Emerging Trends and Challenges in HRM

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<p>1. EXECUTIVE SUMMARY.All major activities in the working life of a worker- from the time of his or her entry into n organization until he or she leaves- come under the purview of HRM. With the passage of time HR mangers have started speaking the language of business. HR job is highly converted one and so are the Hr practices that are becoming highly visible in the organization. Its significance does lie not only in the observable practice of its functions, but contributing to ad drawing from the highest level of managerial policy. So, the challenges in the HRM practices are being visualized and are better explained considering two different sectors of the Indian industries. For better evaluation we had further taken IT industry and cigratee industry. We had had telephonic conversation with different companies. Its just for a evaluation purpose and so no further comments on the policies and challenges had given till now.</p> <p>1</p> <p>2. INTRODUCTIONIt is Department in order to successfully steer organizations towards The management has to recognize the important role of Human Resource profitability necessary for the management to invest considerable time and amount, to learn the changing scenario of the HR department in the 21st century. In order to survive the competition and be in the race, HR department should consciously update itself with the transformation in HR and be aware of the HR issues cropping up. With high attrition rates, poaching strategies of competitors, there is a huge shortage of skilled employees and hence, a company's HR activities play a vital role in combating this crisis. Suitable HR policies that would lead to the achievement of the Organization as well as the individual's goals should be formulated. HR managers have to manage all the challenges that they would face from recruiting employees, to training them, and then developing strategies for retaining them and building up an effective career management system for them. Just taking care of employees would not be enough; new HR initiatives should also focus on the quality needs, customer-orientation, productivity and stress, team work and leadership building. This report is divided into two sections that throw light on the emerging HR trends and discusses HR challenges in various companies like TCS,godfrey phillip,ITC,birlasoft This report should be valuable for practicing HR managers of every organization and also for those who have a significant interest in the area of Human Resource Management, to realize the growing importance of human resources and understand the need to build up effective HR strategies to combat HR issues arising in the 21st century. Human Resource Management has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades. Driven by a number of significant internal and external environmental forces, HRM has progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy. CHANGES IN HRM : Some of the significant changes that are likely to take</p> <p>place in the human resource management are as follows:</p> <p>1.Increase in education levels: Due to technological progress and the spread of2</p> <p>educational institutions workers will increasingly become aware of their higher level needs, managers will have to evolve appropriate policies and techniques to motivate the knowledge of workers. Better educated and organized workforce will demand greater discretion and autonomy at the work place.</p> <p>2.Technological developments: This will require retraining and mid-career training ofboth workers and managers. Rise of the international corporation is proving new challenges for personnel function.</p> <p>3.Changing composition of work force: In future, women and minority groups, SCsand STs would become an important source of man power in future on account of easy access to better educational and employment opportunities. Therefore manpower planning of every organization will have to take into consideration the potential availability of talent in these groups. Changing mix of the workforce will lead to new values in organizations.</p> <p>4.Increasing government role: In India, personnel management has become verylegalized. In future private organizations will have to co-ordinate their labour welfare programmes with those of the government private sector will be required increasingly to support government efforts for improving public health, education training and development and infrastructure.</p> <p>5.occupational health and safety: Due to legislative presence and trade unionmovement, personnel management will have to be more healthy and safety conscious in future.</p> <p>6.Organizational development: in future, change will have to be initiated and managedto improve organizational effectiveness. Top management will become more actively involved in the development of human resources.</p> <p>7.New work ethic: greater forces will be on project and team forms of organization. Aschanging work ethic requires increasing emphasis on individual. Jobs will have to redesigned to provide challenge.</p> <p>8.Development planning: personnel management will be involved increasingly inorganizational planning, structure, composition etc. Greater cost-consciousness and profit3</p> <p>orientations will be required on the part of the personnel department.</p> <p>9.Better appraisal and reward systems: organizations will be required to share gains ofhigher periodicity with workers more objective and result oriented systems of performance, appraisal and performance linked compensation will have to be developed.</p> <p>10.New personnel policies: new and better polices will be required for the work force ofthe future. Traditional family management will give way to professional management with greater forces on human dignity. Thus, in future personnel management will face new challenges and perform new responsibilities. Participative leadership will take the place of autocratic leadership. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal and rule bound approach to more open and humanitarian approach.</p> <p> NEW TRENDS IN HRHuman 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. 4</p> <p>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. Sixsigma 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. 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 &amp; 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. 1. The Changing Role of the HR Professional humans, not commodities, and HR departments have to start seeing them differently. With the current push towards strategies that engage employees, attract top talent, and contribute to the bottom line, this change is imperative. A Finance person who only understands Finance and a financial perspective, a Sales person who only understands Sales and the Sales perspective these individuals will have limited career prospects and very little chance of succeeding in a leadership role. The same holds true for HR people. That thisis the case is good news for HR. It means that HR 5</p> <p>and HR people are too important to be set aside in the corner. It means that HR skills and knowledge need to be brought to bear on the strategic management of the organization. Organizations consist of people. People are real. You can see them, touch them, hear them. And people have capabilities. If HR is to be perceived as an enabler of business strategies, they need to be seen to be making measurable contributions to the bottom line through expense reduction, or revenue generation, talent management and risk mitigation. HR people need to be a lot more creative in the way they do things. The one size fits all approach doesnt work anymore. HR departments of today need to be the talent departments of tomorrow. 2. The War for Talent The key to attracting and retaining scarce skills is to be, and be seen to be, a first-tier employer that can meet the needs of high potential/high performance employees. Traditional workforce planning is being replaced by talent strategies and skills gap analysis. Once they determine the gap, it becomes clear what talent they need to hire, to layoff, or to develop or transfer internally. Now is not the time to sit in the ivory towers thinking you know who your major contributors are. You need to dig deep into the organization to identify the top talent, the high performers in every aspect of your business. In all likelihood its not the people who are the most politically astute or the most popular. Traditional marketing practices are going to have to be applied to recruitment. Employer branding and unique selling points with a strong differentiator are imperative. Look at strategies such as changing your employer brand from the groan-inducing were a big successful company to a company delivering on the promise of continuous learning, work-life balance, personally-fulfilling roles and innovative reward and recognition programs.</p> <p>3. The Healthy Workplace: Wellness, Work-Life BalanceThere is no competitive advantage in sick and stressed-out workers. There is growing recognition that there is a definite link between the work environment and the health and well-being of its employees. Further, employers are now recognizing the connection 6</p> <p>between employee health and the bottom line. When we look in the mirror, we see ourselves as entire human beings not just people with jobs and careers, but people with families, friends, beliefs, interests, passions, responsibilities, worries and futures. We need to look at our people through the same mirror not just as employees or colleagues but as total human beings. If companies ignore the full humanity of their people, or if people find it necessary to suppress their human-ness in the workplace, the tensions created eat away at the vitality of the organization. 4.The Impact of Technology Eventually technology is going to eliminate most HR jobs as they exist today. Which is another reason for HR professionals to become more strategic. Technology, with all its self-service and anytime-anywhere communications capabilities, coupled with outsourcing, guarantees there will be fewer HR people in corporations. Technology continues to impact us profoundly, both in our personal lives and in the workplace, and it will continue to change. Weve entered the century of the employee and technology has to respond. CRM or customer relationship management is giving way to ERM employee relationship management. Employee self-service has become as important as customer selfservice. Customized and personalized content will be king. Employees can self-manage activities previously handled by human resource professionals. This is a cost-saving and timesaving benefit to organizations and it frees the HR practitioners to focus on more strategic issues. But more importantly, it is a fundamental expectation of Gen Ys and Gen Xs. Technology that protects the privacy and security of HR data is more important than everbut more on that later. Its important that we continue to embrace technology and keep our eyes on new advances that may bring even better communication and collaboration tools. Technology helps people connect within the work environment.</p> <p>5. Talent Management: Leadership DevelopmentLeadership skills are not built through courses. Management is a function of what you do; leadership is a function of what you are. When planning leadership development initiatives, the tendency is to first look for courses. One of the scarcest capabilities, now and for the likely 7</p> <p>future, is leadership. As organizations, their customers, their employees and their environment become more global, more complex, more competitive and more subject to rapid and radical change, the competency requirements for successful leadership are increasing exponentially. Most organizations would acknowledge that they currently have a shortage of leadership talent or bench strength; how will they fare when the bar keeps on being raised? Leadership is less definable and therefore leadership capabilities are more difficult to build or transmit. Indeed, one could debate whether leadership skills can be taught at all, or whether they are innate.</p> <p>6. Corporate Values and CultureThese days is that more and more firms are unwilling to tolerate unethical behaviour from their executives. They are taking drasticaction as in the case of the Boeing CEO who was ousted because of unethical activities. Ethical behaviour should be a core component of company culture. Ethics related language in formal statements not only sets corporate expectations for employee behaviour, it also serves as a shield f...</p>