The document discusses future trends in human resource management. It describes how societies, technologies, governments, employers, employees, and economies are changing. Key trends include a more educated and rights-aware population, advanced technologies requiring new skills, greater globalization and privatization, and employers focusing more on efficiency, professional management, and employee well-being. HR managers will need to adapt practices to these changing environments through training, global benchmarking, and supporting organizational flexibility and innovation.
2. How is the environment changing? Society Technology Government Employers Employees Economy
3. How is the environment changing? Society From To Tolerant Assertive Modest expectation Rising expectation Collective Individualistic Long term oriented Short term oriented Less educated Better educated Aware of duties Aware of rights too
4. How is the environment changing? Technology From To Labour intensive Labourless Low cost High cost Multi technology Specialized technology Medium technology Complex technology Piece-meal technology Convergent technology
5. How is the environment changing? Government From To Policy of concentrated growth Balanced growth Subsidy oriented Innovative business incentives Entrepreneur Facilitator for entrepreneurs Employee friendly Employer friendly Centralized power Decentralized power
6. How is the environment changing? Employers From To Domestic Business Global business Profit oriented Efficiency oriented Traditional Management Professional Management Less technical More technical Less Mgt Qualification More Mgt Qualification Employer by inheritance First gen employers
7. How is the environment changing? Employees From To Workers Knowledge workers Blue collar White collar Specialized skills Multi skills Submissive Assertive
8. How is the environment changing? Economy From To Closed economy Open economy Sellers’ market Buyers’ market Domestic business International business Stable Unstable Higher price Lower price
9. HRM in 21 st century Demographic changes 1.Pressure from religious and racial minorities 2. Women reservation and empowerment 3. Reservation to economically backwards from upper castes 4.Reservation is likely to be extended to private sectors too Reasons Shrinking no. of PSU’s and Govt jobs Core sectors are going into private ownership Concept of pvt mgt and public money Increasing role of pvt companies in social development
10. HRM in 21 st century Demographic changes 5.Increasing educational qualifications of people at entry level 6.Awareness of the common public 7. Ratio of white collars and blue collars getting reduced Reasons Increasing technical skills and automation Increasing salary for workers Redundancy of blue collar workers
11. HRM in 21 st century Demographic changes 8.No. of women employees rising Last decade Female employee growth around 50% Male employee growth less than 20% Reasons Concept of dual career New jobs are becoming more suitable to women Equal opportunities and security for women in the workplace Rising expectations of self and children Inflation Threat of divorce/actual divorce Growth of service industry 9.Increasing feeling of sons of the soil
12. HRM in 21 st century Changing technology and automation Need for new skills to meet the new technology Strategy-Have feeder education/training institutions run by company-University-industry interaction-Constant training to employees +ve- Improves business efficiency -ve- Pressure on individuals to be up-to-date
13. HRM in 21 st century Changing technology and automation Skills going redundant (e.g. typists) Strategy-Retraining-VRS/Retrenchment-Outplacement Problems envisaged- After heavy investment on technology and automation money for retraining, VRS, etc may be scarce- Creates personal, Psychological, financial and social problems
14. HRM in 21 st century Changing technology and automation Better working conditions to workers, e.g. AC, computers, better lighting and resultantly better Q.W.L Skills are upgraded, so employees are becoming suitable for better jobs in the company and elsewhere Makes the job challenging Reduces the human interaction, so human elements will get lesser importance Breakdown of entire system/operations Many tragedies like Bhopal and Chernobyl are possible, which may bring the surrounding public under Workmen Compensation Act 1923
15. HRM in 21 st century Liberalization, Privatisation and Globalization Emergence of international HRM Results-International benchmarking and universalisation of HR practices International character of Trade Unions High salary, global selection and training, international standard of working conditions and slim work-force are the hallmarks of MNCs &JVs Influence of ILO and WTO in labour stds, e.g. their role in elimination of child labour Quality consciousness in international business a) Mgt seeks voluntary cooperation of employees b) Concentration on competition rather than confrontation with workers and trade unions
16. HRM in 21 st century Liberalization, Privatisation and Globalization Inequality in wage and salary the gap is too high, it may lead to inequality in growth of society More VRS/retrenchment Unemployment, insecurity/security to existing employees Growth of services industry Trends will attract women employees, HR dept will be professionalized -ves: Encourages casual/temp/PT/child labour, leads to higher employee turnover
17. HRM in 21 st century Liberalization, Privatisation and Globalization T&D will be the central focus in LPG Equilibrium in demand and supply of manpower is possible even at international level Multiple criteria will be followed in selection rather than just one criterion Leads to flat structure Results: More responsibilities to individual managers-No promotional opportunities within, so frequent job changes-Emphasis on self-mgmt-Quick decisions and responses
18. HRM in 21 st century Liberalization, Privatisation and Globalization Changing employers Employers will be leaders rather than managers. They will practise theory Y Participative approach rather than proprietary approach Care for employees’ personal life too Scrupulously fair in reward or punishment Share with the employees the company’s fortunes/profits Organization will be more adaptable to individuals than vice-versa The job of creativity and innovation will be left to the workers
19. HRM in 21 st century Liberalization, Privatisation and Globalization Changing Government Policy Still more importance for HRD and related areas, e.g. separate ministries for HRD, Labour, Personnel and grievances HRD will spread to Co-ops, NGOs, Agriculture & local bodies Now HRD concept is being infused in Govt depts/ offices, e.g. in Universities, Boards, Semi-govt organizations,etc. Govt. may allow ‘hire and fire’ policy but it can be regulated by independent bodies like Central Vigilance Commission, Courts, Tribunals, etc.
20. HRM in 21 st century Liberalization, Privatisation and Globalization Changing Government Policy Drastic changes in labour laws possible, especially in the case of child labour, women workers, minorities and environment Govt. will encourage setting up of industries in rural and backward areas Results: Non-availability of workers & executives to work in such areas Lack of urban facilities Mismatch between urban executives and rural workers More expenses to train rural workers
21. HRM in 21 st century Liberalization, Privatisation and Globalization Changing Government Policy Laws on merger/takeover may still be relaxed Results: Frequent change of ownership, so uncertainty, anxiety and insecurity to employees- Cultural shock to managers and workers- Loss of employment Role of local bodies- Influence in selection and IR- Earnest efforts for Industrial development in the area * * *
22. Implications for HR Managers Should provide unstinting support to the CEO & the employees Should act as a facilitator, change agent and counselor. Must be well trained, imaginative, innovative, up-to-date and an alert professional Must actively adopt the systems approach to have a broad view of things Future HR functions will be more complex than what exists today He must make use of advanced knowledge and skills of behavioural science * * * * * * * * * * * * * * * * * * * * *
23. Theory X In this theory, management assumes employees are inherently lazy and will avoid work if they can. They inherently dislike work. Because of this, workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame.
24. Theory Y In this theory management assumes employees may be ambitious, self-motivated, anxious to accept greater responsibility, and exercise self-control, self-direction, autonomy and empowerment. It is believed that employees enjoy their mental and physical work duties. It is also believed that if given the chance employees have the desire to be creative and forward thinking in the workplace. There is a chance for greater productivity by giving employees the freedom to perform at the best of their abilities without being bogged down by rules.
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26. Theory Z Theory Z is the name applied to the so-called "Japanese Management" style popularized during the Asian economic boom of the 1980s. In contrast to Theory X, which stated that workers inherently dislike and avoid work and must be driven to it, and to Theory Y, which stated that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Dr. William Ouchi, its leading proponent, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.
27. Theory Z cont.d Ironically, "Japanese Management" and Theory Z itself were based on Dr. W. Edwards Deming's famous "14 points". Deming, an American scholar whose management and motivation theories were rejected in the United States, went on to help lay the foundation of Japanese organizational development during their expansion in the world economy in the 1980s. Deming's theories are summarized in his two books, Out of the Crisis and The New Economics , in which he spells out his "System of Profound Knowledge". He was a frequent advisor to Japanese business and government leaders, and eventually became a revered counselor. Deming was awarded the Second Order of the Sacred Treasure by the former Emperor Hirohito, and American businesses ultimately tried unsuccessfully to use his "Japanese" approach to improve their competitive position