The innovation of the automobiles had a significant social and economic impact on the United States. In the early 1900s, Henry Ford was well known for establishing the Ford Motor Company and five years after he launched his company, he introduced the first Model T (History.com, 2013). During this time, automobiles were considered luxuries, and 10,000 Model T automobiles were sold that year (History.com, 2013). In the 21st Century, automobiles are no longer luxuries but necessities. In addition, due to the technological, economical, and social changes, the automobile industries as well of organizational practices have changed since the 20th century (Greer, 2001). Several developments such as global competition, advanced technology, and reengineering are more likely to affect human resource managers in the automobile industry (Greer, 2001, p. 68).
Human Resource Issues Managers in the Automobile Industry Should Be Prepared For
Based on the case study, global competition is an issue that human resource managers should be prepared for in the future. Human resource managers should emphasize the need to train and educate employees, so that employees can perform at the level of world competitive standards (Greer, 2001, p. 66). If highly skilled employees are trained in this way, then the number of U.S. expatriate employees could increase. As of now there is declining number of expatriate employees and this may cause weak global competitiveness. For instance, the production of automobiles in Canada is less expense than in the United States yet the number of automobiles that are produced in Canada is significantly higher (Greer, 2001, p. 77).
Furthermore, in 2009, the number of new vehicles being sold in the United States had declined by 37% which was at its lowest in the 50 years (Bunkley, 2009, p. 1). Strict credit markets and the recessions were listed as reasons why customers were not buying new vehicles. During the recession, foreign automakers were suffering too, however the Chinese automobile industries were still selling more vehicles than the United States, and automobile companies in South Korea (Hyundai) and Japan (Subaru) reported sale increases (Bunkley, 2009). Despite the economy, human resource managers should be prepared for global competition.
Moreover, technology will continue to have an impact on structure of automobile industries and even more in the future. Incorporating advanced technology in the automobile industries will require employees to gain more skills and managerial education. Hiring employees with these qualifications will affect human resources managers (Greer, 2001). Therefore, managers will not only have to recruit more employees with these qualifications but also train employees who lack skills in specific areas. Regarding the benefits of technology, technology has allowed companies to be able to improve inventory control, sales, and allow skilled workers to work under less supervision due to smart...