External Challenges

HR management Challenges: The environment faced by HR management is a challenging one; changes are occurring rapidly across a wide range of issues. A study by the Hudson Institute, entitled Workforce 2020, has highlighted some of the most important workforce issues. 3 From that and other sources, it appears that the most prevalent challenges facing HR management are as follows: •

Economic and technological change

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Workforce availability and quality concerns

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Demographics and diversity issues

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Organizational restructuring

Economic and Technological Change Several economic changes have occurred that have altered employment and occupational patterns in the United States. A major change is the shift of jobs from manufacturing and agriculture to service industries and telecommunications. This shift has meant that some organizations have had to reduce the number of employees, while others have had to attract and retain employees with different capabilities than previously were needed. Additionally, pressures from global competitors have forced many U.S. firms to close facilities, adapt their management practices, and increase productivity and decrease labor costs in order to be-come more competitive. Finally, the explosive growth of information technology, particularly which linked to the Internet, has forced many changes throughout organizations of all types. OCCUPATIONAL SHIFTS Projections of the growth and decline in jobs illustratesthe economic and employment shifts currently occurring. Figure 1 — 1 indicatesthe occupations with the largest percentage growth anticipated between 1996and 2006. It is interesting to note that in Figure 1 — 1 most of the fastest-growingoccupations percentagewise are related to information technology or health care.The increase in the technology jobs is due to the rapid increase in the use of in-formation technology, such as databases, system design and analysis, and desktoppublishing. The health care jobs are growing as a result of the aging of the U.S.p