Page 679 - Business Principles and Management

Unit 7

influence and control in the marketplace. Governments as
well as businesses and economic associations are attempt-
ing to reduce existing barriers to international trade by
reorganizing relationships among countries and negotiat-
ing free-trade agreements. Free-trade agreements eliminate
almost all trade restrictions and subsidies between individ-
ual countries and groups of countries.
Probably the most significant change in political structure
affecting business competition and trade was the develop-
ment of the European Union (EU) in 1967. The European
Union was the first and most important international market
system in the world. It was formed to increase the economic
PHOTO: © DIGITAL VISION. and political power of the countries of Western Europe in the
face of growing global competition. The EU agreements sup-
port the free movement of goods, services, capital, and labor
across all member countries. The EU parliament also devel-
ops and coordinates economic, social, and environmental
policies among members. In 2006, the European Union
expanded to 25 countries.

Human resources personnel
help employees prepare for HUMAN RESOURCES’ RESPONSES TO CHANGE
changes in the organization Today, we see dramatic changes in both traditional and new businesses. Dealing
and changes in their own with the results of those changes presents challenges to both employees and
careers. Why is it important managers. Much of the pressure to maintain a strong organization falls on the
for employees to focus on the human resources department. Whether it is a traditional business that has gone
future of the company as well through a major restructuring or a new business attempting to build a unique
as on their personal plans? type of organization, human resources personnel must help the organization be
effective and successful.
Two major responsibilities have emerged for the human resources department
in today’s organizations. Organizational development refers to carefully planned
changes in the structure and operation of a business to adjust to a competitive busi-
ness environment. Career development is a program that matches the career plans
of employees with the employment needs of the business. This chapter focuses on
these two human resources programs. We will discuss how companies can make
changes in the way they are organized while maintaining positive management-
employee relations. We will also examine how individuals can take responsibility
for their own career development through effective career planning.

CHECKPOINT

What are the two major responsibilities that have emerged for
human resources departments in today’s organizations?

The Role of Human Resources in Change

Consider all the ways that employees can contribute to the success or failure of a
business. Employees play a major role in product quality, customer satisfaction,
equipment maintenance, and efficient use of materials to limit waste. You can
probably think of many other ways that employees can help or hurt the business
for which they work.

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