1. PEOPLE RESOURCING Chapter Two The Competitive Environment

2. 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

3. Mergers and acquisitions • Increasing 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

4. 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

5. Technology • New 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

6. Internationalisation • Recent 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.

7. 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

8. 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.

9. 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.