External Business Realities - Hrd

EXTERNAL BUSINESS REALITIES

WHAT HR PROFESSIONALS SHOULD KNOW

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2010

JAYAKRISHNAN V NAIR

AMRITA SCHOOL OF BUSINESS

9/17/2010

1. INTRODUCTION

Today’s business model has been structured in such a way that, in every organization the HR professionals and their stakeholders have too frequently operated in separate worlds. But to create value for the stakeholders HR professionals must learn to help them by understanding the fundamental external business realities that shape industries and companies.

The realities that influence business may be grouped in to three

* Technology

* Economic and regulatory issues

* Workforce demographics

A fourth factor globalization cuts across and influences the other three

To maintain the credibility HR professionals must know the trends in each of these areas, the facts behind the trends, and where these facts may be accessed. It requires constant awareness of the world and keeps asking four important questions, which are

1. What are the important trends for each of these realities

2. What are the key data points that illustrate these trends

3. What do I need to know about these trends in order to contribute to management team discussions

4. Where can I find this information

2. TECHNOLOGY

Technology can be defines as the application of knowledge to the transformation of things into other things. It is an important aspect of changing business environment. As applied to organizational processes, technology may be used to automate transactions in HR, finance, sales, legal operations and purchasing. HR professionals cannot ignore technology. Depending upon the industry in which they work they must understand how people create new technologies that keep their firms ahead...