Managing demographic change and organizational impact

Managing Demographic

The change in the world structure population and the trend of migration of people from developing to developed countries raises critical issues that no company can ignore. Demographic changes are already influencing human resource and other departments of companies across major cities of developed nations like Japan, United States and German (Florian Kohlbacher, 2010). Demographic, therefore can be defined as the study of composition of social entity in terms of its members attributes which includes such factors such as gender, age, ethnicity, occupation, seniority, salary level and marital status (Kirton. Greene 2011).

However, during times of global economic and financial crisis, many companies usually deal with issues that seem to be more urgent, but with demographic change the issue is more complex, for example German's companies doing business in Japan need to face the challenges of demographic change in Japan population if they want to be successful in this market in the future. At the same time, being engaged in a rapidly age market like Japan provides companies with the chance to learn early from successful examples and solutions and then apply them to the global market situation. The demographic change reflects a global trend which is affecting all industrialized countries and some of the several emerging markets (Pascal Gudorf, 2012).

However, in the United States demographic workforce has been changing drastically. It is more diverse, racially and ethnically, more women are entering the market than ever before, and the average age of its members are scaling steadily (Robert Matthew, 2011). As a result of this demographic shift, human resource management in organizations has adapted a more variety of labor force both externally and internally. The human resource has spent time to put in place policies and rules, which ensures that there is no discrimination in the workplace (Scandura. Williams, 2010).

Moreover, in countries such Mexico, Bangladesh, China, Nigeria and India which are densely populated and a large number of the population are the youth. The demographic have shifted too with most young people taking up jobs. Besides, bigger cooperation around the globe is venturing in these markets. For example Ford Corporation established one of its biggest plans in Mexico and many other firms moving to China and India from the United States. This however, affects the human resource management and change demographic of countries where these companies are ending (D Balk, 2011).

Analysis of Managing Demographic

In Japan for example, the demographic has changed fast with the rate of birth rate is sagging too low and demand of human resource is rapidly high. This has left the human resource void to be filled with the older generation. Therefore companies which had established base in Japan are forced to look for workforce such as skilled labor outside. This triggered the immigration of people from developing countries to Japan to take up some of the workload (Robert L. Mathis, 2010).

However, Japan being the first country in the world to taste the bitter of demographic, it has stood credited for the way it handled the situation. It directly confronted the effects of the changing demographic structure, and that is why it's playing a valuable pioneering role for other countries. Japanese companies adjusted better to aging customer base. It increases the retirement age for its citizens that would provide a higher life span and longer productive in productions in their industries (Cornelius Herstatt, 2012).

Ken Dychtwald an America demographic and management expert and his postulate team said that "it's time to retire." He acknowledged that the raising of retirement age as well as creating more flexible re-arrangement of work relations in Japan have played an important step in the right direction to manage demographic in Japan and therefore nations should adapt the same system (Fazit . Ausblick, 2011).

Besides, Japan companies introduced part-time or consulting contracts for baby boomers with high-level of production to counter the challenges which proved to be financially attractive because they will expect a reduction in income even in the case of continued employment at the same company upon reaching retirement age (Florian Kohlbacher, 2011).

This proved to manage the demographic risk in Japan and kept many companies in the market even as human resources are being imported to the country. It countered the lost of human resource through various calamities which took place before in Japan such as several Tsunami or earthquakes and the leak of nuclear plant which caused a lot of casualty.

In United States several policies and laws have been adapted to curb the demographic changes in employment sectors. For example when applying for employment you are not supposed to include your gender, race and age. This to avoid any eventuality of discrimination based on gender, age or race. The United States doesn't tolerate age discrimination and respect to the old is highly upheld at all level of the company. This however, to ensure that age discrimination in a workplace is unacceptable.

The degree of diversity of workforce as really changed that is in terms of age and skills, these diversities has also grown markedly over the last decades. Nowadays, a good number of women have joined the workforce which increases their number in the workforce tremendously, and proportion balance of different ethnic group has also made their entries. However, to manage this demographic, anti-discrimination legislation was enacted which ensured that all people are treated equally at workplace (Shenhav. Haberfeld 2010).

Some human resource management policies and practices are made specifically to target certain group within the workforce. For example, "Equal Employment Opportunity" (EEO) initiatives in New Zealand that targets in particular women and Maori. This could help the organization to understand certain group especially the minority and provide them with alternative with the organization (Fazit. Ausblick, 2011).

Reflection and Recommendations

There are perceptions that older age work performance have thoroughly reduced. However, older or senior employees' are not fossils but a valuable source which includes experience, expertise and leadership potential which are needed to deliver in production. Therefore corporations should make policies which could incorporate seniors who still want to continue serving in the organization. This put the success of workforce delivery among the young and the senior at risk and therefore it's appropriate to have universal design where the young and the senior doesn't come into a rift at work place. It's also advisable that when you re-employee the senior, it would appropriate to assign him/her to a different branch from where he/she was stationed before.