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Contemporary Issues in Human Resource Management

Pallavi S. Vyas

Learning Objectives
Understand the major challenges ahead of HRM.

Understanding of the HR responses to major


Contemporary Issues in HRM

Outsourcing HR activities HR professional as change agent HR manager as strategist

Changing workforce demographics

BPO and call centres

Balancing work-life

New organisational forms

Make HR activities ethical

HRM in M&As

Managing diversity


Attitude towards unions

HRM in high performance organisation

Changed employee expectations

Managing Diversity
Top management commitment to value diversity

is a pre-requisite. Organise diversity training programmes that provide diversity awareness and educate employees on cultural and sex differences and how to respond to these in the workplace. Have a support group set up by an employer to provide a nurturing climate for employees who would otherwise feel isolated or alienated. Accommodate female employee needs, such as child care and job sharing, to prevent their turnover.

Impact of Globalisation on HR Function

World class HR practices have found their

application in Indian businesses. Hiring practices, motivational approaches, compensation packages, training and development methods and techniques, appraisal systems and capability development now being practised by HR managers include ideas and practices followed in US or Japanese firms. If company prayers, common uniform and shared canteens have come from Japanese firms, US corporations have helped Indian HR managers professionalise their activities.

Globalisation (contd..)
Indian firms have large number of foreign nationals

working here or Indians are being sent as expatriates to other countries to work in home countries of MNCs. Either way, the task of HR manager becomes more challenging. Expatriates (home country nationals working in India or Indians sent abroad) need to be attracted, trained, compensated, promoted and motivated differently. BPO and call centres pose unique problems to HR managers. Mostly youngsters in their 20s are being employed in BPO and call centres as contract labourers. While the youth finds the jobs exhibiting, as the following statements reveal, the fallout of these is having negative impact on health and social life of several thousands of people.

Paradigm Shift in HR Practices

Past Characteristics Local Practices Hierarchical organisations Jobs/positions Points Skills Salary Tactical Data/Information Data Collection/Reporting Future Characteristics Global practices Flattened organisations Self-directed teams Broadband Core competencies Total compensation Strategic Knowledge/Intelligence Reporting/Forecasting

Source: Hal G. Gueutal and Dianna L. Stone, The Brave New World of e-HR, Wiley India, 2005, p.267.

Causes and Consequences of High Performance

People Customer Delight Increased sales, brand loyalty, increased profits


High Performance


Employee Satisfaction

Low turnover, low absenteeism, high morale

Thank You!!