Chapter-2

Environmental Challenges
 Environmental Challenges

• Managers & HR professionals at any country cannot meet the

objectives without understanding and being aware of
environmental challenges.
International HR

• For managers & HR professionals to operate in a global

environment, they must be aware of international challenges so
that they can make a meaningful contribution to the overall
success of the organization’s strategies.
Research findings…
• The research, carried out by CEMS – the Global Alliance in Business
Education - alongside their corporate partner Universum, also found that
• 87% of respondents consider foreign language skills to be important
for employability.
• HR managers see the major challenges of working abroad for their
employees as:
• understanding a new culture (48%),
• cultural shock (24%) and
• language/communication issues (16%).
• Other issues raised include problems with finding a position when
employees return (repatriation), high costs for the company and visa
issues.
External Challenges

• Modern Organizations exists in a turbulent environment filled with challenges

over which an organization and its HR department have little influence.

• Common sources of external challenges to the HR department include:

➢ Workforce diversity

➢ Technology

➢ Economics and

➢ Government.
External Challenges: Workforce Diversity
• Sources of Diversity:

➢ Cultures
➢ Religions
➢ Languages
➢ Educational Attainment
➢ Skills
➢ Values
➢ Wages
➢ Races
➢ Genders and
➢ Other differentiating variables
External Challenges: Workforce Diversity….contd…

• Cultural and attitudinal diversity:

• Cultural Change: Diversity in the work force is also influenced by cultural
values and societal norms.

• Attitudes about communicating to work are changing.

External Challenges: Workforce Diversity….contd

• Diversity through Immigration & Migration

• Diversity may come from immigration across national boundaries or from
migration from another country.
Overall scores showing countries which are
most diverse
• Mexico – score 113
• Ireland – score 97
• Spain – score 91
• United States – score 89
• Netherlands – score 89
• Germany – score 74
• France and Italy – both scoring 73
• Sweden – score 47
• United Kingdom – score 38
External Challenges: Technological Challenges

• Jobs & job skills are changing by technology.

• Artificial Intelligence will give a growing number of workers.
External Challenges: Economic Challenges

• Business Cycle: Over the courses of a business cycle, managers

& HR departments must adjust to changes in their
organizations business plan.
External Challenges: Government Challenges

• Laws & Regulations

• Equal Employment Opportunities Laws

Compensation
Safety & health
Labor relations
Organizational Challenges

• Unions: In companies with unions, the employer and the union

sign a labor agreement that specifies compensations, hours and
working conditions.
Organizational Challenges: Information System
• Managers & HR departments require large number of information. To
store & retrieve information, HR departments increasingly rely on
computer-based information systems that store detailed information
about employees, jobs , laws and other internal and external factors.

• Maintain Employee Privacy it’s a big challenge for the organizations.

Organizational Challenges: Culture & Conflict

• Organizational Culture reflects the past and shapes the future.

Professional Challenges
• Certification
• Other Professional Requirements
Steps in dealing with Environmental Challenges

1. Monitor the environment

2. Evaluate the impact
3. Take proactive measure
4. Obtain & analyze feedback