Presented by:

Kush Sunderia Dhaval Patel

Trends in business environment Changing nature of Work Demographic, Societal & workforce Change in the nature of Employment relationship

Globalization of business Mergers and Acquisitions Downsizing

E.g. Toyota motor corporation makes Cars in USA and India, McDonalds Sells hamburgers in India and China, Marks & Spencer sells Products in India. The world has become a global village and business has become global in character. Thus, Domestic firms are competing with the foreign companies world wide. This has resulted into High Competition, Outsourcing, Cost consciousness, technological advancement etc. Indian companies have turn out to be more aggressive to capture overseas markets.

The trend was started by IBM by acquiring Daksh, a BPO firm (known as IBM Daksh) and HR services leader Adecco took over Bangalore-based HR services company PeopleOne. Most of the foreign and Indian companies has tie ups to receive the benefit of the market which are favorable. The challenge of M&A is retrenchment of the staff that becomes surplus. Also, managing the employees insecurity towards their job.

It is elimination of jobs in planned manner. Its goal is to balance its staff to be able to meet changing needs. The Issue further is to manage the morale and commitment of the employees with the firm after the merger.

Industry and occupational shifts Technological advancements Outsourcing Flexible work arrangements

Since world war 2, There has been a shift from manufacturing jobs to service jobs. During 1981-1991, The annual growth rate of industry was 6.8% where as, service growth was 5.8% During 1991-2001, the growth rate of service was 7.8% while industry growth rate was 5.8% More jobs are created in service sector in compare to the industry sector. It is projected that the service sector in India will have an employment growth of 20% per year, to a total of 16 million by 2012. Employment in BPO/Software is projected to rise to 3.2 million by 2012. Use of high productivity technology and adoption of new organizational techniques has contributed to increase productivity but has reduced jobs in manufacturing.

Use of computers has permanently altered the way the organization is working. Use of internet to conduct business has resulted in the growth of e-business and virtual organization, including the virtual workers behind it. Also, the increased in technology has increased the burden on people to work for 24/7. The use of advanced technology has also resulted in more jobs that require high skill. Thus, trainings are required to skill them and the old skills are getting obsolete with the creation of the new skills.

Outsourcing means hiring someone outside the firm to perform the tasks which can be done internally. E.g. Firms hire advertising firms for handling of product promotions. Outsourcing helps the firm in focusing their activities towards the core competencies, increased organizational flexibility, cost reduction, expertise in service. HR concerns and also challenge in outsourcing is that the employee may lose the job due to outsource of the Work.

Various optional work arrangements has been developed now a days like teleworking or distance working or home based working. Part time job is also a way of increasing the flexibility to do any work. More temporary employees are also hired, so that at the time of requirement one can hire more number of employees. Also, permanent employees are offered with the flexible work hours, so as to provide a great control to the employees over their personal lives. Such trend is more visible in firms with a large populations of Knowledge workers like software industry. Teleworking has been increasing now a days and the individuals are less who are performing such works, yet firms are increasingly offering such works to overcome various administrative costs.

Workforce diversity Ageing population & Ageing Workforce Educated and knowledge Workforce Women in workforce Changing family structure Global workforce Contingent Workforce & Workforce flexibility

Workforce Diversity Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, capabilities/disabilities and in the thought process.

The Silent Generation Matures The Traditionalists The Veterans

Age 59+ -- born on or before 1954

Baby Boomers
Age 41 58 born between 1955 to 1972

Generation X
Age 24 40 born between 1971 - 1989

Generation Y Millennials -- Nexters

Age 23 and Under born after 1990

Lived through a common set of social and historic events

Attitudes Ambitions World views Approaches Ideas Values

Each generation approaches work differently and has different needs when learning.

Values and Characteristics

Hard Work Loyalty Authority Traditional Values of god and country Dedication Tend to be silent until asked Cautious Save for a rainy day Can do WWII and Korean War Great Depression JFK Assassination

Attitude Influences

Learning Style

Listen intently to person in authority Follow processes and procedures

Values and Characteristics

Youthfulness Health Personal Gratification Material Wealth Competitive in the workplace

Attitude

Optimistic believe they changed the world We have always done it this way.

Influences

Cold War and Vietnam War Economic prosperity Civil and gender rights The space program Television Tell me, show me, let me do it, help me Will this be on the test?

Learning Style

Values and Characteristics

Motivated by money Welcome diversity Want balance in their lives Self reliant Desire work/life balance Value free time and fun

Attitude
Influences

Misunderstood caught in the middle

Computers and the internet Watergate, MTV Single-parent households, latchkey kids Raised by work-driven parents Linear thinking Relies on technology Competitive

Learning Style

Values and Characteristics

Self-reliant Family-oriented and community oriented Savvy and demanding consumers Fun seeking Mobile, connected Bored at times need change Value their parents Hopeful and optimistic about their future Skeptical Global environment AIDS Technology is natural and expected

Attitude Influences

Learning Style

Mosaic (randomly connect data point and form a conclusion) Need to be entertained and have FUN Need constant learning and feedback

Every generation feels misunderstood and unvalued by the others. The rules may be different in the minds of each group. The generational gap is an additional communication hurdle.

Ask for their input they may not share initially or without being asked. Use face-to-face or written communication when you can. Follow up your word is your bond. Dont allow them to feel you are wasting their time.

Be aware of body language. Use open and direct in communication but avoid controlling language. Be prepared and expect to be pressed for details. Present options and be flexible.

Comfortable with informal communication style and tools such as email. Shorter sessions work better no long speeches please. Give frequent feedback and ask for their input. Share information keep them in the loop.

Use email to communicate information. Use action words and challenge them at every opportunity. Dont talk down to them. Use humor and create a FUN learning environment. Encourage them to take risks.

Points to be interpreted from the table

Comparison of the fertility rate Population under age of 15 years Population above age of 65 years What would be the working population in future???

Example of Employment at Wipro BPO Year 2002 approx 2000 employee Year 2003 approx 4000 employee Year 2004 approx 9500 employee

India China Rest of world

21% 24% 55%

Points to be discussed Demand by employer Educated pool is enough???? What about Trained workforce???? Skilled people immigration to developed countries Few Solutions: Collaboration with Educational institute Promote employees for further education Training, Re-training and development activities.

According to survey in 2005, In USA , women professional and technical workers comprises 55% of total workforce. For UK it is 45% and for Japan it is 46% In 2009-2010, women were 26.1% of all rural workers, and 13.8% of all urban workers.

According to Gender Diversity Benchmark, 2011, India has the lowest national female labour force and the worst leaking pipeline for junior to middle level position women.
28.71% of those at the junior level of the workplace 14.9% of those at the middle level 9.32% of those at the senior level

Nucleus structure Late marriage Single working women Dual Career couples

It has major impact on work life balance of employees Like, ( For poor Work-life balance)
Higher rates of absenteeism Higher rates of staff turnover Reduced productivity Decreased job satisfaction Rising healthcare costs Lower levels of organisational commitment and loyalty = Poor customer service

What is work-life balance ????

Worklife balance is a broad concept including proper prioritizing between work (career and ambition) on one hand and life (Health, pleasure, leisure, family and spiritual development) on the other. Related, though broader, terms include lifestyle balance and life balance

Parent-country national employee who was born and works in the country in which an organizations headquarters is located. Host-country national employee who is a citizen of the country (other than parent country) in which an organization operates a facility. Third-country national employee who is a citizen of a country that is neither the parent country nor the host country of the employer.