04_competitive challenges and hrm
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8/15/2019 04_Competitive Challenges and HRM
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Competitive Challenges and
HRM
8/15/2019 04_Competitive Challenges and HRM
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Competitive Challenges and HRMOngoing studies of the most pressing competitiveissues facing firms is conducted by:
Society for Human Resource management (SHRM) and
The Human Resource lanning Society (HR S)
!y see"ing the inputs from chief e#ecutives and HRmanagers$
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Challenge %: &oing &lobalThe trend to'ards opening up foreign mar"ets tointernational trade and investment$
artnering 'ith firms in other regions of the 'orld using information technologies to coordinate distant
parts of their businesses Companies have sho'n that their vision for future is
To offer customers *anything+ anytime+ any'here, around the-orld$
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.#amples:!M- Traditionally been a &erman brand
/o'+ the automa"er is building cars in South
Carolina$Hafer 0 ma1or Chinese appliance andelectronics corporation
Has opened a plant in /orth Carolina$Chevrolets 0merican
/o' being assembled in Me#ico
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.ffect of &lobali2ation on HRMTo balance a complicated set of issues related to different geographies+cultures+ employment la's+ and business practices$
To &auge the "no'ledge and s"ill base of foreign 'or"force+ to figure
out ho' best to hire and train them$
Relocating managers and other 'or"ers to direct the efforts of a foreign'or"force$
Responsible for implementing trg$ prgs$ develop$ Opportunities toenhance managers understanding of foreign cultures and practices$
0d1ust compensation plans receive fair and e3uitable pay as per theliving cost of different countries$
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Challenge4: .mbracing /e' TechnologyOrgani2ations are connected via computer5mediatedrelationships+ and they are giving rise to a ne'generation of *virtual, 'or"ers 'ho 'or" fromhome+ in hotels+ in their cars+ or 'herever their 'or"ta"es place$
Shift from *touch labour, to *"no'ledge 'or"ers,:employee responsibilities e#pand to include a richerarray of activities planning+ decision ma"ing+
problem solving$
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.#ample:Manpo'er 6nc$7 the largest employment agency in8S offers free information technology trainingthrough its Manpo'er &lobal 9earning Center(http: '''$manpo'ernet$com) an online universityfor its 4$; million employees 'orld'ide$
<eatures more than ;+=== hours of online instruction in
technology applications+ along 'ith professional 7 development and business s"ills+ and telecommunicationscourses$
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6nfluence of Technology in HRMThe most central use of technology in HRM is anorgani2ation>s human resource information system(HR6S)$
HR6S7 0 computeri2ed system that provides currentand accurate data for purposes of control anddecision ma"ing$
Helps in automating payroll processing+ maintainingemployee records+ and administering benefit
programs$
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Challenge?: -or"force @iversity.mployees of an organi2ation differ from each other age+gender+ education+ language+ values+ cultural norms+ ethnicorigin etc$
Composition of 'or"force in 6ndia is changingMore 'omen+ minority groups etc$ are 1oining the 'or"force$Aoung+ s"illed and "no'ledgeable people are increasingly occupying
positions of importance$.mployees no' prefer less secure but high paying 1obs in M/Cs other private sectors$The percentage of old employees is also gro'ing o'ing to improvedmedical and health care$Technological revolution and better transport facilities have improvedmobility of employees$
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-hat are companies doing to foster
diversity in 'or"force0 large scale survey by the SHRM and the CommerceClearing House have observed:
romoting policies that discourage se#ual harassment (B?of org$ observed)
roviding physical access for employees 'ith physicaldisabilities(DE )
Offering fle#ible 'or" schedules (EE )0llo'ing days off for religious holidays that are not officiallyrecogni2ed (;F )Offering parental leaves (;D )
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ChallengeG: .mployee .mpo'erment.mpo'erment is the process of passing authorityand responsibility to individuals at lo'er levels inthe organi2ation hierarchy to enhance the feeling ofself5efficacy and a sense of o'ing a 1ob$
Managers are encouraged to allo' a high degree of
'or"force participation+ group involvement andautonomy+ and to develop self5managing 'or"teams$
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.mployee .mpo'erment (Contd$).mpo'erment is a process of delegatingauthority to subordinates to shoulder
additional responsibility based upon theirability+ "no'ledge+ e#perience and po'er toachieve autonomy+ independence and 3ualityof 'or" life for organi2ational effectiveness$
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0pproaches to .mpo'ermentHelping employees achieve 1ob mastery&iving training+ coaching and guided e#perience that arere3uired for initial success$
0llo'ing more control&iving employees discretion over 1ob performance
ma"ing them accountable for the performance outcome$
roviding successful role models
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0pproaches to .mpo'erment8sing social reinforcement and persuasion
&iving promise+ encouragement and verbal
feedbac" to raise confidence$
&iving emotional support
Tas" assistance+ personal care
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-hy .mpo'ermentTo stimulate commitment and innovation from theemployees$
To achieve competitive advantage by producing goods andservices that meet customer re3uirements$
To implement change and stimulate decision ma"ing from
everyone 'here there is no precedence$
To promote entrepreneurship and higher degree of ris"$
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!arrier to .mpo'erment6ncongruent organi2ational culture9ove for authority
@ependency of subordinates
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Challenge;: Managing rotean Careers
The career of the 21st century will be
protean , a career that is driven by theperson, not the organization, and that willbe reinvented by the person from time to
time, as the person and the environmentchange.
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Managing rotean Careers (Contd$)The protean career is a process 'hich the person+ notthe organi2ation+ is managing$ 6t consists of all of the
personIs varied e#periences in education+ training+
'or" in several organi2ations+ changes inoccupational field+ etc$
The protean personIs o'n personal career choices
and search for self5fulfillment are the unifying orintegrative elements in his or her life$ The criterionof success is internal (psychological success)+ note#ternal$
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Characteristics of rotean Careers :Focus on psychological success rather than vertical success
Lifelong series of identity changes and continuous learning
Career age counts, not chronological age
ob security replaced by the goal of employability
!ources of development are wor" challenges and relationships, not
necessarily training and retraining programs
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Characteristics of rotean Careers (Contd$)The new career contract is not a pact with theorganization# rather, it is an agreement with one$s self andone$s wor"
Focus on learning metaskills %learning how to learn&, i.e.,how to develop self'"nowledge %about one$s identity& andadaptability
(daptability and identity learning is best accomplishedthrough interactions with other people %reflected ininterdependence, mutuality, reciprocity, and learningfrom differences&
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MOO/ 96&HT6/& !A .M 9OA..S .mployees in most of the organi2ations reali2e thatall their demands cannot be met by their organi2ationalone$
Hence they depend either on some other organi2ations for part5time 1ob+ part5time business or
ta"e up a business or start an industrial unit in order to earn more$ This type of activity is "no'n asmoonlighting
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ChallengeE: Moonlighting henomenon6f there is a shortage+ or if no great amount of additional 'or" is necessary+ the organi2ationcan use inside moonlighting$
-or"ers can be enticed to ta"e a *second, 1ob 'ith bonuses
Moonlighting is a term used to refer to holding a second 1ob outside of normal 'or"inghours$
0ccording to the 8$S$ @epartment of 9abor+ about D to F million 0mericans 55 about ;J percent of all 'or"ers 55 'or" multiple 1obs$
Moonlighting 'hile 'or"ing for a private employer is governed by the policies of theemployer$
ublic employees see"ing to hold a second 1ob may be sub1ect to federal la's and agencyregulations+ depending on the position and classification$
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)nside *oonlighting and +mployees$Friends
!efore going outside to recruit+ manyorgani2ations as" employees to encourage friendsand relatives to applySome offer *finders fees, for successful referrals
.mployee referrals should be used cautiously+especially if the 'or"force is already racially orculturally imbalanced