Human Resource ManagementCorporations areundergoing dramatic changes with significant implications for how humanresources are managed and the HR function is best organized and managed. Theforces driving change include the rapid deployment of information technology, globalizationof the economy, and the increasingly competitive dynamic business environmentsthat corporations face. There is a growing consensus that effective humancapital is critical to an organization’s success and that the HR function’sfocus must be more strategic. An effective Human Resources Management giveschance employees to contribute effectively and productively to the overallcompany direction and the accomplishment of the organization’s goals andobjectives.
In working life, the most important value is employees. That is whyHuman Resources Management is the key factor for success of a business. Being aglobal world and being a part of global competitive markets processes forcebusinesses to manage human factor more truly for every level. A growing numberof sources in HRM literature support the change and development of HumanResources perspectives from personnel management to HRM and then to StrategicHRM; they claim that, the human resources are the companies’ most importantassets, and effective management of these resources will contribute to thesustainable competitive advantage of firms. With the increasing value ofemployees as individuals, management of human resources with a classicalapproach is no longer satisfactory. This has led to the necessity of adopting adifferent administrative approach.
As a result, the significance of humanresources management has increased among other functions of administration.Nowadays; management of human resources is a rising star and a focus of attentionin contemporary managing platform. The main reason for such an attention is thecomprehension of the human factor by many institutions. It has been realizedthat employment of individuals efficiently by force and intimidation is notpossible and more emphasis has been placed on methods and opportunities thatenable people to work willingly.At an age where totalquality is of primary importance, efficiency can only be achieved by thesuccessful utilization of human resources. Because, information that has givenits name to this period is the product of human beings.
There is a consensus inthe HRM field that, in order to stay competitive and reach business goals, highlevel managers must incorporate Human Resource Management strategies into theiroverall planning. A company’s competitive success depends on having wellinformed and capable HR managers at the highest levels of decision makingprocesses. Human capital theory aims using HRM to increase the value of theorganization’s human capital and the value of the anticipated returns, such asproductivity gains in the context literature where transaction cost theory hasthe perspective of economics.
While the organizations are developing day by dayagency theory appears to be particularly useful for understanding executive andmanagerial compensation practices and to predict occupation-based differencesin job pricing methods. Human resources with developed talents and creativitywho are able to reach and utilize information constitute the main power of competitionin the world market. Those companies and institutions that make investments onhuman resources and attempt to create working conditions that are compatiblewith their requirements and wishes, are the ones who reach success. Theemployees are the biggest support that institutions need during renovationperiods. Institutions that were able to please their employees in the past andwere able to implement loyalty and trust, can endure difficulties more easily.The merit given to humans not only increases personal productivity but it alsouplifts the quality of the company and the team. The main purpose of humanresources management is the employment of human resources in the most efficientand productive way. Nowadays; the success of institutions is evaluated by theircommunication.
Communication is the power of competition in production andservice. Sharing information with the all the employees and managers,production of information, its distribution and reflection to daily life andservice constitute the main structure of communication inside the institution.Human resource management is one of the necessary needs of today’s business.Human resource management department has a very important role for supply ofthe human being to main resources of companies. Human resource managementdepartment has fundamental role for personnel recruiting, orientation andperformance appraisal and so on. The performance evaluation within thisprocess, it’s not only for evaluate of employees performance therewithal it’simportant to get strengthening of the bond between employee and employer.
Performance evaluation is one of the important matters for companies gettingsuccessful. If the companies can use to performance evaluation correctly, it’sbring to successful performance management and then bring success of thecompany. The aim of this study to give some information about human resourcemanagement and underline important of human resource department is then makeprelude to performance evaluation and give some information about performanceappraisal process. In today’sknowledge-based economy greater emphasis is adverted to human capital.
Tosurvive in the dynamic environment and to achieve the competitive advantage;human capital is of immense priority thus has become very important.Organizations are much concerned with the human capital because they think theycan only achieve the competitive advantage with the effective utilization ofits human resource. Because of the fact that it is only the workforce of an organizationthat exclusively and entirely can make it different from its competitors andalso it is hard for the competitors to duplicate the same workforce at theirrespective ends. Now-a-days the organizations are struggling to improve theperformance of employees by effectively implementing their human resourcepractices.
Human capital will lead the organizations towards better decisionmaking, extensively effective communication within the organization andgenerate creative and innovative ideas. In order to formulate appropriatecompetitive advantage through employees, it is first necessary to analyze thefirm’s competitive strategy or business strategy and organizational humanresource practices. The organization should create a International Journal of Economics,Commerce and Management, United Kingdom Licensed under Creative Common Page1033 complete model of HRM and employment relationship; also it should supportlong-term thinking, building ?core competencies? and also develop ?sensing?capabilities.
Human resource management should be thought as a strategicactivity and that is carried out consistently with the overallbusiness/corporate strategy. Human capital plays a critical role in thecreation and sustaining of competitive advantage. Building human capital is notsole responsibility of human resource department. Creation of positiveenvironment lies in organizational perspective for innovation and creativity.Everything assumes to be same but distinctive human capital becomes acompetitive advantage requires sanction from top management. Human capital managementHuman capital managementis an approach to employee staffing, that perceives people as assets (humancapital), whose current value can be measured and whose future value can beenhanced through investment.
An organization that realises human capitalmanagement helps its employees clearly to define and consistently communicatetheir expected performance. Managers are responsible for valuation, rewarding,and holding employees accountable for achieving specific business goals,creating innovation and supporting their continuous improvement. HCM objectiveis that the organization was able to build and maintain effective employmentrelationships so that the knowledge contingent workers bring is shared withthose working for the organization, while ensuring that the organization’svalues and purpose are not diluted. Equally it is important that employmentrelationships are managed to ensure legal compliance and that knowledge key tothe organization’s success is protected.
To achieve this it isnecessary: · protect and preserve for future useknowledge of organization.· identify individuals from inside, who arekey to the success of the organization.· identify individuals from outside theorganization who are key to the success of the organization. Organization of thefutureA dynamic growthenvironment, faster adoption of changes in technology (by consumers as well asemployees), and ever-increasing competition have forced organizations to reviewand update their ways of working and usher in the organization of the future.For the second year in a row, Organization design has emerged as the top humancapital trend.
In India, respondents overwhelmingly rated building theorganization of the future as their top priority with close to 70 percentrating this as “very important”. This level of interest signals a shift from”designing the organization structure” to “actively building organizationecosystems and networks”. In recent years, organizations are evaluating newbusiness models and have initiated efforts to understand the changes requiredto their organization structure. In fact, 57 percent of the respondentsindicated that they are either designing or already implementing theorganization of the future.
Organizationsare starting to move towards structures that allow them to be closer tocustomers. For example, a large Indian diversified group recently moved from abusiness unit structure to a customer segment based structure to provide a moreintegrated experience to their customers across their products and services.Additionally, organizations are focusing increasing amounts of executive timeand corporate funds to develop new ways of working which are best suited toleverage the talent within the organization to its fullest potential. This hasmeant innovative uses of technology and automation of basic processes, so as toallow greater focus on value addition by the human capital. On account ofsweeping changes in business processes, the roles and accountabilities ofpeople have also undergone a change. Common platforms and greater sharing ofknowledge have also allowed organizations to simplify their structures and openup opportunities for collaboration and teaming across internal and externalnetworks.
Organizations are seen to be utilizing several ways to drive internaland external networking such as assignment based projects, team based goalsetting, and use of third party specialists and teams. On the other hand,understanding the value of these networks is rated as an important component ofthis trend, but a large number (38 percent) of respondents in India haveindicated that this aspect is currently weak in their company. Thissimplification of structures has several advantages, the most important ofwhich is greater flexibility in decisions and actions. To take the example ofthe digital push in India, many companies are moving towards making their wholetop teams “digital” as opposed to driving the same through a dedicatedposition. This has allowed companies to align their top leadership on the”digital agenda”–and thus are much better positioned to “being digital” and notsimply “adding a digital layer” to the existing organization. PerformanceManagementOverthe past few years several global majors such as GE, Google, Microsoft, Adobe,IBM, Deloitte, SAP, and Accenture have started to move away from thetraditional annual, rating based performance review model.
Taking a cue fromthe global trends, 2016 witnessed many India based organizations such as TCS,Wipro, Infosys and Snapdeal dropping annual performance reviews and forcedrankings, and exploring alternate methods of performance assessment. This year,performance management resurfaces as a key trend, ranking four positions higherthan the global statistics. More than 9 out of 10 organizations in India seeperformance management as being “important” or “very important” and 61 percentorganizations are “ready” to change it. Today Indian organizations are facingtwo key challenges–one, the dynamic business environment has necessitated organizationsto respond swiftly, and two, the dominant demographic is only getting younger.Interms of business environment, global majors (across sectors) infusinginvestments into their Indian operations coupled with the explosion ofstart-ups in India has led to re-defining the rules of the game. These newrules result in the need for frequent engagement with employees. Organizationsnow need to spend more time helping people use their strengths—in teamscharacterized by great clarity of purpose and expectations.
On the demographicfront, India is also slated to become the youngest country in the World by2021, with 64% of its population being Millennials (as per the 2013-14 EconomicSurvey). The “up or out” performance management process eventually ties back toassessments and level of pay while a high-potential millennial today seeksregular developmental feedback and career progression advice, not just “onceand done” reviews. Companies thus need to shape their strategies to remainrelevant to this workforce. The resurgence of the trend in the 2015 trendsresearch, organizations were discovering the secret ingredient for new ageperformance management. Starting 2016, companies have been deploying newperformance management principles to a greater extent through the followingmeasures – agile goal management, de-emphasizing annual ratings and linked payimplications, and increasingly focus on continuous performance coaching.•Three in four Indian organizations believe their goal management is aptlypositioned to measure performance and motivate their employees through reward,recognition and incentives. • While compensation and performance reviewcycles continue to be annual, four out of five Indian organizations believe theyhave effectively put in place mechanisms to provide employee with timelyfeedback.
•Three out of five organizations have moved to a quarterly or more frequentperformance feedback and mentoring check-ins. TalentAcquisitionThe war for talent isonly getting more intense; it is hardly surprising that Talent Acquisition hasemerged as one of the top trends in India this year. The statistics also backthis up–close to 90 percent of respondents in India rated this as eitherimportant or very important to their organizations. However, while Talentacquisition emerged as one of the top trends for human capital in India, interms of readiness, almost 45 percent of the respondents rated theirorganizations as not ready or somewhat ready. In terms of keeping up with thechanging trends, 37 percent of Indian firms have updated their talentacquisition strategy within the past year, and another 36 percent are currentlyre-evaluating their strategy for changes to talent acquisition programs.In some aspects, India ison par with the global HR practices. For example, changing attitudes towardssocial media, the increasing confluence of various social media platforms, andthe explosion of mobile data in India have meant that professionals areincreasingly more willing to engage on social media and thus are moreaccessible to recruiters than ever before.
Recruiters, on their part, arepaying more attention to social networking and making efforts to reach out toand attract talent via this medium. More than 70 percent of respondents saidtheir organizations currently use social media adequately to list jobs andidentify talent. Indian companies are also aware of the advantages ofintegrating recruitment (across markets, geographies, business lines,departments) to give a consistent experience to employees and potential hires.This includes integration of systems and processes, as well as the top downleadership commitment to driving the same. On the more cutting edge aspects of”new age” recruiting, India shows significantly lower levels of readiness.
While some companies are implementing gamification or simulations (particularlyfor induction and joining processes), and using basic analytics for hiring,most of the aspects which are radically transforming recruiting in more evolvedmarkets are yet to make significant traction in India. Currently, organizationsuse social media only for basic identification of candidates, but do notundertake more advanced approaches such as data scraping, or multiple levels ofscreening based on social media activity. Furthermore, the usage of roboticsand AI in India in the Talent Acquisition space is not present to a largeextent. While there is a long way to go, on a positive note, Indian companiesrate Talent Acquisition as a short term priority with close to 25 percent ofthe companies making changes in the direction of new Talent Acquisitionstrategies in the next 12 to 18 months.
In fact, a significant number oforganizations are looking to incorporate robotics, cognitive computing andArtificial Intelligence into their talent acquisition processes over the nextthree-five years. EmployeeExperience