Reorganization, downsizing, rightsizing, or whatever term is used means the trend is for less bureaucracy and more personal accountability. This has resulted in a change from multi-layered management structures to leaner and flatter organizational design. This has impacted on the human resource management function and forced organizations to practice strategic staffing. In other words, the hiring and retention of employees is now driven by the overall strategic plan of the organization.
The impact of technology has also greatly affected how organizations deal with people. Not only has technology-displaced workers, it has forced organizations to redesign jobs and seek "knowledge" workers. This has made long-standing hiring criteria unacceptable. It has also forced organizations to update their training methods.
The major shifts in organizational design and operation have changed the "deal" between the employee and the employer. The "deal" between the employer and the employee used to mean that if the employee was loyal, worked hard, and did a good job, the employer would provide a secure position with steady pay increases and financial security.
The world has changed. The new "deal" asks the employee to develop needed competencies; apply them effectively; and, remain flexible in work assignments. In exchange, the organization will support skill development; recognize contributions and pay fairly.
Saturday, May 7, 2011
The Changing World of Organizations
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