Post on 18-Nov-2014
Human Resource Management in 21st
CenturyGROUP A9
Siby P DanielSubrahmanya RaoAnuradha Sultane
Supriya H GSuresh S
Swati Bansal
Topics to be covered
Introduction
Employees-Intellectual capital-Manage
strategically
Changes in world
A case - Managerial Misclassification
INTRODUCTION Human resource management consists of
Attraction
Retention
Motivating
Disciplining
Selection
Utilization
Rewarding
MANAGEMENT OF INTELLECTUAL CAPITAL
Shift in economic activityAgriculture manufacturing servicesCompanies compete based on human capital
rather than physical capital(hard assets)
Employees(people) are viewed as resources Active management positively contributes to
organizational success
Human resources similar to customers, financial resources, operating systems and technology Constituting main input into organization
Change in employment contractingPrevious scenario Continuous employment contracting
Implicit employment
Employees worked continuously for a single employer
Received pension benefits after retirement
Mutual and reciprocal obligations In initial period employers gained an economic rent
employees were paid less than the value of their productivity
In later period employees gained an economic rent employees were paid more than the value of their productivity
Laying off & rehiring of employees
New scenario
Employee quit rates rose markedly
Frequent job changing(even job hopping)
Employability
Employees were paid the value of their productivity at
any point in time
Reducing workforce to achieve long term, permanent
labor cost reductions.
Change
Implicit long term employment contracting ↓
Shorter term, commodity type labour contracting (through outsourcing)
Reasons for changes
Global economic competition
Deregulation
Technological change
Increased product and labor market competition
De-Unionization
Previous scenario:
Strong unions and collective bargaining
Mainly in companies having monopoly
Work terms and conditions were on negotiated
basis
Present scenario:
Decline of private sector unionization & collectiv`e
bargaining
Fewer people joined unions
Companies moving operations offshore
Decrease in labor relations department
Increase in HR department
Bundling of HR management practices
Positive effect on financial performance
High Involvement
Low Involvement
ComparisonHigh Involvement Low Involvement
Job Security Present Absent
Employment Duration Long Term Short Term
Employment Procedure
Selective Hiring Outsourcing, Employment Contracting, Vendoring
Realisation of gains In Long term In short term
Organizational performance
Achieved by Investment in intellectual capital
Achieved by reduction in labour costs
High involvement HRM practices
Low involvement HRM practices
The proper balance between
Practices for Resolving Employee Disputes
“Conflict is an Enduring, ever- present characteristic of employment relationships”
(Colvin, 2004)
Employee related conflict in organizations is not affected by decline in unionism
HRM Role -
Understand nature of such conflictEvolve practices to resolve conflict Measure effectiveness of such practices
Comparison of Unionized and Non Unionized Alternate Dispute resolution Systems
Unionized ADR Systems Non Unionized ADR Systems
Grievance steps.Speed of grievance SettlementScope of grievance related issues
Determined by both employees and employers
Determined solely by employer. Its’ One-sided’ and Unfair
Grievance Filling rates Higher Lower (approx 50% less)
Third Party Arbitration In most cases In very few cases
Eligibility to use grievance procedures
Only employees represented by unions
Scope is wider
Post Dispute Resolution Outcomes
Not considered Focus on Post Dispute Resolution Outcomes .
Post Dispute Resolution Outcomes
Prior to Grievance Settlement Post Grievance Settlement
Measures Non Grievance Filers
Grievance Filers
Non Grievance Filers
Grievance Filers
Job performance ratings
Similar Similar Higher Significantly Lower
Promotion rate Similar Similar Higher Significantly Lower
Work Attendance rate
Similar Similar Similar Slightly Lower
Job Turnover rate( 1-3 years)
Similar Similar Similar Significantly Higher
Comparison
Explanation of findingsRetaliation explanation
Consistent with Organization Punishment/Industrial Revealed performance explanation
Consistent with Shock Theory of Unionism
Inference
As Non union ADR systems are reactive in nature, their use is –
Leading to Further deterioration of employment
relationship than resuscitation of such relationships Original purpose of adopting Dispute resolution Systems –
Not met
Need for Proactive employment dispute identification, diagnosis and resolution
Post Dispute Resolution Outcomes
Post Dispute Resolution Outcomes
Implication
If Human resources are to be used for competitive advantage,
HRM in 21st Century will require
Deeper thought,
Theory development,
Empirical research and
Clinical insight than before
Case Study – Managerial MisclassificationCase-
In retail and restaurant industries, employees holding managerial job titles such as
Store Manager, Department Manager, Location Manager Etc’Perform Employee rather than Managerial work.But are Paid Annual salaries rather than the preferred hourly wages. Misclassification cases filed against employers argue-That these employees should receivehourly pays and also overtime pay for working
hours>8 as they are doing employee work
Case- HR Perspective
Key Question
“Why Managerial Misclassification cases exploded?”
Answer lies in 3 parts 1>In start –up phase of an enterprise, mangers managing the few
locations and facilities predominantly do managerial work. 2> As businesses grow larger Strategic, Organizational, SCM
initiatives take decision making responsibility away from store level to higher levels.
3>Compensation = Base salary + bonus Bonus = Budgeted Labour cost – Actual labour cost Store managers have a clear incentive
To substitute their’ labour’ for hourly paid labour of their employees
Are Misclassification cases a result of different Strategic initiatives on part of companies?
Yes,As Companies have failed to address change in lower level
management jobs emanating from well-meaning and well-
founded strategic initiatives. Success of an enterprise lies inAbility of organization to Anticipate and deal with such cases
If HR executives had a seat at the business strategic table
ConclusionHR is a strategic business function that should be a business
partner in the same way as Finance Marketing and Operations are business partners in an enterprise.
As businesses compete on basis of their intellectual / human capital21st century is for HR functions and HR leaders to keep their eye on prize of strategic role in businesseswhile also performing necessary operational roles