mix when making strategy volatile political situations, contentious global trade issues, fluctuating exchange rates, and unfamiliar cultures. They must be more literate in the ways of international customers, commerce, and competition than ever
before. In short, globalization requires that organizations increase their ability to learn and collaborate and to manage diversity, complexity and ambiguity.
The Changing Social Context and Emerging Issues
Profitability Through Growth During the past decade, most Western companies have been clearing debris, using downsizing, reengineering, delivering and consolidation to increase efficiency and cut costs. The gains of such yard work, however, have largely been realized, and executives will now have to pay attention to the other part of the profitability equation revenue growth. Technology From videoconferencing to the Internet, technology has made out world smaller and faster. Ideas and massive amounts of information are in constant movement. The challenge for managers is to make sense and good use of what technology offers. Not all technology adds value. But technology can and will affect how and where work gets done. In the coming years, managers will need to figure out how to make technology a viable, productive part of the work setting. They will need to stay ahead of the information for business results. Otherwise, they risk being swallowed by a tidal wave of data not ideas. Intellectual Capital Knowledge has become a direct competitive advantage for companies selling ideas and relationships think of professional service, software and technology-driven companies and an indirect competitive advantage for all companies attempting to differentiate themselves by how they service customers. Form now on, successful companies will be the ones that are the most adept at attracting, developing, and retaining individuals who can drive a global organization that is responsive to both its customers and the burgeoning opportunities of technology. Thus the challenge for organizations is making sure they have the capability to find, assimilate, develop, compensate, and retain such talented individuals. Change, Change and More Change Perhaps the greatest competitive challenge companies face is adjusting to indeed, embracing nonstop change. They must be able to learn rapidly and continuously, innovate ceaselessly, and take on new strategic imperatives faster and more comfortably. Constant change means organizations must create a healthy discomfort with the status quo, an ability to detect emerging trends quicker than the competition, an ability to make rapid decisions, and the agility to seek new ways of doing business. To thrive, in other words, companies will need to be in a never-ending state of transformation, perpetually creating fundamental, enduring change. The five challenges described above have one overarching implication for business the only competitive weapon left is organization. Sooner or later, traditional forms of competitiveness-cost, technology, distribution, manufacturing, and product features can be copied. They have become table stakes. You must have them to be a player, but they do not guarantee you will be a winner.
1.5 THE CHANGING ROLE OF HRM In an organization, there are tall people, short people, fat people, thin people, black people, white people, elderly people, young people and so on. Even within each