Home » Business & Finance » Human Resource Management » Human Resource in a Dynamic Environment

Human Resource in a Dynamic Environment

© Agha Sadarrudin

Introduction

The world of work is rapidly changing. Even as little as a decade ago, the times were calmer than they are today. But that doesn't mean that ten years ago one didn't experience change. One the contrary, we were then, as we are today, in a slate of flux. Its just- that today the changes appear to be happening more rapidly.

As part of an organization then, HRM must be prepared to deal with the effects of the changing world of work. For them, this means understanding the implications of globalization, work-force diversity, changing skill requirements, corporate downsizing, total quality management, reengineering, the contingent work force, decentralized work sites, and employee involvement. Let's look at how these changes are affecting HRM goals and practices.

Globalization and Its HRM Implications

Back in 1973, with the first oil embargo, U.S. businesses began to realize the importance that international forces had on profit and loss statements. The world was changing rapidly, with oilier countries making significant inroads into traditional U.S. markets. Unfortunately, U.S. businesses did not adapt to this changing environment as quickly or adeptly as they should have. The results were that U.S. businesses lost out in world markets and have had to fight much harder to get in. Only by the late 1980s did U.S. businesses begin to get the message. But when they did, they aggressively began to improve production standards, for using more on quality and preparing employees for the global village. It is on this latter point that Human Resources will have the biggest effect.

Cultural Environments

Before we leave the issue of globalization, there is one final point to cover. As shown, understanding cultural environments is critical to the success of an organization's operations, but training employees in these is not the only means of achieving the desired outcomes. Large companies in U.S. are dealing with this issue by hiring nationals in foreign countries in which they operate. What that has meant to these corporations is a ready supply of qualified workers who are well versed in their home country's language and customs. This recruiting has other benefits, too. Because these individuals come from differing backgrounds and are mixed together, there is a spillover training effect: that is, while working closely with one another, individuals informally learn the differences that exist between them and their two cultures. Some companies, for example, build on this informal development by providing formalized training that focuses on the "major differences that lead to problems."

The copyright of the article Human Resource in a Dynamic Environment in Human Resource Management is owned by . Permission to republish Human Resource in a Dynamic Environment in print or online must be granted by the author in writing.