Implication of the Converging Economy for
Human Resource Management
Human resource management is changing in
the recent past but has not been given
➢ External market pressure e.g. labor market,
flexibility and responsiveness are affecting
human resource management.
➢ The purpose of this study is to focus on the
effect of the convergence of the new and the
old economies of human resource
➢ Intangible asset e.g. human assets
Information technology can be used to
disseminate information and facilitate
alternative work arrangements.
➢ Other functions are decentralizing physical
➢ Creative and innovation which involves
incubators and knowledge market.
➢ Workplace attractiveness which comprise the
blending of work and home.
As companies compete in the global market
place, the diversity of their clients and
➢ Companies need to establish physical
➢ Manage a diverse workforce which include
Keddie Cam and Feminine Managerial style.
➢ Conduct business internationally that
includes virtual expatriates.
Intangible assets and human resource
management practices leads to competition
for the best employees.
➢ This causes Boomerang effect.
➢ Use of unconventional labor market.
➢ Leads to professional and community
HR system and competitive strategies ha
been labeled strategic human resource
organization should leverage their unique
assets to develop sustained competitive
View human resource assets from an
Employees get organized by market for
Existing HR departments to work in
partnership with other firms.
➢ HR function could be outsourced to the
➢ other firms may include HR consultants
organization and other firms that perform HR
The effects of implication of the converging
economy and human resource management
can be investigated through the following
➢ Qualitative method
➢ Quantitative method
➢ Q-sort interviews
➢ Delphi approaches