Changing Nature of Human Resource Function in Contemporary Organizations - Essay Example

Name: Institution: Changing nature of human resource function in contemporary organizations Tutor: Course : Date: Changing nature of human resource function in contemporary organizations Introduction Human resource department is the engine of all the functions of any particular organization since it plays an important role of directing and controlling as well as appraising the performance of the employees. According to Debroux (2003), human resource practices should be tailored to anticipate any challenge and change and deal with it adequately. As trends in business change and so is the management of human resource and challenges are expected. In this paper changes such as globalization and technology have been discussed drawing the attention of the human resource to their significance. The challenges that are anticipated have been mentioned and human resource preparedness to the challenges assessed. Lastly there is a conclusion recapping the significance of these factors in the essay (Merkel, 2007). Motivation maintenance Noe (2004) argues that mmaintaining motivation and commitment of employee is a major challenge that is emanating in this era of work alienation and the ever increasing work insecurity. Work alienation and increasing job insecurity are two outcomes that are identifiable relating to trends of management that have been well discussed in different literature. Noe (2004) notes that tthese trends of management include the tendency to flatten hierarchies of organization by the elimination of layers of middle management, and the subsequent effort to downsize the entire population of employees. Consequently, the trends have elicited many responses from the organizations as they deal with the de-layering and downsizing strategies. The responses are both unintentional and intentional, and comprise the outsourcing of particular functions, career paths of employees that are altered, career durations in organizations that are reduced, self responsibility for careers, more use of employment contracts, and escalating rates of employee turnover. The trends and the subsequent response have gathered a range of outcomes in the attitude, perceptions, commitment, workers’ behavior and motivation. When collectively examined, the outcomes result into escalating sense of worker alienation and job insecurity emanating from different section s of the workforce. Particularly organizational dysfunction is directly attributed to downsizing. For instance, some workers view downsizing as a forfeiture of a psychological contract which is implicit between the employee and employer (Debroux, 2003). Changes in demographics Among the forces that are powerful influencing organizations and work is the change of demographic feature of the worker. The workforce that is expected in the year 2010 will be very different than it is in 2011. Reduced birth rates compounded with a workforce that is aging have occasioned a labour pool that is shrinking. According to Kandula, (2006), the workforce age distribution is bound to shift in a very dramatic way, while the values, expectations and characteristics of the entering new workforce will be resoundingly different as compared to the past ones. On the side of the demand, the types of workers who are needed to carry out the type of work that is required to be carried out will also be completely be different in an economy that is knowledge based (Ulrich, 2005). Workforce aging Ulrich (2005) advices that as the young and youthful generation draws towards age of retirement, close to a third of the will go for early retirement. A workforce that is aging coupled with low rates of birth, and escalating population of young workers postponing work owing to higher education is resulting in a shortage of workers and skills. An aging workforce has a number of influences on organizations. Organizations are experiencing shortage of workforce occasioned by early retirement. As a result there will be doubled competition for a workforce that is young leading to struggle to grab the top talent first (Merkel, 2007). Organizations can lead to the retention of workers who are old by deliberately delaying their retirement. In Canada the provinces of Quebec and Manitoba ended retirement that is mandatory on human right basis and Ontario has followed suit. The policies older workers who wishes to stay from being compelled to leave, but are not aimed at retaining the workers who are old. Working conditions sought by old workers are very different from what they could have put up with or used to in the previously. Consequently organizations must restructure their human resource policies in an effort to convince the old workers to remain in the organization. These could encompass retraining, work arrangements that are flexible and customized, offering benefits and rewards that older workers find appealing (Monappa, 2004). Monappa (2004) argues that older workers retention will result in the creation of new challenges in the working environment. Older workers come with characteristics that are undesired which include inflexible attitude, low trainability, resistance to change, and poor health. Discriminatory attitudes and stereotypes can lead to poor of workers who are old, hindrance to retraining, and employment to those willing to join the workforce. Consequently, workers must make sure that older workers are treated with dignity and respect and there should be no any form of discrimination of the basis of age. Some customers particularly prefer being handled by an older worker as opposed to a young worker (Kandula, 2006). Kandula (2006) notes that the fundamental priority for organizations is ensuring successful knowledge transfer from the older generation to the subsequent generation. This will ensure continuity and stability. Often there are little efforts or formal programs designed for transferring of knowledge from a generation to a generation. Mentoring programs should be designing putting together older worker and a young apprentice. This will avail young workers with exceptional access to the perspectives and experiences of older workers. Youthful workers also benefit from development opportunities especially in receiving advice on career and personal affairs (Monappa, 2004). Workforce diversity ‘Brain drain’ is frequently heard in a situation where well trained nurses and doctors exit the country. Australia recorded an in-flow of about 190,656 immigrants who are professionally qualified between 2000 and 1995. Canada saw the influx of over 300,000 mangers, skilled technical workers and professionals. These trends are as a result of skilled immigrant policy directed at low worker/birth rates of replacement and a workforce that is aging. A huge population is experiencing challenges finding work owing to systematic discrimination (Ulrich, 2005). Regardless of many organizations experiencing shortage of skilled workers, they are not working competently to grab the pool of skilled workers. Immigrants are underutilized and many are placed in the fields which they have not trained in. Discrimination is meted to them on the basis of their race, language, religion, accent, culture and ethnicity. Organi8zation have to expediently acknowledge that the workforce is increasingly becoming heterogeneous, and they have to adapt to a pool of workers that is diverse. Incorporation of technology Owing to advancement in technology the way things are done changes and the effect are transmitted to every worker personally. Technology continues to get faster, cheaper and better. Colossal amount of information can be processed, and data accessed and shared easily and enhance global communication. Development in computers and machineries has occasion workers elimination and increased organizations’ productivity. Workers in production and manufacturing have been affected the most following the automation of many operations that result in workers’ elimination. Emergence in technological advancement has altered the way other skilled work is performed. Competencies needed to do most jobs have changed as computer technology has been incorporated in. Organizations cannot afford to ignore the effort of technology (Hegar, 2007). Information technology has given rise to the emergence of knowledge workers. Knowledge workers like to be left autonomous and not being directed on what to do. This is different from the traditional workers. Much of knowledge work is intangible and invisible and mostly not easy to measure. Inventions in technology have changed how workers live and work. According to Hegar (2007), workers can no longer commute long distances and work in virtual teams and meet on-line. Technology has enabled distribution and sharing of information possible. Communication and digital technology has resulted in an upsurge in knowledge networks enable different functions to be collaborated. Professionals from different continents are able to collaborate. According to Aswathappa, (2007), communication channels availability has created accessibility to key decision makers and senior management. Middle level management is expediently becoming somehow irrelevant due to the fact that hierarchical and formal structure of organization is becoming less important. Knowledge networks have given everyone access to information. Organizations are steadily becoming less bureaucratic and more democratic in the long run. Many decisions have to be made and often they will not come from the top management in organizations that are complex and large. Owing to this, decision making is widely decentralized and when information is distri8buted widely, decisions are made expediently. Globalization Local markets have hugely been linked by technology. The cost of moving information has been drastically been cut. Political and cultural barriers of all kinds have been drastically broken down. Growth in transportation has brought about global market place for services and products. New competitors are emerging while on one hand new markets are being discovered every now and then. Moreover the obvious threat of outsourcing for jobs, globalization has resulted in labour markets that are global, global collaborations, work teams that are globally distributed, and consequent great competition. It has opened up opportunities for organizations and workers. The outcome of all the globalization is dynamic work environment and experience for organizations, groups, and individual worker (Aswathappa, 2007). Challenges that the HR profession will face over the coming decade In the coming decade there will be imminent pressure to replace a workforce that is ageing with young professions. Equipping young professionals to take up the place of employees who have hade relevant experience of over twenty five years is not an every-day task for the human resource management department coupled by an escalating quest for young professions like engineers in globally, it is bound to develop into a fundamental strategic issue. There will be need to review the prevailing practices of human resource and putting the challenge of human resource management on the top list of agenda of management (Jackson and Mathis, 2010). A great number of companies do not have clear strategies to adequately respond to challenges. Pressure on the human labour resource is bound to increase making the companies to adjust their tactics in enticing qualified personnel to their workforce. There will be a shift, and it is already taking place, from overemphasizing on compensation package to lure young professions into the organization. Other things that are being emphasized include opportunities for training and development. Retention should be achieved through reward and performance and motivation management to ensure workers get enough responsibility in their specialization so that they do not feel under utilized. Making sure that the employees do not leave the company very early will be among the major challenges that the human resource management is faced with in future. This is occasioned by the increased competition in every sector of the business (Kramar, 2007). The building of a strong human resource brand is another challenge that the human resource department is bound to be faced with. Building a formidable brand is a long-term journey affair and not an instantaneous step. A company that is able to build a strong brand in the market attracts more interested employees than that which has a weak brand in the labour market. With an upsurge in technology advancement, the company is faced with a challenge of incorporating up-to-date technology in its functions without tampering with its workforce. In case where an employee has to lose his job owing to an implementation of IT then the company should ensure that the remaining workers do not feel aggrieved leading to under-productivity (Monappa, 2004). Shyni, (2005) observes that as the company grapple with staying abreast as far as technological inventions are concerned, there is a challenge of getting to the wrong books of the labour movements and unions and look after the welfare of the employees and their working condition. According to Jackson and Mathis (2010), having to strike a balance of implementing the latest technology and also maintaining the size of the workforce will be another challenge the human resource department has to deal with now and in future. Changing trends in the demographics and generally in the labour force is a major challenge that the human resource can only anticipate the end results. Moreover there are emerging trends that should be taken seriously because they cost the company. Areas like stress management is of great concern because of late there has been an increase in the stress related illness. These kinds of illness are bound to make the workers not to give their best (Shyni, 2005). Conclusion As advancements are being made in almost every sector, they come with challenges that should be anticipated with every organization. The human resource management is not spared with the responsibility of having to deal with the various changes and challenges. Changes will trigger challenges. The view areas looked at in this essay are enough to jolt the human resource department into a mood of anticipation. As seen in technology and globalization it can be concluded that every good thing comes with a bad side that should be contained to so that it does not overwhelm the good side. Bibliography Hegar, K.W., 2007, Modern Human Relations at Work, Cengage Learning, Belmont. Noe, A. R, 2004, Human resource management: gaining a competitive advantage. McGraw-Hill, Melbourne. Debroux, P., 2003, Human resource management in Japan: changes and uncertainties: a new human resource management system fitting to the global economy, Ashgate Publishing Ltd, Hampshire. Merkel, N., 2007, Human Resource Management: Impact of Changes in German Labour Relations, GRIN Verlag, Munich. Shyni, K.V., 2005, Change Management Vis--Vis Human Resource Management, Discovery Publishing House, Delhi. Jackson, K.H., & Mathis, R.L, 2010, Human Resource Management, Cengage Learning, Belmont. Ulrich,D., 2005, The future of human resource management: 64 thought leaders explore the critical HR issues of today and tomorrow, John Wiley and Sons, New Jersey. Aswathappa, D., 2007, International Human Resource Management, Tata McGraw-Hill Education, Bombay. Cartwright, S.,2005, Human Resource Management,Mittal Publications, Delhi. Kandula, S.R., 2006, Human Resource Management and Organization Development - Practitioner Readings,ICFAI Books, Delhi. Monappa, A., 2004, Liberalisation and human resource management: challenges for the corporations of tomorrow, SAGE, London. Kramar, R., 2007, Australian Human Resources Management: Current issues in management practice, Allen & Unwin, Melbourne. Read More