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INTRODUCTION
In this competitive scenario where there is immense demand for people and the talent pool is
shrinking, Human Resource Management plays a vital role in an organization. Recruitment and
Retention of employees is becoming a challenge as well as a concern area for all HR Managers.
As Indian economy is booming, HR managers will be experiencing tough times ahead in hiring
and retaining talent.
The management has to recognize the important role of Human Resource Department in order to
successfully steer organizations towards profitability. It is necessary for the management to
invest considerable time and amount, to learn the changing scenario of the HR department in the
21st century. In order to survive the competition and be in the race, HR department should
consciously update itself with the transformation in HR and be aware of the HR issues cropping
up. With high attrition rates, poaching strategies of competitors, there is a huge shortage of
skilled employees and hence, a company¶s HR activities play a vital role in combating this crisis.
Suitable HR policies that would lead to the achievement of the Organization as well as the
individual¶s goals should be formulated. HR managers have to manage all the challenges that
they would face from recruiting employees, to training them, and then developing strategies for
retaining them and building up an effective career management system for them. Just taking care
of employees would not be enough; new HR initiatives should also focus on the quality needs,
customer-orientation, productivity and stress, team work and leadership building. HR issues in
various industries like financial services, IT, Power, Healthcare, to name a few. Human Resource
Management has evolved considerably over the past century, and experienced a major
transformation in form and function primarily within the past two decades. Driven by a number
of significant internal and external environmental forces, HRM has progressed from a largely
maintenance function, with little if any bottom line impact, to what many scholars and
practitioners today regard as the source of sustained competitive advantage for organizations
operating in a global economy.
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y Human Resources Costs come under scrutiny as the economy f alters
As companies look to constrain spending to cope with the reeling global economy, it¶s no
surprise that personnel-related costs are in the crosshairs of any cost-cutting program, since these
costs represent more than 35% of annual operating expenses. Yet actions such as hiring freezes,
delayed salary increases, reduced benefits, and dreaded layoffs have significant hidden costs.
These measures dampen employee morale, slow new product rollouts, hasten departures of
higher-performing talent, and potentially reduce customer service levels. The following key
drivers will affect trends in HRM processes and technology for 2009:
y Recruitment activity will decrease while layoffs increase.
During 2008, the economic downturn evolved from sector-based (e.g., financial services,
automobiles) to broad-based. The economic conditions have brought on increasing layoffs and
limited hiring, conditions that may persist through the first half of 2009. Certain geographies
(e.g., China, India, Middle East), industries (e.g., healthcare), companies, and job categories may
continue to grow as the overall global economy slows to a crawl.
y Employee performance and development will drive business performance.
Employee performance objectives will become more aligned with business goals. Firms will
attempt to get a grasp on and drive employee skills and competencies through performance
management and development to support strategic decisions. For example, this information is
needed to fast-track high performers and weed out low performers. Performance information willalso drive variable compensation programs, providing some cushion for bottom-line results when
targets are missed.
y The work force is becoming younger and more global.
Despite the presidential campaign rhetoric to the contrary, off shoring and labor arbitrage will
continue as companies invest in globalization. Inexperienced new workers will continue to
replace retiring baby boomers, encouraging more investment in extended on boarding and talent
development programs.
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R ECENT TR END IN HR
10 Hr Trends That Are Changing the Face of Business
1. THE CHANGING ROLE OF THE HR PROFESSIONAL
We need to put the ³human´ back into human resources. Employees are humans, not
commodities, and HR departments have to start seeing them differently. With the current
push towards strategies that engage employees, attract top talent, and contribute to the
bottom line, this change is imperative.
We need to stop whining about being at the table. These days, almost every book or article
you read about the role of HR talks about HR needing to be µat the table¶ or to be more
strategic.
It¶s my observation that in almost every respected company, HR is at the table. So for most
HR leaders, the question is not µhow do you get to the table¶. It is µnow that you are at the
table, how do you best contribute to the success of our organization? µHow can you be taken
seriously at the table?¶
Clearly the first step is to make sure that the organization¶s HR practices are effective. The
practices should create competitive advantage by building strong organizations, strong
leaders and managers, and strong teams and employees. But few HR departments do this in a
measurable way. CEOs are demanding that HR stop giving lip service to strategic
performance and find the metrics that prove they are contributing to the growth and
performance of the company through effective people management.
Increasingly, more is being expected of HR practitioners than just being good at HR. They
need to broaden their skill-sets so that they can sit at the executive table and understand as
much about the business as the other leaders.
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A Finance person who only understands Finance and a financial perspective, a Sales person
who only understands Sales and the Sales perspective ± these individuals will have limited
career prospects and very little chance of succeeding in a leadership role. The same holds
true for HR people. That this is the case is good news for HR. It means that HR and HR
people are too important to be set aside in the corner. It means that HR skills and knowledge
need to be brought to bear on the strategic management of the organization.
Organizations consist of people. People are real. You can see them, touch them, and hear
them. And people have capabilities. And those people with their capabilities will determine
whether the organization thrives or dies. As Jim Burns, Ceridian¶s president, likes to say
³people are the only company asset that increases in value.´
If HR is to be perceived as an enabler of business strategies, they need to be seen to be
making measurable contributions to the bottom line through expense reduction, or revenue
generation, talent management and risk mitigation. HR people need to be a lot more creative
in the way they do things. The ³one size fits all´ approach doesn¶t work anymore. HR
departments of today need to be the talent departments of tomorrow.
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2 - THE WAR FOR TALENT
The most important corporate resource over the next 20 years will be talent: smart,
sophisticated business-people who are technologically literate, globally astute, and
operationally agile. Talent really does matter ± for example ³top software developers are
more productive than an average software developer not by 10x, 100x, or even 1000x «
but 10,000x´ (Nathan Myhrvold, former Chief Scientist, Microsoft)
According to The Conference Board of India, ³the war for talent is fierce, and is likely to
become more so with the massive number of employees retiring in the next five years. Top
organizations are moving beyond the vanilla ³employer of choice´ concept to a more
rigorous strategy of attracting and retaining the right employees through branding.´
Here are the facts:
The Conference Board of India predicts a shortage of 1 million skilled workers by 2020.
By 2006, for every two workers leaving the workforce, only one will enter.
2.6 new jobs are expected to be created for every person entering the workforce.
Younger workers are now bosses of the older workers.
The key to attracting and retaining scarce skills is to be, and be seen to be, a first-tier
employer that can meet the needs of high potential/high performance employees.
Traditional workforce planning is being replaced by talent strategies and skills gap analysis.
Once they determine the gap, it becomes clear what talent they need to hire, to layoff, or to
develop or transfer internally.
Now is not the time to sit in the ivory towers thinking you know who your major contributors
are? You need to dig deep into the organization to identify the top talent, the high performers
in every aspect of your business.
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In all likelihood it¶s not the people who are the most politically astute or the most popular.
Traditional marketing practices are going to have to be applied to recruitment. Employer
branding and unique selling points with a strong differentiator are imperative. Look at
strategies such as changing your employer brand from the groan-inducing ³we¶re a big
successful company´ to a company delivering on the promise of continuous learning, work-
life balance, personally-fulfilling roles and innovative reward and recognition programs.
Some recruitment effectiveness strategies include:
y Employment branding
y Ongoing recruiting, not stop-start
y Nurturing relationships with strong candidates, even though no jobs for them are
currently available
y Referrals ± this is particularly effective with Generation ³Y¶s´. They do everything
through leveraging their networks. They are always connected ± using mobile phones,
text messaging, instant messaging, blogging or email.
y Realistic job previews
y Managers trained in interviewing (so that they will create a favorable impression of
company)
y Selection criteria ± Can they do the job? (Competencies) Will they do the job?
(Motivation) Can we offer them what they are looking for?
y (Cultural Fit)
y Rapid response and follow up ± Hard to hire skills are in high demand
y Debrief candidates as quality control monitoring for recruitment process
y Most candidates will not get jobs ± but they might be current or future customers, hence
the importance of handling the rejection process effectively.
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3. OUTSOURCING OF HR FUNCTIONS: THE VIRTUAL HR ORGANIZATION
If you are an HR professional I doubt that you got hired for your ability to process employee
information changes, sort resumes or process the payroll every other week.
CEOs¶ expectations of their senior HR people have changed significantly. The HR executive is
expected to deliver value in areas like organizational effectiveness, talent management, change
management, leadership development, succession planning, merger integration, strategic
compensation. If you read job postings for senior HR positions, these items are listed time and
time again as the key expectations for HR leaders.
The primary benefit of HR outsourcing is that it will allow you to keep your job because it will
enable you to tackle these more strategic issues! HR professionals need to embrace outsourcing.
They can¶t be afraid of it. Outsourcing of HR transactions is a proven way to reduce costs and
get access to a higher level of service.
There are five good reasons why companies outsource their HR services:
1. Cost reduction ± economies of scale, automation and process improvement, especially
for transactional work
2. Focus ± allows HR to allocate time to strategic, not transactional, concerns
3. Regulatory compliance ± minimizes or transfer legal risk to the outsourcer and obtain
specialized regulatory expertise.
4. Access to best technologies ± mutual benefits to ensure technology is continually
upgraded
5. No available internal resources ± provides an HR capability for a company that does
not have one, cannot staff it, or cannot afford a full-time resource, but has reached a
size and complexity where expertise is required
However, all that being said, the administrative, transactional aspects of HR are key. What you
need to do is identify them now ± whether it¶s your payroll, your Employee Assistance
Programs, your recruitment or your HRIS systems. Then you need to go out into the marketplace
and find outsourcing partners who can help take them off your hands. It¶s the only way you are
going to become more strategic.
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4. THE HEALTHY WORKPLACE: WELLNESS, WORK-LIFE BALANCE
There is no competitive advantage in exhausted, sick and stressed-out workers. There is growing recognition that there is a definite link between the work environment and the
health and well-being of its employees. Further, employers are now recognizing the connection
between employee health and the bottom line.
Consider«
y Specific types of work stress/strain are related to 2x the incidence of mental illness and
substance abuse, 5x the rate of certain cancers, 2x the rate of infection/injuries and 3x the
incidence of heart and back problems ± (Shain, 2000)
y Over half of Indians working for large employers feel stressed, one in three feels burned
out or depressed, many are thinking of quitting their jobs, and absenteeism is costing
employers billions each year.
Let me talk about a few of the findings of a major government-sponsored study of work-life
conflict in India as well as published information from other credible research sources that point
to the importance of a healthy workplace:
y Indian companies are experiencing the impact of compromised mental health in an
unprecedented manner: 1 in 5 Indians will experience a mental illness in their lifetime.
Harvard School of Public Health predicts that by 2020 depression will rank second to
heart disease as the leading cause of disability worldwide, and the cost of mental illness
in lost productivity in India alone is estimated to be over 30 billion dollars annually.
(Global Business and Economic Roundtable).
y Indians report working at a high speed "all the time," in greater numbers than workers in
17 other countries, according to a new report released by the Indian Policy Research
Networks. Working continually at a high rate is twice as likely to result in health
problems, including stress. In turn, this leads to more absenteeism and disability claims ±
both very costly to organizations.
y So, where does this leave Indian workers?
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y Long working hours and heavy job demands were the main sources of work stress
identified in a Statistics India survey. Poor interpersonal relationships and the risk of
accident or injury were also cited as sources of stress on the job.
y The term µpresenteeism¶ has become part of the corporate lexicon, describing employees
who are able to come into work but are inhibited from optimal levels of productivity by
ongoing health issues and lack of desire to engage. This has emerged as a new and
growing concern.
y Rising mental health claims, primarily related to stress, depression and anxiety disorders,
were the top health and productivity-related concern for organizations in 2005.
When we look in the mirror, we see ourselves as entire human beings ± not just people with jobs
and careers, but people with families, friends, beliefs, interests, passions, responsibilities, worries
and futures. We need to look at our people through the same mirror ± not just as employees or
colleagues but as total human beings. If companies ignore the full humanity of their people, or if
people find it necessary to suppress their humanness in the workplace, the tensions created eat
away at the vitality of the organization.
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5. THE DIVER SE WORKFORCE
What does diversity mean? India has a reputation for embracing people of varied ethnicity,
religion, culture, language and beliefs. But our multicultural mix does not make us immune to
the challenges of managing a diverse workforce.
Diversity goes far beyond the traditional employment equity criteria of gender, visible minority
or aboriginal status, or disability. Diversity is not employment equity. Diversity is a business
strategy.
The reality is that today¶s workforce and the workforce of the future will be made up of a
diverse, complex collection of employees, all with different needs and experiences. And this isgood, because an organization with a broad variety of people with a diverse range of perspectives
is better able to do business with a variety of people, to solve a variety of problems and to make
a variety of decisions.
As companies become more global and are using more offshore services, it creates the need for
diversity strategies that go beyond our own national borders. It will take a whole new level of
education, tolerance and a willingness to embrace change. HR will need to provide cross-cultural
support and training for virtual global teams.
But diversity is not just about race, colour and creed. Diversity is about managing the
demographic and psychographic characteristics of an evolving workforce.
According to Reed-Lewis in The Learning Café 2005, there are four generations in the
workforce.
y Silent or traditionalists 60 ± 78 years old, 10% of workforce - characterized by tradition,
loyalty, discipline, commitment, significant knowledge legacy
y Boomers 41 ± 59 years old, 46% of workforce - characterized by hard work (badge of
honor), relationship oriented, change agents, competitive
y Generation X 28 ± 40 years old, 29% of workforce ± independent (latch-key kids),
entrepreneurial, flexible, demand work-life balance
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y Generation Y or Millennia¶s 27 and younger, 19% of workforce- This generation was
born with computers. They are comfortable in a multicultural environment and full of
confidence
Let¶s look at two groups:
The Generation Y or Millennia¶s, now entering the workforce. They¶ve grown up in a world
where the use of computers and the Internet is a basic bodily Function
They¶ve grown up in an inclusive world, with friends and peers from a myriad of places and
cultures. They¶re the human embodiment of globalization.
They¶ve grown up in a world where, through the Internet or other media, they have been exposed
to a vast amount of information, far beyond the reach of previous generations.
They¶ve grown up in a world in which a traditional institution are weaker and often objects of
skepticism, and where there is no prevailing set of values, but rather conflicting views and values
on the most fundamental issues.
Organizations that will attract and retain high potential younger employees will have thefollowing characteristics:
y They will be relatively non-hierarchical and inclusive
y They will provide for a balance between work and life outside work
y Their behavior will be consistent with the values of their people
y They will provide an environment with both autonomy and support
y They will provide opportunities for learning and significant contributions at an early
stage in people¶s careers
Another group, the Traditionalists, also deserves more attention. By 2011, almost one-fifth of
baby boomers ± those born between 1946 and 1964 ± will be at least 61 years of age and pushing
ever closer to retirement.
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Much of the discussion about mandatory retirement centers around how to deal with older
employees whose performance is slipping and who used to be carried until age 65
The challenge for managers and HR is to create an environment in which older, longer-service
employees can continue to be fully engaged in the work of the organization
y Continue to give them challenging work
y Continue to give them learning opportunities
y Give them a chance to build a legacy ± mentoring, developing others, knowledge transfer
y Provide more flexible work environments ± part-time work, phased retirements, retiree
on call programs, contract and project-based employment
Because this group is often overlooked in the labor market, there are excellent opportunities to
get µthe best of the best¶ from them
As a business strategy, the value of diversity is to bring to a company the broadest possible
spectrum of knowledge, experience and perspective. A diverse workforce consists not just of
people with a broad range of demographic traits, but, more importantly, a broad range of
educational backgrounds, professional and other interests, work experiences, life experiences and
cultural perspectives. Ultimately the success of a diversity strategy is measured in how well we
capitalize on the skills, intelligence, culture and experience of every employee.
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6. THE IMPACT OF TECHNOLOGY
Eventually technology is going to eliminate most HR jobs as they exist today. This is another
reason for HR professionals to become more strategic. Technology, with all its self-service and
anytime-anywhere communications capabilities, coupled with outsourcing, guarantees there will
be fewer HR people in corporations.
Technology continues to impact us profoundly, both in our personal lives and in the workplace,
and it will continue to evolve. While most of its impact has been overwhelmingly progressive
and positive, there are some downsides to its effect on our personal and work lives. Cell phones,
email, messaging and Blackberry-type devices have blurred the lines between work life and
home life.
Now we seem to be always on call, always reachable ± in our cars, in the air, at home ± virtually
everywhere.
To today¶s young professionals¶ computers, PDAs, cell phones, etc. have become appendages,
keeping them constantly connected.
Weblogs or blogs are favoured by this group so companies cannot afford to ignore their use or
existence. A web-tracking site called Technorati reports tracking over 7.8 million weblogs and
937 million links in March 2005. That¶s double the number of weblogs tracked in October last
year. In fact, the blogosphere is doubling in size about once every five months. Employers need
to develop a strategy around blogging. Negative blogs will be able to destroy a company¶s
reputation.
We¶ve entered the century of the employee and technology has to respond. CRM or customer
relationship management is giving way to ERM ± employee relationship management. Employee
self-service has become as important as customer self-service. Customized and personalized
content will be king.
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Employees can self-manage activities previously handled by human resource professionals. This
is a cost-saving and time-saving benefit to organizations and it frees the HR practitioners to
focus on more strategic issues. But more importantly, it is a fundamental expectation of Gen Y¶s
and Gen X¶s.
Technology that protects the privacy and security of HR data is more important than ever«but
more on that later.
It¶s important that we continue to embrace technology and keep our eyes on new advances that
may bring even better communication and collaboration tools. Technology helps people connect
within the work environment regardless of time and place. It fuels the potential for increased
productivity and creativity. Today¶s virtual workers and flexible work arrangements are made
possible through communication technology. Organizations can be physically local, yet virtually
global, thanks to technology.
Organizations are looking for cross-border and multinational HR solutions that provide a single
HR database that gives them access to real-time information on their workforce ± information
that will aid in their strategic decision-making.
They are looking for solutions that provide global compliance capabilities that can be used at the
local level.
They are looking for an HR solutions framework that will enable the management of employees
from hire-to-retire.
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7. TALENT MANAGEMENT: LEADER SHIP DEVELOPMENT
Leadership skills are not built through courses. Management is a function of what you do;
leadership is a function of what you are. When planning leadership development initiatives, the
tendency is to first look for courses.
One of the scarcest capabilities, now and for the foreseeable future, is leadership. As
organizations, their customers, their employees and their environment become more global, more
complex, more competitive and more subject to rapid and radical change, the competency
requirements for successful leadership are increasing exponentially.
Most organizations would acknowledge that they currently have a shortage of leadership talent
or bench strength; how will they fare when the bar keeps on being raised?
Leadership is less definable and therefore leadership capabilities are more difficult to build or
transmit. Indeed, one could debate whether leadership skills can be taught at all, or whether they
are innate.
So how do we develop leaders?
Take a few seconds and reflect on what were the three most important contributors to your own
development ± as a professional and as a leader.
If you are like most people, none of those three contributors was a course. One of our HR
consultants has conducted this exercise with numerous groups of managers and executives across
India, the U.S. and Asia. About one in ten people mention a course ± usually a very extensive
and expensive 1-3 month executive development program. But over 90% of the items mentioned
pertain to learning that occurred in the course of their work. Among the most common are being
given responsibility for a major project ± sometimes being thrown off the deep end, gaining
experience in groups outside one¶s functional expertise, working on multi-disciplinary teams,
working with customers, suppliers or strategic partners, working for a really good boss or a
really bad one.
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An emerging trend in North American executive development is µAction Learning¶ ± which has
been well established in Europe for many years. It involves assigning groups of executives, with
diverse backgrounds, to work on issues of strategic interest to their organization ± with a
facilitator to keep them on track and provide feedback. The advantage of Action Learning is that
it engages leaders and potential leaders in real work and a real work environment rather than a
simulation.
Part of fostering leadership is encouraging and rewarding risk-taking. It is also giving these
leaders, wherever they are in the organization, the opportunity to contribute to the development
of the corporate strategies and plans. Leadership comes with empowerment ± employees can¶t be
leaders unless they have the power to take risks, make decisions, innovate and lead.
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8. TALENT MANAGEMENT: SUCCESSION PLANNING
We now live in a world where the jobs, the job requirements and the organizations are constantly
changing ± acquisitions, divestitures, downsizing, mergers, technology changes and on and on.
Many of us are in jobs that did not exist three years ago. Three years from now, many of us will
be in jobs that do not exist today.
The challenge for HR professionals is to figure out how to look deep into the organization to find
talented, visionary people with a passion for the future.
They need to anticipate the skills they will need in the future. There are more and more younger
people going into leadership or management positions. What kind of mentoring and coaching do
they need?
Traditional succession planning identified who could fill what box in the organization chart in
how many years time, and what skills they would need to get there.
Even if we have remained, or will remain, in the same box in the org chart, the chances are very
high that the skill requirements of our position will change significantly.
Many of us are in jobs that did not exist three years ago. Three years from now, many of us will
be in jobs that do not exist today. In this context of unceasing change, succession planning needs
to be re-engineered, to focus not on particular positions, which may or may not exist in the future
but rather on the competencies that the organization will need in the future, regardless of how the
individual positions or the organization chart changes. Succession planning evolves into
something broader ± talent management.
Instead of identifying which individuals can move into which position when, talent management
identifies a pool of high potential employees who will provide the basis for the organization¶s
success regardless of the changing organizational structure. Investments must be made in these
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high potential employees to help them develop the competencies that will take them and the
organization to success.
Lots of companies have succession plans but very few have done the career planning and skills
gap analysis needed to acquire the best talent. I would hazard a guess that most of the companies
in this room don¶t have such a plan.
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9. CORPOR ATE VALUES AND CULTUR E
We are entering the third wave of public mistrust about corporations, according to Market and
social trend analyst Daniel Yankelovich. The first, set off by the Great Depression, continued
until World War II; the second, caused in part by economic stagflation and the Vietnam War,
lasted from the early 1960s until the early 1980s. In each of these periods companies tended to be
reactive, blaming a few bad apples, dismissing values as ³not central to what we do,´ or ignoring
opportunities to improve because ³we don¶t have to make major changes.´
The current wave of disapproval began in 2001 with the bursting of the dotcom bubble, the
ensuing bear market and the financial scandals involving Enron, WorldCom, Tyco and others.
But this time, corporate response is different. Companies are going well beyond the PR exercise
of displaying values statements. They¶re engaging in values-driven management improvement
efforts, training staff in values and appraising executives and staff on their adherence to values.
What is clearly evident these days is that more and more firms are unwilling to tolerate unethical
behaviour from their executives. They are taking drastic action as in the case of the Boeing CEO
who was ousted because of unethical activities.
Ethical behavior should be a core component of company culture. Ethics related language in
formal statements not only sets corporate expectations for employee behaviour, it also serves as a
shield for companies in an increasingly complex and regulatory environment.
But what is culture? What drives it? How do values affect corporate performance?
Culture is not a concierge serving up free fresh fruit in the cafeteria, nor is it a values chart
hanging on the wall purporting commitment to integrity, respect, honesty and customer
satisfaction. Enron had a brilliantly-crafted set of corporate values. Obviously it was just there
for decoration. .
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Organizational culture is the shared assumptions, beliefs and norms of behavior of a group. It has
a powerful influence on the way in which people behave.
An effective corporate culture is not about being a nice place to work. It is about engaging
employees at a fundamental level and translating that engagement to performance that meets the
organization¶s objectives. Increasingly, companies around the world have adopted formal
statements of corporate values, and senior executives now routinely identify ethical behavior,
honesty, integrity, and social concerns as top issues on their companies¶ agendas.
Business leaders are now recognizing that an effective corporate culture is essential to long-term
success. They are taking steps to align corporate culture to business strategy. Many organizations
are now making their values explicit and that¶s a significant change from corporate practices 10
years ago.
Leaders and top management must be responsible for building strong, high performance cultures.
They are the ones who construct the social reality, and shape the values of the organization.
Edgar Schein said in 1992, ³Organizational cultures are created by leaders, and one of the most
decisive functions of leadership may well be the creation, the management, and if and when that
may become necessary, the destruction of culture.´ This has never been truer.
Consider the impact on corporate culture as more and more companies become global. How do
you integrate culture when you¶ve been acquired or you¶ve merged with another company? And
what about the expectations of a younger workforce ± the people who ask ³what¶s in it for me?
Organizations need to demonstrate that they have the flexibility to adapt to these changes while
still maintaining a strong culture.
A recent study on the factors that drive performance found that corporate environments where
culture is flexible, adaptable to change and ongoing improvements will increase performance by
22.9%
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So what does an effective corporate culture offer?
y Branding: the alignment of the vision of the employee with the vision of the company. In
effect, it makes a promise about the values of the organization and delivers on it.
y Engagement: The congruency between employees¶ needs and those of the employer.
Culture is a key element in achieving this match.
Culture will translate into employer branding. Employers have to deliver on their promises ±
they have to live up to the brand. They have to walk the talk. Remember that because of
technology, i.e., all those blogs, your employer brand can be damaged or praised easily.
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10. IMPACT OF LEGAL AND COMPLIANCE ISSUES
Today¶s legislative and regulatory requirements surrounding data privacy, security, etc., are a
bureaucratic would have been proud of.
Highly publicized instances of poor corporate governance, combined with growing consumer
concerns about security and privacy, have led us to an era of interventionist and regulatory
government involvement in many facets of our business. Regulations or laws that we have to
worry about include:
y Affecting financial systems: Money laundering and support of terrorism (FINTRAC),
Sarbanes-Oxley and its upcoming Indian equivalent and others on a sector by sector basis
y National security: Anti-Terrorism Act, Public Safety Act, PATRIOT Act (for those of
you that deal with or have a corporate relationship with US based entities)
y Privacy: PIPEDA (Central private sector), Privacy Act (Central public sector), public
sector in all provinces, private sector in three, and health information privacy in four
provinces
Privacy laws are in the process of fundamentally changing the way in which the HR department
interacts with employees. This may include but is not limited to:
y the creation of employee privacy policies
y changing and more stringent rules on HR data
y 'least privilege' access rules to HR data - restrictions on access to HR data
y restrictions on employee references
y restrictions on background checks
y changing and more stringent records management practices
y implementation of data retention and data destruction policies
y employee access to their own data
If you have tried to get specific answers to these or similar questions such as µhow much security
is enough¶ or µwhat is the best practice for protecting HR data?¶ from your auditors, then you
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probably have the same scar tissue on your forehead as I do. On a case by case basis, the intent
of each of the regulations is grounded in a desire to make sure that we do the right thing.
So what does all this mean to the HR professional ? It means a lot of responsibility around risk
management. It means we need to be looking for different skill-sets in HR to understand the new
realities of privacy and security of employee data.
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STR ATEGIC HR FOR TOMORROW
Importance of HR Tomorrow:
Growing Importance of HR can be gauged by the fact that list of such organizations are growing
where Top Management is sparing it's time, energy, resources & efforts in addressing HR related
issues, like Ethical Work Practices, Corporate Social Responsibilities, Conducive Work Culture
etc.
Globalization & Liberalization Challenges:
With globalization & liberalization, the govt. protection to the industry will reduce slowly & will
become non-existent. Industry & the companies will have to become more competitive, produce
world-class products & services; and for that, they have no option but to develop & improve thequality of their human resources. They have to impart new competencies & skill to their human
resources, matching with world class standards.
Better Human Resources will bring the competitive edge to the companies:
HR dept. will have to look into the issues of different labor laws & Acts prevailing in different
countries, where the organization will have the operations. They have to handle different
taxation, different currencies for compensating their employees, working in different nations. We
can expect more layoffs. Furthermore, all employees will feel less secure in their jobs.
Commitment & loyalty to the organizations are likely to suffer. Employees will become more
self-oriented & will act like individual entrepreneurs. Many individuals in their middle to late
fifties will find themselves back in the job market. So, unemployment rates for this group are
likely to rise.
Societal Changes:
In India, societal changes have been very evident in last few years. Joint families are giving ways
to nuclear families. Few societal changes are mentioned below.
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Work ing Couples:
Numbers of working couples are increasing, no one is there to look after the children at home.
So, increased numbers of companies are coming forward to arrange for quality & safe crèches to
take care of the children of the employees.
Number of educated women increasing:
With this trend, the ratio of working women in the total workforce is increasing. With this, HR
dept. Have to put in more focus on women related issues at work.
Also, before taking a decision of transfer of the employee, the company will have to look into the
issue of the working spouse (may be offering or helping with suitable job offer to the spouse of
the employee at new place).
Establishing 'Employer of Choice Status'
Tomorrow, many companies will try to sharpen the way they market themselves to recruits, by
applying Branding techniques for recruitment. There is a need of establishing 'Employer of
Choice Status' in the eyes of the prospective employees. This is possible only if HR dept. takes
efforts in implementing good HR practices. A good Brand Image of the organization has manyadvantages like: attracting prospective employees, retention, satisfaction & morale of employees,
favorable impact on other stakeholders like investors, govt., NGOs, environmental groups, etc.
Becoming and remaining an employer of choice will be the top-ranking HR challenge.
The most important objective on the people side of the business is establishing a place where
individuals want to work and remain working.
So by putting efforts on one area (establishing 'Employer of Choice Status'), the company can
reap dividends on many fronts.
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Use of Technology to meet HR challenges:
Meeting HR challenges would be impossible without technology. Most people would want to
work for companies that have good technology. For example, college graduates accustomed to
using the internet for their work, research, thesis, and case studies expect the latest technology on
the job. Given the widespread availability of technology, a company lacking in this component
will not qualify as an employer of choice for the emerging workforce.
Critical to the employer of choice, portals provide organized, efficient access to the customized
content, knowledge, reporting structures, analytics capabilities, and transactions each employee
needs. An enterprise portal is the gateway to all company functions and offers personalized, role-
based access with respect to, who employees are, where they are located, what they do, etc.
Workforce analytics will help measure HR effectiveness, support processes for addressing gaps
in skills and labor, derive metrics for trend and benchmark analyses, assist with talent
development, provide compensation and retention planning tools for proactive analysis, and
much more.
Great companies will use analytic tools to manage human capital, calculate its value, and align
the workforce for maximum productivity. These tools will be instrumental in anticipating the
impact of inevitable external and internal business trends that precipitate change and in realizingsavings by strategically allocating human capital.
Changing Mindsets for Corporate Transformation
Tomorrow, the HR dept. will have another big job - the job of changing mindsets of employees
for corporate transformation. HR dept. will have to work on 3 types of mindsets, viz., Reflective
mindset (for managing self), Collaborative mindset (for relationships among groups, individuals)
and Action mindset (for managing change).
Fostering Conf lict in thought & opinion
Gone are the days when, word 'conflict' used to have negative connotation.
The need will be to identify the difference between negative & positive conflict.
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In coming times, employees will be welcomed to have positive conflict; will be encouraged to air
the difference of opinion.
There is no harm in differing in thought & airing the same in open. Different opinions will give
different ideas. This leads to better decision making. However, in this process, this is very
necessary to learn how to differ.
The spirit of conflict should be positive. The conflict at work place should not be intended to pull
the leg of the other person or to settle the score.
HR's Role in establishing Spirituality at work place
Need is to view the workplaces as 'Living Work Communities', rather than pure economic
machines. If this view is understood & accepted well, then it will not be difficult to adopt &
implement better management behaviour; better work practices.
Then only, one will be able to find real meaning of 'Work is Worship'.
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FUTUR E ROLE OF PER SONNEL MANAGER S
Some of the emerging trends in the role of personnel manager are as follows:-
I. Personnel managers of future will have to stress upon overall development of human
resources in all respects.
II. The scope of human resource management will be extended to cover career planning and
development, organization development, social justice etc.
III. Enlightened trade unions will become an active participant in the organization and
management of industry.
IV. The personnel manager will be required to act as a change agent through greater
involvement in µenvironment and scanning and development planning. They will have todevote more time to promote changes than to maintain the status quo.
V. The personnel function will become more cost-conscious and profit oriented. Instead of
merely administering personnel activities, the personnel department will have to search
out opportunities for profit improvement and growth.
VI. Greater authority and responsibilities will be delegated to personnel managers
particularly in the field of employee welfare services.
VII. Personnel managers will have to continuously retrain themselves to avoid obsolescence
of their knowledge and skills.
VIII. Thus, the job of personnel managers will become more difficult and challenging in
future. They will have to be experts in behavioral sciences. They will play a creative and
development role. They will thus have play a creative and development role. They will
have to acquire new skills, values, attitudes to discharge their new responsibilities
successfully.
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CONCLUSION
HR professionals need to step up to these challenges. If you don¶t, your clever executives will
make other functional areas responsible. As according to me:
Think like marketers. Establish an employer brand. Communicate the employer brand. Sell the
employer brand.
Don¶t just preach the benefits of continuous learning to your employees. Be continuous learners.
Be at the forefront of the latest trends and requirements and react to them quickly.
Acquire a broader range of business skills, in particular, think like a CFO. What are the metrics
that you can develop that prove to the business the impact you are making.
Get rid of the stigma around mental health issues. There is no workplace issue more important to
your organization, to society, and to Canada¶s productivity. Anxiety and depression in the
workplace must be dealt with or it¶s going to cost your organization in lost productivity and a lot
of money.
Do real talent management ± know who your Stars are, nurture them, develop them, and figure
out what support they need to thrive in your organization ± because if you don¶t another
company will.
Start working on an HR outsourcing strategy today. Otherwise, you won¶t have time to do the
rest.
So«if there is a rallying cry for HR professionals, what is it? We need to be at the table? We
need to be more strategic?
No the rallying cry is ± we need to change the world of work. To do so we need to change HR
departments into Talent departments, and HR professionals must become the C-levels of
tomorrow.
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³I never predict. I just look out the window and see what is visible ± but not yet seen´
(Peter Druck er) Trends in Human resource management have changed the way we
work, as organizations are more depended on HRM to increase the success ratio in
today¶s competitive global environment.