Emerging Trends in Human Resource Management

chillibreeze writer Rituparna Banerjee 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. Some of the recent trends that are being observed are as follows:

Looking for more info Read our more comprehensive report of the same at: India-Reports

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. Six- sigma 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.

NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country.

Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse. Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. Managers need to be protected from career development risks, re-entry problems and culture shock. To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information. Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions. In many European countries - Germany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized.

HR Managers should do the following things to ensure success

Use workforce skills and abilities in order to exploit environmental opportunities and neutralize threats. Employ innovative reward plans that recognize employee contributions and grant enhancements. Indulge in continuous quality improvement through TQM and HR contributions like training, development, counseling, etc Utilize people with distinctive capabilities to create unsurpassed competence in an area, e.g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc. Decentralize operations and rely on self-managed teams to deliver goods in difficult times e.g. Motorola is famous for short product development cycles. It has quickly commercialized ideas from its research labs. Lay off workers in a smooth way explaining facts to unions, workers and other affected groups e.g. IBM , Kodak, Xerox, etc.

HR Managers today are focusing attention on the followinga) Policies- HR policies based on trust, openness, equity and consensus. b) Motivation- Create conditions in which people are willing to work with zeal, initiative and enthusiasm; make people feel like winners. c) Relations- Fair treatment of people and prompt redress of grievances would pave the way for healthy work-place relations. d) Change agent- Prepare workers to accept technological changes by clarifying doubts. e) Quality Consciousness- Commitment to quality in all aspects of personnel administration will ensure success. Due to the new trends in HR, in a nutshell the HR manager should treat people as resources, reward them equitably, and integrate their aspirations with corporate goals through suitable HR policies.

Business Strategy and HRM Resource-based theory would have it that, firms are collections of capabilities which must be matched with market needs. This is central to strategic management. The strategy of a firm is a match between what it can do (internal capabilities) and external relationships. Added value (a measure of the business's success) is created by competitive advantage based on distinctive capabilities. Few capabilities are distinctive, but effective systems of regulation and relationships within the firm that are based on mutual trust and committment is one area.

For personnel/HRM specialists to be valued members of the strategic manager group they must be able to offer expertise - value added - which will contribute to the development and implementation of the firm's strategic policies and programmes. If they contribute such expertise and if this is valued by the senior management of a firm - then personnel will be accepted into the strategic decision-making circle. This essentially is a membership and power/influence issue. What does the firm need?

the right people in the right place at the right time at the right cost.

The labour factor of production is a cost and the commercial, market-forces argument is that it must give value for money. Many propositions may now stem from such a position.

the firm grows and prospers with the people it has or it can get hold of these at the time it needs them the behaviour of its members should not jeopardy the firm. Individuality is important but loose, unco-ordinated collections of individuals who just go their own way and do not support each other or demonstrate trust and loyalty - are unlike to work so well people in the organisation must want to be members and want to perform for it with effort and creative ingenuity. The organisation in return (part of the social and economic exchange) needs to value its members are their contribution. If it does not demonstrate such value - materially and socially then members will become detached.

Strategy requires long-term goals, broad programmes and allocations designed to achieve these. Each programme represents a policy for action. Funds, assets and people must be allocated or assigned to programmes. Of course every time we employ someone - this has to be resourced. Strategic plans are

typically informed by the organisation's mission and purposes - what those who own the business want to achieve. Owners can be sole proprietors, partners, majority shareholders, instititional shareholders, small shareholders. The stakeholder notion is important - for suppliers, collaborating firms, government, the local community and of course employees - are all stakeholders. developed in response to the external and internal influences that the organisation finds itself subject to.

Exercise So what then are examples of human resource strategies and programmes?

containment of trade union influence? recruiting the best keeping costs down. Becoming flexible and lean but empowering our crew with the best training, rewards and equipment to do the job developing a culture within the organisation which enables each member to contribute creatively, competitively with their best effort and ability becoming a learning organisation training everyone to be competent in their present job at a level of mastery and to extend beyond this for continued occupational development - the future (but not so far intothe future that the firm wll never be able to take advantage of it!) down-sizing. Changing the relationship between the organisation and those which provide it with services - buy in rather than employ our own linking rewards to measured performances staying clear of the pitfalls offered by employment law. being an equal opportunities employer through our behaviour rather than imposed and expensive systems of control

make sure that when we employ people we do so in ways that are systematic, reliable, cost effective and properly administered to be seen by our employees and others to be a good employer

How do you feel about these statements? Which ones are straight-forward? Which ones are contradictory?
HRM Contradictions and Dilemmas Many influences are outside the control of an organisation's managers. Government may pass laws. A firm's products and services may be under pressure from international competition. The industry may be in decline. The economy may be in turmoil. Key staff may leave. Responses are however needed to meet these contingencies. The organisation has to cope/adapt to opportunites and threats if it is to retain its position and prosper. Thus we can speak of contingency management.

Assignment How much of personnel management/HRM involves risk management at 1. the strategic level 2. the operational level?

HRM - a secondary consideration? The business strategies which take precedence when boards of companies meet are:

finance company competitiveness and positioning product and market development

Matters relating to the labour force may be lower down on the agenda rather than being front running items - unless they are cost cutting items. Yet managers may endeavour to define HRM strategies particularly where there is a belief that investment in the quality and enthusiasm of the work force will add to competitiveness, quality and overall business performance.
The Form of HRM Strategies - are represented by management's committments to objectives, policies and practices relating to the people they employ. The strategies (see Mintzberg for discussion of "strategy") may be

formally defined or informal unwritten and exemplified by how "the management" speak and act. volatile, subject to individual whim set aside when the going gets rough or a new fashion emerges.

If HRM strategy is defined and documented this is likely to stem from deliberate analysis and a desire to make such policies/programmes integral to the realisation of goals defined by other strategies - financial, production, customer and marketing etc. With strong articulation of developmental, employment strategies the organisation emphasises that without these, the achievement of business objectives across all its strategic programmes may be vulnerable.

Assignment

If HRM specialists provide services to the organisation in each of the following areas

staff planning recruitment training and development terms and conditions of employment, labour law administration and support rewards policy management industrial relations services employee welfare and support services

What are the strategic contributions of each of these services? Give examples.

HRM and the Unitary Perspective HRM committments are evident in recruitment methods, employee induction, boss-subordinate and team relationships, reward methods, training, job mentoring and concern for competence development and sharing of values. This glowing picture reflects the propositions of McGregor when he defined his Theory Y model of managerial action (integration of the needs of the individual with the needs of the organisation). The sentiments are clearly

unitary albeit that management must have the policies and practices in place that minimise the potential that exists for disruption and conflict (pluralism). The HRM organisation is represented as a place of collaboration and harmony, team-working and joint commitment. Everybody is loyal, accepting of managerial vision and direction and working together to achieve the same ends. even though a plurality of interests may show itself, managerial prerogative means that managers (the representatives of the owners) take charge and make the decisions. So unity (or containment) must be worked for and invested in. Management's right to manage requires professionalism, sensitivity to the needs of others a committment to ethical, socially proper behaviour. Employees need to be invested in, informed, communicated with, consulted and morally involved in the business (empowered). They are not just members who are pushed into doing something they do not want to do. a far-sighted employer will invest to enhance the employer-employee relationship. Employees want rewards - material and non-material - that satisfy.

These HRM propositions may cast light on decision-making, the characteristics of HRM policies and practice and their contradictions.
The Separated Employer Of course an employer can have separated, possibly exploitative relationships with employees. A hire and fire approach is typical where an employer only employs casuals or treats employees as horsepower showing no interest in them as people. Such an employer might regard their obligation to employees as satisfied once they are paid (a cash nexus) and when minimum necessary conditions are provided and no more.

Assignment In the light of HRM propositions, discuss the trend for keeping personnel services to a bare minimum and out-sourcing some services. What are the pros and cons of employing someone as an in-house resource as opposed to buying in the same services.

HRM Statements and Lip-service Management's actions may belie what they say their HRM strategy is. The danger is that declarations about human resource intentions are only lip-service statements. Employees may see a disparity between what is said and managerial action/ inaction. Compare programmes promoting training and a participative company culture when in the same breath redundancies are anticipated associated with down-sizing.

Strategy and Tactics, Maintenance and Improvement Strategic management involves ambiguity, the non-routine, complexity, organisation wide implications and significant rather than small-scale change. Circumstances are driven by environmental pressure, imposed changes and perceived positions. Strategic needs must be analysed, objectives agreed and translated into everyday programmes which devolve to line managers for implementation. They must be communicated, resourced and controlled. Information systems are needed with staff involved and committed. Yet if market turbulence and competitive forces are so intense, policy and programme forming and reforming can be so rapid as to make tactical and strategic levels confused. Having good feedback about progress of tactical (operational) programmes is essential. Programme results must be evaluated and components adjusted. As time frames become shorter, plans may only be half completed before a rehash or U-turn is needed. So the best strategies may be outlines only with objectives and specific programmes changing to fit operational circumstances. A strategy (the game plan) will involve particular tactics - their form mostly represented by operational programmes and projects - DOING. Departmental arrangements and programmes of

work are manifestation of tactics. Each business unit has its budget i.e. allocations of money and staff organised to secure day-by-day results. Tactics can be maintenance tactics (keep the thing going) or improvement tactics. Maintenance - so that performance does not slide/atrophy - requires organising and resourcing. An operational unit may need to address a number of projects (tactics for improvement). A sales campaign, market research project, a training course or quality control programme are examples. A new operational unit may need to be established. Its project or projects represent tactics that contribute to the strategic objectives of the business. One such programme to drive both maintenance (market entry strategy) and improvement (orderwinning strategy) might be to secure ISO 9000 accreditation.
The ISO 9000 Organisation In a smaller organisation, business and HRM strategy may be indistinguishable however for large and small organisations a commitment to quality may be defined by the corporate missionand implemented via ISO 9000 accreditation (the tactical programme).

Other tactics may be in support: employee training and communications, marketing promotions and investment in better working methods and equipment. The organisation may forego shortterm profits and even seek further capital funds to secure ISO accreditation The ISO requirements may spread through the firm as policy, procedure and controlling mechanisms. Even say-to day operations in the personnel section may be defined by ISO 9000 specifications of standards and procedures e.g. governing wage administration, delivery of training services, excellence in recruiting or staff communication and consultation.
HRM strategy

An HRM strategy pertains to the means as to how to implement the specific functions of Human Resource Management. An organization's HR function may possess recruitment and selection policies, disciplinary procedures, reward/recognition policies, an HR plan, or learning and development policies, however all of these functional areas of HRM need to be aligned and correlated, in order to correspond with the overall business strategy. An HRM strategy thus is an overall plan, concerning the implementation of specific HRM functional areas. An HRM strategy typically consists of the following factors:

"Best fit" and "best practice" meaning that there is correlation between the HRM strategy and the overall corporate strategy. As HRM as a field seeks to manage human resources in order to achieve properly organizational goals, an organization's HRM strategy seeks to accomplish such management by applying a firm's personnel needs with the goals/objectives of the organisation. As an example, a firm selling cars could have a corporate strategy of increasing car sales by 10% over a five year period. Accordingly, the HRM strategy would seek to facilitate how exactly to manage personnel in order to achieve the 10% figure. Specific HRM functions, such as

recruitment and selection, reward/recognition, an HR plan, or learning and development policies, would be tailored to achieve the corporate objectives.

Close co-operation (at least in theory) between HR and the top/senior management, in the development of the corporate strategy. Theoretically, a senior HR representative should be present when an organization's corporate objectives are devised. This is so, since it is a firm's personnel , or provide a service. The personnel's proper management is vital in the firm being successful, or even existing as a going concern. Thus, HR can be seen as one of the critical departments within the functional area of an organization. Continual monitoring of the strategy, via employee feedback, surveys, etc.

The implementation of an HR strategy is not always required, and may depend on a number of factors, namely the size of the firm, the organizational culture within the firm or the industry that the firm operates in and also the people in the firm. An HRM strategy can be divided, in general, into two facets the people strategy and the HR functional strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful correlation of HRM policies/actions to attain the goals laid down in the corporate strategy. The HR functional strategy relates to the policies employed within the HR functional area itself, regarding the management of persons internal to it, to ensure its own departmental goals are met.