New Trends in

HRM

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SMT.CHANDIBAI HIMATMAL MANSUKHANI COLLEGE

ULHASNAGAR- 421003

PROJECT REPORT ON
Human Resource Management
SUBMITTED BY
NIKHIL KALEKAR
(ROLL NO: 61)

M.COM PART 1
(SEM.2): HRM

SUBMITED TO
UNIVERSITY OF MUMBAI
2015-16

PROJECT GUIDE

Prof. MANISHA MAM

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PAGE 1

Department of Commerce

Certificate
Thisistocertifythat, Mr.NIKHILKALEKARofM.Com.I,Sem.2(RollNO61)hassuccessfully
completedtheprojecttitled NEWTRENDSINHRM undermyguidanceforthe AcademicYear
201516.Theinformationsubmittedistrueandoriginalaspermyknowledge.

Prof.MANISHAMAM
(ProjectGuide)

Prof.GopiShamnani
Dr.ManjuLalwaniPathak
(Coordinator,M.ComCourse)
(I/CPrincipal)

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ExternalExamin

ACKNOWLEDGEMENT

I acknowledge the valuable assistance provided by SMT.CHANDIBAI HIMATMAL

MANSUKHANI COLLEGE, for two years of degree course in M.Com.
I specially thank the principal Dr.ManjuLalwaniPathakfor Allowing us to use the
facilities such as library, computer laboratory, internet etc.
I sincerely thank the M.Com co-ordinator Prof.GopiShamnani for Guiding us in the
right direction go prepare the project.
I thank my guide Prof.Manishamamwho has given his/her valuable time, knowledge
and guidance to complete the project successfully in time.
My family and peers were great source of inspiration throughout my project their
support is deeply acknowledged.

Signature

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DECLARATION
I, AKASH RANA OF SMT.CHANDIBAI HIMATMAL MANSUKHANI COLLEGE OF M.Com
SEMESTER I, hereby declare that I have completed the project on new trends in
hrm in the academic year 2015-16. The information submitted is true and original
to the best of my knowledge.

(NIKHIL KALEKAR)
M.Com part-1, ROLL NO: 61
SEMESTER I

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INDEX
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CONTENT
Introduction
External and internal factors influencing the Personnel
function
HRM Activities
Technological Changes and HRM
How to deal with a human resource surplus situation?
Economic, Political and Social Challenges and HR
What HR managers can do?
Political factors
Social factors
Local and government-related factors
Trade unions
Managing workforce diversity
Internal Environment and Hr
Designing appropriate HR systems
An Aging Workforce
Skill Deficiencies of the Workforce
High-Performance Work Systems
Knowledge Workers
Employee Empowerment
Teamwork
Focus on Strategy
Business Strategy: Issues Affecting HRM
Focus on Strategy
Traditional HR vs. Strategic HR
Technological Change in HRM
A Changing Economy
Changes in the Employment Relationship
Changes in the Employment Relationship

Introduction
Historically, the HR Department was viewed as administrative overhead.

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 HR processed payroll, handled benefits administration, kept personnel files

and other records, managed the hiring process, and provided other
administrative support to the organization

The role of Human Resources is changing as fast as technology and the

global marketplace

The positive result of these changes is that HR professionals have the

opportunity to play a more strategic role in the business.
The challenge for HR managers is to keep up to date with the latest HR
innovations -technological, legal, and otherwise.
How HR managers can anticipate and address some of the most challenging
HR issues.

External and internal factors influencing the Personnel function

External factors
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Technological factors
Economic challenges
Political factors
Social factors
Local and Governmental issues
Unions
Employers demands
Workforce diversity

Internal factors

Mission
Policies
Organization Culture
Organization Structure
HR Systems

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HRM Activities

Effective
relationships

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Technological Changes and HRM

Technology includes tools, machinery, equipment, work procedures and employee
knowledge and skills. The impact of technology on HR can be profound, as the
following things clearly reveal:

New skills, knowledge, experience and expertise required to gain the edge
over rivals.

Downsize operations, cut organizational layers and cut the extra fat to
survive in a competitive world

Collaborate and achieve teamwork

Relocate work from the office to the home

Internet and intranet revolution

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How to deal with a human resource surplus situation?

Managing Survivors of downsizing

Bitterness, anger, disbelief

handled properly

and shock need to be

taken

Give information as to why

the action had to be

Tell how it is going to help

employees in the long run.

the firm and

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Economic, Political and Social Challenges and HR

Now-a-days, people, goods, capital and information are moving around the
globe as never before.

Global competition is making every firm to think in terms of gaining an

edge over rivals by producing high quality goods at a very competitive price.

This is where the people dimension comes into being. Incentives, favorable
work climate, team spirit, freedom to think and act independently, and a host
of other HR initiatives are needed to keep talent from flying away.

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What HR managers can do?

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 (training, development, counseling, coaching etc.).

Utilize people with distinctive capabilities to create unsurpassed competence

in an area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia
in biscuits, Nestle in coffee, McDonalds in fast foods, etc.).

Decentralize operations and rely on self managed teams to deliver goods in

difficult times (Motorola is famous for short product development cycles. It
has quickly commercialized ideas from its research labs).

Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox,
AT&T, Steel and Textile firms in India etc.) to unions, workers and other
affected groups. HR generally plays a key role, these days, in planning and
implementing corporate downsizings, and then in maintaining the morale of
the remaining employees.
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Political factors
Political stability
Formation of new political parties
Influence of politicians over Productivity linked wage agreements
Political parties sympathetic to trade unionism
Opposition to VRS schemes, downsizing operations, restructuring exercises.
Freedom to show the door to unwanted people

Social factors
Conducting business in a socially relevant and responsible way.
Hire qualified people or hire inexperienced local people and train them to
avoid trouble?
Helping economically poor people, unemployed, underprivileged ones, etc.

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Local and government-related factors

Meet legislative requirements
Offering jobs to certain sections of local community

Trade unions
Demands for higher wages, better working conditions, incentives, benefits,
services

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Managing workforce diversity

The workforce is becoming increasingly diverse now and organizations are doing
their best to address employee concerns and to maximize benefits of different kind
to employees with diverse educational, cultural and religious backgrounds. The
diversity issues, mainly, include the following:

Composition In terms of age, caste, education, culture, region, religion

Minority groups, economically backward groups

Displaced persons

Child labour

Contract labour

Women employees

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Internal Environment and Hr

Organizations are also influenced by a variety of internal factors relating to

strategy, culture, structure etc.

Mission and Strategy

Internal Policies

Organizational Culture

Organization structure

Human resource systems

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Designing appropriate HR systems

Issue
Focus on

Nature of employment
Job/Career

Recruitment
Internal/external/both

Selection
Merit/other considerations

Training and employee

6 months/yearly
development actions
Regular/irregular/need based

Degree of participation
Top down/bottom up

Incentives
Individual merit/group output

Job security
Lifelong employment/need-based jobs

Employee welfare
Be a model employer (offer those that

:
are

needed by law.)

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An Aging Workforce

The ministry of labour tracks changes in the composition of the Indian

labor force and forecasts employment needs.

Projections for 1996-2006, indicate the Indian labor force will have a
phenomenal growth.

Some of the expected change involves the distribution of workers by age.

Youth labor force, workers between the ages of 16-24, is expected to grow
faster than the overall labor force.

The fastest growing segment will be workers aged 45-64.

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 By 2015, workers aged 40 and above will exceed the number under 40 for
the first time ever.

Organizations will struggle with ways to control costs and will have to find
new ways to attract, retain, and prepare the youth labor force.

Values tend to change from one generation to another as well as during

different life stages.

Skill Deficiencies of the Workforce

The increasing use of computers to do routine tasks has shifted the kinds of
skills needed for employees in the Indian economy.

Employees must be able to handle a variety of responsibilities, interact with

customers, and think creatively.

Most organizations are looking for educational achievements and a college

degree is a basic requirement for many jobs today.

The gap between skills needed and skills available has:

Decreased ability to compete because they sometimes lack the skills to upgrade
technology, reorganizes work, and empowers employees.

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High-Performance Work Systems

High-performance work systems are organizations that have the best
possible fit between their social system and technical system.

Some of the trends in todays high-performance work systems are:

o Reliance on knowledge workers
o Empowerment of employees to make decisions
o Utilization of teamwork

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Knowledge Workers

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 Knowledge workers are employees whose main contribution to the

organization is specialized knowledge.

The reliance on knowledge workers affects organizations decisions about

the kinds of people they are recruiting and selecting.

Employee Empowerment

Employee empowerment means giving employees responsibility and

authority to make decisions regarding all aspects of product development or
customer service.

HRM practices such as performance management, training, work design,

and compensation are important for ensuring the success of employee
empowerment.

For empowerment to succeed, managers must be trained to link employees

to resources within and outside the organization.

The use of employee empowerment shifts the recruiting focus away from
technical skills and toward general cognitive and interpersonal skills.
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Teamwork
Teamwork is the assignment of work to groups of employees with various
skills who interact to assemble a product or provide a service.

Work teams often assume many activities traditionally reserved for

managers.

Virtual teams rely on communication technology to keep in touch and

coordinate activities.

Teamwork motivates employees by making work more interesting and

significant.

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Focus on Strategy

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At a growing number of
organizations, HR professionals
are strategic partners with other
managers.
The specific ways in which HR
professionals support the
organizations strategy vary
according to their level of
involvement and the nature of
the strategy.

Business Strategy: Issues Affecting HRM

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Focus on Strategy

High Quality Standards:

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 To remain competitive in todays economy, organizations need to provide

high-quality products and services.
Total quality management (TQM) refers to a company-wide effort to
continuously improve the ways people, machines, and systems accomplish
work.
TQM has several core values.

Mergers and Acquisitions:

Mergers: Two companies becoming one.
Acquisitions: One company buying another.
HR professionals have to sort out the differences in the two companies
practices with regards to compensation, performance appraisal, and other
HR systems.

Downsizing:

Downsizing presents a number of challenges and opportunities for HRM.

All employees should be informed:
Why the downsizing is necessary
What costs are to be cut
How long the downsizing will last
What strategies the organization intends to pursue
HRM can provide downsized employees with outplacement services to help
them find new

Expanding into Global Markets:

In order to meet challenges, companies must

Develop global markets
Keep up with competition from overseas
Hire from an international labor pool
Prepare employees for global assignments.
Employees who take assignments in other countries are called

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Reengineering:
Reengineering is a complete review of the organizations critical work
processes to make them more efficient and able to deliver higher quality.

Reengineering affects HRM in two ways:

The way the HR department accomplishes goals may change
The HR department must help design and implement change

Outsourcing:
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 Outsourcing refers to the practice of having another company provide

services.
HR departments help with a transition to outsourcing and many HR

functions are being outsourced such as:

Payroll administration
Training
Recruitment
Selection

Traditional HR vs. Strategic HR

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Technological Change in HRM

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 Advances in computer-related technology have had a major impact on the

use of information for managing HR.
A human resource information system (HRIS) is a computer system used to
acquire, store, manipulate, analyze, retrieve, and distribute information
related to human resources.

A Changing Economy

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 The way business is conducted has changed rapidly during the past few
years and will continue to do so.

Many companies are connecting to the Internet to gain an advantage over or

keep up with competitors.

Electronic business (e-business) is any process that a business conducts

electronically, especially business involving use of the Internet.

E-business involves several forms of buying and selling goods and services:
Business-to-consumer
Business-to-business
Consumer-to-consumer

Changes in the Employment Relationship

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 A psychological contract is a description of what an employee expects to

contribute and what the employer will provide the employee in exchange for
the contributions.

From the organizations perspective, the key to survival in a fast-changing

environment is flexibility.

Flexibility in HRM includes:

Flexible staffing levels
Flexible work schedules

Changes in the Employment Relationship

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 Alternative work arrangements are methods of staffing other than the

traditional hiring of full-time staff.

Independent contractors
On-call workers
Temporary workers
Contract company workers

From employees perspective, alternative work arrangements provide some

flexibility for balancing work and non-work activities.
The globalization of the world economy and the development of ecommerce have made the notion of a 40-hour workweek obsolete.

Offering flexible work schedules provide organizations with many benefits.

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