The major challenges of profitability and increased competition have made the HRM function more important to business success than ever before. Discuss. Respond your finding with examples.
(Human resource management is more important in a changing environment than before. There are some challenges and changes, which have great impacts on organizations respective to human resource (HR) function behaviors. These impacts know as globalization, increasing customer’s expectations, transparent market, and human resource management (HRM) provides possibilities to make organizations more healthy and competitive. Where the firm may focus on cost for employee compensation and make conclusions on share services or outsourcings. We can say that, the function of HR units offers and increases some potential of organizations structure and some of human capital, globalizations, increasing information technology, enhanced customer expectations and the transparency of global markets that know as a main shift in a developing world. ) challenges hrm….. Content
To be more profitability in the challenging economy with a large competitors, TIMATCH SDN BHD have globalize their business where they explain that “Globalization is the terms used to describe the increased pace of economic and cultural interconnectedness between different countries.” TIMATCH SDN BHD had increasing the competition depends on the developments of consumer expectations. Consumers await more performance and their needs are more difficult to handle. Moreover, consumer has more access to information and is more informed than ever before. The result of this changing knowledge is the customers anticipation has become stronger than ever before, where the market participants increased the competition because better product and services for more favorable conditions are offered. They know that HR can influence customers’ satisfaction and the performance of the company, where the HR activities as pay, communication, ensuring fair work conditions and others related activities, those activities have impact on the work behavior of an employee, and the employee conditions will influence the production and service process. A main reason of new transparent market is the information technology. Computer and mainly the internet are the fastest growing technologies in t he present and one advantage through the internet for customer is that they can compare various feature of product easier and faster. In a transparent market consumers know that they can usually receive lower cost and higher quality goods and services. TIMATCH SDN BHD knows that to be more profitability, they reduce costs and increase potentials to be profitable and to exist in a fast changing market structure. The functions of HRM may contribute to a ‘healthy’ company development and one component to be profitable is to analyze cost structure and their cost drivers. HRM cost have to be measured, for instance almost 70 per cent of companies’ expenses can be spent on employment issues. Where the cost for recruitments, induction, training, compensation and benefits should be evaluated and compared to alternatives like shared services and outsourcing strategies. If cost is too high, a firm has to think about outsourcing the human resource function. In that case shared service models help to minimize cost by cutting the costs for bureau accommodations in the organizations.
By using the HRM function in staffing area, the issues of workers selection and continuous skill development, work design, equipment maintenance, process improvement, quality control and process reconfiguration are integral to the competitiveness of the water and steel industry. Increasing globalization of this mature industry will heighten competition between regions and countries for new, essentially mini-mill, installations and jobs. If high-paying jobs in steel are to be retained, and new jobs created, enterprises will need a...
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