Lecture 04 changing environment of human resources managementDocument Transcript
Lesson: 4 Changing environment of Human Resources Management Contents: Environmental factors of HRM Challenges to HRM Emerging trends Appendix: excerpts of articles, source: secondary slide show Suggested readings after slide show Learning Objective in lesson 4 By the end of this Unit, you should be able to: 1. Clearly articulate the various emerging trends in HRM. 2. Describe the various internal and external factors impinging on HRM. 3. Describe the model of HRM in the given context. 4. Know the strategic relationship of HRM. MS 22B - Eddie Corbin, Lecturer 2In the earlier two lessons, you have learnt about the nature, philosophy, values for whichhuman resource management stands for. You have gone through the extensive materialgiving you an overview of the mechanisms which we use as managers. But just think, dothing turn out to be as we envisaged to, the way we wanted them to be, ALWAYS?? Ifthe answer is in a yes, then you all are in the right track. Yes, we all exist in anenvironment. We all need to consider the environmental factors when wanting toimplement anything. We all require a contingency approach to be more effective in thepresent world. The same holds true for organisations. The purpose of this lesson is tounravel the mystery surrounding external and internal factors that complicate the job ofan HR manager in actual practice.
This is the premise which we will discuss in this lesson. We will cover Environment of HRM. Challenges to the discipline, and Emerging trends. Happy reading!!!Storey (2001) introduces Human Resource Management: A Critical Text by saying:"It is hard to imagine that it is scarcely much more than a decade since the time when theterm human resource management (HRM) was rarely used - at least outside the USA.Yet nowadays the term is utterly familiar around the globe and hardly a week goes bywithout the publication of another book on the subject."But he observes that despite the proliferation of books, journals, conferences, academicsub-groups, etc. the subject remains and always has been from its earliest inception,highly controversial. Specifically, he pinpoints questions about the nature of HRM, thedomain it covers, the characteristics of HR practice, the reach of the subject and itsantecedents, outcomes and impact.Thus you see, an HR manager works in a varied environment. He can only do his dutieswell if he is updated with the changing needs of the employees. And for this he naturallyhas to keep himself abreast with not only the environment in which the organisationexists, but of the environment from which the employees are coming to work.Here, lets take few of the environmental factors which have significant impact on theorganisation. The term environment here refers to the "totality of all factors whileinfluence both the organisation and personnel sub-system" Table -External and Internal Factors influencing the Personnel FunctionExternal factors • Technological factors • Economic challenges • Political factors • Social factors • Local and Governmental issues • Unions • Employers’ demands • Workforce diversityInternal factors • Mission
• Policies • Organizational culture • Organization structure • HR systemsYou must have come across such a table in many of your earlier courses. For, example,Essential of management, organisational behaviour, business environment, etc. So, thislesson will proceed in relation to those only.Each of the external factors separately or in combination can influence the HR functionof any organisation. The job of a HR manager is to balance the demands and expectationsof the external groups with the internal requirements and achieve the assigned goals in anefficient and effective manner. Likewise, the internal environment also affects the job ofa HR manager. The functional areas, structural changes, specific cultural issues peculiarto a unit, HR systems, corporate policies and a lot of other factors influence the way theHR function is carried out. The HR manager has to work closely with these constituentparts, understand the internal dynamics properly and devise ways and means to surviveand progress. In addition to these, the personnel man has to grapple with the problem ofworkforce diversity.All these factors individually or in combination pose challenges to HRM practices andphilosophy. The challenges are: Going global Embracing new technology Developing human capital Responding to the market Containing costs Increasing productivity Managing change Responding to the market Challenge 1 : Going globalIn order to grow and prosper, companies are venturing into new markets and global.Thus, from tapping the global labor force to formulating selection, training, and com-pensation policies for expatriate employees, managing globalization has been a major HRchallenge and will be in the next few years. Take instance of German companies settingup BPO in India.Challenge 2: Embracing new technologyTechnology is forcing firms to become more competitive. At every instance there areinnovation taking place. The rate of change is rapid, turbulent so to say!! We have come along way from applications of Lasers to optic fibres. You yourself can look back andreview what you did when you wanted to know about a institution to what you can donow if you want to decide on a college.
Recent innovations in the form of total quality management, reengineering workprocesses, flexible-manufacturing systems have only one thing in common - serving thecustomer well through improved operational efficiency.For instance, TQM advocates emphasise the importance of achieving greater quality andflexibility at lower cost and waste. You need not sacrifice something in order to giveanother thing. All things are possible, provided you work with a clear focus, i.e.,improving things. Employee involvement programmes, therefore, have become part andparcel of TQM.Competitive benchmarking is the first requirement to effective TQM. Benchmarking is acontinuous process. It is not a one-shot deal because industry practices change constantly.This has a serious implication on the HRM practices. Companies such as Modi Xerox,HDFC, IFS, Infosys, SRF, TELCO, Thermax, and Bombay Dyeing have successfullyapplied competitive benchmarking to meet the rising expectations of customers in theirrespective areas.Information technology has made managers depend less and less on the chain-of-command approach to organizing. For example, with HRIS, every employee with apersonal computer on his or her desk can tap into the firms computer network and getneeded information.HR plays an integral role in any such changes. For example, empowering workers tomake more decisions presumes that they are selected, trained, and rewarded to do so.Performance appraisal and reward systems have to be more team oriented than onlyindividual oriented.Can you find what implications will reengineering work processes and flexible-manufacturing systems will have on the design and implementation of HRM practices andpolicies. Challenge 3: Developing human capitalOrganisations compete through their workforce. This is true in the present scenario where
it all depend s upon how one markets itself. Thus it is the responsibility of the HRM todevelop this resource well and keep it happy and ticking. But how?? Can you recall anyfrom our lesson of OB. But please keep in mind they should be in terms of HRMpractices. Any one??Activity:Find out the activities/schemes that the reputed software companiesadopt to develop and retain their employees Challenge 4: Responding to the marketPsychographics knowledge is a must to survive in today’s competitive world. Thestandards set by the external agencies like the government, the competitors separate thewinners from the losers. “Better, faster, cheaper…..” A company providing such a servicewill be the winner. Thus one needs to be innovative. All this has an implication for HR.For example, re-engineering requires the administrative systems to be reviewed andmodified. Selection, job description, training , career planning , performance appraisal,compensation and labor relations are all required to be changed according to emergingscenario. These will be tackled separately and individually in the coming units. Challenge 5 : Containing costs Investment in a new technology, intellectual capital and efforts for globalization hasincreased pressures on companies to lower cost as well as improve productivity. As youwill all understand among the above investments, labor cost is the largest expenditure ofany organization, especially in service and knowledge intensive companies. Soorganizations have started using approaches such as down-sizing, outsourcing andemployee leasing (read article from Brand Equity, month November) and productivityenhancement. All these has direct impact on HR Policies and practices. Activity—Find about downsizing, outsourcing and employee leasing from the second sources and review the HR implications Challenge 6: Work force Diversity
As the firms are going global, all managers and HR managers specially need to beconcerned about the changes and the diversity in the makeup and the expectations of theiremployees. It has to be aware of their concerns and make sure that the exchange betweenthe organization and its employee is mutually beneficial. The following highlight showsthe summary of social concerns in HRM. Basically the diversity stems from demographicchanges such as age differentiation, equal opportunity to both genders, rising levels ofeducation.Thus HRM needs to manage this diversity by being aware of common characteristics aswell as each individual’s identity. It means not just tolerating or accommodating all sortsof differences but supporting, nurturing and utilizing these differences to give theorganization a competitive edge.Apart from demographic changes, the cultural boundaries create hassles for a HRmanger, because it is the culture which defines the attitudes, beliefs, values and customsof people in a society. Even in an organization, the culture effects how one reacts to achange(for instance leadership styles, and reward system).Thus HR policies and procedures have to take care of the above diversities. Challenge 7: Managing ChangeFood for thought:“In the present scenario, the only thing which is constant is change”Go through the speech of Azim Premji( given at the end of the lesson)—you will findthat managing the change is key to success and managing changing through HR may bechallenging but the best way to be ahead in the market and be a leader. But, manycompanies still fail to do this, the reasons being lack of infrastructure, no vision, insystematic planning, getting comfortable too soon and not institutionalizing the change.Can you relate this to our OB lectures in the last semester??(Unit 4).To manage change, thus all managers need to have a vision—strategic, have opencommunications with all the employees, set clear expectations for performance anddevelop capability. Thus all managers are facilitators in terms of managing change.So we find that the role of HR management is ever increasing. It has taken up theimportant role of a) Boosting productivity b) More responsive and innovative c) More integratedAs we will deal in the coming lesson number 6 how human resource management isrelated to corporate strategy. In today’s world it is a must to be integrated in the system tosurvive. The gist is that HRM will have to be more strategic in nature that is visioning,planning and organizing a way ahead of times. It has to be more pro-active. HR management supports strategic implementation in numerous ways. For example,
HR is today heavily involved in the execution of most firms downsizing andrestructuring strategies, through outpacing employees, instituting pay-for-performanceplans, reducing health care costs, and retraining employees. And in an increasinglycompetitive global marketplace, instituting HR practices that build employeecommitment can help improve a firms responsiveness, as explained earlier. If you go back to lesson number 2, the model given by Beers et al. you willunderstand the importance of being strategic and integrated for HRM. See how eachfactor has an impact on the others. Map of the HRM Territory Stakeholder Interest •Shareholders •Management •Employees HRM Policy HR Outcomes Long-Term •Government •Employee •Commitment Consequences •Community influence •Competence •Individual •Unions •HR flow •Congruence well-being •Reward •Cost- •Org. systems effectiveness effectiveness Situational •Work •Societal Factors systems well-being •Workforce Characteristics •Business strategy •Management philosophy •Labour market •Unions Beer et al. •Task environment •Laws/social values MS 22B - Eddie Corbin, Lecturer 25The aim is to achieve the four Cs’ of effectiveness that is commitment, competence,congruence and cost effectiveness. So, what do you understand from the aboveinformation. Right?? You all are aware of the challenges faced by each system in theorganisation. The best way is to face it rather than avoid them. Don’t you think so too??Attachments:1) 10 C Checklist
A systematic framework designed for Human Resource Management in aBusiness Context based on the ten C model. This framework incorporates tendimensions, each conveniently beginning with C - in the best management-gurustyle. In fact terms beginning with C have a considerable track record in HRM(...) The Harvard model has its central four Cs - commitment, congruence,competence, cost-effectiveness - three of which are incorporated in our tendimensions. (...)The ten dimensions have been chosen because they are allmeasurable in some way and the essence of HRM lies in the tension and HRMhas evolved from a number of different strands of thought and is best described asa loose philosophy of people management rather than a focused methodology. Itis a topic, which continues to attract debate and disagreement. As a consequence,practitioners and textbooks use a diverse and sometimes contradictory range ofinterpretations. We found that HRM has a variety of definitions but there isgeneral agreement that it has a closer fit with business strategy than previousmodels, specifically personnel management. The early models of HRM take eithera soft or a hard approach, but economic circumstances are more likely to drivethe choice than any question of humanitarianism. We concluded with ten keyprinciples that determine the coherence and effectiveness of the HRM approach topeople management.2) High-Performance Management Systems Adapted from Human Resource Management in a Business Context, 2nd edition (2004) In all the debates about the meaning, significance and practice of HRM, nothing seems so certain than the link between HRM and performance. But is it? Karen Legge (2001), one of the most respected and astute commentators on human resource management says: "And what, might it be asked, are the present day concerns of HRM researchers, who (...) are of a modernist, positivist persuasion? In a word, their project is the search for the Holy Grail of establishing a causal relationship between HRM and performance. And in this search some success is claimed, in particular that the more the so-called high commitment/performance HRM practices are adopted, the better the performance’ (Legge, K. "Silver Bullet or Spent Round? Assessing the Meaning of the High Commitment Management/Performance Relationship" in Storey, J. (ed.) (2001), Human Resource Management: A Critical Text, Thomson Learning). She argues that in order to examine the relationship between performance and HRM we need to address three fundamental questions: 1. How are we to conceptualize HRM? 2. How are we to conceptualize performance? 3. How are we to conceptualize the relationship between the two?
Here we will look at HRM operationalised (according to Legges approach) in terms of high commitment or high performance work practices. In practice, unpicking the meaning of high performance management from wider notions of management can be difficult. For example, the US Department of Labor (1998) defines high performance as: "A comprehensive customer-driven system that aligns all of the activities in an organization with the common focus of customer satisfaction through continuous improvement in the quality of goods and services." You will probably have recognized that the roots of this definition lie in Total Quality Management. In the past, the practice of TQM has often been procedural and bureaucratic but the high-performance approach has brought in elements of human relations or soft HRM such as commitment and empowerment. David Nadler publicized the term within his Organizational Architecture approach that focused on autonomous work teams and high performance work systems. Edward E. Lawler III used the term high performance involvement as an alternative to empowerment, advocating the use of small teams of highly committed employees. The Institute of Work Psychology (2001) at the University of Sheffield states that High Performance Work Systems usually involve three main sets of management practices designed to enhance employee involvement, commitment and competencies. They describe these as: 1. Changing the design and conduct of jobs through flexible working (especially functional flexibility - broadening the pool of who does what through training), teamwork, quality circles, and suggestion schemes. 2. Ensuring that employees are given the knowledge and competences to handle high performance work through teamwork training, team briefings, inter-personal skills, appraisal, and information sharing. 3. Resourcing and development practices designed to attract and keep the right people with the right motivation. These include some guarantee of job security, an emphasis on internal selection, sophisticated selection techniques, and employee attitude surveys with feedback to the workers involved.Here there are further indications of an integration of 1970s and 1980s managementtechniques together with a certain amount of repackaging for the 21st Century.3) Web-Based Human Resources
Alfred J. Walker (Editor) Today’s Human Resources function is being transformed by the Web. Web-Based Human Resources shows HR professionals how to use online technologiesto offer more services to more employees at a lower cost. It offers concrete tips onwhich approaches are most effective in small, medium, and large organizations;provides a framework for transforming HR from a support function to onecentered on organization-wide productivity and learning; and explains all the keyweb technologies and trends that are changing the HR function for the better!Web-based HR SystemsWalker (Walker, A.J. Best Practices in HR Technology in Web-Based HumanResources, McGraw Hill, 2001) states that if HR technology is to be consideredsuccessful, it must achieve the following objectives:Strategic AlignmentMust help users in a way that supports the users.Business intelligenceMust provide the user with relevant information and data, answer questions, and inspirenew insights and learning.Efficiency and effectivenessActivity:What is the difference between Efficiency and effectiveness? Explain with examples.Must change the work performed by the Human Resources personnel by dramaticallyimproving their level of service, allowing more time for work of higher value, andreducing their costs.But, despite extensive implementation of Enterprise Resource Planning (ERP) projects,Human Resource Information Systems (HRIS), and HR service centres costing millionsof dollars, Walker concludes that few organizations have been entirely happy with theresults. Why is this?Cutting HR staff, outsourcing and imposing technology on what was left, hasimplemented many systems. Arguably this approach should, at least, have cut costs. ButWalker argues that survey results demonstrate that overall HR departments have actuallyincreased their staffing levels over the past decade to do the same work. Moreover heconsiders that:"Most of the work that the HR staff does on a day-to-day basis, such as staffing,employee relations, compensation, training, employee development, and benefits,unfortunately, remains relatively untouched and unimproved from a delivery standpoint."The HR Function
Walker advocates the business process re-engineering the HR function first, then E-engineering the HR work. He suggests the formation of re-engineering teams ofproviders, customers and users to examine the whole range of HR activities - includingthose, which are not being done at present. The end product is a set of processesorganized into broad groupings such as resourcing, compensation or training anddevelopment. These processes should then be examined by the re-engineering team andredesigned to:1. Be better aligned with organizational goals.2. Streamlined so as to be cost-effective in comparison with the best in class.3. Have a better integration with other processes.From this redesign comes the picture of a new HR function. What next? The organizationcould be restructured and the tasks handed out existing or new staff. But Walker arguesthat the most effective approach is to introduce new technology to deal with theredesigned processes.4) Learning OrganizationsWalton (1999) states of the concept of the learning organisation: Perhaps more thananything else it has helped to put HRD on the strategic agenda. But the concept isevolving and remains fairly abstract or, as a senior consultant engagingly described it:quite fluffy. What follows is necessarily a considerably simplified consideration of theconcept.The seminal ideas of the concept come from two main sources: Pedler et als (1991) ideason the learning company and Senges (1990) five disciplines. According to Senge(1990) learning organisations are organisations in which:- The capacity of people to create results they truly desire is continually expanding;- new and open-minded ways of thinking are fostered;- people are given freedom to develop their collective aspirations;- individuals continually learn how to learn together.This set of goals may seem somewhat ambitious but Senge contends that they can beachieved through the gradual convergence of five component technologies, the essentialdisciplines that are:The definitions of the concepts used above are:* Systems thinking. People in an organisation are part of a system. Systems’ thinking isa discipline which integrates the other disciplines in a business. It allows the whole(organisation) to be greater than the parts (people, departments, teams, equipment and soon).* Personal mastery. This discipline allows people to clarify and focus their personalvisions, focus energy, develop patience and see the world as it really is. Employees whopossess a high level of personal mastery can consistently generate results which areimportant to them through their commitment to lifelong learning.* Mental models. These are internalised frameworks, which support our views of theworld, beliefs in why and how events happen, and our understanding of how things,people and events are related. Senge advocates bringing these to the surface, discussingthem with others in a learningful way and unlearning ways of thinking which are notproductive.
* Building shared vision. Developing shared pictures of the future together so thatpeople are genuinely committed and engaged rather than compliant.* Team learning. Senge sees teams as a vital element of a learning organisation. Hencethere is a great significance in the ability of teams to learn.Source: adapted from Alan Price (2000) Principles of Human Resource Management:An Action-Learning Approach, Blackwell, and Oxford.Food For Thought:No organisation can survive for long if it is not a learning organisation5) Participative management: an excerptA snapshot today shows us a profession on the cusp, fully feeling the tensions ofthe fault line as it tries to sort its way into the future. I’d like to focus on 5 of themain tensions that make up the fieldSegregation vs. Integration of People Practices. There are at least 17 major areasof human resource in business today:-Organization structuring and design-Selection/succession-Orientation-Communication-Goal Setting: Individual-Goal Setting: Team-Performance Feedback-Career management support-Individual Learning support-Organization development-Job/work design-Benefits-Pay/rewards systems-HR information systems-Individual assessment-Organization assessment-Performance supportIn the past, practices in these areas reflected different philosophies. They were plannedin isolation. They used different language about work (tasks, results, outputs, outcomes,duties, key results areas, etc.) and about people (knowledge, skills, values, attitudes,commitments, competencies, capabilities, abilities). The models they used for similarjobs were often different – such that the selection, development, succession, andperformance specs for the same job might be different. The segmentation became sopronounced that even means to ends (e.g., competency studies) became ends inthemselves (“I want a competency model for this job,” not “I want to improve the fit ofpeople to this job.”)The pressure today is increasing for a more systemic and ends-focused view. Technology
with its need for a common language and interoperability – increases the pressure andopens up more integration possibilities. Integration will inevitably win. But today’sorganizations live with the job half-done – or struggling to get under way.Closed vs. Open People Practices. Closed practices fit the authoritarian worldview.Executives and staff people did the thinking, created the procedures and controls.Employees worked within those boundaries. This often meant secretive selection andcareer processes. The boss and the human resource professional were in charge of anddid the work of individual and team goal setting, pay, and performance feedback,individuallearning, and assessment, career management. Individuals played a more receptive role,accepting important decisions made behind closed doors – hearing little about therationales.Today, in a far more transparent world, these systems are opening up. This is largely afunction of the nature of the work: knowledge work requires active individualparticipation. And, as the workforce becomes more aware of its negotiating power,people also demand to know the basis for decisions. They challenge arguments that thesepractices must be secret or controlled by the few.Operational and Administrative vs. Strategic and Facilitative Role of HR Professional.David Ulrich has long pointed out that the HR profession must spend more time instrategic and cultural work, and less in administrative and operational. He points out thatmost HR people in the past managed records and administered services like pay andtraining programs. He notes that HR professionals also did a lot of the day to daymanagement work, handling performance problems and discipline, doing various kinds ofcounselling, intervening on union-related issues, policing policy.But, we are now in a knowledge era characterized by accelerated change, where peopleissues have become central to organization success. Shifts in business strategy,acquisitions and divestitures, new alliances, globalization, new technologies – these allrequire strategic thinking about human resources. Also, something has to happen to helpchange organization cultures – and change them dramatically!! Human Resourceprofessionals are the logical choice for these roles. But they have to shift emphasis. Thisimplies that HR professionals spend their time as strategists, HR system designers,culture change facilitators, coaches, consultants to management on performance,researchers.Fortunately, technology and sources outside the business are able to take over the recordkeeping and more procedural functions of HR. And, it is appropriate now to turn over theday-to-day people management to managers, and to the people themselves. But, thecompetencies and mindsets of human resources professionals don’t always fit the newwork profile. In fact, the administrative skills of the past actually have a negativerelationship with the emerging requirements.From Dependency to Partnership. We are beginning to realize that Human Resourcepractices are not a staff function. Nor, are they something managers do to or forworkers. Practically speaking, this has always been true. Many years ago, CanadianAlan Tough pointed out a startling fact that relates to most areas of work life: mostlearning activities are self-directed (he said 70%). 20% are directed or significantly
supported by others who are NOT professional helpers (perhaps managers, colleagues,parents, friends, children). Professional helpers direct only about 5% of our learning.And this 5% includes counselors as well as teachers. Tough pointed out that the self- andother directed learning was often not very efficient. This, combined with the growingawareness of what it costs business to do a sloppy job of learning, helping, andknowledge transfer creates the need for a radical shift. Formalizing the learning andcoaching role appears to be a key to increased innovation, improvement, and problemidentification and solving, and to the rapid spread of knowledge throughout the firm.This formalization does not mean that the old “boss” now becomes “coach.” While therewill undoubtedly be formal coordinating and coaching roles in the future, everyone in theknowledge-based organization is becoming both coach and learner. Neither role isrestricted to a person or job. This is clearly true for other roles, like “manager,”“strategist.” In a knowledge-based organization, such roles become imbedded in thework itself. Hard role distinctions and domination patterns soften and blur, becomeinterchangeable like the matter and energy of the Einsteinian universe. The workrequires this flexibility. It’s only our mindsets that prevent the shift here.The leverage and interchangeability of the learner/coach and manager/worker roles – theascendance of partnership styles of relationship --is increasingly clear. But, the challengefor the HR professional is how to make these roles more conscious and competent. Cuspdynamics make this difficult, though, since many individuals and managers don’t havethe skills or focused desire to play their new roles. Many HR professionals also strugglewith the apparent loss of power. And they face the task of reengineering of all peoplepractices so that they are more self- managing. It’s a tall order.Utilitarian vs. Generative View of Human Resources. The term “human resources”carries one bias of this apparent dichotomy. In the mechanistic, more authoritarianworldview, people are resources in the sense of being optimized and even exploited.Today, the more utilitarian view, often based on behaviorism vies with a more generativeview based on humanistic philosophies and psychologies. Debates rage between factionssupporting “Performance Consulting” in the sense of “Performance Engineering” andfactions supporting more learning-centered view. “Will we do job-specific training, ormore broadly based education?” we ask. Should the learning specialist become aperformance engineer and systems consultant or focus on unleashing the capacity ofpeople so that they can do that work themselves? Is the human being in the workplace tobe treated as an effect or a cause? And, is there a higher order of integration where wecan act as through both are true?The Challenge?The shifts change things for everyone. But what about the HR professional? Perhaps thedistinctions within HR (i.e., between HR and HRD) are too fine. In a knowledge world,excellent people practices are driving forces for success.There are clear and emerging challenges for HR people. Here are some:Reorient Personal Competencies and Work. The emerging workplace scenario requiresmore strategic, systemic, business-savvy HR professionals. It demands competence inintegrated people systems design, participative process, and change facilitation. And, weneed to be able to function fully in the information/knowledge world – using its
technologies. The HR professional also must have the emotional intelligence to be ableto lead while standing on an explosive psychological fault line.Redesign the People Practices. All the HR practices of the business must be broughtinto congruence with the emerging realities of work and life, among them: transparency,interoperability, generativity, virtual relationships and offices, self- management,strategicalignment, customer focus, flexibility, rapid knowledge transfer, global relevance,simplicity and clear added- valuePrepare People for New Roles. The New World of Work shifts the relationship paradigmfrom domination, adversarialism, and dependency to self-management and partnership.This requires new roles and orientations by everyone. HR professionals must helpprepare people to thrive and contribute in the new world of work. They must teacheveryone how to be successful with the new people systems.Provide Useful Research for an Expanded Audience. Now that everyone shares in thework of HR – as self- managers, as coaches, and as designers – everyone is a potentialuser of HR research. Research results can also help accelerate change at the cusp!! So,research results have to be accessible – even brought -- to everyone. Beyond that, weneed research showing cause-effect connections between people practices and importantdependent variables like productivity, revenues, profitability, customer satisfaction andretention, and worker attraction and retention.Some sample lines of inquiry include: link of open system practices to economicperformance; updated information about the extent of self- managed learning, third-party(non-professional) assisted learning, and professionally structured learning; nature andeffect of roles played by HR professionals in high performance and low performanceorganizations; the factors associated with successful and unsuccessful deliberate culturechange programs; the people practice differences between high and average/lowperforming organizations; factors associated with speed of adoption of new humanresource practices; critical success factors for HR professionals in atransitioning/transforming organization; the economic impact of authoritarian vs.participative styles of managing; the %-ages and key characteristics of those whosuccessfully transition into the new world of work; ratios of managers to workers andthe relationship with key measures of firm success.Support, Even Drive, all Aspects of Culture Change. Institutional leaders today facetremendous pressures to perform in the face of shifting rules and performanceenvironment. This is true in all sectors. It is true in all nations. Unfortunately, thenatural and expedient reaction is to cope and go for short-term returns. There may be lipservice to more fundamental change – change that may take energy today, but will lead toa productive future that is more aligned with the new rules of the game. But, mostleaders are too absorbed in today’s issues to steer the large-scale changes that are neededto safely make it through the cusp.The HR professional becomes the “de facto” steward of culture change – learning aboutits dynamics, finding out where to put the strategic dynamite, and even jumping up anddown to create little movements along the fault line before the forces build to catastrophiclevels and a destructive earthquake occurs.
To Jump or Not to Jump?The world is changing dramatically. The workplace is changing radically. As people –the knowledge resources in a knowledge world -- move into the fore, human resourceprofessionals assume new roles and a new centrality. But, the tectonic plate of theemerging world has only begun to show itself. Most of it is underground, pushingagainst a great fault line – the cusp of change. Great forces are at work, and those of uswho dare to reach for them and help unleash them into the future need a lot of courage.Why? Because it is not always clear when and where to jump up and down, or, if wechoose to use dynamite– what its effects might be.It’s clearer all the time, though, that the fault line is but an indicator that major andinexorable forces of change are at work. So our actions will only help accelerate andshape the inevitable. As Obi Wan Kanobe said in the first Star Wars episode, “May theforce be with you.” The force IS with HR for the future. AND, we are in a uniqueposition to influence and use – if not control it.Now let us learn a few lessons from Azim Premji on theChanging world:
External Environmental Influences• Technological factors• Economic challenges• Political factors• Social factors• Local and Governmental issues• Unions• Employers’ demands• Workforce diversity Internal Environmental Influences• Mission• Policies• Organizational culture• Organization structure• HR systems
CURRENT CHALLENGES to HRM!! Increasing productivity Going global, Managing change, Developing human capital, Responding to the market Challenge 1: Going globalImpact—trade agreements and globalmarkets Effect—balancing a complicated set of issues related to different geographies, cultures, laws, and business practices
Challenge 2:Embracing New Technology Change is constant Recent Changes involves: TQM Reengineering FMS Challenge 3: Developing human capital § Individual’s knowledge, skills, and capabilities that have economic value to organization• Managers need to ensure that employees have developmental opportunities to increase their capabilities
Challenge 4: Responding to the market § Total quality management (TQM) § ISO certification § Benchmarking• Re-engineering (business process redesign) Challenge 5: Containing costs § Downsizing § Outsourcing
Challenge 6: Workforce Diversity A. DEMOGRAPHIC CHANGES B. CULTURAL CHANGES DEMOGRAPHIC CHANGES• 4 Diversity of workforce• 4 Age distribution of workforce• 4 Gender distribution of employees• 4 Rising levels of education• Changing nature of job and work
CULTURAL CHANGES Employee rights• 4 Ethics• 4 Privacy concerns• 4 Attitudes toward work• Balancing work and family Acquisition• HR Planning• Internal and External Staffing• Employee Orientation and Socialisation
Key Strategies for successful businesses in the Future Recognising the value of HR Missioning and Co-missioning Career centred and motivational systems Homeostasis: Internal and external balance Challenge 7: Managing change § Reactive or proactive response to change• Most change initiatives fail due to people issues• • Change not tied to business strategy• • Lack of leadership for managing change• • People are afraid of the unknown
Suggested Readings:C.B. Mamoria and S.V. Gankar, A text book of Human Resource Management,Himalaya publishing House, 2003.K. Aswathappa, Human Resource and Personnel Management: Text and Cases, TataMcGraw-Hill Publishing Company Limited, New Delhi, 2002.V.S.P. Rao, Human Resource Management: Text and Cases , Excel Books, New Delhi,2002.Gary Dessler, Human Resource Management, Prentice-Hall of India Private Limited,New Delhi, .Lawrence S. Kleiman, Human Resource Management, Biztantra Innovations inManagement , New Delhi, 2003.Arthur Sherman, George Bohlander & Scott Snell, Managing Human Resources , AnInternational Thomson Publishing Company.Edwin B. Flippo, Personnel Management, MacMillan India ( 6th Ed. 1984)Charles P. Greer, Strategic Human Resource Manager: A General ManagerialApplication, Pearson Education Asia, 2001.Arun Monappa, Managing Human Resources, MacMillan India, 1997.Robert L. Mathis & John H. Jackson, Human Resource Management (9th ed. ) South-Western College Publishing Thomson Learning, 2000.