Page 261 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Mangement

Notes Technology, to cut short a long argument, is changing the face of HRM-altering the methods of
collecting employment information, speeding up the processing of that data, and improving the
process of internal and external communication. It is also impacting the way the jobs are being
processed with a view to achieve operational efficiency. In this race to cut down costs, improve
productivity levels and enhance customer satisfaction – organisations should be careful enough
to introduce new technologies in a phased manner, taking employee concerns into account.
Increased global competition, of course, is compelling most organisations to restructure,
reengineer work processes, introduce total quality management and build flexibility into work
schedules in order to remain competitive and cost-effective.

15.2 Contemporary Issues in HRM

Human resource management is a process of bringing people and organizations together so
that the goals of each other are met. Nowadays, it is not possible to show a good financial or
operating report unless your personnel relations are in order. Over the years, highly skilled and
knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future
skill mapping through proper HRM initiatives.
Indian organizations are also witnessing a change in systems, management cultures and
philosophy due to the global alignment of Indian organizations. There is a need for multi skill
development. Role of HRM is becoming all the more important. Some of the contemporary
issues that are being observed are:
1. Adding value to an organization both the labour force and the business itself.
2. Manage talent within your organization - try to attract and keep talented and hard-working
people in the organization.
3. Globalization
4. IT

5. Business Control
6. Information-workers
7. Info-management.
In addition to the above stated issues, following are also of related importance:

15.2.1 Shortage of Critical Skills

Shortage of critical skills is now a global phenomena. While for the developed countries, this is
primarily because of aging population, for developing countries like India, the problem is
absence of proper initiative at the national level. Whatever is being done now could have been
done at least a decade ago. The problem of skill shortage in the developed countries, as was
mentioned above, is primarily for aging population. But for India, it is for deficiency in our
national level planning and implementation. National Renewal Fund (NRF) was especially
created by the government, initially from a budgetary allocation and later by transferring
proceeds from the disinvestment of PSU shares. The major thrust of NRF was to make fund
available to organizations on soft interest terms to invest in skill renewal.

15.2.2 Demographic Change

Another important aspect which deserve attention of HRM is demographic change process. For
developed countries, the problem is aging populations, but for a developing country like India,

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