CONTEMPORARY HR ENVIRONMENT

ByProf Radhika Gupta

CONTEMPORARY ENVIRONMENT OF HRM

What Is Human Resource Management (HRM)?
The policies and practices involved in carrying out

the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

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Human Resource Management at Work

Acquisition

Fairness Human Resource Management (HRM)

Training

Health and Safety

Appraisal

Labor Relations

Compensating

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The Changing Environment of Human Resource Management

Globalization Trends

Changes and Trends in Human Resource Management

Technological Trends

Trends in the Nature of Work

Workforce Demographic Trends

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The changing environment of human resource management

Work force diversity related to race ,value,age,culture,system,sex Technological trends: technology will force firms to become more competitive. Information technology has also hastened what experts call the fall of hierarchy,managers depends less and less on yesterdays stick-to-thechain-of-commandapproach to organizing. empowering workers to make more decisions .
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 Globalization:
refers to the tendency of firms to extend their sales or

manufacturing or capital etc. to new markets abroad. has vastly increased international competition . to seek cheaper labor, to tap a vast new supply of skilled labor around the world.

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 Trends in the nature of work: Technological and globalization trends are in turn producing changes in the nature of jobs and work. A service society has been formed with an enormous shift from manufacturing jobs to service jobs This demands new types of knowledge workers and new human resource management methods to manage them.

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Knowledge work and Human capital: Brain-power has never before been so important for business . Every company depends increasingly on knowledge patents, processes, management skills,technologies,information about customers and suppliers ,and old-fashioned experience.added together this knowledge is intellectual capital.

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IMPACT OF GLOBALISATION ON HUMAN RESOURCES

Contracting out and outsourcing

More part-time and temporary work

Greater employee involvement in the design

and execution of work Downsizing Flexible working hours Flexibility in functions (multiskilled labour) Greater focus on workplace relations

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Globalization
80 70 60 50 40 30 20 10 0 1920 1950 1970 2000 % fortune 500 with a global presence

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WORKFORCE DIVERSITY
Aging workforce

Boomer age bulge

Labour shortages Greater racial diversities Changing occupational distributions for women Dual career couples

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TECHNOLOGICAL TRENDS
Use of internet and IT Use of internet for staffing Use of Internet for New Ways of Work - Teleworking - Project oriented work with subcontracting Use of internet for employee development

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Nature of Work
In today's world, the structure, content, and process of work have changed. Work is now:

Change from brawn to brains more cognitively complex more team-based and collaborative more dependent on social skills more dependent on technological competence more time pressured more mobile and less dependent on geography.

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Organizations today are: leaner and more agile more focused on identifying value from the customer perspective more tuned to dynamic competitive requirements and strategy less hierarchical in structure and decision authority less likely to provide lifelong careers and job security continually reorganizing to maintain or gain competitive advantage

Tomorrows HR Today
Organizations today must grapple with

revolutionary trends:accelerating product and technological change,globalized competition,deregulation,demographic changes,and trends towards a service society and the information age. The traditional pyramid-shaped organization is giving way to new forms

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 At firms like AT&T the new way of organizing

stresses cross-functional teams and boosting interdepartmental communications. at GE ,Jack Welch talks of the boundaryless organization,in which employees dot identify with separate departments but instead interact with whomever they must to get the job done

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 Employees are being empowered to make more and

more decisions. experts argue for turning the typical organization upside down. and put the customers on top and emphasize that every move the company makes should be towards satisfying the customers needs.

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 Flat organization are the norm.

Work itself on the factory floor,in the office ,even

in the hotelis increasingly organizing around teams and processes rather than specialized functions The basis of power are changing:the new managerial work implies very different ways of obtaining and using man-power Managers will not manage: managers have to learn to manage in situations where they dont have command authority.
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 Managers today must build commitment.building

adaptive,customer-responsive organization means that employees commitment and self-control is more important than it has ever been.

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The Changing Role of Human Resource Management

Strategic Human Resource Management

Managing with the HR Scorecard Process

New Responsibilities for HR Managers

Creating HighPerformance Work Systems

Measuring the HRM Teams Performance

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The Changing Role Of HR Management

Changes in environment HR managers to take on new responsibilities HR functions more strategic

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The Changing Role Of HR Management

Strategic Planning

The companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. 3 questions in strategic planning

Current business position Future business position expected to be How to get to expected future business position

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The Changing Role Of HR Management

Strategic HRM Formulating HR policies and introducing practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals.

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The Changing Role Of HR Management

Strategic HRM HR managers today are more involved in partnering with their top managers in both designing and implementing their companies strategies Top management wants to see, precisely, how the HR managers plans will make the company more valuable.

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The Changing Role Of HR Management

Outsourcing HR Activities Computer-based systems easy to outsource HR activities by providing access to service providers to the companys HR information database E.g. Payroll, Benefits, Wellness Programs and Employee Training

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The Changing Role Of HR Management

High Performance Work Systems (HPWS) Integrated set of HRM policies and practices that together produce superior staff performance

Need to focus on performance No fixed rule of items that comprises HPWS but should include:

Employment security

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The Changing Role Of HR Management

High Performance Work Systems (HPWS) No fixed rule of items that comprises HPWS but should include (cont):

Selective hiring Extensive training Self managed teams and decentralized decision making

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The Changing Role Of HR Management

High Performance Work Systems (HPWS) No fixed rule of items that comprises HPWS but should include (cont):

Reduced status distinctions among managers and workers Information sharing among managers Pay-for-performance rewards Emphasis on high quality work

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The Changing Role Of HR Management

High Performance Work Systems (HPWS) Benefits of HPWS

Generate more job applicants Screen candidates more effectively Provide more and better training Link pay more explicitly to performance Provide a safer work environment

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The Changing Role Of HR Management

High Performance Work Systems (HPWS) Benefits of HPWS (cont)

Produce more qualified applicants per position More employees are hired based on validated selection tests Provide more hours of training for new employees Higher percentages of employees receiving regular performance appraisals.

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The Changing Role Of HR Management

Measuring HRM Teams Performance Employees expect HR teams to provide measurable proof of the effectiveness of their programs Require quantitative measures Metrics and HR Scorecard are used

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The Changing Role Of HR Management

Measuring HRM Teams Performance Metrics

A set of quantitative performance measures that HR managers use to assess their operations E.g. of HR Metrics

Absence Rate

[(Number of days absent in month) (Average number of employees during mo.) (number of workdays)] 100

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The Changing Role Of HR Management

Measuring HRM Teams Performance Metrics

E.g. of HR Metrics (cont)

Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) Number of Hires

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The Changing Role Of HR Management

Measuring HRM Teams Performance Metrics

E.g. of HR Metrics (cont)

Health Care Costs per Employee

Total cost of health care Total Employees

HR Expense Factor

HR expense Total operating expense

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13 20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics -Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.

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The Changing Role Of HR Management

Measuring HRM Teams Performance HR Scorecard

Measures the HR functions effectiveness and efficiency in producing employee behaviors needed to achieve the companys strategic goals Concise and simple measurement system

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The Changing Role Of HR Management

Measuring HRM Teams Performance HR Scorecard

Use to measure: HR activities (testing, training, compensation and safety) Employee behaviors resulting from such activities Organizational outcomes of those employee behaviors (higher performance, and company profit)

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TABLE 11 Technological Applications for HR

Application Service Providers (ASPs) and technology outsourcing Web portals PCs and high-speed access

Streaming desktop video

The mobile Web and wireless net access E-procurement Internet- and network-monitoring software Bluetooth Electronic signatures Electronic bill presentment and payment

Data warehouses and computerized analytical programs

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High-Performance Work System Practices

Employment security Selective hiring Extensive training Self-managed teams/decentralized decision

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making Reduced status distinctions Information sharing Contingent (pay-for-performance) rewards Transformational leadership Measurement of management practices Emphasis on high-quality work

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Consequences of these basic trends

Global expansion
Technology Strengths and Weaknesses Improved competition Uncertainty, Turbulence, Rapid Change, Changing power bases Companies must be Fast, Responsive, and Cost-effective

HRs evolving role

Protector and Screener Change Agent Strategic Partner

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