contemporary hr environment

7/31/2019 Contemporary HR Environment

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By-

Prof Radhika Gupta

CONTEMPORARY HR

ENVIRONMENT


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CONTEMPORARY ENVIRONMENT

OF HRM

contemp. environment of HRM2

What Is Human Resource Management (HRM)?

The policies and practices involved in carrying out

the people or human resource aspects of a

management position, including recruiting,

screening, training, rewarding, and appraising.


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The Changing Environment of

Human Resource Management


Globalization Trends

Technological Trends

Trends in the Nature of Work

Workforce Demographic Trends

Changes and Trendsin Human Resource

Management


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The changing environment of humanresource management

contemp. environment of HRM

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Work force diversity related to race ,value,age,culture,system,sex

Technological trends:

technology will force firms to become morecompetitive.

Information technology has also hastened what

experts call the fall of hierarchy,managers

depends less and less on yesterdays stick-to-the-

chain-of-commandapproach to organizing.

empowering workers to make more decisions .


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Globalization:

refers to the tendency of firms to extend their sales or

manufacturing or capital etc. to new markets abroad.

has vastly increased international competition .

to seek cheaper labor,

to tap a vast new supply of skilled labor around the

world.


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Trends in the nature of work:

Technological and globalization trends are in turn

producing changes in the nature of jobs and work.A service society has been formed with an enormous

shift from manufacturing jobs to service jobs

This demands new types of knowledge workers and

new human resource management methods to managethem.


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Knowledge work and Human capital:

Brain-power has never before been so important for

business . Every company depends increasingly on knowledgepatents, processes, managementskills,technologies,information about customers and

suppliers ,and old-fashioned experience.addedtogether

this knowledge is intellectual capital.


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IMPACT OF GLOBALISATION ONHUMAN RESOURCES


Contracting out and outsourcing

More part-time and temporary work

Greater employee involvement in the design

and execution of work Downsizing

Flexible working hours

Flexibility in functions (multiskilled labour) Greater focus on workplace relations


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Globalization

0

10

20

30

40

50

60

70

80

1920 1950 1970 2000

% fortune 500 with aglobal presence

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WORKFORCE DIVERSITY


Aging workforce

Boomer age bulge

Labour shortages

Greater racial diversities Changing occupational distributions for women

Dual career couples


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TECHNOLOGICAL TRENDS


Use of internet and IT

Use of internet for staffing

Use of Internet for New Ways of Work

- Teleworking

- Project oriented work with subcontracting

Use of internet for employee development


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Nature of Work


In today's world, the structure, content, and process of work have changed.Work is now:

Change from brawn to brains

more cognitively complex

more team-based and collaborative

more dependent on social skills

more dependent on technological competence

more time pressured

more mobile and less dependent on geography.


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Organizations today are:

leaner and more agile

more focused on identifying value from the customerperspective

more tuned to dynamic competitive requirements andstrategy

less hierarchical in structure and decision authority

less likely to provide lifelong careers and job security continually reorganizing to maintain or gain

competitive advantage


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Tomorrows HR Today


Organizations today must grapple withrevolutionary trends:accelerating product and

technological change,globalized

competition,deregulation,demographic

changes,and trends towards a service societyand the information age.

The traditional pyramid-shaped organization is

giving way to new forms


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At firms like AT&T the new way of organizing

stresses cross-functional teams and boosting

interdepartmental communications. at GE ,Jack Welch talks of the boundaryless

organization,in which employees dot identify with

separate departments but instead interact with

whomever they must to get the job done


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Employees are being empowered to make more and

more decisions.

experts argue for turning the typical organization

upside down.

and put the customers on top and

emphasize that every move the company makesshould be towards satisfying the customers needs.


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Flat organization are the norm.

Work itselfon the factory floor,in the office ,even

in the hotelis increasingly organizing around

teams and processes rather than specialized

functions

The basis of power are changing:the newmanagerial work implies very different ways of

obtaining and using man-power

Managers will not manage: managers have to

learn to manage in situations where they donthave command authority.


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Managers today must build commitment.building

adaptive,customer-responsive organization means

that employees commitment and self-control is moreimportant than it has ever been.


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The changing role of HR

management


HR and boosting productivity: productivity improvement is crucial in todays

globally competitive environment,

HR plays a pivotal role in lowering labor costs,helps

employees adapt to the increased pressures in theirdownsized departments by helping them to learn to

prioritize tasks and reduce job stress.


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HR and responsiveness:making the company

more responsive to product innovations and

technological changes is the basic aim of manyof the management changes listed previously.

downsizing,flattening the pyramid,empowering

employees,for facilitating communications,

customers-need-oriented.


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HR and service:service organizations have little to

sell but their good service,uniquely dependent on

theiremployeess attitudes and motivationand onHR management.


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People-service-profits:using progressive HR

practices to build employee commitment and

morale,employees will then provide excellentcustomer service,which in turn will generate profits.


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HR and corporate strategy:HR in the earliest stages

of developing and implementing the firms strategic

plan,rather than letting HR just react to it.we thus

turn next to strategic planning and HRs strategic role


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The Changing Role of

Human Resource Management


NewResponsibilitiesfor HR Managers

Measuring the HRM

Teams Performance

Managing with the

HR Scorecard

Process

Creating High-

Performance Work

Systems

Strategic Human

Resource

Management

Th Ch i R l Of


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2009 Pearson Education South Asia. All rightsreserved.

126

Changes in environment HR managers to take

on new responsibilities

HR functions more strategic

The Changing Role Of

HR Management

Th Ch i R l Of


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Strategic Planning

The companys long-term plan for how itwill balance its internal strengths and

weaknesses with its external opportunitiesand threats to maintain a competitiveadvantage.

3 questions in strategic planning Current business position

Future business position expected to be How to get to expected future business

position


HR Management



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Strategic HRM

Formulating HR policies and introducing

practices that produce staff competencies

and behaviors that the company needs toachieve its strategic goals.


HR Management



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Strategic HRM

HR managers today are more involved in

partnering with their top managers in both

designing and implementing theircompanies strategies

Top management wants to see, precisely,

how the HR managers plans will make

the company more valuable.


HR Management



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Outsourcing HR Activities

Computer-based systems easy to

outsource HR activities by providing

access to service providers to thecompanys HR information database

E.g. Payroll, Benefits, Wellness Programs

and Employee Training


HR Management



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High Performance Work Systems (HPWS)

Integrated set of HRM policies andpractices that together produce superiorstaff performance

Need to focus on performance

No fixed rule of items that comprisesHPWS but should include:

Employment security


HR Management



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No fixed rule of items that comprises

HPWS but should include (cont):

Selective hiring

Extensive training

Self managed teams and decentralized decision

making


HR Management



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No fixed rule of items that comprisesHPWS but should include (cont):

Reduced status distinctions among managers andworkers

Information sharing among managers

Pay-for-performance rewards

Emphasis on high quality work


HR Management



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Benefits of HPWS

Generate more job applicants

Screen candidates more effectively

Provide more and better training

Link pay more explicitly to performance

Provide a safer work environment


HR Management



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Benefits of HPWS (cont)

Produce more qualified applicants per position

More employees are hired based on validatedselection tests

Provide more hours of training for new employees

Higher percentages of employees receiving regular

performance appraisals.


HR Management



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Measuring HRM Teams Performance

Employees expect HR teams to provide

measurable proof of the effectiveness of

their programs Require quantitative measures

Metrics and HR Scorecard are used


HR Management


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Metrics E.g. of HR Metrics (cont)

Cost per Hire(Advertising + Agency Fees + Employee Referrals

+ Travel cost of applicants and staff + Relocation

costs + Recruiter pay and benefits) Number of

Hires


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Metrics E.g. of HR Metrics (cont)

Health Care Costs per EmployeeTotal cost of health care Total Employees

HR Expense Factor

HR expense Total operating expense

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T.

Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13

20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,

Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce

Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.


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HR Scorecard

Measures the HR functions effectiveness and

efficiency in producing employee behaviorsneeded to achieve the companys strategic goals

Concise and simple measurement system


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HR Scorecard Use to measure:

HR activities (testing, training, compensation

and safety)

Employee behaviors resulting from such

activities

Organizational outcomes of those employee

behaviors (higher performance, andcompany profit)


HR Management


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TABLE 11 Technological Applications for HR


Application Service Providers (ASPs) and technology outsourcing

Web portalsPCs and high-speed access

Streaming desktop video

The mobile Web and wireless net access

E-procurementInternet- and network-monitoring software

Bluetooth

Electronic signatures

Electronic bill presentment and payment

Data warehouses and computerized analytical programs

Hi h P f W k S


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High-Performance Work System

Practices


Employment security Selective hiring

Extensive training

Self-managed teams/decentralized decision

making Reduced status distinctions

Information sharing

Contingent (pay-for-performance) rewards

Transformational leadership

Measurement of management practices

Emphasis on high-quality work


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Consequences of these basic trends

Technology

Global expansion

Strengths and

Weaknesses

Uncertainty,

Turbulence,

Rapid Change,

Changing

power bases

Companies

must be Fast,

Responsive, andCost-effective

Improved competition


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HRs evolving role

contemp. environment of HRM

Protector

and

Screener

Strategic Partner

Change Agent

contemporary hr environment

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