Module 8- Contemporary

Concepts in Human Resource

Management (Author: Dr Analyn
V. Inarda)
Preffered by:
Ar-j B. Velasquez
Markdison De Ocampo
Anton Nikolai Anore
Jericho Calunsag
Objectives:
• At the end of this module, the students should be able to:
• 1.Decline Knowledge Management, Human Capital
Management and Competency Based HRM.
• 2.Identify the current changes in the field of Human
Resource Management.
• 3.Investigate on some crucial challenges pertaining to
21st HRM.
• 4.Analyze the importance of recent changes in the HRM
to the development of today’s workers.
Introduction :
• Noe et al. (2010) elaborated that in business world,
competition is getting worse to worst day by day and thus
HRM is the sole factor that provides an organization with
competitive advantage. People are the strong forces who
bring remarkable performance, and intellectual decision at
work. Gone are the days that managing people effectively
and efficiently have been overlooked. Contemporarily, one
unit of the business considers the welfare and discipline
of its people. However, managing them to contribute their
best effort have been changed to suit the needs of the
business society.
• Many authors stated that there are three basic
practices that play very acknowledgeable role in
performing any business activity.
• 1.“Best practices” is a set of HR practices of implemented
well, can improve the performance of business altogether.
• 2.“Contingency” as best “fit” approach is used as
business strategy which will improve the performance of
business.
• 3.“Bundles” generate bulk of HR practices that will elevate
the effectiveness and efficiency if business (Aslam et al.
2014)
• Any explanation on the impact of HRM on organization
performance is likely to base on three prepositions.
• 1.That HRM practices can make a direct impact on employee
characteristics such as engagement, commitment, motivation
and skills.
• 2.If employees have been the characteristics. It is probable that
organizational performance in terms of productivity, quality and
the delivery of high levels of customer will improve.
• 3.If such aspects of organization performance improve, the
financial results achieved by the organization will improve. This
can be described as HR value chain (Diploma in Human
Resource Management Coursebook, 2017).
• These prepositions clearly elaborate how people can
contribute their best for the organization. However, they
must e treated in a more strategic and confident manner
to stimulate them that they are part of the organization
and their roles have significances in its operations.
Asma et al (2014) on their study identified some crucial
challenges pertaining to 21st century HRM as follows:

1. Demographic shift: Due to the dynamic environment,

there is a challenge of demographic shift. Demographic
categories include, gender, race, nationality, age, religion,
and physical disability. The percentage of female
employees increases to 40% by 2008 with an increase in
their turnout ratio. With the growth if urbanization,
opportunities of jobs for females also got increased. In
America, five out of every six new workers are female.
• The workforce is aging with 10,000 “Baby Boomers”
turning 55 every day and many organizations employed
part retirement age either for financial reasons or due to
importance of their work. In this era, organizations hire
employees from different countries so there is unique
environment of organization because they have different
languages and cultures. Organization has their own
culture which makes employees feel free and
communicate with each other and also with the top
management.
• If the business tries to hire foreign workers, a program in
managing workforce diversity must be in place. This will
regulate the behavior of the employees in organization
regardless of their characteristics. Employees will be
reminded that everyone has differences, however their
relationship should be regarded as significant of the
individualities.
2.Work arrangements: Work arrangement is another reason for
change in workforce. Due to the latest technology including high
speed internet and mobile communication, there is great variety
that how and where employees do work. Now a number of
employees work in outskirts. The young and unmarried workers
are willing to work 60 hours per week for e sake of their career
while married people manage both the work and family both and
need flexible work arrangement and prefer lenient job. Above
mentioned are some of the challenges about diversity in the work
arrangements and demographic shift which put pressure on the
organization to create a cohesive team with vastly different skills
and knowledge to support organizational strategies .
• Contemporarily, human resource management has
introduced various work arrangements to help in
maintaining work life balance of employees. Aside from
the fact that, there are situations which calls an employee
to do works in different schemes due to some
circumstances. For example, the Covid 19 people's health
is the most important, and so the World Health
Organization (WHO) ordered every country to design
work arrangements which will not expose individuals to
the virus like work from home, alternative work
arrangement, 4 or 3-day workweek and others.
• 3. Knowledge-based economy: There is need to
diversify the HRM strategies due to the knowledge-based
economy and to compete with the today's competitors
and achieve competitive advantage The trend is shifted
from industry-based economy to knowledge-based
economy for providing value to the customers as well as
to the employees at the same time. In industry-based
economy, manage focuses on the efficiency of work only
but now in knowledge-based economy, the managers
focus is on both the effectiveness and efficiency. In this
Era, there is demand of expertise, innovation,
entrepreneurial skills and need of diverse workforce.
• This challenge reflects more on the intellectual and
human activity the employee can share to the
organization. It also means that individual must continue
to learn to be updated on the various skills and
knowledge the organization needs in order to compete.
• 4. Enhancement in creativity & innovation: The well-
known organizations focus on the skills of workforce and
their synergistic power to compete with the dynamic
environment. For example, Apple and other companies
locate their research labs all around the world to identify
the market changes and preferences. By identifying
changes, they create new and innovative product.

• Businesses are surrounded by competition, in order to

cope with it, the human resources have to be trained and
exposed in various innovations.
• 5. Gaining maximum market share: Due to diversity,
there is need to focus on the marketplace and market
knowledge to know the customers’ needs and wants and
to manufacture products to gain maximum market share.
Through drawing experiences, teamwork and team skills
have become more valuable for quick response to the
opportunities within new marketplace.
• 6. Employee-employer relationship: In the 21st century,
there is also a change in the relationship between
employee and employer. Organization work without
centralization and operate in the flexible environment.
Employee’s work under friendly environment. In the global
competitive environment, employees are loyal to
organization and work with full interest. They easily
communicate with the top management about new
strategies and trends of global market. Through exchange
of ideas, they come to end with new innovative thing
which are really helpful for achieving organizational goal.
• 7. Reward & compensation system: In industrial era,
employees worked under centralized environment. Top
management was responsible for decision making and no
one was involved in it. Employees worked under the
instructions of managers and there was no proper
compensation system for employees. Organization paid them
daily on the number of units produced. Now there is proper
compensation system for employees and organization also
give them rewards for their efforts in completing task
assigned to them. Monthly bonuses are also given to them
Through reward system, employees work with full interest and
are helpful in achieving the organizational goal.
8. Managing the cost: Due to flexible working system, the
cost of organization is decreased because technical
machines work efficiently and effectively for production of
products Automation provides flexibility in environment
which is helpful for maintaining the cost. Chances of error in
the production process are also reduced.
• Some of the major happenings in the Human Resource
Management field today are attributed to the following
aspects.
1. Knowledge Management

• This concept has now been part of functions

of any business specifically human resource
management t can be utilized in arriving at
organizational decision
• During the last decade, the business world began to view
and use knowledge as a weapon for competitive advantage.
It was then the concept of knowledge management (KM)
gained popularity. However, in the 21st century, Knowledge
and by extension, knowledge management has been an
electromotive force for social, economic and educational
advancement to any nation (Igbinovia & Ikenwe, 2018),
Knowledge management is defined as any process or
practice of creating, acquiring, capturing, sharing and using
knowledge., wherever it resides, to enhance learning and
performance in organizations (Diploma in Human Resource
Management Coursebook 2017).
Knowledge Management Processes (KMP)
• Knowledge management processes are series of
activities an organization put in place for the facilitation
and use of knowledge. The management of knowledge is
a continuous process in which one form of knowledge is
transformed into the other. Knowledge management
processes support the conversion of tacit knowledge to
explicit knowledge and explicit to tacit. May scholars have
identified different knowledge management processes
(Igbinovia & Ikenwe,2018).
Acquisition in knowledge management
• deals primarily with tacit knowledge although it also
acquiries explicit knowledge. The tacit knowledge can be
transferred to explicit knowledge through externalation,
that is, the tacit knowledge is converted to recorded form,
in document or databases for reference by others
(alegbeleye 2010). However, before knowledge is
acquired, it is essential to identify the knowledge an
organization has and needs to achieve its objective which
is called “knowledge identification”.
Knowledge generation
• focuses on knowledge creation for exploration and
knowledge exploitation. Knowledge ca be generated
through:
• A. Writing both formal and informal
• b. Research : the whole essence of research (which is a
systematic investigation) is to generate knowledge
• c. Shared problem solving: This can be reffered to as
brainstorming. This has t do with knowledge persons in a
particulars area coming together to share their view aout
a problem in order to proffer solution.
 2. Knowledge Capture
• Knowledge capturing is another important aspect or
component of knowledge management in knowledge-based
organizations. Knowledge capturing involves:
• a. Technology: Several technologies exist for facilitating the
creation and sharing of knowledge. Information technology is a
useful instrument in knowledge management and use for
effective services in an organization.
• B. Knowledge Mapping: Knowledge mapping is a method used
to identify where knowledge resides within a organization.
Knowledge mapping requires the techniques of questionnaire,
interview and sometimes observation.
3. Knowledge organization
• The knowledge acquired generated or created needs to
be properly organization for easy access and retrieval
which is the essence of organization of knowledge.
Librarians as information practitioners resources through
catalogouing and classification
 4. Knowledge Storage
• The knowledge created and acquired needs to be
properly stored and preserved for subsequent access and
use, and for the sake of posterity.
THANK
YOU!!!