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Emerging Trends and Challenges in HRM
Emerging Trends and Challenges in HRM
Emerging Trends and Challenges in HRM
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.
2. INTRODUCTION
It 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
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.
3.Changing composition of work force: In future, women and minority groups, SCs
and 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.
5.occupational health and safety: Due to legislative presence and trade union
movement, personnel management will have to be more healthy and safety conscious in future.
7.New work ethic: greater forces will be on project and team forms of organization. As
changing work ethic requires increasing emphasis on individual. Jobs will have to redesigned to provide challenge.
9.Better appraisal and reward systems: organizations will be required to share gains of
higher periodicity with workers more objective and result oriented systems of performance, appraisal and performance linked compensation will have to be developed.
10.New personnel policies: new and better polices will be required for the work force of
the 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.
NEW TRENDS IN HR
Human 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
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 & 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
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.
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.
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.
corporate practices 10 years ago. Leaders and top management must be responsible for building strong, highperformance cultures. They are the ones who construct the social reality, and shape the values of the organization.
Some of the emerging trends in the role of personnel manager are as follows:(i). Personnel managers of future will have to stress upon overall development of human resources in all respects. (ii). The scope of human resource management will be extended to cover career planning and development, organization development, social justice etc. (iii). Enlightened trade unions will become an active participant in the organization and management of industry. (iv). The personnel manager will be required to act as a change agent through greater involvement in environment and scanning and development planning. They will have to devote more time to promote changes than to maintain the status quo. (v). The personnel function will become more cost-conscious and profit oriented. Instead of merely administering personnel activities, the personnel department will have to search out opportunities for profit improvement and growth. (vi). Greater authority and responsibilities will be delegated to personnel managers particularly in the field of employee welfare services. (vii). Personnel managers will have to continuously retrain themselves to avoid obsolescence of their knowledge and skills. Thus, the job of personnel managers will become more difficult and challenging in future. They 9
will have to be experts in behavioral sciences. They will play a creative and development role. They will thus have play a creative and development role. They will have to acquire new skills, values, attitudes to discharge their new responsibilities successfully.
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Globalisation:- Many Indian firms are compelled to think globally, something which
is difficult for managers who were accustomed to operate in vast sheltered markets with minimal or no competition either from domestic or foreign firms. Indian firms need to move from one end of each continuum to the other end as shown below:
Flexible, flat and team based structures Family centric, closed minded & secretive environment Dispersed ownership, open minded & transparent
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Balancing Work-life: Balancing work & life assumes relevance when both husband
and wife are employed. Travails of a working housewife are more than a working husband, thus balancing it is becoming a major challenge for HR manager. So a programme aiming balancing work-life is required and are supposed to include: Childcare at or near the workplace, Job Sharing, Care for sick children and employees, On-site summer camp, Training supervisors to respond to work and family needs of 13
employees, Flexible work scheduling, Sick leave policies, Variety of errands from dry cleaning, dropping children at schools, making dinner reservations etc and many more like the same or other.
Managing Diversity: Its value is getting more important issue because of: Increase
in the number of young workers in the work-force, increase in the number of women joining the work-force, increase in the proportion of ethnic minorities in the total workforce, increase in mobility of work-force, international careers & expatriates are becoming common, international experience as a pre-requisite for career progression to many top-level managerial positions. Organisations that can manage diversity better trend to be more flexible because they have broadened their policies, are more openminded, have less standardized operating methods and have developed skills in dealing with resistance to change.
other benefits need to be doled out frequently to appease workers. General perception of managers is to avoid unionization but it is very beneficial to the organization. It provide a mean for workers to express before the management conditions prevailing in the workplace. But at the same time because of voice mechanism or the instrumentality role, unionized firm have lower turnover rate and encourage organization to provide more rational and professional management. So the work of HR mangers gets tough here to decide whether is should be there in the organization or not and if yes then how to control it. Strings of the union are required to be checked time to time for better performance in the firm.
The Indian IT industry poses a baffling challenge to HR professionals-from recruitment to retirement, compensation to career planning and from technological obsolescence to labour turnover. This problem can be tackled with the use of HR planning which in itself is a challenging task in IT industry. Determining the strength required for the near future is a very complex problem in an IT company. The deciding factor is the companys perceived ability to bag projects both locally and internationally. The problem here is that until the company have sufficient right-mix of people, it cannot clinch a project. But unless there is a project, it cannot attract and retain people. With the advent of MNCs it may be noted that job prospects are gearing up. The multinationals are offering fantastic pay packets and working environments to their employees.
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CHALLENGES IN TCS
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3) Large workforce
There is a big challenge of maintaining large work force consisting of 1.3 lac employees for TCS
4) Managing EIS
As information is the basis of decision-making in an organization, there lies a great need for effective managerial control. A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions. When managing an Executive Information System, a HR manager must first find out exactly 17
what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals.
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b) Challenges in birlasoft
1. Communication Focusing on establishing effective communication throughout the organization and to ensure that Birlasoftians have the skills and avenues to share information and coordinate activities effectively. 2. PerformanceManagement Driving the organizations and its members progress by establishing objectives related to committed work against which performance can be measured, ascertain capability development assistance required to continuously enhance performance. 3. CompetencyDevelopment This starts with identification of requisite competencies at the organization level which are ultimately dependent on competencies that are needed to be identified, built or enhanced in the individual Birlasoftian. Enhancing constantly the capability of Birlasoftians to perform assigned tasks and responsibility in turn uplinks to the organization capability building. 4. Training and Development To ensure that the identified competency requirements are built through a systematic and focused approach. 5. Compensation To provide all individuals with remuneration and benefits based on their contribution and value to the organization in a fair and transparent manner. Competitiveness of the compensation offered in comparison with the prevailing markets' reality is the driving force. 6. Career Development To ensure that individuals are provided opportunities to develop their competencies that enable them to achieve professional and personal career objectives within the 21
organizations goals.
7. Participatory Culture A myopic outlook of utilizing talents of people only in the delivery of assigned duties has two broad undesirable effects: It prevents people from developing as well rounded professionals; and it denies the organization the readily available multi-talented internal resource pool that could potentially contribute to most of the challenges and opportunities facing the organization. Building a participatory culture enables availability of avenues to harness/give exposure to employees full capability by involvement in making decisions and solving problems that affect the performance of business activities
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a) Company Profile
ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 13 billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by BusinessWorld, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.
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a) Company Profile
Godfrey Phillips is today the second largest player in the Indian cigarette industry with an annual turnover of over US$ 265 million. The company was incorporated in India in 1936, the Company established its own manufacturing facilities in 1944. The Company today is the proud owner of some of the most popular cigarette brands in the country like Red and White, Four Square, Jaisalmer, Cavanders, Tipper and Prince.Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800,000 retail outlets b) Challenges in GPI
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Performance Management
Driving the organizations and its members progress by establishing objectives related to committed work against which performance can be measured, ascertain capability development assistance required to continuously enhance performance. 2. Planning a Mentoring Program
One of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could entail involving different departmental managers in a mentoring program to coach and provide feedback to employees who are different from them. 25
In order for the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field. Usually, such a program will encourage organizations members to air their opinions and learn how to resolve conflicts due to their diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to move beyond their own cultural frame of reference to recognize and take full advantage of the productivity potential inherent in a diverse population. 3. Training and Development
To ensure that the identified competency requirements are built through a systematic and focused approach. 4. Organizing Talents Strategically-
In the GPI a HR Manager must be able to organize the pool of diverse talents strategically for the organization. He/She must consider how a diverse workforce can enable the company to attain new markets and other organizational goals in order to harness the full potential of workplace diversity. An organization that sees the existence of a diverse workforce as an organizational asset rather than a liability would indirectly help the organization to positively take in its stride some of the less positive aspects of workforce. 5. Motivational Approaches Workplace motivation can be defined as the influence that makes us do things to achieve organizational goals: this is a result of our individual needs being satisfied (or met) so that we are motivated to complete organizational tasks effectively. As these needs vary from person to person, an organization must be able to utilize different motivational tools to encourage their employees to put in the required effort and increase productivity for the company.
CONCLUSION
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Human resource Management will be the key area of focus in 21st century as in companies and government organization put in place strategies to cope up with the economical crisis and recovery. The so called war for talent is on the backburner as the focus shifts to hiring freezes, benefits and compensation cost management, and workforce reduction in the hardest- hit segment and as the the era of skillbased workers has arrived but if India wants to truly move to the global ground, it has to spruce up its workforce. Small may be beautiful, but not in the IT industry. In the knowledge era and a skill-based economy, it has become imperative that human resources become one of the most essential ingredients of success. The growth of IT companies and other companies are worldwide depends on its people and the intellectual capital it possesses. Knowledge workers has become a buzzword in todays scenario. And if we look at the top software exporters, they have been growing phenomenally in workforce strength. To make it big in the global software market, India needs to increase its mass of knowledge workers. The total human resource strength of the IT industry as a whole stands at 425,609. A company-wise break-up of this figure reveals that nearly 525 companies constituting 35% of the IT industry employ an average of 58 persons each, 750 companies constituting 50% of the industry employ an average of 275 persons each, and 150 companies constituting 10% of the industry employ an average of 726 persons each. At least 40 companies have more than 1,000 employees, while some very big companies like TCS and Infosys have staffs above 5,000 each. As we already know that Human Resource Management of the organization deals with the individuals putting their hard work to meet the organizations goals. Managing people is the toughest element of any organization than land, machinery or finances. Every human being has its own degree of preferences, likings and attitude.
REFERENCES:
www.godfreyphillips.com/ www.itcportal.com/ www.humanlinks.com/manres/articles.htm/ www.humanresourcesmagazine.com.au/companies/ITC-Learning 27
www.hinduonnet.com/businessline/2001/01/19/stories/071952tb.htm http://www.henley.reading.ac.uk/management/about/staff/c-j-brewster.asp
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