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NARRATOR: As the field of HR management evolves, a challenging employment environment applies pressure for even more and faster change. Human resource management challenges are often driven by competitive factors that exist in an industry and that require a response of positive practices to enable the organization to remain competitive. Let's explore some of these challenges.

Competition keeps pressure on business organizations to keep costs down so that prices will not become excessive, which can result in loss of customers. An overriding theme facing managers and organizations is the need to operate in a cost less mode, which means continually looking for ways to reduce costs of all types, including financial, operational, equipment, and labor expenses.

Various regions of the United States and different industries face significant workforce shortages because of an inadequate supply of workers with the skills needed to perform emerging jobs. It may not be that there are too few people only that there are too few people with many of the skills required.

The globalization of business has shifted from trade and investment to the integration of global operations, management, and strategic alliances, which has significantly affected how human resources are managed. Racial and ethnic minorities, such as hispanics and African-Americans, account for a growing percentage of the overall labor force. Immigrants will continue to expand that growth. An increasing number of individuals characterize themselves as multiracial, suggesting that the American melting pot is blurring racial and ethnic identities.

Women constitute about 50% of the US workforce, but they may be a majority in certain occupations. For instance, the membership of HR professionals in the Society for Human Resource Management, known as SHRM, is more than 75% female.

The population is aging, resulting in an older workforce. A significant number of experienced employees will be retiring in the near future, changing the part time work or otherwise shifting their employment. Replacing the experience and talents of longer service workers is a challenge facing employers in all industries.

The increased use of technologies in the workplace is greatly impacting the way HR activities and other managerial functions are performed in organizations. In particular, the rapid expansion of HR technology serves a number of important purposes. Administrative and operational efficiency and effectiveness can be enhanced when technology is appropriately incorporated into the workplace. With challenges comes significant opportunities for human resource management to impact effective and efficient strategic outcomes for an organization.

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