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The challenge for HR managers is to keep up to date with the latest HR innovations -technological, legal, and otherwise. How HR managers can anticipate and address some of the most challenging HR issues.
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04/11/23
New Trends in HRMNew Trends in HRM
Saroj Kumar Behera
ITER B-school
04/11/23
IntroductionIntroduction
Historically, the HR Department was viewed as administrative overhead.
HR processed payroll, handled benefits administration, kept personnel files and other records, managed the hiring process, and provided other administrative support to the organization
The role of Human Resources is changing as fast as technology and the global marketplace
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IntroductionIntroduction
The positive result of these changes is that HR professionals have the opportunity to play a more strategic role in the business.
The challenge for HR managers is to keep up to date with the latest HR innovations -technological, legal, and otherwise.
How HR managers can anticipate and address some of the most challenging HR issues.
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External and internal factors influencing the Personnel function
External factors Internal factors
Technological factors Mission
Economic challenges Policies
Political factors Organisational culture
Social factors Organisation
structure
Local and Governmental issues HR systems
Unions
Employers’ demands
Workforce diversity
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Human ResourceHuman ResourceManagementManagement
Attract and Attract and orient new orient new employeesemployees
EffectiveEffectivecompensationcompensation
systemssystems
EffectiveEffectiveworkwork
environmentenvironment
Compliance & Compliance & proceduresprocedures
EffectiveEffectiverelationshipsrelationships
HRM ActivitiesHRM Activities
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Technological Changes And Technological Changes And HRM HRM
Technology includes tools, machinery, equipment, work procedures and employee knowledge and skills. The impact of technology on HR can be profound, as the following things clearly reveal:
New skills, knowledge, experience and expertise required to gain the edge over rivals.
Downsize operations, cut organisational layers and cut the extra fat to survive in a competitive world
Collaborate and achieve teamwork
Relocate work from the office to the home
Internet and intranet revolution
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How to deal with a human resource surplus How to deal with a human resource surplus situation?situation?
Why?
Automation
Restructuring
Mergers
Acquisitions
CompetitivePressures
Consequences?
Cuts payroll expenses
Eliminates extra layers
Improves functioning if firm’s product and
service profile is good
Shocks those left out
Shattering impact on
employee motivation
and morale if not managed
properly
Managing Survivors of downsizing
Bitterness, anger, disbelief and shock need to be handled properly
Give information as to why the action had to be taken
Tell how it is going to help the firm and employees in the long run.
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Economic, Political And Social Challenges And HR
•Now-a-days, people, goods, capital and information are moving around the globe as never before.
•Global competition is making every firm to think in terms of gaining an edge over rivals by producing high quality goods at a very competitive price.
•This is where the ‘people’ dimension comes into being. Incentives, favourable work climate, team spirit, freedom to think and act independently, and a host of other HR initiatives are needed to keep talent from flying away.
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What HR managers can do What HR managers can do ??
Use workforce skills and abilities in order to exploit environmental opportunities and neutralise threats.
Employ innovative reward plans that recognise employee contributions and grant enhancements.
Indulge in continuous quality improvement through TQM and HR contributions (training, development, counselling, coaching etc.).
Utilise people with distinctive capabilities to create unsurpassed competence in an area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia in
biscuits, Nestle in coffee, McDonald’s in fast foods, etc.).
Decentralise operations and rely on self managed teams to deliver goods in difficult times (Motorola is famous for short product development cycles. It has quickly commercialised ideas from its research labs).
Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox, AT&T, Steel and Textile firms in India etc.) to unions, workers and other affected groups. HR generally plays a key role, these days, in planning and implementing corporate downsizings, and then in maintaining the morale of the remaining employees.
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Political factors
Political stability Formation of new political parties Influence of politicians over Productivity linked wage agreements Political parties sympathetic to trade unionism Opposition to VRS schemes, downsizing operations, restructuring exercises. Freedom to show the door to unwanted people
Social factors Conducting business in a socially relevant and responsible way. Hire qualified people or hire inexperienced local people and train them
to avoid trouble? Helping economically poor people, unemployed, underprivileged ones,
etc.
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Local and government-related Local and government-related factors factors
Meet legislative requirements
Offering jobs to certain sections of local community
Trade unions Demands for higher wages, better working conditions, incentives,
benefits, services
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MANAGING WORKFORCE MANAGING WORKFORCE DIVERSITYDIVERSITY
The workforce is becoming increasingly diverse now and organisations are doing their best to address employee concerns and to maximise benefits of different kind to employees with diverse educational, cultural and religious backgrounds. The diversity issues, mainly, include the following: Composition In terms of age, caste, education, culture, region, religion
Minority groups, Economically backward groups
Displaced persons
Child labour
Contract labour
Women employees
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INTERNAL ENVIRONMENT AND HR
Organisations are also influenced by a variety of internal factors
relating to strategy, culture, structure etc.
Mission and Strategy
Internal Policies
Organisational Culture
Organisation structure
Human resource systems
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Designing appropriate HR systems
Issue Focus on
Nature of employment : Job/Career
Recruitment : Internal/external/both
Selection : Merit/other considerations
Training and employee : 6 months/yearlydevelopment actions Regular/irregular/need based
Degree of participation : Top down/bottom up
Incentives : Individual merit/group output
Job security : Lifelong employment/need-based jobs
Employee welfare : Be a model employer (offer those that are needed by law.)
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An Aging WorkforceAn Aging Workforce
The ministry of labour tracks changes in the composition of the Indian labor force and forecasts employment needs.
Projections for 1996-2006, indicate the Indian labor force will have a phenomenal growth.
Some of the expected change involves the distribution of workers by age.
– Youth labor force, workers between the ages of 16-24, is expected to grow faster than the overall labor force.
– The fastest growing segment will be workers aged 45-64.– By 2015, workers aged 40 and above will exceed the number under
40 for the first time ever.Organizations will struggle with ways to control costs and will
have to find new ways to attract, retain, and prepare the youth labor force.
Values tend to change from one generation to another as well as during different life stages.
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Skill Deficiencies of the Skill Deficiencies of the WorkforceWorkforceThe increasing use of computers to do routine tasks has
shifted the kinds of skills needed for employees in the indian economy.
Employees must be able to handle a variety of responsibilities, interact with customers, and think creatively.
Most organizations are looking for educational achievements and a college degree is a basic requirement for many jobs today.
The gap between skills needed and skills available has:– Decreased ability to compete because they sometimes
lack the skills to upgrade technology, reorganize work, and empower employees.
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High-Performance Work High-Performance Work SystemsSystemsHigh-performance work systems are
organizations that have the best possible fit between their social system and technical system.
Some of the trends in today’s high-performance work systems are:– Reliance on knowledge workers– Empowerment of employees to make decisions– Utilization of teamwork
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Knowledge WorkersKnowledge Workers
Knowledge workers are employees whose main contribution to the organization is specialized knowledge.
The reliance on knowledge workers affects organizations’ decisions about the kinds of people they are recruiting and selecting.
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Employee EmpowermentEmployee Empowerment
Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.
HRM practices such as performance management, training, work design, and compensation are important for ensuring the success of employee empowerment.
For empowerment to succeed, managers must be trained to link employees to resources within and outside the organization.
The use of employee empowerment shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills.
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TeamworkTeamwork
Teamwork is the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service.
Work teams often assume many activities traditionally reserved for managers.
Virtual teams rely on communication technology to keep in touch and coordinate activities.
Teamwork motivates employees by making work more interesting and significant.
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Focus on StrategyFocus on Strategy
At a growing number of organizations, HR professionals are strategic partners with other managers.
The specific ways in which HR professionals support the organization’s strategy vary according to their level of involvement and the nature of the strategy.
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Business Strategy: Issues Business Strategy: Issues Affecting HRMAffecting HRM
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Focus on StrategyFocus on Strategy
High Quality Standards:– To remain competitive in
today’s economy, organizations need to provide high-quality products and services.
– Total quality management (TQM) refers to a company-wide effort to continuously improve the ways people, machines, and systems accomplish work.
• TQM has several core values.
Mergers and Acquisitions:– Mergers: Two companies
becoming one.– Acquisitions: One
company buying another.– HR professionals have to
sort out the differences in the two companies’ practices with regards to compensation, performance appraisal, and other HR systems.
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Focus on StrategyFocus on StrategyDownsizing:
– Downsizing presents a number of challenges and opportunities for HRM.
All employees should be informed:
– Why the downsizing is necessary– What costs are to be cut– How long the downsizing will last– What strategies the organization
intends to pursueHRM can provide downsized
employees with outplacement services to help them find new jobs.
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Focus on StrategyFocus on Strategy
Expanding into Global Markets:
In order to meet challenges, companies must
– Develop global markets– Keep up with competition
from overseas– Hire from an international
labor pool – Prepare employees for
global assignments.Employees who take
assignments in other countries are called expatriates.
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Focus on StrategyFocus on Strategy
Reengineering:Reengineering is a complete
review of the organization’s critical work processes to make them more efficient and able to deliver higher quality.
Reengineering affects HRM in two ways:
– The way the HR department accomplishes goals may change
– The HR department must help design and implement change
Outsourcing:Outsourcing refers to the
practice of having another company provide services.
HR departments help with a transition to outsourcing and many HR functions are being outsourced such as:
– Payroll administration– Training– Recruitment– Selection
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Traditional HR vs. Strategic HRTraditional HR vs. Strategic HR
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investmentsAccountabilityResponsibility for HR
Traditional HR
Employee Relations
Transactional change follower and respondent
Slow, reactive, fragmented
Short-term
Bureaucratic-roles, policies, procedures
Tight division of labour; independence, specialisation
Capital, products
Cost centre
Staff specialists
Strategic HR
Partnerships with internal and external customers Transformational change leader and initiatorFast, proactive and integratedShort, medium and long (as required)Organic-flexible, whatever is necessary to succeedBroad, flexible, cross-training teams
People, knowledgeInvestment centreLine managers
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Technological Change in HRMTechnological Change in HRM
Advances in computer-related technology have had a major impact on the use of information for managing HR.
A human resource information system (HRIS) is a computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to human resources.
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A Changing EconomyA Changing Economy
The way business is conducted has changed rapidly during the past few years and will continue to do so.
Many companies are connecting to the Internet to gain an advantage over or keep up with competitors.
Electronic business (e-business) is any process that a business conducts electronically, especially business involving use of the Internet.
E-business involves several forms of buying and selling goods and services:– Business-to-consumer– Business-to-business– Consumer-to-consumer
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Changes in the Employment Changes in the Employment RelationshipRelationshipA psychological contract is a description of what an
employee expects to contribute and what the employer will provide the employee in exchange for the contributions.
From the organization’s perspective, the key to survival in a fast-changing environment is flexibility.
Flexibility in HRM includes:– Flexible staffing levels– Flexible work schedules
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Changes in the Employment Changes in the Employment RelationshipRelationshipAlternative work arrangements are methods of staffing other than
the traditional hiring of full-time staff.– Independent contractors– On-call workers– Temporary workers– Contract company workers
From employees’ perspective, alternative work arrangements provide some flexibility for balancing work and non-work activities.
The globalization of the world economy and the development of e-commerce have made the notion of a 40-hour workweek obsolete.
Offering flexible work schedules provide organizations with many benefits.
