Modern hr trends


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Modern hr trends

  3. 3. □ INTRODUCTIONIn the past the business environment, trading patterns and markets werestable, technology was static, customers were brand loyal, speed in gettingto market did not matter, competition was limited to sectors and regionsand hierarchies were generally accepted in all walks of life. Since 1960’sthe world has witnessed a tremendous change. Customers desire thatbusiness do it better, faster and cheaper. The employees want to controlmore than the “ stop” button on the assembly line. The twentieth centurysaw nations around the world become part of the global village, withtrade barriers between them reduced or removed completely.Globalization of trade and economy are taking deep roots in developingcountries .The holistic paradigm shift to a single global company hasopened up new economic opportunities. Events of the last five years of theprevious century have focused attention on knowledge industries. Qualityhuman resources have therefore become an important base with which torespond to the emerging environment.A look at the trends in managing people reflects that attracting, managing,developing talent and retaining people has emerged to be the single mostcritical issue in view of the enormous opportunities spun off by themarket. The knowledgeable professional is innovative, business savvy,quick on the uptake, has an instinctive ability to network and possessesunbridled ambition. He is propelled by an urge to experiment, scan newavenues that can spur his creativity. The knowledgeable professional willbring a qualitative change in an organization, which has strong values,robust performance ethic and provides challenging work. This has forcedthe companies to proactively take measures on three fonts. First,companies create an organizational atmosphere where talent can bloom.Second, they put in place systems that help to benefit from their potential 3
  4. 4. and third, they build a reward and recognition mechanism that provides value to the employees. The more traditional usage within the corporation and business refers to the individuals within the firm or agency and to the portion of organization that deals with hiring, firing, training and other personal using typically referral as ” human resource management”. Pakistan is a developing country with a low literacy rate .It lacks the infrastructure and resources to enhance its human resource capital. The private sector contribution towards the human resource development particularly at middle and lower levels is negligible. Thus it is the public sector, which mainly caters for the human resource development at the aforementioned levels. In the private sector there are well-established and well-reputed institutions providing quality education in all spheres of human resource development but there are very few and expensive. Only the rich can benefit from these institutions. Similarly the government has institutions spread over length and breadth of the country but too less for everyone to benefit. However the overall quality of the trained human capital is good and can be favorably compared with any multinational organization working within the country and abroad. The succeeding paragraphs highlight the modern trends in HR management at international and local levels HUMAN RESOURCE MANAGEMENT RESPONSIBILITY The major purpose of the HRM is to increase and improve the productive contribution of personnel to the organization in more ethical, social and administratively responsible way. This purpose emerged from commonly called industrial relations, personnel administration, industrial psychology and personnel management. HRM is not just another personnel management fad. Research shows that its aim is to create a whole 4
  5. 5. organizational culture that binds workers to the company’s objectives with full professional commitment integration and quality work. They perform following functions:-a) Selection and Recruitmentb) Dealing with Redundancy.c) Industrial and employees relations.d) Maintenance of personnel data and record.e) Employee’s benefits and compensation.f) Confidential advice to the workforce in relation to work.g) Career management and development.h) Competency mappingi) Performance Appraisal Periodical and annual.a) SELECTION AND RECRUITMENT: The performance of any organization largely depends on its employees and leadership available at various tiers. If they gel well as a team they will produce good results. On the contrary if the relations are acrimonious the results achieved will be disastrous. Putting in place a winning combination for any organization is very important factor for its success. To achieve this objective the human resource managers have to lay down the job description and selection criterion for each appointment and secondly to select a suitable person available in the market. The jobs are widely advertised on electronic and print media. The organizations also have their websites that give further details including the companies profile. The applicants are asked to send their CV’s on line. The HR managers get a wide choice for selection. The best ones are selected. Some organization carryout selection through videos. The selection interviews are conducted by technical experts who can be from with in the organization or hired from the market. This procedure is followed 5
  6. 6. internationally as well as locally in most of the companies. However some companies particularly in the public sector still follow the old procedures where in the merit becomes the first casualty. Some organizations in the private sector also hire people on the basis of personal knowledge and references without advertising the job and without specifying the selection criteria.b) EMPHASIS ON TEAM WORK: Importance of the teamwork is getting wide recognition. The managers think that no individual can perform a job individually and in isolation. It has to be teamwork. Thus emphasis on teamwork is getting due recognition. The companies have designed compensation structure, which rewards team performance in addition to individual performance. This is being practiced internationally as well as locally.c) IMPROVEMENT IN QUALITY OF WORK LIFE: Companies are constantly striving to enhance the quality of work life and also the personal life of its employees. The facility is also extended to the families. These facilities also include in house health clubs, yoga and meditation centers to relieve stress, sports and cultural activities, employees get together with or without families, day care centres and many more facilities are being provided by the companies. Some local companies are providing these facilities while most are still following the old system wherein improvement in quality of work life is not given any importance. However there is a realization and the change for the better is expected sooner than the later.d) IMPROVEMENT IN INTERPERSONAL SKILLS: During the past the top down communication model was being used for passing the orders and instructions. This is undergoing a major change 6
  7. 7. .The companies are now encouraging people to voice their opinion and feelings. In addition the companies hold open house sessions, mentoring on line chats. Internet have emerged to be communication enablers.e) CHANGES IN THE NATURE OF THE SOCIETY: The society has undergone a revolutionary change during the last one decade. Unprecented changes have happened in the western society. Technology advances are transforming communication and access to information .The retired population is growing while the working population is diminishing, global economies are increasingly becoming interdependent, the ethnic and religion mix is transforming, the divide between haves and have not is widening, decision making has become very complex, preference to individuals rather than the family groups, increasing customers and employees demand and climate of a change and uncertainty have made the job of HR managers very challenging and difficult. These changes have taken place mainly in the developed world. The developing countries like Pakistan have also witnessed the change. They are also very seriously thinking of measures to cope with today’s challenges.f) CHANGING IN THE NATURE OF WORK: The changes in the society have significantly impacted the nature of work. There is a trend towards flexible working to include part-time, working from home and mobile office. Decreasing job security, company loyalty and unemployment are encouraging mid-life career changes and self employment. Demographic changes and global trades are leading to sectoral shifts from manufacturing and production to service leisure 7
  8. 8. industries. There are ever increasing pressure to work in collaboration and to establish partnerships. Private sector organizations are becoming more powerful and influential in area previously controlled by the public sector such as pension, transport and health care. This trend is slowly and gradually finding its way in some private corporations.g) CONCEPT OF TELEWORKING: Teleworking or telecommunicating, a rare privilege in 1990 has taken work places by storm. A giant computer company repots that 55% of its employees not only telecommunicate, they work from home all the time. New York city publishing company allows telecommuting two days a week and employees can bargain for more. This is in vogue around the world, however its use in Pakistan is very rare. The companies prefer to have the employees at their workplace rather than at home. Never the less that time is not far away when telecommunication will be introduced.h) FLEXIBLE WORK HOURS: In the developed countries the concept of flexible time is taking roots. Flexible work hours, flexible four-day workweeks, flexible time off, fix appointment and the most important trend of all; paid time off (PTO) allows employees to take time off when they need the time as it consolidates sick leave, personal time and vacation time into a bank of days, for employees to use. Additionally trends such as bringing baby or the family pet to the office also fall within this workplace flexibility. This trend has not yet been introduced in Pakistan. 8
  9. 9. i) WORKING TRENDS: The employees remain available all the time through the use of technology. They shop at workplace and take brief break to play on line games. They do their banking at work and their work accounting at home. To compensate the use of the office time for personal work the employees work at home. The new generation of employees never stop working. Although this interferes with downtime, relaxing time and work-life balance yet most employees see it as a way of life. This is a common practice in Pakistan as well.j) IMPACT OF TECHNOLOGY: No HR trend list will be complete without an explicit mention of the impact of technology on all aspects of management .The technology has transformed the way in which HR managers inter act with employees. Safeguarding sensitive information about the employees and the company’s business has become very essential. The HR managers need a plan to prevent it. Therefore the HR managers have to be very well versed with it to enable them to effectively control it. The information stored has to be protected to prevent its theft .The impact of technology both positive and negative is being observed in the country. In fact there is hardly any company where technology is not being used beneficially. Latest technologies are being need in Pakistan both in public and private sectors. Infact the use of technology in Pakistan is at par with any developed country all over the worldk) EMPLOYEES TRAINING AND DEVELOPMENT: This decade has seen the rise of technology-enabled opportunities for training, employee development and training meetings and seminars. 9
  10. 10. Podcasts, teleseminars, online learning, screen capture and recording software and webinars provide employee development opportunities. Additionally, during this decade, as the technology-enabled delivery options expanded, so did other training and development opportunities and definitions including increased expectation for learning transfer to the job. On line learning, earning an online degree or credits and all forms of web enabled education and training provide options that employees never had when training occurred in the classroom. Employers are saving millions of dollars in employee travel expenses and the employee’s access to the training does not walkout the door at the seminars ‘s end. This is the decade when employers experiment with classroom training in a virtual world called second life. You can expect even more progress and experimentation in the years to come. The corporations in Pakistan dedicate a specified budget for the development and training of the employees.l) IMPACT OF SOCIAL SECURITY SCHEMES: The government and employees are at logger’s head as regards the employees benefit scheme. Particularly the health policy, bonuses, insurance employees are more powerful. It also allows the workers unions to go for strike in order to compel the employees to come to the terms. This is a nightmare for the HR managers. They have to really demonstrate their management skills to arrive at a reasonable benefit pakage. In Pakistan this is a serious problem both in the public and private sectors. This has adversely affected the quality of work and the relations between the employer and the employees. 10
  11. 11. m) THE TREND OF GLOBALIZATION, OUTSOURCING AND OFFSHORING: Availability and access to latest technologies lower taxation rates in other countries, availability of trained and cheaper manpower have encouraged the business houses of developed countries to relocate their business in developing/under developed countries. This has benefited the both .The company’s also resort to outsourcing where the trained manpower is available cheaply. The trend of globalization, outsourcing and off shoring has posed a very big challenge to HR managers who have to hire and manage employees all over the world. They have to remain in touch with local employment agencies and also learn, respect and obey the laws and custom of the host countries. Some leading companies of Pakistan have also resorted to globalization, outsourcing and off- sharing. They are doing it successfully as well.n) EVALUATION OF PERFORMANCE: The employer all over the world like to evaluate the performance of their employees. This is very important to gauge the company’s efficiency level. The HR managers work very closely with the leadership at different tiers to implement the annual evaluation plan. In Pakistan the leading companies have this system in place. However mostly the employers do not bother to reduce to writing the annual performance of the employees. The HR managers do maintain personal data of the employees that is periodically updated but it does not have any performance evaluation system in place. 11
  12. 12. o) REDUNDANCY: All organizations whether public or private are passing through difficult and uncertain times. The recession in the global economy and the related financial crisis are having a great impact on both the government and private sectors. HR managers reacted to this crisis by large-scale redundancy program and also by freezing the new employees. HR managers have to rationalize the cost reduction through down sizing and other measures. They have to also ensure that trained manpower is retained and the redundant employees are employed elsewhere. In order to regain the confidence of the employees the HR managers have to reassure the employees that they are the most valued assets of the company. This is a very important and difficult responsibility of the HR team. In Pakistan the downsizing in public and private sectors has drawn very strong reaction from the employees. The employees have resorted to strikes and protest. They have also gone to the courts to get their legal rights. The HR team serves as a link between the management and the employees. The opinion of the senior employees in the hierarchy of any organization should be valued in the light of their experience and professional expertise. HR needs to make some appropriate recommendations to the management so as to get the company out of the unforeseen and unpleasant business situations.p) CONCLUSION: The 21st century has brought with it enormous opportunities but also enormous pressures. The companies will have to improve the productivity of their employees to ensure the industrial development. There is a worldwide consensus on human resource being one of the major means of increasing efficiency, productivity and prosperity of the 12
  13. 13. company. As the time moves on steadily and relentlessly there is a needfor the manager to review the challenges of the latest trends.Realistically, it is now been said that we have moved to the era of not justchange, but an accelerated rate of change. As compared to the past the 21stcentury corporations are getting to be globally market driven ones whichinvest “anywhere and share every where” in their conceptualization.At a practical level we must anticipate and prepare for the likely HRchallenges in general that exists, or may be expected in the coming future.The future of HR manager will have to show their professional excellenceto handle the issues of recruitment, impact of technology, social problemsof modern era, improvement in the quality of life and training anddevelopment of the employees. Organization seeking to change theproduct or technology to meet the demands of competitive scenario willlargely depend on the expertise and resumefulness of the HR managers toprovide qualified and competent manpower. Another challenge which Hrmanagers will be faced with pertains to the welfare and morale of theemployees. Competitive salary package, Healthy living environments,recognition of the employees contribution and retention of experiencedworkers in the organization will go a long way in achieving the desiredtargets. The HR managers will have to act as a bridge between themanaging director and the employee and maintain a judicious balancebetween the two without compromising the interest of anyone. Thisindeed is a tall order for HR managers to handle in the fast changingworld. 13