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CONTEMPORARY ISSUE ON SEMINAR A STUDY ON “Recent trends in human resource management” 1

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Page 1: Recent Trends in HRM

CONTEMPORARY ISSUE ON SEMINAR

A STUDY ON

“Recent trends in human resource management”

www.studygalaxy.com

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Page 2: Recent Trends in HRM

Preface

The underlying aim of the seminar on contemporary issue as an integral part of

MBA program is to provide the students with practical aspects of the organization

– working environment.

Such type of presentation helps a student to visualize and realize about the

congruencies between the theoretical learning in the premises of college and actual

followed by the organization. It gives the knowledge of application aspect of the

theories learnt in the classroom.

The seminar project in “Recent trends in human resource management” is a

complete experience in itself, which provide me with the understanding. This has

become as inspirable of my knowledge of management being learned in MBA

program.

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Quotes 2010

Following are some quotes1 by leaders of INDIA INC., which shows the

importance and need of HRM that they felt during the period of recession.

“We linked hikes to performance” - Vikram Bakshi, MD, MacDonald’s India

“For the first time, we have an HR professional on the Board of Directors.

Today, every organization recognizes the role of a CFO in managing money,

but there is another important function which is HR, for managing people”-

Chanda Kochhar, MD and CEO, ICICI Bank Ltd.

“I met all, 100% of our employees” – Vineet Nayar, CEO, HCL Technologies.

“Invest in Leaders, even at premium” – Akhil Gupta, MD, Blackstone Advisors

“Cement relationships with your employees”-Kiran Karnik, Ex-President,

NASSCOM

“You have to be visible as a leader”- L. Brooks, CEO, Goldman Sachs India

“Keep Employees abreast of all happenings”- Onkar S. Kanwar, CEO, Apollo

Tyres

“Tough times don’t last, tough people do” – K. M. Birla, Chairman, ABG

“The first deliberate call we took is not to lay off anybody. We decided to

reskill all surplus workers”- Arun Bharat, CEO, SRF Ltd.

1 Source : Business Today( Jan 10, 2010, issue)

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Table of Contents

Quotes- 2010…………………………………………………………….1

INTRODUCTION………………………………………………………3

New Trends in International HRM ……………………………………..5

Human Resource Management in India…………………………………7

Top 10 Human Resource Practices- Post Recession…………………...10

Top 10 Trends in Employee Management……………………………..14

Top 10 Work Force Trends…………………………………….............19

Demographics and changing nature of work…………………………..20

Future of Employment Relations………………………………............26

New Trend of Upgrading Talent……………………………………….29

Changes in Technology………………………………………………...33

CONCLUSION………………………………………………………...36

References……………………………………………………………...37

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INTRODUCTION

uman 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.

H

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:

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

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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.

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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.

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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.

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 following-

Policies- HR policies based on trust, openness, equity and consensus.

Motivation- Create conditions in which people are willing to work with zeal,

initiative and enthusiasm; make people feel like winners.

Relations- Fair treatment of people and prompt redress of grievances

would pave the way for healthy work-place relations.

Change agent- Prepare workers to accept technological changes by

clarifying doubts.

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.

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HUMAN RESOURCE MANAGEMENT IN INDIA

India is being widely recognized as one of the most exciting emerging economics

in the world. Besides becoming a global hub of outsourcing, Indian firms are

spreading their wings globally through mergers and acquisitions. During the first

four months of 1997, Indian companies have bought 34 foreign companies for

about U.S. $11 billion dollars. This impressive development has been due to a

growth in inputs (capital and labor) as well as factor productivity. By the year

2020, India is expected to add about 250 million to its labour pool at the rate of

about 18 million a year, which is more than the entire labour force of Germany.

This so called ‘demographic dividend’ has drawn a new interest in the Human

Resource concepts and practices in India.

Indian HRM in Transition

One of the noteworthy features of the Indian workplace is demographic

uniqueness. It is estimated that both China and India will have a population of

1.45 billion people by 2030; however, India will have a larger workforce than

China. Indeed, it is likely India will have 986 million people of working age

in 2030, which will probably be about 300 million more than in 2007. And by

2050, it is expected India will have 230 million more workers than China and

about 500 million more than the United States of America (U.S.). It may be

noted that half of India’s current population of 1.1 billion people are under of

25 years of age. While this fact is a demographic dividend for the economy, it

is also a danger sign for the country’s ability to create new jobs at an

unprecedented rate.

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With the retirement age being 55 to 58 years of age in most public sector

organizations, Indian workplaces are dominated by youth. Increasing the

retirement age in critical areas like universities, schools, hospitals, research

institutions and public service is a topic of considerable current debate and

agenda of political parties.

The divergent view, that each society has a unique set of national nuances,

which guide particular managerial beliefs and actions, is being challenged in

Indian society. An emerging dominant perspective is the influence of

globalization on technological advancements, business management, and

education and communication infrastructures are leading to a converging

effect on managerial mindsets and business behaviors. And when India

embraced liberalization and economic reform in the early 1990s, dramatic

changes were set in motion in terms of corporate mindsets and HRM

practices as a result of global imperatives and accompanying changes in

societal priorities. Indeed, the onset of a burgeoning competitive service

sector compelled a demographic shift in worker educational status and

heightened the demand for job relevant skills as well as regional diversity.

Expectedly, there has been a marked shift towards valuing human resources

(HR) in Indian organizations as they become increasingly strategy driven as

opposed to the culture of the status quo. Accordingly, competitive advantage

in industries like software services, pharmaceuticals, and biotechnology

(where India is seeking to assert global dominance), the significance of HRs

is being emphasized. These relativities were demonstrated in a recent study of

three global Indian companies with (235 managers) when evidence was

presented that positively linked the HRM practices with organizational

performance. In spite of this trend of convergence, a deep sense of locality

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exists creating more robust ‘cross vengeance’ in the conceptual as well as

practical domain.

Key HRM Practices in Indian OrganizationsHRM Practice Observable Features

Job DescriptionPercentage of employees with formally defined work roles is very high in the public sector.

Recruitment

Strong dependence on formal labour market. Direct recruitment from institutions of higher learning is very common amongst management, engineering and similar professional cadres. Amongst other vehicles, placement agencies, internet and print media are the most popular medium for recruitment.

CompensationStrong emphasis on security and lifetime employment in public sector including a range of facilities like, healthcare, housing and schooling for children.

Training and Development

Poorly institutionalized in Indian organisations. Popularity of training programs and their effect in skill and value development undeveloped.

Performance Appraisal

A very low coverage of employees under formal performance appraisal and rewards or organisational goals

Promotion and Reward

Moderately variable across industries. Seniority systems still dominate the public sector enterprises. Use of merit and performance limited mostly to globally orientated industries.

Career Planning

Limited in scope. The seniority based escalator system in the public sector provides stability and progression in career. Widespread use of voluntary retirement scheme in public sector by high performing staff. Cross functional career paths uncommon.

Gender EquityDriven by proactive court rulings, ILO guidelines and legislature provisions. Lack of strategic and inclusion vision spread.

Reservation System

The central government has fixed 15 per cent reservations for scheduled castes, 7.5 per cent for scheduled tribes and 27 per cent for backward communities. States vary in their reservation systems.

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TOP 10 HUMAN RESOURCE PRACTICES-POST RECESSION

Top Ten HR Practices that can help you achieve your organizational goals every year:

1. Safe, Healthy and Happy Workplace: Creating a safe, healthy and happy

workplace will ensure that your employees feel homely and stay with your

organization for a very long time. Capture their pulse through employee surveys.

2. Open Book Management Style: Sharing information about contracts, sales,

new clients, management objectives, company policies, employee personal data

etc. ensures that the employees are as enthusiastic about the business as the

management. Through this open book process you can gradually create a culture

of participative management and ignite the creative endeavor of your work force..

It involves making people an interested party to your strategic decisions, thus

aligning them to your business objectives. Be as open as you can. It helps in

building trust & motivates employees. Employee self service portal, Manager on-

line etc. are the tools available today to the management to practice this style.

3. Performance linked Bonuses: Paying out bonuses or having any kind of variable

compensation plan can be both an incentive and disillusionment, based on how it

is administered and communicated. Bonus must be designed in such a way that

people understand that there is no payout unless the company hits a certain level

of profitability. Additional criteria could be the team's success and the individual's

performance. Never pay out bonus without measuring performance, unless it is a

statutory obligation.

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4. 360 Degree Performance Management Feedback System: This system, which

solicits feedback from seniors (including the boss), peers and subordinates, has

been increasingly embraced as the best of all available methods for collecting

performance feedback. Gone are the days of working hard to impress only one

person, now the opinions of all matter, especially if you are in a leadership role (at

any level). Every person in the team is responsible for giving relevant, positive and

constructive feedback. Such systems also help in identifying leaders for higher

level positions in the organization. Senior managers could use this feedback for

self development.

5. Fair Evaluation System for Employees: Develop an evaluation system that

clearly links individual performance to corporate business goals and priorities.

Each employee should have well defined reporting relationships. Self rating as a

part of evaluation process empowers employees. Evaluation becomes fairer if it is

based on the records of periodic counseling & achievements of the employee,

tracked over the year. For higher objectivity, besides the immediate boss, each

employee should be screened by the next higher level (often called a Reviewer).

Cross – functional feedback, if obtained by the immediate boss from another

manager (for whom this employee's work is also important), will add to the

fairness of the system. Relative ratings of all subordinates reporting to the same

manager are another tool for fairness of evaluation. Normalization of evaluation

is yet another dimension of improving fairness.

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6. Knowledge Sharing: Adopt a systematic approach to ensure that knowledge

management supports strategy. Store knowledge in databases to provide greater

access to information posted either by the company or the employees on the

knowledge portals of the company. When an employee returns after attending

any competencies or skills development program, sharing essential knowledge

with others could be made mandatory. Innovative ideas (implemented at the

work place) are good to be posted on these knowledge sharing platforms.

However, what to store & how to maintain a Knowledge base requires deep

thinking to avoid clutter.

7. Highlight performers: Create profiles of top performers and make these visible

through company intranet, display boards etc. It will encourage others to put in

their best, thereby creating a competitive environment within the company. If a

systems approach is followed to shortlist high performers, you can surely avoid

disgruntlements.

8. Open house discussions and feedback mechanism: Ideas rule the world. Great

organizations recognize, nurture and execute great ideas. Employees are the

biggest source of ideas. The only thing that can stop great ideas flooding your

organization is the lack of an appropriate mechanism to capture ideas. Open

house discussions, employee-management meets, suggestion boxes and ideas

capture tools such as Critical Incidents diaries are the building blocks that can help

the Managers to identify & develop talent.

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9. Reward Ceremonies: Merely recognizing talent does not work, you need to

couple it with ceremonies where recognition is broadcast. Looking at the Dollar

Check is often less significant than listening to the thunderous applause by

colleagues in a public forum.

10. Delight Employees with the Unexpected: The last but not least way is to

occasionally delight your employees with unexpected things that may come in the

form of a reward, a gift or a well-done certificate. Reward not only the top

performers but also a few others who are in need of motivation to exhibit their

potential.

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TOP 10 TRENDS IN EMPLOYEE MANAGEMENT

The Indian workplace has undergone a sea change, and human resource priorities

have now taken centre stage. In a knowledge economy, it is people—not capital or

market—who make all the difference. As talent occupies centre stage in the Indian

workplace, managing and retaining manpower is becoming crucial to an

organization's success. To achieve this, companies across sectors are focusing on

some of the more critical HR practices. Ten such trends are:

1. Leadership Development: Creating a pipeline of leadership talent is key to a

business' future growth. Peter Cappelli, the professor of management and director

of the Center for Human Resources, The Wharton School, University of

Pennsylvania, says it is imperative for the top level of an organization to make

leadership talent management a priority, and put its money into long-term plans, as

opposed to short-term ones. If companies are worried about their talent pipeline,

they have to develop their people, says Cappelli. Also, good bench strength helps

companies deal with volatility in labour supply. "Companies including Hindustan

Unilever, Procter and Gamble and GlaxoSmithKline have been able to withstand

attrition in key executives because they have always invested in developing

leaders," says P. Dwarakanath, president, National Human Resource Development

Network. Experts say succession planning should not be seen in isolation, but as

part of overall organizational development.

2. Work-life Balance: No company or employee has found the Holy Grail of

balancing work and life, but that is a work in progress. However, multinationals,

information technology (IT) and IT enabled services (ITeS) companies have been

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able to promote the balance between career, family and leisure-time better. Other

sectors have also been increasingly promoting a work-life balance. Interestingly,

most companies in India use benefits such as flexible timings, telecommuting,

crèche facilities and concierge services as an attraction and retention strategy. "We

are yet to fully buy into the fact that employees become more productive and

remain motivated when companies allow them to have a life beyond work," says

Prabir Jha, global head, human resources, Dr Reddy's Laboratories Ltd.

3. Inclusion and Diversity: With higher numbers of people joining the workforce

in India at a time when companies across the world have an ageing workforce on

their rolls, conflicts are to be expected. "One of the challenges companies face

today is resolving conflicts among different generations," says Pavan Bhatia,

executive director, human resources, PepsiCo India Holdings Pvt. Ltd. "An

inclusive and diverse workforce is the future of the workplace," he adds. Therefore,

companies are investing both time and resources in ensuring that all age groups are

comfortable working together. Organizations in India have also been focusing on

making workplaces more representative. For companies such as ICICI Bank Ltd,

Hindustan Unilever Ltd, Vedanta Resources, PepsiCo India, Shell Companies in

India and Bharti Airtel Ltd, gender diversity has become a critical area of focus.

4. Health and wellness: The work culture at globalized workplaces involves long

working hours, frequent travel, multitasking and tight deadlines—and all this often

leaves employees mentally and physically stressed. "Employees are increasingly

grappling with lifestyle-related diseases such as hypertension, diabetes and

cholesterol, which can be checked by regular monitoring and a healthy lifestyle,"

says A. Sudhakar, executive vice-president, Human Resources, Dabur India.

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Companies have begun to realize that healthy employees contribute to higher

efficiency and productivity. Apart from medical benefits, companies are also

offering yoga classes and health camps and have doctors on campus. HCL

Technologies Ltd, for instance, like many other IT companies, has 24/7 medical

facilities in all its centres. DuPont has an Intranet-based tool, which assesses an

employee's health through a questionnaire and makes recommendations based on

the scores.

5. Right Skilling: Right skilling, or matching jobs with a particular level of

training rather than hiring over skilled workers, is gaining currency. Companies

use this strategy to tide over a manpower supply crunch and to broaden their talent

base. "You don't need an IITian to supervise a car maker's shop floor or a

management graduate from a premier business school to sell soaps, which largely

has been the case," says T.V. Mohandas Pai, head, human resources, Infosys

Technologies Ltd.

6. Managing Solid Citizens: "Solid citizens" are the second-rung performers who

make up 50-60% of employees in any organization. They are the backbone of any

company. Although they contribute significantly to the company's overall

performance, they don't have the potential to become leaders. "Unfortunately, most

organizations focus on the 15-20% key talent at the expense of solid citizens," says

Dwarakanath. Organizations which neglect their solid citizens are doing this at

their own peril, say experts. Unlike star performers who are potential leaders, and

therefore more likely to move out of an organization faster, this group provides

stability and bench strength to an organization.

7. Instant Rewards: Recognizing and rewarding performers is one of the most

effective tools to attract and retain the right talent. Companies in India are looking

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at rewards systems more seriously, and are adopting total rewards practices that

include compensation in both cash and kind. Apart from lifestyle perquisites such

as a house, a car or a club membership, profit-linked incentives, deferred gratuity,

and wealth-building programs in the form of stock options and soft loans,

companies are also including work-life balance programs; competency pay

packages where niche skills are compensated; and career opportunities, such as

overseas assignments, new projects, etc., to reward staff. These rewards can be

tailored to suit the top performers' aspirations to achieve maximum effect.

8. Measuring human capital: Evaluation of performance plays a key role, not just

in rewarding an individual employee, but also in setting performance benchmarks.

And hence, there is the need for a fair and transparent performance management

system. A strong performance analysis helps make human resources both efficient

and effective. "In today's business environment, where the focus is on increasing

performance, companies must have robust systems to identify performers so that

the best performers get identified, recognized and duly rewarded," says Ganesh

Shermon, partner and head, human capital advisory service, KPMG India.

Shermon cites the example of oil and gas company Bharat Petroleum Ltd, which

has instituted a balanced scorecard based on key result areas to measure

performance.

9. Managing Aspirations: As aspirations of organizations grow, so do those of

employees. And, with the changing lifestyles and profiles of the workforce,

personal and professional aspirations of employees are not just varied, but are

increasingly on the rise. "Since competitive advantage depends on competent

people, knowing what employees aspire for could just be the way to have an edge

over competitors," says Kishore Poduri, head, human resources, eClerx Services

Ltd.

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10. 360 Degrees Feedback: Finally, recognizing the need to make performance

appraisal systems more effective, an increasing number of companies are using the

360 degrees or multi-rater feedback process. Unlike the traditional appraisal

system, which gives one-dimensional feedback, this one allows an employee to

give feedback to her reporting manager, peers, direct reports and others. "Multi-

rater feedback not only reduces the risk of biased perceptions, but also gives you a

holistic view from all the stakeholders within the company," says Sanjay Bali,

vice-president, HR, Samsung India Electronics Pvt. Ltd. While most companies

started using this system as a means for performance appraisal, most of them now

use the 360 degrees feedback system to identify the learning and development

needs of employees.

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TOP 10 WORKFORCE TRENDS

1. A global war for Smart Talent will be the top driver of competitive

advantage, as educated, skilled and experienced employees will be in

demand.

2. The aging of the population in America and Europe will have dramatic

effect on society and the economy impacting productivity, knowledge and

growth.

3. An increase in women in the U.S. workforce will change the policies, power

and positioning of organizations.

4. A diversity savvy workforce will be required to understand and align with

the diversity in the global marketplace.

5. Finding, training and retaining high-tech skilled employees from a global

talent pool will be the greatest challenge for every organization.

6. Incorporating innovation into the organizational DNA will be a key driver of

future competitive advantage.

7. Building a sustainable, healthy and green workplace will be an essential

capability for retaining talent and attracting the future workforce

8. Preparing employees to meet the challenges of a complex and stressful

future, where accelerated change and risks can be managed effectively with

high performance agility, will be vitally important.

9. An organization that is committed to employee development, continual

education and   training, will return to the organization new skills and new

competencies.

10. Attracting the next workforce, or preparing the current one, will require a

new workforce culture to better understand transnational teams, online

collaboration, globalization and business process transformation.

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DEMOGRAPHIC AND CHANGING NATURE OF WORK

One of the most powerful forces affecting the changing nature of work and the

work force is demographics— the changing distribution of the work force along a

number of important dimensions. Here we can only briefly highlight the most

important demographically- related changes that will be occurring during the next

decade. The work force of 2010 will be significantly different than it is in 2004, but

the characteristics of workers today are already very different from what most of

us think they are. And basic changes in the characteristics, beliefs, values, and

expectations of millions of workers in all functional areas will require equally

fundamental changes in the way those individuals and teams are managed. The

Changing Nature of Work —and the Demand for Workers One of the most

important changes that affects both organizations and management is what we

like to call the demand side — the kinds of workers who are required to do the

kind of work that needs to be done. For insight into how changes in the nature of

work itself are affecting who is in the work force, we reviewed the research by

Professor Richard Florida of Carnegie-Mellon University. His data shows very

clearly that the most rapidly increasing category of workers is what he calls the

“creative class” — those who are engaged in what others have called high-end

knowledge work and what we have described as “Creative Activities.” The rise of

knowledge work as the dominant activity in the economy has driven the

development, coalescence, and emergence of this new class of workers — those

who produce and apply knowledge. The “middle class,” the “working class,” and

the “service class” were products of the Industrial Revolution and the growing

automation of the means of production. The vast majority of jobs today involve

producing, applying, and distributing knowledge rather than things — essentially

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creative activities. Florida points out that creative work — activities with low

process structure and unpredictable outcomes — are what create economic value

and competitive advantage today. But the most important work force

management insight stemming from his analysis is the values and expectations

that “Creatives” bring to their work. As he suggests, creative people: - Work on

varied and individualized schedules - Are self-motivated and self-directed - Rely

on their own tools - Place profession and career ahead of a specific employer -

Expect to work in a variety of job situations (and for a variety of employers) over

time - Place a high premium on self-control (that is, on being in charge of what

they do, where they do it, and under what conditions) - Prefer to work in close

proximity to others who share their interests, skills, and work styles - Tend to

choose where they want to live and work first, and only then worry about who

they will work for, or where they will find the kind of work they want to do Thus,

without even considering the basic demographic changes within the population at

large, we already have a work environment in which well over one-third of the

work that must be done (and by far the most important third) requires people

who are very different from the dependent manual laborers, clerks, and even

middle managers around whom much of organizational life (and management

practice) has been built for the last several hundred years.

Changing Work Force Demographics but equally dramatic changes are occurring

on the supply side of work. The behavioral and emotional attributes of the

workers who constitute today’s work force are changing so rapidly that it is an

open question whether organizations will be able to adapt at all.

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First, just consider the fundamental impact of recently changing birth rates along

with the aging of the so-called Baby Boomers. Birth rates have an enormous

impact on the labor pool, and thus on job opportunities, wage and salary

expectations, and related attitudes about work and life.

Indeed, we believe the most fundamental driver of work force diversity today is

the continuing decline in birth rates in virtually all developed countries around

the world. The work force is aging, and it is growing at a much slower rate. The

result is a much broader range of ages in all professions — generational

diversity is a new condition that most organizations have never faced before. And

the shrinking number of new entrants to the work force means more importing of

labor (and thus a more multicultural work force), more exporting of work, more

use of consultants and part-timers, and a growing need to keep older workers in

the active labor pool. To be more specific, in 1965 there were approximately 4

million live births in the United States. Today those individuals are 39 years old,

and at height of their business careers. Just ten years later, in 1975, there were

only 3.1 million births (in the United States); those individuals are just 29 today

but will be in their mid-thirties in 2010. That is decline of 28 percent in the biggest

source of the labor pool in just 10 years. And that means that talented workers

will be short supply — and thus highly demanding — for the rest of this decade.

Because of those declines there are fewer and fewer young adults entering the

work force — far too few to replace those who are reaching the tail end of their

careers. And with the Baby Boomer generation now in its late 50s, that pattern is

about to become far more pronounced. The net result is that the work force in

total is aging, and it is growing at a much slower rate. U.S. Census Bureau data

show a dramatic “flattening” of the age curves over the next several decades.

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That is, there will be many more older workers, and many fewer younger ones,

based on current birth rates and population statistics. And of course, older folks

are staying in the work force much longer — as a result of both personal choice

and economic necessity. In fact, many organizations already have to cope with

what amounts to four “generations” of workers in the workplace all at the same

time. These four groups are: “Seniors” — Baby Boomers and their elders who are

50- and 60-somethings, many of who are already actively seeking or enjoying

part-time work, and/or flexible working arrangements. Retirement in its

traditional sense just isn’t what these folks want. “Forty something mid-career

professionals”- In one sense these are the workers you want — they are young

enough to have lots of energy, they are ambitious, they want to contribute, and

they’ve been in the work force for 20+ years already. But they are also frequently

the parents of growing children (and the children of aging parents) and typically

get caught in classic work/family life balance issues. “Thirty-something”- These

are the young, hard-working, but still wet behind-the-ears professionals. They

have lots of energy, but they need lots of direction and molding as well. Many of

them were caught up in the dot-com boom of the late 1990’s; some were

incredibly successful, and led rather heady lives. Today they are older, somewhat

wiser, and still ready to work hard. But they are also rediscovering life outside

work — and most of them don’t want to work those 80-hour weeks any more.

“Generation X and Generation Y”- This group, predominantly twenty-something,

came into the work force with a very different set of values and expectations from

their “elders.” They grew up with the PC and instant messaging, with Game Boys,

with cell phones, and with loud music. They are incredibly proficient at multi-

tasking, and they are more social and collaborative from their genes up. They are

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willing to work hard too, but only on their terms. They’re unwilling to suffer under

poor managers, and they have no hesitation in speaking their minds — and in

moving on quickly if they get turned off, or turned down. And the overall

shrinkage in the number of new entrants to the work force is another reason why

the “Seniors” will be actively encouraged to stay in the work force. That shrinkage

also means more importing of labor (and thus a more multicultural work force),

more exporting of work (offshore outsourcing may be unpopular, but it’s not

going to go away), and more use of consultants and part-timers. All of these

factors mean a whole lot more complexity in work force management and

support. For example, this picture suggests that workers will ask for — and get —

much more choice in the design of their workplaces and a much wider range of

types of office equipment. In essence, we have to recognize that, in Alvin Toffler’s

words, “one size misfits all.” This diversity will in turn put enormous pressure on

infrastructure and support staffs, which will be tasked to satisfy those complex

requirements and manage the resulting portfolio of workplaces and technologies.

Implications for Real Estate Executives The general business implication of these

demographic shifts is that there is going to be a major talent shortage, especially

for knowledge workers, in the developed world within five years. Although the

human resource management challenges are fairly obvious, the implications for

the real estate professional are perhaps less clear. We believe that changes in

demographics and an increased demand for creative talent means that more

work will have to be “taken” to the worker, not that workers will migrate and

relocate to wherever companies want to be. The basic location strategy for

sustainable companies within five years will be the development of a workplace

portfolio that has as its primary focus, “Where are the workers we need and how

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do we move our business there?” In addition, this “new” work force will demand

— and expect — very different workplace configurations — more collaborative

space in corporate facilities, a wider variety of locations and facilities in which

work can be accomplished, more personal control over when and where they will

work, and more support for remote and mobile work styles. The task of real

estate and facilities managers is clearly shifting from providing “a place” to

enabling the organization’s work to get done wherever and whenever it must be

done. Organizations will need comprehensive real estate “strategies of place”

that appeal to all the major demographic segments. No one group will supply the

talent needed in the future. And the various groups will continue to have varying

needs and expectations. Providing work force support is not going to get any

easier in the future; in fact, it will be far more complex than it is today.

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FUTURE OF EMPLOYMENT RELATIONS

THE CHANGING CHARACTER, PLACES AND PATTERNS OF WORK have

been the subject of intense policy debate and speculation. Will there be sufficient

paid jobs to support the wealth and health of the nation? Will the employment

opportunities of the future assume a radically different character from the present,

and are we, as some commentators contend, poised to experience a radical re-

drawing of the boundaries between paid and unpaid work? As a consequence of

policymakers, ‘think tanks’ and other visionaries vying to impose their particular

interpretations of the future, there is no shortage of responses to these complex

questions. Commentators typically assert that the forces of globalization, new

technologies and business restructuring are challenging current patterns of

working, but find little else on which to agree. The more pessimistic accounts

suggest that the new millennium will be blighted by diminishing job opportunities

in the economy’s traditional industries and occupations, rising levels of

unemployment and widening social divisions. Others, however, point to

developing shortages of suitably trained and skilled workers to support the growth

of new production and service industries and signal new possibilities for more

liberating forms of work and a better blend of leisure and working time.

IN CONTEMPORARY DEBATE OVER THE FUTURE of employment relations

not enough attention is focused any longer in research on the nature of the power

relationship in the workplace. This is a strategic mistake. The role of trade unions

as voluntary and autonomous institutions committed to social justice in the

workplace is being underplayed. By contrast their function as partners of

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companies in assisting to bring about improvements in productivity,

competitiveness and profitability are perhaps being over-stressed. In the nineteenth

century many craft trade unions sought to justify their existence in a hostile

political economy that questioned their right to exist by emphasizing their role as

stabilizing and respectable forces in the maintenance of order and authority in the

workplace. In the search for legitimacy they argued there was a harmonious

common interest uniting capital with labour that transcended any underlying

division of purpose. The strike weapon and the threat of its use was kept well out

of sight most of the time and yet even the most peacefully-minded unions argued

the case for their independence and autonomy from employers and the state. They

did so because they recognized the needs and demands of workers and companies

were not only not always identical but often based on an unequal relationship in

the distribution of power.

There is no reason to doubt today’s workplaces are also based on a realistic

perception by employers, employees and unions about the nature of that power.

The implicit assumption that lies behind the onward march of individual employee

rights is a tacit acknowledgement of the urgent need for workers to enjoy a much

stronger representative voice. But a number of difficulties arise as a result of this

that few trade unions have yet to grapple with. The most serious problem remains

the often neglected but entrenched nature of trade union structures. Historically our

trade unions have found it difficult to establish rational forms of organisation that

were able to limit competition between them in the endless struggle to gain new

members. By international standards as varied as collectivist Sweden and the free

market United States, Britain’s employees have always tended to have trade

unionism on the cheap with relatively low subscription rates and limited services

on offer. There are few signs of any improvement. But the demands made by

today’s workers now facing the trade unions make them vulnerable to accusations

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of under-achievement. Employees are much more concerned to have an effective

and professional servicing of their individual concerns than in the past. They

expect a greater degree of competence from trade union officials and shop

stewards. But the numbers of qualified people holding positions of authority in the

trade unions to service those demands are far less than they were thirty years ago.

There are now only an estimated 5,000 full-time trade union officers. In the past

trade unions were able to make them more effective by the mobilization of their

collective strength. Now this is no longer possible and we are unlikely to see any

improvement in the degree of leverage trade unions may expect to wield in the

years ahead.

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NEW TREND OF UPGRADING TALENT

A downturn can give smart companies a chance to upgrade their talent.

Downturns place companies' talent strategies at risk. As deteriorating performance

forces increasingly aggressive headcount reductions, it's easy to lose valuable

contributors inadvertently, damage morale or the company's external reputation

among potential employees, or drop the ball on important training and staff-

development programs. But there is a better way. By emphasizing talent in cost-

cutting efforts, employers can intelligently strengthen the value proposition they

offer current and potential employees and position themselves strongly for growth

when economic conditions improve.

Companies can maintain their attractiveness to internal and external talent by using

cost-cutting efforts as an opportunity to redesign jobs so that they become more

engaging for the people undertaking them. A job's level of responsibility, degree of

autonomy, and span of control all contribute to employee satisfaction. Headcount

reductions provide a powerful incentive to use existing resources better by

breaking down silos and increasing the span of control for challenging managerial

roles-thus improving the odds of engaging key talent in the redesigned jobs.

Consider Cisco Systems' approach to downsizing during the last recession. In

2001, as deteriorating financial performance forced the elimination of 8,500 jobs,

Cisco redesigned roles and responsibilities to improve cross-functional alignment

and reduce duplication. The more collaborative environment fostered by such

moves increased workplace satisfaction and productivity for many employees.

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Initiatives like Cisco's succeed when companies focus on redesigning jobs and

retaining talent at the outset of downsizing efforts.

In addition to redesigning roles, companies cutting jobs should carefully protect

training and development programs. These are not only essential to maintaining

workplace morale and increasing long-term productivity, but they also give people

the skills necessary to carry out redesigned jobs that have greater spans of control.

During the last recession, International Paper continued offering classes at its

leadership institute by replacing external facilitators with the company's senior

leaders. This approach not only reduced the cost of delivery but also, thanks to the

involvement of senior leaders, redirected the content of the leadership program by

tying it more closely to decisions and skills affecting the company's current

performance. Similarly, IBM retained its employee-development programs during

its major performance challenges in the mid- to late 1980s. It took the arrival of

Lou Gerstner as CEO and a new strategy to turn the company around, but the

historical investments IBM had made in developing its people helped achieve a

successful turnaround.

Before undertaking widespread layoffs, companies should use their performance-

management processes to help identify strong employees. Companies that conduct

disciplined, meritocratic assessments of performance and potential are well placed

to make good personnel decisions. These companies should also bring additional

strategic considerations to the decisions. They should assess which types of talent

drive business value today and which will drive it three years from now, as well as

which talent segments are currently available and which will be in the future-

keeping in mind, for example, that new MBAs will be equally available in two

years. They should also look at which types of talent would take years to replace or

develop-for instance, skilled electric utility engineers in an environment where

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retirements are dramatically reducing supply. Performance management well

informed by key strategic questions can minimize the negative cultural impact of

downsizing, improve the bottom line, and help identify talented people the

company should try to retain.

Companies that are reducing staff must focus relentlessly on the internal cultural

and external reputational implications of cost-cutting efforts. Although strong

employer brands are resilient, it's difficult to reestablish brand strength once the

culture has been damaged. The way many companies conduct large-scale

downsizing decreases efficiency, morale, and motivation on the part of remaining

employees. It also increases voluntary turnover among high performers and

compromises a company's ability to attract strong talent in the future, as potential

employees wonder how risky it is to take a job there.

Counteracting these tendencies requires creativity. In 2001, Cisco gave generous

severance packages and assistance with job searches to the workers it laid off and

launched a program that paid one-third of salary, plus benefits and stock options, to

ex-employees who agreed to work for a local charity or community organization.

Steps like these protected Cisco's employer brand by attempting to make departing

employees feel better about Cisco and underscored the company's commitment to

its people for those who remained. The results were measurable: employee

satisfaction remained high, and Cisco retained a prominent spot on Fortune

magazine's "Best Companies to Work For" list.

A strong employer brand is also important for companies undertaking selective

recruitment even as they cut personnel costs elsewhere. Using slowdowns to

uncover and hire displaced talent is often fruitful. Studies have shown that

although overall levels of recruitment may level off or even fall, the quality of

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workers hired rises in recessions. And opportunities to find and hire displaced

talent may be particularly valuable during this downturn, as massive downsizing in

the financial-services sector makes available to nonfinancial companies a large

pool of highly educated and motivated professionals who previously might not

have considered jobs outside their previous employers or industries.

Some organizations are moving surprisingly quickly in response to these

opportunities in the talent market. In late October 2008, the US Internal Revenue

Service hosted a Manhattan career fair targeted at displaced financial-services

professionals. More than 1,300 people attended, many standing in line for three

hours to learn more about an employer that offered a newly interesting brand of

"job stability."

Cost cutting during a downturn is often necessary to ensure a company's current

profitability and future competitiveness. Rather than freezing all hiring and

employee-development programs, companies should use this period as an

opportunity to upgrade talent and better engage existing staff. This means

reinventing a percentage of the capital liberated from cost cutting into, for

example, selective recruiting and development programs and in efforts to safeguard

the culture and to redesign jobs so that they are more engaging to the remaining

employees.

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CHANGES IN TECHNOLOGY

Technology may have made things easier for recruiting managers, but it s beginning to show its evil side as managers go overboard with it...

Key learnings:

Technology is a tool that can be used to aid the recruiting process.

Technology cannot replace human touch and therefore cannot be used to build relationships

Technology has indeed been a blessing. The reaction time to any problem has been slashed over a hundred times and leaders, managers and the worker fraternity in general is more connected now than ever before. However, like all good things, the positive streak of technology too can fade if it's taken too far. Critics who play down the role of technology, have always condemned the way technology has eroded the personal touch among people. In addition, they blame it for the way managers use it for the sake of speed and not quality. Amidst the brickbats, technology has emerged as a force to reckon with and has undoubtedly redefined the way business is done.

Technology is secular. It has touched every aspect of business however little it may be. And the human resources function is no exception. In fact the role of technology in the arena of staff management has been incredible and today the function has become completely technology-driven. The function right from the recruiting stage to the exit interview and everything that comes in between is largely driven by technology. While this may be seen as a revolution of sorts by some, for many such aggressive takeover is beginning to take its toll on the efficiency with which the function is meant to be executed. And according to analysts the first casualty is the recruiting function.

Impersonal recruiting: A recent forum on "Technology and Its Application in the Human Resources Function", conducted at the Town's hall, at Vancouver, presented a rather scary picture of what awaits us in the near future. A few

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speakers at the forum unintentionally spelt horror for the recruiting function. They were rather candid about the way they recruit and the role of technology in their recruiting process. One of the speakers went to the extent of saying that thanks to technology there is no real need of meeting the candidate or even speaking to him. Recruiting managers can make their decision by simply exchanging mails!

The trend is indeed horrifying. How can one replace personal relationships that we by virtue of being humans share with everything that we come in contact with? Reducing the potency of a relationship to a mere click of a button can be damaging to the very basis on which an organization is built. If every recruiting manager were to select recruits on the basis of the mails exchanged then the concept of a "competitive edge" or a "differentiating factor" will not be there at all since everybody would be doing exactly the same thing. Moreover in such a technologically-intensive scenario , the need for any other staff management initiative too would seem redundant as people would barely interact personally and even if they did it would only happen in case of a system crash.

The scenario can be nerve- wrecking and therefore it's time recruiting managers wake up and understand that technology is only a tool and it can by no standards be used to replace relationships.

Focus does not stray. When recruiting managers lose perspective of the core issue, the entire exercise fails. In this case, recruiting managers must understand that recruitment is like sales, and they are the salesmen. Their main job therefore is to sell the job And sales is a process that needs human interaction. Hence handing over this process to technology can sabotage the defining purpose of the activity and therefore may not give the desired outcome. Understanding that technology is a mere tool to accomplish the objectives of the sales activity, which is recruiting in this case would help recruiting managers keep technology in its right place.

A typical sales activity needs four basic pre-requisites for its success. These include:

Establish and nurture a relationship Identify customer needs Strategies to overcome difficulties in meeting the needs Complete the sale

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Each of these factors is relevant even as we see recruiting as a sales strategy. Hence recruiting managers must use technology in the third stage where difficulties hampering the activity need to be overcome by use of means that are both time and cost-effective.

Understanding how technology can aid the process of recruiting will help recruiting managers maximize their efficiencies. However, if they let technology drive the process then the intended benefit may fizzle out and the process efficiency would be affected adversely. The best solution therefore would be to integrate the benefits of technology with the recruiting process in a way that helps maximise its efficiency.

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CONCLUSION

The World Competitiveness Report rated India’s human resource capabilities as

being comparatively weaker than most Asian nations. A dramatic shift in

recruitment practices has been taking place as globally pretend Indian companies

as well as global technical services rivals have made India a battlefield of

recruitment for the best workers. The recognition of world class human resource

capability as being pivotal to global success has changed Indian HRM cultures in

recent years. While the historical and traditional roots remain deeply embedded in

the subjective world of managers, emphasis on objective global concepts and

practices are becoming more common. Three very different perspectives in HRM

are evident. Firstly, Indian firms with a global outlook; secondly, global firms

seeking to adapt to the Indian context; and thirdly, the HRM practice in public

sectors undertakings (PSV’S). As the Indian economy becomes more globally

linked, all three perspectives will move increasingly towards a cross verging

strengthening. Interestingly, within the national context, India itself is not a

homogenous entity. Regional variations in terms of industry size, provincial

business culture, and political issues play very relevant roles. The nature of

hierarchy, status, authority, responsibility and similar other concepts vary widely

across the nations synerging system maintenance. Indeed, organisational

performance and personal success are critical in the new era.

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REFERENCES

Google.com

blogs.oneindia.in/24058/15/2/showblog.php

www.management-hub.com/hrmanagement9.html

www.allbusiness.com/human-resource-management/3131796-1.html

Business Today magazine, Jan 10 issue

Money Today, Anniversary issue

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