Name: Riaz Ahmed
Registration Number: 22660
Teacher Name: Suleha Haroon
Subject Name: Human Resource Management
Assignment on: New Trends of Evolution Human Resource Management
HRM department help organizations with all activities related to staffing and maintaining an
effective workforce. Major HRM responsibilities include work design and job analysis,
training and development, recruiting, compensation, team-building, performance
management, benefits, employee motivation, communication, administration, and appraisal,
worker health and safety issues, as well as identifying or developing valid methods for
selecting staff. HRM department provides the tools, data and processes that are used by line
managers in their human resource management component of their job. Effective HR
management enables employees to contribute effectively and productively to the overall
company direction and the accomplishment of the organization's goals and objectives.
Human resources outsourcing is a process in which organization gets an outside party to
perform some or all of their HR functions. Outsourcing can be used for a number of different
HR related activities. Outsourcing certain human resources roles can save an organization
time and money in many respects. While it is not necessary or often feasible to outsource all
human resources roles, outsourcing various functions can help reduce overheads and result in
greater efficiency in some organizations. To save money however organizations must decide
what human resources roles can be effectively outsourced to save money and not impeded
performance or harm the organization. The benefits of outsourcing certain human resources
roles, including payroll, benefits administration and recruitment and selection. By outsourcing
each of these roles an organization can reduce overhead, risk and save valuable time when
conducting normal business operations.
Outsourcing typically reduces the number of human resources staff necessary on hand to
handle ordinary HRM activities (Sims, 2002).
Outsourcing involves "long term contractual relationships" with businesses and external
providers (Lever, 1997:37).
The primary benefit of HR outsourcing is that it will allow you to keep your job because it will
enable you to tackle these more strategic issues. HR professionals need to embrace
outsourcing. They can’t be afraid of it. Outsourcing of HR transactions is a proven way to
reduce costs and get access to a higher level of service.
Cost reduction – economies of scale, automation and process improvement, especially for
Focus – allows HR to allocate time to strategic, not transactional, concerns.
Regulatory compliance – minimizes or transfer legal risk to the outsourcer and obtains
specialized regulatory expertise.
Access to best technologies – mutual benefits to ensure technology is continually upgraded
No available internal resources – provides an HR capability for a company that does not have
one, cannot staff it, or cannot afford a full-time resource, but has reached a size and
complexity where expertise is required.
Outsourcing relationships are increasingly common in human resources. Outsourcing can
provide organizations with multiple competitive advantages, including cost savings. There are
many roles that an organization can outsource to save money. Some of the more common
roles that organizations are outsourcing to save money include payroll and benefits
administration and employee hiring or recruitment. (Lever, 1997).
By outsourcing these functions an organization can maintain a smaller personnel base and
reduce the number of experts needed to manage the human resources function. (Lever, 1997)
The business world is changing at bullet-train speed – technology, the global economy,
increasing regulatory scrutiny, the looming talent crisis, and the recognition that mental
illness is dramatically affecting the workplace. All of these are having a huge impact on the
HRM is ‘essentially a more central strategic management task than personnel management in
that it is experienced by managers (Legge1975)
Suitable HR policies lead to the achievement of the Organization as well as the individual's
goals. HR managers have to manage all the challenges that they would face from recruiting
employees, to training them, and then developing strategies for retaining them and building up
an effective career management system for them. Just taking care of employees would not be
enough; new HR initiatives should also focus on the quality needs, customer-orientation,
productivity and stress, team work and leadership building.
Human Resource Management has evolved considerably over the past century, and
experienced a major transformation in form and function primarily within the past two
decades. Driven by a number of significant internal and external environmental forces, these
emerging trends in HR management realize the growing importance of human resources and
understand the need to build up effective HR strategies to combat HR issues arising in the
HRM is attempting to move away from the routine administration of personnel management
and into a business partnership model, ultimately contributing to the productivity and
financial performance of the firm (Francis and Keegan, 2006).
Talent is one of the jewels of the organization, it includes human capital. The most important
corporate resource over the next 20 years will be talent. Smart, sophisticated business-people
who are technologically literate, globally astute, and operationally agile. Talent really does
“Top software developers are more productive than an average software developer not by 10x,
100x, or even 1000x … but 10,000 xs” (Nathan Myhrvold, former Chief Scientist, Microsoft)
“The war for talent is fierce, and is likely to become more so with the massive number of
employees retiring in the next five years. Top organizations are moving beyond the vanilla
“employer of choice” concept to a more rigorous strategy of attracting and retaining the right
employees through branding.” (Conference Board of Canada)
The Conference Board of Canada predicts a shortage of 1 million skilled workers by 2020. By
2006, for every two workers leaving the workforce, only one will enter. 2.6 new jobs are
expected to be created for every person entering the workforce. Younger workers are now
bosses of the older workers.
The key to attracting and retaining scarce skills is to be, and be seen to be, a first-tier employer
that can meet the needs of high potential/high performance employees.
Traditional workforce planning is being replaced by talent strategies and skills gap analysis.
Once they determine the gap, it becomes clear what talent they need to hire, to layoff, or to
develop or transfer internally. Now is not the time to sit in the ivory towers thinking you know
who your major contributors are?
“These people and the generations that preceded them have known nothing but poverty and
the lack of opportunity. Yet we expect them to be patient, loyal soldiers, and to advance at an
orderly pace. It is time to get real. It is their time now.” (Hemant Mishr.2001)
Today you need to dig deep into the organization to identify the top talent, the high performers
in every aspect of your business. In all likelihood it’s not the people who are the most
politically astute or the most popular.
Traditional marketing practices are going to have to be applied to recruitment. Employer
branding and unique selling points with a strong differentiator are imperative. Look at
strategies such as changing your employer brand from the groan-inducing “we’re a big
successful company” to a company delivering on the promise of continuous learning, work-
life balance, personally-fulfilling roles and innovative reward and recognition programs.
Steve Jobs and consulting firms McKinsey that have advocated the law or "rule of crappy
people," which is an assertion that great people will hire other great people, but mediocre
people will hire even worse people because they are threatened by competent people. I spent
many hours reviewing published research on employee selection, and could find no evidence
that it was true. There is evidence that people like to hire people like themselves. And there is
some evidence that the most competent people prefer people like themselves, and that less
competent people are less picky. But I can't find any evidence that "B players" or people of
average skills and talent levels are afraid to hire people with the same or greater skills.
There is no competitive advantage in exhausted, sick and stressed-out workers. There is
growing recognition that there is a definite link between the work environment and the health
and well-being of its employees.
Organizations are currently becoming more aware of issues related to employee wellness or
well-being (Hooper, 2004) and there is increased public interest in integrating wellness
activities with employers’ responsibilities (Hillier, Fewell, Cann & Shephard, 2005).
Further, employers are now recognizing the connection between employee health and the
This move towards healthy workplaces and empowered employees mirrors trends between
positive psychological states and organizational well-being (Maslach, Schaufeli & Leiter,
2001; Van Den Bergh, 2000).
Specific types of work stress/strain are related to 2x the incidence of mental illness and
substance abuse, 5x the rate of certain cancers, 2x the rate of infection/injuries and 3x the
incidence of heart and back problems. (Shain, 2000)
Over half of Canadians working for large employers feel stressed, one in three feels burned
out or depressed, many are thinking of quitting their jobs, and absenteeism is costing
employers billions each year.
This has led to the introduction of various programmers. They include Employee Assistance
Programmed (EAPs) and EWPs to address wellness issues in the workplace.
According to Berridge and Cooper (1994) an EAP is a programmatic intervention at the
workplace, usually at the level of the individual employee using behavioral science knowledge
and methods for the recognition and control of certain work- and non-work-related problems.
(Berridge & Cooper, 1994, p. 5)
Other authors have described EAPs as programmers that cover the identification, assessment,
monitoring, referral, counseling, and follow-up activities that aim at addressing employees’
problems. (Ramanathan, 1992; White, McDuff, Schwartz, Tiegel & Judge, 1996; Zarkin,
Bray & Qi, 2000).
When an organisation introduces an EWP, it allows employees to take charge of, and
responsibility for, their own well-being. (Derr & Lindsay, 1999)
Wellness programmes are intervention strategies intended to promote the well-being of
employees. They could be curative and preventative in nature. The purpose of introducing a
wellness programme in an organisation is to create an awareness of wellness issues, to
facilitate personal change and health management and to promote a healthy and supportive
workplace. (Anonymous, 2007).
Canadian companies are experiencing the impact of compromised mental health in an
unprecedented manner: 1 in 5 Canadians will experience a mental illness in their lifetime.
Harvard School of Public Health predicts that by 2020 depression will rank second to heart
disease as the leading cause of disability worldwide, and the cost of mental illness in lost
productivity in Canada alone is estimated to be over 30 billion dollars annually. (Global
Business and Economic Roundtable)
Canadians report working at a high speed "all the time," in greater numbers than workers in
17 other countries, according to a new report released by the Canadian Policy Research
Networks. Working continually at a high rate is twice as likely to result in health problems,
including stress. In turn, this leads to more absenteeism and disability claims – both very
costly to organizations.
Long working hours and heavy job demands were the main sources of work stress identified in
a Statistics Canada survey. Poor interpersonal relationships and the risk of accident or injury
were also cited as sources of stress on the job.
The term ‘presenteeism’ has become part of the corporate lexicon, describing employees who
are able to come into work but are inhibited from optimal levels of productivity by ongoing
health issues and lack of desire to engage. This has emerged as a new and growing concern.
Rising mental health claims, primarily related to stress, depression and anxiety disorders, were
the top health and productivity-related concern for organizations in 2005.
When we look in the mirror, we see ourselves as entire human beings – not just people with
jobs and careers, but people with families, friends, beliefs, interests, passions, responsibilities,
worries and futures. We need to look at our people through the same mirror – not just as
employees or colleagues but as total human beings. If companies include Employee Assistance
Programmed (EAPs) and EWPs to address wellness issues in the workplace. They can
improve their productivity and efficiency in the following ways
• reduced absenteeism
• increased presenteeism
• meeting labor legislation requirements
• improved industrial relations
• increased employee performance and productivity
• reduced health care costs
• A reduction in accidents.
Suggest that organizations should approach problems in a structured way, focusing on the
employee and on the organization. The reasoning behind this approach is that the wellness of
an employee can influence the wellness of an organization, and vice versa. (Naidoo and Jano
The success and effectiveness of EWPs depend on a number of factors, including the
rationale, use and evaluation of the programmers. Various researchers emphasize the
importance of a needs analysis to identify the stressors and issues that employees experience.
Organizations should conduct this needs analysis before designing and introducing an EWP.
This will allow them to target issues that they need to address accurately. (Berridge, Cooper &
The support employees receive from their organizations through EWPs presents great benefits
to those who use these programmers. They include increased mental wellness, energy,
resilience, life and job satisfaction as well as reduced stress and depression. (Renaud et al.,
Diversity means embracing people of varied ethnicity, religion, culture, language and beliefs.
But our multicultural mix does not make us immune to the challenges of managing a diverse
Workforce diversity is recognition of the fact that people differ in many ways, visible or
invisible, mainly age, gender, marital status, social status, disability, sexual orientation,
religion, personality, ethnicity and culture. (Kossek, Lobel & Brown 2005)
Different attitudes, needs, desires, values and work behaviors. (Rosen and Lovelace 1991;
Deluca and McDowell 1992; Morrison 1992)
Diversity goes far beyond the traditional employment equity criteria of gender, visible minority
or aboriginal status, or disability. Diversity is not employment equity. Diversity is a business
strategy. The reality is that today’s workforce and the workforce of the future will be made up
of a diverse, complex collection of employees, all with different needs and experiences. And
this is good, because an organization with a broad variety of people with a diverse range of
perspectives is better able to do business with a variety of people, to solve a variety of problems
and to make a variety of decisions for the organization.
There is a strong argument in literature that workplace diversity is a potential source of
competitive advantage for business if managed effectively. (Cassell 1996)
Diverse workforce has better-quality solutions on brainstorming tasks, displays more
cooperative behavior, relative to homogenous groups, and can raise organizational efficiency,
effectiveness and profitability. (McLeod, Lobel and Cox, 1996; Wilson and Iles 1999)
As companies become more global and are using more offshore services, it creates the need
for diversity strategies that go beyond our own national borders. It will take a whole new level
of education, tolerance and a willingness to embrace change. HR will need to provide cross-
cultural support and training for virtual global teams. But diversity is not just about race,
color and creed. Diversity is about managing the demographic and psychographic
characteristics of an evolving workforce.
Demographic trends indicate that the composition of workforce in the western world is
becoming increasingly diverse and consequently human resource managers face more and
more issues in relation to workforce diversity in organizations today. Diversity has several
dimensions such as age, gender, marital status, religion, race, nationality, work styles,
cultures, and values and so on. (ABS 2004).
The challenge for managers and HR is to create an environment in which older, longer-
service employees can continue to be fully engaged in the work of the organization, Continue
to give them challenging work, Continue to give them learning opportunities, Give them a
chance to build a legacy – mentoring, developing others, knowledge transfer Provide more
flexible work environments.
Full utilization of the skills and potential of all employees may enable access to a changing
marketplace by mirroring increasing diverse markets. (Cox & Blake 1991; Gardenswartz &
Rowe 1998; Iles 1995) and improving corporate image (Kandola 1995).
Practitioner and scholarly literature advocates certain best practices in the HRM arena for
effective diversity management. These practices are believed to enhance employee and
organisational performance. (Adler 1986; Deluca & McDowell 1992; Morrison 1992;
Fernandez 1993; Hall and Parker 1993; Schreiber et al. 1993; Grace 1994).
Trends in Human resource management have changed the way we work, as organizations are
more depended on HRM to increase the success ratio in today's competitive global
environment.HR professionals need to step up to these challenges. And make strategies to
overcome these issues by not just preaching the benefits of continuous learning to your
employees. Be continuous learners. Be at the forefront of the latest trends and requirements
and react to them quickly.
Due to globalization, increase in technology, war of talent over the last 20 years, HR
professionals around the world are forced to be more efficient, more effective and more
competitive. They need to respond to the demands of global competitiveness by becoming more
familiar with language skills, cultural awareness and diversity promotion. Today role of HR
professional is beyond the administrative boundries.these professionals are now included in
strategic decision making process because these professionals are linked with all the
department in the organization and they better know what type of talent is required and what
are the methods of retaining these talent for the achievement of organizational goals.
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. Decentralize operations and rely on
self-managed teams to deliver goods in difficult times. Lay off workers in a smooth way
explaining facts to unions, workers and other affected groups.
Effective human resource management is undoubtedly critical to the success of virtually all
firms. Thus its importance is huge in the study of business strategy; which is the system of the
firm’s important choices that are critical to the firm’s survival and relative success
(Boxall and Purcell 2003)