INTRODUCTION
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Traditionally, the personnel function
centered around control and direction of employees for achievement o
predetermined goals.
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The Human Resources Approach, in direct
contrast to this, recognizes the worth of human being in the realization of
corporate goals.
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It takes a supportive and
developmental route to achieve results through the cooperative efforts of
employees.
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When opportunities for growth and
enhancement of skills are available, people will be stimulated to give their
best, leading to greater job satisfaction and organizational effectiveness.
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The manager’s role, too, has
undergone a dramatic change over the years. From control and direction of
employees, he is expected to move toward clarifying goals and paths and
creating a supportive and growth oriented environment, where people are willing
to take up assigned roles willingly and enthusiastically
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The effective use of people is the
most critical factor in the successful accomplishment of corporate goals. To be
effective, therefore, Human Resource managers need to understand the needs,
aspirations, concerns of employees proactively, face the challenges head-on and
resolve issues amicably. They are expected to successfully evolve an
appropriate corporate culture, take a strategic approach to the acquisition,
motivation and development of human resources and introduce programs that
reflect and support the core values of the organization and its people.
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This is easier said than done in view
of constant changes in environment characterized by the following things:*
FUTURE OF HRM: INFLUENCING FACTORS
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1. Size of workforce: Corporate
has grown in size considerably in recent years, thanks to global competition in
almost all fields. The size of the work force, consequently, has increased,
throwing up additional challenges before HR managers in the form of additional
demands for better pay, benefits and working conditions from various sections
of the workforce constantly.
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2. Composition of workforce: The
workforce composition is also changing over the years. The rising percentage of
women and minorities in the work force is going to alter workplace equations
dramatically. Demands for equal pay for equal work, putting an end to gender
inequality and bias in certain occupations, the breaking down of grass ceiling
have already been met. Constitutional protection ensured to minorities has also
been met to a large extent by HR managers in public sector units.
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The new equations may compel HR
managers to pay more attention to protecting the rights of the other sex and
ensure statutory protection and concessions to minorities and disadvantaged
sections of society. The shifting character of workforce in terms of age, sex,
religion, region, caste etc. is going to put pressures on HR managers trying to
integrate the efforts of people from various places. Managing heterogeneous and
culturally diverse groups is going to stretch the talents of HR managers fully.
• 3.
Employee expectations: “Instead of attempting to
force employees to conform to a ‘corporate mould’ future
managers may well have to make more allowances for individual differences in
people”. (Mathis and Jackson p. 616).
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Nowadays workers are
better educated, more demanding and are ready to voice strong, violent and
joint protests in case their expectations are not met. The list of financial
and nonfinancial demands is ever-growing and expanding. In fast-changing
industries such as software, telecom, entertainment and pharmaceuticals the
turnover ratios are rising fast and if HR managers do not respond positively to
employee expectations, the acquisition and development costs of recruits is
going to mount up steadily.
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An efficient organization is,
therefore required to anticipate and manage turnover through human resource
planning, training schemes followed by appropriate compensation packages.
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4. Changes in technology: Increased
automation, modernization and computerization have changed the way the
traditional jobs are handled. In such a scenario unless employees update their
knowledge and skills constantly, they cannot survive and grow. This will
necessitate training, retraining and mid-career training of operatives and executives
at various levels.
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Where such initiatives are missing,
it becomes very difficult for employees to face the forces of technology with
confidence and get ahead in their careers steadily.
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5. Life-style changes: The
life-style patterns of employees have undergone a rapid change in recent times.
Unlike their predecessors people are now ready to change jobs, shift to new
locations, take up jobs in start-up companies instead of manufacturing units
and even experiment with untested ideas
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6. Environmental challenges: Privatization
efforts in Tunisia are likely to gather
momentum in the coming years, as most public sector units face survival
problems.
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Mounting costs, rising wage bills,
increased competition, inefficient operations, outdated technology, debt burden
etc. will compel many public sector units to either draw the shutters down or
seek private sector partners. The burden if training and retraining employees
with a view to make them more productive and useful under the new set-up is
going to fall on the shoulders of HR managers.
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With this the legal stipulations
covering recruitment and selection of employees, employment of reserved
category employees, minorities etc. are also likely to lose their importance
over a period of time./
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7. Personnel function in
future: The personnel function in future is going to evolve thus:
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i. Job redesign: The focus on
job redesign will increase: Flexitime, job sharing and alternative work
arrangements will come to occupy a centre-stage.
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ii. Career opportunities: Apart
from compensation, personal growth and self development may become primary
motives for working. HR managers may have to restructure work so that employees
may find expression of their needs for creativity, autonomy and
entrepreneurship
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iii. Productivity: “Productivity,
efficiency, growth” are going to be the new mantras for corporate survival and
growth.
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iv. Recruitment and selection: Effective
selection devices are likely to be used, giving premium to employee skills,
knowledge, experience, ability to get along with people etc.
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v. Safety and welfare: Increasing
investments may have to be made by companies to improve the work atmosphere,
climate and job satisfaction levels of employees.
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vi. Training and development: As
technologies change rapidly, people need to update their skills continuously. A
much broader range of abilities is required to keep pace with ever-present
changes, forcing companies to spend increasing sums on training and development.
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vii. Rewards: Rewards will be
tied to performance. Benefits will accrue to those who show merit. Individually
– designed packages recognizing talent may out-number group compensation plans.
Carrot and stick policies may not find a place in the new corporate lexicon in
the days ahead.
Changes in 21st century impacting HRM: Some
of the current trends that would have a significant impact on the way HR
practices would get transformed in future may be listed thus:
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i. HR as a spacing board for
success: Executives with people management skills would be able to steal
the show, since they help integrate corporate goals with employee expectations
in a successful way. Senior HR executives would be able to smoothly move into
top management positions, using their soft skills to good advantage.
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ii. Talent hunting, developing and
retaining: Clear focus areas: The 21st century corporation would be
looking for people with cross-functional expertise strong academic background
and team management skills.
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The new recruits are expected to use the scarce resources
judiciously and produce excellent results- in line with the expectations of
internal as well as external groups. As companies realize the importance of
human element in gaining a sustainable competitive advantage, there would be a
mad scramble for 'talent'. This would in turn, compel corporate houses to pay
close attention to talent acquisition development and retention through novel
developmental efforts compensation packages and incentive schemes apart from
flexible working schedules.
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More and more workers would be able
to process information by working at homes, forcing companies to evaluate each
employee’s contribution carefully and pay accordingly.
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iii. Lean and mean organizations: Organizations
will be forced to eliminate low-end job, say good-bye to older employees with
limited skill-sets, out source work to specialized institutions in an attempt
to save costs and remain highly competitive.
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As a result lay offs would occur and
unemployment rates will go up; large outlays of cash may be required while
buying out older employees and obtaining employee loyalty and commitment would
be quite challenging in such a scenario.
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iv. Labor relations: Deregulation,
privatization, global competition and the like would in a way, mean the end of
the road for trade unions. They will lose their count slowly but steadily. The
political support enjoyed by them hitherto would also come down drastically.
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Economic compulsions would make both
the employers and employees realize the folly of pulling down shutters or going
on strike, however genuine the cause might be. Governmental influence in
labor-management relations would have only historical significance as
employment-related issues begin to be dictated by market forces.
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v. Health care benefits: To attract talented
workforce healthier work environments would be an absolute necessity. Employers
would be obliged to give their employees safe, healthy and secure work
environments.
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Wellness programs also need to be
designed to help employees identify potential health risks and deal with them
before they become problems. More importantly, organizations need to pay more
attention to issues such as office decor, furniture design, space use with a view
to improve the comfort levels of employees.*
ORGANIZATION OF HRM DEPARTMENT
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The
internal structure of a HRM or personnel department depends on various factors
such as nature and size of the organization, managerial preference to structure
operations clearly, external forces etc.
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Small firms
have only a single section, headed by a personnel officer taking care of
everything. Medium sized firms may create a separate personnel department
having experts in the personnel field supported by administrative staff.
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In large
firms the structure of a personnel department may take various shapes,
depending on organizational resources, competitive pressures and total employee
strength.
• Let us examine this in - greater detail.
HRM Department in Line Organization
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Line structure is more common in
small firms. In this structure authority flows in a direct line from
supervisors to subordinates.
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Each employee knows who his superior
is and who has the authority to issue orders. Managers have full authority
(line authority) in their areas of operation and are responsible for final
results.
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Line authority implies the right to
give orders and to have decisions implemented. The “one-man- one-boss”
principle is observed strictly. Authority relationships are clear and there is
strict discipline as persons working at lower levels can have access to higher
level officers only through their immediate bosses.
HRM Department in Functional Organization
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In any functional organization, all
activates of an organization are divided into various functions such as
production, marketing, finance etc. Each functional area is headed by a
specialist who directs the activities of that area for the entire organization.
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Every employee, therefore, is
required to report to various functional heads. The functional head has line
authority over subordinates in his own functional area. Additionally, he has
functional authority over activities in other functional areas.
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The term 'functional authority‘ thus
is a limited from of line authority given to functional experts in an area
where certain specialized activities are carried out under the normal
supervision of managers belonging to other departments.
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Functional organization has the great
advantage of clarity. Every body has a home. It provides economy of scale
within functions. It reduces duplication and waste.
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Functional heads can specialize and
focus energies on a narrow area as they gain experience, expertise and
competence over a period of time. The ‘effort focus’, however, puts managers in
a race. They tend to fight for power, resources and benefits. Every one tries
to glorify his own field at the cost of others. Overlapping of authority and
divided responsibility further complicates the scenario.
HRM Department in a Divisionalized Organizational Structure
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The
role of a personnel manager attached to the divisional office/branch office or
factory of a decentralized organization is particularly a difficult one.
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The
Personnel manager at divisional/branch level is responsible to the local
divisional/branch manager in a line sense and subordinate to the Manager-Personnel
at head office in a staff or functional sense.
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Personnel manager at divisional/branch level
has to help the divisional/branch manager in developing personnel programs and
in the management of personnel of the division/ branch concerned. The deputy
manager personnel at the divisional level may contact the manager-personnel at
the head office to gain acceptance of the personnel programs.
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In
case of rift between divisional manager and deputy manager, they may report
their difficulties to their common superior who in turn consults higher
management for correct decision.
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Similarly,
the personnel officer at branch level may contact the deputy divisional
manager-personnel at divisional level to gain acceptance of the personnel
programs and to get clarifications about personnel issues.
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In
case of the rift between the branch manager and branch personnel officer, they
may report their issues to their superior at divisional level. The branch
personnel officer and branch manager may get the assistance from the personnel
manager at the head office, in solving the problems of crucial and strategic
nature as also those which cannot be solved at the branch/divisional level.
HRM Department in a Matrix Organizational Structure
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In a
matrix organizational structure, employees have two superiors, in that they are
under dual authority. One chain of command is functional and the other is a
project team.
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Hence,
matrix structure is referred to as a multi-command system (both vertical and
horizontal dimension). Thus, the team of employees which comprise the personnel
department have two superiors, i.e., Personnel manager (vertical dimension) and
Project manager horizontal dimension. Both dimensions of structure are
permanent and balanced, with power held equally by both the functional head and
a project manager.*
TO SUM UP
• The role of HRM has
undergone a dramatic change over the years. From control and direction of
employees, HR department is expected to move toward clarifying goals and paths
and creating a supportive and growth oriented environment. We have also
discussed factors influencing future of HRM , emerging trends in 21st century
affecting HRM and different types of organization of HR department.
• Here are additional
examples of different organizational structures!
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