UNIT IV

TRENDS IN HRM

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OUTLINE OF THE UNIT
• HRM in a changing environment- Changing environment of HRM and
Challenges before HR Manager.
• Competencies and Learning organisations ;
• Employee branding
• The need for innovation; creating an innovative organization;
Managerial role in creating an innovation culture
• Re-engineering- the role of HR in Business Process Engineering

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HRM IN A CHANGING ENVIRONMENT
• Change is dynamic and universal in every sphere of activity as well as
regionally, nationally and globally
• Likewise, changes are occurring in Human Resource Management
• HRM traditionally focussed on the people within an organization and
their optimum utilization for the productivity and profitability of an
organization
• HRM today is moving away from the traditional functions (which are
increasingly being outsourced) to functions that add value to the
strategic utilization pf employees
• Since business environment is changing, HRM too needs to sense,
respond and deal with human resource issues arising in organizations
as a result of such changes

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HRM IN A CHANGING ENVIRONMENT – contd…
CHALLENGES FACED
• Environmental challenges/changes
• Work force diversity, Globalization, Legislation, Technology changes,
Competition, Skill shortages, Rise of service sector, Rapid socio- economic
changes, Evolving work and family roles, Changing consumer needs and rising
expectations of consumers
• Organisational challenges/changes
• Controlling production and other costs, improving product quality,
organizational restructuring, creating new distinctive capability
• Individual challenges/changes
• Productivity, empowerment, matching people and organization research,
brain drain, ethics and social responsibility, job insecurity

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CHANGING ENVIRONMENT OF HRM & CHALLENGES BEFORE HR MANAGER (12mks)
Changing business environment is giving rise to significant changes in
HR causing it to emerge as a source of competitive advantage and
giving rise to different opportunities and challenges for Indian
companies.
FACTORS RESPONSIBLE FOR CHANGING ENVIRONMENT OF HRM
• Workforce Diversity
• Economic & Technological changes
• Intense competition
• Globalization
• Organisational restructuring
• Changing business environment
• Changing nature of jobs and work

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CHANGING ENVIRONMENT OF HRM & CHALLENGES BEFORE HR MANAGER
Challenges before HR Manager – The environment of HR is the net
result of economic, socio-cultural, political or technological forces. This
creates problems/ challenges/ difficulties before HR managers

• Challenges relating to recruitment, selection & development of manpower

• Challenges relating to industrial relations
• Challenges relating to provision of welfare facilities
• Challenges relating to manpower management
• Challenges relating to data collection, storage and availability for use
• Challenges relating to expansion, modernization and automation
• Challenges relating to collective bargaining and other techniques of WPM
• Challenges relating to execution of Personnel / HR policies

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COMPETENCIES – CONCEPT & MEANING
• Competence is a skill or ability or capacity to perform some work or activity in a
satisfactory manner. In today’s competitive business environment, organizations
need employees with competencies for survival, growth and prosperity.
• Competencies include adaptability, creativity, motivation, foresight, commitment,
leadership, communication etc. and these competencies are used as benchmarks
against which assessors evaluate employee worth for the entire HRM process.
• Competencies may be defined as, “measurable human capabilities that are
required for effective work performance demands” or “underlying characteristics
of a person that result in effective or superior performance”.
• Competencies may include
• Leadership Competencies – decisiveness, team leadership, development of people, strategic
orientation, achievement orientation, self confidence, courage and conviction, impact and
influence & relationship building
• Interpersonal competencies – Respect for clients, listening skills, oral & written
communication skills, negotiation skills, coaching skills, presentation skills, conflict
management skills, & flexibility

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LEARNING ORGANIZATIONS - CONCEPT & FEATURES
• Learning Organisation refers to a company that facilitate the learning of its
members and continuously transforms itself i.e. learns and encourages learning
among its members
• They develop as a result of pressures facing modern business and need to acquire
knowledge and innovate regularly to survive and progress in a rapidly changing
environment while anticipating and adapting more readily to environmental
impacts.
• They show significant improvement in for major areas :
• Economic, social and scientific environment
• Workplace environment
• Customer expectations
• Use of knowledge workers
• They create a culture that supports learning, critical thinking, risk taking; they
learn from experience and experiments mistakes; allow mistakes and
acknowledge employee contribution and disseminate new knowledge and
learning throughout the organisation.

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LEARNING ORGANIZATIONS - FEATURES (SN – 4 MKS)
Learning Organisations are
• Based on organized thinking
• Team learning and knowledge sharing
• Customer oriented
• Empowers team members for democratic functioning
• Enables individuals to create professional expertise
• Has a flexible set up for adopting change management
• Considers each employee important
• Makes the organisation competitive
• Supports situational leadership to control dissatisfaction
• Makes learning a continuous process thus creating a culture of learning

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EMPLOYEE BRANDING – CONCEPT & 4 E’s
• Employee branding is influencing the behaviour of the employees in an organization
i.e. the practice of aligning the employee’s behaviour and point of view with the
image that the organisation wants to project to its customers and external
stakeholders.
• Employee branding shapes employees behaviour so that they project the brand
identity of their organisations products and services through their everyday work
behaviour.
• It is the process through which employees internalize the organisation’s desired
brand image and project it through their desired behaviour, attitude and actions to
customers and external stakeholders.
• The 4 E’s of Employee branding include
• Employee Engagement
• Employee Empowerment
• Employee Education
• Employee Equity

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INNOVATION – MEANING & NEED
• The process of translating an idea or invention into a product or service that
creates value for which customers will pay is called innovation.
• To be called an innovation an idea should be replicable at an economical cost and
must satisfy a specific need.
• Innovation involves deliberate application of information, imagination, initiative
in deriving greater or different value from sources and may be revolutionary or
evolutionary.
• It converts new ideas into usable applications.
• It is the key to competitive advantage and critical to organisational survival.
• Innovation is, “any effort to create powerful focussed change in an enterprise’s
economic or social potential.” or “ a change that creates a new dimension of
performance.” Peter Drucker

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NEED FOR INNOVATION
• Business survival – innovation is a must for survival and growth in a competitive
business world.
• Economic growth- innovation is the route to economic growth
• Better returns – they yield far better returns than normal business assignments
because of their novelty value
• Competitive advantage – provides features and benefits that will dominate
competitors
• Brings in higher business revenues – new products and services sell well and
hence bring in higher revenues
• Business opportunities give rise to the need for innovation and innovative
methods and techniques in production, marketing etc. for competitive advantage.
• For cost control – costs can be controlled through innovations allowing
organisations to do more with less thus increasing profitability.

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CONCEPT & FEATURES OF INNOVATIVE ORGANISATION
Concept & meaning
• Innovative organisations are those that are first among a set of similar
organisations to do something that none of the organisations has done
before.
• Innovative organisations have creative employees who use strategy,
systems, leadership and culture to arrive at new solutions and move away
from standard ways of functioning
• In innovative organisations, corporate strategy and culture support
innovation with innovative ideas being appreciated, risks taken and failures
being taken for granted.
• Innovative organisations have cross functional teams (people from
different departments) and include idea generators, information
gatekeepers, product champions, innovation leaders and project
managers.
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FEATURES OF INNOVATIVE ORGANISATIONS
• Autonomy
• Means to achieve goals
• Unique & relevant strategy
• Generating an environment of trust
• Recognition of failure as an acceptable risk or outcome
• Market leadership
• Stress on creative ideas

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MANAGERIAL ROLES IN INNOVATION
Managerial roles are specific behaviours associated with the task of
management and the role of a manager is critical in the innovation
process. The managerial role in innovation includes:
• To manage the transition
• To bring about recovery
• To manage order and disorder
• To provide organisational stability
• To sustain learning organisations
• To encourage decisional roles

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 CREATING INNOVATION CULTURE
• An innovation culture is one that supports the creation and
implementation of new ideas.
• Innovation is a skill that can be learnt and applied systematically
through training in creativity methods and innovation management.
• Innovation culture is an environment that supports creative thinking
and advances efforts to extract economic and social value from
knowledge thereby generating new or improved products, services or
processes.
• Innovation culture is a prerequisite for innovation and through idea
sharing, accepting change it can leverage the existing strengths of an
organisation for greater success

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Business process Re-engineering (BPR)
• Business processes refer to the way to get the work done and BPR
refers to the analysis and redesign of work flows and processed
within and between organizations.
• BPR fundamentally rethinks and radically redesigns business
processes to achieve dramatic improvements in performance in terms
of cost, speed, quality and service.
• The four key word in BPR are:
• Fundamental rethinking - what to do and how to do it, ignoring what is and
concentrating on what should be
• Radical redesigning – disregarding existing procedures and structures and
inventing new methods of doing the work
• Dramatic Improvements –achieving quantum leaps in performance
• Business Processes – collection of activities that takes in one or more kinds of
inputs and creates output of value to customers.
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Business process Re-engineering (BPR)
Features of BPR
• Combination of several jobs; performed in a natural order or
sequence; requires multiple versions of the process; performance at
the logical time; autonomous decisions by workers; usage of IT;
commitment by management; achieves breakthroughs.
Advantages
• Investment oriented process; demanding jobs; identifies waste;
growth of knowledge; allows employee empowerment; reduces cost;
allows higher employee satisfaction
Disadvantages
• Cross functional problems; restricted application; requires effective
monitoring; inability to quantify improvement;

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 ALL THE BEST!

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