HRM and the Changing Nature of Organizations

Topics: Human resources, Human resource management, Management Pages: 8 (2229 words) Published: March 27, 2014

Organizations are exposed to the challenges and opportunities posed by the increasing change and complexities in the business environment. The emergence of globalization, technical advancements, telecommunications revolution, growth of knowledge based workforce and intense competition; mandate the transformation of Human Resource Management (HRM) in organizations. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the HR department in the 21st century. In order to survive the competition and be in the race, HR department should consciously update itself with the transformation in HR and be aware of the HR issues cropping up. In this paper, first the evolution of HRM from past to present will be discussed in a theoretical concept. Then the role of human resources for organizations to gain competitive advantage and the innovations in HRM in the 21st century will be analyzed in a strategic view. Keywords: Human Resource Management Past and Present view, Strategic Human Resources Management, Challenges

The main objective of the paper is to study the Future challenges in 21st century in HRM strategic implementation of these can help the organization to stay ahead of the competition.


HRM is now often seen as the major factor differentiating between successful and unsuccessful organizations, more important than technology or finance in achieving competitive advantage. This is particularly, apparent in the service sector where workers are the primary source of contact with customers, either face-to-face in a service encounter or over the telephone or the Internet. Even in manufacturing firms the way in which human resources are managed is seen as an increasingly critical component in the production process, primarily in terms of quality and reliability. Much of this revolves around the extent to which workers are prepared to use their discretion to improve products and services. Human Resource Management is a process, which consists of our main activities, namely, acquisition, development, motivation, as well as maintenance of human resources. Northcott considers human resource management as an extension of general management, that of prompting and stimulating every employee to make his fullest contribution to the purpose of a business. Human resource management is not something that could be separated from the basic managerial function. It is a major component of the broader managerial function. The role of the HR for the 21st century is named as strategically reactive in business strategy Implementation through supporting the long term strategies with the necessary employee qualifications and developing the cultural and technical capabilities required for the strategies of the organization. The need for managing the employees strategically in the 21st century also requires the management and the organization structure to be more flexible. The work system has started to change with autonomous work groups with high qualified workforces, outsourcing some of the operational HR functions, downsizing, delayering, employee participation to the decision systems, high wages for the high qualified human resources, virtual and network organizations RISING ROLE OF HRM

                      The role of HRM has gain more important in the year 1980. There was a complete shift from post war collectivism and towards individualism and changes in structure of economy. Some people thought that HRM was evolved to solve union problem as there is an demand to take care of employees of an organization as a whole it performs different function.                      During 1990,s the success of large Japanese corporation in export market like automobiles and electronic goods took surprise to many western companies but studies says that the success of these Japanese firm is due to effective management of workforce the studies also...

References: 1. Michael Armstrong, Strategic Human Resource Management, Kogan Page Ltd., UK, 2000.
2. John Bratton, Jeffrey Gold Human Resource Management, Theory & Practice, Second Edition, Macmillan, 1999.
3. Mick Marchington & Adrian Wilkinson Human Resource Mangement at Work, People Management & Development, Third Edition, Chartered Institute of Personnel & Development, London, 2005.
5. Marc Effron, Robert Gandossy, Human Resources in the 21st Century, John Wily & Sons, New Jersery, 2003.
7. Subbha Rao, Human Resource Development in the new Millennium, first edition, Himalaya Publishing House, 2000.
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