Topic: “Illustrate important trends influencing Human Resource Management with

examples. “

Human Resource Managers serve as the bedrock of any organization and have for long
helped employers in hiring the most suitable employees by working in close coordination
with the line managers. However, over the years we have witnessed new trends which have
affected the way in which employers go about handling the human resource management
functions in their organization. Some of the most noticeable industry trends which are
influencing human resource management today are workforce demographic trends, job
trends of people, technological trends, as well as economic trends and globalization. Apart
from this, many emerging trends such as decentralization of work sites, greater diversity in
workforce and likewise may also influence human resource management to a greater extent
than ever before, in the days to come. Here, we will try to understand exactly how and to
what extent do the aforementioned trends influence human resource management in any
organization. So, without further ado, let’s dive in…

Workforce Diversity Trends-

With the rise in social equity in terms of access to quality education among other areas, we
have witnessed a proportionate increase in diversity in the workplace. Today, more women,
older employees and members belonging to minority groups are joining the corporate
workforce which has led to unprecedented diversity in the modern workforce. In India, a
greater number of women than ever before, are joining the modern workforce and this
trend is only going to increase with time. Effective human resource management today,
should take into account the growing workforce diversity and try to provide an inclusive
environment to all the employees in order to maximize productivity.

Job Trends-

In terms of the jobs which people do today, there are three major trends to be seen. For
one, the industry has to a large extent, shifted from manufacturing to service. More than
two-thirds of workers today are employed in the service industry in some or the other way.
This trend is only going to strengthen with each passing year. In fact, over the next few
years, we could reach a point where almost all the newly created jobs will be service sector
jobs.

Secondly, there is a surge in the number of freelancing jobs and on demand workers. The
gig-economy of today is not limited to only small companies. Even in large MNC’s such as
Uber and Upwork, most of the workers are not employees at all. Most workers in these
companies are freelancers who work when they can, on what they want to, when they are
called for. For instance, Uber signs up lakhs of independent contractor drivers every year.

Lastly, technology is becoming an indispensable part of most jobs out there. Consequently,
more and more high-tech jobs are being created continuously. For instance, in older times,
jobs like engineer, doctor, pilot and likewise required a certain level of education and
technical knowledge. However, with the proliferation of technology across modern public
systems, today a cab driver, a store clerk or a delivery agent also require a level of
technological sophistication. In other words, we live in a knowledge-based economy where
firms can profit and succeed from investing in the acquisition and development of superior
and skilled human capital.

Globalisation Trends-

Globalisation basically refers to organizations extending their operations to new markets

beyond the boundaries of a single nation. For instance, Apple assembles their iPhones in
China due to a host of reasons before shipping and selling them all over the world. Global
trade is also boosted by the creation of free trade areas and trade agreements between
various nations. European Union (EU) is a great example of how free-trade agreements can
help boost international trade and economy. For the last 50 years so, globalisation has
boomed as more and more countries are opening themselves up to foreign imports and
investments.

Economic Trends-
Short and long-term economic trends influence human resource management in various
ways. For instance, during the 2008 recession, unemployment across USA rose to more than
10%. The government policies with respect to banks entering new businesses such as
investment banking and likewise were quite lenient back then which led to this unfortunate
situation. Speaking of today, the economic trends are on the rise and hopefully will continue
to rise.

Technology Trends-
Technology influences human resource management in a couple of ways. First and
foremost, technological changes are affecting the nature of jobs. Even the most basic jobs
are affected by technology. A cab driver needs to be adept at using GPS, and should be able
to handle a fairly tech-intensive software in order to go about their business.
Secondly, technology also influences the manner in which organizations go about doing
their human resource management tasks. Companies make judicious use of social media
tools such as LinkedIn, Twitter and Facebook in order to find and recruit the best talent out
there. They no longer rely on recruitment agencies as such. According to an estimate by
Accenture, social media tools such as LinkedIn will soon provide over three fourths of the
new recruits in organizations which will allow line managers to bypass HR and handle
recruiting on their own. Another technological trend is the use of mobile applications to
monitor employee location by the employers. Gamifying the training and learning
environment of employees in order to increase engagement and participation is yet another
way in which technology is influencing human resource management of modern
organizations. Lastly, technologies such as Artificial Intelligence (AI), Machine Learning (ML)
and Augmented Reality (AR) are playing an important role in influencing human resource
management.

These were some of the important trends influencing human resource management.
However, the effects of various other emerging trends in the industry are yet to be
documented and studied to accurately estimate their influence on human resource
management.