Page 260 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 15: HRM Effectiveness

Introduction Notes

There are a number of critical trends/issues affecting the employment relationship that further
affect how organizations need to manage their employees. Some of these trends pertain to
changes taking place in the external environment of the organization; others pertain to some of
the ways organizations are responding internally to such trends. The term 'environment of
business' refers to the aggregate of conditions, events and influences that surround and affect it.
The prevailing trends have significantly change the way HRM works. The recent trends in HRM
can be identified under technological impact, economic challenges and workforce diversity.

15.1 Impact of Technology in HRM

In the present competitive world, technological breakthroughs can dramatically influence an
organisation's service markets, suppliers, distributors, competitors, customers, manufacturing
processes, marketing practices and competitive position. Technological advances can open up
new markets, result in a proliferation of new and improved products, change the relative cost
position in an industry and render existing products and services obsolete. Technological
advancements can create new competitive advantages that are more powerful than existing
ones. Recent technological advances, as we all know, in computers, lasers, robots, satellite
networks, fibre optics, biometrics, cloning and other related areas have paved the way for
significant operational improvements in an organisation. It shows changing trends in HRM.
1. New Skills Required: As new technologies are developed and implemented, there is an
urgent need to upgrade existing employee skills and knowledge. It requires continuous
modernization and upgradation in the skill sets of employees as well as hiring employees
with required skills and qualifications. Thus, giving thrust to ongoing recruitment and
training process from HR department.

2. Downsizing: New Technologies have decimated many lower-end jobs with frustrating
regularity. Increased automation has reduced employee head counts everywhere. The
pressure to remain cost-effective has also compelled many a firm to go lean, cutting down
extra fat at each managerial level. The wave of merger and acquisition activity, in recent
times, has often left the new, combined companies to downsize operations ruthlessly.
3. Collaborative Work: Technological change has resulted in hierarchical distinctions being
blurred and more collaborative teamwork where managers, technicians and analysts
work together on projects. Team based incentive plans have also made it necessary for all
classes of employees to work in close coordination with each other. Here, E-HRM helps in
working of team work by delegating HR functions to respective members through the
help of networking.

4. Telecommuting: The rapid advances in technology have led to the relocation of work from
the office to the home. Telecommuting has become the order of the day-where employees
work at home, usually with computers and use phones and the Internet to transmit letters,
data and completed work to the home office.

Internet and Intranet Revolution

In HR, internets and intranets are being used to handle training, benefits administration,
performance management and out placement functions, in recent times. The cumulative impact
of new technology is so dramatic that at a broader level, organisations are changing the way
they do HRM.

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