The Australian Human Resources Institute’s (AHRI) White Paper (2010): people@work/2020 looks at the challenges that HRM faces in the next decade. The AHRI paper also looks at how the Australian businesses and the government’s responded to the global financial crisis and the steps they have taken in responding to the crisis and also how they are equipping themselves to ride the next crisis. The four people management challenges that are likely to have an impact on people management practices over the next 5 to 10 year are as follows: 1. Managing talent
2. Improving leadership development
3. Managing demographics e.g. Gen X and Gen Y
4. Managing globalisation
In understanding how to meet those challenges, we need to understand the role of management and the impact human resources management (HRM) has on today’s leading businesses. In short, management is leading and controlling human and other resources to achieve an organization’s interests, goals and objectives. Human resources management is to implement those interests, goals and objectives in the workplace. There are many factors that influence HRM’s function: the behavioral factor; the resource factor; and the political factor. Many businesses have come to realize that HRM is one of the keys to their profitability and quality of their products produced for their customers. The world is changing rapidly and businesses need to keep up with the changing pace to stay ahead of the game. Leading businesses today need to be proactive in their strategic approach in the marketplace. Hence, HRM are being included in their strategy meetings. There is increasing recognition of the relationship between HRM functions and organizational strategy which has led to the development of strategic HRM (De Cieri et al, 2008, p6). HRM can be a valuable source of information about the company’s resources, i.e. their employee’s behavior, skill sets and attitudes that is required for the organization to...
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