The Changing Nature of Work and its Implications on Human Resource Management - Research Paper Example

Personnel Development and Personnel Management: The Changing Nature of Work and its Implications on HRM Introduction The globalization effect, the technological developments and the changing dimensions of the labor supply have been highly credited for the changing nature of the work and have implications on the Human Resource Management policies, strategies and practices (Burke and Ng, 2006). Much literature is dedicated on the identification of the factors that have contributed to the changing nature of work and further writing has been devoted to the exploration of the different implications on HR as a direct result of the changing nature of work. Some of the most important constructs that pertain to the changes in the work relate to the dynamic structures of employment, the changing demographics which result in changing workforces, the internationalization of firms which promote opportunities for diverse workforces as well as outsourcing and finally the technological advancements which underpin the new orientation of firms towards knowledge creation and knowledge utilization through the establishment and reinforcement of learning orientations (Livingstone, 2002). This paper focuses on identifying some predominant factors that have contributed to the changing nature of work and the implications on the personnel management and development which underline the need of organizations to adapt and adjust to the change dynamics and eventually develop HR strategies and practices that are reflective of the new changes and the trends emerging in the workforce environment. Within the framework of understanding the changing nature of the work and the corresponding HR developments, the paper reviews and analyzes the case of Tesco (the leading supermarket chain in UK which operates on the international level as well) in an attempt to provide a full dimensioned study that reveals how the nature of work has change and how HR has dealt effectively and strategically with these changes. The Changing Nature of Work Burke and Ng (2006) identify three fundamental factors that contribute to the changing nature of work; the changes in demographics, the technology advancements and globalization. Changes in demographics and the increasing aged population have transformed the nature of work and have resulted in organizations’ workforce consisting of aged employees as well. Today the 60s are the new 40s and this pertains much to the degree in which firms design and implement their Human Resource policies and practices. As Livingstone (2002) notes much of the changing nature comes from within the organizations themselves; that is the employees or the workforce. In that respect, an aging population and an aging workforce has a direct impact on the nature of work (Carre et al., 2000). Marchington and Wilkinson (2005) indicate that this source of change is actually the changing labour supply construct. Labour supply factors are dynamic and in that manner the nature of work becomes dynamic too. A critical issue in the demographics factor is the increasing diversity in the workforce (Dastmalchian and Blyton, 2001; Millett and Harvey, 1999). Workforce diversity is discussed by several authors within the framework of the changing nature of work; although Livingstone (2002) allocates this factor in the changing demographics, Frese (2000) as well as Marchington and Wilkinson (2005) suggest that this is a result of the globalization effect and the internationalization of organizations (this is more thoroughly discussed in the following paragraphs). Moving on to the second factor identified by Burke and Ng (2006), the advancements in technology, the authors posit that this construct is amongst the most important ones in influencing the nature of work. Technological advancements are spotted at the changes in the external environment of the organizations which are subsequently reflected in the internal environment as well (Livingstone, 2002). Technological developments have assisted and enhanced organizational competitiveness and flexibility and in turn have also contributed to the transformation of the work environment. Burke and Ng (2006) indicate that the technology has brought about automation which adversely has reduced the workforce in many technology sensitive firms. The reduced workforce, thus, is handled more strategically by the HR through sophisticated and advanced recruitment and selection processes. The objective of the HR is to recruit and maintain competent and technology literate labour as opposed to the traditional demand for technical skills (Marchington and Wilkinson, 2005). On the other hand, technology is core element to the new network emerging in organizations. Information exchange and information sharing has become dominant in the nature of work and characterizes not only the organizational orientation but predominantly the work environment (Livingstone, 2002). As stated by Carre et al. (2000) and Marchington and Wilkinson (2005) technology has triggered new focus on the part of organizations; the focus on knowledge creation, knowledge utilization and knowledge development. Knowledge has gained much attention and has dominated the demand for skilful but learning – oriented workforce (Burke and Ng, 2006; Livingstone, 2002) The third factor contributing to the changing nature of work is the globalization (Burke and Ng, 2006; Carre et al., 2000; Frese, 2000; Millett and Harvey, 1999). Globalization has spurred up internationalization of firms and global operations. In that respect, organizations are faced with intense competition and diverse workforce supplies. Two fundamental constructs relate to the globalization; the first one is that globalization has offered opportunities to firms for outsourcing and thus changing the structure of the workforce. Marchington and Wilkinson (2005) state that outsourcing has transformed the nature of work in the sense that employees now are confronted with temporary contracts and temporary employment relations due to the option of employing lower cost labour force. The second construct is that globalization has resulted into a ‘global workforce’ which hinders implications on the diversity of workforce. Cultural implications also emerge from this diversity; HR professionals and managers have become more sensitive and more reflective of the cultural issues that pertain to a diversified labour (Burke and Ng, 2006). Marchington and Wilkinson (2005) argue that the changing nature of work is underpinned by the establishment of closer relationships between employers and employees under the psychological contract. The authors claim, that the transformation of organizations and the need for flexibility and competitiveness have constituted the need for committed, engaged, satisfied and involved workforce more necessary than ever. Marchington and Wilkinson (2005) point out that this changing relationship between the two parties (employers and employees) is eventually at the core of the new forms of firms and organizations. While traditionally employment contracts have dominated the organizational practices with regards to Human Resource Management, currently firms are oriented towards the implications of the ‘psychological contracts’ which leverage the skills, capabilities of employees along with trust, commitment and motivation (Frese, 2000). Dastmalchian and Blyton (2001) further state that the structure of employment has also changed; firms are now directed towards horizontal communications between employers and employees, underlined by more close interactivity between the two parties. As such, traditional forms of paid employment have been replaced by more complex and perplex interactive relationships between employers and employees (Frese, 2000). Millett and Harvey (1999) and Livingstone (2002) assert that organizations in their attempt to maintain their competitiveness and flexibility in order to effectively cope with the constantly changing environment (external environment) have turned to the creation and utilization of knowledge as a main source of ‘power’. In a similar tone, Dastmalchian and Blyton (2001) argue that the changing nature of work pertains to the design around knowledge as opposed to the industrial period where the firms were oriented and organized around the production of goods and services along with the control over the labor forces. This has implications with regards to employee management and development in that it pertains to HR management oriented towards creating and maintaining learning organizations (Livingstone, 2002). As Millett and Harvey (1999) suggest, learning organizations are actually new forms of organizations which emphasize knowledge and particularly the creation of knowledge as a competence and capability to deal with the fast changing external competitive environment. The case of Tesco: Changing Nature of Work and Human Resource Management Tesco is a leading UK based international retailer that operates in the grocery and supermarket chain sector. Established in the early 1900s, Tesco started off as a small retail grocery store in the UK market and soon expanded to the entire country through establishing supermarket chains in virtually every part of the region. Tesco, today, maintains the fourth position with regards to retail business on a worldwide basis (Palmer, 2005). Tesco is a highly competitive firm that has managed to exhibit a very remarkable performance throughout the years of its operations. It is one of the leading grocery retailers in UK and at the same time it experiences growth in the international markets in which it competes. The company competes in the European, US and some Asian markets with comparative success and has managed to grow both domestically and internationally into a giant retailer (Bartlett, 2008). The changing nature of work at Tesco is pertinent to three fundamental issues; the first one is the ageing workforce, the second one is the diverse workforce and the third one is the creation and utilization of knowledge. Tesco, as Bartlett (2008) indicates has been faced with the challenge of ageing workforce (changing demographics as noted by Burke and Ng, 2006). The employees in Tesco are not renewed on a constant basis; rather the company due to the fact that it places high emphasis on leveraging competence, expertise and experience of its employees, maintains a workforce that consists (to a great extend) by individuals over 50s. The changing nature of work, in that context, pertains to the fact that the HR policies and practices entail a number of provisions and benefits for the ageing workforce. Pensions and security benefits have been greatly underlined by the HR system in Tesco as a response to the changing dimensions of the labor force. Currently as much as one third of the entire workforce of Tesco consists of ageing employees and to that respect the company has developed HR policies and frameworks which address the needs and expectations of this particular ‘employee segment’. Burke and Ng (2006) suggest that one of the most critical implications for personnel development and management is the orientation of firms towards ensuring that the changing demographics are aligned to the HR strategy of the organizations. Within this framework, Tesco has managed to adopt HR strategies and HR systems which provision for the changing demographics while at the same time leveraging the benefits from the ageing workforce (Bartlett, 2008). The second major issue that is pertinent to the changing nature of work in the case of Tesco is the diverse workforce. Tesco is now a multinational grocery retailer with operations in several parts of the world. As part of its entire expansion strategy and corporate strategy, Tesco aims at ensuring that diversity in the workplace offers optimum results in terms of creativity, productivity and performance (Bartlett, 2008). Given the fact that the company employs individuals with diverse cultural backgrounds, human resource management is oriented towards not integrating the employees but towards underlining diversity as a source of competence and competitive advantage. As Livingstone (2002) claims, a diverse workforce is a sign of the changing nature of work (owing to globalization and internationalization of firms) and in that context, the Human Resource managers need to stress the differences amongst the employees so as to foster creativity and innovation on the basis of the different backgrounds. As Bartlett (2008) claim, Tesco has redeveloped its HR strategies and systems towards this end. Palmer (2005) stresses that the company intends to get the most out of its multinational orientation and this expands to the human resources as well. Tesco emphasizes and invests in the experience of its diverse labor force and highlights that cultural differences are indeed creative and productive within the international operations’ framework (the international operations of the firm itself). Finally, the third major subject with regards to the changing nature of work that is dealt with effectively by Tesco is the orientation towards learning (learning organization) and the utilization of knowledge and information sharing. According to Palmer (2005) the giant retailer has utilized the technological advancements (which constitute one of the main factors for the changing nature of work as Burke and Ng (2006) assert) in embedding technological developments within its competitive capabilities. However, Tesco has recognized that the technology factor does not only contribute to the competitiveness of the firm with regards to its external orientation, but predominantly to the competence of employees in utilizing and creating knowledge. Information exchange and learning orientation are key elements to the high performance culture that Tesco manages to establish. The company has realized that technology has indeed altered the work environment and the way that employees perceive the organizational context and has managed to turn this into a beneficial situation through the focus of the Human Resource Management towards emphasizing the importance of information and knowledge as a means of distinctiveness and competitiveness (Palmer, 2005). As Dastmalchian and Blyton (2001) note, the learning orientation of firms also implies to a great extend flexibility; and in turn flexibility to cope with the fast changing markets and the dynamic environments is a core capability of Tesco (Palmer, 2005). Conclusions The subject of the changing nature of work has been a dominant theme in the literature over personnel development and human resource management, especially in the onset of globalization and technological boosts that predominantly prevail in the new emerging market trends. Globalization, technological advancements and changes in the labor supply structures (combined with changing demographics) have all been credited for the changing dimensions of both the workforce and the work environment (Marchington and Wilkinson, 2005). The importance of studying the changing nature of work pertains to the implications on the human resource management and human resource strategies that organizations need to employ in order to deal with the changes and eventually achieve optimum results from managing the employees. The HR strategies and systems, in the onset of the changing work nature, need to be adjusted and adapted to the new requirements and focus on investing on the needs of the new structures of workforce (Livingstone, 2002). This paper has conceptualized some of the most important constructs of the changing nature of work, various implications on the HR framework and policies of organizations and, most critically, has presented a case study which reflects both the changes in the work as well as the corresponding practices of the firm in the attempt to leverage the changes into beneficial results. Tesco is a very good example of a modern organization which has managed to ‘embed’ changes and at the same time has achieved to successfully and effectively manage these changes in the work towards positive outcomes with regards to its performance. List of References Bartlett, K. (2008). Diversity is a pillar of Tesco Success. Times online. [Online]. Available at: http://business.timesonline.co.uk/tol/business/career_and_jobs/article4881128.ece Burke, R.J. and Ng, E. (2006). The changing nature of work and organizations: Implications for human resource management. Human Resource Management Review, 16(2), pp. 86–94 Carre, F., Ferber, M.A., Golden, L. and Hernzberg, S.A. (2000). Nonstandard Work: the nature and challenges of changing employment arrangements. USA: IRRA Dastmalchian, A. and Blyton, P. (2001). Workplace Flexibility and the Changing Nature of Work: an Introduction. Journal of Administrative Sciences, 18(1), pp. 1-5 Frese, M. (2000). The Changing Nature of Work. In Chmiel, N. (Ed) Introduction to Work and Organizational Psychology. Oxford: Blackwell Publishers, pp. 424-439 Livingstone, D.W. (2002). The Changing Nature of Work and Lifelong Learning in the New Economy: National and Case Study Perspectives. Working Paper No. 1/2002. Research Network on the Changing Nature of Work and Lifelong Learning Marchington, M. and Wilkinson, A. (2005). Human Resource Management at Work: People Management and Development. Third Edition. London: CIPD Millett, B. and Harvey, S. (1999). Understanding Organizations: Identifying trends and changes. Journal of Management and Organisational Behaviour, 2(2), pp.19-29 Palmer, M. (2005). Retail multinational learning: a case study of Tesco. International Journal of Retail and Distribution Management, 33(1), pp. 24-48 Read More