Unit-1 Human Resource Management

Changing Environment of Human Resource Management (HRM)

Five factors involved in the changing environment of HRM are:

1. Work force Diversity: Workforce diversity means the heterogeneous

composition of employees of an organization in terms of age, gender, language,
ethnic origin, education, marital status, etc. Managing such diversity is really a
challenge to HRM professionals.

Factors of Work Force Diversity:

a) Primary Factors: It includes age, gender, race, ethnicity, sexual orientation,

and physical abilities represent those elements that are either inborn or exert extra
influence on early socialization.

b) Secondary Factors: These constitute the elements that can be changed or over
the period gets modified. They include a person's health habits, religious beliefs,
education, knowledge, training, general appearance, status relationship, ethnic
customs, communication style and level of income.

2. Rapid Change: Many organizations face a volatile environment in which

change is nearly constant. If they are to survive and prosper, they need to adapt to
change quickly and effectively. Human resources are almost always at the heart of
an effective response system.

3. Globalization: How to compete against foreign firms, both domestically and

abroad is a challenge in changing environment of HRM. Many companies are
already being compelled to think globally, something that doesn’t come easily to
firms long accustomed to doing business in a large and expanding domestic market
with minimal foreign competition. That’s why we have seen sometimes mergers,
acquisition etc. is done by a company (of domestic market) with a company (in
foreign market) to make the base and the business strong and grow.

4) Technology: The world has never before seen such rapid technological changes
as are presently occurring in the computer and telecommunications industries. One
estimate is that technological change is occurring so rapidly that individuals may
have to change their entire skills three or four times in their career. The advances
being made, affect every area of a business including human resource
management.

Corporate downsizing

Corporate Downsizing is the permanent reduction of a company's labor force

through the elimination of unproductive workers or divisions. Downsizing is not
always involuntary. It is also used at other stages of the business cycle to create
leaner, more efficient businesses

Side effects of downsizing: Downsizing may actually increase the likelihood

of bankruptcy by reducing productivity, customer satisfaction, and morale.

Work Life Balance

Work life balance is a method which helps employees of an organization to
balance their personal and professional lives. Work life balance encourages
employees to divide their time on the basis on priorities and maintain a balance by
devoting time to family, health, vacations etc. along with making a career, business
travel etc.

Role of HR in Strategy Implementation

1) Roles of HR in strategy implementation are to communicate the organization’s

strategy to employees and work with managers and other leaders to ensure that the
strategy is understood and implemented effectively. This can involve creating
communication plans, conducting training and development programs, and
providing ongoing support and guidance to employees.

2) HR also plays a key role in ensuring that the organization’s policies and
procedures are aligned with the organization’s strategy. This includes developing
and implementing policies and procedures that support the organization’s goals
and objectives, such as performance management systems, employee development
plans, and succession planning programs.
3) Monitor and evaluate the effectiveness of the strategy. This includes tracking
progress, identifying areas for improvement, and making recommendations for
adjustments as needed. This can involve designing and implementing systems for
tracking and reporting progress, and conducting regular reviews with management.

4)  HR plays a key role in ensuring that the organization is compliant with all
relevant laws and regulations. This includes ensuring compliance with labor laws,
safety regulations, and other legal requirements. HR also manages employee
relations, including handling employee complaints and disputes, and ensuring that
the organization’s policies and practices are fair and consistent.

5) HR also plays a critical role in developing and implementing programs that

support the organization’s goals and objectives, such as employee training and
development, mentoring, and performance management. These programs help to
ensure that employees have the knowledge, skills, and abilities needed to support
the organization’s goals and objectives.

HRM Issues in Indian Organizations

1) Law and regulation

 Employment laws should be followed by every HR person or HR should maintain

compliance with the laws and regulations. There can be changes in laws and
regulations and it is the duty of the HR department to remain updated about that.
Some companies ignore employment laws and believe that they don’t apply to
their business but audits, lawsuits, and possibly even close your company.

It does not matter what is the size of your company. It’s necessary to make sure
you’re in compliance with laws. There are regulations from hiring practices, to
wage payment, to workplace safety and the company should go through it.

2) Retaining talented employee

There is a huge competition for retaining talented employees. Startups and small
companies don’t have big budgets as their larger competitors have such as
retirement plans, expensive insurance plans, and others, etc. Employee turnover is
getting expensive for organizations and it can have a negative impact on business
growth. 
3) Attracting Talent

Attracting talent takes a large amount of investment in time and money. It’s

difficult for small businesses to keep their business running and hiring the right
people at the right time. It is also very difficult to identify whether the employee is
suitable for the job post until the employee has worked in an organization for a
while.

One of the best ways to find a suitable employee for your business is that business
can take help with staffing companies. Staffing companies provide temporary or
permanent hiring solutions that allow businesses to try out new employees with
little to no risk by these businesses can save time, money.

4) Management changes

With the growth of the businesses its strategies, structure, and internal processes
grow. Some employees face a hard time in dealing with these changes. This can
lead to employee de-motivation, decreased productivity, and a decrease in morale
during changes. Human resource managers should communicate the benefits of
these changes to everyone. Regular staff meetings should be conducted to make
your team understands the why, how, and when of the change.

5) Leadership development

Leadership development can be critical to keeping your team engaged and

motivated, and make them prepare to take more responsibilities in the future.
Leadership development should be considered as a culture this must create
opportunities for them so that they can use their strengths every day. It helps
employees to accomplish their goals and this will motivate them and give them a
chance to develop their skills.

6) Employee training and development

Training and development of employees is another common problem of HR.

Businesses have to deal with investment and they also face trouble in finding the
resources to do so. Employees who are the hardest workers in the organization may
not have the time for a training course. Training and development activities don’t
really require time or money. Recruitment of managers can help in mentoring their
subordinate employees. Organizations can also provide online training courses to
their employees.
7) Adapting Innovation in the organization

Technology keeps changing that why it is important for businesses to quickly adapt
these technologies. It is a big challenge for small business owners to adapt
innovations and technology in their organizations and make employees embrace
innovation and learn new technology.

It is difficult to deal with any change; the organization has to make sure its team
understands the importance and the reason for the change. Set clear goals for the
employees; provide them the training they need to get comfortable with it.

8) Compensation

Many companies are struggling with structuring employee compensation. Small

businesses have to compete with businesses of a similar size and corporations with
big payroll budgets.

Salary is important for an employee but it is not always the most important factor.
There must be a system of rewarding employees for their excellent performance.
With that incentive programs also encourage the employee to give their best.