Current Trends in Human Resource Management and Their Effect on Companies

Topics: Human resources, Human resource management, Management Pages: 5 (1737 words) Published: November 27, 2011
Identify 5 current trends in HRM and how these trends may effect the human resource practice of the company. Human resource management has evolved from its traditional function as workplace management to a more strategic partner in many companies. Many organizations are witnessing changes in its system due to global alignment. Some of the most observable trends in the human resource management are outsourcing, brain drain, globalization, modern management practice, and technological advancement. Human resource outsourcing has become a new accession in most midsize firms. Outsourcing HR has become a strategic tool that relieves businesses off its HR responsibilities and focus on their core business. Outsourcing also enables businesses to get the specialised services and have access to vast experience and knowledge. Besides, outsourcing can also help to reduce cost. For example, companies like Sime Darby Auto Connexion have outsourced their HR functions to Sime Darby Global Services Center (GSC). Sime Darby Global Services Centre (GSC) delivers high performance Finance & Accounting, Human Resource and Information Technology services to the Sime Darby's diverse business in the Asia Pacific Region - Malaysia, Thailand, Vietnam, China, Hong Kong, Macau, Indonesia and Singapore. Its mission is to provide their customers with cost competitive and high quality services. It is achieved by investing in people, processes and in the right technologies. GSC continuously seek for and invest in talents that are motivated to deliver outstanding performance and breakthrough ideas and solutions, which are key to providing unparalleled services to its clients. Another pressing trend in the human resource management is the flawed approach to it that has lead to a serious issue of brain drain. The main contributing factor to this condition is the harsh economic and political condition of the country and better opportunity, living and working condition in other countries. According to a recent news release in the Star Newspaper, 57% of Singapore’s professionals are Malaysians. The brain drain isn’t only a pressing issue in Malaysia but also in other countries such as Italy and South Africa. According to a recent article published in the Time Magazine, Italy is losing its best and brightest talents to decade of economic stagnation, frozen labor market and entrenched system of patronage and nepotism. Many of its young graduates are fleeing to countries like China, Dubai, Washington, etc where they feel their experience and skills are more valued. Human resource managers have to put serious consideration in addressing this issue. Many young talents leave their home country due to desire to further their careers. Many home companies will not be able to offer financial benefits or resources that are likely to satisfy the demands of these young talents. Thus, creative approach has to be undertaken retain these young talents by identifying other attractive measures to keep them rooted in the home country. The free flow of technology across national boundaries and the spread of Information Technology has presented an ever changing and competitive business environment. Many companies are opening up their economies to external forces and at the same time penetrating into other countries economy. With the aid of globalization, businesses can now concurrently conduct business in any part of the globe. Globalization has made the business process not only more efficient and effective, but more streamlined and modernized. The corporate sector has become more receptive and reactive as new and innovative ideas and opinions such as the outsourcing of labor have emerged. The advancement of technology has also tremendously affected the human resource management. Technology has transformed the way in which human resource personnel manage and communicate employee information and communicate with employee. For example, technologies like intranets, webinars and...
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