Human Resource Management

HRM: A FUTURE - SCENARIO

Dr. P. V. Kulkarni

ABSTRACT Technological changes, globalization and liberalization have changed the way business is being done in the world. Because of global expansion of limits of business, human resource department has also attracted personnel world around and India is not exception to that. The paper has elaborated the various issues in human resource management which suggests human resource is not just filling various positions in organization, hiring employees, estimating emoluments, analyzing work , describing jobs etc., but is now more focused to the development of employees, their quality contribution to the ability of organization and motivate employee to achieve their objectives. B S T R A C T Key-words: Human resource, merger acquisition, changing work profile, newer organizational design, quality consciousness. INTRODUCTION Human resource Department is core of all the functions in an organization without involvement of which any organization is unable to undertake its financial as well as operational functions with the required efficiency. In past, HR department was commonly known as personnel departments which were aimed in handling the people at work and their relationship with each other the various dimension of personnel management contains three aspects: a) Personnel aspect - recruitment, selection, placement, training, appraisal, compensation,

productivity etc. b) Welfare aspect - Working conditions, amenities, facilities, benefits etc. c) Industrial relation aspect - Union management relations, dispute settlement, grievance

management, collective bargaining etc. The role of HR has expanded because of globalization and increasing percentage of overseas employment. These globalization and liberalization has also resulted in promotion of better business strategies for the growth of organization which includes in itself merger and acquisition, newer organizational design etc. This ultimately creates challenges before HR department.

Objective The objective of paper is to present the changes the HR departments should undertake in its functioning with acquiring various business techniques and analyze problems to provide the appropriate solutions to overcome these problems. Methodology The analysis is based fully on secondary data like books, journals, articles and information available on internet. Upcoming Challenges in Human Resource Management:- The emerging challenges before Human resource Management can be understood by below mentioned concept. 1. Merger and Acquisition When an organization tries to increase its size, to gain access to market and for increased profitability it may come either through grass-root project or through Merger and acquisition. The grassroots projects takes lots of time in research and their implementation so the best generic strategy for expanding the business firm is through Merger and Acquisition. The motive behind merger can

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Human Resource Management

variously be described as practical, psychological, or opportunistic but the primary objective Remains the same to achieve synergy. Before going in detail, let us discuss what is merger and acquisition. In merger, one organization merges whole of its entity in another organization. While in acquisition, one organization acquires total control over the management of other. The stages in merger and acquisition can be classified into two phases: 1. pre merger and acquisition phase 2. post merger and acquisition phase In pre M&A (merger and acquisition) phase the organization which is going to acquire another tries to assess the cultural and organizational differences between two, the role of leaders in the organization, life cycle of the organization, working-culture and the management styles while post merger phase consists of assessment of plans for successful integration. The challenges before successful integrations are: 1. Diversified and incompatible cultures 2. Loss of key talent 3. A clash of management styles 4. Managing the phenomenon of ‘change’ 5. Unclear objectives 6. Deciding HR policies etc. These changes after integration are the most challenging issues before HR department. The M&A sometimes leads to serious impact to the performance of the employees and which results as most problematic area for HRD to remove all these hurdles. The HR management generally tries to develop preliminary organizational design and identifies the top three levels of management which assess the critical factors and deploy the appropriate resources to new merged company, again it tries to retain the skilled personal and remove those who are of no more use and develops a balanced reward, award strategy and payroll benefits which will motivate employees to work with new zeal. 2. Changing workforce profile Over the period of time, Indian labour force has changed drastically. Earlier it was the employees who used to do such work which is demand and expectation based. Now the new HR employees have come up with more skills and higher expectations. To understand such workforce, HR department needs to move towards a more inclusive corporate culture and develop a clear understanding which includes demographics, skill sets, personality traits and employee perspectives on the organization and culture. Now organizations are hiring more young groups than matured ones. With the changing profile of employees, their expectations have also changed. They expect better compensation and working facilities. Therefore these are the challenges before HR department, to have realistic job preview so as to avoid unrealistic expectation and design a suitable retention strategy and develop quality of work life. 3. Newer Organizational Design To manage with the changing environment the organizations are also searching new ideas for sustaining the competition. Now-a-days, organizations have not only interested in new dynamic working strategy but they want something which tremendously reduce the burden of cost as well as management. Unlike earlier days, organizations do not consist of division of labour, departmentation, authority, delegation and hierarchy level. Now they are more interested in replacement of permanent jobs and adapt temporary work situation. Organizations are transformed from a structures built out of jobs into a field of work needing to be done. Increasing Quality Consciousness With the increased competition at global level the organizations are compelled to focus more on quality assurance as today's customer is more interested in those organizations who deliver quality products and services, this demand of consumer leads to birth of various quality standards like quality certification (like ISO 9000,9001,9002,9003 certification), six sigma, Kaizen etc. and require such

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skills which is vary reactive to these new techniques for this purpose HR management have to take proactive initiative like: 1. To design actions to meet new requirements 2. To trace out problems created by new technological changes 3. To develop attitude of acceptance in employees 4. To create culture of quality and six sigma in organization 5. To recognize training need if required by professionals This proactive attitude of HR management will lead them towards more proper and well versed working environment and support them to encounter environmental changes. Summing Up: In order to meet the emerging challenges, the personnel People have to equip themselves better with skills in dealing with the human side of the enterprise. The HR consultants have longed warned Hr managers about the changing work force, impacts of merger and acquisition, adaption of new organizational design and the demand of efforts from the employee’s side in maintaining quality. Conclusion Human Resource Department is not different than other aspects of a business in being able to deliver significant benefits to the company but in the emerging scenario, the role of HR manager is changing rapidly due to changes in government policies, unions, labour legislations and technology. The historical functions of HRM now need to be strategically focused towards developing and sustaining organizational capabilities to face the emerging challenges of environment. In the context of changing environment due to globalization, liberalization, the role of HR managers has also changed. They now need to focus on strategic issues, designing and taking proactive actions, developing integrated HR system, motivate employees towards team-work, working as change agent and marketing HR potential’s contribution in the organizational effectiveness in totality. The challenges can be faced by HR management effectively, if these strategies are implemented. Hence, the role of HRM will be more significant in future due to the emerging scenario. REFERENCES: • Emerging Issues and Challenges for HR Strategies By V.V.Vara Prasad and Dr. B Murali Krishna • Article on HR Challenges in Mergers and Acquisitions by Mr. Sanjay Duggar • Human Resource Management by LM Prasad, second edition 2005, published by sultanchand and

sons, 23 Daryaganj new Delhi.110002. • Human Resource Issues And Trends, Article By Jean Scheid, Edited & Published By Michele

McDonough On Feb 22, 2010 • The Challenges of Human Resource Management by Dr.Alvin Chan, Research Fellow at a

research forum in Asia. • Emerging Issues in Human Resource Management, by Dr. N. Rajendhiran & S. Sundararajan • www.bing.com • www.erbi.org • HRM – Strategy & Practice – Robert Compton • The Role of HRM in CSR – Strandberg Consulting – Bernaby

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ISSN : 2230-9667 Chronicle of the Neville Wadia Institute of Management Studies & Research 104