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Emerging Issues in Human Resource

Submitted To
Mr. Badruzzaman
Controller of Examination
National University
Gazipur, Bangladesh
Submitted By
Rajib umar !aha
N U Exam Roll" ###$%&
N U Reg' No " $()**)
!ession " *##+,*##$
-'B'. /rogram
-0,$*#1" 2iva and /roje3t /aper 4efense

-asters of Business .dministration 5BB.6
.meri3a Bangladesh University 5.BU6
Uttara Campus
4ate" 7*#%*
.s part of -B. program, if is essential to 3omplete a + month internship program '8t is
re9uirement for the 3ourse titled 2iva : /roje3t /aper 4efense -0, ;;;'' '8n
preparing this report 8 have <or=ed for three months in the 8N0ER>.B !?8R0
-.NU>.C0UR8NG @04' to gain pra3ti3al =no<ledge' An the basis of my pra3ti3al
=no<ledge and 3olle3ted information, this report has been prepared' 8 paid my best effort
to prepare this report' .s it is my first large s3ale <or= in the resear3h field, some
limitation exist my report' 4espite the limitations this report <ill 3ome to the immense
benefit to those <ho are dire3tly and indire3tly 3on3erned <ith ?uman Resour3e
-anagement 5?R-6'
0his report <as prepared by using both primary and se3ondary data' 0he data <ere
3olle3ted form se3ondary sour3es through personal intervie< and on the job learning
pro3ess' 0he data <ere analysis by using -i3rosoft <ord and ex3el program' 8 <ant to
de3lare <ith almost faith and integrity that all data and information provided in this
report are here' No fabri3ations in the given data <ere made by me' 0his report <as
prepared <ith an experien3e of + months period 8 do hereby de3lare that the proje3t
titled “Emerging Issues in Human Resource ManagementB !ubmitted to the
Controller of Examination under the 3urri3ulum of -B. program, is my original <or='
.nd this proje3t paper is not submitted to any other institution for any other degree in
any form for the similar purpose' 0herefore the some limitations are existing in this

Rajib umar !aha
N'U' Exam Roll" ###$%&
N'U' Reg' No " $()**)
!ession " *#%%,*#%*
-asters of Business .dministration 5-B.6
Certifcate of Supervisor
0his is to 3ertify that Rajib Kumar Saha, Ro !o"#$$$$%&#, and Registration !o"
'()%%) has <or=ed in the Inter*ab Shirt M*g. +td. 0his <or= area <as the “Emerging
Issues in Human Resource Management,. ?e remained sin3ere and 3ommitted in his
on the job thesis <or=' Under my supervision he tries to gather as mu3h information as
possible to enri3h thesis <or=' !ome limitations su3h as la3= of suffi3ient time,
availability of data, non 3ooperation of the ban=s exe3utives affe3ts the over all
development of the thesis <o=e' 8 3an assure that this thesis <or= really provide a
platform for early learningCs'
8 <ish su33esses in his all future end pores'
--4' 8slam6
5.ssistant /rofessor, 4epartment of -B.6
Table of Contents
Letter of Transmittal
Executive Summar
.ha/ter "$0 Introduction
%'* Ba3=ground of the report
%'+ Abje3tives of the !tudy
%'$ !our3e of 4ata
%'1 -ethodology of the !tudy
%') limitation of the !tudy
.ha/ter "%0 .om/any In*ormation
*'% !ampling 4epartment
*'* /rodu3tion Care
*'+ >a3tory /rofile
*'$ >loor !pa3e
*'1 @ist of 8nstalled -a3hinery and E9uipments
*'& Employee .ge Class
*'( Employee ?ealth7!afety7Dor=ing Environments
*') Commitments
*'E @ead 0ime
*'%# /resent Buyer
*'%% -embership
*'%* 0raining: Expertise
*'%+ Contra3ts
*'%$ Con3lusion
.ha/ter"10 23er3ie4 o* RM5 Sector o* Bangadesh
+'% General information of R-G se3tor in Bangladesh
+'* Bangladesh and international R-G developments
+'+ Bangladesh R-G !e3tor and ->. Fuota
+'$ !DA0 .nalysis of R-G !e3tor
.ha/ter" '0 .haenges *or the RM5 industry
6. 7omesticay originating0
$'% 4ependen3e on imported inputs
$'* /rodu3tivity of <or=ers
$'+ 8nfrastru3ture bottlene3=s
$'$ Restri3tion on foreign dire3t investment and high 3ost of finan3e
B. Internationay originating
$'1 Conse9uen3es of the 9uotas
$'& Comparison of findings of various studies
$'( /erforman3e during the 0ransition
$') 0he Emerging !3enario Early signals and major 3ompetitors'
.ha/ter"80 6ddressing the Im/act o* RM5 9uota :hase"out on Bangadesh
1'% Dhat is 9uotaG
1'* 0he /hase,Aut Fuota /lan
1'+' -ajor 8mpa3t of phase,out Fuota system on Bangladesh
1'$ E3onomi3 8mpa3t of /hase out Fuota on Bangladesh
.ha/ter"&0 Strategies *or :ost"M;6 Era
&'% 8nvestment
&'* Ba3=<ard and for<ard lin=ages
&'+ GAB initiatives
&'$ China in the rear,vie< mirror
&'1 >illing the fabri3 gap in .fri3a
&'& An the radar s3reen of global buyers
&'( Global initiatives
.ha/ter" (0 :re*erentia trade arrangements in South 6sia0 o/tions *or Bangadesh
.ha/ter")0 ;indings *rom the Study
Chapter-9: Recommendations for RMG Industry in Bangladesh
.ha/ter"$#0 .oncusion
List of Foots Notes
Letter of Transmittal
Controller of Examination
National University, Gazipur'
Sub0 !ubmission of internship report
4ear !ir,
8 am pleased to present my internship report on “Emerging Issues in Human Resource
Management., <hi3h is a re9uirement for -'B'. program' 0his internship proje3t <ith
Inter*ab Shirt M*g. +td' <as a great opportunity for me to get hands on experien3e' 8t
also enables me to experien3e the real <orld of produ3tion and human resour3e
management a3tivities'
8 put my out most effort to stru3ture my report a33ording to your guidan3e and tried to
ma=e this report an interesting and meaningfully one' 8 really enjoyed <or=ing on this
report and believe 8 learn a lot'
8 shall remain available for any 3larifi3ation this report'
0han= you very mu3h'
!in3erely yours,
Rajib umar !aha
N'U'Exam Roll" #%%%%*&#
-ajor " ?R-
!ession " *#%%,*#%*
-asters of Business .dministration 5-B.6
8 ta=e this opportunity to express my graduate to those person those <ere instrumental in
<riting this report <hi3h <as s=et3hed base on my learning in B'B'. program'
>irst, 8 express my sin3ere graduate to Md…………, .ssistant /rofessor, and
4epartment of -B.' >or his guidan3e, 3onstant supervise and 3onstru3tive suggestion'
Dithout his help this report might not have been a 3omprehensive one' 8 have bothered
him so many times in 3onne3tion <ith my <or=s, both during her <or=ing and non
<or=ing hours' An3e again 8 <ould li=e to than= for his 3o,operation to prepare this
8 <ould a3=no<ledge the inspiration and 3ooperation of the management of Inter*ab
Shirt M*g.. 0he ex3ellent <or= atmosphere and the ami3able behavior <ere appre3iable'
8 <ould express my humble gratitude to Mr. 6ri* 6bdua Bin 6*tab, B< HR Manager
of Inter*ab Shirt M*g. Dho <as =ind enough to permit me to 3ontinue my internship in
his organizationG Dithout his 3ooperation it <ould have been diffi3ult to 3omplete this
8 <ould li=e to than= Mr. Rahat Khan, -6sst. Manager= Inter*ab Shirt M*g. +td.
Dithout his help this report might not have been a 3omprehensive one' 8 have bothered
her so many times in 3onne3tion <ith my <or=s, both during her <or=ing and non
<or=ing hours' An3e again 8 <ould li=e to than= for his 3o,operation to prepare this
report'8 <ould also li=e to than= all employee of Inter*ab Shirt M*g. *or their ni3e Co,

>inally 8 <ould li=e to apologies for the mista=es and in3onsisten3e, if anything is made
be3ause prepared this report <ith a beginnerCs experien3e'
Executive Summar
0he traditional fun3tions of ?R- no< need to be strategi3ally dire3ted to<ards
developing and sustaining organizational 3apabilities, through a3tivities that overlap <ith
traditional business fun3tions su3h as finan3e, mar=eting, and non,traditional a3tivities,
su3h as =no<ledge management' ?uman Resour3e 8nformation !ystem has great
signifi3an3e in every se3tor' 8t 3an play a virtual role and help the 3ommuni3ations
pro3ess in the organization' -ost importantly, organizations 3an hire and retain the top
performers, improve produ3tivity and enhan3e job satisfa3tion of the employees'
?R- has the responsibility to maximize effi3ien3y and profit, but in the emerging
s3enario, the role of ?R manager is 3hanging rapidly due to 3hanges in government
poli3ies, unions, labour legislations and te3hnology' 0he trends have ta=en pla3e in the
organization, human resour3e planning, job design, motivation, re3ruitment, s=ill
development and employee relations' 0he 3hallenges 3an be fa3ed by ?R- effe3tively, if
proper strategies are implemented' ?en3e, the role of ?R- <ill be more signifi3ant in
future due to the emerging s3enario'
C!apter "#$ %ntroduction
$.$. Introduction
The management of ?uman Resour3es has no< assumed strategi3 importan3e in the
a3hievement of organizational gro<th and ex3ellen3e' .s globalization advan3es and <e
move into the information age, organizations need to adapt to the 3hanges in te3hnology
and the 3hanging issues in management of people'
!ome 3riti3al issues have 3learly emerged , planning, a39uisition and development of
human resour3es, responding to the demands of the <or= pla3e and, above all, evolving a
strategy of dealing <ith industrial 3onfli3t' .s a management pra3ti3e, it 3overs all the
3onventional areas of personnel management and industrial relations, as <ell as the
relatively ne< areas su3h as 3ommuni3ation, 3ounseling, training and development, and
job enri3hment' .n attempt has been made in this paper to point out the experien3es on
the emerging issues in managing human resour3es'
0oday, 3ompetitive advantage is based on the su33essful appli3ation of =no<ledge'
-anaging people, as an ?R- fun3tion, has broadened, to in3lude managing
organizational 3apabilities, relationships, learning and =no<ledge' 0hese fun3tions
in3lude four generi3 areas, i'e',
5i6 Roles,
#&# %ntroduction
#&' (ackground of t!e report&
#&) *b+ectives of t!e Stud&
#&, Source of Data
#&- .et!odolog of t!e Stud&
#&/ limitation of t!e Stud&
5ii6 Relationships,
5iii6 !trategi3 fo3us, and
5iv6 @earning fo3us'
0hese areas are different from ea3h of the e3onomy fun3tions, li=e traditional,
transitional and =no<ledge'
• 8nnovate ?R-
• Crafting 3reative business strategies
• Arganizational restru3turing
• Creating so3ial net<or=s
• 8nvo=ing ne< 3hallenges
• !hifting approa3h
• Enabling 3ompanies to go global
• @eading to superior performan3e
• Creating =no<ledge <or= for3e
• ?uman Resour3e 8nformation !ystem 5?Rl!6 for Effe3tive ?R-

8n todayIs 3ompetitive business environment, the 3utting edge for any organization is
given by the speed <ith <hi3h it ta=es de3isions to respond to 3hanges in the
environment, internal or external' . <ell,designed 3omputerized ?R8! alone 3an
provide the information and analysis <ithin the shortest possible time' No<,a,days,
many organizations are using the 3omputerized ?R8!' 0hey =eep re3ords in a 3ompa3t
manner, enabling a33ess and retrieval, in a flexible <ay'
%' Benefits of ?R8!
*' !implified data entry
+' @ess paper<or=
$' >ast and a33urate
1' Better use of feedba3=
&' 8n3reased effi3ien3y
(' 8mproved tools for data analysis

?R8! has great signifi3an3e in every se3tor and it 3an play a vital role' 8t helps to have a
better 3ommuni3ation pro3ess in the organization and <e 3an offer better servi3e <ith
less effort at redu3ed 3ost'
-ost importantly, organizations 3an hire and retain top performers, improve produ3tivity
and enhan3e job satisfa3tion of the employees'
$.%. Bac> ground o* the re/ort0
.fter 3ompleting one hundred and t<enty 3redits 5%*#6 at National University under the
Ba3helor of Business .dministration Curri3ulum, 8 <as pla3ed by the Business
4epartment at /ashmina !<eater @td' as part of the 8nternship /rogram re9uirement'
0his report is prepared for the internship program 3onsisting of a major in depth study of
the JEnd of R-G Fuotas, dilemma and vision in the Garments !e3tor" . Case !tudy on
Bangladesh'B /ra3ti3al =no<ledge is fundamental for the appli3ation of theoreti3al
intelligen3e' Bearing this in mind and internship program <as being in3luded in the BB.
3urri3ulum' 0he goal of this analysis is to expose the student in the organizational <or=
situation and also to provide an opportunity for applying 3lassroom learning in pra3ti3e'
0here are some differen3e bet<een theories and pra3ti3e' 8nternship program is a system
by <hi3h <e 3an a33ustom ourselves <ith the pra3ti3al situation through the appli3ation
of theoreti3al =no<ledge into real lifeK the gap bet<een these t<o 3an be bridged up
through this internship pro3edure' .s an indispensable part of BB. 8 <as pla3ed in the
entire 4epartment of /ashmina !<eater @td'
$.1. 2bjecti3es o* the Study0
0he first obje3tive of <riting the report is fulfilling the re9uirements of the BB.
program' 8n this report, <e have attempted to give on overvie< of the Garments !e3tor
after ending Fuota system, follo<ing are the main obje3tives
 5enera objecti3e0
0he general obje3tive of this report is to express the pra3ti3al experien3e by <or=ing in a
3ompany and to lin= the theoreti3al =no<ledge <ith its appli3ation in the real life
0he report also aims at a39uiring first hand =no<ledge of R-G Fuotas, dilemma and
vision in the Garments !e3tor as <ell to suggest <ays and means to improve the 3urrent
 S/eci*ic objecti3e0
• .nalyze the Garments !e3tor a3tivities'
• 0o observe the 9uantity of order pla3ement after ending 9uota system in garments'
• 0o identify the up3oming threats and opportunities'
• 0o identify the types 9uality improving plan'
• >ind Garments !trategies after ending R-G Fuotas'
$.'. Sources o* 7ata
8 have 3olle3ted primary and se3ondary data for my resear3h paper as mentioned belo<"
 :rimary source0
• 0he primary data <as gathered through informally dis3ussed <ith fa3tory personnelCs
and ma=ing observations during the period of internship et3'
• Expert opinion'
• 8ntervie< <ith the exe3utives and offi3ers of /ashmina !<eater @td'
 Secondary sources0
!ome se3ondary data <as 3olle3ted to ma=e the report more 3on3rete'
0his are,
• /ublish do3ument
• Affi3ial file
• Relevant boo=s, internet, journals et3'
• BG-E. .nnual report
• D0A report on Fuota system
• 2arious finan3ial journal : ne<s paper
• 2arious R-G Fuota related arti3le
$.8.Methodoogy o* the Study0
$.&. +imitations o* the study0
!ome limitation or barriers <are fa3ed <hile 3ondu3ting the study' 0he limitations <hi3h
8 fa3ed during my study are as follo<"
 0he major limitation of our resear3h <or= is the number of samples sele3ted <as
only &#' >or more 3omprehensive findings the sample size need to be bigger'

 .nother limitation is that the root level Garments <or=ers in the apparel se3tor in
Bangladesh are introvert in nature' 0hey do not <ant to spea= freely and mostly
unedu3ated' 0hey <ere also not exposed to a better Environment and they do not
have good ideas of the standards of labor pra3ti3e'
 8f it <ere possible to provide a 3ontrol environment for the same group of <or=er
<e 3ould have a 3omparative study of ho< mu3h exa3tly a better environment
3ontributes to the labor produ3tivity' Aur study la3=s this 3riterion'
 0he time limitation of the resear3h is also is also a major limitation simply
be3ause to get more 3omprehensive data re9uires more time'

 .33essibility to Garments fa3tories on a random basis is another limitation' -ost
of the apparel fa3tories in Bangladesh do not <el3ome outsiders to intervie< their
labor for3es'
 0here is no previous study and <ritten information on su3h topi3 <as available'
 Getting relevant papers and do3uments <ere stri3tly prohibited'
 @atest information is <as not available
 0o prote3t the organizational 3onfiden3e some parts of the report are not in depth'
 0he time <as not suffi3ient for su3h a study'
 Dithout holyday it <as diffi3ult to ma=e time to visit University supervisor'

6s/ects o* HRM
?uman Resour3e /lanning, Re3ruitment, !ele3tion, /la3ement, 8ndu3tions, 0ransfer :
/lanning, Lob .nalysis, /erforman3e .ppraisal, ?R .udit, 0otal Fuality -anagement,
Fuality of Dor=ing Environment, Fuality Cy3le'

?R- in the /resent !3enario
@o< motivation or mounting frustration
/romotions are 3onsolations for transfers
Cadre 3onfli3t
Re<ard and punishment system
4evelopment of strong training system

?uman Relations is 3alled ?R also =no<n as ?uman Resour3es' -anaging ?R is 3alled
?uman Resour3es -anagement 5?R-6' 4eveloping ?R is 3alled ?R4' ?R- is a
philosophy, <hile ?R4 in3ludes the a3tivities and pro3esses underta=en to promote the
intelle3tual, moral, psy3hologi3al, 3ultural, so3ial and e3onomi3 development of the
individuals in an organization, in order to help them to a3hieve higher human potential as
a resour3e for the 3ommunity' 8t is a 3ontinuous pro3ess by <hi3h the employees are
assisted in a planned <ay to develop 3apabilities'

Trends in HRM
.n organizationIs labour for3e 3omes from its external labour mar=et , individuals <ho
are a3tively see=ing employment' ?R- helps organizations find and =eep the best
possible fit bet<een their so3ial system and te3hni3al system' Arganizations need
employees <ith broad s=ills and strong motivation' Re3ruiting and sele3tion de3isions
are espe3ially important for organizations that rely on =no<ledge <or=ers' EmployeesI
responsibility and authority are given to ma=e de3isions regarding all aspe3ts of produ3t
development or 3ustomer servi3e' ?R professionals 3an support organizational strategies
for 9uality gro<th and effi3ien3y'

Arganizations <ith international operations hire employees in foreign 3ountries, <here
they operate, as they need =no<ledge of differen3es in 3ulture and business pra3ti3es'

No<,a,days, information system has be3ome a tool for more ?R professionals, and
often, these systems are provided through the 8nternet' 0he <idespread usage of the
8nternet also in3ludes ?R- appli3ations' Arganizations sear3h for talents, and s3reening
3andidates online' Employees may re3eive training online' 0he employment relationship
ta=es the form of a psy3hologi3al 3ontra3t that des3ribes <hat employers and employees
expe3t from the employment relationship' 0he employees are loo=ing for flexible <or=
s3hedules, 3omfortable <or=ing 3onditions, greater autonomy, opportunities for training
and development, and performan3e,related finan3ial in3entives' >or ?R-, the 3hanges
re9uire planning for flexible staffing levels' Arganizations see= flexibility in staffing
levels through alternatives to the employment relationship' 0hey may use outsour3ing as
<ell as temporary and 3ontra3t <or=ers'

Strategic HRM
8t is that set of managerial de3isions and a3tions that determine the long term
performan3e of a 3orporation' 8t in3ludes environmental s3anning, strategy formulation,
implementation, evaluation and 3ontrol' 0he biggest benefit that strategi3 ?R- offers
is 3ompetitive advantage by building 3riti3al 3apabilities of ?R in an organization'
!trategi3 ?R- fa3ilitates in strategy formulation by ma=ing an organizationIs !DA0
analysis, and also in poli3y implementation by providing 3ompetent human resour3es
and 3ompetitive intelligen3e'

HRM in +:5 -+iberaization, :ri3atization ? 5obaization= Era
De 3an divide ?R- into seven se3tions, i'e',
5i6 ?R- , Environment and !trategies
5ii6 ?R- , .39uisition and .bsorption
5iii6 4evelopment
5iv6 -aintenan3e and Retention
5v6 Control
5vi6 -is3ellaneous
5vii6 ?R- /ra3ti3es

?R- Environment and !trategies in3ludes obje3tives, s3ope and fun3tions, evolution
and development of ?R-'
.39uisition and .bsorption in3ludes ?R planning, job analysis and design, re3ruitment,
sele3tion, pla3ement, indu3tion and so3ialisation'
4evelopment se3tion in3ludes 3areer planning and development, employee training,
exe3utive development, organization development and internal mobility and separation'

-aintenan3e and Retention se3tion in3ludes job evaluation, <age and salary
administration, in3entives and benefits, motivation, employee empo<erment, <or=ers
parti3ipation in management, employee health and safety, so3ial se3urity, employee
dis3ipline, employee grievan3e, industrial relations, industrial disputes, trade unions,
3olle3tive bargaining, performan3e : potential appraisal'

Control se3tion in3ludes personnel resear3h and audit, human resour3e audit and human
resour3e information system'
-is3ellaneous se3tion in3ludes ?R- in a 3hanging environment, 8?R-, ?R- in virtual
0he final se3tion is ?R- /ra3ti3es in various organization levels'

.or/orate Strategy in Human Resource Management
0oday, there is an urgent need to lin= human resour3e management, inextri3able, to the
business of the organization, at both the strategi3 and pra3ti3al levels' 0he ?R manager
has the tas= of being on a 3onstant loo=,out for the right 3hoi3e of employees, fine,
tuning the job mix and 3ompensation pa3=age to benefit the individual and the
organization, devising a flat organization stru3ture and organizing training programmes
for 3ontinuing the edu3ation at different levels in the organization'

Best :ractices in HRM
. best pra3ti3e in ?R- has invo=ed a great deal of interest among ?R professionals'
Companies that are 3urrently under,performing in the ?R area 3an learn and adopt some
of the best pra3ti3es from organizations that have a39uired some mastery over the good
pra3ti3es in ?R' 8n the era of liberalization, the 3ompetitive s3enario in the business
environment has 3hanged a lot' Conse9uently, ?R pra3ti3es have also 3hanged
phenomenally' 0he performan3e of the employees determines the failure or the su33ess
of an organization' 0here are four stages of integration bet<een ?R fun3tions and the
strategi3 management fun3tions" ,
%' .dministrative @in=age
*' Ane,<ay @in=age
+' 0<o,<ay @in=age
$' 8ntegrative @in=age

?R experts are having the opinion that, though Mbest pra3ti3es in ?R-M 3annot be
uniformly applied to all the organizations, they have a =ind of uniform appli3ability in
some fun3tional areas, <here psy3hologi3al fa3tors play an important role' !u3h areas
are broadly 3lassified as follo<s" ,

• :rocess o* seecting and recruiting the best taent.
.llotment of <or= and responsibility, as <ould be appropriate to the employeeCs natural
talent and s=ill' !ystem of initial training for ne< employees and spe3ialized training for
the experien3ed and s=illed employees'
8n3ul3ation of a sense of team spirit'

%' !ystem of healthy and transparent 3ommuni3ation, intra and extra 3ompany'
*' !ystem of periodi3 appraisal of the performan3e of employees'
+' !uitable poli3y for 3areer advan3ement of employees'
$' !uitable poli3y for pla3ement and transfer of employees'
1' !uitable poli3y of re3ognizing and re<arding merit'
&' /rovision of se3urity in servi3e, to the deserving employees'
HRM in .ross".utura .onte@t
-ulti,3ultural <or=for3e 3ongregations have be3ome todayIs <or=pla3e realities' 0he
3ross,border mar=et terrorism spared by -NCs evo=ed 3ounter,insurgen3y and strategi3
<arfare from domesti3 businesses' /artnering people in this ra3e is vital for su33ess in
the mar=et pla3e' Dor=pla3es have in3reasingly symbolized multi,3ultural villages,
resulting in a gro<ing need for 3ross,3ultural intelligen3e' 0he future 3ompetitiveness of
3orporations <ill depend on their ability to attra3t and manage diverse talents effe3tively'
Cross,3ultural training <ill give managers on international assignments the 3ultural
understanding essential to a33omplish their tas=s' Cross,3ultural differen3es are the 3ause
of failed negotiations and intera3tions, resulting in losses to the firms' 0he strategi3 role
of ?R- in strengthening and sustaining 3orporate gro<th has assumed paramount
signifi3an3e, the <orld over'

Em/oyee Engagement
/rodu3ts and pro3ess alone 3anIt help organizations to sustain loyal 3ustomers' 0hey also
need highly,motivated, dedi3ated and involved employees <ho are very passionate about
their <or= and their organizationK in short, they need Mengaged employeesM' But,
nurturing engaged employees re9uires a lot of effort and s=ill on the part of ?R
managers and 3alls for a different ?R philosophy in the organization'
De need employee engagement to serve as a 3ore 3ompeten3y of an organization that
<ould provide sustainable 3ompetitive advantage' De =no< employee engagement
to<ards their <or=, thro< fe< test MsymptomsM, i'e', feeling of 3reating value, having a
dire3tion to follo<, an air of trust, 3reating engaged employees through top management
endorsement, a <or= environment to 3herish, innovative leadership and 3lear gro<th
traje3tories, Ione step up from 3ommitmentI' Employee engagement is the ne< buzz<ord'
. su33essful business is dire3tly lin=ed to the 3ommitment of its employees' Employee
engagement ensures the su33essful exe3ution of any business strategy'

B:2 Scenario0 HR Issues ? .haenges
?uman resour3es are the lifeline of B/A 3ompanies' 0he majority of the <or=for3es in
the B/A industry are young, literate and dynami3' Autsour3ing ?R fun3tions <ill be the
next big leap in 8ndiaIs B/A arena' 0he ?R outsour3ing segment is still in its nas3ent
stage in the B/A 8ndustry'
HR ;unction ? :er*ormance Management
0he 3hallenge before human resour3e professionals today is to 3reate an enabling
organizational 3limate for the employees, >or this, they need to examine relevant issues
su3h as training and development, performan3e appraisal and 3areer planning in the
organization' !ele3tion and re3ruitment of personnel is an important responsibility of the
human resour3e department' 0he re3ruitment poli3y provides 3ompetitive remuneration
as per industry norms, maintains high standards for sele3tion of re3ruits, and en3ourages
lateral indu3tion to infuse fresh ideas and ne< s=ills in the organization'
Trends in Recruitment
Re3ruitment is in3reasingly be3oming a t<o,<ay pro3ess, as a result of both employers
and employees having higher expe3tations from one another' 0he first trend is using the
resume database for re3ruitmentK the other trend gaining prominen3e is the re3ruitment of
=ey personnel from 3ompetitors, <hi3h is 3alled Mpoa3hingM'
.fter su33essful sele3tion and re3ruitment of manpo<er, it is essential that all employees
undergo spe3ifi3 training programmes that help in maximizing their potential' 0odayIs
need is to pla3e training and development at the heart of a business strategy' 0raining
should be a 3ontinuous pro3ess =eeping in vie< the 3hanging mar=et demands, the
environment and the organizationsI o<n 3ulture' 0he role of a trainer, on the other hand,
should be that of a mentor, fa3ilitator and 3hange agent'
6ction :an *or Initiating Training ? 7e3eo/ment
• .ssess the training needs of individuals <ho <ill be undergoing training, to avoid
a mismat3h <ith training programme'
• /rovide a 9uestionnaire to help the parti3ipants analyze their o<n 3apabilities'
0his in3ludes their =no<ledge, s=ill, aptitude and attitude'
• Bring out the latent potential in people and 3hannelize it to<ards the 3ommon
goal of the organization'
• 4esign training programmes'
• Ensure that the programme 3overs behavioral and 3ognitive leaning, fo3uses on
up gradation of s=ills and en3ourages group parti3ipation'
• 8n3lude the real <orld programmes to solve the real life problems'

Roe o* HR Manager in Em/oyee Training
• 0o serve as an internal 3onsultant'
• 0o identify programmes for individuals in tune <ith their individual s=ills'
• 0o plan a judi3ious mix of internal and external training programmes'
• 0o follo< up a3tivities to ensure that ne< s=ills learned, are applied in the
• 0o monitor the performan3e appraisal of employees, to as3ertain the impa3t of the
training programmes and identify the future training needs'

Essentias o* :er*ormance 6//raisa
6ignment, Standards, .ommitment
/erforman3e appraisal is a pro3ess of assessing the 3apabilities, both =no<n and hidden,
of employees, so that their strengths and <ea=nesses 3an be determined for in3reasing
the organizational effe3tiveness' 0he appraisal is for identifying, <hether the employee
is" ,
5i6 4ue for a promotion or re<ard or an in3rease in salary'
5ii6 Capable of handling additional responsibilities or needs future training and
development to upgrade their s=ills'
5iii6 8n3apable of meeting the re9uirement and is, thus, dispensable'
+&#N feedba3= appraisal system is the formal performan3e appraisal system' 8n this
system, the employee re3eives feedba3= from his manager, supervisor, peers and others,
that he 3omes in 3onta3t <ith' 8t helps in in3reasing employee parti3ipation, ma=es the
person feel more 3ommitted, in3reases his sense of o<nership for 3ompany poli3ies,
and allo<s alignment of personal expe3tations <ith organizational goals' 8t helps in
assessing the employee strengths and <ea=nesses'

6ction :an *or an E**ecti3e :er*ormance 6//raisa
• 0he ?R manager should explain the basi3 purpose of the exer3ise'
• >ormal 3ommuni3ation <or=shops should be organized'
• ?R department should =eep the 3onfidentiality of the appraisal reportK t<o,<ay
feed,ba3= should be 3reated, the exer3ise should be presented as a forum'
• ?R department should ma=e a time,table for the appraisal pro3ess and revie<
dis3ussion in forums'
• ?R department should <or= out the methods, in3entives and department,<ise

:er*ormance ? Re4ards
8t is a positive a3hievement 3y3leK it serves as a po<erful motivational for3e for future
gro<th' !u33ess 3ompensation refers to a salary 3omponent, various fringe benefits,
performan3e,lin=ed bonuses, sto3= options, et3' Compensation pa3=age emphasizes on
performan3e, lin=ed 3ompensation, sharp in3rease in per=s and allo<an3es, re3ognition
of spe3ial s=ills and abilities of individuals, in3rease in senior management remuneration,
and salary in3reases for junior managers'
HRM in %#%#
No<, <e identify and dis3uss about five issues <hi3h are expe3ted to affe3t the
organizational ?R in the future" ,
5i6 0he 3orporations of tomorro<,
5ii6 8nformation age,
5iii6 2irtual 3orporation,
5iv6 4iversity, and
5v6 !o3ial responsibility'
.or/oration o* Tomorro4
8n future, there is a t<o,fold effe3t on 8ndian 8ndustries, i'e',
5i6 Generation of employment, and
5ii6 8ndustrial restru3turing
De assume that in the future <or=pla3e, <hi3h may 3ome true by *#*#" ,
• . majority of people <orld<ide <ill be 3onne3ted through the 80 infrastru3ture'
• Conne3tivity is the ne< frontier on the information high<ay to 3onne3t <ith one
• 0here are various fa3tors on <hi3h the gro<th and expansion of 3onne3tive
te3hnology <ill depend'
• 0he basi3 organizing unit in the <or=pla3e <ill be one individual engaging in
business through 3onne3tive te3hnology'
• . learning 3ulture <ill be festered by the te3hnologies that <ill serve, entertain,
and help people do their <or=' 8t <ill be basi3 <or=pla3e s=ill'
• /o<er in the organization of *#*# <ill be in flat stru3ture'
• Culture and language <ill still move bet<een the poles of traditionalism and

In*ormation 6ge
8nformation age has heralded a ne< <ay of doing business' 80 has the po<er to 3hange
the most <ell,entren3hed business paradigms' 8t has the po<er to lin= and 3onne3t
people, and enable the ex3hange of produ3ts, servi3es and 3apital, in an entirely different
manner than in the past' 80 has in3reased the effi3ien3y of the human resour3e fun3tions
and redu3ed the burden of administrative <or= in the ?R department, at the same time,
helping to in3rease produ3tivity'

Airtua .or/orations
. virtual 3ompany is usually a highly net<or=ed organization that extensively 3ontra3ts
out a3tivities that <ere on3e performed in,house, allo<ing both speed and flexibility' 0he
=ey to su33ess in a virtual 3orporation is 3onne3tivity, i'e', the ability to net<or= <ith a
large number of independent 3ompanies'
!o3ial Responsibility
Change in te3hnology results in a 3hange in the stru3ture, design and environment of an
organization' 8t has four stages" ,
5i6 a39uisition of te3hnology,
5ii6 adaptation of te3hnology,
5iii6 utilization of te3hnology, and
5iv6 improvement and development of te3hnology'

Arganizations of the future <ill operate in a <or=spa3e, <hi3h is li=ely to be mu3h more
broadly defined, than it is today' Conne3tivity <ithin and outside the organizations, <ill
3reate a <orld virtual reality organization'
ental problems fall into t<o broad 3ategories, i'e',
5i6 /roblems that arise out of poverty and inade9uate development, and
5ii6 /roblems that arise out of the pro3ess of development 5threat of earth9ua=e,
deforestation, pollution of ground <ater6'
0he traditional fun3tions of ?R- no< need to be strategi3ally dire3ted to<ards
developing and sustaining organizational 3apabilities, through a3tivities that overlap <ith
traditional business fun3tions su3h as finan3e, mar=eting, and non,traditional a3tivities,
su3h as =no<ledge management' ?uman Resour3e 8nformation !ystem has great
signifi3an3e in every se3tor' 8t 3an play a virtual role and help the 3ommuni3ations
pro3ess in the organization' -ost importantly, organizations 3an hire and retain the top
performers, improve produ3tivity and enhan3e job satisfa3tion of the employees'
?R- has the responsibility to maximize effi3ien3y and profit, but in the emerging
s3enario, the role of ?R manager is 3hanging rapidly due to 3hanges in government
poli3ies, unions, labour legislations and te3hnology' 0he trends have ta=en pla3e in the
organization, human resour3e planning, job design, and motivation, re3ruitment, and s=ill
development and employee relations' 0he 3hallenges 3an be fa3ed by ?R- effe3tively, if
proper strategies are implemented' ?en3e, the role of ?R- <ill be more signifi3ant in
future due to the emerging s3enario'