Future Trends in HRM
How is the environment changing?Society Technology Government Employers Employees Economy
How is the environment changing?SocietyFromToTolerantAssertiveModest expectationRising expectationCollectiveIndividualisticLong term orientedShort term orientedLess educatedBetter educatedAware of dutiesAware of rights too
How is the environment changing?TechnologyFrom ToLabour intensive LabourlessLow cost High costMulti technology Specialized technologyMedium technology Complex technologyPiece-meal technology Convergent technology
How is the environment changing?GovernmentFromToPolicy of concentrated growthBalanced growthSubsidy orientedInnovative business incentivesEntrepreneurFacilitator for entrepreneursEmployee friendlyEmployer friendlyCentralized powerDecentralized power
How is the environment changing?EmployersFromToDomestic BusinessGlobal businessProfit orientedEfficiency orientedTraditional Management Professional ManagementLess technicalMore technicalLess Mgt QualificationMore Mgt QualificationEmployer by inheritanceFirst gen employers
How is the environment changing?EmployeesFromToWorkersKnowledge workersBlue collarWhite collarSpecialized skillsMulti skillsSubmissiveAssertive
How is the environment changing?EconomyFromToClosed economyOpen economySellers marketBuyers marketDomestic businessInternational businessStableUnstableHigher priceLower price
HRM in 21st centuryDemographic changes1.Pressure from religious and racial minorities2. Women reservation and empowerment3. Reservation to economically backwards from upper castes4.Reservation is likely to be extended to private sectors tooReasonsShrinking no. of PSUs and Govt jobsCore sectors are going into private ownershipConcept of pvt mgt and public moneyIncreasing role of pvt companies in social development
HRM in 21st centuryDemographic changes5.Increasing educational qualifications of people at entry level6.Awareness of the common public7. Ratio of white collars and blue collars getting reducedReasonsIncreasing technical skills and automationIncreasing salary for workersRedundancy of blue collar workers
HRM in 21st century Demographic changes8.No. of women employees risingLast decade Female employee growth around 50% Male employee growth less than 20%ReasonsConcept of dual careerNew jobs are becoming more suitable to womenEqual opportunities and security for women in the workplaceRising expectations of self and childrenInflationThreat of divorce/actual divorceGrowth of service industry9.Increasing feeling of sons of the soil
HRM in 21st centuryChanging technology and automationNeed for new skills to meet the new technology Strategy-Have feeder education/training institutions run by company-University-industry interaction-Constant training to employees+ve- Improves business efficiency-ve- Pressure on individuals to be up-to-date
HRM in 21st centuryChanging technology and automationSkills going redundant (e.g. typists)Strategy-Retraining-VRS/Retrenchment-OutplacementProblems envisaged- After heavy investment on technology and automation money for retraining, VRS, etc may be scarce- Creates personal, Psychological, financial and social problems
HRM in 21st centuryChanging technology and automationBetter working conditions to workers, e.g. AC, computers, better lighting and resultantly better Q.W.L Skills are upgraded, so employees are becoming suitable for better jobs in the company and elsewhereMakes the job challengingReduces the human interaction, so human elements will get lesser importanceBreakdown of entire system/operationsMany tragedies like Bhopal and Chernobyl are possible, which may bring the surrounding public under Workmen Compensation Act 1923
HRM in 21st centuryLiberalization, Privatisation and GlobalizationEmergence of international HRMResults-International benchmarking and universalisation of HR practicesInternational character of Trade UnionsHigh salary, global selection and training, international standard of working conditions and slim work-force are the hallmarks of MNCs &JVsInfluence of ILO and WTO in labour stds, e.g. their role in elimination of child labourQuality consciousness in international business a) Mgt seeks voluntary cooperation of employees b) Concentration on competition rather than confrontation with workers and trade unions
HRM in 21st centuryLiberalization, Privatisation and GlobalizationInequality in wage and salary the gap is too high, it may lead to inequality in growth of societyMore VRS/retrenchment Unemployment, insecurity/security to existing employeesGrowth of services industryTrends will attract women employees, HR dept will be professionalized-ves: Encourages casual/temp/PT/child labour, leads to higher employee turnover
HRM in 21st centuryLiberalization, Privatisation and GlobalizationT&D will be the central focus in LPGEquilibrium in demand and supply of manpower is possible even at international levelMultiple criteria will be followed in selection rather than just one criterionLeads to flat structureResults: More responsibilities to individual managers-No promotional opportunities within, so frequent job changes-Emphasis on self-mgmt-Quick decisions and responses
HRM in 21st centuryLiberalization, Privatisation and GlobalizationChanging employersEmployers will be leaders rather than managers. They will practise theory YParticipative approach rather than proprietary approachCare for employees personal life tooScrupulously fair in reward or punishmentShare with the employees the companys fortunes/profitsOrganization will be more adaptable to individuals than vice-versaThe job of creativity and innovation will be left to the workers
HRM in 21st centuryLiberalization, Privatisation and GlobalizationChanging Government PolicyStill more importance for HRD and related areas, e.g. separate ministries for HRD, Labour, Personnel and grievancesHRD will spread to Co-ops, NGOs, Agriculture & local bodiesNow HRD concept is being infused in Govt depts/ offices, e.g. in Universities, Boards, Semi-govt organizations,etc.Govt. may allow hire and fire policy but it can be regulated by independent bodies like Central Vigilance Commission, Courts, Tribunals, etc.
HRM in 21st centuryLiberalization, Privatisation and GlobalizationChanging Government PolicyDrastic changes in labour laws possible, especially in the case of child labour, women workers, minorities and environmentGovt. will encourage setting up of industries in rural and backward areasResults: Non-availability of workers & executives to work in such areasLack of urban facilitiesMismatch between urban executives and rural workersMore expenses to train rural workers
HRM in 21st centuryLiberalization, Privatisation and GlobalizationChanging Government PolicyLaws on merger/takeover may still be relaxedResults: Frequent change of ownership, so uncertainty, anxiety and insecurity to employees- Cultural shock to managers and workers- Loss of employmentRole of local bodies- Influence in selection and IR- Earnest efforts for Industrial development in the area* * *
Implications for HR ManagersShould provide unstinting support to the CEO & the employeesShould act as a facilitator, change agent and counselor. Must be well trained, imaginative, innovative, up-to-date and an alert professionalMust actively adopt the systems approach to have a broad view of thingsFuture HR functions will be more complex than what exists todayHe must make use of advanced knowledge and skills of behavioural science* * * * * * * * * * * * * * * * * * * * *
Theory X In this theory, management assumes employees are inherently lazy and will avoid work if they can. They inherently dislike work. Because of this, workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame.
Theory YIn this theory management assumes employees may be ambitious, self-motivated, anxious to accept greater responsibility, and exercise self-control, self-direction, autonomy and empowerment. It is believed that employees enjoy their mental and physical work duties. It is also believed that if given the chance employees have the desire to be creative and forward thinking in the workplace. There is a chance for greater productivity by giving employees the freedom to perform at the best of their abilities without being bogged down by rules.
Theory ZTheory Z is the name applied to the so-called "Japanese Management" style popularized during the Asian economic boom of the 1980s. In contrast to Theory X, which stated that workers inherently dislike and avoid work and must be driven to it, and to Theory Y, which stated that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Dr. William Ouchi, its leading proponent, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.
Theory Z cont.dIron