1. Emerging Issues in Human
Resources Management
BY: PRIYANKA GUPTA
RITIKA SHARMA
SHAILEJA SINGH
SHAILJA GAUTAM
POOJA GUPTA
2. Sessions Outcomes:
• Discover the global trends affecting human resources
management,
• Describe the impact these trends are having on organizations
and the management of human resources,
• Develop an appreciation of the changing role of human
resources management in supporting organizational strategy.
3. What do you think what Human Resources
Management is?
•How would you define or describe Human
Resources Management (HRM)?
– What is it?
– How do you define it?
4. Human Resources Management is:
• Historically HRM has been described as being responsible for
the attracting, recruiting, selecting, training, assessment and
compensation of employees while ensuring compliance with
employment and labour laws.
• More recently HRM has also become involved in succession
planning, business continuity planning, workforce diversity,
labour relations and some aspects of mergers and
acquisitions.
8. Impact of Global Trends:
– Organizations have become more global in markets and operations,
– Organizations will experience higher levels of risk and uncertainty,
– The disruptive nature of globalization will increase the need for
organizations to be more flexible and agile,
– There will be increased political and social pressures for ecological
and societal responsibility,
– Organizations will be facing and challenged by economic and
demographic imbalances.
9. -The use of technology will increase at a rapid pace
– Work will be come more complex and interdependent,
– Work and thus people will be more mobile and global in orientation
leading to increased workforce migration,
– There is likely to be a growing mismatch between skills needed and
talent available,
– There will be an increased need for demographic and cultural
sensitivity,
– More work will be done by diverse work teams often at a distance
from one another,
– Declining loyalty between organizations and employees,
– The traditional definition of family is undergoing transformation
10. How will these environmental and organizational
changes affect Human Resources
Management?:
11.
12.
13. Globalization
• Globalization is defined as the system of interaction among the countries of the world in
order to develop the global economy.
• Globalization refers to the amalgamation of economics and societies around the world
which means that world trade and financial markets are becoming more integrated.
• Growing internationalization of business has its impact on HRM in terms of problems of
unfamiliar laws, languages, practices, competitions, attitudes, management styles, work
ethics etc.
• Globalization has an effect on employment patterns worldwide. It has contributed to a
great deal of outsourcing which is one of the greatest organizational and industry
structure shifts that change the way business operates .
• Globalization is also seen as changing organizational structures where expenses can
move up or down as the business climate dictates .
• As a result HR managers have to confront with more heterogeneous functions and more
involvement in employee's personal life.
14. Global Human Resources
• The number of companies exploring global markets increases as
technology facilitates simpler information-sharing processes and
opportunities for growth in markets outside the U.S. borders. Even small
businesses are tapping global markets, as evidenced by technology giant
Cisco's October 2011 article titled, "How Small Businesses Are Going
Global," by Anne Field.
• Social media, professional networking and lightning-speed technology
assist companies in their aspirations of reaching foreign markets; however,
HR plays a critical role in developing staff who are capable of initiating and
sustaining those overseas relationships.
• Emerging issues for HR related to globalization include sourcing and
recruiting visionary personnel with the cultural fluency necessary for
employers building multinational business ties.
15. Factors driving globalization
• shortage of talent in developed countries
• availability of low cost labour from emerging countries
• growing consumers in developing countries
• technological progress.
16. Shortage of Talent in Developed Countries
• Despite the current economic downturn and unemployment, most developed
countries, including the United States, Germany and Japan will face long term
talent shortages mainly due to ageing and the retirement of baby boomers. There
are more workers retiring than entering the labour force in these countries.
• By 2020, for every five retiring workers, only four new workers will join the labour
force in most developed countries. According to one estimate the United States
will need to add 26 million workers to its talent pool by 2030 to sustain the
average economic growth of the two past decades unless a technological
breakthrough replaces manpower,
• while Western Europe will need to add 46 million employees (World Economic
Forum, 2010). The shortage of workers is predicted across most industries,
including manufacturing, construction, transport and communications, trade,
hotel and restaurants, financial services, IT and business services, health care,
public administration, and education.
17. Availability of Low Cost Labour from Emerging
Countries
The opportunity has never been greater for multinationals to attract top talent from emerging
countries, such as Brazil, Russia, India, and China, or to outsource work to these countries.
• Global population growth differs greatly between developed and developing countries. In the
developed countries, USA, EU, and Japan, the current annual rate of growth is less than 0.3 per
cent, while in the rest of the world the population is increasing almost six times as fast.
• According to McKinsey Global Institute, there are approximately 33 million potential professionals
in emerging markets and they are growing very quickly. The stock of suitable, young professional
talent in emerging markets is growing at 5.5 per cent annually, while the number in developed
countries is growing at just 1 per cent annually (McKinsey Global Institute, 2005 - II).
• The total number of university-educated workers in low-wage countries far exceeds the number
for higher wage countries. Currently, India produces as many young engineers as the United
States, and China produces more than twice as many. Russia produces 10 times as many finance
and accounting professionals as Germany. According to the International Organization for
Migration, there were an estimated 214 million international migrants in the world in 2010, and
fifty-seven per cent of all migrants live in high-income countries (World Migration Report, 2010).
The number of migrants is likely to grow exponentially in the coming years. Furthermore, the
migration of workers and outsourcing of work would not be limited to unidirectional flow from
emerging countries to developed countries.
18. Technological advances
Technological advances have a significant impact on HR business practices. Due to the
advancements in the technology there has been a drastic change in the approach to the
various projects and the scenarios that guide to the organizational regulations.
• Firstly, the need of skilled personals is mentionable. In order to survive in a
competitive environment the organization definitely in need of the skilled personals in
substantial number to handle the situations and technical equipments.
• In anorganization there are "hot" sectors which require a high of technical experts like
telecommunications, hospitality, retailing, banking, insurance, bio-technology etc.
• Other aspect is telecommuting where the employees started to work remotely from a
place other than their primary office.
• Telecommuting became a popular alternative to avoid the daily commute where the
employees use phones and internet to transmit their office works.
• This has been a powerful cost effective tool in the sense that companies have been
successful in increasing their applicant pool through this mode and staffs also may live
far away from cities and gain considerably due to savings in rents, transportation, etc.
• The biggest issue due to technological advancement is adaptability, with companies
looking at tools which can integrate with the internet, while other issues of concern
include data privacy, security and business continuity/disaster recovery.
19. Changes in the Economic Environment
• In an economic situation companies suffer both internal and external
pressures. The external competitive pressure stemming from the economic
crisis produces a drop in demand and an increase in unemployment, which
in turn affects the global competition in the market.
• On the other hand the internal management of the company focuses on
efficiency. This leads to pressure to reduce costs and fringe expenditure, as
well as to the need to justify the need for each and the total amount of all
expenditure to be incurred. High unemployment and layoffs are clearly
HRM and managerial issues.
• Without a doubt, these matters influence the strategic HR function. In an
inflationary economy, the resources tend to become scarce and the costs
of machine, materials and labour multiply. These push up the capital and
running costs.
20. WORKFORCE DIVERSITY
• People no longer live and work in an insular environment; they are now part of a
worldwide economy competing within a global framework.
21. DEFINATION: WORKFORCE DIVERSITY
• Diversity : Acknowledging, understanding, accepting, and valuing differences
among people with respect to age, class, race, ethnicity, gender, disabilities, etc.
• Companies need to embrace diversity and look for ways to become inclusive.
Success of employee have direct link with its employee.
• Diversity can yield greater work productivity and competitive advantages .
• Demographic changes (women in the workplace, organizational restructuring,
and equal opportunity legislation) will require management to review their
practices and develop new and creative approaches to managing people. Positive
changes will increase work performance and customer service.
22. BENEFITS:DIVERSITY IN WORKPLACE
•Individual differences can increase
productivity.
• Diversity in the workplace can
improve skills and can have better
marketing opportunities, recruitment,
creativity .
• In an era when flexibility and
creativity are keys to competitiveness,
diversity is critical for an organization’s
success.
23. CHALLENGES OF DIVERSITY IN WORKPLACES
• Negative attitudes and behaviours can be barriers to
organizational diversity because they can harm
morale and work productivity.
• Managers may also be challenged with losses in
personnel and work productivity due to prejudice and
complaints .
24. REQUIRED TOOLS FOR MANAGING DIVERSITY
• Gatherings and meetings, where every member must listen
and have the chance to speak, are good ways to create
dialogues.
• Managers must implement policies like mentoring programs to
provide associates access to opportunities.
• Dispute Redressal Committee must be set up.
• Managers should expect change to be slow, while at the same
time encouraging change.
25. QUALITY MANAGEMENT
With the globalization of markets, the expectations and demands of
consumers have increased many times.
Consumers are demanding not only the innovative products but also
appreciate the best quality product at competitive rates.
In order to produce the quality products in short durations,the
organizations have adopted various strategies like outsourcing,off shoring,
insourcing etc.
26. Quality Obsession is also significant for improvement quality of the
product.
Quality Obsession can only be achieved through worker's
participation, involvement appreciation and commitment in
improving the key success.
EXAMPLE-Bharat Heavy Electricals Limited(BHEL) introduced some
innovative and novel approaches like Quality Through
Measurement(QTM) and Root Cause Analysis(RCA) to bring
attitudinal changes for achieving quality obsession.
27. TALENT WAR
Talent acquisition and retention has emerged as a key concern for
corporate in present.
Many employees were succeeded to attract the talent in competitive
rates to build their competitive advantage.
Companies introduced the concept of “flexible pay structure
including bonus,performance rated pay,high performance
pay,contract pay, cash awards etc. “to attract and retain the talent.
Shortage of talent can leads to closure of an
organization,organizations should adopt the practices like HR
accounting,effective internal training programs and retention of talent
during recession period etc. so as to manage their talent effectively.
28. EXAMPLE
“Twenty eight residents of Hinjewadi, including top names like
Infosys,TCS,Cognizants and Wipro, that once ruthlessly
poached talent from each other, have now agreed to work
collectively to reduce attrition. However, they managed to
seal a pact under which they will hire from rivals only after
candidates have fully served out notice period. The companies
have also agreed that the new employees cannot join without
a relieving letter from the previous employee”.
