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Aging work force

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because of shortage me young manpower the organizations are now strive to be with the aging work workforce there the what are the besic step to get work from aging work force and to run with it ..

Aging work force

  1. 1. Mehran University of Engineering and Technology, Jamshoro, Sindh Pakistan ASSIGNMENT #2 HUMAN RESOURCE MANAGEMENT SUBJECT TEACHER: PROF. DR. RIAZ AHMED SOHAG SUBMITTED BY: MOHAMMAD YOUNUS (08IN70) DEPARTMENT OF INDUSTRIAL ENGINEERING & MANAGEMENTSubmitted by Muhammad Younus 08IN70 Page 1
  2. 2. AGING WORKFORCEINTRODUCTIONWith the increase in competition the business in developed countries are facing the lotof critical challenges. One of them is the aging workforce. Today the executives oforganizations are wakeup to realize that their firm will encounter a wave of retirementover the next decades as the baby boomers of the past World War II reaches toretirement age.To retains in this highly competitive market and adopt a strategy in order to win theorder acceptable & winning criteria requires a lot of efforts of young workforce but theaging workforce wont do so .WHAT IS AN AGING OWORK FORCE???The actual definition of the aging varies great depend upon the source. Legally anaging worker considered to be 45 and older age. (The age discrimination employment act 1967 )Other agencies consider an aging employee to be 50 years or older. (The committee of economic development)And the survey of human professional revealed that management varies greatly in theiropinion with age ranging being b/w 40 to 70 years. (Society of human resource management June 2003)AGING WORKFORCE TRENDSThere are basically two trends of aging workforce i) Baby boomers ii) generation XBABY BOOMERSBaby boomers (born b/w 1946 to 1964) comprise almost 46% of the workforce & theyare rapidly approaching to retirement.Those born in 1946 have revealed the age of 60 in 2006, with an expected significancewave of retirement starting from 2006 onwards.Submitted by Muhammad Younus 08IN70 Page 2
  3. 3. GENERATION X The generation X includes those workers who born b/w 1965 to 1983 and they wouldnaturally called as the replace of baby boomers.The generation X workforce comprises almost 30 % of the workforce the end result isthat there are not going to be enough workers to meet labors force requirements. Thepopulation trends regarding generation X are fairly certain at this time is whether thebaby boomers will be swift or gradual.Important to rememberRecent studies of the older worker by American association of retirement of workers(AARP) indicate that the many Americans care choosing to work beyond the rationalretirement age. For some, the reason is financial they do not have suffientest savings toretire. For other there is a drive to remain connected to their work, finding that itprovides a sense of purpose & the opportunity to remain socially connected. Infect according to recent AARP studies expected two third of the baby boomersplans to contributed to work during their retirement year- by 2010.CRITICAL CHALLEGES OF AN AGING WORKFORCEIn this modern world where business is highly competitive and for the survival its requireshighly human competencies, skills, brainpower, innovative, skill miss peoples forcorporate sustainability but what is surprisingly impact in today’s world is the boomingeffect of workforce.To be with the booming (aging) workforce organizations are strive to face a lot ofchallenges. Some of them are as follows.ESCALATING COSTCompanies have been focusing in reduction of cost through downsizing, outsourcing,reengineering & other methods during most of 1990’s and early 2000’s. in mostinstance, admirable cost efficient & lean organization have been successfullyachieved. Now however, the world is entering a new era of unavoidable costescalations, especially due to the significantly increases cost of skilled humanresources. It is simple issue of supply & demand, the shrinkage supply of talent & skillsand increasing demand for high level knowledge & innovative labor force, leading toworkforce cost escalation. Furthermore, the aging workforce requires significantly additional investment in theright type of company facilities, health programs, appropriate technological supports,Submitted by Muhammad Younus 08IN70 Page 3
  4. 4. retention & rejuvenation incentives & further training & development. All of this mean aimminent escalation of cost for any enterprise that requires the right types pf expectedto move in the senior management ranks, will not grow but significantly decline ( by 19% in the U.S, 27 % in Germany, 19 % in the U.K, 9% in Italy and respectively 10 % & 8% inJAPAN & CHINA ). Conversely, the number of aging workers will increase subfamily e.gin the U.S the workers aged 45 to 54 will grow by 21 % , & the number of 55 to 64 yearsold will grow by 52 %As a result of this retaining the aging workforce causing o creates within anorganization because of empowerment in the authority & not following the act.THE PRESSURE OF INNOVATION(The Necessity to re-invent company value (products & services) in the knowledge –networked global economy)Another reason why the aging workforce is becoming a critical issue right now is theglobal pressure on innovations. It is a well know fact that since mid – 1990’s the worldhas shifted from an industrial economy to a knowledge- networked, globalization,speed of information exchange, & rates of new product / service innovation.Combined with increased speed to market in globally – integrated demand & supplychain. With a declining & specially aging workforce the pressure to maintain & expandstrategies & operations tools to contain such costs within competitive parameters. Italso requires a new mindset concerning employees & their related cost in the future,enterprise will see their workforce increasingly as an investment rather than just cost tobe contained or so controlled.CAN THESE CHALLENGES BE MANAGED ???How, what , where are the solution for my companies ??? The challenges of an aging workforce can indeed be managed, but as indicated above itwill require a paradigm shift for enterprise leadership & organizational management.Three essential pre-requisites of such a paradigm shifts are i) REALIAZATION == Realization, based on a through understanding of the interested advantage concerning the aging workforce. ii) Insight into the implications of an aging workforce of an enterprise business model. iii) Strategic & operational capabilities to conceive (design) & implement appropriate solution- what we term action fields in this article to handle the challenges of an aging workforce.Submitted by Muhammad Younus 08IN70 Page 4
  5. 5. THE PERFORMANCE OFAGING WORKFORCE SHOULD BE MEASURES?? As we know that every management expecting from the workforces the two most value added dimensions i-e increase productivity & increased creativity. Productivity is basically the efficiency mechanism and is concerns, with either greater output for same input, or sense output for less input. Existing management already minders that the aging workforce is necessary causes the declining the productivity because an aging workforce posses lack of creativity and innovations. There fore today’s management is be very much careful in managing the aging workforce as means to at least the actual productivity. 5V- SCORECARD for measuring the performance of an AGING WORKFORCE The various attempts are made to measure the performance of an aging workforce; the 5V- scorecard is one of them. It is basically the concept of an integrated aging workfare scorecard tool consisting of face critical aging workforce areas to manage, guide and measure both creativity & productivity of an enterprise aging workforce. These are five basically organizational fields… i) enabling new managerial mindsets ii) Facilitating new knowledge management process. iii) Implementing appropriate health ( physical, mental & emotional ) process. iv) Adopting relevant human resource management (HRM) programs & practices & Faciliting appropriate work environmentSubmitted by Muhammad Younus 08IN70 Page 5

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