule end (final product) important, not the means Challenges for HRM how to ensure appropriate work quality and ontime completion How to pay salary fixed salary, on hourly basis or by the job performance 8

Workforce Diversity Until recently melting pot approach adopted was not successful Differences in values, needs, interests, expectations of employees have to be recognised by HR managers Any practice considered sexist, racist, offensive or illegally discriminative to be avoided a must for retention of emloyees and increasing productivity 9

Labour Shortages Reason low birth rate, high education rate especially in advanced countries Challenge for HR manager to adopt sophisticated recruitment and retention strategies Need to understand human behaviour to ensure retention 10

Changing Skill Levels Reason spread of technology Required ability to read and comprehend software and hardware manuals, technical journals, etc. Challenge for HR manager recruitment of the right people 11

Work/Life Balance Times of 8 to 9 hour work days over 1. Employees of global firms on call 24 hours a day 2. Most employees putting in more than 50 hours a week 3. Mostly both partners working family commitments suffer Preference for flexi-time jobs increasing Challenge for HR manager adopt policies that help employees achieve work/life balance 12

Continuous Improvement Programs Two types of improvement programs can be adopted Continuous focus on incremental change Work Process Engineering focus on radical or quantum change Challenge for HRM:- - Prepare people for: a) change in work patterns b) change in operations c) change in reporting relationships - Overcome resistance to change - Train employees in new required skills 13

Contingent Workforce (I) Reasons to hire contingent workers i.e. in temporary or parttime positions To save money To increase flexibility of the organization in ever changing work environment Challenge for HRM Ensure that contingent workers do not perceive themselves as second-class workers To increase commitment and loyalty in these employees Ensure their availability from time to time Provide scheduling options that meet their needs Orient and train these people as per organizational needs 14

Contingent Workforce (II) Attract quality temporaries keeping in mind their requirements like: - flexibility in scheduling - autonomy - control over one s career destiny etc. Deal with potential conflict between core and contingent workers sometimes due to higher pay or flexible schedules provided to contingent workers 15

Downsizing / Rightsizing Reasons Mergers and acquisitions Economic downturn Lowered profits etc. Results Layoffs/ retrenchment, VRS etc. Challenge for HRM Humane treatment to employees being separated Helping employees to manage financial and emotional insecurity Outplacement Proper compensation for employees going for VRS 16