torstai 4. toukokuuta 2017

CASE 9

Case 9;

The Challenges for the HR department;

The biggest challenges the HR department faces can be put into two groups; Environmental challenges and organizational challenges.

Quick change is biggest challenge. This means that the environment, in which the company operates, changes quickly. This affects almost all industries and can cause a large amount of stress for the employees which can, in extreme cases, even lead to homicide and suicide at work. Also, the Bureaou of Labor statistics reported that 50% if the Americans working at home say that they are not being compensated for that time. This is not happening only in USA but also in Asia. As an example, employee of Foxconn in China who jumped to his death and employee of Dentsun in Japan who commited suicide It was found out that employee of Dentsun was doing over 100 hours’ extra work every month leading her to her death.  (Gomez, Balkin & Cardy 2016)

The all mighty Internet is yet another challenge for HR department, because there is no boundaries there and it brings information about everything to everyone in a matter of seconds. This means that each customer can not only check the reviews of the products, but also compare the prices as well. And if the company do something unethical, like when Zara let child refugees in Turkey work in their factories (BBC 2016), the whole world can know about in a matter of seconds.

Workforce diversity is yet another big challenge. How can the company arrange it so that all cultures get along with each other, so that no one is discriminated and that the company does not have to face a discrimination lawsuits? The Globalization, which is also a challenge, may increase the workforce diversity and thereby the problems.

The organizational challenges are often a by-product from the environmental challenfes. Those are for example downsizing of the company, decentraöization, technology, data security and outsourcing, which goes hand in hand with globalization. Challenges can also be seen from an individual perspective. How can the HR-Department find the right people? How can they be enpowered and how can their productivity be increase? That’s why every company should create and implement a HR strategy.

The benefit of HR-strategy when the company have put some effort into it;
-       Identify gaps between current situation and future visions
-       Encourage proactive behaviour
-       Identify HR constraints and opportunities
-       Clearly communicate company goals
-       Comply with the 10 principles of the UN Global Impact (UN 2017)

Creating such a strategy is no easy task either. How can company make sure that they maintain the competitive advantage they may have due to their unique strategy? How can strategy manage with the environment= we see that creating the is not easy at all.

As a ground rule, the strategy should fit with the environment, the organizational strategies, the organizational characteristics, and the organizational capabilities. If the strategy fits with all og these, then it should improve the company’s performance by many folds.


Sources:

Gomez, Balkin & Cardy 2016, 23-63. Managing Human Resources, 8 th edition, Pearson.

UN 2017, 4. Global Impact 2017 Toolbox.
URL: https://www.unglobalcompact.org/docs/about_the_gc/UNGC-2017- toolbox.pdf
Accessed on the 07.05.2017

BBC 2016, 1-2. Child refugees in Turkey making clothes for UK shops.
 URL: http://www.bbc.com/news/business-37716463
 Accessed on the 07.05.2017

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