Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

The Objectives
 Identify the external challenge toward our society
 Discuss why HR activities are crucial to global challenges

 Explain The manager’s and the HR department’s role in addressing

cultural diversity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

EXTERNAL CHALLENGES
 WORKFORCE DIVERSITY
 TECHNOLOGICAL CHALLENGES

 ECONOMIC CHALLENGES

 GOVERNMENT CHALLENGES

(Sumber : Werther & Davis)

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
ORGANIZATIONAL CHALLENGES
 UNIONS

 INFORMATION SYSTEMS
 ORGANIZATIONAL CULTURE AND CONFLICT

(Sumber : Werther & Davis)

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
21st-Century Corporations

 Global

 The timeline for the globalization of companies:

 Early days: a company that sold goods overseas
 Middle period: a company that manufactured and sold goods in other

countries
 21st Century: a company that is able to call on talent and resources around

the globe, just as it sells its goods and services around the globe
 Speed

 Speed in the 21st century company is a business strategy built on a

virtual network of suppliers, manufacturers, and delivery firms

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 People-Driven Enterprises

 The successful 21st-century company is one that realizes that it is

the people that make up the business
 Some key challenges for managers of 21st-century enterprises:

 Understanding the challenges the enterprise faces

 Seizing opportunities

 Managing frustration

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 Key Features of the
Competitive Business Environment

 Globalization

 Technology

 E-Commerce

 Changing demographics
 Increasing cultural diversity

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Strategies
 Competitive strategies of the 21st century company
 Innovation
 Quality Enhancement

 Cost-Reduction

 Speed

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 HRM Requirements of Competitive Strategies

 Innovation Strategy Requires

 Highly Skilled Employees
 More Employee Discretion

 Greater Investment and Risk

 Quality-Enhancement Strategy Requires

 Repetitive and predictable behaviors
 Long-term focus

 Modest amount of cooperative, interdependent behavior

 High emphasis on quality, modest concern for quantity

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 HRM Requirements of Competitive Strategies

 Cost-Reduction Strategy Requires

 Tight fiscal and management controls
 Minimization of overhead

 Pursuit of strict economies of scale

 Speed Requires
 Highly skilled employees who are time-focused
 Managers and employees must support change

 Company culture must support the fast-pace

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 Business Trends and
Human Resource Competencies
 Human Resource Managers must play four key roles that are
consistent with current business trends:
 Strategic Partners
 Innovators

 Collaborators

 Change Facilitators

(Sumber : cascio)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 Global Village and Its HRM Implication
 Culturalenvironment
 Work-force diversity

 Changing skill requirements

 Corporate downsizing

 Continuous Improvement Program

 Reengineering Work Processes for improved productivity

 The contingent work force

 Decentralized work sites

(Sumber : De Cenzo & Robbins)

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.