HUman Resource future

Future challenge of human resource

Management

Roshan Pauel

“The best thing about the future is that it comes one day at a time.”

~ Abraham Lincoln

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5 Reasons People Change

1. They want to change2. They want to avoid negative consequences3. They are incented to change4. The environment around them changes5. Discovery that constructive change is

possible

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How is the environment changing?

Society Technology Government Employers Employees Economy

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How is the environment changing? Society

From ToTolerant AssertiveModest expectationRising expectationCollective IndividualisticLong term oriented Short term orientedLess educated Better educatedAware of duties Aware of rights too

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How is the environment changing? Technology

From ToLabour intensive LabourlessLow cost High costMulti technology Specialized

technologyMedium technology Complex technologyPiece-meal technology Convergent

technology

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How is the environment changing? Government

From ToPolicy of concentrated growth Balanced growthEntrepreneur Facilitator for entrepreneursEmployee friendly Employer friendlyCentralized power Decentralized power

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How is the environment changing? Employers

From ToDomestic Business Global businessProfit oriented Efficiency orientedTraditional Management Professional ManagementLess technical More technicalLess Mgt Qualification More Mgt QualificationEmployer by inheritance First gen employers

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How is the environment changing? Employees

From ToWorkers Knowledge workersBlue collar White collarSpecialized skills Multi skillsSubmissive Assertive

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How is the environment changing? Economy

From ToClosed economy Open economySellers’ market Buyers’ marketDomestic business International businessStable UnstableHigher price Lower price

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HRM in 21st century Demographic changes1.Pressure from religious and racial minorities2. Women reservation and empowerment3. Reservation to economically backwards from

upper castes4.Reservation is likely to be extended to private

sectors tooReasonsShrinking no. of PSU’s and Govt jobsCore sectors are going into private ownershipConcept of pvt mgt and public moneyIncreasing role of pvt companies in social development

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HRM in 21st century Demographic changes5.Increasing educational qualifications of

people at entry level6.Awareness of the common public7. Ratio of white collars and blue collars

getting reducedReasonsIncreasing technical skills and automationIncreasing salary for workersRedundancy of blue collar workers

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HRM in 21st century

8.No. of women employees risingLast decade Female employee growth around 50% Male employee growth less than 20%ReasonsConcept of dual careerNew jobs are becoming more suitable to womenEqual opportunities and security for women in the workplaceRising expectations of self and childrenInflationThreat of divorce/actual divorceGrowth of service industry

9.Increasing feeling of sons of the soil

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HRM in 21st centuryChanging technology and automation Need for new skills to meet the new

technology Strategy-Have feeder education/training

institutions run by company-University-industry interaction-Constant training to employees

+ve- Improves business efficiency-ve- Pressure on individuals to be up-to-

date

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HRM in 21st centuryChanging technology and automation

Skills going redundant (e.g. typists)Strategy-Retraining-VRS/Retrenchment-OutplacementProblems envisaged- After heavy investment on technology and automation money for retraining, VRS, etc may be scarce- Creates personal, Psychological, financial and social problems

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HRM in 21st centuryChanging technology and automation

Better working conditions to workers, e.g. AC, computers, better lighting and resultantly better Q.W.L

Skills are upgraded, so employees are becoming suitable for better jobs in the company and elsewhere

Makes the job challenging Reduces the human interaction, so human

elements will get lesser importance Breakdown of entire system/operations Many tragedies like Bhopal and Chernobyl are

possible, which may bring the surrounding public under Workmen Compensation Act 1923

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HRM in 21st centuryLiberalization, Privatisation and Globalization Emergence of international HRM

Results-International benchmarking and universalisation of HR practices

International character of Trade Unions High salary, global selection and training,

international standard of working conditions and slim work-force are the hallmarks of MNCs &JVs

Influence of ILO and WTO in labour stds, e.g. their role in elimination of child labour

Quality consciousness in international business a) Mgt seeks voluntary cooperation of employees b) Concentration on competition rather than confrontation

with workers and trade unions

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HRM in 21st centuryLiberalization, Privatisation and Globalization

Inequality in wage and salary the gap is too high, it may lead to inequality in growth of society

More VRS/retrenchment Unemployment, insecurity/security to existing employees

Growth of services industryTrends will attract women employees, HR dept will be professionalized-ves: Encourages casual/temp/PT/child labour, leads to higher employee turnover

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T&D will be the central focus in LPG Equilibrium in demand and supply of

manpower is possible even at international level

Multiple criteria will be followed in selection rather than just one criterion

Leads to flat structureResults: More responsibilities to individual managers-No promotional opportunities within, so frequent job changes-Emphasis on self-mgmt-Quick decisions and responses

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Changing employersEmployers will be leaders rather than managers. They will practise theory YParticipative approach rather than proprietary approachCare for employees’ personal life tooScrupulously fair in reward or punishmentShare with the employees the company’s fortunes/profitsOrganization will be more adaptable to individuals than vice-versaThe job of creativity and innovation will be left to the workers

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Changing Government PolicyStill more importance for HRD and related areas, e.g. separate ministries for HRD, Labour, Personnel and grievancesHRD will spread to Co-ops, NGOs, Agriculture & local bodiesNow HRD concept is being infused in Govt depts/ offices, e.g. in Universities, Boards, Semi-govt organizations,etc.Govt. may allow ‘hire and fire’ policy but it can be regulated by independent bodies like Central Vigilance Commission, Courts, Tribunals, etc.

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Changing Government PolicyDrastic changes in labour laws possible, especially in the case of child labour, women workers, minorities and environmentGovt. will encourage setting up of industries in rural and backward areasResults: Non-availability of workers & executives to work in such areasLack of urban facilitiesMismatch between urban executives and rural workersMore expenses to train rural workers

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Changing Government PolicyLaws on merger/takeover may still be relaxedResults: Frequent change of ownership, so uncertainty, anxiety and insecurity to employees- Cultural shock to managers and workers- Loss of employmentRole of local bodies- Influence in selection and IR- Earnest efforts for Industrial development in the area

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Trends Reshaping the Future of HR

Tapping Skills Anywhere, Anytime With widening skill gaps, HR will need to quickly access critical skills on demand, when and where they’re needed.

Managing Your People as a Workforce of One HR will need to treat each employee individually, with customized HR and talent-management solutions.

The Rise of the Extended Workforce HR’s mission and mandate will evolve to enable it to maximize the extended workforce’s strategic value.

Digital Radically Disrupts HR A range of technologies are transforming how people carry out their work, and how HR supports employees.

Reconfiguring the Global Talent Landscape HR will transform to adapt to a more global world, match talent with tasks in various locations, and support mobile workforces across geographic barriers

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Trends Reshaping the Future of HR

Social Media Drives the Democratization of Work Knowledge workers will harness social media to collaborate, radically disrupting organizational structures, hierarchies and job titles.

Talent Management Meets the Science of Human Behavior Scientific insights and analytics will provide HR with new tools to drive workforce performance.

HR Drives the Agile Organization HR will play a critical role in enabling companies to adapt to changing business conditions.

HR Must Navigate Risk and Privacy in a More Complex World HR will need to adopt risk-management strategies covering everything from confidential data to the turnover of talent.

HR Expands Its Reach to Deliver Seamless Employee Experiences HR will evolve from a stand-alone function to one that spans disciplines and boundaries to deliver cross-functional, holistic employee experiences.

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THANK U

Leadership & Management

HUman Resource future