Recent Trends in Hrm free essay sample

Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations. There is a need for multi skill development. Role of HRM is becoming all the more important. Some of the recent trends that are being observed are as follows: †¢ The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training. Charles Handy also advocated future organizational models like Shamrock, Federal and Triple I. Such organizational models also refocus on people centric issues and call for redefining the future role of HR professionals. †¢ To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma practices. Six- sigma uses rigorous anal ytical tools with leadership from the top and develops a method for sustainable improvement. We will write a custom essay sample on Recent Trends in Hrm or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page These practices improve organizational values and helps in creating defect free product or services at minimum cost. Human resource outsourcing is a new accession that makes a traditional HR department redundant in an organization. Exult, the international pioneer in HR BPO already roped in Bank of America, international players BP Amoco over the years plan to spread their business to most of the Fortune 500 companies. †¢ With the increase of global job mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to work out a retention strategy for the existing skilled manpower. NEW TRENDS IN INTERNATIONAL HRM International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country. Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse. Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. Managers need to be protected from career development risks, re-entry problems and culture shock. To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information. Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions. In many European countries Germany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized. HR Managers should do the following things to ensure success- †¢ 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 like training, development, counseling, etc †¢ Utilize people with distinctive capabilities to create unsurpassed competence in an area, e. g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc. †¢ Lay off workers in a smooth way explaining facts to unions, workers and other affected groups e. g. IBM, Kodak, Xerox, etc. HR Managers today are focusing attention on the following- †¢ Policies- HR policies based on trust, openness, equity and consensus. †¢ Motivation- Create conditions in which people are willing to work with zeal, initiative and enthusiasm; make people feel like winners. †¢ Relations- Fair treatment of people and prompt redress of grievances would pave the way for healthy work-place relations. Change agent- Prepare workers to accept technological changes by clarifying doubts. †¢ Quality Consciousness- Commitment to quality in all aspects of personnel administration will ensure success. †¢ Due to the new trends in HR, in a nutshell the HR manager should treat people as resources, reward them equitably, and integrate their aspirations with corporate goals through suitable à ‚  India is being widely recognized as one of the most exciting emerging economics in the world. Besides becoming a global hub of outsourcing, Indian firms are spreading their wings globally through mergers and acquisitions. During the first four months of 1997, Indian companies have bought 34 foreign companies for about U. S. $11 billion dollars. This impressive development has been due to a growth in inputs (capital and labor) as well as factor productivity. By the year 2020, India is expected to add about 250 million to its labour pool at the rate of about 18 million a year, which is more than the entire labour force of Germany. This so called ‘demographic dividend’ has drawn a new interest in the Human Resource concepts and practices in India. Indian HRM in Transition One of the noteworthy features of the Indian workplace is demographic uniqueness. It is estimated that both China and India will have a population of 1. 45 billion people by 2030; however, India will have a larger workforce than China. Indeed, it is likely India will have 986 million people of working age in 2030, which will probably be about 300 million more than in 2007. And by 2050, it is expected India will have 230 million more workers than China and about 500 million more than the United States of America (U. S. ). It may be noted that half of India’s current population of 1. 1 billion people are under of 25 years of age. While this fact is a demographic dividend for the economy, it is also a danger sign for the country’s ability to create new jobs at an unprecedented rate. With the retirement age being 55 to 58 years of age in most public sector organizations, Indian workplaces are dominated by youth. Increasing the etirement age in critical areas like universities, schools, hospitals, research institutions and public service is a topic of considerable current debate and agenda of political parties. The divergent view, that each society has a unique set of national nuances, which guide particular managerial beliefs and actions, is being challenged in Indian society. An emerging dominant perspective is the influence of globalization on technological advancements, business management, and education and communication infrastructures are leading to a converging effect on managerial mindsets and business behaviors. And when India embraced liberalization and economic reform in the early 1990s, dramatic changes were set in motion in terms of corporate mindsets and HRM practices as a result of global imperatives and accompanying changes in societal priorities. Indeed, the onset of a burgeoning competitive service sector compelled a demographic shift in worker educational status and heightened the demand for job relevant skills as well as regional diversity. Expectedly, there has been a marked shift towards valuing human resources (HR) in Indian organizations as they become increasingly strategy driven as opposed to the culture of the status quo.