CONTEMPORARY ISSUES IN

HUMAN RESOURCE
MANAGEMENT

Lecture Notes
Prepared By:
Dr. Horace A. Williams
CONTEMPORARY ISSUES IN HRM
The Challenge of HRM
1. Competitive Challenges and HRM

2. Demographic and Employee Concerns

3. Responsibilities of Human Resource

Manager

4. Competencies of Human Resource Manager

Competitive Challenges and HRM
1. Globalization

2. Enhancing New Technology

3. Managing Change

4. Developing Human Capital

5. Responding to the Market

6. Containing Costs
 Globalization of Organization
Globalization is a historical process, the
result of human innovation and
technological progress. It refers to the
increasing integration of economics around
the world, particularly through trade and
financial flows. The term sometimes also
refers to the movement of people
(LABOUR) and knowledge (technology)
across international borders (IMF2002).
 Globalization Contd.
There are four aspects to globalization

1. Trade

2. Capital movement

3. Movement of people

4. Spread of technology
 Movement of People
For all the opportunities afforded by
globalization of business, when managers
talk about going, global, they have to
balance a complicated set of issues related
to different geographies, cultures, laws and
business practice.
 Movement of People
Human resource issues underlie each of these
concerns and include such things as identifying
capable managers who live and work overseas;
designing training programmes and development
opportunities to enhance the managers
understanding of foreign cultures and work
practices; and adjusting compensation plans to
ensure that pay schemes are fair and equitable
across individuals in different regions with different
regions with different costs of living.
 Movement of People
This factor alone contributes to the
complexity of HRM
 Enhancing New Technology
Information technology has changed the
face of HRM in many countries. Perhaps,
the most central use of technology in HRM
is an organizations Human Resource
Information System (HRIS).

An HRIS provides current and accurate data

for purposes of control and decision making.
 Enhancing New Tech. Contd.
In this case, it goes beyond simply storing
and retrieving information to include broader
applications such as producing reports,
forecasting HR needs, strategic planning,
career and production planning, and
evaluating HR policies and practices.
 Enhancing New Tech. Contd.
Recent survey found that the most frequent
uses of information technology in HRM
include maintaining employee records,
overseeing payroll operations, handling
absence and vacation records, and
administrative recruitment and training
programmes.

What about the internet?

 Managing Change
Jack Welch, CEO of General Electric point
out that, youve got to be on the cutting
edge of change. You cant simply maintain
the status quo, because somebodys always
coming from another country with another
product, or consumer tastes change, or the
cost structure does, or theres a technology
break-through.
 Managing Change
If youre not fast and adaptable, youre
vulnerable. This is true for every segment of
every business in every country in the world
(Bohlander, Snell and Sherman, 2001).
 Managing Change Contd
Most employees understand that the way things
were done five or ten years ago is very different
from how they are done today or will be done in
five or ten years from now. Responsibilities
change, job assignment change, work process
change. To manage change therefore, managers
must envision the future, communicate this vision
to employees, set clear expectations for
performance, and develop the capability to
execute by reorganizing people and reallocating
resources.
 Managing Change Contd
Change is continuous. Nevertheless, people
often resist change because it requires them
to modify or abandon ways of working that
have been successful or in most cases
familiar to them.
 Managing Change Contd
To manage change therefore, managers
must envision the future, communicate this
vision to employees, set clear expectations
for performance, and develop the capability
to execute by reorganizing people and
reallocating resources.
 Managing Change Contd
Therefore, HR Managers have an important
role in facilitating change processes,
particularly in helping communicate
business needs to employees and in
listening to employee concern.
 DEVELOPING HUMAN CAPITAL

Human capital is intangible and cannot be

managed the way organizations manage
products, technology etc.
 DEVELOPING HUMAN CAPITAL
Contd
One reason for this is that employees own
their own human capital.
 DEVELOPING HUMAN CAPITAL
Contd
If valued employees leave an organization,
they take their human capital with them, and
any investment the organization has made
in training and developing those people are
lost.
Developing Human Capital Contd

To build human capital in organization, HR

Manager must begin to develop strategies
for ensuring superior knowledge, skills and
competence within their workforce.
Responding to the New Market
Meeting customer expectations is essential
for an organization. In addition to focusing
on internal management issues, managers
must also meet customer requirements of
quality, innovation, variety and
responsiveness. These standards require
both TQM and process engineering, each of
which has direct implications for HR
 Containing Costs
Investments in reengineering, TQM, human
capital, technology, globalization are all very
important for organizational
competitiveness. However, there are
increasing pressures on companies to lower
costs and improve productivity to maximize
efficiency.
 Containing Costs Contd
Labour costs are one of the largest
expenditures of any organizations.
Organizations have tried a number of
approaches to lower costs, particularly
labour costs.
 Containing Costs Contd
These include downsizing, outsourcing and
employee leasing and productivity
enhancement. All of these have direct
impacts on HR policies and practices.
 Demographic and Employee
Concern
1. Demographic Changes

2. Cultural Changes
 DEMOGRAPHIC CHANGES
Among the most significant challenges to
managers are demographic changes.
Because they affect the workforce of an
employer, these changes, which include
employee background, age gender and
education are important issues facing HR
Managers.
 CULTURAL CHANGES
The attitudes, believes, values and customs
of people in a society are an integral part of
their culture. Peoples culture affects their
behaviour on the job and the environment
within the organization, influencing their
reactions to work assignments, leadership
styles and reward system.
CULTURAL CHANGES Contd
Like the external and internal environment of
which it is a part, culture is undergoing
continued change. Therefore, HR policies
and procedures must be adjusted to cope
with this change.
CULTURAL CHANGES Contd
Among the issues that are of concern here
are:
1. Employee rights
2. Concern for privacy
3. Changing attitudes towards work
4. Balancing work and family
 Responsibilities of Human
Resource Manager
1. Advice and Counsel: The HR manager
often serves as an in-house Consultant
to line and top level Managers.
 Responsibilities of Human
Resource Manager Contd
Given their knowledge of employment
issues and their awareness of external
trends HR Manager can be an invaluable
asset for decision making.
 Responsibilities of Human
Resource Manager Contd
HR Manager should be concerned with the
operating goals of the managers. This
therefore requires the ability on the part of
HR Manager to consider problem from the
view point of the line managers. He does
this by developing skills in communicating
with the managers.
Responsibilities of HRM Contd
2. Provides Service: The HR managers
also provide service activities such as
recruiting, selecting, testing, planning
and conducting training programmes and
dealing with employee concerns and
complaints.
Responsibilities of HRM Contd
3. Policy Formulation and
Implementation: The HR Manager is
generally concerned with proposing and
drafting new policies or policy revision to
prevent anticipated problems within the
organization.
Responsibilities of HRM Contd
The HR Manager also monitor the
performance of line Managers and other
staff to ensure conformity with established
HR policies, procedures and practices. HR
Manager also assists top level Managers in
interpreting HR policies.
Responsibilities of HRM Contd
4. Employee Advocacy: One key role of
HR Manager is that of employee
advocacy. This involves listening to
employees concerns and representing
their needs to Managers.
 Competencies of Human
Resource Manager
1. Business Mastery: This means that the
HR Manager must know the business of
their organization thoroughly. They must
understand the economic and financial
capabilities of the organization so that
they can join the team of business
Managers on issues relating to the
above.
 Competencies of Human
Resource Manager contd
The HR Manager must also develop skills at
external relations focused on their
customers.
 Competencies of HRM contd
2. Human Resource Mastery: HR
Managers are organizations behavioural
science experts in areas of staffing, staff
development, performance appraisal,
reward system, team building and
communication. Thus HR Managers
must develop competencies that keep
them abreast of changes that may be
necessary in these areas.
 Competencies of HRM contd
3. Change Mastery: HR Managers should
be equipped to manage change process
so that HR activities are effectively
merged with the business needs of the
organization. This involves interpersonal
and problem solving skills. The HR
Manager must also develop
innovativeness and creativity skills.
 Resources
1. Bohlander, G, Shell, S. and Sherman, A.
(2001). Managing Human Resources.
South-Western Publishing.
2. Stacey, R.D. (1996). Strategic
Management & Organizational Dynamics.
Pitman Publishing
3. The Internet