You are on page 1of 15

113

Future Trends and Technology Impacts in Human Resource Management Dr. Mark A. Revels, Professor Western Kentucky University Master Sergeant Jeffery C. Kane Northcentral University

Abstract Future trends in Human Resource Management will be dictated by eight critical areas. The eight areas work individually and jointly and consist of the following; (a) historical trends, (b) perceptions of change, (c) future trends, (d) recruiting and retaining quality employees, (e) requirements for future management and leadership, (f) composition of tomorrow workforce, (g) consideration for business growth, and (h) strategies for continuous improvement. As management prepares itself and organization for the future, the key to success will be to look to the past for proven principles to effectively lead organizations. The past provides the clues to address future challenges and trends that organizations will encounter and management must use the past as a gauge to test the validity of these challenges and trends. Management while preparing for the future must be keenly aware of the labor force and its composition. Due to generational shifts and influx of (a) minorities, (b) women and (c) immigrants to the workforce, management will have to address the capabilities and limitations of the workforce to ensure organizational success. Management must also conduct a self assessment to ensure they meet the requirements necessary of them to lead organizations, employees and grow a business in the future while maintaining a productive environment. Lastly, in order to capitalize on effectiveness and efficiency, management will need to assess their organizations status of continuous improvement and a manner in which to move forward. Managements focus on the eight critical areas will help to illuminate a path for future success. Future Trends in Human Resource Management The evolution of management theory is a continuous process based on the lessons learned from the past. Through the lessons of the past, present day managers have the benefit of better preparation in which to lead in the global market. As innovation and technology drive the global market, managers must be able to synchronize individual and organizations goals in order to achieve success. A critical component to this success is the engagement of employees, or as Drucker (2006) stated, the key to greatness is to look for peoples potential and spend time developing it (p. 152). As managers navigate their organizations in the global market, they must remain keenly aware of the opportunities and challenges that lie ahead. Through the vigilance of management, organizations will be prepared to embrace innovation, advances in technology and competition in the competitive global market.

114
Historical Evolution of Management The future of management theory has evolved from the contributions and lessons learned from the past. Management theory has developed over the course of the last several thousand years across a variety of cultures and continents. Each notable figure and culture bestowed a breadth of knowledge that was continually improved upon to provide what we currently know as management theory (Wren, 2005). Management has been a part of every individuals life in some form since time immemorial; however, it did not gain credence until the contributions of Hammurabi. The basis of Hammurabis contributions is centered on his edict of a code of laws. The code outlined 282 laws which governed business dealings, personal behavior, interpersonal relations, punishments, and a host of other societal matters (Wren, 2005, p. 13-14). Through the code of laws issued, a semblance of order was established to shape a society and provide ideas for future growth of management theory. The foundations which were established by Hammurabi enabled the expansion of management theory not only in his society but in others as well. From the contributions of Hammurabi arose the new ideas from great Chinese thinkers Sun Tzu and Confucius. Sun Tzu, a military strategist, imparting the importance of (a) divisions, (b) established hierarchy, (c) deliberately planned operations, and (d) effective communication (Wren, 2005). Confucius added the ideas of effective human resource management through the capable recruiting and advancement of employees based on merit and proven ability (Wren). The contributions of Sun Tzu and Confucius helped to further build upon Hammurabis contributions and transcended a cultural divide to impact Egyptian management theories. The input of the Egyptians is based on supervisory span of control. The Egyptians, famous for their building prowess recognized the fact that one person possessed only a limited ability to effectively control a group of people. Armed with this understanding, the Egyptians proceeded to clearly identify supervisors by their manner of dress and instituted the rule of ten (Wren, 2005, p. 16). This rule would latter prove useful in the Roman Empire in their business and military endeavors thus proving the validity of this management technique. As the cultures continued to develop and time passed, management theories evolved at a parallel rate. The great thinkers of Greece; Socrates, Plato, Aristotle and Xenophon contributed the ideas of (a) organizational structure, (b) diversity, (c) division of labor, and (d) delegation of authority (Wren, 2005). However, thought without action can only secure the status of a society for so long and Greece eventually fell to Rome. The hardy stock of the Roman Empire capitalized upon thought and action and nearly conquered the world. The Romans, by way of military force, capitalized on the Egyptian rule of ten and developed (a) elaborate transportation systems, (b) foreign trade, (c) joint-stock companies, and (d) specialization of labor (Wren, 2005). Romes ability to use their military enabled the further expansion of management evolution by combining precepts of various cultures with their own. The uniting of various management principles set in motion the contributions of the Middle Ages. From the fall of the Roman Empire to the beginning of industrialization in Europe, management theory was further developed based on lessons from the past and the situation faced. The Catholic Church developed the necessity of a hierarchy and authority within organizations. The Protestant and Liberty ethics focused on the individual, which has served as a precursor to human resource management. The view of the Market ethic shifted focus from individual rights to a management focus and what a manger needed to improve their abilities. Market ethic stressed the importance of management creativity and innovation as it related to improving their

115
organization (Wren, 2005). The close of the Middle Ages ushered in the first Industrial Revolution, which provided management the opportunity to look to the past for proven methods to apply to their current situation. The first Industrial Revolution which lasted 100 years began in 1760 and introduced advances in (a) factory systems, (b) industry, (c) technology, and (d) management innovation initially in Europe (Wren, 2005). However, issues arose in regards to labor management, working conditions and efficiency of production. To help counter these issues thinkers like Owen, Babbage, Ure and Dupin presented theories to help in the advancement of industry and quell labor discontent. Their contributions also helped in the understanding of organizational and human resource management. Simultaneously in the United States (US), industrialization took hold and refinement to management theory occurred based on the lessons from Europe. The second Industrial Revolution which mainly occurred in the US happened between 1870 and 1914 (Mokyr, 1998). During this span of 44 years, industry and management theory progressed rapidly which allowed the US to become a worldwide industrial leader. Contributions during this time resulted from the likes of McCallum who advocated organizational specificity and information management and Andrew Carnegie who promoted performance measurement, cost controls and lines of authority (Wren, 2005). This period of massive industrial growth and management theory refinement set the conditions for the 20th century management revolution. From 1890 until 2000, management theory made its largest and most documented advances. It was during these 110 years in which (a) scientific, (b) administrative, (c) behavioral, (d) management science, and (e) organizational environmental theories came to fruition (Evolution of Management Theory, 2009). Scientific management defined the relationship between people and tasks; it was determined through scientific means as to the best way to increase efficiency. Administrative management described the manner in which to create a more efficient organizational structure. Behavioral management, through its many experiments illustrated the importance of the relationship between management and employees. Management science, akin to scientific management, depicted the importance of managements abilities to leverage quantitative techniques to best use organizational resources. Lastly, organizational environment management encompassed external factors that set the condition for operations outside of the organization (Evolution of Management Theory, 2009). The overview of the evolution of management theory and its various applications are important to recognize. The recognition of the management evolution illustrates how proven principles can stand the test of time, cross cultural boundaries thus not receiving the fad moniker. Looking at the past has provided managers of today the opportunity to improve their current situation at a faster rate than previously seen. Within the last 100 years, documentation of management theory has proved invaluable, resulting in an even greater emergence of more effective theories based on the past. As management continues to evolve, managers and management thinkers will continue to look to the past for insight to provide the best manner in which to move forward. The study of the past is critical to acknowledge as it lends credence to proven practices and gives rise to the new perceptions of management theory and its change in the future. Perceptions of Change As management theory has evolved, the past has served as a precursor to the future. Based on the past, the perception of change in the future will involve five key areas. These areas are (a) innovation, (b) technology, (c) global market competition, (d) labor relations and (e) opportunities for continuous improvement (Cetron & Davies, 2005). These five areas will work

116
independently as well as collectively in determining the perceptions of management change in the future. The perception of change regarding innovation is the most critical component to the evolution of management. Just as the past has proved, change cannot occur without innovation in organizations which spurs the change to management theory. This innovation will mainly result in organizations which are information based and pass information more effectively via technological means with a further decentralization of authority (Cetron & Davies, 2005). Information based organizations are not new as history has shown, the likes of McCallum and Barnard stressed the need for the efficient transfer of information both internal and external of the organization (Wren, 2005). As the future of management evolves, there will be a further decentralization of authority in which individuals and smaller teams will shoulder more responsibility. Due to the change in the dynamic of the work force and restructuring of organizations, Wren (2005) paraphrasing Barnard stated that the determination of authority remains with the individual (p. 318) and will help to shape perceptions of change and help to shape future organizations. The innovation that will occur will be closely tied to the advancements in technology which will work in unison to produce the future trends of management. Progression in innovation will lead to an even greater transformation of technology as change occurs. The ability of the internet to effectively link organizations and societies simultaneously, throughout the world, will result in an even greater transparency of individual and organizational conduct (Heskett, 2008). This linking of organizations and societies will allow for a more fluid flow of information which will quicken with each new generation (Cetron & Davies, 2005). Technological advancement will also support the innovation of information transfer and decentralization of authority as advocated by McCallum and Barnard. The global market will be marked by an increase in competition as well as organizational cooperation based on the advancement of technology (Heskett, 2005). Apart from the many potential benefits a competitive and cooperative global market presents, management must be aware of the risks as well. As organizations enter new or underdeveloped areas, a greater risk is posed due to (a) unstable governments, (b) currency fluctuation, (c) infrastructure and (d) cultural mores (Cetron & Davies, 2005). However, the underlying threat which has continued to grow more pervasive is the threat of terrorism and its implications (Heskett, 2005). The advancement in the global market and presented threats are analogous to the opportunities and threats of the Roman Empire (Wren, 2005). As history proves, perseverance and innovation will result in success for those willing to take the risks within the global market. Labor relations and human resource management is an ever present issues that must be addressed in order for organizations to succeed. Change will continue to occur in the ideas of work and the manner in which it is performed as well as obtaining the most efficient labor force (Heskett, 2008). As progression occurs in management theory it will necessitate the increase in training and education of labor in order to remain current on specified duties and increase their professional knowledge base (Cetron & Davies, 2005). The idea of education of management and the labor force is reminiscent of the work of Dupin and Ure approximately 150 years ago (Wren, 2005). As labor relations and human resource management continue to evolve it is important to keep labor in the forefront of the decision making process as labor ultimately contributes to organization success or failure. The final factor to consider in determining change rests in the theory of continuous improvement. As organizational structures become smaller and more decentralized, the

117
necessity of effective and efficient work will remain paramount. Strategies such as Lean, Six Sigma, and Total Quality Management (TQM) will continue to evolve and be improved upon (Alukal, 2006). The benefit of these continuous improvement strategies is based in efficient work, quality products and to engage the workforce. These same attributes were first recognized by Taylor and his application of scientific management (Wren, 2005). Continuous improvement strategies must continue forward grounded in proven principles and remain adaptive to the current situation. The perception of future change is grounded in (a) innovation, (b) technology, (c) global market competition, (d) labor relations and (e) opportunities for continuous improvement will facilitate the advancement of organizations and management change. Looking to the past will provide future management theorists and practitioners the best opportunity for success and management evolution. Based on these perceptions of change, new trends in management theory will occur which will be history based but applicable to the given time. Trends in Management Theory The future trends in management theory that will occur will be based in management theories and are focused on (a) information and knowledge flow, (b) employee engagement, and (c) innovation (Levinson, 2007). As organizations expand across the global market and become more decentralized, there will be a greater need for engaged employees who are innovative and able to seamlessly transfer knowledge and information. The critical element of employee engagement through the use of management theories and techniques must be recognized to further the advancement of management in the future. One future trend in management theory will be an increase in the application of Knowledge Management. Knowledge Management is the process through which organizations generate value from their intellectual and knowledge based assets (Levinson, 2007, p. 1). As advances in technology lead to a greater exchange of information internal and external of an organization, preparations must be addressed in order to best manage the exchange of information and knowledge vital to an organization. Management must also attend to the role of employees within this exchange. The recognition of managing knowledge resources can trace it roots to the like of the Egyptians, Pacioli and McCallum who advocated rudimentary forms of knowledge and information exchange to better serve organizations (Wren, 2005). The application of Knowledge Management is critical to the relevance of Theory Z and its employment. As knowledge and information lie with the employees of an organization, knowledge management in conjunction with the application of Theory Z must be utilized in order to achieve optimal results. Theory Z is a cross cultural combination of American and Japanese management philosophies melded together which stresses the importance of individualism within a group context. Theory Z calls for a humanistic style approach to management that would increase (a) employee engagement, (b) empowerment, and (c) higher quality products (Theory Z, 2006). The basis of Theory Z can be found in the work of McGregor and his origination of Theories X and Y (Wren, 2005). Through there are mixed opinions as to the benefits of Theory Z application, the tenets of a more humanistic approach to employee empowerment within in a group setting is essential as organizations become more decentralized. Working in unison with knowledge management and Theory Z, design thinking will emerge as a viable management theory in which to spur future innovation. Design thinking, more art than science, is a process of thinking which generates transformative change. The process involves a collective focus on a problem or issue, information and data collection and the determination of

118
the best course of action (Hyer, 2006). Design thinking results in a future orientated approach to innovation, an increase in efficiency and full employee engagement (Joni, 2010). Design thinking is very similar to scientific management in its approach to gaining new insights on products or processes through the collection of data and information in an attempt to further improve efficiency (Wren, 2005). Future trends in management theory is a vast realm in which only proven principles of the past joined with modern applications will endure. The theories of knowledge management, Theory Z and design thinking are essential for innovation within an organization by means of keeping employees fully engaged. As management theory embraces future opportunities, managers must be prepared for challenges as well. One such management challenge is the recruiting and retaining of quality employees. Recruiting Quality Employees The search for quality employees has always been an area in which management has focused a considerable amount of energy. As management prepares to recruit employees for future employment, two factors must be considered. These factors are workforce composition and organizational environment. By addressing these factors, management will better serve their employees and organization and set the conditions for successful future operations. The first challenge that management must face in the future regarding recruitment of quality employees is the workforce consisting of four generations of workers. The four generations of workers are based on the years in which they were born and are classified as; (a) traditional (before 1946), (b) baby boomers (1946-1960), (c) generation x (1961-1979), and (d) generation y (1980 and after) (Simn, 2007). A generation is distinguished by age, they are also separated by (a) experience, (b) values, (c) beliefs, (d) social attitudes, (e) capabilities, and (f) limitations. Management must be aware of the impact these factors of separation have on organizations, and how it shapes the recruitment process. Additionally, management must work in unison with human resources in order to best outline the guidance for recruiting which will better serve the decision making process. Most important is the acknowledgement of the employees potential in the desired position and their ability to effectively operate within the work environment and social climate (Westerman & Yamamura, 2007). Essential to the process of recruiting quality employees, is the determination of their ability to perform and excel within the organizational environment and social climate. Employees must be able to cope with change, innovation and technological applications during their tenure while remaining engaged, creative and innovative. Since the work environment and social climate impact employee outlook and performance, it is critical to ensure the potential hire is a correct match for the position and organization (Westerman & Yamamura, 2007). Conversely, management must ensure that the environment offered is conducive to achieving results to gain the most potential out of employees. The connection of workforce generational gaps and operating environment within an organization will present challenges to management in the future. Therefore it is incumbent on management to look to the past for clues as to the best manner in which to successfully meet these challenges. The tenets of recruiting quality employees can be traced back to prominent figures such as Owen, Taylor, Fayol and Follett (Wren, 2005). Prior to the official declaration of human resources management, these management thinkers instilled the importance of quality recruiting as well as matching employees to jobs. The history of management defines the importance of

119
recruiting quality employees as organizations move into the future. Once quality employees are recruited, management must then be able to meet the challenge of retaining them. Retaining Quality Employees In the future, management will face a myriad of challenges, one of which is the retaining of quality employees. In order to mitigate the associated retention challenges, management must remain proactive and institute organizational plans which will best serve the employees making this challenge negligible. Proactive organizational plans that management must institute include; (a) personal and professional development, (b) a nurturing environment that produces positive relationships, (c) creativity, (d) innovation, (e) self-worth and (f) fulfillment (Jaffee, 2001). By remaining proactive and using insights from the past, management will be better suited to provide an organizational environment in which employees are happy, productive and virtually void of turnover. The establishment of personal and professional development programs within an organization is critical to build a positive organizational environment in which to retain quality employees. Management must be willing to make an investment in the human capital of their organizations in order to help facilitate future growth. Jaffee (2001) states that lifelong learning requires commitment and investment not only on the part of the provider of educational opportunities, but also on the part of the student (p. 3). The mutually valuable investment of learning is beneficial to both parties and defines the commitment between the employer and employee thus strengthening the retention bond. CSC, a global organization, expresses their investment in education by stating CSC is dedicated to providing employees with opportunities to develop the knowledge and skills necessary to grow and succeed in their career. Our highly skilled, enthusiastic employees work collaboratively to deliver value to customers around the world (CSC, 2010, p. 1). The multifaceted approach of CSC involves (a) online courses, (b) technical certifications, (c) classroom instruction, (d) special assignments, (e) mentorship, and (f) coaching which provide employees with an array of options and opportunities (CSC). Investment by management into the education and development of human capital will provide more engaged employees and a higher return on organizational investment in the future. Acknowledging the importance of a positive organizational environment in which employees thrive is another critical element in the process of retaining quality employees. One facet of a positive organizational environment is the types of relationships built within an organization and the affects they have on others. The environment in which positive relationships should be built is one of (a) harmony, (b) trust and respect coupled with active listening, (c) genuine concern for others, (d) collaborative work projects, and (e) team building exercises (Solish, 2006). The setting of this environment will enable the building of positive relationships, Heap (2001) states the health of people depends on what happens in organizations and what they do (p. 1) therefore; management must ensure the correct environment to keep employees happy and healthy. Another facet to a positive work environment for the employee is time, time is fleeting and management must ensure that it is managed properly. In order to bolster positive work environment, management must look to incentives for time off and flexible work schedules. By providing these opportunities, employees will have the ability to pursue outside of work endeavors to assist in the balance of individuals lives and make them more productive while at work (Business Week, 2009). Managements ability to provide a positive environment in which

120
employees time is recognized and honored, will contribute to a more productive and efficient organization. The last facet in managements quest for developing a positive organization is the commitment to identify the value of each employees self worth. Carmichael (2010) asserts that in order for employees self worth to actualize within an organization, management must provide levels of expectancy, parameters and guidelines for acceptable and secure functioning, and unlimited potential for creative growth (p. 1). By enacting these strategies, management will better serve their employees thus rendering them more engaged and productive. As management prepares for the future, they must look to the past for insights and proven principles of employee retention. Management thinkers and theorists like Ure and Dupin stressed the need for education of employees to further expand their skills, and advocated education for both management and employees resulting in a more engaged and productive workforce (Wren, 2005). With organizations changing in the future, management and leadership must meet certain requirements to effectively lead these organizations. Future Requirements for Management and Leadership In order for management to effectively lead an organization into the future, they must embody certain requirements to effectively lead organizations and use lessons from the past as a guide. To facilitate the transition into the future, management and leadership must be adept in three functioning areas; (a) technological adaptation, (b) embodiment of cultural diversity, and (c) corporate social responsibility (CSR). The ability of management and leadership to operate in these functioning areas will dictate the success or failure of their organizations. Adaptation to the advances in technology is a critical requirement for managers and leaders to lead organizations in the future. The understanding of technology and its effects on organizational systems and processes is critical. Management must be able to display the assimilation of both tacit and explicit knowledge of technology in order to properly lead their organizations (Beu & Leonard, 2004). The assimilation and recognition of technological innovations and advances and their implications on organizations will help management to be proactive in their future preparations. The requirement for management and leadership is to motivate organizations to accept and welcome new advances and recognize their potential benefits, thus staying ahead of the competition. Another requirement of management and leadership in the future is the understanding and integration of cultural diversity within organizations. The integration of diversity is critical in that 85% of the new entrants into the workforce in the next decade will be women, minorities and immigrants (Gorham, 2010, p. 1). The essence of integration is the need for management and leadership to recognize, respect and capitalize on the different backgrounds in our society in terms of race, ethnicity and gender (p. 1). As a result, a more dynamic, diverse and realistic organization will develop which will be better suited to excel in global markets. The last requirement that management and leadership must embody in the future is the application of CSR within their organizations. Management and leadership of organizations have varying opinions as to the definition and application of CSR. Ideally, future management will be best suited to embrace the view of Carroll (1979) who stated that the social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations (p. 500). By applying Carrolls four dimensional approaches, a positive example will be set in which all stakeholders of an organization will

121
benefit. The application of Carrolls view of CSR coupled with strict oversight and transparency will ensure positive results for organizations. As management and leadership face the necessary requirements to lead organizations into the future, they must also look to the past for proven practices in which to capitalize upon. Technological adaptation has occurred since the beginning of civilization, it was only those who were proactive and embraced these innovations that found success and continued to thrive. Cultural diversity has been a part of organizational composition since trade occurred in foreign lands and transportation of goods began. The history of CSR is relatively shorter and gained momentum from the likes of Owen and Lowell; with their understanding and applications of socially responsible principles have proved successful for many organizations since (Wren, 2005). The future of management and leadership contains many challenges and opportunities, by understanding and applying the three functional areas, organizations will thrive. Composition of Tomorrows Workforce The composition of tomorrows workforce will differ from that of today due to the retirement of traditional workers; those born prior to 1946. The exit of a generation from the workforce will open new opportunities for the X and Y generations as well as set the conditions of the entrance of generation Z into the workforce. Changes in the dynamic of the workforce will result in a technologically driven workforce that is able to process more information than previous generations (Trunk, 2009). As organizations progress into the future, management must be concerned with the composition and abilities of tomorrows workforce. The workforce of tomorrow will be comprised of baby boomers and generations X, Y, and Z. Currently, 45 percent of the workforce is comprised of generations X and Y, and will increase as traditional workers retire (Westerman & Yamamura, 2007). The exit of traditional workers will help to usher in the entrance of generation Z workers thereby making generation X and Y the largest segment. Apart from generational gaps in the workforce, demographics will experience as noticeable shift as well resulting in changes to age, diversity and gender (Hewitt Associates, 2010). As management leads organizations into the future they must keep a watchful on the composition of the workforce and remain engaged with the employees to create a positive organizational climate. As the generations shift within the workforce and composition changes, management must be able to effectively and efficiency mange the diversity of attitudes, ethics and beliefs of four generations. As the four generations co-mingle in the workforce, management must recognize the signs of discord due to generational misunderstandings which have the potential to severely impact organizational climate and productivity (Westerman & Yamamura, 2007). Management must also look at organizational policies and procedures to ensure they are meeting the needs of their employees across generational boundaries. Additionally, they must look to incentives and retention programs to ensure they do not lose quality employees (Hewitt Associates, 2010). In order to mitigate the risks of generational differences, management must be engaged with employees and look for signal to avert potential problems. The composition of tomorrows workforce will undergo numerous changes which management must be prepared to meet. To help alleviate this stress, the past offers clues for management in the shifting dynamic of the workforce. The shift in composition due to rapid advances in technology is akin to the shift from the farm to the factory with the advent of the Industrial Revolution (Wren, 2005). Composition of tomorrows workforce is just one of the many

122
concerns of management in the future, the realignment of processes, policies and personnel procedures must be addressed as well. Growing a Business in the Future The key to success for future growth of business rests in the ability of management to spur new ideas, refine processes, policies and procedures and provide a positive work environment. In order to help facilitate this growth, management must have a keen understanding of all facets of the business. A keen understanding of ones business coupled with providing a positive work environment that invokes innovation, creativity and harmony will allow business to grow. A manager focusing on the growth of their business must have tacit and explicit knowledge of all processes within their organization, in order to fully understand the scope of capabilities and limitations (Beu & Leonard, 2004). With knowledge gained, management must then analyze the current processes being executed to determine if they meet the needs of future growth, customers and the organization. Once a determination has been made as to processes that need to be improved with a desired end state in mind, business process reengineering (BPR) needs to occur. BPR is the analysis and redesign of workflow within and between enterprises to produce more efficient and effective results (SearchCIO, 2010). By reengineering current processes the business will be better suited to refocus efforts on specified tasks that will benefit all stakeholders and produce lasting growth. The identification and reengineering of business processes is an essential element in the growth of a business as well as beneficial for organizational climate. After improving business processes to match the innovation of the current time, management must then be able to focus their efforts on business policies and their affect on the business. As businesses begin to grow, management will need to assess current policies in place to see which are viable and which need modification to coincide with the growth of the business. Business policies can cover a large variety of topics within a business that outline established written or unwritten practices with the type and nature depending on the business itself (Small Business Dictionary, 2010). Varying types of policies include (a) personnel, (b) health and safety, (c) conduct, (d) use of facilities, (e) training and performance standards, and (f) communications (Businesslink, 2010). Within business policy, there are many areas in which a growing business could focus their efforts, however as the workforce composition changes due to the generational shift, policies pertaining to personnel should be of the utmost importance. The diverse nature of business policy without the focused attention of management could result in wasted effort. Therefore, the determination of business process improvement for growth, in conjunction with policy revision based on finds will help to dictate shifts in personnel procedures. The refinement of personnel procedures as a result of changes to processes and policies is the final element for the future growth of business. It is essential as a business grows, revisions to personnel procedures occur in order to remain current with laws as well as innovation (Consultant Matters, 2010). In order to effect changes in personnel procedures, it is imperative that they are written into policy as this will assist in enforcing compliance and protect the business (Management Help, 2010). It is also important to consider the change in personnel procedures and the impacts it will have on the organizational climate. Ideally, the impacts need to be positive in nature, with the employee in mind and results in more efficient and effective produces to help sustain growth.

123
The growing of a business in the future will contain many challenges that can be easily averted. It is through proper preparation and the use of proven practices that will help to facilitate growth and ensure success. Refinements to procedures, policies and personnel have been ever present in the evolution of management theory and will remain long into the future. Continuous Improvement Achieving continuous improvement (CI) in tomorrows workforce will result from necessity and innovation. CI is the seeking of small improvements in processes and products, with the objective of increasing quality and reducing waste (BNET, 2010). The shift in the workforce to accommodate generational changes will require implementation of practices and processes that reduce the burden of employees and result in higher quality. The three key CI strategies that management must implement in the future to achieve success are Lean, Six Sigma, and Total Quality Management (TQM) (ASQ, Continuous Improvement, 2010). The first strategy used in achieving CI in tomorrows workforce is the implementation of the Lean philosophy. The Lean philosophy involves a system of techniques and activities for running a manufacturing or service operation with the focus of the elimination of all non-value adding activities and waste from the business (ASQ, LEAN, 2010). With Leans focus being the reduction of waste, seven key areas are addressed that impact and involve the workforce. The seven types of waste or muda are; (a) overproduction, (b) waiting, (c) transport, (d) extra processing, (e) inventory, (f) motion, and (g) defects (Lean innovation, 2003). By properly training the future workforce in the Lean principles and applications as well as gaining the commitment of the employees in this endeavor, the organizational climate will improve due a more engaged workforce. The implementation of Lean and its focus on the reduction of waste, the next CI initiative is the introduction of Six Sigma to improve organizational processes. In conjunction with Lean, management will be well served to implement the Six Sigma philosophy into their CI program as well. Six Sigma is a methodology that uses data and statistical analysis to measure and improve a companys operational performance by identifying and eliminating defects in manufacturing and service related processes (Isixsigma, New to Six Sigma, 2010, p. 1). The refinement of processes is done with the goal of achieving 3.4 defects per million opportunities through the use of metrics, methodology and philosophy (p. 1). An organization that couples Lean and Six Sigma together as part of their CI program will benefit from the reduction of waste and more efficient processes. The benefits are further passed down to the customers, which will improve the organizational climate and result in more savings thereby increasing profits. The use of Six Sigma is a tool to further engage employees through teamwork during the refinement of processes which is beneficial in workforce cohesion (ASQ, Six Sigma, 2010). Combining Lean and its principles of waste reduction with Six Sigma and process refinement the next logical step in the CI chain is the implementation of TQM. As refinements are made to the CI process, TQM is the final strategy to implement because of its all encompassing nature. The essence of TQM is future focused and aimed at long term success through the satisfaction of the customer (ASQ, Total Quality Management, 2010). TQM is a management philosophy that seeks to integrate all organizational functions to focus on meeting customer needs and organizational objectives (Isixsigma, Introduction and implementation of Total Quality Management, 2010). In order to achieve total customer satisfaction and organizational objectives, five areas of capabilities must be assessed. The capabilities that need to be assessed are demand generation, supply generation, technology, operations and people capabilities (Isixsigma, Introduction and implementation of Total Quality Management, 2010,

124
p. 1). Through the assessment of organizational capabilities, management will be better prepared in the planning process for the CI process. The combination of Lean, Six Sigma and TQM are critical strategies for organizations to implement as they move towards the future. Implementation of CI initiatives facilitates future success, a positive organizational climate and greater customer satisfaction. The implementation of CI strategies is based on proven principles that have stood the test of time. CI has been a part of business innovation since the beginning of civilization; however, it became more documented in the early 1900s with the introduction of scientific management. The work of Taylor who was later followed by Shewart, Deming and Juran helped to usher in the age of quality management which benefited organizations (Wren, 2005). Conclusion The evolution of management theory is based on lessons learned from the past with the application of innovation and technology to current and future situations. As organizations move forward, preparation is essential to ensure success. Management must assess their organization in terms of (a) personnel, (b) workforce composition, (d) organizational capabilities and limitations, (e) policies, (f) procedures, (g) processes, (h) options for continued improvement, and (i) relationship with the customer. In addition, management must look inward to ensure that they meet the requirements needed to lead an organization into the future and are prepared to take on the new and challenging opportunities which lie ahead. Future trends in the evolution of management theory are rooted in the past, with success of future operations dependent on the use of proven principles. References Alukal, G. (2006). All about lean. Quality Progress, 39(2), 74-75. Retrieved from http://proquest.umi.com.proxy1.ncu.edu/pqdweb?did=991049161&sid=1&Fmt=2&client Id=52110&RQT=309&VName=PQD ASQ. (2010). Continuous improvement. Retrieved from http://www.asq.org/learn-aboutquality/continuous-improvement/verview/overview.html ASQ. (2010). Lean. Retrieved from http://www.asq.org/learn-aboutquality/lean/overview/overview.html ASQ. (2010). Six sigma. Retrieved from http://www.asq.org/learn-about-quality/sixsigma/overview/overview.html ASQ. (2010). Total quality management. Retrieved January 21, 2010, from http://www.asq.org/learn-about-quality/total-qualitymanagement/overview/overview.html Beu, D. S. & Leonard, N. H. (2004). Evangelism of great works in management: How the gospel is spread. Management Decision, 42(10), 1226-1239. doi: 10.1108/00251740410568935 BNET. (2010). Continuous improvement. Retrieved from http://dictionary.bnet.com/definition/continuous+improvement.html Businesslink. (2010). Set up employment policies for your business. Retrieved from http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId =1073791959 Business Week. (2009, March 17). The increasing call for work-life balance. Retrieved from http://www.businessweek.com/managing/content/mar2009/ca20090327_734197.htm?cha n=careers_special+report+--+work-life+balance_special+report+--+work-life+balance

125
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management. The Academy of Management Review (pre-1986), 4(000004), 497-505. doi: 10.2307/257850 Carmichael, E. (2010). The dynamic U-method of management for creating higher employee productivity and business loyalty. Retrieved from http://www.evancarmichael.com/Business-Coach/406/The-Dynamic-UMethod-ofManagement-For-Creating-Higher-Employee-Productivity-and-Business-Loyalty.html Cetron, M. J. & Davies, O. (2005) Trends now shaping the future. The Futurist, 39(3), 37-50. Retrieved from http://proquest.umi.com.proxy1.ncu.edu/pqdweb? did=822659921&sid=1&Fmt=2&clientId=52110&RQT=309&VName=PQD Consultant Matters. (2010). Better staff management with personnel polices & procedures. Retrieved from http://www.consultantmatters.co.uk/personnel-procedures.html CSC. (2010). Professional and personal development. Retrieved from http://www.csc.com/careersus/ds/11832 Drucker, P. (2006). What executives should remember. Harvard Business Review, 84(2), 144152. Retrieved from http://proquest.umi.com.proxy1.ncu.edu/pqdweb?did= 976282461&sid=3&Fmt=2&clientId=52110&RQT=309&VName=PQD Evolution in Management Theory. (2009). Changing ways of making cars. Retrieved from http://highered.mcgraw-hill.com/sites/dl/free/0070893721/38909 /jones1_sample_chap2.pdf Gorham, R. (2010). Cultural diversity in the workplace. Retrieved from http://www.leadershiptools.com/cultural-diversity-in-the-workplace.html Heap, N. (2001). Building effective relationships that work. Retrieved from http://homepage.ntlworld.com/nick.heap/Effectiverelatwork.htm Heskett, J. (2008, March 5). Where will management innovation take us? Retrieved from http://hbswk.hbs.edu/item/5887.html Hewitt Associates. (2010). Preparing for the workforce of tomorrow. Retrieved from http://www.hewittassociates.com/Intl/nA/en-Us/Knowledgecenter/ArticlesReports /ArticleDetail.aspx?cid=1734 Hyer, T. (2006, May). Intro to design thinking. Retrieved from http://www.redhat.com/magazine/019may06/features/burney/ Isixsigma. (2010). Introduction and implementation of total quality management. Retrieved from http://www.isixsigma.com/library/content/c031008a.asp Isixsigma. (2010). New to six sigma. Retrieved from http://www.isixsigma.com/library/content/six-sigma-newbie.asp Jaffee, C. L. (2001). Building the skill sets for the new economy. Employment Relations Today, 27(4), 9-22. doi: 10.1002/ert.13 Joni, S. (2010, January 14). Why we all need more design thinking. Retrieved from http://www.forbes.com/2010/01/14/tim-brown-ideo-leadership-managing-design.html Lean Innovations. (2003). Seven types of deadly waste. Retrieved from http://www.leaninnovations.ca/seven_types.html Levinson, M. (2007). Knowledge management definitions and solutions. Retrieved from http://www.cio.com/article/40343/Knowledge_Management_Definition_ and_Solutions?page=5&taxonomyId=3000 Management Help. (2010). Human resource management. Retrieved from http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm

126
Mokyr, J. (August, 1998). The second Industrial Revolution, 1870-1914. Retrieved from http://faculty.wcas.northwestern.edu/~jmokyr/castronovo.pdf SearchCIO. (2010). Business process reengineering. Retrieved from http://searchcio.techtarget.com/sDefinition/0,,sid182_gci536451,00.html Simn, C. (2007, April 18). Dueling age groups in todays workforce: From baby boomers to generations X and Y. Retrieved from http://www.wharton.universia.net/ index.cfm?fa=printArticle&ID=1330&language=english Small Business Dictionary. (2010). Business policy. Retrieved from http://www.smbtn.com/smallbusinessdictionary/#p Solish, G. (2006). Building and sustaining positive relationships in the workplace. Retrieved from http://www.nationalbusiness.org/nbaweb/Newsletter2006/2268.htm Theory Z. (2006). Retrieved from http://www.enotes.com/management-encyclopedia/theory-z Trunk, P. (2009, July 27). What generation Z will be like at work. Retrieved from http://blog.penelopetrunk.com/2009/07/27/what-work-will-be-like-for-generation-z/ Westerman, J.W. & Yamamura, J.H. (2007). Generational preferences for work environment fit: Effects on employee outcomes. Career Development International, 12(2), 150-161. doi: 10.1108/13620430710733631 Wren, D.A. (2005). The History of Management Thought. Hoboken, NJ: Wiley.

Copyright of Business Journal for Entrepreneurs is the property of Franklin Publishing Company and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.