CHANGING TRENDS, CHALLENGES & ISSUES IN HRM

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Human Resource Management, Challenges in HRM, Issues in HRM, Trends in HRM, Human Resource

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CHANGING TRENDS, CHALLENGES & ISSUES IN HRM

CHANGING TRENDS, CHALLENGES & ISSUES IN HRM

CHALLENGES, ISSUES & CHANGING TRENDS IN HRM Introduction ..HRM is a process of bringing people and organizations together so that the goals of each other are met.As talent occupies centre stage in the workplace, managing and retaining manpower is becoming crucial to an organizations success.Over the recent years, significant changes have taken place in the social, economic, technological & political envt of business.HR professionals cant ignore such changes. He has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. He need to design & execute innovative mechanisms of developing skills & competencies of human resource.Major challenges & issues includes..Challenges of globalization.It includes Integration of economiesGlobal benchmarkingChange in the management styleFuture of public enterprisesTechnological advancesIn the competitive world of today, industry cannot hope to survive for long with the old technology.Unemployment resulting from modernization will be solved by properly assessing manpower needs & training of redundant employees.This is a difficult process faced by the HR managers.

IT revolutionIt is about real-time access and sharing of digital information.It is made possible by core information technologies like digital networks, information databanks & computer graphics.Work place of executive would be anywhere in the world & his work envt may be named work station.Time & speed would be his watch words.

Challenge of quality revolutionAction Revolution which has been developed around customer satisfaction as the central focal theme.Forced organizations throughout the world to become conscious about quality, productivity, pricing & consumer satisfaction.Products are now available that are far more superior than the earlier ones in terms of quality given the same or even lower price.E.g. Motorola, implemented six-sigma to attain 99.99997% defect-free manufacturing.Changes in politico-legal environmentGovernments participation in trade, commerce & industry will also pose many challenges before private sector firms.Govt. may restrict the scope of private sector in the areas of public interest.Govt. has enacted various legislations to bring about an equilibrium b/w the capitalists & labour force. Many changes are taking place in the legal framework of IR system in the country.It would be a major challenge for the human resource executives to fully examine the implications of these changes & bring about necessary adjustments within the organizations.

Changes in workforce profileIncrease in education level.Change in skill level. Wisdom worker.Age group and aspirations of workers. Workforce diversityThe increasing heterogeneity of organizations is an important challenge for HR managers.Includes workers from different groups.Employees dont set aside their values, beliefs, lifestyles, preferences etc. when they come to work.If it is managed properly, there would be better communication, human relations & congenial work culture in the organization.

Empowerment of employeesIn future, the proportion of professional & technical employees will increase as compared to the blue collared employees.They will seek greater degree of participation in goal setting & decision making & also demands greater avenues of self-fulfillment.So, the organizations will have to be redesigned or restructured to empower the employees for their autonomy or freedom to take decisions while performing their jobs.The techniques of empowerment range from participation decision making to the use of self-managed teams.10Recent trends in HRM HR professionals cant ignore these challenges, rather they have to design and execute innovative mechanisms of developing skills & competencies.Some of the recent trends that are being observed are as follows:

Human resource outsourcingA company may draw required personnel from outsourcing firms. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. The outsourcing firms or the intermediaries charge the organizations for their services.

Trends in Recruitment

Poaching/raidingMeans employing a competent and experienced person already working with another reputed company in the same or different industry.Company can attract talent from another firm by offering attractive pay packages and other terms and conditions.E-recruitmentE- recruitment is the use of technology to assist the recruitment process. use Internet as a source of recruitment.

Other trends360-degree feedbackAlso known as "multi-rater feedback," "multisource feedback," or "multisource assessment.Is a feedback that comes from all around an employee.Feedback is provided by subordinates, peers, and supervisors & external sources such as customers and suppliers or other interested stakeholders.

Leadership DevelopmentCreating a pipeline of leadership talent is key to a business' future growth.Companies including HUL, P & G have been able to withstand attrition in key executives because they have always invested in developing leaders.

Work-life BalanceInstant RewardsRecognizing and rewarding performers is one of the most effective tools to attract and retain the right talent.include compensation in both cash and kind.companies are also including work-life balance programmes; competency pay packages, and career opportunities.

Six-sigma practices.

Is a business management strategyInitially implemented by Motorola.Seeks to improve the quality of process outputs by identifying and removing the causes of defects and variation in manufacturing and business processes. It uses a set of quality management methods, including statistical methods and creates a special infrastructure of people within the organization.

Exit policysurplus manpower is a major problem in many industrial units.E p refers to the policy regarding the retrenchment of the surplus manpower from restructuring of industrial units/ the workers becoming unemployed by the closure of sick units.It covers the compensation for the employees who leave the organization & the measures for their rehabilitation also.

Golden handshake is a clause in an executive employment contract that provides the executive with a significant package in the case that the executive loses his or her job through firing. restructuring, or retirement, This can be in the form of cash, equity, and other benefits.National Renewal FundThe central govt. of India has established a National Renewal Fund (NRF).Will benefit the worker affected by restructuring, modernization or closure of the unit.Golden handcuffsare a system of financial incentives designed to keep an employee from leaving the company.are a response by the companies in industries where it is common for highly compensated employees to frequently move from one firm to another. Golden boot compensation is an inducement, using maximum incentives and financial benefits, for an older worker to take "voluntary" early retirement.

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