UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

labour force to formulating selection, training and compensation policies for expatriate
employees are major challenges for HRM in the organizations or international
organizations separately.
Organizational restructuring is used to make the organization competitive. From
this point of view, mergers and acquisitions of firms have become common forms of
restructuring to ensure organizational competitiveness. The mega mergers in the banking,
telecommunications and petroleum companies have been visible in our country. Down
sizing is yet another form of restructuring. As a part of the organizational changes, many
organizations have “right sized” themselves by various ways like eliminating layers of
managers, closing facilities, merging with other organizations, or outplacing workers.
There is also a practice to flatten organizations by removing several layers of management
and to improve productivity, quality and service while also reducing costs. Whatever be
the form of restructuring, jobs are redesigned and people affected. One of the challenges
that HRM faces with organizational restructuring is dealing with human consequences of
change.
HRM activities are widening. Particularly the world scenario of globalization along
with modern technological explosion and fastness of information technology have made
lot of change both in selection and needed skill of personnel.
HRM has to give coaching. Coaching need not be construed as training. Coaching
is needed to employees to deal with and to adjust the culture and requirements of people of
different countries. Mentoring is standing a model organization should develop leadership
qualities, tolerance and adjustment to cross-country cultures.
Self Assessment Questions (SAQs)
2. What are the features of virtual organization?
3. State HR issues of virtual organizations.
4. Outline the problems of HR with reference to MNCs.
SUMMARY
The emerging HR trend in virtual organizations is both a challenge and opportunity
to HR experts. The virtual organization is a social network in which all the horizontal and
vertical boundaries are removed. The information and communication technology,
coordinates the activities, combines the workers skills and resource in order to achieve a
common goal.