Contemporary Issues Faced by Human Resource Managers Today PDF

International Journal of Ethics in Engineering & Management Education Website: www.ijeee.in (ISSN: 2348-4748, Volume 4, Issue 1, January 2017) Contemporary Issues Faced by Human Resource Managers Today Ist Dr. K. Sudhakar, Mech., Dean & Professor...

International Journal of Ethics in Engineering & Management Education Website: www.ijeee.in (ISSN: 2348-4748, Volume 4, Issue 1, January 2017) Contemporary Issues Faced by Human Resource Managers Today Ist Dr. K. Sudhakar, Mech., Dean & Professor IInd B. Swetha, Asst. Professor Sree Visvesvaraya Institute of Technology & Science Sree Visvesvaraya Institute of Technology & Science Chowdarpally, Mahabubnagar - 509204 Chowdarpally, Mahabubnagar - 509204 Email: [email protected] Email: [email protected] Abstract --The aim of this revised and expanded text is to provide Productivity is the end result of two components that an up-to-date overview and analysis of the diverse and complex managers work to create and improve within the organization: range of issues currently confronting the field of human resource → Effectiveness—a function of getting the job done management. Adopting a critical approach, the authors review whenever and however it must be done; it answers the theories of HRM, and apply these principles to emerging themes question “Did we do the right things?” that exemplify the dynamic working environment confronting → Efficiency—a function of how many organizational organizations today. The exploration highlights the challenges for resources were used in getting the job done; it answers HR professionals who are increasingly expected to provide the question “Did we do things right?” leadership in the management of employees as a key source of organizational competitive advantage Both of these are important, but most of the time we are focused on efficiency. Human resources (our people) allow Key terms: 21-Century HRM, Contemporary issues, technological us to be more efficient as an organization if they are used in issues, Strategic HR view, sustainable competitive advantage, the correct manner. This course is about how to make our HRM skills. people more efficient. 1. PRESENT VIEW OF HRM: 2. 21St-CENTURY HRM The old workplace, in which managers simply told In this section, we discuss some of the issues facing employees what to do, is gone. You will most likely work in a today’s HR Managers, including challenges, the strategic team and share in decision making and other management view, technology and knowledge, changing labor tasks. Today, people want to be involved in management, and demographics, and productivity and competitiveness through organizations expect employees to work in teams and HRM. participate in managing the firm. 2.1 HRM Challenges: Before we go further, let’s look at some of the things 1.1 Productivity centers: that managers tell us make their jobs more difficult and that Welcome to the 21st century and the productivity they can’t directly control. Every time that we survey center. A productivity center is a revenue center that managers in any industry, in any department, about managing enhances profitability of the organization through enhancing others, they bring up the following issues as among the most the productivity of the people within the organization. So, why important and most difficult things that they deal with: does a modern organization worry so much about HRM? 1. Productivity —defined above Today’s Human Resource Manager is no longer running an 2. Job satisfaction —a feeling of well-being and organizational cost center. Their function, along with all other acceptance of one’s place in the organization managers within the organization, is to improve organizational 3. Turnover —permanent loss of workers from the revenues and profits to be a profit center. How does HR create organization (People who quit would be considered revenue and profits for the organization? They do it through voluntary turnover, while people who were fired enhancing the productivity of the people within the would be involuntary turnover.) organization. 4. Absenteeism —temporary absence of employees Productivity is the amount of output that an from the workplace organization gets per unit of input, with human input usually NOTE: We have already introduced you to productivity. expressed in terms of units of time. We must be more What about the other three items? Why do we care about job competitive in today’s business environment in order to satisfaction, turnover, and absenteeism? Let’s take a moment survive for the long term. As a manager of any type, we do to have a more detailed look at each of them. things that will improve the productivity of the people who work for us and our organization we create productivity → Job satisfaction as noted above, is the feeling of well- centers. But, how can we become more productive? being that we experience in our jobs basically whether or not we like what we do and the immediate environment 1  International Journal of Ethics in Engineering & Management Education Website: www.ijeee.in (ISSN: 2348-4748, Volume 4, Issue 1, January 2017) surrounding us and our jobs, or “the extent to which 3.2. Legislation Affecting Workplace: people like (satisfaction) or dislike (dissatisfaction) their jobs.” The Recovery Act of 2009 and the health care reform → Turnover is the permanent loss of workers from the bill, which passed in March 2010, promised immediate impact organization. Does turnover cost the organization? on the workplace. The requirements of the Recovery Act had Absolutely! What costs are associated with turnover an enormous affect on businesses that provide health care within the organization? insurance to workers who lost their jobs. The Act mandated an Well, first we have the cost of the paperwork associated employer-paid 65 percent subsidy for former employees with the departing employee and if they left involuntarily receiving COBRA, short for Consolidated Omnibus Budget we may have increases in our unemployment insurance Reconciliation Act, benefits. On the other hand, the Recovery payments. Next, we must find someone else to do the job Act created thousands of jobs and contracting opportunities we have job analysis costs, recruiting costs, and selection for small businesses. In addition, the guarantee for U.S. Small costs. Once we hire someone new, we have orientation Business Administration loans was increased to 90 percent. and other training costs, costs associated with getting the new worker “up to speed” on their job something we call The health care reform bill of 2010 lessens the threshold for a learning curve and costs associated with them just not procuring insurance coverage. By 2014, no one will be denied knowing our way of doing business (every company has health care insurance because of pre-existing conditions. This a unique culture, and not knowing how to act within that may increase premiums for insurance that, unfortunately, culture can cause problems). So, again, we have many might have to be passed onto employees or become another costs associated with the process of turnover in the fiduciary responsibility assumed by employers. Conversely, organization, and as a result, we want to minimize small businesses that provide consulting services to employers turnover. may see an increase in revenue due to the surge in employers → Absenteeism is the failure of an employee to report to needing professional services to help them to comply with the workplace as scheduled. What’s the big deal here? If legislative changes. employees don’t come to work, we don’t have to pay 3.3. Technological Advances and Workplace: them, right? Well, that’s true for some of them, but not when we give sick pay. In addition, if some of our The workplace setting is changing because of workers are frequently absent, it causes lower job technology. Telecommuting, telework and remote reporting satisfaction in others who have to “take up the slack” for relationships are becoming the norm rather than an anomaly. their absent coworkers. And there are other issues as Flexible work schedules and arrangements are ways to well. So, we can quickly see that even though we don’t improve productivity for some employees; however, these have to pay some of our workers if they don’t come to types of technology-based changes for all employees. Human work, absenteeism still costs the organization money. resources managers must ensure there is a mutual agreement between the employer and employee for options that include 3. CONTEMPORARY ISSUES FACED BY HUMAN telecommuting. Working from home--telecommuting or RESOURCE MANAGERS TODAY: telework--requires motivation and discipline. Some employees lack these traits and would not be productive workers if Human resources managers face a myriad challenges allowed to work from the comfort of home. with today’s workforce. There are issues concerning the diverse workforce, legislation affecting the workplace and 4. CHALLENGES FACED BY HUMAN RESOURCE technology matters that rise to the top of the list of challenges. MANAGERS BECAUSE OF TECHNICAL CHANGES Human resources managers who encounter these challenges use their leadership skills and expertise to avert issues that Fallowing are challenges which faced by human might arise from these challenges. resource managers because of technical changes. 3.1. Multi-Generational Challenges in Workplace: 4.1. Resistance to Change: Four generations are in the work force. Ranging from As with any change in the workplace, changes in septuagenarians to 20-something recent college graduates, technology may result in anxiety and even resistance among your company may experience the challenges posed by having employees. Technical changes can be seen specifically as so many different sets of values, expectations and work styles threats by employees who envision that their roles within the in the workplace. According to the USA survey by Lee Hecht company will be replaced by a machine or computer that can Harrison, more than 60 percent of employers are experiencing do the job cheaper or faster. Developing strategies to combat intergenerational conflict. However, those very differences this resistance to change is key to the human resources can also lead to increased creativity and productivity and manager's role. This starts by assuring employees of their ultimately to business success. worth and meaningful place within the business and by helping them to see the technology as an aid not a hindrance to their work. 2  International Journal of Ethics in Engineering & Management Education Website: www.ijeee.in (ISSN: 2348-4748, Volume 4, Issue 1, January 2017) 4.2 Dealing with Workforce Shortages: competitive advantages. This is the basis for strategic HRM. Strategy and strategic planning deal with the concept of Even when unemployment is at record high levels, a creating “sustainable competitive advantages.” Sustainable shortage of skilled workers exists in many industries. As a competitive advantage is a capability that creates value for result, human resource mangers often find it difficult to find customers that rivals can’t copy quickly or easily, and allows workers who are adept at using new technology. This means the organization to differentiate its products or services from two things for businesses: they must train their current competitor products or services. employees to keep up with technical changes and they must 5.2. The main goals of strategic HRM: motivate and encourage employees who they bring on board to So then, what are the main goals of strategic HRM? be the best they can be at using new technology. Human In the 21st-century organization, the primary HRM function is resources can also facilitate further education programs, no longer just ensuring that the company has (1) the correct training days, conferences and seminars to keep employees' number of employees with the levels and type of skills the skills fresh. organization requires and (2) control systems to make sure employees are working toward the achievement of the goals in 4.3. Training: the strategic plan. This is a control model for organizational management that doesn’t work in today’s organization. Providing training and support to employees who 5.3. Analyze strategic direction for HR fit: wish to keep up with technical changes not only benefits the One of the most interesting and exciting jobs within company but also helps the employees who take this route to the HRM field is as part of the strategic planning efforts for feel like they are a vital part of the business. The human the organization. Why is it so interesting and exciting? It is resources manager can face this challenge head on by because, if you play a role in creating the strategy for the identifying the core areas of the business where training is organization, you have a hand in creating the organization’s needed and by offering either on-site programs or by future. As we have already noted, HRM efforts are critical in facilitating training opportunities for employees off-site. order to be able to carry out organizational plans and reach goals that have been defined by the strategic plan. While this 4.4. Managing Information: is not usually an option for those who are early in their HR Human resource managers have a vital role to play in careers, it is certainly an option as they get experience in four managing information and securing the privacy of skill sets human relations skills, technical skills, conceptual information. As the technology within an organization and design skills, and especially business skills. advances, so too do the privacy and security concerns connected with those technical changes. Providing employee 6. HRM SKILLS training on how to secure data and prevent privacy breaches to keep business information secure are challenges human What skills will an HR Manager need in order to resources faces in this area. Communicating with technology succeed in their job? All managers require a mix of technical, vendors and keeping up-to-date with the technical aspects of human relations, conceptual and design, and business skills in the company are key ways for human resources managers to order to successfully carry out their jobs HR Managers are no recognize and confront this challenge. different all leaders need management skills to improve organizational performance. The set of necessary skills for HR 5. THE HRM STRATEGIC VIEW: Managers is similar to the one for other managers, but of course it emphasizes people skills more than some other Strategy and strategic planning deal with a process of management positions would. looking at our organization and environment—both today and 6.1. Technical Skills: in the expected future and determining what we as an The first set of skills necessary for successful HR organization want to do to meet the requirements of that Managers is technical skills, the easiest of the four sets to expected future. Only in the last 30 or so years has HR develop. Technical skills are defined as the ability to use Management really gone from reactive to proactive in nature. methods and techniquesto perform a task. Being successful as Instead of waiting for someone to quit and then going out and an HR Manager requires comprehensive knowledge of laws, finding a replacement, HR Managers are now actively seeking rules, and regulations relating to HR; computer skills, because talent for their organizations. Good HR Managers are everything in HR is now computerized, including some Equal constantly looking at processes within the organization and, if Employment Opportunity (EEO) reporting requirements; skills there is something going wrong, figuring out how to assist the in interviewing; training knowledge and skills; understanding line management team in fixing the problem, whether it is a of performance appraisal processes; and cultural knowledge training problem, a motivation problem, or any other people- (so we don’t make a culture-related mistake), among many oriented problem. others. 6.2. Human Relations Skills: 5.1. Sustainable competitive advantage: The second major skill set is human relations Why has HR been redesigned? To make our (people) skills. Human relations skills are the ability to organizations more competitive and create sustainable understand, communicate, and work well with individuals and 3  International Journal of Ethics in Engineering & Management Education Website: www.ijeee.in (ISSN: 2348-4748, Volume 4, Issue 1, January 2017) groups through developing effective relationships. The. Contemporary Human Resource Management Issues Challenges and Opportunities Editor(s): Ronald R. Sims, College of William and Mary. resources you need to get the job done are made available. Contemporary Issues and Challenges in Human Resource Management through relationships, both inside (employees, coworkers, Second Edition Peter Holland, Cathy Sheehan, Ross Donohue, Amanda supervisors) and outside (customers, suppliers, others) the Pyman and Belinda Allen firm. Organizations are seeking employees with good human. Dessler, G. Human Resources Management 2008, New Jersey, Pearson relations skills, and business schools are placing more emphasis on people skills. 6.3. Conceptual and Design Skills Conceptual and design skills are another skill set required in a successful HR Manager, and it is based on decision making. Clearly, the decisions you have made over your lifetime have affected you today. 6.3.1. Conceptual and design skills: Include the ability to evaluate a situation, identify alternatives, select a reasonable alternative, and make a decision to implement a solution to a problem. The conceptual part of this skill set is an ability to understand what is going on in our business processes—the ability to “see the bigger picture” concerning how our department or division and the overall organization operates. It also includes the ability to see if we are getting outside expected process parameters. 6.4. Business Skills: Lastly, HR Managers must have strong general business skills. Like technical skills, business skills are easier to develop than human relations and conceptual and design skills. Business skills are the analytical and quantitative skills, including in-depth knowledge of how the business works and its budgeting and strategic planning processes that are necessary for a manager to understand and contribute to the profitability of their organization. HR professionals must have knowledge of the organization and its strategies if they are to contribute strategically. This also means that they must have understanding of the financial, technological, and other facets of the industry and the organization. 7. CONCLUSION It's the people in an organization that carry out many important work activities. Managers and HR professionals have the important job of organizing people so that they can effectively perform these activities. This requires viewing people as human assets, not costs to the organization. Looking at people as assets is part of contemporary human resource management and human capital management. The human resources management team suggests to the management team how to strategically manage people as business resources. This includes managing recruiting and hiring employees, coordinating employee benefits and suggesting employee training and development strategies. In this way, HR professionals are consultants, not workers in an isolated business function; they advise managers on many issues related to employees and how they help the organization achieve its goals. REFERENCE. Strategic Human Resource Management – contemporary issues by Mike Millmore, Phil Lewis, Mark Saunders, Adrian Thornhill and Trevor Morrow 4