comments are welcome

1. 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

2. 5 Reasons People Change
1. They want to change
2. They want to avoid negative consequences
3. They are incented to change
4. The environment around them changes
5. Discovery that constructive change is possible
2

3. 3
How is the environment changing?
 Society
 Technology
 Government
 Employers
 Employees
 Economy

4. 4
How is the environment changing?
 Society
From To
Tolerant Assertive
Modest expectation Rising expectation
Collective Individualistic
Long term oriented Short term oriented
Less educated Better educated
Aware of duties Aware of rights too

5. 5
How is the environment changing?
 Technology
From To
Labour intensive Labourless
Low cost High cost
Multi technology Specialized technology
Medium technology Complex technology
Piece-meal technology Convergent technology

6. 6
How is the environment changing?
 Government
From To
Policy of concentrated growth Balanced growth
Entrepreneur Facilitator for
entrepreneurs
Employee friendly Employer friendly
Centralized power Decentralized power

7. 7
How is the environment changing?
 Employers
From To
Domestic Business Global business
Profit oriented Efficiency oriented
Traditional Management Professional Management
Less technical More technical
Less Mgt Qualification More Mgt Qualification
Employer by inheritance First gen employers

8. 8
How is the environment changing?
 Employees
From To
Workers Knowledge workers
Blue collar White collar
Specialized skills Multi skills
Submissive Assertive

9. 9
How is the environment changing?
 Economy
From To
Closed economy Open economy
Sellers’ market Buyers’ market
Domestic business International business
Stable Unstable
Higher price Lower price

10. 10
HRM in 21st century
 Demographic changes
1.Pressure from religious and racial minorities
2. Women reservation and empowerment
3. Reservation to economically backwards from upper
castes
4.Reservation is likely to be extended to private sectors too
Reasons
Shrinking no. of PSU’s and Govt jobs
Core sectors are going into private ownership
Concept of pvt mgt and public money
Increasing role of pvt companies in social development

11. 11
HRM in 21st century
 Demographic changes
5.Increasing educational qualifications of people at
entry level
6.Awareness of the common public
7. Ratio of white collars and blue collars getting
reduced
Reasons
Increasing technical skills and automation
Increasing salary for workers
Redundancy of blue collar workers

12. 12
HRM in 21st century
8.No. of women employees rising
Last decade  Female employee growth around 50%
Male employee growth less than 20%
Reasons
Concept of dual career
New jobs are becoming more suitable to women
Equal opportunities and security for women in the
workplace
Rising expectations of self and children
Inflation
Threat of divorce/actual divorce
Growth of service industry
9.Increasing feeling of sons of the soil

13. 13
HRM in 21st century
Changing 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

14. 14
HRM in 21st century
Changing technology and automation
 Skills going redundant (e.g. typists)
Strategy-Retraining-VRS/Retrenchment-
Outplacement
Problems envisaged- After heavy investment
on technology and automation money for
retraining, VRS, etc may be scarce- Creates
personal, Psychological, financial and social
problems

15. 15
HRM in 21st century
Changing 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

16. 16
HRM in 21st century
Liberalization, 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

17. 17
HRM in 21st century
Liberalization, 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 industry
Trends will attract women employees, HR
dept will be professionalized
-ves: Encourages casual/temp/PT/child labour,
leads to higher employee turnover

18. 18
HRM in 21st century
Liberalization, Privatisation and Globalization
 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 structure
Results: More responsibilities to individual
managers-No promotional opportunities within,
so frequent job changes-Emphasis on self-
mgmt-Quick decisions and responses

19. 19
HRM in 21st century
Liberalization, Privatisation and Globalization
 Changing employers
Employers will be leaders rather than managers. They
will practise theory Y
Participative approach rather than proprietary approach
Care for employees’ personal life too
Scrupulously fair in reward or punishment
Share with the employees the company’s
fortunes/profits
Organization will be more adaptable to individuals than
vice-versa
The job of creativity and innovation will be left to the
workers

20. 20
HRM in 21st century
Liberalization, Privatisation and Globalization
 Changing Government Policy
Still more importance for HRD and related areas, e.g.
separate ministries for HRD, Labour, Personnel and
grievances
HRD will spread to Co-ops, NGOs, Agriculture & local
bodies
Now 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.

21. 21
HRM in 21st century
Liberalization, Privatisation and Globalization
 Changing Government Policy
Drastic changes in labour laws possible, especially in
the case of child labour, women workers, minorities and
environment
Govt. will encourage setting up of industries in rural and
backward areas
Results: Non-availability of workers & executives to work
in such areas
Lack of urban facilities
Mismatch between urban executives and rural workers
More expenses to train rural workers

22. 22
HRM in 21st century
Liberalization, Privatisation and Globalization
 Changing Government Policy
Laws on merger/takeover may still be relaxed
Results: Frequent change of ownership, so
uncertainty, anxiety and insecurity to
employees- Cultural shock to managers and
workers- Loss of employment
Role of local bodies- Influence in selection and
IR- Earnest efforts for Industrial development in
the area
* * *

23. 23
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

24. 24
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.

25. 25