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									                        FUTURE CHALLENGES FOR HRM

Over the recent years, significant changes have taken place in the social, economic,
technological and political environment of Indian businesses. The government’s policy
for economic liberalization and stimulating globalization of businesses has brought many
opportunities and threats for the modern organization. The HR professionals cannot
ignore such changes, rather they have to develop, design and execute competencies of
HR to prepare them for:

       Changing internal environment
       Changing needs and expectations of customers
       Changing profile of workforce
       Advancement of technology
       Revolution in IT sector
       Economic and individual policy changes

The above trends will have a tremendous impact on the tasks of HR managers who will
have to act as change agents or change facilitators.

Emerging Issues and Challenges:
1. Globalization:

National policies are being influenced significantly by extra national forces on a variety
of economic, social and labour matters. Problems and decisions in one part of the world
affect prospects in other parts of the world and shape the events elsewhere.
The impact of globalization can be observed from the following trends:

       Integration of economies – Globalization has resulted in opening up of vast
        markets which can be tapped by big industries, which is possible only when there
        are harmonious relations between labour and management.
       Global benchmarking – Globalization has resulted in striving for highest quality
        of products and processes so that they are competitive in the world markets.
       Change in the management Styles (participative management styles)
       Future of public enterprises – Public enterprises will have to increase their
        efficiency so that they can be competitive.

2. Technological Advancements:

With the changes coming in the wake of advance technology, new jobs are created and
many old ones become redundant. In this competitive world, today a company cannot
hope to survive for long with the old technology. The problem of unemployment
resulting from modernization will be solved by assessing manpower needs and training of
redundant employees in attaining newer skills.

3. IT Revolution- IT revolution is about real-time access and sharing of digital
information consisting of visual images, sound & virtual world, made possible by core
information technology like digital networks, information databanks & computer
The IT revolution is transforming our living & work conditions beyond imagination. To
meet the challenges of information age the organization are redefining their missions,
objectives, strategies, critical success factors & restructuring traditional pyramid type
organizational structures to the new organizational structures.

4. Changes in political-legal environment- There might be greater government
intervention in the near future to safeguard the interest of workers, consumers and the
public at large. Government participation in trade, commerce and industry will also pose
many challenges before management of private sector firms.
Many changes are taking place in the legal framework within which the industrial
relations system in the country is now functioning. It is the duty of hr & ir executives to
fully examine the implication of the changes & bring about necessary changes.

5. Role of Government- The role of government in management of human resources is
assuming even greater importance in the port liberalized era. Government has to play a
dynamic & facilitative role in regulating the relationship between two parties.

6. Changes in Workforce-

(1)   Increase in education levels
(2)   Change in skill levels
(3)   Wisdom workers
(4)   Age group & aspiration of workers

Meeting Challenges: Tasks of HR Managers:

The HR Manager will have to face many challenges. Rapidly changing technology and
tremendous pace of development in the economy would demand significant and
substantial contribution from the personnel mangers. These managers will have to play a
vital role by preparing human resources for such changes in the organization’s goals.

      1. Managing workforce diversity

      An important challenge that HR mangers will face involves workforce diversity and
      the increasing heterogeneity of organizations with the inclusion of workers from
      different groups, such as women, physically disabled persons, retired defence
      personnel, backward classes, etc. Thus workforce diversity has significant
      implications for management. The mangers will be required to shift their approach
from treating each group of workers alike to recognizing the difference among them
and following such policies so as to encourage creativity, improving production, etc.

2. Meeting Aspirations of the employees

Today’s workers are more career oriented and are clear about the lifestyle they want
to lead. The mangers would be required to evolve appropriate techniques to satisfy
higher level needs of workers.

3. Empowerment of Employees

Empowerment involves efforts to take full advantage of organization’s HR by giving
everyone more information and control over how they perform their jobs. Various
techniques of empowerment range from participation in decision making to the use of
self managed teams.

4. Management of HR relations

This would be a complicated task than it is today. Since workforce in future will
comprise of better educated and self conscious workers, they will ask for higher
degree of participation.

5. Dynamic personnel policies and programmes

HR manager of tomorrow will not only look after personnel functions but will also be
involved in Hr policies and programmes for the entire organization. Thus
management of HR will receive greater attention of all managers from top to bottom.
Every HRM programme will have to be properly planned and directed by HR
manager in consultation with other managers.

6. Building responsive Organization

HR managers will have to contribute tremendously to the building up of responsive

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