Recent trends in IHRM

Successful businesses can adapt to changing economic, political, and social conditions. Being aware of trends affecting the workplace can help an organization proactively anticipate challenges ahead, said Susan R. Meisinger, president and CEO of SHRM (The Society for Human Resource Management )

The influence of IHRM overall trends within the following eight key areas: demographics, economics, employment, international issues, political trends, society, science and technology, and HR industry trends. Demographic The aging of the workforce, the need for elder care, changing family patterns, and high rates of immigration are all demographic trends that impact organizations and their\ workforces. Economics Economic trends include health care and pension costs, demand for high-skilled workers, and changes in corporate governance resulting from scandals. Employment Lower HR staff to employee ratios, demand for flexible work schedules, linking pay and performance, employee demand for customized employment relationships, and the backlash against managed care all impact the key employment trends. International International trends are formed by exporting U.S. jobs, security concerns, the expanding global

Politics The political trends in the U.S. reflect the issues that are most important in workplaces and households across the nation. These include a focus on domestic security, health care reform, increased political partisanship, 2004elections, and a weakening of affirmative action policies. Society The changing definition of a family, a 24/7 work culture, and broadening diversity are some of the components that make the list of societal trends. Science & Technology The use of technology for employee communications, employee monitoring, and development of e-learning are all trends of growing importance to HR professionals. However, so are an increased concern for intellectual property, identity theft issues, and the vulnerability of technology to potential terrorist attacks. HR Trends Current trends in the HR industry include the growing complexity of legal compliance, use of technology to perform transactional HR functions, demonstrating HRs return on investment, and the emphasis on HR competencies for practitioners

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 analytical tools with leadership from the top and develops a method for sustainable improvement. 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

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. Decentralize operations and rely on self-managed teams to deliver goods in difficult times e.g. 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 to unions, workers and other affected groups e.g. IBM , Kodak, Xerox, etc.

HR Managers today are focusing attention on the followinga) Policies- HR policies based on trust, openness, equity and consensus. b) Motivation- Create conditions in which people are willing to work with zeal, initiative and enthusiasm; make people feel like winners. c) Relations- Fair treatment of people and prompt redress of grievances would pave the way for healthy work-place relations. d) Change agent- Prepare workers to accept technological changes by clarifying doubts. e) 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 HR policies.

CHANGES IN HRM : Some of the significant changes that are likely to take place in the human resource management are as follows:

Increase in education levels: Technological developments: Changing composition of work force: Increasing government role:

occupational health and safety: Organizational development: New work ethic: Development planning: Better appraisal and reward systems: New personnel policies:

Thus, in future personnel management will face new challenges and perform new responsibilities. Participative leadership will take the place of autocratic leadership. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal and rule bound approach to more open and humanitarian approach.

FUTURE ROLE OF PERSONNEL MANAGERS (i) Personnel managers of future will have to stress upon overall development of human resources in all respects. (ii) The scope of human resource management will be extended to cover career planning and development, organization development, social justice etc. (iii) Enlightened trade unions will become an active participant in the organization and management of industry. (iv) The personnel manager will be required to act as a change agent through greater involvement in environment and scanning and development planning. They will have to devote more time to promote changes than to maintain the status quo. (v) The personnel function will become more cost-conscious and profit oriented. Instead of merely administering personnel activities, the personnel department will have to search out opportunities for profit improvement and growth. (vi) Greater authority and responsibilities will be delegated to personnel managers particularly in the field of employee welfare services. (vii) Personnel managers will have to continuously retrain themselves to avoid obsolescence of their knowledge and skills.

STRATEGIES IN IHRM

Strategy tells everybody who you are and what you intend to accomplish. Michael Porter, an expert on the topic, said strategy is a defining position that delivers competitive advantage. Sun Tzu spoke about strategy in the fifth century B.C.: "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." Sun Tzu, who could be viewed as one of the first known learning executives, was challenged by the King of Wu to prove himself by training his 360 concubines.

There are three reasons for establishing a strategy: 1.A great strategy synchronizes the learning organization with the enterprise. 2. A great strategy defines the unit. 3. A great strategy offers a promise that can be examined.

How Do You Find Strategy?

1. They examine internal strategy documents, looking at what the enterprise is promising. 2. The consultant leads the group in readings and discussions about best practices and competitive strategy options. Together, they attend a conference to look at emerging trends in learning, performance and technology. 3. They examine internal strengths, seeking to build on what they do exceptionally well. 4. They review descriptions of competitive pressures and opportunities in their business. 5. They meet to generate a strategy that will propel the group forward through contributions to clients and customers. At that meeting, they determine how best to communicate this strategy.

What Is Good Strategy? Dana and Jim Robinson, described what makes a good one: a) The focus is broad, on a distinguishing direction for the entire enterprise or unit. b) It is long-term in view, not focused on this quarter or next month. c) It is linked to one or more business goals or to a pressing need in the organization. d) It is solution neutral in its early stages. It is not about classrooms, the Web or instructors, not at first. e) It requires many tactics to implement. Isolated solutions do not yield strategic results.

But there is even more to a good strategy:

a) It speaks to what we will do and also admits to what we will not do. b) It is cognizant of the world outside, including the structure of the industry, customer needs and competitive forces. c) It is cognizant of current strengths, without allowing the familiar to limit possibilities. d) It comes from hard and comparative questions about whether those strengths do, in fact, distinguish people and groups in the organization. e) It is understandable beyond the "in" group. f) It is measurable. g) It is difficult to copy or supplant. h) It enables decision making about what to do now and next. i) It inspires.