Challenges and opportunities affecting the future of human resource management

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Abstract

Today, the field of Human Resource Management (HR) is experiencing numerous pressures for change. Shifts in the economy, globalization, domestic diversity, and technology have created new demands for organizations, and propelled the field in some completely new directions. However, we believe that these challenges also create numerous opportunities for HR and organizations as a whole. Thus, the primary purposes of this article are to (a) examine some of the challenges and opportunities that should influence the future of HR, and (b) provide an overview of the very interesting articles included in the special issue. We also consider implications for future research and practice in the field.

Section snippets

Change from a manufacturing to a service or knowledge economy

One of the major challenges influencing the future of HR processes is the change from a manufacturing to a service or knowledge-based economy. This new economy is characterized by a decline in manufacturing and a growth in service or knowledge as the core of the economic base. A service economy can be defined as a system based on buying and selling of services or providing something for others (Oxford Dictionary, 2014a). A knowledge economy is referred to as the use of information or knowledge

Rise in globalization

A second factor calling for changes in HR processes is the rise in globalization. Globalization in this context refers to organizations that operate on a global or international scale (Oxford Dictionary, 2014b). Organizations operating in a global environment face a number of new challenges including differences in language and culture of employees, and variations in social, political and legal systems. Multinational corporations (MNCs) are large companies operating in several countries that

Growing domestic diversity

Apart from changes in the economy and globalization, organizations are also faced with major shifts in the composition of the U. S. population. In particular, it is expected that our population will be older and more ethnically diverse by 2060 (U.S. Bureau of Census, 2014). For instance, by 2060 one in five Americans will be 65 years of age or older, and the number of working age people in the population (ages 18 to 64) will decrease from 62.7% to 56.9%. Along with the age-related changes, the

Emerging use of technology

Over the past 30 years, one of the major drivers of change in HR has been the increased use of information technology (hereinafter referred to as technology) to collect, store, and utilize data for decision-making (e.g., Gueutal and Stone, 2005, Strohmeier, 2007, Strohmeier and Kabst, 2009). Technology, especially, the World Wide Web, has transformed key HR processes in organizations (e.g., e-recruiting, e-selection, e-training), and modified the nature of jobs and the relationships between

Overview of articles in special issue

We reviewed several factors that should influence the future of HR in organizations, including changes in the economy, globalization, domestic diversity, and technology. These are only a few of the challenges that will affect the future of the field. The following articles consider more issues that are likely to shape HR in the future. In this special issue we have assembled a very interesting set of articles on the future of the field. Some of these articles take opposing views about the

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