CHANGING ENVIRONMENT OF HRM

Business environment is changing environment and so is HR Environment. THESE FACTORS ARE INVOLVED WITH CHANGING ENVIRONMENT OF HRM Work Force Diversity Economic and technological changes Globalization Organizational restructuring Changing nature of work

WORK FORCE DIVERSITY Diversity has been defined as any attribute that humans are likely to use to tell themselves that persons is different from me and thus includes factors as race, gender, age, values, cultural norms. The Indian work force is characterized by such diversity that is deepening and spreading day by day With the increasing number of women entering the workforce due to factors like economic needs, greater gender equality, education and so on. this has resulted in implementing of more flexible work scheduling, child care facility, maternity and paternity leaves and also transfer to location of husbands p[lace of posting Also as the work force ages employers have to grapple with greater health care costs and higher pension contributions. Creating unanimity from a diverse work force has also become a challenge for HR Manager.

Economic and Technological changes In India there has been an perceptible shift in occupational structure from agriculture to industry to services Modern organizations have become technology driven organizations. So to say men are replaced by machinery. Manufacturing technology has changed to automation and robotisation. One of the major changes that IT has hastened what experts call the fall of hierarchy i.e managers depend less on yesterday’s stick to the chain of command approach. New Technologies coming up every now and then has improved the working of organizations and have made them more efficient.

Globalization The new economic policy of 1991 has among other things Globalized the Indian Economy. There has been a growing tendency among business firms to extend their sales or manufacturing to new markets abroad. The employees working in MNC’s have too much anxiety job changes, new roles new assignments, transfer to new locations, changes in remuneration, changes in career possibilities, changes in corporate culture etc. Formulating selection ,training and compensation policies for expatriate employees have posed major challenges for HRM in the coming years.

Organization Restructuring Is used to make organizations competitive Mergers and Acquisitions of firms have become common of restructuring to ensure organizational competitiveness. Downsizing is yet another form of organizational restructuring. One of the challenges that HRM faces with Organizational restructuring is dealing with the human consequences of change.EG-Human cost associated with Downsizing has been much debated and discussed.

Changing Nature of Work One of the most significant change in the nature of work is that it has changed from manual to mental/knowledge work. In this context, the management expert Peter Drucker’s views are worth citing. He said that typical will soon bear little resemblance to the typical manufacturing company of 30 years ago. The typical business will be knowledge based , an organization composed largely of specialists who direct and discipline their own performance through organized feedback from colleagues, customers, headquarters. As a result Organizations will give growing emphasis to human capital i.e. the knowledge, education, training, skills and expertise of employees.