Managing of HRM in 21st century
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The document discusses managing human resources in the 21st century. It covers several key topics: 1. The changing role of human resources, which includes strong HR leadership, a future orientation, flexibility and creativity, and delivering value. 2. Major influencing factors on HR in the 21st century, such as workforce size, employee expectations, workforce composition, and environmental challenges. 3. Emerging HR practices like human capital management, the importance of knowledge management, intellectual capital, and organizational learning capabilities.
Managing of HRM in 21st century
- 1. Course name: Human Resource Management (HRM) Lecturer : Abdulwali Mohamed Salad Presentation : Managing of Human Resource Management in 21st Century
- 2. Introduction Human beings are the most important resource of an organization. These are the people who plan all the activities and then they carry on all the activities. And managing human beings is the toughest duty of the manager as no two persons are alike. Every individual has separate values, aspirations, motivations, assumptions, goals, etc. Today we are discuses about Managing of human resource management in 21st century.
- 5. The Changing Role of Human Resources in the 21st Century. Making the shift to a new HR role will raise unique issues for every HR group that attempts it, but there are some common steps and activities that will increase the likelihood of success. Some of these steps and activities are: 1.Strong HR leadership. As with any major change effort, a strong leader can develop a clear vision, motivate others to share that vision, and help them work toward achieving it. In order to change the role of HR in an organization, the HR leader will need to work both within the HR group and with the organizational leaders to reshape everyone's expectations of what HR can and will deliver. The success of the change will depend upon HR's ability to meet the real needs of the organization and the credibility it develops.
- 6. Cont.…. 2. Acute future orientation: One of the ways that HR can provide value is to understand how changing environmental, organizational, and workforce factors will likely influence the business, anticipate the associated HR needs, and be prepared to deliver appropriate solutions to meet those needs. By maintaining a focus on workplace trends, for instance, HR can prepare to evaluate the impact that particular changes are likely to have on an organization's people and processes, and be prepared to work with the business leaders to decide how to respond-being ahead of the curve, not behind it.
- 7. Cont.…. 3. Flexibility and creativity. An HR group that is successful in the future will likely be one that is responsive to the changing needs of its client organization. Responsiveness in the changing world of work will require being flexible-as the organizations change, so will their needs and priorities. 4. Delivering value. Although this is not a new challenge for HR, it remains a critical one. HR is still perceived by many within today's organizations as simply a non-revenue generating function. It is important to make apparent the value provided by working with the management team to hire the right people, manage them well, pay them appropriately, and build a working environment that encourages success.
- 8. Cont.…. Here is a sampling of strategies that I have seen implemented as HR groups work to respond to environmental and organizational changes, become more valuable, and deliver results. 1. Business unit assignment. Some companies are assigning HR employees to specific business units as a way of enabling them to develop a focused relationship with a small part of the business. 2. Centers of excellence. As organizations grow by merger and acquisition, they often find themselves with multiple HR groups. These can be duplicative or complementary. When they are duplicative, they can be subject to (painful) downsizing and consolidation, leaving behind a department that is unable to serve all areas of the business as well as they had been accustomed, which can, in turn, undermine the credibility of HR. 3. Consulting model. A number of HR departments with whom I've worked have adopted a consulting model of providing service. They view their internal customers as clients, learn consulting skills, and take their client satisfaction as a measure of their success. In one large high-technology firm, internal clients whose needs cannot be met by the internal HR group can go to external service providers directly-even for basic HR needs.
- 9. Cont.…. 4. Job rotation: One way to bring the perspective of the business into HR-and vice versa-is to rotate line managers into the HR function for periods of time. These individuals often serve as reality checks for the HR group, and then bring an increased understanding of the value of HR back to their line function when the rotation is over. 5. Increasing line managers' capabilities: Part of the future HR model is that responsibility for HR activities is shared between line management and HR people. This approach allows the manager to be more fully involved in the development and direction of employees, with HR as a resource; it requires, however, that those managers have the capabilities needed to work through issues with employees successfully. Many companies are therefore increasing line managers' access to information. Many of today's HR information systems and integrated HR systems put tools and data on each manager's desktop.
- 11. Human Resource Management: Major Influencing Factors in 21st century In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy: 1.Size of the workforce. 2. Rising employees' expectations. 3. Composition of workforce. New skills required. 4. Environmental challenges.
- 14. IMPLEMENTING HR POLICY The aim will be to implement policies fairly and consistently. Line managers have a key role in doing this. As pointed out by Purcell et al (2003), there is a need for HR policies to be designed for and focused on front line managers. The role of HR is to communicate and interpret the policies, convince line managers that they are necessary and provide training and support that will equip managers to implement them. 1. Develop an integrated compensation plan 2. The board has approved the plan and monitoring and evaluation mechanisms are in place. 3. The plan has been communicated to employees
- 15. An Emerging Human Resource Management Practice in 21st century 1. Human resource management (HRM) and Human capital management (HCM) • Human capital management requires capable employees whose competence is above board and are highly proficient in performance of their work. These people introduce creative, innovative ideas and make the organization different from its competitors. • Human capital management is related to employee’s commitment, retention, talent management, learning and development of personnel.
- 16. Cont.……. 2. Significance of Human Capital Management It is very important for any organization to attract, fascinate and retain highly capable employees. Mostly, the organizations concentrate on their physical and financial resources but relatively do give a considerable amount of time on its personnel’s.
- 18. Cont.……. 3. Knowledge Management and Human Capital Management Knowledge management is an institutionalized erudition, which enhances the organizational productivity and also brings about innovative and creative ideas through collective wisdom(Stankosky, 2007). Knowledge management is meaningfully significant because it supports the organizational objective in a way that it determines what special expertise the organization requires. Following this the logical sequence is: (a) find out the people having that special expertise. (b) Recruit them and create intellectual capital to have more unique suggestions.
- 19. Cont.……. • Below are some kinds of intellectual capital (Jackson, 2007): 1. Human capital: The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. 2. Social capital: The networks of relationships among people who live and work in a particular society, enabling that society to function effectively. 3. Process capital: is the value to an enterprise which is derived from the techniques, procedures, and programs that implement and enhance the delivery of goods and services. 4. Intellectual property: Intangible property that is the result of creativity, such as patents, copyrights, etc.
- 20. Cont.……. 4. Human capital and organizational learning capability • Human capital is a valuable and intelligible resource of an organization through which the organizational long-term survival can be foreseen and achieved. Prudent management of human resource in an effective manner shall enable the organization not only to sustain its long-term survival but also will increase its alert responsiveness to work in the dynamic environment (Barney & Wright, 1998). • Organizational learning capability; among others, have aspects of tangible bearing (JerezGomez et al, 2005) as below: 1. Managerial commitment. 2. System perspective. 3. Openness and experimentation. 4. Knowledge transfer and integration.
- 21. Major Trends in Human Resources in the 21st Century Organizations will lean on human resources professionals as strong leaders who help employers and employees navigate through the workplace challenges of the 21st century. • Technology Training Human Resources will take the lead role in helping organizations transition from local servers to using unlimited storage on the Internet with cloud services. To make the transition, human resources will hire experts in cloud computing to integrate cloud applications, mobile devices and social media. In addition to the integration, the experts will train staff on cloud operations as part of a company's daily operations. Human resources will also play a role in developing policies on employees' personal devices and data plans.
- 22. Cont.……. •Globalization Effects Globalization will increase in the 21st century as organizations grow in the competitive international market. A company's human resources department is responsible for recruiting and training local staff in foreign countries where a company has offices, as well as newly recruited foreign staff in local offices. In addition to operational training, human resources trains all staff on understanding cultural differences and work ethics.
- 23. Cont.……. •Internal Changes Human resources will also have the responsibility of updating their technology approaches. For example, they will change their recruiting approach to use social media to find the right candidates for job opportunities. They will update technology policies to include conduct and safeguards for IT property, and expand the use of shared applications between employers and staff. In addition, they will be able to link an employee's performance with a company's business goals to assess an employee's value in the company.
- 24. Cont.……. •Growth in Diversity The growth of ethnic groups will continue to add diversity to the workforce in the 21st century. The public recognizes an organization with diversity as harmonious, stable and progressive. Therefore, human resources professionals will be trained in understanding, supporting and achieving diversity initiatives to provide employees with skills to work in diverse teams. Human resources professionals will work with company leaders to ensure that the organization includes all cultures to maintain a competitive advantage.