PEOPLE RESOURCING

Chapter Two

The Competitive Environment

P&D specialists must have an awareness of current trends and be able to anticipate possible future developments in the employment environment:

• Commercial environment

• Mergers and acquisitions

• Technology

• Internationalisation

• Customer relationships

Mergers and acquisitionsIncreasing competition means an increase in

M&As:over 1,000 involving public companies alone in the UK each year.

There are many different types of merger/acquisition, each with unique consequences in terms of people resourcing.

It is important for P&D professionals to be involved in any initiative, because many failures in M&As seem to stem from a mishandling of the ‘people issues’:- reduced employee commitment and therefore

productivity- role uncertainty- clash of cultures- inertia/apathy

Mergers and acquisitions (cont.)

In such times of change, it is vital to manage employee expectations via communication, involvement, and cultural assimilation.

P&D also have the role of meeting the requirements of TUPE and other regulations:- ensuring that new structures and reporting lines are

appropriate- the harmonisation of terms and conditions- redundancy management- the standardisation of P&D policies and practices

TechnologyNew technologies have revolutionised the

operations of organisations in all industries. The consequences in terms of people resourcing include:- how work is organised- role requirements (job descriptions, etc)- terms and conditions- labour market dynamics (skills required).

New technologies also affect P&D operations:- new HR systems allow advanced reporting- bespoke software (planning, psychometric testing,

reward)- Internet enables access to more information- intranet aids employee communication- HR function outsourcing

InternationalisationRecent decades have seen a rise in international

trade – both globally and on a more local basis

This trend has led to increased competition, new types of organisation, and new challenges for P&D in terms of people resourcing:- managing transnational structures- dealing with different labour markets- M&As involving foreign-based companies- recruitment and management of expatriate

employees- recruitment and management of others who work

across countries (‘occasional parachutists’ and ‘cosmopolitans’)

- new challenges in terms of employee communications.

Cultural variations

There are several different categories of national culture:• ‘linear-active’ – based on order and

planning• ‘multi-active’ – linked to emotion and family• ‘reactive’ – based on integrity and

reliability.

Hofstede classified national cultures according to four characteristics:• power distance• uncertainty avoidance• individualism• masculinity

Institutional structure variations

In addition to national culture, the legal systems and other institutional structures of specific countries have an impact on how organisations operate.

Three models have been identified:• systems with common law origins• codified systems• theocratic systems – based on religious

principles.

The major areas of concern for P&D professionals are discrimination and dismissal laws.

Customer relationships

The increase in competition has also had an impact on the relationship between organisations and their customers – with a shift in power from provider to consumer.

Today’s customers are subject to a broader range of experiences than ever before, leading to higher expectations of both product and service.

P&D resourcing consequences:- customer orientation key in recruitment campaigns,

selection criteria and induction programmes- appropriate performance management and reward

systems- culture of respect, trust and involvement.