HRM in changing Environment
- 2. WHAT IS HRM ?? HRM is the process which binds people with organizations and helps both people and organization to achieve each others goal.
- 3. WHAT IS ENVIRONMENT OF HRM ?? •Environment of HRM includes all those factors which have bearing on the functioning of HR department. • These forces can be divided in two categories, i.E. External forces and internal forces.
- 4. WHY IS IT NEEDED •Today’s environment is characterized by intense competition and change where proactive steps are vital to survive. •To become proactive and not remain reactive to the environment. •Reactive strategy are useful in stable and competition less environment.
- 6. 6 HRM in a Changing Environment: The Challenges Today’s organizations are facing challenges upon following levels: 1. Environmental Challenges 2. Organizational Challenges 3. Individual Challenges
- 7. 7 Environmental Challenges Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. Five important environmental challenges today are: 1. Rapid change 2. Political-legal forces 3. Economic forces 4. Technology forces 5. Culture forces
- 8. 8 Rapid Change Many organizations face a unstable environment in which change is nearly constant. If they are to survive and prosper, they need to adapt to change quickly and effectively. Human resources are almost always at the heart of an effective response system. few examples of how HR strategies enable a firm grappling with external change?? T&D Succession planning Strategic planning
- 9. POLITICAL-LEGAL FORCES • Changing Labor laws related to employment, working conditions, pay & wages, and laws related to industrial disputes. •Which political party is ruling. Different parties can have a different outlook.
- 10. ECONOMIC FORCES • Economic growth, industrial production, agriculture, population, national and per capita income, money and capital markets, suppliers,competitors,customer & industrial labor are the components of economic environment. Economic forces relevant to human resources: Suppliers Competitors Customers Economic growth Industrial labor
- 11. TECHNOLOGICAL • Jobs tend to be more intellect. • Obligation of hrm to train workers acc. To new technology and to rehabilitate those who can not be trained. • Workers acquaint with new technology are more demanding. • Technology has impact on human relations.
- 12. CULTURAL FORCES Culture refers to complete whole which includes knowledge, belief, art, morals, laws, customs, and other capabilities & habits acquired by an individual as a member of society.
- 13. 13 2) Organizational Challenges Organizational challenges refer to concerns that are internal to the firm. These issues include: •competitive position (cost, quality, and distinctive capability) •Strategy task and leadership •union
- 14. 14 Controlling costs One way for a firm to gain a competitive advantage is to maintain low costs and a strong cash flow (sale volume). A compensation system that uses innovative reward strategies to control labor costs can help the organization grow. A well-designed compensation system rewards employees for behaviors that benefit the company. Other factors besides compensation policies can enhance a firm's competitiveness by keeping labor costs under control. These include: better employee selection so that workers are more likely to stay with the company and to perform better while they are there, training employees to make them more efficient and productive; attaining harmonious labor relations); effectively managing health and safety issues in the workplace and structuring work to reduce the time and resources needed to design, produce, and deliver products or services Introduction to HRM - HIMS
- 15. 15 Improving quality The second way to gain a competitive advantage is to engage in continuous quality improvement. Many companies are implementing total quality management (TQM) initiatives, which are programs designed to improve the quality of all the processes that lead to a final product or service. In a TQM program, every aspect of the organization is oriented toward providing a quality product or service.
- 16. STRATEGY, TASK & LEADERSHIP • Alignment between the strategy, structure, people, and management is important for organization’s success. • Nature of task/ job also affects human resources in terms of hiring, compensation, training etc. • Leader also impact any of function area of organizations.
- 17. UNIONS • Unions are considered a part of internal as well as external force in an organization due to its affiliation from outside political parties. • Unions have influence on all human resource activities right from hiring to separation.
- 18. 3) Individual Challenges Human resource issues at the individual level address concerns that are most pertinent to decisions involving specific employees. These issues almost always reflect what is happening in the larger organization. How individuals are treated also is likely to have an effect on organizational issues. For instance, if many key employees leave a firm to join its competitor, it will affect the competitive position of the firm. The individual issues include •matching people and organization, •ethics and social responsibility, •productivity, •empowerment •job insecurity
- 19. Productivityis a measure of how much value individual employees add to the goods or services that the organization produces. The greater the output per individual, the higher the organization's productivity. Two important factors that affect individual productivity are ability and motivation. Employee ability, competence in performing a job, can be improved through a hiring and placement process that selects the best individuals for the job. It can also be improved through training and career development programs designed to sharpen employees' skills and prepare them for additional responsibilities. Motivation also have significant impact on productivity, motivation refers to a person's desire to do the best possible job or to exert the maximum
- 20. Ethics and Social Responsibility – Corporate social responsibility refers to the extent to which companies should and do channel resources toward improving one or more segments of society other than the firm’s owners or stockholders. •For example, McDonald's established Ronald McDonald houses several years ago to provide temporary accommodation for families of sick children hospitalized away from home. Sears and General Electric support artists and performers, and many local merchants support local children's sports teams.
- 21. Job Insecurity – In this era of downsizing and restructuring, many employees fear for their jobs. For most workers, being able to count on a steady job and regular promotions is a thing of the past. Even the most profitable companies have laid off workers. Companies argue that regardless of how well the firm is doing, layoffs have become essential in an age of cutthroat competition job insecurity is a major source of stress and can lead to lower performance and productivity
- 22. Empowerment In recent years many firms have reduced employee dependence on superiors and placed more emphasis on individual control over (and responsibility for) the work that needs to be done. This process has been labeled empowerment because it transfers direction from an external source (normally the immediate supervisor) to an internal source (the individual's own desire to do well). In essence, the process of empowerment entails providing workers with the skills and authority to make decisions that would traditionally be made by managers. The goal of empowerment is an organization consisting of enthusiastic, committed people who perform their work ably because they believe in it and enjoys doing it (internal control). This situation is in harsh contrast to an organization that gets people to work as an act of compliance to avoid punishment (for example, being fired) or to qualify for a paycheck (external control).
- 23. TRENDS THAT AFFECT HRM • Concern over productivity • The need to be flexible in response to changing business environments • Increasing international competition and the expanding global economy. • Changing characteristics of the workforce
- 24. CONCLUSION IN SPITE OF ALL THE PROBLEMS HR MANAGER ARE ABLE TO OVERCOME ALL THESE PROBLEMS WITH THE SUPPORT OF MANAGEMENT AND EMPLOYEES . IN THE CURRENT BUSINESS WORLD MANAGING ENVIORNMENT CHALLENGES ARE BECOMING COMPLEX TASK AND THIS CAN BE HANDLED EFFECTIVELY ONLY BY OUR GREAT HR LEADERS .