Big Data

Big data is being used in two ways. On one hand, recruiters are using analytics to predict what
kind of employees will do best in a job; say by finding the correlation between employee
productivity and academic performance. On the other hand, with big data producing so much
information, the onus is on HR to present all that information in a way that becomes
comprehensible and engaging, say by storytelling.

Career Development
Gone are the days when organisations could take employee loyalty for granted. Attitudes have
changed as people have become more career centric. They want jobs that not only compensate
them, but also help them grow professionally. HRM must either chalk out career development
paths for their employees or bear the brunt of losing them. The developments in learning
technology are further making it possible for HR Managers to dissolve the traditional training
programmes and make learning and talent development an inherent part of the work culture.

Social Media skills and Employer Branding

Following the lead of some of the best positioned organisations, companies today feel the need to
establish themselves as brands which are high in demand to work for. A 2013 research has found
out that this process is being led by the HRM function, which uses the social media to reach out
to people. The two-way communication that social media facilitates, is making it possible for
organisations to quantify the results of their branding activities in a much better manner.

Work-Life Balance
Last but definitely not the least, the rise of technology has made it possible for employees to
maintain better work-life balance. Learning programmes that can be conducted online, webinars
and virtual conferences as well as the possibility to work from remote locations are all making it
possible for people to balance their personal and professional lives according to their
preferences. It is however, upon HR Managers to use their acumen and design work roles in such
a way that employees perform to their best without feeling over-burdened.
Skilling your employees in the manner that is most relevant to their job also has a huge bearing
on their involvement and productivity. Thus, HRM must collaborate with the learning
department to ensure that the training and development programmes being delivered to
employees are in synchronization with the needs of the organisation.

DOWNSIZIN
In a business enterprise, downsizing is reducing the number of employees on the operating
payroll. Some users distinguish downsizing from a layoff , with downsizing intended to be a
permanent downscaling and a layoff intended to be a temporary downscaling in which
employees may later be rehired. Businesses use several techniques in downsizing, including
providing incentives to take early retirement and transfer to subsidiary companies, but the most
common technique is to simply terminate the employment of a certain number of people.
Rightsizing is downsizing in the belief that an enterprise really should operate with fewer people.
Dumbsizing is downsizing that, in retrospect, failed to achieve the desired effect.

CAUSES

Employee downsizing has an adverse effect on laid-off workers.

Downsizing a company is never a pleasant task to carry out. Everyone in the company is affected
in some way when a company decides to downsize its number of employees. Aside from creating
unemployment for some, it also causes restructuring and a change of duties for others. Business
owners typically make the decision to downsize with much deliberation. Downsizing is typically
done in cases where the company is making significant changes to either increase company value
or eliminate excess costs.
Cost Reduction

One the primary reasons for employee downsizing is to reduce costs. Employee payroll counts as
a liability on the company balance sheet and, therefore, reduces the owners' equity. The retained
earnings of a company are affected by the amount it pays out in payroll, and removing this

obligation is one way to cut costs. Aside from payroll, employee benefits are also costly to
companies, as are the operating costs associated with overproduction.
Productivity

Companies sometimes downsize their employee base to increase productivity. This may seem
counterintuitive on the surface, but some instances exist where this would be advantageous. For
instance, if a company knows that it can increase the output of individual workers while
remaining constant with its productivity, this can be advantageous for cost reduction. However, a
company may also decide to downsize to increase productivity by replacing workers with
sophisticated equipment that can do the same job.
Value

Downsizing the number of employees a company has generally signals that some restructuring
and changes are underway. These changes generally take place for increasing profitability of the
company. If shareholders and other investors perceive that the company will be making changes
that increase its profitability, it will increase the value of company stock. This can result in more
investors coming on board or current investors increasing their shareholdings in the organization.
In either case, downsizing can increase the company's perceived value.
Outsourcing

Companies may overextend themselves in terms of the number and types of services they offer
from time to time. It may behoove company ownership to sharpen the focus of the company by
eliminating some of the products or services that it offers. In doing so, a decrease in the number
of employees may be necessary. Company officials may decide that outsourcing certain activities
will result in increased productivity and reduced costs as well.

EFFECTS
When a small business has more employees than it requires, managers may decide to downsize
the organization. This can be the result of increased efficiency or reduction in demand. While
downsizing affects everyone in the organization, it has the most significant effect on employees
who are dismissed and have to leave the company.
Severance Pay

Employees who lose their jobs because of downsizing may be entitled to receive severance pay.
Employees are entitled to receive severance pay if their contract of employment provides for it or
their employer has a policy or practice of paying severance pay. Businesses who employ more

than 100 people must give their employees 60 days written notice of a mass layoff or pay
compensation. Receiving a lump-sum payment at the end of their employment can be a positive
for employees as they can clear debts or build up their savings.
Alternative Employment

It may be upsetting for an employee to hear that he will lose his current job. However, it also
opens up other opportunities he may not otherwise have considered. Many businesses offer
departing employees help to find another job, known as outplacement support. An employee may
find a job that offers better terms and conditions than his previous role. Some departing
employees seize the opportunity to set up in business for themselves, using their severance pay to
fund their new venture.
Psychological Impact

When an employee is told that he is losing his job as part of a downsizing process, he may
become despondent. He may compare himself unfavorably to colleagues who will remain with
the company and lose confidence in his skills and abilities. Alternatively, an employee may
become angry at the company for making the decision to dismiss him. Over time, that anger can
turn to bitterness. To deal with the psychological effects of downsizing on departing employees,
many companies offer counseling support.
Financial Impact

Employees construct a lifestyle based on receiving a regular income. This includes taking on
debts and mortgages based on their ability to make monthly payments. Losing a job can be a
financial blow for the departing employee if he cannot find alternative employment quickly.
Severance pay and unemployment benefits may not cover his all of his expenses for more than a
few weeks. Even if he finds a job, it may pay a lower salary than his previous job. If this
happens, his lifestyle may have to change to accommodate his lower earnings.

INCENTIVES SCHEMES
HR: Employee motivational program designed to encourage commitment to
increasing productivity or in achieving some worthwhile objective such as reducing
the number of manhours lost due to accidents.
2.Marketing: Customer motivational program designed to encourage them to buy
more of the firm's products. Also called bonus scheme or incentive program.
Read more: http://www.businessdictionary.com/definition/incentivescheme.html#ixzz41A8nqWMB

PURPOSE

To improve business performance (e.g. productivity, sales or profits)

To focus employees efforts on key objectives such as customer service, quality and ontime delivery

To increase employee motivation by establishing a clear link between pay and

performance (at an individual or team level).

To support stakeholder ideals by allowing employees to share in the success of the

business

To encourage change within the organisation.

To create the desired workplace culture by, e.g. rewarding teamwork and good
attendance.

TYPES
BONUS PLANS -- A single payment made at the end of the performance period (typically a year) to reward
extraordinary effort or achievement. Although bonuses may or may not be not tied to a specific predefined
outcome, the employee does not know in advance how much she will earn if this outcome is achieved. As a result
bonuses have limited behavioral or motivational impact. Bonuses are often viewed by employees as gifts and it is
not uncommon for them to be paid around holiday season.
COMMISSION PLANS -- Normally associated with sales positions commissions are payouts that occur frequently
(usually monthly) to encourage and reward a small number of highly specific results (such as revenues gross margin
or units sold). Commission payments are typically based on a specific formula and apply to group of individuals in
the same or similar roles. Such plans tend to remain fairly consistent from one year to the next (with minor
adjustments as needed).
IINCENTIVE PLANS -- 1) A tangible or intangible reward that is designed to motivate a person or group to behave in
a certain way. 2) A single payment made at the end of the performance period (typically a year) to reward specific
measurable or observable achievements that have been defined in advance. Incentives differ from bonuses in that
incentives define BOTH what needs to be accomplished AND what the employee will receive in return for
accomplishing it. As a result incentives have greater behavioral and motivational impact.
PROFIT SHARING PLANS -- A single payment funded by a portion of the company's annual profit paid to an
individual or group at the end of the year.
STOCK OPTION PLANS -- Stock options are an employer's promise that the employee may buy at a future date a
set number of shares at the price set today.
PHANTOM STOCK PLANS -- Phantom stock is a promise to pay a bonus in the form of the equivalent of either the
value of company shares or the increase in that value over a period of time.
STOCK (or EQUITY) APPRECIATION PLANS (SARs)-- A stock appreciation plan is much like phantom stock, except it
provides the right to the monetary equivalent of the increase in the value of a specified number of shares over a
specified period of time.

GAINSHARING PLANS -- A plan that pays individuals or groups a share of expense savings attributable to the efforts
of that individual or group.
KEY CONTRIBUTOR PLANS -- Plans that are designed to retain and motivate a select group of key individuals who
are critical to the success of a particular project or the company as a whole.
SPIFFS -- A small, immediate bonus typically paid by a manufacturer or employer directly to a salesperson for
selling a specific product during a relatively short time period.
MULTI-YEAR INCENTIVE PLANS -- Plans that measure and pay for performance over a timeframe longer than a
single year. Sometimes referred to as Long-Term Incentives (LTI).
MERIT INCREASE PLANS -- Plans that determine the amount of a person's base salary increase based on other
people's (typically the manager's) perception of the value of an individual's performance.
360 DEGREE REVIEW PLANS -- Plans that determine the amount of a person's base salary increase based on the
perception of individuals at all levels (peers, subordinates, and managers) of the value of the individual's
performance.
PERFORMANCE MANAGEMENT PLANS -- Plans that determine the amount of a person's base salary increase based
on specific criteria that are defined in advance and communicated to the employee.
COMPETENCY-BASED PLANS -- Plans that determine the amount of a person's base salary increase based on the
acquisition of specific competencies (i.e., knowledge, skills or abilities).
TAX DEFERRED PLANS -- Plans that structure payouts in ways that minimize the short-term tax obligation of the
recipient by either deferring payout until a later date or placing the payout in tax deferred investment vehicles.
Why so many different plans. Can it possibly be that difficult to motivate people? It's kind of scary to think what might happen if
you pick the wrong type. The good news about these plans is that they work. And the bad news is that they work. Pick the wrong
one (or set it up poorly), and you may not get exactly what you bargained for. In upcoming entries, I will discuss when it is
appropriate to use each of these different types of plans.

Work in the 21st Century: The Changing Role of Human

Resources
Karen E. May
Terranova Consulting Group

There are an incredible number of pressures on today's organizations. To name a few:

environmental pressures such as increasing globalization, rapid technological change, and
tougher competition; organizational changes such as new organizational alliances, new structures
and hierarchies, new ways of assigning work, and a very high rate of change; changes in the
workforce, including employees' priorities, capabilities, and demographic characteristics. Within
these pressured organizations, there is a need for (and opportunity for) the human resource
function to play a critical role in helping organizations navigate through these transitions. In
order to play this role, however, HR will have to increase its real and perceived value.

The role of human resources has been evolving for some time. The shift from "personnel" to
"human resources," for example, was part of the movement to acknowledge the value of
employees as an organizational resource, and was an attempt to remove some of the stigma that
was coming to be associated with slow, bureaucratic personnel departments. This shift in label
was accompanied by a call for HR to become a strategic partner with the leaders of the businessto contribute to significant business decisions, advise on critical transitions, and develop the
value of the employees-in short, to have a seat at the table.
Dave Ulrich provides a clear path to the next generation of HR with HumanResource
Champions:The Next agenda for Adding Value and Delivering Results (1997). He describes a
multi-faceted approach to delivering HR services that meets the needs of both employees and
employers, and positions HR as a significant contributor to organizational success.
Ulrich presents his approach in terms of deliverables, or outcomes, for which HR should be
responsible: strategy execution, administrative efficiency, employee contribution, and capacity
for change. In the course of delivering in these four areas, he describes four corresponding roles
for HR to play within a business: a) as a strategic partner working to align HR and business
strategy, b) as an administrative expert working to improve organizational processes and deliver
basic HR services, c) as an employee champion, listening and responding to employees' needs,
and d) as a change agent managing change processes to increase the effectiveness of the
organization. One of unique things about Ulrich's approach is that it is includes all of the ways
that HR can deliver value to an organization, rather than shifting focus from one area to another.
Similarly, Johnson (1997) describes his experiences in executive search in which CEOs describe
the HR leaders they want to hire. They want people who will be successful business partners,
strategic thinkers, and people who will understand the pressures of running an effective business
in today's market. He reports that, when hiring a leader for the HR function, most CEOs ask for
someone who is, "not a typical HR person," and that most of the successful candidates describe
themselves that way. This trend reflects the common perception that HR "business-as-usual" is
not prepared to meet the challenges that today's businesses present.
Making the shift to a new HR role will raise unique issues for every HR group that attempts it,
but there are some common steps and activities that will increase the likelihood of success. Some
of these steps and activities are:

Strong HR leadership. As with any major change effort, a strong leader can develop a
clear vision, motivate others to share that vision, and help them work toward achieving it.
In order to change the role of HR in an organization, the HR leader will need to work
both within the HR group and with the organizational leaders to reshape everyone's
expectations of what HR can and will deliver. The success of the change will depend
upon HR's ability to meet the real needs of the organization and the credibility it
develops.

Acute future orientation. One of the ways that HR can provide value is to understand how
changing environmental, organizational, and workforce factors will likely influence the
business, anticipate the associated HR needs, and be prepared to deliver appropriate

solutions to meet those needs. By maintaining a focus on workplace trends, for instance,
HR can prepare to evaluate the impact that particular changes are likely to have on an
organization's people and processes, and be prepared to work with the business leaders to
decide how to respond-being ahead of the curve, not behind it. For example, one
movement that is likely to have significant impact on the way people are hired, managed,
and valued is that of intellectual capital. A "new role" HR department is one that has
learned about intellectual capital and its implications, evaluated the impact on current
practice, and developed ideas and recommendations for changing HR practice and other
business processes.

Flexibility and creativity. An HR group that is successful in the future will likely be one
that is responsive to the changing needs of its client organization. Responsiveness in the
changing world of work will require being flexible-as the organizations change, so will
their needs and priorities. In addition, traditional activities and processes may not be
sufficient to meet the unique needs of the future-HR leaders will likely rely on creativity
of their groups to achieve effective results. Increasing globalization of the market will
create a need for both flexibility and creativity as businesses try to succeed in new
locations, with a new workforce, and with new customers.

Delivering value. Although this is not a new challenge for HR, it remains a critical one.
HR is still perceived by many within today's organizations as simply a non-revenue
generating function. It is important to make apparent the value provided by working with
the management team to hire the right people, manage them well, pay them appropriately,
and build a working environment that encourages success. Beatty and Schneier (1997)
extended the concept of delivering value within the organization by arguing that HR must
deliver economic value to the customers, as well as to employees.

Here is a sampling of strategies that I have seen implemented as HR groups work to respond to
environmental and organizational changes, become more valuable, and deliver results.

Business unit assignment. Some companies are assigning HR employees to specific

business units as a way of enabling them to develop a focused relationship with a small
part of the business. This relationship can be enforced when the HR person has a direct
reporting relationship with the leader of the business unit. In these situations, the central
HR group usually provides information and services to the "distributed" HR
representatives, who then deliver the service personally to the business unit. One
advantage of this structure is that it fosters the flexibility and creativity mentioned above,
as the local HR people can modify and tailor processes and services to meet the needs of
their assigned business units.

Centers of excellence. As organizations grow by merger and acquisition, they often find
themselves with multiple HR groups. These can be duplicative or complementary. When
they are duplicative, they can be subject to (painful) downsizing and consolidation,
leaving behind a department that is unable to serve all areas of the business as well as
they had been accustomed, which can, in turn, undermine the credibility of HR. An
effective response to this issue is to utilize the multiple HR groups differently. One

approach that seems to work well is to develop "centers of excellence," where the HR
groups in different parts of the company develop their expertise in a particular area and
serve the needs of the larger company in that area-HR groups operating within this model
can see each other as resources rather than competitors, and the company benefits from
high levels of expertise in a number of areas.

Consulting model. A number of HR departments with whom I've worked have adopted a
consulting model of providing service. They view their internal customers as clients,
learn consulting skills, and take their client satisfaction as a measure of their success. In
one large high-technology firm, internal clients whose needs cannot be met by the
internal HR group can go to external service providers directly-even for basic HR needs.

Job rotation. One way to bring the perspective of the business into HR-and vice versa-is
to rotate line managers into the HR function for periods of time. These individuals often
serve as reality checks for the HR group, and then bring an increased understanding of
the value of HR back to their line function when the rotation is over. This approach seems
to work best when the duration of the assignment is sufficient to allow the rotated
individual enough time to become proficient in some area(s) of HR and when he or she is
working closely with experienced HR people who can help them learn. Sending HR
people into other areas of the business can serve a similar purpose.

Increasing line managers' capabilities. Part of the future HR model is that responsibility
for HR activities is shared between line management and HR people. This approach
allows the manager to be more fully involved in the development and direction of
employees, with HR as a resource; it requires, however, that those managers have the
capabilities needed to work through issues with employees successfully. Many companies
are therefore increasing line managers' access to information. Many of today's HR
information systems and integrated HR systems put tools and data on each manager's
desktop.

It is clearly time for a quantum leap in the HR field, and I/O psychologists working with and for
HR professionals can support this transition by taking seriously the organizational pressures to
change, helping to identify ways to measure the value delivered by HR, and conducting
meaningful research related to all areas of human performance in tomorrow's organizations.

equipped to face the ever increasing pace of technological changes and techniques. This is
the accountability of the human force manager to properly train the work force to
accomplish the competitive advantages of business in the 21st century. HRM managers have
moved from handling simple personal issues to making a strategic implementation through
supporting the long term strategies with the necessary employee qualifications and
developing the cultural and technical capabilities required for the strategies of the
organization. In recent years there has been considerable debate regarding human resource
management (Bal, 2011, p- 2). One has to rise the question here what should be the

priorities for human resource in future? Though we believe that human plays a vital role in
an organization but due to rapidly transforming business landscape, globalization, changing
nature of consumer taste and habits, a new techniques of production, HR managers are
facing a variety of issues and challenges like retention of the employees, multicultural work
force, retrenchment of the employees. Armstrong (2004) defined Human Resource
Management (HRM) as the function within an organization that focuses on recruitment of
management of, and providing direction for the people who work in the organization.
Human resource manager will have to build or develop a frame work that allows flexibility to
develop a workforce for tomorrow (Andries du plessis, 2008, p-167). The primary focus of
the paper is to explore HR issues and challenges and to provide practical solutions.
Review of Literature:
The world federation of personnel management association (WFPMA, 2009) survey pointed
out the most important top ten HR challenges are leadership development, organizational
effectiveness, change management, compensation, health and safety, staff retention,
learning and development, succession planning, staffing: recruitment and skill labour. In the
view point of Decenzo and Robins (2001) the most important challenges of HRM, are
technology, E commerce, and work force diversity, and globalization, ethical consideration of
the organization which may directly or indirectly affect the organization competitive
advantages, especially with technological advancement the affect on recruitment, training
and development and job performance with great extent can be study in organization.
Factors affecting the role of HRM
Globalization
Greengard (1995) defined globalization as the system of interaction among the countries of
the world in order to develop the global economy. Globalization refers to the amalgamation
of economics and societies around the world which means that world trade and financial
markets are becoming more integrated. Growing internationalization of business has its
impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions,
attitudes, management styles, work ethics etc (Srivastava & Agarwal). Globalization has an
effect on employment patterns worldwide. It has contributed to a great deal of outsourcing
which is one of the greatest organizational and industry structure shifts that change the way
business operates (Drucker, 1998). Globalization is also seen as changing organizational
structures where expenses can move up or down as the business climate dictates (Garr,
2001). As a result HR managers have to confront with more heterogeneous functions and
more involvement in employee's personal life.
Technological advances
Technological advances have a significant impact on HR business practices. Due to the
advancements in the technology there has been a drastic change in the approach to the
various projects and the scenarios that guide to the organizational regulations.
Firstly, the need of skilled personals is mentionable. In order to survive in a competitive
environment the organization definitely in need of the skilled personals in substantial
number to handle the situations and technical equipments. In an organization there are
"hot" sectors which require a high of technical experts like telecommunications, hospitality,
retailing, banking, insurance, bio-technology etc. Next head which is worth mentioning is
the downsizing. New technologies have decimated many lower-end jobs with frustrating
regularity. The increased automation also has reduced the employee head counts

everywhere. The pressure of remaining cost-effective in every aspect has also compelled
many a firm to go lean, and thereby cutting down extra fat at each and every managerial
level (Anurag, 2011). Managing the expectations of knowledge workers is also going to be
a major area of concern for all HR managers in the years ahead.
Other aspect is telecommuting where the employees started to work remotely from a place
other than their primary office. Telecommuting became a popular alternative to avoid the
daily commute where the employees use phones and internet to transmit their office works.
This has been a powerful cost effective tool in the sense that companies have been
successful in increasing their applicant pool through this mode and staffs also may live far
away from cities and gain considerably due to savings in rents, transportation, etc.
The biggest issue due to technological advancement is adaptability, with companies looking
at tools which can integrate with the internet, while other issues of concern include data
privacy, security and business continuity/disaster recovery.
Workforce Diversity
Diversity by definition for the business world means having a workforce that represents
many different viewpoints, backgrounds and cultures. Diversity affects all areas of
organizations from recruitment to compensation, to the affect it has on the corporate
culture, morale and competitiveness. Diversity in the workplace is an increasingly topical
theme in management. Diversity within HRM, termed as workforce diversity, is a
multifaceted phenomenon that can be defined as any visible or invisible difference between
organisational members. Diversity can be labelled into two distinct aspects: observable
differences (e.g. nationality, age) and underlying differences (e.g. values, sexual
orientation). Workforce diversity becomes a particular issue in HRM as it has legal, moral
and business implications for an organization.
There are a number of ways in which people respond to diversity. Behavioural and emotional
reactions to diversity are explained largely by three theories: the similarity attraction
paradigm, social identity theory and social categorisation theory (Pearson, 1995). Workplace
diversity has its positive effects (e.g. innovation, flexibility) as well as negative effects (e.g.
high turnover, decreased job satisfaction). However, diversity management can help
mitigate the adverse effects of diversity and capitalise on the positive effects.
With the fusion of talents of diverse cultural backgrounds, genders, ages and lifestyles, an
organization can respond to business prospects more vividly and creatively, especially in the
global arena, which must be one of the main organizational goals to be attained. The risks
of losing talents to competitors occur when an organizational environment does not support
diversity. This is especially factual for a multinational company (MNCs) who have ventures
on a global scale and employ people with varies ethical and cultural backgrounds. Thus, a
HR manager needs to be mindful and may employ a Think Global, Act Local approach in
most circumstances.
Changes in political and legal environment
If there are Changes in political and legal environment, then almost all aspects of HRM will
be affected by the legal and regulatory environment. The key drivers of a political climate
include the extent of external regulations, nature of work contracts, various labour
legislations and case laws etc. Such factors remain ever changing, and as such, the political
atmosphere of human resource management remains in a constant change of flux. It is the

duty of human resource and industrial relations executives to anticipate the changes and
fully examine the implication, of these changes and brings about necessary adjustment
within the organization so that they can face any changes without any breakdown in its
normal functioning (Srivastava & Agarwal, p-47)
Changes in the Economic Environment
In an economic situation companies suffer both internal and external pressures. The
external competitive pressure stemming from the economic crisis produces a drop in
demand and an increase in unemployment, which in turn affects the global competition in
the market. On the other hand the internal management of the company focuses on
efficiency. This leads to pressure to reduce costs and fringe expenditure, as well as to the
need to justify the need for each and the total amount of all expenditure to be incurred.
High unemployment and layoffs are clearly HRM and managerial issues. Without a doubt,
these matters influence the strategic HR function. In an inflationary economy, the resources
tend to become scarce and the costs of machine, materials and labour multiply. These push
up the capital and running costs.
Ethics
While considering the challenges of human resources there is a need to discuss about
ethics. The discussion about ethics happened during mid 2000s when several companies
were found to have engaged in gross unethical and illegal conduct, resulting in the loss of
billions of dollars from shareholders. Companies are seeing the value of implementing ethics
codes within the business. Many human resource departments have the responsibility of
designing codes of ethics and developing policies for ethical decision making. According to
Steve Miranda, chief human resources officer for the Society for Human Resource
Management (SHRM), "[the presence of an ethics officer] provides a high-level individual
with positional authority who can ensure that policies, practices, and guidelines are
effectively communicated across the organization"( McGraw, 2011). Developing policies,
monitoring behaviour, and informing people of ethics are necessary to ensure a fair and
legal business.
In the present era most of the organizations are competing globally for their best
reputation, by keeping in view the above issues and challenges the HR mangers are
responsible to train all the young workers, to provide them best rewards as a result they will
show their commitment and loyalty.
- Technology has changed each and everything with great extent, the methods of
production, the process of recruitment, the training techniques, new equipment and
technology should be introduced and purchase by the organization and training should be
provided to young and educated workers.
- To cope up with the issue of Globalization HR manager should adopt the concept of
Globalize Human Resource Management (GHRM) where it prepares the skill people or
manager worldwide. This way the trend of globalization can be minimized with some extent.
- Human resource manager should develop such a HR system which consistent with other
organization elements such as organization strategies, goals and organization style, and
organization planning.
- Regarding the debate on work force diversity, the HR manager accountable to make such a

broad strategies which help to adjust employees in global organization, HR must increase
the ability to compete in the international market.
- Organization culture is also another important element which must be consider by the HR
manager, the culture must be like to shape their behavior and beliefs to observe to what is
imperative.
- To provide more and more talent people into the organization the HR manager must redecide and re-arrange the staffing functions, for recruitment selection, training and transfer,
promotion, dismissals, placement, demotion and layoffs of the employees separate
strategies should be developed and implemented.
Conclusions
As we have discussed the dominant issues and challenges which are facing by HR mangers
and organization. The foremost work by the HR is to develop sound organizational structure
with strong interpersonal skill to employees. Training employees by familiarize them with
the concept of globalize human resource management to perform better in the global
organization context. All these issues and challenges like, work force diversity, leadership
development. organizational effectiveness, Globalization, E- Commerce, etc, can be best
manage by HR manager where they have to adopt a HR practice which encourages rigid
recruitment and selection policy, division of jobs, empowerment, encouraging diversity in
the workplace, training and development of the work force, fostering innovation, proper
assigning of duties and responsibilities, managing knowledge. By enthusiastically following
all the above aspects the value of human resource can be improved, organization efficiency
can be enhanced, and the organization will sustain to survive.

rina Heuer, chairperson of the German Association for Personnel Management (DGFP), which
in its latest survey identified demographic change as the mega trend that will have the greatest
impact on HR management in companies in Germany over the next three years. According to the
Fraunhofer IAO, there are for the first time in Germany fewer career starters than people
entering retirement this year. In 20 years, it is predicted that there will even be two new
pensioners for every person who joins the workforce.
Similar developments can be observed worldwide. Birth rates are falling, the baby-boomer
generation is approaching retirement age. As a result, the working population is declining in
many developed countries, especially in the United States and Europe, as Claire LacroixBouchardie from consulting company Mercer writes. Lacroix-Bouchardie also expects that Asia
will soon follow suit, and that the trend will hit Latin America in the slightly more distant future.
2. The war for talent goes global
3. Work-life balance is more important than status
4. The era of post-permanent employees is on the horizon
5. Conflicts caused by constant availability

6. IT supports cultural diversity

7. IT tool sales profit from the trends
Next page: Shortage of talent a worldwide problem
2. The war for talent goes global

Companies are finding it increasingly difficult to keep their offices staffed and to fill vacancies
with qualified young professionals. In a global survey of 4,300 HR managers by recruitment
consultancy Michael Page, half of the participants described the search for suitably qualified
staff as difficult or very difficult. In its Human Capital Trends 2013 study, the consultancy
Deloitte named the war for talent as one of the five most defining developments globally.

3. Work-life balance is more important than status

At the same time, a shift in values is taking place. According to the DGFP, this is the trend with
the second biggest influence on HR work. In his presentation at this years conference of the
Society for Human Resource Management in Chicago, HR strategist Gary Kushner looked back
at how his grandfather once described his life to him as the sum of the achievements he had
accomplished for his employer. But those born after 1980 view things very differently indeed,
and this Generation Y has been part of the workforce for some years now. Their philosophy is:
live first, and then work. One of the criteria in choosing an employer is lifestyle, observes
Katharina Heuer. According to the Deloitte study, work-life balance is more important to the
digital natives of Generation Y than conventional promotion up the hierarchy accompanied by
salary increases.
Generation Y also works differently than companies may be accustomed to. This young
generation strives for independence and prefers collaborative forms of working, as Claire
Lacroix-Bouchardie from Mercer states. She compares members of Generation Y with wild bees,
who do not like to have demands made of them or become attached. They feel more obligated
to their own needs than to their employer and a traditional career path, so they fly wherever they
want, Lacroix-Bouchardie writes. One the one hand, this makes them more difficult for
companies to handle. On the other hand, the generation brings with it a new approach to
efficiency, thanks to its desire for a good work-life balance: The faster the work is done, the
sooner you can devote yourself to other interests. Thats why Generation Y looks for all possible
ways to complete its work more effectively using new communication tools and ways of sharing
information with others.
Next page: Why working conditions need to become more individual
4. The era of an open talent economy is on the horizon

The virtualization and digitalization made possible by modern technology the DGFPs third
most-important mega trend coincides well with this attitude to work. Digital natives work
locally and at flexible times. For a long time now, companies have been getting work done not
only by permanent employees and service providers but also for a fixed period and according
to need by external talents with specific skills, Gary Kushner explains. The Deloitte study
suggests that this development could bring about an open talent economy in the future, with
much more open forms of cooperation than today. Increasingly, work will be done in networks.
And this development too will lead to a fall in the number of staff who sit at the same desk for
the same number of hours every day.
However, work organized this way is still the exception rather than the rule and digital natives
are a long way from forming the majority of the working population even if Deloitte maintains
they will make up three quarters by 2025. According to Katharina Heuer, companies will also
have to cope with more generational diversity. After Generation Y, Gary Kushner can even see a
Generation Wireless advancing, which will evidently be even more communicative and for
which desk work will be an absolute exception. Katharina Heuer regards HR management as an
organizations developer of culture. Together with managers, its task is to shape a culture of
good cooperation between the generations, but also between different nationalities, cultural
circles, religions, and the genders.
Trends in HR: More people working in part-time jobs than 10 years ago

In HR, Katharina Heuer can also see a trend toward the individualization of working conditions.
This increasing individualization is evident, for example, in the fact that working arrangements
and especially part-time contracts are now much more varied than 10 years ago, she says.
Today, IT makes communication possible everywhere and at any time. The boundaries between
work and leisure are blurring, Heuer explains. At the same time, how your working life can be
combined with your personal life is an important factor in choosing an employer not just for
the young Generation Y. Companies are therefore called upon to increasingly adjust working
conditions to the needs of employees, their stages of life, and the things that happen in their lives.
Next page: Young employees want a say in decisions
5. Conflicts caused by constant availability
According to the Deloitte study, the various generations of the workforce are all in agreement about their desire for
more flexibility. At the same time, the authors of the study point out that the disappearance of the regular nine-tofive job can also create pressure to be constantly available, rather than a feeling of freedom. Some employees may
be able to deal with this well, but others less so. The boundaries here are not necessarily between the generations.
Companies will become more diverse, simply through individualization within the younger generation. So far,
Generation Y is the most diverse group there has ever been in the workforce, believes Claire Lacroix-Bouchardie
from Mercer.

6. IT supports cultural diversity

In Katharina Heuers opinion, increasing globalization is another reason why companies need to
get to grips with cultural diversity. But globalization prompts even more questions for human
resources: How can an HR policy be shaped that caters to global requirements and regional
needs? How can a corporate culture be developed that takes into account the cultural diversity of
the sales markets and integrates and binds a diverse workforce with the company? How can
international teams from different countries and continents work together? IT can help
tremendously here, says Katharina Heuer.
HR should have a say in planning social media
Internal social networks are a tool for international and cross-location communication and
cooperation that many companies now use. According to Katharina Heuer, human resources
should be involved in the planning and determination of these communication and
cooperation procedures because it concerns the management and corporate culture. For
HR, this means there is no getting away from social media. Having social media skills is
now a must for HR, she says. She adds that social media now plays a crucial role in HR
marketing. Furthermore, social networks enable people to work in decentralized teams, and
particularly young employees want more communication and involvement which is
possible using social tools. Katharina Heuer believes the trend toward a culture of
participation can be identified in different forms throughout the world.

Next page: External image must tally with everyday company life
Whats more, social media projects an image of the company to the outside world. To present
themselves and attract new employees, companies use instruments such as company profiles in
social networks. According to the software consultancy SoftSelect, 43% of enterprises use social
media in employer branding. Here, they must ensure that the image they convey tallies with the
reality of working at the company on a day-to-day basis which is also a job for the HR
department. If the promise they make to the outside world doesnt match what its really like to
work at the company, the credibility of organizations can be called into question using social
media, says Katharina Heuer.
According to a survey by SoftSelect covering Germany, Austria, and Switzerland, the use of
social media for HR purposes is currently being intensely discussed and providers are
increasingly integrating social media functions into their HR software. However, HR software
for the more conventional tasks is still the most common. 95% of companies use software for
payroll, the Michael Page survey reveals. It also found out that 79% of organizations deploy
solutions for personnel administration. Although tools for assessing performance and attracting
new employees are much less prevalent, they are still used by more than half the companies
(63% deploy the former, 60% the latter).
7. Sales of IT tools profit from the trends

Both the Michael Page survey and the SoftSelect study make one thing clear: Companies are
expanding their use of software in human resources. Particularly software for recruitment and
talent management is currently experiencing a real boom, the writers of the SoftSelect study
claim. This is because the shortage of skilled talent and demographic change have made HR
planning a success factor. To find the talents of tomorrow, companies are upgrading to the latest
applicant management tools.
This article is the first in our topic of the month: human resources. Throughout August, we will
be informing you on SAP.info about many aspects of HR, including an overview of SAPs HR
solutions and articles on the growing significance of social media in attracting skilled staff and
how to develop talent.