Notesale: Turn your study into money

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Trends in HRM
HRM in a changing environment
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HRM is concerned with recruitment, selection, training, development and management of HR
HR has gradually transformed for last two decades in all sectors of industry & trade
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Business environment has become dynamic, and hence be adaptable to changes in economical,
social, technical, legal & political environment
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Because of this change in
attitude, various concepts emerge in due course of time, such as workers participation in
management, collective bargaining, total quality management, employee empowerment,
outsourcing, flexi time, etc
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Environmental Challenges
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Therefore, business resources too must change to survive
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HR force has to be competent, motivated to contribute to
business growth
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Work Force Diversity
Human Resource available in world market is very diverse in nature
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It
also comprises of highly qualified young crowd, talented women in ready to work par with men
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3
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It demands world class employees to survive amidst competition
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Eg
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It is challenging to identify new areas of jobs to employ
human skills
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Legislation
Labour laws of govt
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New rules,
discipline at work makes it difficult to achieve good work performance
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5
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Every employee, senior and young
has to undergo training to learn use of new software, apps, robotics in routine work
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B
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Controlling Costs
The labour costs needs to be kept under control by adopting techniques such as campus recruitment,
on the job training, minimum wages & only mandatory welfare facilities, better work design, strict
supervision etc
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Inefficient workers are
sometimes terminated to reduce labour costs
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Improving Quality
High quality acts as competitive advantage to modern firms
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3
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to tap their potentials
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Perfection by each individual makes huge
difference in overall growth of business
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Restructuring HR
Redesigning HR system includes transferring the workload on outsiders through outsourcing of
certain experts (repair technicians, sales representatives, distribution agencies, training academy etc)
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C
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Productivity
Firm’s growth depends on productivity of their workers
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This becomes possible if candidates for various jobs are
selected purely on merit
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2
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rules
in the interest of HR team & customers
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Workers must perform social responsibility by providing safe & cheap products to
own society & preserving national resources
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Empowerment
Empowerment is a process of transferring powers by top management to junior sub-ordinates & lowlevel workers
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Top management hesitate to decentralise powers to retain authority
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Job Insecurity
All employees remain under a stress for job security/confirmation
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such
stress affects individual productivity and job satisfaction
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Changing environment of HRM

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In modern times, diverse work
force of different nationals, culture, education, skills work together
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Employers are required to provide maternity leave, flexible work hours, baby care
to women workers, medical care & pension to senior workers, training to new workers and
accommodation to migrant workers
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2
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All focus on speedy
economic growth in terms of better GDP, import export trade, foreign exchange, BOP, technological
advancement, HR expertise
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HR dynamics affecting are change of blue
collar to white collar jobs, manufacturing to service oriented, physical to digital, fixed to contract
jobs, office to work from home, 8 hours to 24 hours job etc
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Vibrant economies are Japan, Korea,
China, USA, UAE, India
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MNC’s hunt for trained &
multi-skilled work force
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Thus, it is
challenging for small firms & educational institutions to develop globally employable workers
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Employees for Apple, Google, BMW, Nestle, Reliance
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Organisational restructuring
MNC’s and Local companies are getting restructured in the form of joint ventures, mergers, takeovers,
licensing, patenting etc for business expansion, market capturing, technology sharing
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and collaborations in
sectors such as banking, insurance, telecommunication, retail, medical, education
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Corporates aim for downsizing of firm and cost cutting
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It has largely
affected the HR system viz: nature of duties, special skills, pay packages, working hours etc
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of workers & increased part time job culture, work
on target base, 24 x 7 duties, work from home etc
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All such reforms are increasing
unemployment across the world
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Recruitment & Selection
Choosing best candidates from many applicants is a complex task
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It requires long time, huge cost & technical experts as screening staff,

panel for interview, coach for training
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Potentials, creativity in a
candidate should be assessed to capitalise in future
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Emotional & Physical stability of employees
HR experts during personal interview must analyse candidate’s personality traits such as honesty,
patience, anger, confidence
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Thus, they should
be counselled & motivated by seniors to stay emotionally fit
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HR team at work must co-ordinate & fully
support employees all 3 levels
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Job satisfaction raises individual’s productivity & thereby
business growth
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Balance between Management and Employees
Management aims at higher productivity, sales, profits & expansion where as workers aims at higher
salary, bonus, promotion, welfares
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Management must support workers & protect their interest to create highly
motivated HR team
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4
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Workers at all 3 levels must be
upgraded with knowledge & skills on new technology, methods, software’s
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Efficient employees should be fairly compensated with higher pay scales, incentives,
allowances, bonus, pension etc
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Performance Appraisal
The performance of each employee should be measured by applying scientific appraisal methods such
as observation, output, questionnaire, senior’s feedback
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Employees with best performance should be
felicitated and compensated with high salary, promotion, challenging responsibilities
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6
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The Union leader & group of workers should be consulted before taking important
decisions
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HR head must timely fulfil legal demands, maintain peace with union and build team spirit for smooth
functioning of factory operations
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They are the set of behaviours which are observable, measurable for success of company
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Later the same attributes are used to measure work performance, promotion,
rewards
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Knowledge: of Job, tasks, processes
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Skills: to perform quality work with speed, accuracy, creativity
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Attributes: Honesty, dedication, patience, positivity, self motivation, spirit, team work
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Performance: Output, target, goal achieved, outstanding performance, best among all
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It is a set of characteristics of a worker which helps to perform a job better
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It helps to measure and evaluate performance of each worker
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Combination of best competencies develops capabilities to handle critical situations
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They are acquired through practical experiences so always guarantees success
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Some competencies are inherent qualities and can be groomed to make best use
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Behavioural Competencies
It includes personal traits such as interpersonal skills, thinking, attitude, leadership, team work,
organising skills etc
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They
become stronger with possession of subject knowledge and job skills
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It makes workers satisfied at work and in personal
life
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Organisations find it difficult to
evaluate such inner competencies but are measured based on output, results, feedback
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Core competencies
It includes person’s creativity, innovativeness, rare talent, unique feature, best expertise different from
others
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It acts as company’s strength and competitive
advantage over other firms
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Best car design in auto industry, best software, best method, best
component, best dancer/batsmen in a team
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Time to time new core competencies can be
developed to advantage the situation
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Functional Competencies
It includes technical skills and abilities to perform (function) the given duty
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They are job
specific & restricted within one’s knowledge area
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4
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To
manage is to win over
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A good manager requires capabilities of

leadership, decision making, budgeting, critical analysis, foresight etc
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5
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Organised efforts
of individuals as well as team helps to achieve company goals
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Technology
forms an important component for business growth
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They need to continuously support
technological system with repairs, maintenance, update, safe handling & optimum use
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Young talent can be absorbed through
college campuses, research centres, training institutes, business houses
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According
to Mr Peter a learning organisation is an organisation that encourages and facilitates learning in
order to continually transform itself to survive and excel in a rapidly changing business
environment
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Learning organisations develop as a result of the pressures facing modern organisations
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Learning organisations gives employees the power to solve problems autonomously, as well as to
benefit from the experience of their peers They have opportunity to share their ideas and insights
without fear of being judged, and to expand their knowledge and work together to achieve
common goals
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Building a Shared vision
In learning organizations, the vision should be created through interaction with the employees in the
enterprise
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The only
way to create a shared vision is by compromising the organizations and individual’s visions
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The effect of
sharing the same vision is that employees do tasks because they want to do so instead of they are told
to do so
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Systems Thinking
Instead of focusing on individual issues, systems thinking reflects the observational process of an
entire system
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Many times it happens that managers focus on individual actions, and therefore, forget about
seeing the big picture
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Managers will be able to determine cause and effect
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Mental Models

According to Peter Senge, the employees must identify the values of the company and what the
business is all about
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The organization has to be flexible in accepting changes to new mental
models and a new image of the company
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It is the discipline
by which personal mastery and shared vision are brought together
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It is the first step to set up dialogues
wherein people dare to be vulnerable and express their real personality
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Otherwise, no learning can be experienced
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Personal Mastery
Personal mastery refers to the continuous process of self-improvement and self-discovery aimed at
achieving one's full potential
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An example of personal mastery could be seen in someone who sets a goal to become a better public
speaker
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However, they commit to improving their skills by seeking out opportunities to practice, such
as joining a public speaking club or volunteering for presentations at work
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Benefits of Learning Organisation:
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Innovation
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Knowledge Sharing
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Competitive Advantage
Employee branding
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Employee branding is an image projected by an employee about himself and about his
organisation to customers and stakeholders
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Every employee represents as a goodwill ambassador to campaign for quality, guarantee, and
reliability of products & services of employer
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Attractive salesmanship at doorstep (Eureka,
Berger), special treatment in showroom (cars, cosmetics), excellent after sales services
(electronics), shows the brand value of company
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4 E’s / Methods of employee branding:
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Advantages of employee branding
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It involves identifying opportunities for improvement or differentiation and then implementing
fresh solutions to capitalize on those opportunities
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Constant Innovations
➢ TATA Motoes: EV cars- affordable cars
➢ Philips electronics: CD players, trimmers, hair straighteners
➢ Surf excel detergent: Liquid detergent
➢ Banks: Online banking, passbook printer machines
➢ Fast food: Zomato, Swiggy

Need for Innovation
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Innovation is one of the key factors for
prosperity of business
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Even a small firm
can survive if it has innovative product or service
Ex
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They did not invest in new
digital camera technology and hence could not survive in the market
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For Economic growth
Innovation leads to develop new types of business & services to meet the changing needs of global
customers
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It also improves import export trade & foreign earnings
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Eg
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3
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Such ideas
should be accepted through suggestion box/superiors, then be discussed, developed & implemented to
benefit own company
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This
will encourage every employee to constantly think creatively
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TATA Industires, WIPRO
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For Better returns
Innovations are new creations never existed before
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Interested investors assess feasibility of
innovative project, estimate high returns in future and accordingly invest capital
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Eg: JIO communications, AMAZON on-line shopping, eco-friendly housing projects, electric cars
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For Competitive advantage
Any new creations give upper hand to the innovating company over its competitors
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Such novel product or features dominate over competitor’s products with old features, design, high
price etc to emerge as best alternative
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JIO offered 4G speed data pack, free of cost, for several months during the introductory stage
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Implementation of ideas suggested by workers shall motivate & involve them to produce maximum
output
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This reduction could come in the form of no
material wastage, time saving, efforts saving, labour elimination, own distribution, job outsourcing
etc
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Innovation initiatives are often the results of external forces, such as changes in the competitive
situation or changes in technologies leading to declining profits
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If there is an idea which describes a real market need, one
must judge if it has the resources to develop the product or service and to get it in front of
customers
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Dynamic leadership
The leaders of the organisation viz
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They must encourage employees,
researchers to give suggestions and reward the best
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Eg
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When
individuals are provided with clear goals along with the freedom to find their own course of action in
order to achieve them, their lies scope for innovation
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Top to bottom level
employees should be encouraged to develop innovations in their daily work of production, storage,
reporting, marketing, services
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Practice of accepting &
implementing new ideas creates innovative work culture
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Budget provisions
Creating and implementing something new that adds value to your organisation is not cheap
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Innovative organisations have a budget for innovation
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Most of this organisation have innovation venture capital funds
to run experiments in order to check its viability
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Generating trust
Creativity and innovation are possible only when there is an environment of trust in the organisation
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Many creative ideas may sound foolish in the initial stage,
hence employees may hesitate to share their ideas with the management as they have a fear that they
may be criticised or punished for the same
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The innovative products
always remain in highlight, in demand, enjoys higher market share for their uniqueness
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Apple,
Samsung, Nestle, Colgate, TATA
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Unique strategy
Every innovative organisation must have a unique and relevant strategy
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It has to be communicated to all employees associated with it
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Strong and open
collaboration helps to extend your reach through external networks
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Through outside partners you
can co-create new products and services, without much hassle
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To manage the transition
With changes taking place in this new era, managers are entrusted with a role to lead people through
the transition from industrial era to information era
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Performance of the employees decide the job security
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Performance management plans have to be designed to
motivate people to perform well
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To bring about recovery

In today’s scenario, every employee needs to prove oneself to grab a reward before it may be too late
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Managers have two counsel employees so that they do not breakdown
if they are asked to leave the job
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To manage order and disorder
There should be a place for everything, and everything should be in his place as referred by Henry
Fiel
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Hiring the right people and socialising employees into the culture through
training and development programme, This has to be constantly done to stabilise the change
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To encourage decisional roles
Manager should encourage employees to participate in decision making process
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One such decision
relate to the usage of suggestion schemes where employee are motivated to give their suggestions to
the management on various administrative matter
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Every employee is encouraged to bring creative suggestion in work he
does, then it is discussed, developed, tested and if profitable, implemented
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rules, approvals,
networking, competitors, customer’s acceptance, repairs & service etc
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Similarly, employees of
the organisation who aim only for salary too believe that their ideas are not worthy & will be rejected
by top management
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They should be given freedom to think out of box, powers to take own decisions,
funds, time & resources to act together in a team
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Initially some ideas may look foolish but with due analysis they can emerge as most profitable
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This shall encourage & engage them to think creatively & bring their own solutions
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Organisation must facilitate free communication system from top to bottom and across departments
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d) Resource commitment

Organisation must be committed to avail all required resources to promote innovation culture
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The important
resources needed are funds, laboratory, equipment, materials, technicians, analysis experts, govt
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The best resources should be made available
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Trying new is
always risky affair as it is constrained by lot of external factors
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Hence it may be a calculated risk to try and experiment new
solutions
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Employees possessing extraordinary skills should also be tapped to benefit the organisation
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The employees should be able to dedicate quality time for
innovations & experiments besides their routine job at work & at home
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Priorities of tasks must be
listed with deadlines to implement innovative projects before competitors
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The assignments may be to develop new technique,
improve quality, change production method, sales strategy etc
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HR manager must maintain strict supervision on innovation
process to ensure its success
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BPR means redesigning of business processes to improve productivity, quality, speed, customer
service and reduce costs
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All the existing processes in all departments are reviewed and updated with modern business
practices viz: digitisation, robotics, software apps, e-services, multi-tasking skills, outsourcing,
sales networking, online promotions, franchising, customer care centres etc
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Shaping the process
HR department plays important role in shaping BPR by selecting the best candidates for best job
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The performance
appraisal helps to identify best talent for re-designing assignments, to choose team leaders & coordinate the entire system to achieve business goals
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Creating job statement & role descriptions

Re-designing involves adding more duties & responsibilities to the existing job profile
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They are expected to improve speed & quality of
work
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Every
employee should be fairly compensated equal to his hard work
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Satisfied employees remain committed, put extra efforts to achieve
individuals as well as company goals
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Training the new work force
The employees delegated with new duties should be well trained to perform those jobs better
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Team work must be encouraged
to link & co-ordinate the work of all departments and achieve common results
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Trendy
work styles such as flexible working hours, work from home, target base pays, multi-tasking skills,
digitised work system, talent hours, friendly atmosphere etc
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Indian
corporates too became adaptable to global trends of 24 x 7 work, outsourcing, e-services, importexport networking, global clients, world class quality etc
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Facilitate communication in the work force
A competitive organisation must establish effective communication system at work place
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The team must
regularly meet to discuss work related problems & share suggestions
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Any delay or wrong information can lead to failure of BPR
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Continuous Improvement
BPR is an iterative process that requires ongoing monitoring and refinement
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By facilitating postimplementation reviews and encouraging innovation, HR ensures that the benefits of BPR are
sustained over the long term

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