AbstractThe paper purposes to identify the main economic challenges affecting the attaining of the employer goals. In addition to this, the paper will identify ways through which the employers can secure stable employment for the employees despite the economic fluctuations that may exist. This will be in relation to the competitions the firms face in the labor, product and capital market. IntroductionThe challenging and ever dynamic nature of the labor, capital and product market requires effective and dynamic skills in management of human resources. Changes in the economy, demographics and in particular the diversity in the employees and the aging of employees continue to give alterations in the labor market.
Competitions in the global economy has shifted from the investments and trade to operational integrations, management and the formation of strategic alliances which have adversely affected the acquisition and development of employees that are globally competent. The introduction of new technologies has also had its share in this as the increased technological advancements require the expertise of educated and workers who are trained. This has enhanced the need to the human resource management (HRM) to adopt new skills in the sourcing and identification of skilled workers in all job areas (Boxall & Purcell 2003).
The failure to adequately close the skill gaps in appropriate ways through retention and other HRM strategies has made it increasingly difficult for many firms to compete in the increasingly dynamic and sophisticated market. This has led to deliberate attempts to build a human resource capital in many organizations. This has made it a deliberate attempt by HRM in many firms to develop new approaches in the ensuring that adequate skills, knowledge, attitude, experience and lifelong learning exist within the organizational workforce.
Economic challenges brought about by globalization are vital in affecting the approaches through which organizations are managed to achieve their formulated goals and objectives. Industrial Relations (IR) changes which include flexibility, collective bargaining, job functions and relations to working time are brought about due to increased competition, dynamism in the production of products, production skills and quality of productivity. The changes have had direct impact to the Human resource management (HRM) practices and policies. To manage change, the HRM has to institute key elements that include involvement of the employee in the effecting of change, customer orientation and the increasing of the employee skills and capacity to ensure they are appropriate to the production of quality goods and provision of services.
This requires the HRM to effectively adopt approaches that are aimed at motivating, increasing and maintaining their quality production of goods and services. To begin with, organizations exist in an environment that is driven by market pressures the human resource (HR) is to be proactive an invent ideas and early interventions that are aimed at the retention of the most productive workforce.
Strategies utilized by the HR in the retention of the most productive persons include the adoption of a revised leave schedule for the employees. The HR it to device the ways in identifying the activities that are of minimal value to the organization and its resources. In addition, the HR needs to device approaches in identifying the possible threats to the employees in relation to heir emotional engagement.