Assignment

ON Importance of Human Resource Management in 21st

Century

SUBMITTED TO

MR. SALMAN SALEM SHINWARY

Assistant Professor, SoB, AUST

Course Instructor

Fundamentals of HRM (MBA- 641)

School of Business, Aust

SUBMITTED BY

Name Program ID

Khondoker Amin Uzzaman MBA 15-02-51-002

MD. SUMON KHAN MBA 13-02-51-021

MD. Ali Hossain MBA 13-02-51-010

Date of Submission: 11 February 2016

School of Business, Aust

AHSANULLAH UNIVERSITY O F S C I E N C E & T E C H N O L O G Y

Acknowledgement

In performing our assignment, it's a successful one we had to take the help and guideline of some respected persons. First of all we are grateful to Allah who gives us sound mind & sound health to accomplish our assignment. The completion of the report gives us much Pleasure. But it is not our credit in this endeavor. We would like to thank

our gratitude MR. SALMAN SALEM SHINWARY, Course Instructor,

Fundamentals of HRM, School of Business, Aust, Bangladesh for giving us a

good guideline for assignment.

We would like to thank School of Business Studies, Ahsanullah University of Science & Technology for updated education system in Bangladesh. Lastly we would like to deliver our whole hearted thanks to all the MBA students, Aust, for their cordial cooperation. Actually it was not possible for us to complete a severe task without such help. So we pray the long life and good health for all the persons who have helped and co-operated us in our assignment.

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Table of Contents

Serial Subjects Pages

01 Abstract 02

02 Introduction 03

03 Literature Review 03

04 History of Human Resources Management 04

05 Meaning Human Resource 05

06 Meaning Human Resource Management 06

07 Definition of Human Resource Management 07

08 The Changing Role of Human Resources in 21st

century 07

09 Challenges of 21st Century HRM 13

10 How these above mentioned challenges affect the

human resources 14

11 Human Resource Management: Major Influencing

Factors in 21st century 15

12 The goals of HRM 15

13 An HR system refers to how different HR practices

are used in combinations to address three primary

issue

18

14 Implementing HR Policy 19

15 An Emerging Human Resource Management

Practice in 21st century 20

16 Recommendations 24

17 Conclusions 25

18 Reference List 26

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Importance of Human Resource Management in 21st Century

1. Abstract:

This paper report on Importance of human resource management in 21st century:

challenges for future. The managers today face a whole new array of changes like

globalization, technological advances and changes in political and legal environment.

Change in information technology. The great challenge of HRM is to attract, retain and

talented employees.HRM is the function within an organization that focuses on

recruitment of management of and providing direction for the people who work in the

organization.

Technology has changed everything with great extent, the methods of production, the

process of recruitment, the training techniques, and new equipment etc. Now it’s up to

HR personnel’s to work with their functions as shown below to best manage the

workforce. With the 21st century in motion human resource management will face some

of the old struggles and HR will be forced to face many new challenges. The main objective

of HR is to recruit, retain, train, retrain and keep workers satisfied. Indeed, these

responsibilities can be challenging in the 21st century, especially with changing roles, a

multi-generational workforce, and globalization.

Parallel with the change in the global arena, the qualification of the workforce has been

changed. The changes of the workforce required a shift from traditional personal

management to human resource management. With the evolution of HRM, this field has

gain a more strategic perspective in both academic literature and practice. Human

resources have started to be seen as an inimitable and most valuable factor for

organizations to gain competitive advantage. With this perspective, HRM department has

gain more importance and become strategic players in the organization. Today, the new

HRM requires being strategic partner in the organization by aligning all the HR functions

with the mission, vision and strategies of the organization.

In these pieces of paper we have discussed those foremost challenges which are

confronting today Organization. To overcome these challenges the HR mangers will have

to build a standard structure that allows managing all different workforce alternatives.

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This way the organization maintains their competitive advantages. Recommendation and

conclusions are given at the last of this paper.

Keywords:- importance of HRM 21st Century, HR manager, HR challenges, globalization,

issues, strategies, competitive advantage.

2. Introduction:

Human beings are the most important resource of an

organization. These are the people who plan all the

activities and then they carry on all the activities. And

managing human beings is the toughest duty of the manager as no two persons are alike.

Every individual has separate values, aspirations, motivations, assumptions, goals, etc.

And now after the globalization and technological developments, they managers have to

keep up with the latest changes. The HR managers should be given proper authority and

he should have the capability to deal with the ever changing business environment. The

HR manager has to decide about a staffing agency or personally hire qualified applicants

to fill in the company requirements. They have measure the employee’s performance

against the set standards and they have to decide on the employee benefits and

compensation package.

3. Literature Review

The priorities for human resource in future what should be? The answer to this question

is very difficult but there are many factors contributing to HR managers functions and

these activities are constantly changing. By keeping in view these entire situations the

organization HR department is continuously being change also. (Marshal and paalvast,

2008)

Some of the researchers also point out that the most of the challenges which facing by

the HR in 21ST century are also, retention of the employees, multicultural work force,

women work force, retrenchment of the employees, change in the demand of the

government, technology , globalization, and initiating the process of change.

The world federation of personnel management association (WFPMA, 2009). Survey

pointed out the most important top ten HR challenges are leadership development,

organizational effectiveness, change management, compensation. Health and safety,

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staff retention. Learning and development, succession planning. Staffing: recruitment and

skill labor.

Liz Weber (2009) has pointed out that the most important challenges of the HR in business

are layoffs. The most of the owners and managers facing this hard issue. This laid off may

be due to several reasons which include the economic uncertainty, the employee’s job

instability and HR less Effectiveness.

In the view point of Decenzo and Robins (2001) and Gary Dessler (2000) the most

important challenges of HRM, are technology, E commerce, and work force diversity, and

globalization, ethical consideration of the organization which may directly or indirectly

affect the organization competitive advantages, especially with technological

advancement the affect on recruitment, training and development and job performance

with great extent can be study in organization. We can sum up these from the following

points as the foremost challenge faced by HRM is the globalization. Globalization means

the present flow of goods, services, capital, ideas, information and people. It means the

movement of these things without using any human resource. In this modern business

world, markets have become battlegrounds where both the domestic and foreign

competitors try to capture as maximum market shares as possible. Such globalization is a

challenge for HRM. However without human resource they have no value, because a

workforce is knowledgeable and skilled, who facilitates a company in going competitive

advantage over other and enable a company to compete the foreign market and to make

investment in not only in domestic market but also in foreign markets. Therefore all the

HR Managers make several strategies to develop and retain such human resource,

because Human Resource is the resource which makes an organization successful in the

field of globalization.

4. History of Human Resources Management

The history of Human Resources Management did not begin at the moment when Dave

Ulrich published his first book about Human Resources. He discovered the importance of

Human Resources Management for successful organizations but the people management

was crucial even in ancient China. The HR history is about the evolution of first communes

and growth of first ancient societies.

The army was the first driver of innovations. A nation without a strong army was

overtaken by neighbors, and it just made an importance of a strong army visible to each

citizen. A successful command requires strong, brave and smart leaders who engage and

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share a vision of the victory. It designed and developed first procedures for the

outstanding selection of new hires and leaders. It had resources to invest in innovations.

The first successful HR practices in the history can be found in ancient armies. They

required a good work organization of jobs and tasks, even they used the workforce with

no education and knowledge (more on Key Milestones in HR History).

Figure 1: HRM History

The modern history of Human Resources as we know it starts with the British Industrial

Revolution. The foundation of large factories increased a demand for the workforce

significantly. It was in the 18th century, and it is the moment when the evolution of new

people management practices begins. It is the important landmark in the history of

Human Resources. The rapid development of new industrial approaches and new

inventions to work changed the world dramatically. The quick and cheap production

became a priority for many industries.

5. Meaning Human Resource

Human Resources are the set of individuals who make up the workforce of an

organization, business sector or an economy. "Human Capital" is sometimes used

synonymously with human resources, although human capital typically refers to a more

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narrow view i.e., the knowledge the individuals embody and can contribute to an

organization. Likewise, other terms sometimes used include "manpower", "talent",

"labor" or simply "people". William R. Tracey, in The Human Resources Glossary defines

Human Resources as "The people that staff and operate an organization as contrasted

with the financial and material resources of an organization. The organizational function

that deals with the people ..."

6. Meaning Human Resource Management

Human Resource Management (HRM) is the function within an organization that focuses

on recruitment of, management of, and providing direction for the people who work in

the organization. Line managers can also perform HRM. HRM is organizational function

that deals with issues related to people such as compensation, hiring, organization

development, safety, wellness, performance management, benefits, employee

motivation, communication, administration, and training.

HRM is a multidisciplinary organizational function that draws theories and ideas from

various fields such as management, psychology, sociology and economics an effective

HRM uses the employees in such a way that their productivity is maximized. The HR

managers are required to find out right people for the right job and get the job done from

them. Other than this the human resource management is also responsible for the

motivation, development and training of the employees and retaining efficient

employees for a longer period of time. HR management has to make sure that both the

personnel and the company are complying with regulations. The human resources can be

managed by using either hard or soft approach. The hard approach involves developing

strategies for managing and controlling human beings. Under the soft approach the

manager focuses on improvement of communication between employer and employee,

motivating the personnel, and developing their leadership skills. It is important on the

part of the HR manager to ensure that their human capital is well-trained and developed.

Human capital refers to the intellectual abilities, understanding, motivation,

commitment, and relationship of the employee to the goals which are set by the company

for them. The management of employees varies from organization to organization and it

depends upon the ability and capability of the HR manager. The management has to be

well versed with the latest technological changes along with environmental changes if it

wants to achieve the competitive advantages of business in 21st century.

HRM is also a strategic and comprehensive approach to managing people and the

workplace culture and environment. Effective HRM enables employees to contribute

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effectively and productively to the overall company direction and the accomplishment of

the organization's goals and objectives. HRM is moving away from traditional personnel,

administration and transactional roles, which are increasingly outsourced. HRM is now

expected to add value to the strategic utilization of employees and that employee

programs impact the business in measurable ways. The new role of HRM involves

strategic direction and HRM metrics and measurements to demonstrate value.

7. DEFINITION OF HUMAN RESOURCE MANAGEMENT 1. According to Dessler, “Human Resource management is defined as process of

acquiring, training, appraising, and compensating employees, and attending to

their labor relations, health, safety and fairness concerns”.

2. According to Dale Yoder, “Human Resource management is that phase of

management, which deals with effective control and use of manpower

asdistingwish from the other course of power.

3. According to Milkovich and Boudreau, “Human Resource Management is defined

as a series of integrated decisions that form the employment relationship; their

quality contributing to ability of the organization and the employees to achieve

their objectives.”

8. The Changing Role of Human Resources in 21st century

There are an incredible number of pressures on today's organizations. To name a few:

environmental pressures such as increasing globalization, rapid technological change, and

tougher competition; organizational changes such as new organizational alliances, new

structures and hierarchies, new ways of assigning work, and a very high rate of change;

changes in the workforce, including employees' priorities, capabilities, and demographic

characteristics. Within these pressured organizations, there is a need for (and opportunity

for) the human resource function to play a critical role in helping organizations navigate

through these transitions. In order to play this role, however, HR will have to increase its

real and perceived value.

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The role of human resources has been evolving for some time. The shift from "personnel"

to "human resources," for example, was part of the movement to acknowledge the value

of employees as an organizational resource, and was an attempt to remove some of the

stigma that was coming to be associated with slow, bureaucratic personnel departments.

This shift in label was accompanied by a call for HR to become a strategic partner with the

leaders of the business-to contribute to significant business decisions, advice on critical

transitions, and develop the value of the employees-in short, to have a seat at the table.

Dave Ulrich provides a clear path to the next generation of HR with Human Resource

Champions: The Next agenda for Adding Value and Delivering Results (1997). He describes

a multi-faceted approach to delivering HR services that meets the needs of both

employees and employers, and positions HR as a significant contributor to organizational

success.

Ulrich presents his approach in terms of deliverables, or outcomes, for which HR should

be responsible: strategy execution, administrative efficiency, employee contribution, and

capacity for change. In the course of delivering in these four areas, he describes four

corresponding roles for HR to play within a business: a) as a strategic partner working to

align HR and business strategy, b) as an administrative expert working to improve

organizational processes and deliver basic HR services, c) as an employee champion,

listening and responding to employees' needs, and d) as a change agent managing change

processes to increase the effectiveness of the organization. One of unique things about

Ulrich's approach is that it is includes all of the ways that HR can deliver value to an

organization, rather than shifting focus from one area to another.

Similarly, Johnson (1997) describes his experiences in executive search in which CEOs

describe the HR leaders they want to hire. They want people who will be successful

business partners, strategic thinkers, and people who will understand the pressures of

running an effective business in today's market. He reports that, when hiring a leader for

the HR function, most CEOs ask for someone who is, "not a typical HR person," and that

most of the successful candidates describe themselves that way. This trend reflects the

common perception that HR "business-as-usual" is not prepared to meet the challenges

that today's businesses present.

Making the shift to a new HR role will raise unique issues for every HR group that attempts

it, but there are some common steps and activities that will increase the likelihood of

success. Some of these steps and activities are:

Strong HR leadership. As with any major change effort, a strong leader can develop

a clear vision, motivate others to share that vision, and help them work toward

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achieving it. In order to change the role of HR in an organization, the HR leader will

need to work both within the HR group and with the organizational leaders to

reshape everyone's expectations of what HR can and will deliver. The success of

the change will depend upon HR's ability to meet the real needs of the organization

and the credibility it develops.

Acute future orientation. One of the ways that HR can provide value is to

understand how changing environmental, organizational, and workforce factors

will likely influence the business, anticipate the associated HR needs, and be

prepared to deliver appropriate solutions to meet those needs. By maintaining a

focus on workplace trends, for instance, HR can prepare to evaluate the impact

that particular changes are likely to have on an organization's people and

processes, and be prepared to work with the business leaders to decide how to

respond-being ahead of the curve, not behind it. For example, one movement that

is likely to have significant impact on the way people are hired, managed, and

valued is that of intellectual capital. A "new role" HR department is one that has

learned about intellectual capital and its implications, evaluated the impact on

current practice, and developed ideas and recommendations for changing HR

practice and other business processes.

Flexibility and creativity. An HR group that is successful in the future will likely be

one that is responsive to the changing needs of its client organization.

Responsiveness in the changing world of work will require being flexible-as the

organizations change, so will their needs and priorities. In addition, traditional

activities and processes may not be sufficient to meet the unique needs of the

future-HR leaders will likely rely on creativity of their groups to achieve effective

results. Increasing globalization of the market will create a need for both flexibility

and creativity as businesses try to succeed in new locations, with a new workforce,

and with new customers.

Delivering value. Although this is not a new challenge for HR, it remains a critical

one. HR is still perceived by many within today's organizations as simply a non-

revenue generating function. It is important to make apparent the value provided

by working with the management team to hire the right people, manage them

well, pay them appropriately, and build a working environment that encourages

success. Beatty and Schneier (1997) extended the concept of delivering value

within the organization by arguing that HR must deliver economic value to

thecustomers, as well as to employees.

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Here is a sampling of strategies that have seen implemented as HR groups work to

respond to environmental and organizational changes, become more valuable, and

deliver results.

Business unit assignment. Some companies are assigning HR employees to specific

business units as a way of enabling them to develop a focused relationship with a

small part of the business. This relationship can be enforced when the HR person

has a direct reporting relationship with the leader of the business unit. In these

situations, the central HR group usually provides information and services to the

"distributed" HR representatives, who then deliver the service personally to the

business unit. One advantage of this structure is that it fosters the flexibility and

creativity mentioned above, as the local HR people can modify and tailor processes

and services to meet the needs of their assigned business units.

Centers of excellence. As organizations grow by merger and acquisition, they often

find themselves with multiple HR groups. These can be duplicative or

complementary. When they are duplicative, they can be subject to (painful)

downsizing and consolidation, leaving behind a department that is unable to serve

all areas of the business as well as they had been accustomed, which can, in turn,

undermine the credibility of HR. An effective response to this issue is to utilize the

multiple HR groups differently. One approach that seems to work well is to develop

"centers of excellence," where the HR groups in different parts of the company

develop their expertise in a particular area and serve the needs of the larger

company in that area-HR groups operating within this model can see each other as

resources rather than competitors, and the company benefits from high levels of

expertise in a number of areas.

Consulting model. A number of HR departments with whom I've worked have

adopted a consulting model of providing service. They view their internal

customers as clients, learn consulting skills, and take their client satisfaction as a

measure of their success. In one large high-technology firm, internal clients whose

needs cannot be met by the internal HR group can go to external service providers

directly-even for basic HR needs.

Job rotation. One way to bring the perspective of the business into HR-and vice

versa-is to rotate line managers into the HR function for periods of time. These

individuals often serve as reality checks for the HR group, and then bring an

increased understanding of the value of HR back to their line function when the

rotation is over. This approach seems to work best when the duration of the

assignment is sufficient to allow the rotated individual enough time to become

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proficient in some area(s) of HR and when he or she is working closely with

experienced HR people who can help them learn. Sending HR people into other

areas of the business can serve a similar purpose.

Increasing line managers' capabilities. Part of the future HR model is that

responsibility for HR activities is shared between line management and HR people.

This approach allows the manager to be more fully involved in the development

and direction of employees, with HR as a resource; it requires, however, that those

managers have the capabilities needed to work through issues with employees

successfully. Many companies are therefore increasing line managers' access to

information. Many of today's HR information systems and integrated HR systems

put tools and data on each manager's desktop.

It is clearly time for a quantum leap in the HR field, and I/O psychologists working with

and for HR professionals can support this transition by taking seriously the organizational

pressures to change, helping to identify ways to measure the value delivered by HR, and

conducting meaningful research related to all areas of human performance in tomorrow's

organizations.

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Figure 2: 21st Century HR functions

Human Resource Functions 21st century

Human resource planning

Job Analysis design

Recruitment and Selection

Compensation and

remuneration

Promotion/

Transfer/

Termination

Training and Development

Orientation and Induction

Motivation, welfare, health

and safety

Industrial Relation

Maintenance & equal

employment

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9. Challenges of 21st Century HRM

Following are some challenges being faced by the HR department.

I. Attracting & selecting the best candidate:-

It has become very tough to find suitable talent as this a process where every candidate

will differ from others in one or the other sense. Even the managers will take decisions as

per their perceptions thus possibility of bias can’t be ruled out. Every manager’s decision

is influenced by his values, beliefs, political and social views. So 21st century poses the

challenge of selecting and attracting the best candidates by keeping the competition in

mind. The managers need to know that high-quality, skilled talent can be worth its weight

in gold and all the organizations are after them to join them but nobody’s able to find

them. While gold in the 19th century was found in abundance but today's high-quality,

skilled talent is not.

II. Promoting organization culture:-

An organization is full of diverse people; which is good in a way as different minds will

lead to innovation and new ideas but managing the culture with so many diverse minds

and putting across the cultural values is a tough task. Since organizational culture is an

important factor in attracting the new talent therefore HR manager has to put in a lot of

hard work and efforts to develop a successful organization structure. Managing these

people with diverse cultures like different religious, cultural, moral background is a

challenging task for the HR Managers in 21st Century. Due to acquisition and mergers

taking place it becomes important for the HR Manager to develop the work culture

because the whole organization is to be restructured after mergers. Organization’s now

are adopting more flat and simple structure. Globalization will impact HR managers by

requiring new skills such as language capabilities because the manager will have to speak

to other nationals while recruiting them.

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III. Career development of the employees

With the coming of globalization, there have come many technological developments and

changes. Innovation is the key to survive in the business. And workforce being an

important factor in the organization has to trained and developed along with the changes

in the business environment. Training should not be restricted to improving skills and

knowledge alone; rather it should concentrate on the overall career development of the

employee, which is a major challenge for the HR manager.

IV. Adopting human investment perspective

The HR manager will have to adopt more active than the reactive approach. He needs to

focus on using business strategies in human resources policies and practices for satisfying

consumers and employee’s needs. Need of the hour is to develop a workforce that

reflects the diversity of consumers and clients. Thus role of HR managers is expected to

change radically in the next decade. HR manager should be equipped with specific

competencies to support these roles. Thus, as mentioned above also, the mangers will

have to spend nearly all of their time managing cross-functional work teams. The

managers will have to develop an international workforce, they will have to keep the

written records of other cultures and keep the management informed of the cost for not

paying attention to all these major issues.

V. Making new retention & motivation strategies

As the organizations have opened up to hiring worldwide, it has become necessary for

the managers to have better retention policies. A multinational company comes with its

own set of rules and policies, but they have to adopt new rules and policies keeping in

mind the work culture of the country they are operating it. Only then they’ll be able to

satisfy the employees of that country and thus it will reduce the attrition rate. If the

employees are motivated and like their job, they are less likely to leave. The managers

will have to walk that extra mile to motivate today’s employees.

VI. Conflict management

21st century brings with it long working hours, target pressures, high competition, etc.

which can lead to stress and conflicts in the organization. The HR manager’s burden

increases as he will have to make sure that work is done timely and accurately but at the

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same time he will have to find ways of reducing stress and conflict before it can cause any

serious damage. Simultaneously, he has to balance his work life and personal life as the

stress and long working hours can also have a toll on him.

VII. Managing virtual workplace and e-commerce

Electronic commerce means to perform the trading activities through internet. The on-

line business has become a challenge for the workers. The managers are finding it hard

to hire & develop human resources who have the ability to attract, motivate, retain, and

to serve as maximum customers as possible. The virtual business world has forced the

business houses to decentralize their functions as flexible work arrangements take away

most of the time of the manager.

VIII. Business ethics and values

With changing work culture and structure, it has become more important to have ethics

and values in place which will also in the long run decides the sustainability of the

organization in the global market place.

10. How these above mentioned challenges affect the human

resources i. 1 .Cross cultural training of HR personnel so that they understand other cultural

people

ii. 2. HR will find its role highly globalized to emerging trends in the recruitment,

motivation and retention.

iii. HR should adopt the change at internet speed.

iv. HR will have to be on a continuous lookout for the innovations as they say

“innovation is the key to success”.

v. The traditional managers who have significant product and customer knowledge

will be rigid to adapt to the changing situation. They can oppose the use of new

technologies.

vi. Differences can arise among the internal management as they can divide in groups

of tech savvy and traditional partners giving way for internal conflicts.

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11. Human Resource Management: Major Influencing Factors

in 21st century

In the 21st century HRM will be influenced by following factors, which will work as various

issues affecting its strategy:

• Size of the workforce.

• Rising employees' expectations

• Drastic changes in the technology as well as Life-style changes.

• Composition of workforce. New skills required.

• Environmental challenges.

• Lean and mean organizations.

• Impact of new economic policy. Political ideology of the Government.

• Downsizing and rightsizing of the organizations.

• Culture prevailing in the organization etc.

12. The goals of HRM:

Human resource management’s fundamental goals involve placing appropriate

employees in open positions, promoting impartial and legal treatment of all workers and

ensuring the company complies with applicable labor laws. The human resources team

identifies the elements of each HR function and engages in strategic planning to meet

each objective.

Recruiting and Hiring

HR management works with the marketing and public relations team to develop the

company’s brand and attract quality employees. It recruits candidates through applicant

search strategies, such as colleges and professional organizations, and implements

application and interviewing processes. The department interacts with managers and

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supervisors on an ongoing basis to determine departmental staffing needs and

establishes new hire orientation procedures. The overall goal of recruiting and hiring is to

meet the company’s short- and long-term staffing needs.

Employee Benefits

Employee benefits, such as health insurance and retirement plans, help attract and retain

quality workers. To meet this objective, the HR management team researches, analyzes,

compares and recommends benefits packages. The department devises effective ways of

communicating benefits to employees, retirees and their beneficiaries. It works with key

stakeholders and employees to select benefits that respond to the employer’s and the

employee’s needs.

Recognition and Reward

The human resource management team creates recognition and reward programs to

retain high performers and to motivate employees into doing their best work. Incentive

programs may include bonuses, commissions, stock options, merit increases, contests,

gifts, commuter passes, achievement awards and annual events, such as picnics and office

parties. HR measures the popularity of such programs among employees and their impact

on the company budget.

Training and Development

Employees who need more knowledge or skills to capably perform their duties or grow

with the company can benefit from professional development. The HR management team

meets with managers and supervisors to discuss training for new hires and existing

employees. Based on employee performance, strengths and talent, HR recommends,

schedules and monitors training and development costs.

Legal Compliance

Interpreting federal, state and local employment laws and ensuring the company adhere

them is essential to HR management. These laws may pertain to hiring, performance

evaluations, wages and hours, employee classification, termination, attendance,

immigration, discrimination, harassment, retaliation, workers’ compensation, record-

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keeping, unemployment insurance, safety and employee benefits. The objective is to stay

current on these laws and apply them properly to avoid audits and penalties by the

government.

Goal Setting Standards

Establishing goal setting standards allows HR to monitor whether employees are meeting

company standards. Expectations may relate to attendance and punctuality,

communication, flexibility and adaptability to change, work knowledge, leadership

abilities, diversity tolerance, customer relations, listening skills, management style,

teamwork, and problem-solving, organizational and time management abilities.

Metrics and Reports

The human resource management team uses HR metrics and reports to measure the

effectiveness of the department. HR software has metrics and reporting tools that

simplifies quantifying costs related to each HR function. For example, metrics calculate

cost of benefits per employee, benefits as a percentage of operating expenses, absence

rates and wages and salaries paid to each full-time employee.

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13. An HR system refers to how different HR practices are used in

combinations to address three primary issue:

Figure 3: What is an HR system?

Work Environment

Employee Attitudes and

Behaviors

Employee Competencies

Recruitment, Selection,

Training, and Development

Job design, Organizational Structure

Participation/ Empowerment

Incentives and Rewards Performance

Evolution and Appraisal Compensation

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14. IMPLEMENTING HR POLICY:

The aim will be to implement policies fairly and consistently. Line managers have a key

role in doing this. As pointed out by Purcell et al (2003), there is a need for HR policies to

be designed for and focused on front line managers. It is they who will be largely

responsible for policy implementation members of the HR can give guidance, but it is line

managers who are on the spot and have to make decision about people. The role of HR is

to communicate and interpret the policies, convince line managers that they are

necessary and provide training and support that will equip managers to implement them.

As Purcell ET at (2003) It is line managers who bring HR policies to life.

Develop an integrated compensation plan

The board has approved the plan and monitoring and evaluation mechanisms are

in place.

The plan has been communicated to employees.

In some instance, it may be advisable to appoint someone internally who will help

facilitate the efforts of the interim executive. This person will be responsible for

evaluating the performance of the executive and conducting periodic reviews at identified

project milestones. This person can be the sponsor or another senior staff member.

Often, this person will be someone who has a vested interest in the positive outcome of

the project or assignment. In certain circumstances the senior human resource

practitioner may be appropriate for the role. For instance, when there is a planned or

unplanned departure of a senior manager, the human resources executive may want to

collaborate with the interim executive in the hiring of a permanent replacement.

The criteria for hiring an interim executive should be no less rigorous than those used

when hiring a permanent employee. Specifying used when hiring a permanent employee.

Specifying what experience and qualifications are needed for the job is merely a

minimum. To be successful, expected behaviors should also be defined.

Conditions of increasing competition have focused attention on the role of company

human resource policies within the wider business strategy. Changes in policies towards

employees are frequently claimed to be integral to company success in the face of

intensified market pressures. However, despite the importance of these issues, relatively

little attention, to date, has been paid to the possible links between innovations in the

management control systems (MCS) responsible for implementing the desired strategic

changes and the management of human resources.

21

In particular, this examines the opportunities for HRM to contribute to the successful

implementation of new financial and production-control systems. One of the principal

aims of these new MCS is to widen the responsibilities of managers and supervisors and

to increase their accountability to senior managers. A distinctive feature claimed for HRM

is that line managers and supervisors become more involved in implementing an overall

policy on human resources. Clearly, there exists an opportunity for these two sets of

changes to support one another. The intended widening of line managers' duties might

potentially include additional human resources responsibilities. The desired increase in

managerial accountability creates the opportunity for them to become more involved in

promoting a distinct HRM philosophy and approach

15. An Emerging Human Resource Management Practice in 21st

century

Human resource management (HRM) and Human capital management (HCM)

Human capital management requires capable employees whose competence is above

board and are highly proficient in performance of their work. These people introduce

creative, innovative ideas and make the organization different from its competitors.

Human capital management is related to employee’s commitment, retention, talent

management, learning and development of personnel. To manage highly competent

employees has become very important in order to survive in today’s dynamic and

extraordinary competitive environment (Huselid, 1995 and Youndt et al., 1996). There are

three elements of human capital management that boost-up the effect of human

resource management:

Employee dedication Mutual trust between employer and employee.

Norms, values of organization and also the top management behavior (Tower,

1994).

Significance of Human Capital Management It is very important for any organization to attract, fascinate and retain highly capable employees. Mostly, the organizations concentrate on their physical and financial

22

resources but relatively do give a considerable amount of time on its personnel’s. However, the organizational employees have formal reporting relationship and chain of command. There must be pragmatic policy to motivate the employees and in turn give them

the ex-gratia or right benefits. By motivating their employee at the right time; the organization can easily attain the competitive advantage (Edward & Lawler, 2009).

Human Capital Framework

Figure 4: Human Capital Framework

Knowledge Management and Human Capital Management:

Knowledge management is an institutionalized erudition, which enhances the

organizational productivity and also brings about innovative and creative ideas through

collective wisdom (Stankosky, 2007). Knowledge management is meaningfully significant

because it supports the organizational objective in a way that it determines what special

expertise the organization requires. Following this the logical sequence is: (a) find out the

people having that special expertise, (b) recruit them and create intellectual capital to

have more unique suggestions. Below are some kinds of intellectual capital (Jackson,

2007):

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Human capital

Social capital

Process capital

Intellectual property

Human capital and organizational learning capability:

Human capital is a valuable and intelligible resource of an organization through which the

organizational long-term survival can be foreseen and achieved. Prudent management of

human resource in an effective manner shall enable the organization not only to sustain

its long-term survival but also will increase its alert responsiveness to work in the dynamic

environment (Barney & Wright, 1998).

Organizational learning capability; among others, have aspects of tangible bearing (Jerez-

Gomez et al, 2005) as below:

Managerial commitment. System perspective. Openness and experimentation. Knowledge transfer and integration.

Organizational learning capability is further divided into two aspects:

1. Absorptive Capability and

2. Transformative Capability.

Transformational leadership:

In today’s dynamic and intensely competitive environment it is pivotal for the

organization to be unique from the competitors in order to survive and sustain its lively

entity. Obviously there are certain requirements for achieving the competitive edge.

24

These elements are the organization’s norms and values, its human capital, governance

and its information technology. The organization must have these factors in a unique

manner in order to make its organization different from its competitors (Barney, 1986;

Powell & Dent-Micallef, 1997; Wright et al, 1994; Hitt et al., 1998).

These elements will also generate the intellectual capital, which includes both the human

capital and the structural capital. Basically it is the human resource of an organization,

which leads towards the competitive advantage because the human resource is intangible

resource of an organization and also it is difficult for its competitors to generate the kind

of employees at par in competence in their organizations (Prahalad & Hamel 1990; Barnet

1991).

Employee Engagement and Performance Management:

Employee engagement refers to the dedication and loyalty of an individual towards its

job (Schaufeli & Salanova, 2007). It follows that not only an employee is physically

providing its services to the organization but also he is very passionate about his job

(Kahn, 1990). However, employee’s engagement is positively related with the

organizational productivity. The appropriate resources available to the employees to

complete their work are of immense significance because this will make the

organizational employees more enthusiastic about their entrusted task and also make

them dedicated, loyal to the firm. It will also provide opportunity to the employee for

their further development and advancements in careers, which will ultimately make the

organization different from its competitors. Resources enable and facilitate the

employees to fulfill the requirements of job and to work in the turbulent environment

(Bakker & Demerouti, 2007, 2008).

Talent management:

Talent management implies: appositely finding the most suitable incumbent for the

organization (Jackson & Schuler, 1990). It is also defined by Roth well, 1994 as a

methodology by which we make sure that the highly competent employees will get the

opportunity to further develop their careers by fulfilling the top management positions.

Talent management is also known as succession of planning and human resource

planning. Here the organization makes sure that every employee will get the proper and

sufficient opportunities and make the best of it. The most important aspect of talent

management is that the organization must be aware of their personnel’s talent, traits,

25

expertise and the level of competence. Talent management is succeeded by the second

most significant element, which is human resource planning. Organizations usually make

lists of the competencies they mostly require. This will help them to find out the individual

with appropriate skills. Talent management involves high performing employees and

highly capable individuals. Combining highly capable and competent employees will help

the organizations to do succession planning successfully (Axelrod, Han dfieki-Jones &

Michaels, 2002; Michaels, Hadfield-Jones & Axelrod, 2001).

16. Recommendations:

In the present era most of the organizations are competing globally for their best

reputation, by keeping in view the above issues and challenges the HR mangers are responsible to train all the young workers, to provide them best rewards as a result they will show their commitment and loyalty.

Technology has changed each and everything with great extent, the methods of

production, the process of recruitment, the training techniques, new equipment and technology should be introduced and purchase by the organization and training should be provided to young and educated workers.

Keeping in mind by HR manager the issue of Globalization, to cope this issue the

concept of Globalize Human Resource Management (GHRM) should be implemented to

prepare the skill people or manager worldwide. This way the trend of globalization can

be minimized with some extent.

Human resource manager should develop such a HR system which consistent with

other organization elements such as organization strategies, goals and organization style,

and organization planning.

One of the great debate also going on work force diversity, the HR manager responsible

to make such a broad strategies which help to adjust employees in global organization,

HR must develop the ability to compete in the international market.

26

Organization culture is also another important element which must be consider by the

HR manager, the culture must be like to shape their behavior and beliefs to observe to

what is imperative.

To provide more and more talent people into the organization the HR manager must

re-decide and re-arrange the staffing functions, for recruitment selection, training and

transfer, promotion, dismissals, placement, demotion and layoffs of the employees

separate strategies should be developed and implemented.

17. Conclusions

The important of HR in 21st century providing sustained competitive advantage was

shown to be achieved through recognizing and incorporating many different ideas and

perspectives into the management of the HR function. Likewise, properly managed HR

was identified as being an integral contributory factor in improving organizational

productivity. It was also discussed that through attentive and forward-thinking

management of HR, the value of HR can be improved, organizational productivity can be

enhanced, and competitive advantage can thus be attained.

The view from Sparrow (cited in Roberts, 2003) is that, “Organizations must shy away

from ‘one best way’ solutions when designing global HR systems” and that “even among

HR professionals there are different views about which HR practices deliver competitive

advantage, that can have a major impact on global knowledge transfer". It was through

the resource based view (RBV) that the value, rareness, imperfect imitability and

imperfect substitutability of an organization’s HR were shown to provide the means for

an organization to attain an advantage over their competition. These included recruiting

and selecting suitable employees, encouraging diversity in the workplace, managing

knowledge, fostering innovation, and focusing on employee development and

engagement. Figure 1: 21st Century HR functions, Figure 2: What is an HR system? And

Figure 3: Human Capital Framework. This is but one of the areas that the HR manager of

the future will have to concentrate to satisfy employees from Baby Boomers to

Generation Yers.

27

18.Reference List 1. Ashwathappa K., ( 2006) Human Resource Management, Tata McGraw Hills , New

Delhi, 3rd edition

2. Challenges of Human Resources Management in the 21st Century,

www.ituarabic.org.

3. P. Subba Rao,( 2006) Personnel& Human Resource Management, Himalaya

Publication, New Delhi, 3rd Edi

4. Dessler, (2013). Human Resource Management, Pearson Education Limited.

5. International Journal for Administration in Management, Commerce and

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ISSN: 2347 – 9558

ISSUE: 3 (January-2015)

6. Jeffrey A Mello, (2003). ‘Strategic Human Resource Management’, Thomson,

Singapore, Southwestern Limited.

7. Losey, M. (2005). Future of Human Resource Management: 64 thought leaders

explore the Critical HR issues of today and tomorrow. Published john Wiley & sons

USA Inc.

8. Macky, K, & Johnson, G (2000). Managing Human Resource in the Newzeland,

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11. Randy L. Desimone, Jon M. Werner – David M. Marris, (2002). ‘Human Resource

Development’,Thomson Southwestern, Singapore

12. Robert L. Mathis and John H. Jackson,( 2003 )‘Human Resource Management’,

Thomson Southwestern, Singapore.

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13. Forster, N. (2005). Maximum Performance: A Practical Guide to Leading and

Managing People at Work. Cheltenham: Edward Elgar Publishing Ltd.

14. Gilbert, J., & Jones, G. (2000). Managing human resources in New Zealand small

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