Introduction

The importance of Human Resource Management can be traced back to Vedic ages! Yes, in The
Bhagavad Gita, Lord Krishna not only makes Arjuna spiritually enlightened, but also teaches him the art
of self management, anger management, stress management, conflict management, transformational
leadership, motivation, goal setting and many other aspects which are now essential parts of any HRM
curriculum. Human resource management is a process of bringing people and organizations together so
that the goals of each other are met. The role of HR manager is shifting from that of a protector and
screener to the role of a planner and change agent. Personnel directors are the new corporate heroes.
The name of the game today in business is Personnel. Nowadays it is not possible to show a good
financial or operating report unless your personnel relations are in order.

Significance of Human Resource Management

The Human Resources (HR) function provides significant support and advice to line management. The
attraction, preservation and development of high calibre people are a source of competitive advantage for our
business, and are the responsibility of HR. Industries in India in general and Human Resources function in
particular, will open new avenues in future. One clear trend concerns joint decision making. From largely
paternalistic efforts to help needy employees solve their personnel problems, industrial organizations in India
have moved to a joint consultative process of decision making which influences employees.

The scope of Human Resource function depends, to a large extent, on its importance in the organization
and the attitude of the top management to executives in the HR department. The basic objectives of
Human Resource Department of an organization are an effective and efficient utilization of human
resources, harmonious relations among all employees and maximum development of individuals. These
objectives are generally achieved by hiring capable people, using their efforts effectively and encouraging
a willingness to work kind of environment to achieve organizations goals.
Human Resources managers style of supervision, his plans, policies and procedures have a significant impact
on an individuals performance. Changes in HR function, to a large extent reflect changing needs of the
organization. Changes in the organizational atmosphere, hopes and aspirations of the workforce, and the
external environment all demand an innovative problem-solving approach from the personnel department.

The functions of HR manager in future will definitely be enhanced from traditional areas such as
management of manpower planning, recruitment, selection, training, internal mobility and welfare.

Role of HR Managers in Present Times

HR Managers today are focusing attention on the followinga)

Policies- HR policies are based on trust, openness, equity and consensus.

b) Motivation- Create conditions in which people are willing to work with zeal,
initiative and enthusiasm; make people feel like winners.
c) Relations- Fair treatment of people and prompt redress of grievances which
would pave the way for healthy work-place relations.

d)

Change Agent- Prepare workers to accept technological changes by clarifying doubts.

e)

Quality Consciousness- Commitment to quality in all aspects of personnel administration will

ensure success.
Due to the new trends in HR, in a nutshell the HR manager should treat people as resources, reward
them equitably, and integrate their aspirations with corporate goals through suitable HR policies.

Traditionally, the role of the Human Resource professional in many organizations has
been to serve as the systematizing, policing arm of executive management.
In this role, the HR professional served executive agendas well, but was frequently viewed as a road block by
much of the rest of the organization. The role of the HR manager must parallel the needs of his or her
changing organization. Successful organizations are becoming more adaptive, resilient, quick to change
direction and customer-centered. Within this environment, the HR professional, who is considered necessary
by line managers, is a strategic partner, an employee sponsor or advocate and a change mentor.

Strategic Partner
In todays organizations, to guarantee their viability and ability to contribute, HR managers need
to think of themselves as strategic partners. In this role, the HR person contributes to the
development of and the accomplishment of the organization-wide business plan and objectives.
The HR business objectives are established to support the attainment of the overall strategic business
plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work
systems in which people succeed and contribute. This strategic partnership impacts HR services such as
the design of work positions; hiring; reward, recognition and strategic pay; performance development and
appraisal systems; career and succession planning; and employee development.

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Employee Advocate
As an employee sponsor or advocate, the HR manager plays an integral role in organizational
success via his knowledge about and advocacy of people. This advocacy includes expertise in how
to create a work environment in which people will choose to be motivated, contributing, and happy.
Fostering effective methods of goal setting, communication and empowerment through responsibility, builds
employee ownership of the organization. The HR professional helps establish the organizational culture and
climate in which people have the competency, concern and commitment to serve customers well.

In this role, the HR manager provides employee development opportunities, employee assistance
programs, gain sharing and profit-sharing strategies, organization development interventions, due
process approaches to problem solving and regularly scheduled communication opportunities.

Change Agent
People often resist change. A significant change occurs when an individual moves from his home
environment to work environment, or when there is a transition from a traditional work method to an
advanced technological method. Technological advancement brings about changes which a worker
may resist. At this point, the personnel manager has a crucial role to play. He has to convince
workers of the need for automation and prepare them to accept changes well before they are
introduced. Implementation is mainly a method of getting new methods and ideas accepted and
used with the least friction but with ample scope of improvement. Hence changes should be phased
gradually and thoughtfully without provoking negative reactions from the workers.
The constant evaluation of the effectiveness of the organization results in the need for the HR
professional to frequently support change. Both knowledge about and the ability to execute successful
change strategies make the HR professional exceptionally valued. Knowing how to link change to the
strategic needs of the organization will minimize employee dissatisfaction and resistance to change.

The HR professional contributes to the organization by constantly assessing the effectiveness

of the HR function. He also sponsors change in other departments and in work practices. To
promote the overall success of his organization, he supports the identification of the
organizational mission, vision, values, goals and action plans. Finally, he helps determine the
measures that will tell his organization how well it is succeeding in all of this.

Activity A:
Prepare the activity report of an HR manager of a company known for its proactive HR Practices.

Recent Trends In HRM

Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing.
This calls for future skill mapping through proper HRM initiatives. Indian organizations are also witnessing a
change in systems, management cultures and philosophy due to the global alignment of Indian organizations.
There is a need for multi skill development. Role of HRM is becoming all the more important.

Some of the recent trends that are being observed are as follows:
The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus
more on people centric organizations. Organizations now need to prepare
themselves in order to address people centered issues with commitment from the
top management, with renewed thrust on HR issues, more particularly on training.
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To move ahead of competition in this world of uncertainty, organizations have introduced

six-sigma practices. Six- sigma uses rigorous analytical tools with leadership from the top
and develops a method for sustainable improvement. These practices improve
organizational values and helps in creating defect free product or services at minimum cost.

Human resource outsourcing is a new accession that makes a traditional HR

department redundant in an organization. Exult, the international pioneer in HR BPO
has already roped in Bank of America, international players BP Amoco & over the
years plan to spread their business to most of the Fortune 500 companies.
With the increase of global job mobility, recruiting competent people is also increasingly
becoming difficult, especially in India. Therefore by creating an enabling culture, organizations
are also required to work out a retention strategy for the existing skilled manpower.

Forces Changing HRM

In the 1990s several forces were shaping the broad field of HRM. The first key force, new technologies
particularly information technologybrought about the decentralization of communications and the shake-up of
existing paradigms of human interaction and organizational theory. Satellite communications, computers and
networking systems, fax machines, and other devices were facilitating rapid change. Moreover, since these
technologies helped blur the lines between work time and personal time by enabling employees to work at
home, Human Resource Management professionals began adopting Management by Objective
approaches to human resources instead of the traditional management by Sight method.

A second important change affecting HRM was new organizational structures that began to emerge
during the 1980s and continued through the 1990s. Because many companies began expanding
their operations and diversifying their products and services, the central decision-making system
failed to respond quickly enough to managers needs and concerns. Therefore, companies started
scrapping traditional, hierarchical organizational structures in favor of flatter, decentralized
management systems. Consequently, fewer managers were involved in the decision-making
process and companies were adopting more of a team approach to management. HRM
professionals, as the agents of change, were charged with reorganizing workers and increasing their
efficiency. These efforts also resulted in the proliferation of part-time, or contract, employees, which
required human resource strategies that contrasted with those applicable to full time workers.

A third change factor was accelerating market globalization, which was increasing
competition and demanding greater performance out of workers, often at diminished
levels of compensation. To compete abroad, companies were looking to their HRM
professionals to enhance initiatives related to quality, productivity, and innovation.
Other factors changing HRM include: an accelerating rate of change and turbulence,
resulting in higher employee turnover and the need for more responsive, open-minded
workers; rapidly changing demographics; and increasing income disparity as the demand
for highly educated workers increases at the expense of lower-wage employees.

Emerging Concepts
Of late, a number of new concepts have emerged in the management field to improve
the overall effectiveness of the organizations. The HR manager not only has to know
them well but has to prepare himself/herself to implement some of these new ideas.
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1. Total Quality Management

The concept of TQM is based on the 14 principles of Deming that deal with this subject. Deming
was born and brought up in USA and migrated to Japan in the early 50s, where he evolved these
total quality principles. TQM is a culture based on the realization that the high quality of products
and services and associated customer satisfaction are the keys to organizational survival.

At its core, Total Quality Management (TQM) is a management approach to long-term

success through customer satisfaction.
In a TQM effort, all members of an organization participate in improving processes,
products, services and the culture in which they work.
The methods for implementing this approach come from the teachings of such quality leaders as Philip B.
Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.4

A core concept in implementing TQM is Demings 14 points, a set of management

practices to help companies increase their quality and productivity:
1. Create constancy of purpose for improving products and services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total
cost by working with a single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.

12. Remove barriers that rob people of pride of workmanship, and eliminate
the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.
2. Assessment Centres
An assessment centre is a comprehensive, standardized procedure in which multiple assessment
techniques such as situational exercises and job simulation (business games, discussions, reports,
and presentations) are used to evaluate employees for a variety of manpower decisions.
An assessment centre consists of a standardized evaluation of behaviour based on multiple inputs.
Several trained observers and techniques are used. Judgments about behaviour are made by these
specially trained observers. At the end of the assessment the assessors get together to share their data
which is scientifically recorded on a set of evaluation forms. They come to a consensus on the
assessments of each candidate. Most frequently the approach has been applied to individuals being
considered for selection, promotion, placement, or special training and development in management.

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History of Assessment Centres: Assessment centres methodology is known to have been used or
recommended at least 1500 years ago in India as mentioned in Kautilyas Arthashastra. Different methods of
assessing a candidate for ministerial positions have been spelt out in the Arthashastra including: observation,
performance appraisal, assessment by those who knew him, interviewing, and other forms of testing.

Early application of assessment centres can be traced to the German military assessment
programme developed for selection of officers for the German Army. Both multiple assessment
techniques and multiple assessors to evaluate complex behaviour with special focus on leadership
were used. Assessment was based on subjective opinions and very little rating was done.
How are Assessment Centres Different Now?: Early assessment centres were used essentially
for selection purposes since the traditional methods were thought to be inadequate. The assessment
centre method since then has been subjected to scrutiny and research much more than any other
personnel practice.5 Because of the high quality research and high reported validity, the
methodology finds widespread use in a number of organizations. Besides selection, it is used for
early identification of management talent, promotion, and diagnosis of developmental needs.

The basic purpose of Assessment Centre is:

(a) Making selection and promotion decisions; and
(b) Identify the strengths and weaknesses of an individual for development
purposes. The requirements of Assessment Centre are listed below:
1. Multiple assessment techniques must be used like in basket exercises, management
games, leaderless group discussions, tests, personality inventories etc.
2. Multiple assessors must be used. They can be line managers who are two
to three levels senior to the candidate and or professional psychologists.
3. Judgment should be based on pooling of information among assessors.
4. An overall evaluation of behavior should be made, separate from the observation of behavior.

5. Simulation exercises must be used.

3. Quality Circles
Quality Circles are (informal) groups of employees who voluntarily meet together on a
regular basis to identify, define, analyze and solve work related problems.
Usually the members of a particular team (quality circle) should be from the same work
area or who do similar work so that the problems they select will be familiar to all of them.
In addition, interdepartmental or cross functional quality circles may also be formed.

An ideal size of quality circle is seven to eight members. But the number of members in
a quality circle can vary.
The Main Objectives of Quality Circles are
Promote job involvement
Create problem solving capability
Improve communication

Promote leadership qualities

Promote personal development
Develop a greater awareness for cleanliness
Develop greater awareness for safety

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Improve morale through closer identity of employee objectives with

organizations objectives Reduce errors.
Enhance quality
Inspire more effective team work
Build an attitude of problem
prevention Promote cost reduction

Develop harmonious manager, supervisor and worker

relationship Improve productivity
Reduce downtime of machines and
equipment Increase employee motivation

Problem Solving Tools and Techniques Used by Quality Circles: Given below are
the most commonly used tools and techniques. These are called the old QC tools:
Brainstorming.
Pareto analysis.

Cause and effect diagram (or fish bone diagram or

Ishikawa diagram). Histogram.
Scatter diagram
Stratification

Check sheet
Control charts and graphs
New QC Tools: Quality circles started using additional seven tools as they started maturing. These are:

1.
2.
3.
4.
5.
6.
7.

Relations diagram.
Affinity diagram.
Systematic diagram or Tree diagram.
Matrix diagram.
Matrix data analysis diagram.
PDPC (Process Decision Program Chart).
Arrow diagram.
Benefits of QC:
Self development.
Promotes leadership qualities among
participants. Recognition.
Achievement satisfaction.
Promotes group/team working.
Serves as cementing force between management/non-management
groups. Promotes continuous improvement in products and services.
Brings about a change in environment of more productivity, better quality, reduced costs, safety

and corresponding rewards.

While some of the organizations have started practicing these ideas, a large number
are still waiting to see the effects elsewhere.
Given their significance in quality improvement and involvement of people, these ideas show
tremendous potential for widespread acceptance. The HR managers have the responsibility to
educate other managers about benefits coming from them and help them implement these ideas.
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The HR manager faces challenge to involve himself in all functional areas of an organization.
He will need training not only in human resources but in production, marketing, finance, etc., to
give him a greater understanding of the problems of employees in various functional areas.

Impact of Technology on HRM

Technological advances in office equipment over the past thirty years have enabled organizations to
improve operating efficiencies, improve communications, reduce costs, increase their global presence,
and gain competitive advantage through the implementation of information technology systems.

Since the 1960s, Information Technology has dramatically changed the landscape of the
workplace through advances in office equipment, speed of information transmission and
methods of communication. From a human capital perspective, Information Technology has
allowed companies and their employees to increase efficiencies, communicate more rapidly,
and work from remote locations. The ability of the workforce to perform organizational tasks
from a remote location also known as Telecommuting has enabled employees to improve
quality of life and manage the professional and personal aspects of their lives.

From an operational perspective, investments in Information Technology by organizations

willing to embrace technology have resulted in increased efficiencies, cost reductions,
global expansion, improved intra-company and customer communications, improved
reporting and tracking methods, and increased competitive advantage in the market place.
Computers loaded with word processing, spreadsheet analysis and presentation software programs have
become standard fixtures on each employees desk. Some of the workforce became mobile, conducting
business outside of the traditional office settings through the use of Personal Digital Assistants (PDAs), cellular
phones and laptop computers. The initial users of mobile technology were salespeople and executive
management; however, easier access to the internet allowed more employees to become Telecommuters,
who conducted work-related activities either from their homes or from some other remote location.

Technological advances in electronic communication may continue to decrease the need for
traditional office setting while increasing the number of telecommuters. Electronic capabilities will
also continue to affect outsourcing, off-shoring and globalization efforts by many organizations.
Collaboration technologies, currently being enhanced by Microsoft and IBM, enables companies to conduct
virtual meetings . In a virtual meeting, employees from remote locations conduct real-time meetings from their
own computers using peer-to-peer software. Participants can see one another on computer screens, share
computer space and make to product designs or contract documents via a virtual whiteboard.

Workforce Trends
a. Telecommuting: Telecommuting is working from ones home or some other remote location outside the
companys office. Telecommuting offers benefits to both employees and companies. For employees,
telecommuting increases quality of life by enabling a meshing of personal and professional lives. The ability to
work from home can assist workers with child/elder care issues, transportation restrictions, or employees who
may be physically unable to report to work on a daily basis due to health-related issues (e.g., need for regular
medical treatments such as dialysis or chemotherapy). Other economic benefits that companies can realize
from telecommuting include productivity gains, reduced absenteeism, reduced employee turnover costs,
reduced real estate costs, and reduced relocation costs to name a few.

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b. Globalization: In the future, multinational companies (corporations operating in more than one country) may
utilize telecommuting to attract local talent that can work effectively across international borders through
electronic communication. Training such home grown talent can allow companies to reduce international
relocation expenses, manage competition levels for talented resources, and reduce issues related to working
in foreign countries such as personal safety, security, political, and regulatory issues.
Reducing globalization efforts through telecommuting can help to address some of the issues related to
dealing with international workforces, such as language barriers, cultural relationship differences, and time
zone differences that often lead to companies needing to maintain continuous operations known as 24/7.
c. Outsourcing/Off-shoring: Outsourcing is defined as turning over all or part of an organizations
information systems operation to outside contractors or service providers. Outsourcing seems to be the wave
of the future. Many companies are outsourcing parts of their operations in order to move parts of their
businesses off site in order to focus on their core competencies and try to give them an advantage over their
peers. One of the more popular departments which are outsourced is the Human Resources Department. This
is because most companies arent focused on HR and their needs might be better served by an outside
company. There are advantages and disadvantages to outsourcing this vital department.

Offshoring refers to outsourcing in another country. Conceptually, outsourcing and offshoring can be viewed together, since both involve employing individuals outside of the
organization to handle operational work.
There are some major drawbacks to sending operations overseas, such as a loss of domestic talent, loss
of intellectual assets, decreased levels of customer satisfaction resulting from diminished organizational
values that do not translate across cultures, and threats to organizational performance

Advantages of Outsourcing
a) Cost Savings: The main benefit to outsourcing the HR department is the cost savings which will
be associated with such a move. These cost savings can manifest themselves in several ways.
Many times a company can get the same level of service for less cost. They can then use the
savings to reinvest in their business. By doing this, they might be able to hire more people or
operate more efficiently which might put them a step above their competitors.
b)

Regaining Primary Focus: Outsourcing also allows a company to regain its primary focus. When

there is an internal HR department, senior management may have to spend some time dealing with that
departments issues. This is time which might be better spent on whatever business the company is in. The
company as a whole will begin to shift toward its primary business.

Disadvantages of Outsourcing
a) Employee Morale: There are some drawbacks to outsourcing, however. The biggest of
these is the morale of the employees of the outsourcing company. Outsourcing is a loaded
word which brings connotations of sending jobs overseas and the loss of income. If the
employees arent behind the move to an offsite HR department, there may be less
productivity from them. Any company considering moving the HR department off site should
carefully gauge the attitude of the employees to get a feel for how this will affect them.
b) Loss of Expertise: Another disadvantage to this process is a loss of in-house expertise.
When there is an in-house HR department, any questions related to labor laws or benefits
can be answered quickly and sufficiently. If the HR is done off-site, it can cause a delay in
knowing how to proceed in an employee issue, or worse, a manager may act in conflict with
the law, opening the company up to bigger issues in the
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c) Issues with the Workplace of the Future: Security is the main issue facing companies with
mobile workforces. Employees in the field, such as salespeople or telecommuters, have access
to mission critical data and pose a significant threat to organizational systems security. There
are numerous potential breaches of security related to mobile electronic devices such as PDAs
and laptop computers that can be misplaced, stolen or damaged. The challenge facing IT
departments is to protect sensitive company data, enable secure remote access, and provide
user-friendly and productive electronic tools for its mobile workforce. IT departments must also
implement an education process for training employees not to use unauthorized devices or install
any unauthorized programs that might threaten the integrity of company data.

E-Human Resource Management

Nature of e-HRM
E-HRM is the relatively new term for this IT supported HRM, especially through the use of
web technology. The major goals of e-HRM are mainly to improve HRs administrative
efficiency/to achieve cost reduction. Next to these goals, international companies seem to
use the introduction of e-HRM to Standardize/ harmonize HR policies and processes.

Though e- HRM hardly helped to improve employee competences, but resulted in cost
reduction and a reduction of the administrative burden.
There is a fundamental difference between HRIS and e-HR in that basically HRIS are
directed towards the HR department itself. Users of these systems are mainly HR staff.
These types of systems aim to improve the processes within the HR departments itself,
although in order to improve the service towards the business. With e-HR, the target group
is not the HR staff but people outside this department: the employees and management.

HRM services are being offered through an intranet for use by employees. The
difference between HRIS and e-HR can be identified as the switch from the automation
of HR services towards technological support of information on HR services.
e-HRM is a way of implementing HR strategies, policies, and practices in organizations through a
conscious and directed support of and/or with the full use of web-technology-based channels. The word
implementing in this context has a broad meaning, such as making something work, putting something
into practice, or having something realized. e-HRM, therefore, is a concept - a way of doing HRM.

The e-HRM business solution is designed for human resources professionals and
executive managers who need support to manage the work force, monitor changes and
gather the information needed in decision-making. At the same time it enables all
employees to participate in the process and keep track of relevant information.
The e-HRM business solution excels in:
Modularity
The solution can be accessed and used in a web browser
Security of data, protected levels of access to individual modules, records
documents and their component parts
Parametric and customizability
Access to archived records and documents
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User-friendly interface
Connectivity with the clients existing information system (payroll accounting,
ERP, attendance registration, document systems)
Multi-language support
Advantages of the e-HRM business solution:
Gradual implementation
Adaptability to any client

Collection of information as the basis for strategic decision-making

Integral support for the management of human resources and all other basic and
support processes within the company
Prompt insight into reporting and analysis
A more dynamic workflow in the business process, productivity and
employee satisfaction A decisive step towards a paperless office
Lower business costs
e-HR Activities
We talk about using technology in HR functions. Here we focus on recruitment,
selection, training, performance management and compensation.
1. e- Recruitment: e- recruitment strategy is the integration and utilization of internet technology to
improve efficiency and effectiveness of the recruitment process. Most companies understand this
and have begun the evolution by integrating e-recruitment strategy into their hiring process.
e-Recruitment Methods: Methods of E-recruitment are many, among those the more important ones

are:
Job Boards: These are the places where the employers post jobs and search for candidates.
Candidates become aware of the vacancies. One of the disadvantages is, it is generic in nature.

Employer Websites: These sites can be of the company owned sites, or a site developed
by various employers. For an example, Directemployers.com is the first cooperative,
employer-owned e-recruiting consortium formed by Direct Employers Association. It is a non
profit organization formed by the executives from leading U.S corporations.

Professional Websites: These are for specific professions, skills and not general in
nature. For an example, for HR jobs Human Resource Management sites to be visited
like www.shrm.org. The professional associations will have their own site or society.

Advantages of e-Recruitment: e-recruiting offers several benefits to the firms practising it

1) Centralised Platform
Collects candidate information in a standard format.
Consolidate data from multiple recruitment sources.

2) Streamline Workflow
Automates workflow from job requisition to completion of the hiring process.
Captures and files candidate information and history for future retrieval by all users of the syatem.

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3) Better Communication and Increased Productivity

Shares knowledge and information between hiring team members online
in real time. Collaboration with colleagues to increase productivity.
4) Less Wastage of Paper

Electronically collects and files information to reduce

paper usage. Reduces manual administrative workload.
5) Candidates Pool
Locates qualified candidates within a private pool of talent with precision.
Centralized database collects and provides candidate information for various units and location.

6) Centralised Reports
Provides consolidated HR reports for the entire organization.
7) Save Cost and Time
Improves productivity and reduces hiring expenses in the long run.
Drawbacks of E-Recruitment
1) Require being Computer Savvy: The process is restricted within computer savvy candidates.

2) Legal Consequences: Alike other recruitment sources this source also should be aware of
the words used in the advertisements otherwise it may lead to the charge of discrimination.
3) Vast Pool of Applicants: This benefits the Organizations as well as it is disadvantage to
them also. Because the huge database cannot be scanned in depth. Either first few
candidates are called for interview or the resumes are screened based on some key words.

4) Non-serious Applicants: Lot of applicants forward their resumes just to know

their market value.
5) Disclosure of Information: Candidates profile and company details are available to
public. The applicants do not want their employer to know that they are looking for a
change. Phone number, address information has lead to many security problems. Again
the companies do not want their competitors always to know the current scenario.

Activity B:
1. Analyse the emerging trends in e-recruitment and prepare the report detailing the
challenges and opportunities for the organization.
2. e- Selection: Usually it is difficult to decide where recruiting ends and selection begins. The main
purpose of selection process is to distinguish individuals on the basis of important characteristics. In
a changing environment, the speed of selection process becomes very important. There are many
formal selection tools available to measure applicants on the characteristics:

Work Samples
Structured

Interviews

Personality inventories
Situational Judgment Tests
Cognitive Ability Tests

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e-selection process is a paperless process where electronic documents and information

can be quickly disseminated nationwide or worldwide.
3. e- Performance Management: e-performance management also known as Business
Intelligence (BI) or Business Performance Management is a growing field. Use of
technology in performance management leads to increment in productivity, enhances
competitiveness, and motivates employees. This is possible through two ways:

(i) Technology become a tool to facilitate the process of writing reviews or

generating performance feedback.
(ii) Technology may facilitate measuring individuals performance via computer monitoring activities.
Examples here include multirater appraising that supervisors or team members generate online, as
well as of-the shelf appraisal software packages that a construct an evaluation for a manager.

Technology can be applied in several ways in performance management. In the first place , routine
jobs can be subject to computerized performance monitoring (CPM) system that helps generate
performance data. Second , softwares are available that helps generate appraisal forms. Third,
performance management system can be integrated with an overall enterprise resource planning
system (ERP) software system. This helps HR professional to identify high performers, spot skill and
competency gaps and to analyze pay relative to performance. With this information being available,
HR manager can plan for training, coaching and education. Forth, firm intranets and internet may
also help performance management process. Fifth, stand-alone software packages are a great help
in performance management system. The greatest benefits of appraisal software are the elimination
of paperwork and simplification of the logistics for evaluators, workers and administrators.
4. e-Learning: e-Learning is the use of technology to enable people to learn anytime and anywhere. eLearning can include training, the delivery of just-in-time information and guidance from experts. 13

e-Learning is learning that takes place in an electronically simulated environment. e-Learning, webbased training, internet-based training and computer-based training are the next-generation
instruction methods being developed today. With e-Learning, users can immerse themselves in a
three-dimensional environment to further enhance their learning experience. Moreover, e-Learning
can be done anywhere and anytime as long as the user has the proper hardware. Today, e-Learning
is fast becoming a reality through companies like Trainersoft and others.

e-Learning can be done using an internet connection, a network, an intranet, or a storage

disk. It uses a variety of media like audio, text, virtual environments, video, and animation.
e-Learning, in some ways, is even better than classroom learning methods as it is a oneon-one learning method, it is self-paced and it has an experiential-learning format.
As with any other forms of learning, e-Learning depends on its delivery method and content
to ensure its success. For this reason, e-Learning modules have to be interesting,
interactive and informative in order to be effective. Because it is computer/software based
however, e-Learning has the capability of immersing its students completely within an
environment most conducive to learning. This sets it apart from classroom-style learning..

Advantages of e-Learning
1) Lower Costs and Larger Capacity
With e-Learning, students dont have to physically attend classes, seminars or
training programs. e-Learning is web-based and disk-based so participants dont
have to spend a lot of time away from their work. They can choose how much
time or what specific time to devote to learning the subject matter offered.
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A web-based e-Learning program is a lot less expensive to maintain. e-Learning program operators
need only maintain the networking infrastructure that will deliver their e-Learning content to their
students and participants. This is a small investment compared to what is required to pay for
instructors and training personnel in classroom-style learning. Moreover, participants need not spend
money on travel and other expenses just to attend seminars and training courses.

e-Learning also allows for more participants than traditional learning methods
since the number of participants is not constrained by venue limitations.
2) Convenient Learning
Students can fit their learning activities easily with their daily routine. They need not leave home
to participate in an e-Learning program and learning does not require complex logistics. All a
participant needs is a computer, internet connectivity, access to the web-based server, and if
necessary, the special e-Learning software provided by the e-Learning program operators.

3) Easily Updated and Upgraded

e-Learning modules can be easily revised. Activities can be easily added and incorporated.
The e-Learning software can also be automatically updated by connecting to the server. This
is definitely a lot faster than retraining professors and reprinting books and manuals.14

Class work can be scheduled around personal and professional

work Reduces travel cost and time to and from school

Learners may have the option to select learning materials that meets their
level of knowledge and interest
Learners can study wherever they have access to a computer and Internet
Self-paced learning modules allow learners to work at their own pace
Flexibility to join discussions in the bulletin board threaded discussion areas at
any hour, or visit with classmates and instructors remotely in chat rooms
Different learning styles are addressed and facilitation of learning occurs through varied activities

Development of computer and Internet skills that are transferable to other

facets of learners lives
Successfully completing online or computer-based courses builds self-knowledge
and self-confidence and encourages students to take responsibility for their learning

Disadvantages of e-Learning
Unmotivated learners or those with poor study habits may fall behind
Lack of familiar structure and routine may take getting used to
Students may feel isolated or miss social interaction
Instructor may not always be available on demand
Slow or unreliable Internet connections can be frustrating
Managing learning software can involve a learning curve

Some courses such as traditional hands-on courses can be difficult to simulate

Knowing e-learning advantages and disadvantages helps with learning software
selection as well as online distance learning programs structure and selection. It is
important to know the merits and demerits of e-learning to make a decision..
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Challenges before HRM

The HR Managers of today may find it difficult because of the rapidly changing business environment and
therefore they should update their knowledge and skills by looking at the organizations need and objectives.

1. Managing the Vision: Vision of the organization provides the direction to business strategy and
helps managers to evaluate management practices and make decisions. So vision management
becomes the integral part of the process of Man management in times to come .
2.

Internal Environment: Creating an environment which is responsive to external changes, providing

satisfaction to the employees and sustaining through culture and systems is a challenging task.

3. Changing Industrial Relations: Both the workers and managers have to be managed by the
same HRM Philosophy and this is going to be a difficult task for the managers of tomorrow.

4. Building Organizational Capability: Even in the adverse circumstances the employees

have to be made to live in psychological state of readiness to continually change.
5. Job Design and Organization Structure: Instead of depending on foreign concepts we need to focus
on understanding the job, technology and the people involved in carrying out the tasks.

6. Managing the Large Work Force: Management of large workforce poses the
biggest problem as the workers are conscious of their rights.
8. Employee Satisfaction: Managers should be aware of techniques to motivate
their employees so that their higher level needs can be satisfied.
9. Modern Technology: There will be unemployment due to modern technology and this
could be corrected by assessing manpower needs and finding alternate employment.

10.Computerized Information System: This is revolutionary in managerial

decision making and is having impact on coordination in the organization.
11. Managing Human Resource Relations: As the workforce comprises of both educated
and uneducated, managing the relations will be of greatchallenge. One of the
challenges HR managers face is issues of up gradation of the skill set through training
and development in the face of high attrition. Indian companies are recognizing their
responsibilities to enhance the employees opportunity to develop skills and abilities for
full performance within the position and for career advancement.

HRM Practices In India

Indias Changing HRM Horizon
The outlook to Human Resource Management in India has witnessed sea-change in last two
decades. Economic liberalization in 1991 created a hyper-competitive environment. As
international firms entered the Indian market bringing with them innovative and fierce
competitiveness, Indian companies were forced to adopt and implement innovative changes in
their HR practices. Increasing demand for skilled performers forced the companies to shift focus
on attracting and retaining high-performing employees in a competitive marketplace.

Emphasis on Employees: Human Resource policies, forming the framework for the
culture in the business management, create awareness towards the need to achieve
the business goals in the best possible and 206

ethical manner. Indian companies have realized that in todays competitive business milieu, the
quality of people you employ can make all the difference. In the last few years, the Human
Resource has become a key player in strategic planning it has come a long way from
traditional HR operations like managing the recruitment process, handling staff appraisals.

HRM Challenges: One of the challenges HR managers face is issues of up gradation of

the skill set through training and development in the face of high attrition. Indian companies
are recognizing their responsibilities to enhance the employees opportunity to develop
skills and abilities for full performance within the position and for career advancement.
Progressive HR Policies: Today, most Indian companies are committed to providing equal
employment opportunities for both men and women. The employers are increasingly realizing the
value of trained human resource, especially women in India. Some organizations are changing their
HR policies to stick with their valuable employees. MNCs like Pepsico are providing flexibility so that
female employees at various life stages could benefit from these policies like working from a
different city, sabbatical from corporate life, and extended maternity leave.
Entrepreneurship by Employees: India Inc. is encouraging intrapreneurs or employees who have
ideas that could potentially become a venture. Companies like Pepsico, NIIT, and Adobe are actively
promoting practice of entrepreneurship by employees within the organization. Human Resource
Management has taken a leading role in encouraging corporate social responsibility activities at all
levels. Companies like Wipro inculcate corporate social responsibility values amongst its workforce
right at the beginning during the induction process. Corporate presentations and keeping employees
updated through regular newsletters are the instruments used by HR to keep employees energized
about the organizations socially responsible initiatives.
Over the last decade, Indias vast manpower has played an instrumental role in its economic success
story. Indeed, the success of Indian companies is not based on superior access to raw materials or
technology or patents, but fundamentally upon human skills. The synergy between the strategic planning
and innovative HRM practices will be important as Indian Industries embarks itself on the global journey.