Assignment

On

“ “RECENT ADVANCED CONCEOTS AND CONTEMPORARY TRENTS IN HUMAN

RESOURCE MANAGEMENT”

MASTERS OF BUSINESS ADMINISTRATION

Session 2019-2020

Submitted to:
Submitted By:
Dr. Sandeep Kumar Nikhil Garg
Assistant Professor MBA 1st Year
Department of Management Roll No.- 190196
Studies,
PIET

PANIPAT INSTITUTE OF ENGINEERING & TECHNOLOGY, SAMALKHA

AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA

CURRENT TRENDS IN HUMAN RESOURCE MANAGEMENT
The Human resource industry is undergoing a major innovative change from last five years. The
way of working and the technical data have collaborated to shape the human resources of an
organization. 

TALENT MANAGEMENT:

Talent management refers to the skills of attracting highly skilled workers, of integrating new
workers, and developing and retaining current workers to meet current and future business
objectives. Talent management in this context doesn't refer to the management of entertainers.
Companies engaging in a talent management strategy shift the responsibility of employees from
the human resources department to all managers throughout the organization . The process of
attracting and retaining profitable employees, as it is increasingly more competitive between
firms and of strategic importance, has come to be known as "the war for talent." Talent
management is also known as HCM (Human Capital Management).

EFFECTIVE MEASURES TO HIRE AND RETAIN TALENT:

Some effective measures for HR to hire and retain talent are:

 Hire right people: Hiring the right people for the right job is beneficial to the
organization as well as new hires.
 Keep up the promises: When a company commits to one candidate, it has to live up to
their promise and vice versa.
 Recognition of Merit: Timely motivation, rewards and appreciation will keep the
employees' spirit alive and encourage them to perform better.
 Provide Learning Opportunities: Regular learning opportunities, on and off the job
training sessions, management development programs and distance learning programs should
be conducted for employees.
 Time to de-stress: All work and no play makes Jack a dull boy. Similarly, an increase in
work responsibilities and pressure can lower one's productivity. Regular entertainment
programs, fun activities, etc, will leave employees refreshed and increased energy.
 E HRM:

E-HRM has been defined as “a way of implementing HR strategies, policies and practices in
organizations through a conscious and directed support of and/or with the full use of web-
technology-based channels” or more recently, and more broadly, as “the planning,
implementation, and application of information systems for both networking and supporting
actors in their shared performing of HR activities”.

TYPES :

There are three types of E-HRM.

1. Operational.

2. Relational.

3. Transformational.

These are described respectively as:

1. Operational

Operational E-HRM is concerned with administrative functions – payroll and employee personal
data, for example.

2. Relational

Relational E-HRM is concerned with supporting business processes by means of training,

recruitment, performance management and so forth.

3. Transformational

Transformational E-HRM is concerned with strategic HR activities such as knowledge

management, strategic re-orientation. An organization may choose to pursue E-HRM policies
from any number of these tiers to achieve their HR goals.
 GOALS:

Researchers suggest three goals of e-HRM are: reducing cost, improving HR services, and
improving strategic orientation. HR managers can make a human

resource plan more quickly and accurately, make decisions faster, define jobs more clearly and
enhance communication with the employees and the external community. E-HRM is seen as
offering the potential to improve services to HR department clients (both employees and
management), improve efficiency and cost-effectiveness within the HR department, and allow
HR to become a strategic partner in achieving organizational goals. And finally, e-HRM creates
standardization, and with standardized procedures, this can ensure that an organization remains
compliant with HR requirements, thus also ensuring more precise decision-making. E-HRM has
increased efficiency and helped businesses reduce their HR staff by reducing costs and
increasing the overall speed of different processes.

ROLE:

Past research has suggested that e-HRM can increase the efficiency of HR activities, improve
HR service delivery and transform the role of the HR function into one that is more strategic. If
this is the case, then the use of e-HRM may allow the HR function to increase its value and
contribute to the competitive advantage of the firm. The more extensive deployment of
technology and systems in the HR domain could be an additional source of rents. However, we
might expect that technological and system assets would have lower barriers to limit ability than,
say, know-how advantages embedded in socially complex routines.

ADVANTAGES :

E-HRM is not suitable for organizations where employees are not prepared to accept or use it.
Major benefits/advantages of E-HRM are as follows:

 Improving quality services.

 Ensuring efficient services at an amazing speed.

 Facilitating routine tasks like record keeping, maintaining the portfolio, collecting and
storing relevant information regarding the human resource.

 Helping the reduction of costly time and labor.

 Improving accuracy and reducing human bias.

DISADVANTANGES:

Demerits/Limitations of E-HRM are listed below:

 It involves a high cost to maintain and implement E-HRM.

 It is difficult to maintain the confidentiality of the input data.

 Electronic media are vulnerable, which may be attacked by viruses from anywhere on the
Internet. Contracting a virus can disable your HR management system severely enough to render
it unusable for an indeterminate time. E-HRM is subject to corruption, hacking or data losses.

 Computers and their associated programs are only as effective as their human users, data
entry errors can and do occur. In HR management systems, such errors can have grave
consequences.

 Organizations need to to-invest more on training and development before adopting e- HRM.

HIGH PERFORMANCE WORK SYSTEM:

HPWS systems emphasize employee involvement and reflect a commitment to creating an

organizational culture based upon commitment rather than control. At the same time, the cultures
of high performance organizations emphasize the pursuit of excellence and expect employees to
be well-qualified, highly competent, and constantly engaged in improving the organization.
Management experts have extensively researched HPWS and have identified common
management practices that create competitive advantage and enhance organizational
performance. The following is a summary of seven human resource practices for producing
higher profits through engaging employees as full owners and partners in an organization’s
success.

1. Ensuring Employee Security

Despite the trend of many businesses to engage in downsizing and hiring part-time and contract
employees to avoid creating obligations to employees, the evidence has shown that organizations
who engage in these practices have rarely created new wealth or improved the long-term bottom
line of their organizations. HPWS systems advocate creating high-trust partnerships with
employees that build commitment and promote extra-mile and extra-role behavior that are
critical for success in the modern organization.

2. Selective Hiring
Carefully evaluating new hires requires that organizations are precise in identifying the critical
skills and attributes of their employees in the first place. Hiring to fit requirements of the job
makes more sense than simply hiring candidates with the best academic pedigrees or who look
the best on paper. Identifying attributes like character, respect for others, and a service
orientation that do not change through training actually improve employee retention and long-
term fit.

3. Decentralized Decision-Making
Organizations that establish HPWS cultures recognize the importance of clearly identifying goals
and objectives. In implementing those goals, HPWS companies delegate decision-making
throughout the organization and empower their employees to deliver outstanding service to
customers and achieve optimal organization results. Incorporating well-trained and supported
self-managed teams that enjoy autonomy and broad discretion in making decisions demonstrates
the high trust in employees that characterizes HPWS.
4. High Results-Based Compensation
Developing a compensation system that rewards employees at all levels when the organization
succeeds promotes commitment to shared goals and increases employee awareness of their roles
in contributing to profitability. Compensating employees contingent upon organization
performance is most effectively adopted as part of a high-performance culture that incorporates
profit sharing throughout an organization. The logic of contingent compensation is implicitly
equitable and fair and confirms to employees that they will share in the fruits of their work.
Group-based profit sharing or gain sharing also creates a social system of accountability to the
organization and to other team members.

5. Training by Commitment
Virtually every HPWS organization emphasizes training by commitment as contrasted with
training focused on control-oriented management systems. Training employees in how to resolve
problems, to take responsibility for quality, and to take the initiative in suggesting changes in
organization work methods demonstrates trust in the quality of employees hired and an
acknowledgement of employee buy-in to a results-based compensation program. In contrast with
many organizations that deem training to be a frill that can be eliminated, HPWS systems
carefully determine the type of training that is most needed to achieve organizational goals and
then invest heavily on helping employees to optimize their ability to succeed. Research evidence
suggests that engaging employees in work-related team training increases their ownership and
commitment and their ability to contribute to the achievement of critical organizational goals.

6. Reduced Status Barriers

A basic assumption of an HPWS is that good ideas and organizational improvements can come
from employees at all levels of the organization. Wage inequality and the use of symbols like
language, dress, physical space, and benefits can send a message to employees that an
organization views status hierarchically, rather than treating every employee as if he or she is
both valued and valuable. Stephen R. Covey repeatedly noted that great organizations seek to
build high trust cultures by nurturing and developing people, rather than by controlling them.
Treating employees like valued partners by reducing status barriers, by empowering employees,
and by treating employees with dignity and respect builds trust and commitment.

7. Sharing Key Information

The sharing of financial, strategic, and performance information conveys to employees that they
are trusted partners who can utilize this important information to assist their organization to
achieve its goals. Highly motivated and well-trained employees need information to be able to
contribute to their organization’s success. Sharing information and providing the training in how
to use it to achieve goals makes implicit sense, yet many traditional organizations refuse to do
either and pay the price in lost opportunities and reduced trust.

HR ANALYTICS:

“HR analytics is a methodology for creating insights on how investments in human capital
assets contribute to the success of four principal outcomes: (a) generating revenue, (b)
minimizing expenses, (c) mitigating risks, and (d) executing strategic plans. This is done by
applying statistical methods to integrated HR, talent management, financial, and operational
data,” says Collins in an exclusive discussion with HR Technologist.

Common metrics measured by HR analytics

Here are some common metrics tracked by HR analytics:

1.Revenue per employee: Obtained by dividing a company’s revenue by the total number

of employees in the company. This indicates the average revenue each employee generates. It is
a measure of how efficient an organization is at enabling revenue generation through employees.

2. Offer acceptance rate: The number of accepted formal job offers (not verbal) divided by
the total number of job offers given in a certain period. A higher rate (above 85%) indicates a
good ratio. If it is lower, this data can be used to redefine the company’s talent acquisition
strategy.
3. Training expenses per employee: Obtained by dividing the total training expense by
the total number of employees who received training. The value of this expense can be
determined from measuring the training efficiency. Poor efficiency may lead you to re-evaluate
the training expense per employee.

4. Training efficiency: Obtained from the analysis of multiple data points, such as

performance improvement, test scores, and upward transition in employees’ roles in the
organization after training. Measuring training efficiency can be crucial to evaluate the
effectiveness of a training program.

5. Voluntary turnover rate: Voluntary turnover occurs when employees voluntarily

choose to leave their jobs. It is calculated by dividing the number of employees who left
voluntarily by the total number of employees in the organization. This metric can lead to the
identification of gaps in the employee experience that are leading to voluntary attrition.

What Data Does an HR Analytics Tool Need?

Common data sources HR analytics solutions
I. Internal data

Internal data specifically refers to data obtained from the HR department of an organization. The
core HR system contains several data points that can be used for an HR analytics tool. Some of
the metrics that an HRIS system contains includes:

1.Employeetenure
2. Employee compensation
3. Employee training records
4. Performance appraisal data
5. Reporting structure
6. Details on high-value, high-potential employees
7. Details on any disciplinary action taken against an employee
The only challenge here is that sometimes, this data is disconnected and so may not serve as a
reliable measure. This is where the data scientist can play a meaningful role. They can organize
this scattered data and create buckets of relevant data points, which can then be used for the
analytics tool.

II. External data

External data is obtained by establishing working relationships with other departments of the
organization. Data from outside the organization is also essential, as it offers a global perspective
that working with data from within the organization cannot.
1. Financial data: Organization-wide financial data is key in any HR analysis to calculate,
for instance, the revenue per employee or the cost of hire.

2. Organization-specific data: Depending on the type of organization and its core offering

(product or service), the type of data that HR needs to supplement analytics will vary. For
example, says Collins, “HR leaders at a global retailer should power their analytics engine with
store revenue and costs and customer experience data, whereas HR at a construction company
might pursue operational – health and safety – data and data related to contingent labor costs.”

3. Passive data from employees: Employees continually provide data that is stored in the
HRIS from the moment they are approached for a job. Additionally, data from their social media
posts and shares and from feedback surveys can be used to guide HR data analysis.

4. Historical data: Several global economic, political, or environmental events determine

patterns in employee behavior. Such data can offer insights that limited internal data cannot.

For example, the recession in 2008 was a global event that changed the way employees
perceived jobs or “work.” The freelance, start-up and gig economies took off as people continued
to lose their jobs. Data from such a critical historical event can help predict how the workforce
may react to similar shifts in the future. It can then be used to identify trends in the current
workforce and predict voluntary and involuntary turnover.
The complete HR analytics cycle
I. Create a collective mindset
Before the operational and mathematical aspect can kick in, HR leaders must prepare their teams
and organizations for a workflow-driven by analytics.
While the discussion with the C-suite for the need for analytics is one part of the change, the
other is preparing your team to deal with the amount of data that they will now be using to
measure the change.

II. Bring in data scientists

The data scientist is expected to become an integral part of HR teams. They are best suited to
assess the viability of an analytics solution. They can also ensure the robustness of the statistical
modeling and predictions. As the role of HR business partners and generalists evolves to include
skills such as data strategy, analysis, and communication (articulating ‘the story behind the
science’), the data scientist will serve as the coach, mentoring their colleagues across HR in how
to understand, and apply, the insights.”

III. Start small

A great technique to convince stakeholders that HR analytics can drive business value is to first
implement a small project successfully. Called “quick wins,” these projects can deliver tangible
results in a short amount of time with high impact.

IV. Get clearance from the legal team

The sort of data collection that HR analytics uses is governed heavily by compliance laws. Some
legal considerations to keep in mind when implementing an HR analytics solution are:
1. Employee privacy and anonymity
2. Consent from employees about the amount and type of data being collected
3. Establishing the goal of data collection and informing employees accordingly
4. IT security when using third-party software to run HR analytics
5. Location of the HR analytics vendor – with whom the data will be stored – and their
compliance with local laws
V. Choose an HR analytics solution
Any HR analytics solution that will be used at scale must have certain components.

The key features of an HR analytics solution

1. They answer the business questions the C-suite asks.  This may require that you
invest in a solution to address each question, leading to investments in multiple analytics
solutions for granular data on each question. Alternatively, you may choose a unified solution
that can assess multiple metrics to answer each business question.

2. They are easy to use by individuals who are not data scientists.  An accessible
solution created for laypersons is ideal when they want to assess any one or more metrics without
interrupting the workflow of the data scientist.

3. They are cloud-based rather than on-premise. A cloud-based solution also aids
accessibility without heavy IT integration. This grants HR the autonomy to use the solution as
and when needed.

4. They are powered with statistical analysis and machine learning

technology. Big data platforms require advanced data management systems powered by
machine learning and natural language processing. This allows the technology to learn and
reason autonomously, revealing insights that data scientists can then analyze.

5. They are based on predictive analytics.  “[Predictive analytics is] the practice of
extracting information from existing data sets to determine patterns and forecast future
outcomes. Analysts use statistical methods to forecast future alternatives – will the current
termination rate continue at the same pace or might we expect a surge of exits as the job market
strengthens?” explains Collins.

HRIS (human resource information system):

A human resource information system (HRIS) is software that provides a centralized repository
of employee master data that the human resource management (HRM) group needs for
completing core human resource (core HR) processes.

An HRIS stores, processes and manages employee data, such as names, addresses, national IDs
or Social Security numbers, visa or work permit information, and information about dependents.
It typically also provides HR functions such as recruiting, applicant tracking, time and
attendance management, performance appraisals and benefits administration. It may also
feature employee self-service functions, and perhaps even accounting functions.

In some ways, an HRIS can be considered a smart database of employee information. The
interaction of the data, the processes that can be performed and the reporting capabilities make
the data stored in the system more accessible and usable.

BENEFITS:

An HRIS enables the HR department to spend less time on clerical tasks, helps ensure the
accuracy of employee data and can enable employees to take a greater role in the management of
their information.

Having a centralized repository for employee data removes the need to store paper files, which
can be easily damaged, as well as the need to search through large paper-based employee files to
find information. Depending on the type of HRIS software, it should generate various reports,
provide ad hoc reporting capabilities and offer HR analytics on important metrics such as
headcount and turnover. Modern HRIS software also offers visualization capabilities for
employee data, such as automatically rendered organizational charts or nine-box grids.

When an HRIS has employee or manager self-service, the process for making employee master
data or organizational changes becomes more efficient and uses less time than with paper-based
requests. Approval workflows enable changes to be approved or rejected, with the necessary
individuals automatically notified. An HRIS might also offer mobile capabilities that extend self-
service and provide additional flexibility for remote workers.
TYPES:

A variety of HRIS systems are available and aimed at different types of customers, ranging from
small and medium-sized businesses (SMBs) all the way up to large enterprises. Usually, the
difference is in the range and depth of features for each process area.

While most HRIS systems cover a large portion of the processes described above, many HRIS
systems aimed at small to medium-sized enterprises (SMEs) have less depth of functionality in
each feature than those aimed at large enterprises.

In this way, the HRIS market is similar to the automobile market. All automobiles will get a
driver from A to B, but major differences exist in the quality and amenities offered.

FUNCTIONS:

As an HR tool, an HRIS usually features modules to handle the following tasks:

 Master data management (MDM)

 Organizational management, such as positions and departments

 Employee and manager self-services

 Absence and leave management

 Benefits administration

 Workflows

 Performance appraisals

 Recruiting and applicant tracking

 Importance :

An HRIS can play a critical role in enabling compliance -- for example, to store regulatory data
for a country, such as U.S. equal employment opportunity information or U.K. Working Time
opt-out -- and can offer a means of gaining insight into the workforce. Both are important and, in
some industries, are interwoven.

In addition, downstream integration of systems that require employee data, such as payroll or
LMS, and the immense time savings from having integrated applications means an HRIS can
serve a critical role, since data entry in multiple systems -- a reality for organizations without an
HRIS -- can lead to costly errors or reduced employee engagement.

As one example, suppose a company that manually enters HR data mistakenly overpays
employees or gives out too much vacation time. That company will find employee engagement
negatively affected if the error is reversed, a situation that could be avoided with an HRIS.

SIX SIGMA :
Six Sigma is perhaps the most established and well-documented approach along these very lines.
Fundamentally, six sigma is a data-driven methodology for improving the quality of a process
(i.e. any repetitive business function) via reducing the variation around the mean of the process.
In order words, ensuring that the process falls inside the acceptable tolerance range (as far as
possible). This is referred to as the process entitlement level in six sigma.
The term “Six Sigma” is widely used to refer to all of the following:

 A structured method for improving business processes. This method, called DMAIC
(Define, Measure, Analyze, Improve, Control), is supported by an assortment of statistical tools.

 A statistical measurement of how well a business process is performing. A process that

performs at “Six Sigma” produces only 3.4 defects out of every million opportunities to produce
 a defect. Processes that perform at lower sigma levels (such as one sigma or four sigma) produce
more defects per million opportunities. It is possible for a process to perform at an even higher
level (and thus have even fewer defects), but Six Sigma has become popular as the standard for
excellent process performance.

 An organizational mindset in which people make decisions based on data, look for root
causes of problems, define defects based on customer rather than internal requirements, seek to
control variation, track leading indicators of problems to prevent them from happening, etc

EMPLOYEE COUNSELLING:
Employee counselling is a vital part of performance review and potential appraisal, if these are to
achieve their basic purpose of helping employees to improve and develop. Unless carefully and
sensitively handled, employees may become more dissatisfied after the counselling than before.

Counselling is described as the help provided by the supervisor to the subordinates in analysing
their performance and other behaviours on the job, in order to improve their performance.
Counselling is also used sometimes in the sense of coaching and reviewing one’s performance.
Such a review identifies not only the potential for development but also the training needs for
further improvements. 
Employee counselling is a method of understanding and helping individuals who have technical,
personal and emotional adjustment problems interfering with their work performance.