¶ … changing role of human resource management in the global competitive environment. The paper begins with evaluation of the global competitive environment, particularly with its contributing factors. The influences of information technology, corporate communication, and very strong marketing on HRM function in this environment. This is followed by a discussion on the changing role of human resource managers in this competitive environment that has also been impacted by harsh economic conditions. The other parts discuss the recession challenge, impact of recession on HRM function, and how to overcome the challenges.
HRM in the Global Competitive Environment:
Human Resource Management basically involves conducting several activities and functions that are directed towards attaining, retaining, engaging, and motivating employees. In order to achieve these goals, the most significant roles and responsibilities HRM include performing routine tasks like recruitment, interview schedules, retention, performance evaluation, negotiation, training, employee development, and compensation and benefits. Notably, in the modern business environment, Human Resource has developed as a strategic function that works closely with the strategic management team in adopting and establishing strategic plans and actions. The significance of the human resource function has developed to an extent that it has become a common characteristic of today's business, particularly with the beginning of global competition. Consequently, human resource managers are not only required to think more strategically but to also deal with abstract and hard issues regarding the impact of increased competition on employment stability. The global competitive environment has resulted in major changes like mergers, rapid growth, and downsizing that make attaining, retaining, and motivating workers a challenge.
The Global Competitive Environment:
The global competitive environment has mainly emerged from increased globalization, which is not simply a recent phenomenon. According to various analysts, the global economy was just as globalized a century ago like it is in the modern world. In the recent years, the main contributing factor to the development of the global competitive environment has been the integration of financial markets through the contemporary electronic communication (Bhagria, 2010). The global competitive environment originating from increased globalization has elevated the significance of the development of human resource management in an organization and across businesses. As a result of the changes in the significance of HRM development, the concept of human resource system as a strategic asset has emerged.
The human resource function has mainly been influenced by Information Technology, corporate communication, and very strong marketing. As a result, the HR function is continually realigning itself in reaction to the process cross-function cross-function globalization. In this case, the human resource function is developing new alliances with the globalization functions, which result in the creation of new role and skills and new activity streams. As the transformation of the HR function is regarded as a pre-requisite for survival and growth, business organizations are continually experiencing significant change. Actually, for human resource management, the main challenge would be handling the complexities of change and transformation. However, human resource management is currently playing a leading role together with other business functions in developing necessary internal capabilities and momentum.
Global competition forces organizations to function more efficiently as a business manages its resources effectively. Such an organization is also able to lessen costs that permit either high profit margins or significant flexibility while achieving acceptable levels of returns.
The Changing Role of Human Resource Managers:
As the human resource function continues to experience tremendous changes in the global competitive environment, there is also a significant change in the role of human resource managers. The global competitive environment has not only forced human resource managers to think more strategically in line with corporate planning managers but it has also necessitated them to deal with abstract and hard issues, particularly on the effect of increased competition on employment stability (Santiago, 2003).
In order to safeguard against the disadvantages of global competition, the human resource managers need to be increasingly practical and maintaining an efficient and responsive workforce. Moreover, the human resource managers are required to plan human resource strategies that would be appealing to flexible and dynamic employees. This should be followed by selecting, trained, and encouraged to be increasingly productive than the underlying competitive forces. In this case, human resource managers are no longer regarded as mere implementers or administrators but as strategic partners.
As the modern business environment is expected to be increasingly challenging, the issues facing human resource managers are also anticipated to be change significantly in the coming decades. Consequently, the human resource professionals must play crucial...
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