International Referred Reseach Journal,April,2011 ISSN-0975-3486 RNI: RAJBIL 2009/30097 VOL-II *ISSUE 19

Research PaperCommerce

EMERGING CHALLENGES IN HUMAN RESOURCE MANAGEMENT

April, 2011

* Dr. Aruna

* Asst. Prof.Commerce,Rama Degree College,Chinhat ,Lucknow

A B S T R A C T Technological changes, globalization and liberalization has changed the way business is being done in the world Because of global expansion of limits of business human resource department has also attracted personals world around and India is not exception to that. The paper has focused the various aspect of human resource management which says human resource is not just filling various positions in organization, hiring employees ,estimating emoluments ,analyzing work ,describing jobs etc ,but is now more focused to the development of employees ,their quality contribution to the ability of organization and motivate employee to achieve their objectives. Key words : Human resource, merger acquisition, changing work profile ,newer organizational design, quality consciousness. Emerging Challenges In Human Resource Management :- The emerging challenges before HuINTRODUCTION Human resource Department is core of all the man resource Management can be understood by befunctions in an organization without involvement of low mentioned concept which an organization can not perform its financial 1. Merger and Acquisition When a company tries to increase its size, to as well as operational functions properly. Earlier HR department was better known as personnel depart- gain access to market and for increased profitability it ments which were made to deal with people at work may come either through grassroot project or through and their relationship with each other the various di- merger and acquisition.The grassroots projects takes mension of personnel management contains three folds lots of time in research and their implementation so -a)personnel aspect - recruitment ,selection ,place- the best generic strategy for expanding the business ment, training ,appraisal, compensation, productivity firm is through Merger and Acquisition. the motive etc. b)Welfare aspect-- Working conditions ,ameni- behind merger can variously be described as practical, ties ,facilities, benefits etc. c)Industrial relation as- psychological, or opportunistic but the primary objecpect-Union management relations, dispute settlement tive remains the same to achieve synergy. Before going ,grievance management, collective bargaining etc.The in detail, lets discuss what is merger and acquisition role of HR has widen up because of globalization and ,in merger one organization merges whole of its entity removal of line of alignment between two countries in another organization while in acquisition one orgawhich has facilitated a person to do job in other coun- nization acquires total control over the management try .these globalization and liberalization has also of other . The stages in merger and acquisition can be promoted better business strategies for the growth of classified into two phases organization which includes in itself merger and ac- 1. pre merger and acquisition phase 2. post merger and quisition , newer organizational design etc . which acquisition phase In pre M&A(merger and acquisition ) phase the organization which is going to acquire creates challenges before HR department . another tries to assess the cultural and organizational Objective The objective of paper is to showcase changes in HR differences between two , the role of leaders in the department due adaption of various business techniques organization, life cycle of the organization, working and analyze problems to provide measures to over- culture and the management styles while post merger phase consist of assessment of plans for successful come that . integration the problems before successful integrations Methodology The analysis is based fully on secondary data like books, are:1.Incompatible cultures 2.Loss of key talent 3.A journals, articles and information available on internet. clash of management styles 4.Managing the change process 5. Objectives / synergies not being well underR E S E A R C H A N A L Y S I S A N D E V A L U A T I O N

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International Referred Reseach Journal,April,2011 ISSN-0975-3486 RNI: RAJBIL 2009/30097 VOL-II *ISSUE 19

stood 6. Deciding HR policies etc. These changes after integration are the most challenging issues before HR department the M&A sometimes leads to serious impact to the performance of the employees and which results as most problematic area for HRD to remove all these hurdles the HR management generally tries to develop preliminary organizational design and identify the top three level of management which assess the critical players and deploy the appropriate resources to new merged company ,again it tries to retain the skilled personal and remove those who are of no more use and develops a balanced reward, award strategy and payroll benefits which will motivate employees to work with new zeal 2.Changing workforce profile Over the period of time Indian labour force has changed drastically earlier it was employees who used to do such work which is job demand and expectation based now the new HR employees has come up with more skills and higher expectations .To understand such Workforce The HR department needs to move towards a more inclusive corporate culture and develop a deep understanding which includes demographics, skill sets, personality traits and employee perspectives on the organization and culture. now organizations are hiring more young groups then matured ones with the changing profile of employees their expectations have also changed they expect better compensation and working facilities therefore these are challenge before HR department to have realistic job preview so as to avoid unrealistic expectation and design a suitable retention strategy and develop quality of work life 3.Newer Organizational Design To manage with the changing environment the organizations are also searching new ideas for being in competition now days organizations have not only interested in new dynamic working strategy but they want something which tremendously reduce the burden of cost as well as management .Unlike earlier days organizations does not consists division of labour, departmentation , authority delegation and hierarchy level now they are more interested in replacement of permanent jobs and adapt temporary work situation. Organizations are transformed from a structures built out of jobs into a field of work needing to be done . Increasing Quality Consciousness With the increased competition at global level

the organizations are compelled to focus more on quality assurance as today's customer is more interested in those organizations who deliver quality products and services, this demand of consumer leads to birth of various quality standards like quality certification (like ISO 9000,9001,9002,9003 certification), six sigma, Kaizen etc. and require such skills which is vary reactive to these new techniques for this purpose HR management have to take proactive initiative like 1. They will have to design actions to meet new requirements 2. trace out problems created by new technological changes 3. develop attitude of acceptance in employees 4. creating culture of quality and six sigma in organization 5. recognize training need if required by professionals these proactive attitude of HR management will lead them towards more proper and well versed working environment and support them to encounter environmental changes Summing Up Human Resource Issues In order to meet the emerging challenges, the personnel People have to equip themselves better with skills in dealing with the human side of the enterprise. The HR consultants have longed warned Hr managers about the changing work force , impacts of merger and acquisition ,adaption of new organizational design and the demand of efforts from the employees side in maintaining quality . Conclusion Human Resource Department is no different than other aspects of a business in being able to deliver significant benefits to the company but in the emerging scenario, the role of HR manager is changing rapidly due to changes in government policies, unions, labour legislations and technology. The traditional functions of HRM now need to be strategically directed towards developing and sustaining organizational capabilities to face the emerging challenges of environment .In the context of changing environment due to globalization, liberalization the role of HR managers has also changed they now need to focus on strategic issues, designing and taking proactive actions, developing integrated HR system, motivate employees towards group effort, working as change agent and marketing HR potential contribution. The challenges can be faced by HR management effectively, if these strategies are implemented. Hence, the role of HRM will be more significant in future due to the emerging scenario.

R E F E R E N C E
1.Emerging Issues and Challenges for HR Strategies By V.V.Vara Prasad and Dr. B Murali Krishna 2. Article on HR Challenges in Mergers and Acquisitions by Mr. Sanjay Duggar 3. Human Resource Management by LM Prasad,second edition 2005,published by sultanchand and sons ,23 Daryaganj new Delhi.110002. 4. Human Resource Issues And Trends,Article By Jean Scheid (102,686 Pts) ,Edited & Published By Michele Mcdonough (167,017 Pts) On Feb 22, 2010 5.The Challenges of Human Resource Management by Dr.Alvin Chan , Research Fellow at a research forum in Asia. 6. Emerging Issues in Human Resource Management ,By Dr. N. Rajendhiran & S. Sundararajan 7.www.bing.com 8 .www.erbi.org

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