human resources management, includes the hiring of new employees, the ... new economy, winning will spring form organizational capabilities such as speed,.
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CHALLENGES OF HRM IN 21st CENTURY: A NEW PARADIGM FOR CORPORATE EXCELLENCE Dr.K.Palani Professor cum Principal Dr.Ambedkar Institute of IT & Management Science Jagda, Rourkela, Odisha.
ABSTRACT This study tunes with various challenges of HRM in Industry. In 21st century, many companies have evolved the role of the Human Resources, corresponding to the change in competitive market. Competition has increased both locally and globally, companies must become more flexible, tough, responsive, and customer oriented to succeed. HR function has come a long way in integrating the processes, policies and systems to reflect an evolution in the corporate business world. Trends in Human resource management have changed the way we work, as organizations are more dependent on HRM to increase the success ratio in today’s competitive global environment. Rapidly transforming business landscape has many human resource management challenges which will continue to evolve for years to come. Management itself is a challenging job. New problems and challenges develop due to the change in the business environment. Globalization of economies and resultant competition, liberalization, deregulation, privatization, mergers and acquisitions, development of internet and web based technologies have changed the landscape in which organization/business used to operate in the past. Speed and accessibility across the globe have brought about changes in organizational paradigm and executives have been confronted with unprecedented challenges of change during the past decade. The most important challenge before a manager today is how to manage change in changing world with the knowledge of traditional, rigid and static management systems and process. In the present paper an attempt has been made to study and analyze the challenges before human resource management in the context of rapidly changing business environment. Key words: Challenges of HRM in Knowledge management, Knowledge sharing, Talent management, Talent acquisition & Retention, Innovation & Creativity, HR Outsourcing, Workforce Diversity.
INTRODUCTION In 21st century the nonprofits, government, and private organizations seek to adapt to an everchanging professional environment. HR departments face particular challenges. Their role, human resources management, includes the hiring of new employees, the administration of benefits, and the monitoring of regulation compliance. To best prepare themselves for the 1
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changing face of human resources management, HR departments must rise to the challenges of retaining and building a talented workforce. Human resource management is a process of bringing people and organizations together so that the goals of each other are met. It is that part of the management process which concerned with the management of human resources in an organization. It tries to secure the best from people by winning their whole hearted cooperation. “HRM is concerned with the most effective use of people to achieve organizational and individual goals. The role of HR manager is shifting from a protector and screener to the planner and change agent. In present day competitive world, highly trained and committed employees are often a firm’s best bet. HR professionals play a key role in planning and implementing downsizing, restructuring and other cost cutting activities. In the new economy, winning will spring form organizational capabilities such as speed, responsiveness, agility,
learning capacity and employee competences. Successful
organizations will be those that are able to quickly turn strategy into action: to mange processes intelligently and efficiently; to maximize employee contribution and commitment; and to create the conditions of seamless change.
OBJECTIVES OF THE STUDY
To find out the exact need of HR challenges in the terms of Knowledge, skills and attitude and also the enhancement of potential HR for higher technology.
To procure right types of HR personnel for right jobs at the right time. To provide right kind of training to personnel to increase their potential HR for higher Productivity.
To know the capability of the industries to cope-up with the current and increasing the needs of HR challenges in industry.
To find out an ideal HR practices and challenges for current needs of the Employees would work hard when they feel that they are “wanted” in the organization.
Employees would work better when they see that their organization is providing them an opportunity to develop and utilizing their capabilities to a large extent by effective HR practices and challenges in industry
Employees will have high level of commitment when they see that their organization is willing to invest time and other resources for the future development of its people through by effective HR practices in industry for future challenges.
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The study is intended to be a most optimistic work carried out with a trust and faith in organizations that are now setting examples of being centres of excellence at global level by effective implementation of HR practices in industry.
SCOPE OF THE STUDY The present study is confined to cover HR practices in industry to all employees for meet the future challenges. The Study has covered at all level of employees to present comprehensive picture of potential HR practices and development in the industry. The scope of Employee of HR practices and Development is very wide for future challenges. Research in behavioral sciences, future trends in managing knowledge employees and advances in the field of HR have expanded the scope of potential HR practices and development functions in recent years in industry to meet the challenges.
METHODOLOGY OF STUDY This study is generally adopted by researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods, techniques but also the Methodology. The researcher tries to explore the present condition of HR practices to find out the means to enhance such practices and systems under investigation to meet the future challenges. The methodology involves mostly quantitative and qualitative in nature with observable behaviors. The Data taken from the literature, annual reports and manuals, journals, internet, newspapers, articles, magazines published at national and international level are also referred for the purpose. The research design used by the researcher is in accordance with the empirical requirements. This research work is in the form of ‘ex-post-facto” study in which the researcher tried to study the existing perception of potential HR practices, concept, philosophy, and measures etc. without manipulating in any way the scenario as it stands presently in industry.
CHALLENGES OF HRM IN KNOWLEDGE MANAGEMENT HRM is a knowledge Facilitator HRM must ensure alignment among an organization's mission, statement of ethics, and policies. These should all be directed toward creating an environment of sharing and using knowledge with full understanding of the competitive consequences. Furthermore, HRM must nourish a culture that embraces getting the right information to the right people at the 3
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right time.HRM is an Experience Creator HRM should also create the "ultimate employee experience." That is, by transforming tacit knowledge into explicit knowledge through education, organizations must build employee skills, competencies, and careers, creating "bench strength." This combines the traditional training and development responsibilities of HRM with the new responsibilities of human capital steward: using all of the organization's resources to create strategic capability. Organization’s new staff orientation, which emphasizes the firm's mission values, and history, is an example of this process of making tacit knowledge more visible.
HRM in Culture change: HR has a key role to play in nurturing and strengthening knowledge management through "learning initiatives" and "culture change initiatives." Leveraging collective knowledge is possible only when people value building on each other's ideas and sharing their insights. Much of this shaped by the culture of the organization. In some cultures, where knowledge is seen as power, knowledge sharing may be seen to be in conflict with the individual's personal interests.Therefore, institutionalization of Knowledge Management requires HR to focus on managing the culture change mindset of the people to strengthen collaborative team working and knowledge sharing. These culture change initiatives will strongly support our efforts to become a stronger knowledge driven company, committed to business excellence. HRM in Incentive and Reward Program HR needs to institute a system of rewards and recognition, training and performance development practices -- activities that reinforce the discipline of sharing, documenting knowledge and reuse of others' ideas with pride to achieve business goals. People in business most often behave in a way that increases their career opportunities, or recognizes their achievement. Most organizations reward individual effort or task achievement. They reward something done in a crisis, but most incentive programs do not reward avoiding a crisis. The best KM practitioners reward employees for learning, sharing and collaborating. A grassroots desire among employees to tap into their company's intellectual resources. HR can impact this through training and practices that reinforce this desire.
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CHALLENGES OF HRM IN KNOWLEDGE SHARING Establish Opportunities for Interactions Most knowledge is shared socially, e.g. face to face or telephone conversations. However, often the sharing of knowledge happens via electronic communications, and document repositories Organizational efforts should be focused on creating opportunities for employees to interact, whether formally or informally, to foster knowledge sharing. Creating these opportunities should aid in building trust among employees, to overcome the knowledge sharing obstacle whereby employees are not comfortable sharing their knowledge with people they do not know. Informal opportunities would include unscheduled meetings, informal seminars, or coffee break conversations. These communities of practice are a group of people sharing experiences and knowledge in a free flowing way and fostering new approaches to problem solving
Establish a Mentorship and/or Coaching Program An organization can develop a mentorship program to gently transfer “subtle and private skills and experiences” to others. The mentor is not explicit in the sharing of knowledge, but they will role-model the behaviors the mentor found to be effective. Mentors also introduce mentees to their network, in a low pressure, and informal setting. Coaching is not just for employees, but also for managers, to aid them in dealing with day to day issues, and to aid them to become better coaches to their staff. Establish Incentive Schemes To properly encourage knowledge contributions, organization must re align incentive schemes to accurately account for these vital contributions. The incentives provided to employees should be both short term, e.g., bonuses; and long term, e.g., salaries, promotions, etc.; to reflect the organization’s short and long term focus. Long term incentives; involve tying knowledge sharing in with the organization’s evaluation and compensation structure Organizations can develop knowledge sharing competencies to use during the appraisal process. Use Recruitment, Selection, Training and Development Recruiting and selecting employees that fit well with the knowledge sharing culture fosters knowledge sharing. In addition, through recruitment and selection strategies, the organization can fill the organization’s knowledge gaps; as opposed to just fill jobs. The organization can use tools such as personality and aptitude tests to determine how well those recruited would 5
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fit in the organization. They should also be evaluated on their propensity to share knowledge. The training process can also influence knowledge sharing. Often workers do not use knowledge sharing technology and tools simply because they are not sure how they work or do not understand what behaviors they are expected to practice. Organizations should ensure that employees are provided with training regarding the technology tools to support knowledge sharing, as well as the behaviors that they are expected to exhibit. Fostering knowledge sharing through global assignments where employees can transfer their skills and knowledge to various parts of the organization as they move from place to place and also personnel transfers from one group to another as a means of sharing knowledge.
CHALLENGES OF HRM IN KNOWLEDGE CREATION AND LEARNING In developing a general framework for understanding KM, we refer to perhaps the most influential framework for knowledge creation developed by Nonaka and Takeuchi in their studies of knowledge creation and use in Japanese companies. Nonaka and Takeuchi distinguish between two types of knowledge, explicit and tacit. Tacit knowledge is basically experiential, whilst explicit knowledge is expressed, and often seen as transferable in one way or another; it includes cognitive and technical elements. Cognitive elements operate through mental models, working worldviews that develop through the creation and manipulation of mental analogies. Mental models (like schemata, paradigms, perspectives, beliefs and viewpoints), according to Nonaka and Takeuchi, help individuals perceive and define their world. The technical element of tacit knowledge includes concrete know-how, crafts, and skills. Explicit knowledge is about past events or objects “there and then”, and is seen to be created sequentially by “digital” activity that is theory progressive. An alternative perspective on the distinction between explicit and tacit knowledge. One difference is that the top row appears to be positivist in its orientation through its adherence to objectivity, whilst the bottom row is critical in nature. At its core are conversion processes between tacit and explicit knowledge that result in a cycle of knowledge creation. Conversion involves four processes: socialization, externalization, combination, and internalization, all of which convert between tacit and/or explicit knowledge. Externalization comes next, as tacit knowledge is made explicit. Here, the creation of conceptual knowledge occurs through knowledge articulation in a communication process that uses language in dialogue and collective reflection. The next process is combination, where explicit knowledge is transformed through its integration by adding, combining and categorizing knowledge. This 6
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integration of knowledge is also seen as a systemizing process. This is a learning process, which occurs through the behavioral development of operational knowledge.
CHALLENGES OF HRM IN INNOVATION AND CREATIVITY Knowledge itself is not of any value to an organization unless these contextual aspects are clearly understood. Much of the knowledge, both tacit and explicit remains largely untapped in most organizations; without a thorough understanding of context, it will not be possible for HRM or KM to support the development of management and leadership capabilities to support innovation and creativity. Much work in HRM has focused on identifying facilitators and inhibitors of innovation, such as people e.g. effective leadership behaviors associated with particular innovation phases; structure e.g. the impact of centralization, formalization, complexity, stratification, lateral communications, matrix structures, requisite variety, double-loop learning and organizational size or resource availability. Other approaches have found that strategic type, organizational climate and culture, and organizational environment are also important facilitators or inhibitors of innovation. Organizations also seem to adopt very different strategies towards staff directly involved in innovation as compared with staff in general, with less use of flexible employment policies for this group. An alternative is to see innovation as more dynamic and fluid, allowing for groups, individuals and collaborative partners to differ in their perceptions and interpretations of events.
CHALLENGES OF HRM IN TALENT MANAGEMENT Talent management is understanding where we are today with staff and where we need to go with staff to meet the company's needs. During this process understands the limitations that a person(s) have and where to best develop or acquire that talent. The HR person should be the facilitator of this process. Talent Management is the strategic intent of a company to recruit, develop and compensate individuals to achieve its business goals and stay competitive.HR should be playing an important role here by putting in the right environment (training, reward & recognitions, Comp, etc) and empowering managers to attract, develop and retain their teams. Talent management begins with understanding what each team, or collaborative working group, needs in terms of current and future "energy, intellect, spirit and membership." Talent management starts with talent identification; identifying the people in organization, and recruiting those external applicants who best match needs now and for
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growth. HR is the function who hires the right people, develops those people and helps the managers to drive performance actively.
CHALLENGES OF HRM IN TALENT ACQUISITION Talent acquisition is the process of finding and acquiring skilled human labour for organizational needs and to meet any labour requirement. When used in the context of the recruiting and HR profession, talent acquisition usually refers to the talent acquisition department or team within the Human Resources department. The talent acquisition team within a company is responsible for finding, acquiring, assessing, and hiring candidates to fill roles that are required to meet company goals and fill project requirements. Talent acquisition as a unique function and department is a relatively new development. Talent acquisition professionals are usually skilled not only in sourcing tactics, candidate assessment, and compliance and hiring standards, but also in employment branding practices and corporate hiring initiatives. The Modern talent acquisition is becoming a unique skill-set. Because talent acquisition professionals many times also handle post-hire talent issues, such as employee retention and career progression, the talent acquisition role is quickly becoming a distinct craft. Some recruitment industry advisors even advocate for a talent department unique from the HR department, because talent acquisition and development is so intertwined with a company’s ultimate success and effectiveness for meet the future challenges.
CHALLENGES OF HRM IN TALENT RETENTION In the current scenario, a major challenge for an organization is to retain its valuable and talented employees. There are several challenges for employee retention as follows: Monetary dissatisfaction is one of the major reasons for an employee to look for a change. Every organization has a salary budget for every employee who can be raised to some extent but not beyond a certain limit. Retention becomes a problem when an employee quotes an exceptionally high figure beyond the budget of the organization and is just not willing to compromise. A high potential employee is always the centre of attention at every workplace. Individuals speak all kind of lies during interviews to get a job. They might not be proficient in branding but would simply say a yes to impress the recruiter and grab the job. It is only later do people realize that there has been a mismatch and thus look for a change. Problems arise whenever a right person is into a wrong profile. An individual loses interest in work whenever he does something out of compulsion. The human resource department should be very careful while recruiting new employees. 8
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Some individuals have a tendency to get bored in a short span of time. They might find a job really interesting in the beginning but soon find it monotonous and look for a change. The management finds it difficult to convince the employees in such cases. Individuals must also understand that every organization has some or the other problem and adjustment is required everywhere, so why not in the present organization. An individual should voice his opinions clearly to make things easier for the management.
Unrealistic expectations from the job also lead to employees looking for a change. There is actually no solution to unrealistic expectations. An individual must be mature enough to understand that one can’t get all the comforts at the workplace just like his home. Individuals from different backgrounds come together in an organization and minor misunderstandings might arise but one should not make an issue out of it. An individual must not look for a change due to small issues.
CHALLENGES OF HRM IN SIX- SIGMA & HR OUTSOURCING The recent quality management standards 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. Six- sigma practices 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 HR Outsourcing has become new mantra in the corporate business world. Modern as well as traditional organizations are now trimming down their employees from their payroll, and thus Human Resource Outsourcing (HRO) is slowly becoming the new buzzword. Outsourcing has no longer the privilege of only huge multinational organizations. Today HR professionals are hardly hired for their ability to process employee information, sort resumes or process payroll on time. Instead, HR is expected to deliver value in areas like organizational effectiveness, talent management, change management, leadership development, succession planning, merger integration, strategic compensation, etc. The primary benefit of HR 9
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outsourcing is that it will allow the leaders to tackle these more strategic issues. HR needs to embrace outsourcing to reduce costs and get access to higher levels of service. CHALLENGES OF HRM FROM TRADITIONAL ROLE TO 21st CENTURY The traditional role of HR in the 21st century is changing into integrating HR into organizational business planning, which adds another dimension to the delivery of HR services,” “In this new role, HR professionals who are managers and supervisors must take on the emerging roles of business partner, change agent, and leader in new organizational structures different from the past.”This becomes more challenging, as HR professionals try to meet this challenge while continuing day-to-day operational and political management of HR. On top of these changes, many HR departments must do all of this with a downsized staff that does not have the expertise needed to meet the demands. In the 21st century for HR professionals are increased outsourcing, downsizing of HR departments, a conflict of 20th century HR functions versus more forward-looking responsibilities, a lack of understanding of the business among HR staff that keeps them away from the decision-making table and an increased emphasis on improving efficiency of HR services, among others. The major role of strategic business partner for the HR professional is increasing substantially; they are now identified as a member of the management team involved with HR planning, organization design and strategic change. The HR generalists of the 21st century will have to have all the competencies necessary to have a place in the businesses of the future.
CHALLENGES AND PROBLEMS OF THE STUDY The challenges and problems thwarting HR professionals in 21st century in industry. For a strong HR system and practice is necessary to go beyond the existing issues and benchmark against the best in industry. The various HR activities and practices have not been conducive for continuity and long term planning in the industry. On the positive side, technological changes have had immense influence in the recent past. The time has come to follow and approach the rehabilitation of weak HR system and practices to start a reconstruction mode in industry. The challenge for the development of HR is not only to come on top of the competition among the industry in the country but also at internationally competitive practices and system by effective & efficient HR practices in industry.
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DISCUSSION The major challenge faced by industry is to protect the impact of competition. The real challenges of the HR practices are how to transform into global competition. The concern organization has to empower, engage and energies the challenges of HR activities and practices to create effectiveness & efficiency of industry in the country. The emergence of HR practices in the country has presented new challenges for entrepreneurs. How well Challenges are met in the context of HR practices & activities in changing economic & environment scenario in the industry.
SUGGESTIONS
Sufficient and regular HR practices & program is to be adopted in the industry. Proper HR policy is to be adopted within the stipulated time period to meet the challenges of HR in industry
The exiting HR practices & program should be revised and new practices to be adopted in practice.
The HR department should be provided required facilities for challenges of HR practices for employee development.
All the employees should be given opportunity for advantage without any prejudice The concern organization and other related agencies including HR department should come forward for making awareness for various HR practices, program & facilities provided in the industry.
Proper allocation of fund should be made to improve the quality of HR practices & program in the industry.
Develop new competency models that refocus and revitalize the HR workforce. Newly developed competencies can offer HR practitioners an opportunity to define excellence and, even more importantly, demonstrate what they can bring to their organization.
Show creativity and efficiency by adapting some of the existing competency models and HR delivery systems and tailor them to fit individual organizational needs.
Identify improved technology that facilitates HR decision-making by managers and reduces the workload for HR professionals. 11
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Make HR professionals aware of the competencies they must possess in order for them to be successful in the 21st century world of HR.
Adopt new competencies, redefine roles focused on results and evolve into an HR professional that makes a bottom-line difference for the organization.
After putting into place new systems and competencies, develop an in-house marketing campaign that highlights the services
In order for the HR professional to be a leader in the 21st century, they will need to increasingly embrace the challenge of serving in the role of ‘business strategists’ and ‘change agents’ for their organizations,
The successful HR professional of the 21st century must emerge their roles along with the identification of new competencies needed to get the job done
CONCLUSION This paper has increasing importance of HR practices to organizations challenges the nature, role and boundaries of HR in significant ways. This paper has specific challenges areas of HR which can respond to these challenges, as well as the implications of HR practices for organizational development. The role of the HR manager must be parallel to the needs of the changing organization. Successful organizations are becoming more adaptable, resilient, quick to change directions, and customer centered. Within this environment, their professional must learn how to manage effectively through planning, organizing, leading and controlling the human resource and be knowledgeable of emerging trends in employee development as the discipline that promotes an integrated approach of all challenges in the industry. These are the assets for individual Employees as well as for organization.HR may play a major enabling role in helping and identify the Challenges of potential HR for organizational excellence in 21st century. REFERENCES 1. Buller, P.F. and Napier, N.K. (1993). Strategy and human resource management integration in fast growth versus other midsized firms. British Journal of Management, vol. 4, 77-90. 2. D., Chan, A, and Akhtar, S. (2000) “Organizational Context and Human Resource Management Strategy” A Structural Equation Analysis of Hong Kong Firms International. Journal of Human Resource Management Vol 11(2), 264-277. 3. Delaney, J.T., and Huselid, M.A. (1996), ‘The Impact of Human Resource Management Practices on Perceptions of Organizational Performance,’ Academy of Management Journal, 39, 4, 949–969. 4. Delery, J.E. (1998), ‘Issues of Fit in Strategic Human Resource Management: Implications for Research,’ Human Resource Management Review, 8, 289–310. 12
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