Answer to Question 1
Answer: Environmental challenges include workforce diversity, skill shortages, globalization, and the rise of the Internet. HRM can handle workforce diversity by increasing cultural sensitivity, raising awareness of growing diversity in the workforce, implementing policies to help break the glass ceiling, and raising awareness of generation gap issues. Organizational challenges include decentralization, downsizing, and organizational restructuring. HR policies can help firms' competitive position by controlling costs, improving quality, and creating distinctive capabilities.
Answer to Question 2
Answer: Technology has increased the need for greater communication skills and ways to handle information overflow. The Internet has also created an open labor market. Online learning is now available, and many workers telecommute. Technology has allowed HR to focus on working with line managers to handle HR issues because details like benefits and payroll are handled more efficiently now. HR managers and line managers have more time to work together to implement programs that are designed to meet the firm's objectives.
