Trends Affecting HRM

7/27/2019 Trends Affecting HRM

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Presented by:

Kush Sunderia

Dhaval Patel


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Trends in business environment

Changing nature of Work

Demographic, Societal & workforce Change in the nature of Employment

relationship


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Globalization of business

Mergers and Acquisitions

Downsizing


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E.g. Toyota motor corporation makes Cars in USA and

India, McDonalds Sells hamburgers in India andChina, Marks & Spencer sells Products in India.

The world has become a global village and business hasbecome global in character.

Thus, Domestic firms are competing with the foreigncompanies world wide.

This has resulted into High Competition, Outsourcing,Cost consciousness, technological advancement etc.

Indian companies have turn out to be more aggressiveto capture overseas markets.


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The trend was started by IBM by acquiringDaksh, a BPO firm (known as IBM Daksh) andHR services leader Adecco took overBangalore-based HR services company

PeopleOne. Most of the foreign and Indian companies has

tie ups to receive the benefit of the marketwhich are favorable.

The challenge of M&A is retrenchment of thestaff that becomes surplus. Also, managingthe employees insecurity towards their job.


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It is elimination of jobs in planned manner. Its goal is to balance its staff to be able to

meet changing needs.

The Issue further is to manage the moraleand commitment of the employees with thefirm after the merger.


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Industry and occupational shifts Technological advancements

Outsourcing

Flexible work arrangements


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Since world war 2, There has been a shift frommanufacturing jobs to service jobs.

During 1981-1991, The annual growth rate of industrywas 6.8% where as, service growth was 5.8%

During 1991-2001, the growth rate of service was 7.8%while industry growth rate was 5.8%

More jobs are created in service sector in compare to theindustry sector.

It is projected that the service sector in India will have anemployment growth of 20% per year, to a total of 16million by 2012.

Employment in BPO/Software is projected to rise to 3.2million by 2012. Use of high productivity technology and adoption of new

organizational techniques has contributed to increaseproductivity but has reduced jobs in manufacturing.


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Use of computers has permanently altered theway the organization is working.

Use of internet to conduct business has resultedin the growth of e-business and virtualorganization, including the virtual workers

behind it. Also, the increased in technology has increased

the burden on people to work for 24/7. The use of advanced technology has also resulted

in more jobs that require high skill. Thus,

trainings are required to skill them and the oldskills are getting obsolete with the creation of thenew skills.


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Outsourcing means hiring someone outside thefirm to perform the tasks which can be doneinternally.

E.g. Firms hire advertising firms for handling of

product promotions. Outsourcing helps the firm in focusing their

activities towards the core competencies,increased organizational flexibility, costreduction, expertise in service.

HR concerns and also challenge in outsourcing isthat the employee may lose the job due tooutsource of the Work.


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Various optional work arrangements has been developed now a

days like teleworking or distance working or home basedworking.

Part time job is also a way of increasing the flexibility to do anywork.

More temporary employees are also hired, so that at the time of

requirement one can hire more number of employees. Also, permanent employees are offered with the flexible work

hours, so as to provide a great control to the employees overtheir personal lives.

Such trend is more visible in firms with a large populations of

Knowledge workers like software industry. Teleworking has been increasing now a days and the individuals

are less who are performing such works, yet firms areincreasingly offering such works to overcome variousadministrative costs.


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Workforce diversity Ageing population & Ageing Workforce

Educated and knowledge Workforce

Women in workforce Changing family structure

Global workforce

Contingent Workforce & Workforce flexibility


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Workforce DiversityDifferences among people in age, gender,race, ethnicity, religion, sexualorientation, socioeconomic background,capabilities/disabilities and in thethought process.


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The Silent Generation Matures TheTraditionalists The Veterans Age 59+ -- born on or before 1954

Baby Boomers Age 41 58 born between 1955 to 1972

Generation X Age 24 40 born between 1971 - 1989

Generation Y Millennials -- Nexters Age 23 and Under born after 1990


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Lived through a common set of social andhistoric events Attitudes Ambitions

World views Approaches Ideas Values

Each generation approaches work differently

and has different needs when learning.


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Values and Characteristics Hard Work

Loyalty

Authority

Traditional Values of god and country

Dedication

Tend to be silent until asked

Attitude Cautious Save for a rainy day

Can do

Influences WWII and Korean War

Great Depression

JFK Assassination

Learning Style Listen intently to person in authority

Follow processes and procedures


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Values and Characteristics Youthfulness

Health

Personal Gratification

Material Wealth

Competitive in the workplace

Attitude Optimistic believe they changed the

world

We have always done it this way.

Influences Cold War and Vietnam War

Economic prosperity

Civil and gender rights

The space program

Television

Learning Style Tell me, show me, let me do it, help me

Will this be on the test?


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Values and Characteristics Motivated by money

Welcome diversity Want balance in their lives

Self reliant

Desire work/life balance

Value free time and fun

Attitude Misunderstood caught in the middle

Influences Computers and the internet

Watergate, MTV

Single-parent households, latchkey kids

Raised by work-driven parentsLearning Style Linear thinking

Relies on technology

Competitive


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Values and

Characteristics

Self-reliant

Family-oriented and community oriented

Savvy and demanding consumers

Fun seeking

Mobile, connected

Bored at times need change

Value their parentsAttitude Hopeful and optimistic about their future

Skeptical

Influences Global environment

AIDS

Technology is natural and expected

Learning Style Mosaic (randomly connect data point and

form a conclusion)

Need to be entertained and have FUN

Need constant learning and feedback


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Every generation feels misunderstood andunvalued by the others.

The rules may be different in the minds ofeach group.

The generational gap is an additionalcommunication hurdle.


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Ask for their input they may not shareinitially or without being asked.

Use face-to-face or written communicationwhen you can.

Follow up your word is your bond.

Dont allow them to feel you are wasting theirtime.


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Be aware of body language. Use open and direct in communication but

avoid controlling language.

Be prepared and expect to be pressed fordetails.

Present options and be flexible.


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Comfortable with informal communicationstyle and tools such as email.

Shorter sessions work better no longspeeches please.

Give frequent feedback and ask for theirinput.

Share information keep them in the loop.


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Use email to communicate information. Use action words and challenge them at every

opportunity.

Dont talk down to them.

Use humor and create a FUN learningenvironment.

Encourage them to take risks.


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Points to be interpreted from the table Comparison of the fertility rate

Population under age of 15 years Population above age of 65 years What would be the working population infuture???

Example of Employment at Wipro BPO

Year 2002 approx 2000 employeeYear 2003 approx 4000 employeeYear 2004 approx 9500 employee


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India 21%China 24%

Rest of world 55%

Points to be discussed

Demand by employer Educated pool is enough???? What about Trained workforce????Skilled people immigration to developed countries

Few Solutions: Collaboration with Educational institute Promote employees for further education Training, Re-training and development activities.


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According to survey in 2005,In USA , women professional and technicalworkers comprises 55% of total workforce.

For UK it is 45% and for Japan it is 46%

In 2009-2010, women were 26.1% of all ruralworkers, and 13.8% of all urban workers.


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According to Gender Diversity Benchmark,2011, India has the lowest national femalelabour force and the worst leaking pipelinefor junior to middle level position women. 28.71% of those at the junior level of the workplace 14.9% of those at the middle level

9.32% of those at the senior level


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Nucleus structure Late marriage

Single working women Dual Career couples


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Higher rates of absenteeism Higher rates of staff turnover

Reduced productivity

Decreased job satisfaction

Rising healthcare costs Lower levels of organisational

commitment and loyalty

= Poor customer service

It has major impact on work life balance of employeesLike, ( For poor Work-life balance)


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Work

life balance is a broad concept including proper

prioritizing between work (career and ambition) on one hand

and life (Health, pleasure, leisure, family and spiritual

development) on the other. Related, though broader, terms

include lifestyle balance and life balance

What is work-life balance ????
http://en.wikipedia.org/wiki/Careerhttp://en.wikipedia.org/wiki/Ambitionhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Pleasurehttp://en.wikipedia.org/wiki/Leisurehttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Spiritualityhttp://en.wikipedia.org/wiki/Spiritualityhttp://en.wikipedia.org/wiki/Spiritualityhttp://en.wikipedia.org/wiki/Spiritualityhttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Leisurehttp://en.wikipedia.org/wiki/Pleasurehttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Ambitionhttp://en.wikipedia.org/wiki/Career


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Parent-country national employee who was bornand works in the country in which anorganizations headquarters is located.

Host-country national employee who is a citizenof the country (other than parent country) in whichan organization operates a facility.

Third-country national employee who is a citizenof a country that is neither the parent country northe host country of the employer.


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Trends Affecting HRM

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