Organizations face many challenges today. There are a number of actions that organizations can take to address the uncertainty and turbulence in the external environment. These actions include developing employee skills, effectively using new technology, developing new organizational structures, and building cultures that foster learning and innovation. As companies increasingly compete in a global economy, many are introducing new technologies that require better-educated and trained workers. Successful companies also institute quality improvement processes and change efforts.

For companies to compete successfully in a global economy, they must hire educated workers; however, at least in the United States, between 25 and 40 percent of hourly employees have some basic skills deficiency. This skills gap poses serious consequences for American companies. How can trainees learn how to operate new equipment if they cannot read operating manuals or understand basic math? The workforce has become increasingly more diverse, and this trend toward diversity will continue. Diversity issues have important implications for organizations and HRD professionals.

Organizations need to address racial, ethnic, gender, age and other prejudices that may persist, as well as cultural insensitivity and language differences. Diversity can be a catalyst for improved organizational performance. Ethical issues and dilemmas also arise for human resource development