639 | P a g e

GLOBAL HR POLICIES AND THE CHANGING ROLE

OF PRESENT HR

Vinay Ojha1, Nikita Chaudhary

2

1,2KIET School Of Management, Ghaziabad (India)

I. CAN AN ENGAGED WORKFORCE TAKE THE ORGANIZATION TO GREAT

HEIGHTS

Various researches have been conducted in the past and all of them have one thing in common, which is, if an

organization wants to sustain in the long run, it's essential to have an engaged workforce. Employee engagement

should begin at the grass root level and must be maintained throughout.

"Employee engagement is the most critical metric for organisations as it reflects and drives organizational

performance. Customer satisfaction, innovation, profitability, productivity and employee loyalty are the results

of having an engaged, committed workforce. In times of uncertainty, organisations typically focus more on

trimming operating expenses and not so much on managing their talent and engaging with their employees.

However, smart leadership realizes the need to identify long-term talent management strategies to remain viable,

without losing sight of the fact that engaged employees make all the difference between surviving and thriving,"

says Sriram Rajagopal, vice president- HR, Cognizant.

II. HR CHALLENGE: ADAPTING TO A RAPIDLY CHANGING WORKER PROFILE

Sweeping demographic changes across both the developed and developing world will place greater pressure

on both the government and private sector to initiate and implement creative solutions to educate, integrate

and retain a rapidly changing and diverse working population.

With hundreds of millions of women predicted to pour into the global workforce in the coming years,

and temporary and part-time workers a significant and seemingly permanent fixture, companies need to adapt

further to a new breed of employee. When you add the issues of a multi-generational workforce and growing

cultural diversity, it is no surprise that people management is cited to be by far the most substantial challenge

facing companies over the next five to ten years, according to a 2013 survey of 636 C-level and senior

executives by The Economist Intelligence Unit, sponsored by the SHRM Foundation.

In today's highly uncertain market environment, what distinguishes winning organisations is not much to do

with their assets but their human capital. "'Doing more with less' does not mean conjuring higher levels of

motivation out of thin air; it is about motivating employees to perform at their best by providing necessary

resources and support. Managers must combine engagement (the use of motivational tools), with enablement

(the act of providing employees with effective resources), in order to reach optimal levels of employee

satisfaction and productivity. They must provide adequate training, support, and discretion to grow, and not hold

employees back with excessive procedures, decision processes, lack of resources and overly narrow roles," says

Mark Royal and Tom Agnew, authors of Enemy of Engagement.

640 | P a g e

TABLE - 1

According to a survey by HR Anexi, more than 32 per cent of the employees leave in the first 9-12 months as

they feel a misfit in the organisation. Therefore, there is a need for employee engagement and its significance in

the organization. Employees feel engaged when the organization enables them to achieve high levels of

productivity. How then can employees contribute towards keeping themselves engaged? "The value of an

organization is its ability to harness the energies and talents of individuals and convert the collective effort into

an exponential performance and the organization as a best employer. At Standard Charted Bank, every

individual is accountable for his or her own engagement; anyone with teams is expected to coach team members

to higher levels of engagement and manage his or her own engagement," states Madhavi Lall, regional head -

HR, India & South Asia, Standard Chartered Bank.

So what is the route to building a cohesive workforce? "There are several basic building blocks that create an

environment for engagement – communication, career development, non-financial levers of engagement and

motivation, and performance management. Focusing on these basics can have a profound impact on positive

employee engagement and company performance," asserts Sunil Pathak, director – HR, Cadence Design

Systems (India).

641 | P a g e

III. DO YOU MONITOR YOUR EMPLOYEE?

A surge in media usage may not always work to your advantage. Many organisations, in a bid to keep

track of their employees, are resorting to the practice of ‘electronic monitoring'

A spurt in the usage of media and availability of technology is an irrefutable, widespread fact. Today, our every

move is technology-driven and media-centric, especially at the workplace where almost every action is

governed by technology and media. This may give us a sense of limitless power and allow us to pursue tasks in

a constraint-free manner. However, not all organisations today are that liberal with their provision of media

usage. ‗Electronic monitoring' in companies that may include observing an employee's use of the internet or e-

mail services (via video surveillance, tracking by global positioning system), ensuring proper use of telephone

equipment and voice mail, and audio surveillance of employees - is a trend that many employers are adopting,

so as to have a firm grip on their employees' knowledge, workplace flexibilities and more. Electronic monitoring

is not an infant matter of concern. Some employers today believe that the liberal provision of media usage will

lead to over-exploitation, thus causing a lack of interest in their job tasks due to the distraction of ‗networking'

that comes as an espousal to social media. So, electronic monitoring is not an absolute HR offense as long as the

employee is made aware of the nature of monitoring that will be conducted.

Being mutually inclusive at the workplace

India Inc. in recent times has gone a step further to tap and harness the potential of differently- able

candidates as part of their workforce. This number has increased over the last fiscal year (so to say) with

many successful organisations having embraced differently-able individuals in their companies today and

is setting examples in ‘workplace inclusion'

IV. THE RECRUITMENT STRATEGY

According to a survey, the scarcity of talent is an imminent concern for India Inc with 67 per cent of employers

struggling to fill jobs. Businesses need to adopt a long-term approach to ensure they have the right talent to

achieve their business objectives. While talent cannot be "manufactured" in the short-term, a robust recruitment

strategy can ensure a company's business strategy is supported by having talented people to execute it. Is the

competition to attract a skilled workforce forcing companies to revisit their recruitment strategies?

While not all employers are feeling the pain associated with the global talent shortage, external forces

mean it is likely that they will soon feel the pressure

With more than one lac fresh graduates from B-schools and many more experienced professionals around, why

is India Inc. still struggling to fill ‗mission critical' positions with the right talent? "Even though the B-school

campuses are churning out thousands of graduates each year, there seems to be a gap between the industry needs

and the quality of talent available – hence the struggle among corporate for quality talent. At Siemens, we

believe in bridging this gap and have thus collaborated with well-known institutes to roll out customized

programs for our employees. This not only helps our employees but also helps these institutes to further enhance

their method of teaching and executing methodologies," says Ramesh Shankar, head corporate HR, Siemens

Ltd. "We try to make our interactions on campus as innovative as possible. Our application process is tailored to

better understand students on a more personal level. You can opt to send in your applications to us as a short

642 | P a g e

video clip, a song, a poem or even a cartoon strip. We don't use traditional group discussions as part of our

selection process – creative simulated games work much better. Our senior leadership team also spends a lot of

time on campus interacting with students as a part of ‗Godrej In tune', our campus engagement program," adds

Sumit Mitra, executive VP-HR, Godrej industries Ltd.

V. HR CHALLENGE: UNDERSTANDING THE SUBTLETIES OF WORKERS’

QUALIFICATIONS

As the definition of work continues to evolve, the range of skills that employees need have not necessarily been

provided by traditional educational systems. In the 2013 EIU/SHRM Foundation survey, executives reported

that the current disconnect between the skills fostered by education and those they actually need will represent a

very considerable obstacle in the coming years.

This makes it difficult for HR to assess applicants‘ qualifications properly. To complicate matters further, there

is lack of standardization in education, especially in a global context. As businesses expand and hire

beyond borders, the need for HR to scrutinize job qualifications carefully becomes ever more important. Major

disparities exist between various regions and institutions in individual countries, as well as between countries.

The ability to understand these differences will enable HR to make more informed hiring decisions. Through

collaboration with other functions of the organization, HR can increase its understanding of qualifications and

skill sets to ensure that hired employees are capable of executing their functions.

TABLE 2

VI. THE HR FUNCTION OF THE FUTURE: NEW ROLES AND A CHANGING FOCUS

Given all the issues confronting today‘s HR function, HR practitioners are being called to assume roles beyond

the traditional HR administrative functions. Dave Ulrich1 has outlined five key roles HR has to play in order to

643 | P a g e

help organizations meet their strategic objectives:

Strategic business partner – HR must factor in policies on employee welfare and new or changing competency

requirements when corporate strategies are being developed. Through partnering with management,

HR may take on the role of consultant and assist in strengthening the relationship between employees and senior

management.

Change agent – HR professionals must lead in actively building and maintaining a corporate culture that

embraces people development.

Employee champion – HR must create a productive work environment, ensure effective communication, and

manage workforce relations.

Manager of personnel acquisition and development – HR must define, generate, continuously reinforce, and

sustain organizational skills, knowledge, abilities, attitudes, and desired behaviors.

Manager of processing, compliance, and reporting – HR must align its strategic and tactical plans with those of

the corporation, comply with laws, create policies, and execute administrative processes, all in a cost-effective

manner.

VII. ATTAINING THE HR FUNCTION OF THE FUTURE

HR management is no longer confined to the social sciences, and require skills and knowledge in other

disciplines such as marketing and communication, management of information systems, operations, economics,

and finance. Some organizations may even invest in training programs that can further the business acumen of

their existing HR practitioners. As such, HR practitioners will be more comfortable in the role of strategic

partner, equipped to be in boardrooms, and perceived as an increasingly important ally by senior management

and line managers.

The structure of HR departments in some organizations has already begun to evolve. Instead of being divided

according to specialized functions such as compensation and benefits, training, recruitment, and the like, some

HR departments have restructured themselves to service ―accounts‖ or business units, requiring HR generalists

who are knowledgeable in all functions of HR as ―account managers.‖ These HR generalists can then provide

relevant solutions or interventions to appropriately address the specific needs of their respective accounts, or the

various units in the organization.

VIII. HR CHALLENGE: ALIGNING TECHNOLOGY BEST PRACTICES TO GLOBAL

MANAGEMENT STRATEGY

In the last 20 years, new communication technology, such as email, mobile phones and web and

videoconferencing has not only facilitated closer contact with clients in distant lands, it has allowed

multinational companies to form cross-border teams, where colleagues can communicate with each other

constantly, despite not being located in the same place. In short, technology has enabled the international

expansion that companies seek.

644 | P a g e

Saving on business travel and relocation costs for individual workers have been other major benefits. Virtual

teams also significantly enlarge the pool of available knowledge. Individual team members can offer extensive

experience with different markets and an understanding of geographically disparate customer demands and

sensitivities. An overwhelming majority (83 percent) of executives in a 2014 Economist Intelligence Unit report

agreed that a diverse workforce improves their company‘s ability to capture and retain a diverse client base.82

Culturally diverse virtual teams also stimulate innovation and creativity. Groupthink—decision-making within

a group, characterized by uncritical conformity—is more likely within a team composed of people from the

same background.

TABLE 3

IX. HR MANAGERS TODAY ARE FOCUSING ATTENTION ON THE FOLLOWING-

a) Policies- HR policies based on trust, openness, equity and consensus.

645 | P a g e

b) Motivation- Create conditions in which people are willing to work with zeal, initiative and enthusiasm; make

people feel like winners.

c) Relations- Fair treatment of people and prompt redress of grievances would pave the way for healthy work-

place relations.

d) Change agent- Prepare workers to accept technological changes by clarifying doubts.

e) Quality Consciousness- Commitment to quality in all aspects of personnel administration will ensure success.

Due to the new trends in HR, in a nutshell the HR manager should treat people as resources, reward them

equitably, and integrate their aspirations with corporate goals through suitable HR policies.

X. NEW TRENDS IN HR

Human resource management is a process of bringing people and organizations together so that the goals of

each other are met. The role of HR manager is shifting from that of a protector and screener to the role of a

planner and change agent. Personnel directors are the new corporate heroes. The name of the game today in

business is personnel . Nowadays it is not possible to show a good financial or operating report unless your

personnel relations are in order.

Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing.

This calls for future skill mapping through proper HRM initiatives.

Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the

global alignment of Indian organizations. There is a need for multi skill development. Role of HRM is becoming

all the more important.

Some of the recent trends that are being observed are as follows:

The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric

organizations. Organizations now need to prepare themselves in order to address people centered issues

with commitment from the top management, with renewed thrust on HR issues, more particularly on

training.

Charles Handy also advocated future organizational models like Shamrock, Federal and Triple I. Such

organizational models also refocus on people centric issues and call for redefining the future role of HR

professionals.

To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma

practices. Six- sigma uses rigorous analytical tools with leadership from the top and develops a method for

sustainable improvement. These practices improve organizational values and helps in creating defect free

product or services at minimum cost.

646 | P a g e

Human resource outsourcing is a new accession that makes a traditional HR department redundant in an

organization. Exult, the international pioneer in HR BPO already roped in Bank of America, international

players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies.

With the increase of global job mobility, recruiting competent people is also increasingly becoming

difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to

work out a retention strategy for the existing skilled manpower.

XI. INTEGRATIVE APPROACHES OF HRM – THE NEW WAY OF LOOKING AT

THINGS

HRM should be integrated into the organization‘s mainstream with…..

Proper representation on all major decision-making bodies

Clear definition of corporate philosophy and objectives

Strategic linkage

Appropriate accountability

Roles of Integrative HRM

STRATEGIC ORIENTATION

CURRENT ROLE SUGGESTED ROLE

Independent role Strategic linkages with goals

Standardization of HR policies Flexibility

Management philosophy

CURRENT ROLE STRATEGIC ROLE

Emphasis of direction and control Seek to achieve consensus and commitment

Employee as a cost People as a resource

Hire and fire Attract and retain people

Maintain discipline Build positive work ethos and organization for

employee motivation

PERFORMANCE MANAGEMENT

CURRENT ROLE SUGGESTED ROLE

Emphasis on feelings and reliance on subjective

appraisal system with an eye on harmony

Develop database for objective measurement of facts

for analysis with an eye on the bottom line

647 | P a g e

Relationships

CURRENT ROLE SUGGESTED ROLE

Master and servant relationship reinforcing the

negative, apartheid feature of the social system in

workplace

Emphasize reciprocity and mutually in relations

Change in approaches

CURRENT ROLE SUGGESTED ROLE

Power Centre Service Centre

Fire fighting role Proactive approach

Employee orientation People and business orientation

Employee training People training and retaining

XII. NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and functions such as relocation,

orientation and translation services to help employees adapt to a new and different environment outside their

own country.

Selection of employees requires careful evaluation of the personal characteristics of the candidate and

his/her spouse.

Training and development extends beyond information and orientation training to include sensitivity

training and field experiences that will enable the manager to understand cultural differences better.

Managers need to be protected from career development risks, re-entry problems and culture shock.

To balance the pros and cons of home country and host country evaluations, performance evaluations

should combine the two sources of appraisal information.

Compensation systems should support the overall strategic intent of the organization but should be

customized for local conditions.

In many European countries - Germany for one, law establishes representation. Organizations typically

negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees

and managers to be unionized.

At the crossroads: Conflicting expectations of workers and the workplace

XIII. HR CHALLENGE: HIRING AND RETAINING TALENT WHILE LOWERING LABOR COSTS

Large labor-productivity gains over the past few decades have not been matched by comparable wage gains.

While both increased technology adoption and globalization contribute to this phenomenon, companies‘

648 | P a g e

increased focus on maximizing shareholders‘ value has also been a substantial factor. Furthermore, looser labor

laws and decreased union rates have decreased workers‘ bargaining power. While this trend has been in

existence for a while, pressure across corporations to curb labor costs has only become more acute with the

latest global financial crisis.

Retention of talent will prove challenging, as employees feel that stellar performances are not being

rewarded appropriately. While their employers continue to have higher work expectations, employees‘ efforts

are not necessarily translating into compensation they deem to be satisfactory. This is creating a challenge for

HR as turnover rates increase. Finding and hiring talent will not prove any easier, as firms continue to decrease

their labor investment. On a day-to-day basis, workers may not be as motivated and engaged. HR will have to

continue to explore retention strategies and benefits models that focus on factors beyond financial

compensation.

XIV. HR CHALLENGE: WINNING THE WAR FOR TALENT

People migration, both cross-border and within countries, adds another layer of complexity to the labor

market. Governments play a big role in determining and controlling that flow of labor. However, as

organizations continue to expand globally and face skills shortages locally, many require a more mobile

workforce. Therefore, organizations and governments alike will seek to understand and gather data on how

migration patterns are affecting the composition of the labor market, and how educational attainments and skill

sets are shifting.

Governments are often torn between the need to import the necessary skills for the economy, and

populist pressure to curb immigration. But that pressure normally focuses on unskilled immigrants, and the

associated strains on public services and the benefits system. Many companies are devoting more resources to

lobbying for a relaxation of curbs on the most skilled workers. A research group, Center for Responsive Politics,

reported that the total number of companies lobbying on immigration in the US Congress rose to 355 in 2012,

with technology companies the most active.90

Where more stringent migration laws exist, HR may have a limited talent pool from which to hire, often

making it challenging to hire the right people. In countries with looser policies, HR will have to define hiring

strategies and outreach programs to be able to tap into the larger workforce pool.

REFERENCES

[1]. Alderfer, C. (1987).

[2]. Research in Organization Behavior. JAI Press: Greenwich, CT. Cummings, T & Worley, C. (2005).

[3]. Journal of Applied Behavioral Science, 36, 376-379. Friedlander, F. (1998).

[4]. Gellerman, W., M. Frankel, and R. Ladenson. (1990).

[5]. Pettigrew, A., R. Woodman, and K. Cameron. (2001).

[6]. Studying organizational change and development: Challenges for future research. Academy of

Management Journal, 44, 697-713.

649 | P a g e

[7]. Porter, M. (1985). Competitive Advantage. New York: Free Press. Rifkin, J. (2004, August 17).

World‘s apart on the vision thing. Globe and Mail. Sahal, D. (1981). Patterns of Technological

Innovation.

[8]. Robbins, S.P., 2001, Organizational Behavior, 9th edn, Englewood Cliffs, NJ, Prentice Hall, pp. 510-

11.

[9]. Senior B, 2002, Organizational Change, 2nd edn, Ashford Colour Press, London.

[10]. Vroom, V. H. & Jago, A. G. 1988, The New Leadership: Managing Participation in Organizations,

Prentice-Hall, Englewood Cliffs.

[11]. Alderfer, C. (1969) An empirical test of a new theory of human needs. Organizational Behavior and

Human Performance, May, 142–175.

[12]. Argyris, C. (1962) Interpersonal Competence and Organizational Effectiveness. Homewood, IL:

Dorsey Press.

[13]. Argyris, C. (1964a) Integrating the Individual and the Organization.

[14]. Ashkenas, R., Ulrich, D., Jick, T. & Kerr, S. (1995)

[15]. Cartwright, D. & Zander, A. (eds) (1960) Group Dynamics: Research and Theory (2nd edn). Evanston,

IL:

[16]. Cummings, T.&Molloy, E. (1977) Improving Productivity and the Quality ofWork Life. New York:

Praeger. Institute, Kent State University.

[17]. Fried, Y. & Ferris, G. (1987) The validity of the job characteristics model: a review and meta-analysis.

[18]. Galbraith, J. (1977) Organization Design. Reading, MA: Addison-Wesley.

[19]. Galbraith, J. & Lawler, E.E. III (eds) (1993) Organizing for the Future: The New Logic for Managing

Complex Organizations.

[20]. Foreign Policy, ―Chinese and Indian entrepreneurs are eating America‘s lunch,‖ Dec 28, 2010.

[21]. Silicon India News, ―Infosys has trained 100,000 graduates at Mysore campus,‖ May 31 2012.

[22]. Gallup, ―Worldwide, 13 per cent of employees are engaged at work,‖ Oct 8 2013.

[23]. PwC, ―Millennials at work: Reshaping the workplace,‖ 2011.

[24]. The Economist, ―Socialist workers: Is China‘s labour market at a turning-point,‖ Jun 10 2010.

[25]. McKinsey, ―Winning the $30 trillion decathlon: going for gold in emerging markets,‖ McKinsey

Quarterly, 2012.

[26]. M. Page, ―Double-digit salary increases and high employee turnover forecast across China in 2014,‖

Dec 12 2013.

[27]. The Economist Intelligence Unit, ―Reengaging with engagement,‖ ViewsWire, 2010.

[28]. The Economist Intelligence Unit, ―Values-based diversity: what it means and why it matters,‖ 2014

[29]. The Economist Intelligence Unit, ―Managing virtual teams: taking a more strategic approach,‖ 2009

650 | P a g e

[30]. The Economist Intelligence Unit, ―Competing across borders,‖ Apr 2012

[31]. The Economist, ―The DaimlerChrysler emulsion‖, Jul 27 2000.

[32]. The Economist Intelligence Unit, ―Up or out: next moves for the modern expatriate,‖ 2010. The

Huffington Post, ―It‘s time for paid family and medical leave to empower working women and

modernize the workplace,‖ Feb 5 2014.

[33]. The New York Times, ―China passes a sweeping labor law,‖ Jun 30 2007.

[34]. P. Cappelli and J. Keller, ―Classifying work in the new economy,‖ Academy of Management, 2013

[35]. Open Secrets blog, ―Special interests battle over immigration reform,‖ Mar 4 2013