Global companies are facing challenges from volatility, diversity, and rapid technological change. This requires innovative human resource management practices to develop skills in employees and align human capital with business strategies. New techniques like the People Capability Maturity Model evaluate employee performance and maturity. Training programs are also evaluated through models like Kirkpatrick's to ensure learning outcomes are met. HR analytics has emerged to measure how HR activities impact business outcomes, helping companies develop strategic workforce plans. Innovation is crucial for companies to gain competitive advantages and sustain success in this dynamic environment.

1. GLOBAL ADVANCEMENT IN HRM – INNOVATION AND PRACTICES
Introduction
With the onset of the new millennium the business houses has witnessed a very speedy
transitional phase in terms of how corporations and its agents works competitively in a given
environment which is volatile and dynamic and also susceptible to global threats. The Darwinian
mantra of “Survival of the Fittest” is the core challenge the corporations are facing and thus
requires regular creation of learning and innovative strategy to maintain continuity, to implement
best ideas, understand the market and the customers, frame result oriented goals, eliminate
technology gap and develop next generation products and process through cultivation of human
resource. The expected changes in the business environment due to globalization, workforce
diversity, demographic change in the workforce and more focus on technology, profitability and
intellectual capital has made he corporations think about something different. It transforms the
old conventional practices and methods into a new cover by introducing innovative human
resource practices such as accountability, re-designing the human competencies, looking deep
into the business context and the ability to increase values of its practices to specific
stakeholders.
The most important thing which corporations need to address today is its human assets and how
they align their values through business strategies towards organizational growth. Generation Y
at a young age are subjected to immense pressure to acquire skills and became candid,
innovative, industrious and visionary to remain themselves employed and climb the new heights
of success. Continuous learning, critical thinking, innovative ideas through brainstorming,
communication and networking are the core challenges the Generation Y confronts in technology
driven corporations. Never before the needs were so felt but with the expansion of trade,
migration and displacement of workforce, cross-culture influence and dissemination of
knowledge has provoked these new generation workforce to acquire these skills to keep
themselves abreast within and outside the organization. Inculcation of new techniques like HR
Scorecard, PCMM model (People Capability Maturity Model), Bell Curve for performance
management, Business Process Re-engineering and HR Analytics and Metrics has transformed
the whole idea of gaining competitive edge and achieve success in their respective domain areas.
Even CSR( Corporate Social Responsibility) has now become an integral part of the corporate

2. strategy and the twin combination of advocating the innovative practices in re-surrecting
organizations profitability through people and then giving back to the society in form of welfare
is based on the philosophy of “Sarvaloka Hitam” which means the well being of all the
stakeholders.
Discussing one of the global innovative practice implemented by many software companies the
PCMM outdated the pre-conventional practices in measuring the performance of their employee
and whether they are matured enough to handle both the external and internal exigencies of the
present and the future. The PCMM model was drafted in a form of a matrix where it embodies 5
maturity levels, which institutionalizes the effective implementation in the key process areas.
The matrix starts with the initial stage describing the individual talent and his capability to
contribute to the organizational goals. The next level known as “Repeatable” instills the basic
discipline into the work-force activities in the form of Staffing, Communication, Work
Environment, Performance Management System, Training and Compensation to find as to how it
adapts to the present environment. Training as viewed by many corporations is a ROI ( return on
investment) where a potentially complicated process is re-defined into simplified and sequential
steps are formed to see that the process is manageable. In pursuance to it the young brains tries to
provide logical, rational and systematic approach to develop new strategies to survive in the
competitive environment. The cost-benefit analysis is done to find out the effectiveness of the
training programme and the gap created between the actual performance and the pre-defined set
standards.
Kirkpatrick’s training evaluation method based on Reaction, Learning, Behavior and Results are
defined at each stages in the form of diagram which is illustrated below:
ROI
Results
Impact
Learning
Satisfaction

3. Training given to the employees is not to be taken for granted that the individual has learned
both the hard and the soft skills in absolute and that he is ready to implement them from day one
in the post training phase. It is also to be seen that evaluation plan drawn should take into
consideration the pre-program measurements, compare with defined measures and in some cases
multiple measures may also be taken to develop and define pedagogic inputs. To be more
analytic, training program main criteria for evaluation is data collection and therefore a
comparison is to between the pre-training results with the post training results with a three week
gestation period. Some organizations evaluate them through professionals while others do a
physical follow up in collecting the change and the expected results it has created as a
benchmark to achieve with test group and control group data collected in context to hard data
representing output, quality and time and soft data including work behavior, work climate,
attitudes of employees for a comparative analysis.
Re-defining the human resource from the traditional and contemporary concept due to
globalization, workforce diversity, concern about productivity and quality, perceptions created
by employees has forced it to move its focus from only “people centric” to “business centric”. In
creating a successful transformation, the process needs to change the theory based practice to
application based outcome proving that organizations may not be able to survive at all. It
integrates all the facets of business by re-shaping the concept of human resource because
corporate should rationalize their decisions as to how HR can align with outcome of a business
through re-designing the system, re-engineering, revamping the total business process and re-
focusing on people requirements to transform and produce long term initiatives by implementing
a top-down bottom –up approach with line managers as the main character.
As previously discussed that new innovative techniques on HR are underway, HR metrics and
HR analytics is the current conceptual and practical change the organizations are ready to adopt
because it is imperative for the organizations to know that when people understand the “why of
change”, they are more likely to accept the “what of change”. The proposition put forward is that
if people realizes what they practice inside does not create value on the outsider in the company
to attract, serve and retain customers and investors, its value is zero. Innovative practices like HR
analytics serves as tool of measurement not only of people but also about business because it is

4. not only the business strategy they should consider but also understand the business conditions or
external realities that shapes it. The transformation from the traditional use of measurement in
form of Assessment Centers or different forms of Performance Management System to Balance
Scorecard (BSC) or HR Analytics and HR Metrics has proved that today human resource has
moved a long way of the old practice of Welfare Management and filling in the gap concept to
the expectations of the stakeholders and the capabilities of an organizations which is created. It is
clear that today the outcome achieved are defined on how the business strategy was operationally
effective, has tracked and quantified its achievements and progress to benchmark the practices of
the future.
HR analytics an emerging issue and at its infant stage and may sound new to us is drawn from
the concept of Hawthorne studies conducted in Chicago in 1920’s. The concept based its
findings from the results which confined it to the social group norms which prevailed within the
workers. It was during the late 1990’s that the tectonic shift occurred whereby business became
more competitive, volatile, matured and specific to the needs and demands of the market. It
questioned the credibility of people management and how effectively it could be used as a
strategic priority in shaping the business in the turmoil of competitive market. Recently
Pricewaterhouse Coopers ((PwC) had conducted a study about its importance with the modern
business houses and found that 86 percent of the business leaders thought it to be an important
ingredient to be incorporated in their strategy but only 46 percent has devotedly and dedicatedly
uses it as a important function thus creating a gap between the have’s and the have’s not. Human
Resource analytics promotes the concept that the activities designed by the human resource
department has direct relationship with the business outcomes of those activities such that these
would help to develop a robust and strategic plan to envisage future business practices to get
better business outcomes. The core functional areas in which have specific interests are
acquisition, optimization, development, and paying of the employees within a business or
organization. To develop them it requires four basic parameters such as velocity, variety and
volume. It deals with data being processed to help business leaders get instant feedback
regarding behavior or work pattern from the productive employees and understand them to be
implemented in business. But the problem lies to the fact that they have huge data which is
unmanageable at times and secondly they do not have requisite and expertise human resource
professional to analyze the data provided to them. The whole object of HR analytics is not only

5. to measure productivity and efficiency of the people in the organization but also employing them
to have better return on investment. It tries to provide an insight to the relevant decisions taken
hoe the business processes can be improved.
Revolution in brining innovative practices which started with the globalization process and
development of cross-border relationship transcends the existence of Multinational and also the
local business in the competitive markets. Companies today has shortened down the product life
cycle in order to keep abreast with the dynamic change and unpredictable threat companies are
likely to face as it is difficult for them to actually identify who the competitors are and who will
be a potential threat to the future. Technological boom has created customizing of products to
each customer more economically and quickly. The moment a new product or process or practice
is established the companies simultaneously establish the date at which they will deliberately
abandon the same because commercialization and customization is the only way to survive.
Either they have to continuous innovated or perish in this fierce international competition. Those
who produces or practices anything unique goods or services related to market requirement can
gain advantage over others can sustain for a while and prompt for a better future. May it be that
organization needs to develop such type of culture which can entice its workforce towards
innovation, create an ideation centre, develop knowledge bank and think ways to capitalize on it.
Shell a multinational oil giant introduced BPRM (Best Practices and Resource Map) consisting a
brief description of innovation and officials responsible for it and their contacts through which it
is passed on to another department to adapt and implement. The recent turmoil about the change
in leadership at Tata & Sons is an eye opener to us that sometime the practices thought to be
innovative or unique does not really emphasize the long term planning process. Business process
re-engineering, a concept adored by many organizations is same as old wine in a new bottle.
It is because the concept of today and yester-years tries to somehow grapple with the present
market conditions and a result which the top management forces the employee for not following
the “modern concept” of management while the employees blame that the management as
“hypocrite” on not following of what they preach. However to advance in future globally and
sustainability in question every organizations needs transformation to achieve moderate levels of
success, inhibit core skills critically and to build appropriate core competencies which must be
clearly identified, developed, evaluated and then put into practice. There is no time for company
to perform a trial and error method but rather inhibit a culture of self-introspection and openness

6. to change. Management should adopt a systematic perspective to emphasize a larger period and
develop young management graduates to become a new kind of strategic leader. Thus
organization which successfully promotes innovation keeping the possibility of survival will
surely be recognized and rewarded.
References:
Personnel Today: Vol. XXXIII. No. 2, Innovative HRM practices.
Personnel Today: Vol XXXII No. 1 , A Key to Effectiveness of HRM
Harvard Business Review.