ABSTRACT
The ways in which enterprises are managed to achieve organizational goals and HRM and IR initiatives in this regard, are affected by the globalization process which brings many rapid changes in the competitive environment, particularly that represented by the advancement in the new information and communications environment (ICTs). Changes in IR practices (rather than in institutions and systems) such as increased collective bargaining at the enterprise level, flexibility in relation to forms of employment as well as in relation to working time and job functions have occurred as a result of such factors as heightened competition, rapid changes in products and processes and the increasing importance of skills, quality and productivity (Silva, 2002). These factors have also had an impact on HRM policies and practices. In managing change, the key elements include employee involvement in effecting change, greater customer orientation, and ensuring that the skills of employees are appropriate to the production of goods and the provision of services acceptable to the global market. As such, managing people in a way so as to motivate them to be productive is one important objective of HRM.
