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The discussion is based on competitive challenges of the time that contemporary business faces the way organizations are dealing with these challenges and competencies required by HR professionals to meet these challenges. Lastly to strengthen the arguments further some examples of firms are provided to analyze how companies are dealing with competitive challenges and the outcome. A business needs to evolve continuously to meet the needs of people. This essay discusses the same ideas and practical approach making the base for modern business and related human resources. The essay is a critical evaluation of the statement companies must reject the notion that loyalty among today's employees is dead and accept the challenge of creating an environment that will attract and energize the people so that they commit to the firms.
The most important challenge is globalization .So that its defined as multi dimensional term involve in complex processes which influence all aspects of people's lives whether intellectual, social, emotional political, economic and cultural. It means international spread of organizations like Macdonald's, Shell; it means international spread of spread of worldwide capital markets, where money can be exchanged across borders easily; it covers increased international trades and growth of international law and policies, evolving industry structure and increased price competition and developing a shared understanding about ways of living and doing businesses. (Francesco Sofo, 2000). As a result of the Globalization the whole world has become a single labor market. The influence of globalization includes a rapidly changing and a highly competitive business dynamic environment. Because of remarkable changes in today's business structure rapid changes have been seen in human resource management and policies (Daft & Marcic 2001). Some of the changes are become versatile training programs mixed compensation package, improved performance criteria and the new selection and recruitment techniques. To make a place in challenging work environment firms has now faced more competition to sustain (Daft and Marcic 2001). To meet these challenges firms have developed their workforces and corporate cultures. Examples of such organizations like Coca Cola, Toyota Motors and Nokia. The impacts of this Globalization are increasing global competition and labor market de regulation Evan, 2005; Lavelle, 2005; Silvia, 2005). Globalization has severely affected female workers, resulting they are forced to work at low pay, part time and accept become temporary jobs( Gray, Kittilson & Sandoz, 2006). Now women are facing more challenges as compared to past (caribean William, 2003). Globalization has also triggered some structural and employment changes in some industries.For examples are tourism & hospitality and financial industries (Jolliffe & Fansworth, 2003; Shanmugam & nair, 2003).The second major challenge of the day is HR innovation. Innovation can be defined as in multiple ways so that broad definition of innovation commonly used is that the the process of bringing any new, problem or difficulty solving idea into use. A more practical approach relates ' a process whereby new ideas are transformed through economic activity into sustainable value creating outcomes. Similarly firm's innovation can be defined as adoption of an idea or behavior and information that is new to the companies (Dessler, Griffiths and Lloyd, 2007) Knowledge management and global information economy has become a competitive environment for businesses and management ( De Ceiri Kramar).
Regarding to Svieby, we can make two divisions of global business perspective that is, knowledge paradigm and old world or in other words industrial paradigms. In first group the concept of knowledge and informations is related to the management and it flows as per firms hierarchy. In second group production is based on knowledge workers and thus the source of idea is collegian networks. Knowledge based management system is further related to the use like IT, technological innovations in manufacturing, transportation, micro processes and transportations.
Continuous innovations in the field of HRM, information technology advancement in the manufacturing techniques and supply chain methods are a remarkable challenge for the contemporary business environment that cannot be easily denied. But based on this perspective that we can divide the firms into two groups. One group is become comprising a number of leading firms today is doing well to tackle this issue and problems. The second group comprising majority of the business still takes this issue ordinarily. This creates a gap in existing research environments that scholars has need to fulfill (Magnusson et al, 2008). Third big challenge for the firms is attracting and retaining people. Attraction means the process of gaining the attention of job seekers, and those not currently actively seeking a jobs and communicating a messages about the firms such that they would consider such that they would consider it a desirable place of works, in order to ensure that quality candidates will be apply when a vacancy occurs. So retaining of staff is making sure that an employee intends to stay with the firms for long time. Then staff turnover has never been viewed positively by firms. In a time turnover has become even greater challenge for firms. So retention covers activities to increased job satisfaction resulting in improved employee commitment leading to reduced turnover (Dessler, Griffiths & Lloyd, 2007).
E-learning is become effective way to train a large, geographically dispersed workforces that needs to be kept up to date constantly.And during the last five years E-learning has become a well known methods that to keep the employees up dated and to provide them with necessary training. For a country like Australia where the population is much scattered, E-learning is a very effective way to train their employees. There are many advantages of using this techniques. For example it is a cost effective, time saving and easy ways of learning. So that it provides the managers with an opportunity to manage their resources and judge staff expertise. Managers can themselves participate in the training process with which can help them to know the staff difficulties. In recent years many developed countries of the world have undergone unparalleled economic expansion. Apparently it sounds good as far as economy is concerned but this enormous expansion has also played a negative role. Skills shortage is the most prominent one. This shortage of skilled workforce has forced employers to think strategically. Globalization has provided the employees with better options to think about. Organization's reputation, leadership, compensation packages, the work environment, facilities incentives, acknowledgment of employees efforts and availability of growth chances are some of those options. These features can make some of the leading companies, the employer of choice.
As result of this are much lower turnover rates in such companies. The second most important aspect of employee attraction and retention is employee engagement which demands effective HR practices. Engagement can be describes as a state of emotional attachment or commitment of employees to their work. So it is very important to keep the employees engaged and not get bored. Different ways are adopted by some companies to keep the employees engaged in workplace. Interesting work, employer flexibility, feeling valued, having training and advancement opportunities are top stimulants affecting employee's decisions to change a job (De Ceiri, H & Kramar, R 2008). Another cost effective way to attract and retain employees is offering perks. For example, casual dress flexible office starting timings earning time-off, job sharing or casual part time positions provide the firm with powerful advantage in the job market ( Sharon Commingham, 2002) Another very important challenge for the organizations is sustainability. Sustainability means the ability of a firm to survive in a competitive environment. For a long time in management studies, sustainability has been considered only as thoughts and reflections. Recent developments have highlighted the linkage between sustainability and HR issues. These recent developments that which include technological developments, globalization and competitive demands that have brought notable changes within and across companies thus entirely changing the traditional concepts of human resource management, strategy and decision making.
Hewlett-Packard (HP) is recognized as the leader in its field. HP is often mentioned as an employer of choice as an organization that has implemented new and innovative HR policies that to attract and retain the key talents. The company website provides all the necessary informations to attract the right type of potential employees. The company website provides information about HP, its founders, a brief history and current developments for example its recent merger with Compaq. HP's philosophy has developed from the principles developed by its founders. It includes reference to changing the world, working together and trusting colleagues. New and different ways of thinking are become encouraged. The philosophy is supported by employee testimonials of their experiences working for HP. HP does not talk about its company and Compaq merger rather it expresses it the people of Hawlett Packard and the people of Compaq have joined to create the new HP. Outwardly it says that people come first at HP. A very clear picture about HP's view about diversity is provided, also describing the ways in which the diversity policy comes into action. HP's employee training and development policy talks of improving employees skills to help them achieve their ambitions. Also tells how graduate careers are developed. HP's website gives the job applicants with information about the organization, the available jobs with brief job descriptions. The information helps the potential applicants to judge whether their profile is in keeping with HP's requirements and culture (Dessler, Griffiths, walker, 2007).
Motivating employees is another challenge for HRM. With the changing workforce, managers must be highly flexible to keep all the employees engaged and motivated. It is very important for the managers to understand that each one of their employees comes with a different cultural background (Jiang Xin). A motive can be defined as an inner drive, impulse, intention etcetera that causes a person to do something or get a certain way. In other words it is "fire in someone's belly". Every person has some motive, the most important to survive. Some people only work for paycheck on which to live. This is a very basic motive. Some people want to excel, having "fire in their belly". To motivate means to create an environment where people work toward a predetermined outcome (T Fuhrmann, 2010) Motivation is defined as psychological force that determines the direction of a person's behavior. In today's hyper competitive market place, the correct understanding of massive correlation between employee motivation and thus organizational performance is very important. Motivation is the key for employee retention and performance. Goal of motivation is creating an environment where employees tend to stay, grow and contribute their skills and experience. Motivation is expressed in terms of employee's commitment, how hard they work and how long they stay (HR Magazine, 2010).
According to Greenberg, Herb; Sweeney, Patrick (2010) now is the time to make strong relations between leaders and top performers. Most important challenge is to make top performers and those with potential to become top performers realize their importance for an organization. Further it is more important to keep them engaged and motivated about their future with the organization. Everything in a company for example, the product, the methodology, can be easily copied by its competitor. The only asset that cannot be copied is company's human resource and especially its top talent.
Here are some examples of the organizations dealing with the competitive challenges.
Neel-Schaffer Inc. is a company that can attract new employees and retain seasoned ones. It's an engineering firm based in Jackson. It took start 25 years ago with 20 employees. Presently it owns 400 employees in 27 offices and an annual payroll of approximately $22 million. Ready Meador has been working with this firm as an engineering manager, for 25 years. He continued with Neel- Schaffer because company provided him with the opportunity to work on projects that can change people's life, a greatest reward for a professional according to Mr. Meador. Mr. Meador is very pleased to be part of Neel-Schaffer. He claims that although the company has grown much and improved in service, the values the company was founded have remained the same.And other example is Mauricka Mckenzie has recently joined the company as water resources engineer. The reason why Mckenzie joined the company is company's solid reputation for being committed to the company. Mckenzie says the company has met his expectations. It's quite obvious that the company is doing well as far as company's human resource planning is concerned, this has made the company grow and established.
HR plays a subservient and reactionary role in the process of business planning.So that HR consideration are not only directly connect to strategy implementation but also process of developing that strategy in the organizations.So that most of organizations and firms are linked with HR on the basis of out sourcing but some are separate department of HR in organization.Due to outsourcing of HR department it is useful for organization in term of trained employes.With the help of outsourcing the skills will available at lower cost thus shorting up porofitability,then trained employes and beneficial for increase productivity and be competitive.While examining the HR outsourcing then firm should be clear on types of services its aspects.And communication on the expectationz should be clear.When we running a new business it sometime get a lot of problems to get everything done proper in time regularly.So that company may not able to hire people to these jobs and may starting getting tied up on the basis of regular routine jobs.In this situation HR outsourcing is best solution.One you have know the need to outsource how do you go about search right people to do the job for you? First you have to find suitable people first and last then you will have to tell them what you exactly need them to do. But outsourcing also have disadvantage like loss of managerial cost.
Whenever you sign contract to have another firm perform the function of entire department or single task, then you are turning the management and control of that function over to another firm, but managerial control will belong to another firm. At last your outsourcing company will not driven by exact standards and mission that you drive the firm. They will drive to make a high profit from the services and that they are providing to you and other business like yours. Treat to security and confidentially is also main disadvantage, for example if you have pay roll medical records or some another confidential informations that you will transmit to outsourcing company and there is risk that confidentially may be compromised. If outsourced function involved share proprietary data of company then it must be taken into account. So that evaluate the outsourcing company very carefully to make sure your data being protected and the contract has penalty clause if an accident occurs. So quality problems also create problems in outsourcing because the outsourcing firm will motivate by high profit. Since the contract will fix the price, then the only way for them to increasing profit will be to decrease expenses. As long as they meet conditions of contract, you will pay. Since you will turn over part of operations of your business to other organizations you will now to be tied to financial well being of that company. And if you will live in a society that has outsourcing firm and they employee your friends and neighbors etc.If your friends and neighbors lost their jobs because they were shipped across the country or across the world outsourcing will bring bad publicity. If you outsource is part of your operations then morale may suffer in remaining work force.
But separate department of HR in organization is very useful because it is integral part of any organization create burden is laid on implementing an effective human resource system in the firm. Therefore a lots of department in organizations that make uses of human resource to setup strategic planning and means to process official assignments and task. The firms can easy handle employee management. The main attractive thing is that if HR in organization is assistance that it provides in recruiting staff and in training employee so this department is more responsible to develop the systematic plan according to which they hire staff and help to build a professional work team. The main human resource system implements in employment appointing which involves in allocating training session for employes and developing test plans for employee and managing and analyze the employee interviews, creating internship oppurtunities.Sometimes most of business does not tolerate the HR department in organization which are developing the policy on biased decision and support of particular workforce.So the bias decision are bad effects in the organization those who are made by HR department .To avoid bias in HR department should be enforced to provoke merit so that professional work is occurred
Forces have converged to support the idea of HR as more of a strategic partner. Corporations are undergoing dramatic changes with important implications for how human resources are managed. Perhaps the most important of these changes is the rapid deployment of information technology and the increasing amount of knowledge work that firms do. Also important are the rapidly changing business environment and the increasing complexity of modern firms. These and other changes have created a growing consensus that very effective human capital management is critical to an organization's success (Jackson, et al., 2003). This raises the important questions of how human capital should be managed more effectively and the kind of functions HR should perform with respect to human capital management and how the HR function should be proper organized in order to add value in the changing business environment. HR has mainly focused on the administrative aspects of human resource management; so that with the growth of information technology, the hold of the organization staff of HR on this work is weakening significantly. Much administration can be accomplished by self-service information technology solutions are that are either hosted by the firm or outsourced.
In order to emphasize on the more strategic initiatives and still ensure efficient service delivery, HR needs to be redesign its supply chain and automate routine services. Standard services are needed to be decentralized in order to gain economy of scale. It is also imperative that HR departments are to make the necessary changes so that they own the powerful decision-making mechanisms and not just the decision. Even today, most HR departments limit themselves by emphasizing on best practices rather than results. They don't connect employee and customer value propositions as they don't feel they own the money spent on the people. So that other barriers to excellent HR service delivery include a penchant for building greater complexity into program designs rather than convincing business leaders they would be better served with a simpler, well-executed system. HR's textbook approach to employee development is another obstacle to successful delivery efforts. The reality is that HR professionals simply don't know because they have spent far too much time perfecting activities that more progressive companies are outsourcing. HR departments to be taken seriously as a strategic partner, it is essential that you make the quantum leap to actually behaving as a business and accepting accountability for business outputs. You must focus on creating and maximizing value and mitigating risks. HR can contribute greatly to the financial success of any organizations, but in order to do this you must be just as focus as any other departments when it comes to achieving business goals.
As I conduct assessments at Toyota organizations that have made attempts to implement lean manufacturing and consistently obtain similar results. The company has sometimes received assistance from outside sources, either in form of training or kaizen event. There is a lean cell here and some forms of a pull system there. Some attempts have been made at a 5-S implementation, with which a couple of tool boards in place and a few documents posted that no one looks at. Change over time at some equipment has been reduced, and so there is some form of a Total Productive Maintenance program with a preventive maintenance schedules that are not up to date. In truth, however, such organizations are not truly implementing lean. Then this failure to implement the Toyota Production System (TPS), or lean manufacturing, is a result of management's inability to create a true lean culture.
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