Concept of HRM

HRM is concerned with the peoples dimension in the organization Facilitating the competencies and retention of skilled force

Developing management systems that promote commitment

Developing practices that foster team work

Making employees feel valued and rewarded

Definition
Human Resource Management may be defined as set of policies, practices and programmes designed to maximize both personal and organizational goals. According to Flippo, HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished

Characteristics of HRM
1. 2. 3. Comprehensive function Includes managing all types of people at all levels in the organization People oriented Concerned with employees Action oriented Focuses on action rather than on record keeping Individual oriented Development oriented Pervasive function Inherent in all organizations and at all levels. It permeates all the other functional areas Continuous function Ongoing i.e. never ending exercise

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Contd..
8. 9. 10. Future Oriented HRM is concerned with helping an organization achieve its objectives in the future by providing for competent an motivated employees Challenging function Due to dynamic nature of people Science as well as Art It is a science as it contains an organized body of knowledge consisting of principles and techniques. It is also an art because it involves application of the theoretical knowledge to the problems of HR Staff function Advisory in nature Young discipline Interdisciplinary HRM involves application of knowledge drawn from several disciplines like sociology, anthropology, psychology, economics etc. Nervous System Embedded in the structure

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Personnel Management and HRM

Early employee specialists were called Personnel managers (or Personnel administrators), and this term is still in use. Personnel management (PM) refers to a set of functions or activities (e.g. recruitment, selection, training, salary administration, industrial relations) often performed effectively but with little relationship between the various activities or with overall organization objectives. On the other hand, HRM has existed in one form or another since the beginning of time. Certain HR functions, even though informal in nature, were performed whenever people came together for a common purpose. In recent decades, however, the processes of managing people have become more formalized and specialized. As a result, a growing body of knowledge about these processes has been accumulated by practitioners and scholar

Objectives of HRM
Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness Functional objectives To maintain the departments contribution at a level appropriate to the organizations needs Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization

Objectives

To help the organization attain its goals by providing welltrained and well-motivated employees. To employ the skills and knowledge of employees effectively and efficiently To enhance job satisfaction and self-actualisation of employees To bring about maximum individual development of members of the organization by providing opportunities for learning and advancement To develop and maintain a quality life (QWL) which makes employment in the organization a desirable personal and social situation To maintain high morale and good human relations within the organization To recognize and satisfy individual needs and group goals by offering appropriate monetary and non-monetary incentives

HRM and 3 Ps
People core strength of an organization. Any resource can be replaced but not HR Processes evolve over a period of time. IT enabled environment facilitates engineering effortlessly Performance the pillars of performance are people and IT. Organizational performance in terms of value creation and return on investment

FUNCTIONS OF HR
MANAGERIAL FUNCTIONS Planning Organizing Directing Controlling OPERATIVE FUNCTIONS Procurement Development Compensation Maintenance

Integration

Managerial functions
1. Planning : A plan is a predetermined course of action. Planning is the process of deciding the goals and formulating policies and programmes to achieve the goals. It involves forecasting and research Organizing : In order to implement the plans, a sound organization structure is required. Organizing is the process of allocating tasks among the members of the group, establishing authority-responsibility relationship among them and integrating their activities towards the common objectives Directing (Initiating action) : Process of motivating, activating, leading and supervising people. Includes all those activities by which a manager influences the action of subordinates Controlling : It implies checking, verifying and regulating to ensure that everything occurs in conformity with the plans adopted and the instructions issues. This is done to minimize the gap between the desired results and actual performance

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Operative functions
1. Procurement function Consists of following activities a. Job Analysis b. HRP c. Recruitment d. Selection e. Placement f. Induction or Orientation

2. Development function a. Performance and potential appraisal b. Training and Development c. Career Planning and Development 3. Compensation function a. Job Evaluation b. Wage and Salary Administration c. Bonus

4. Integration function It is the process of reconciling the goals of the organization with those of its members. Includes Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining

5. Maintenance function - It is concerned with protecting and promoting the physical and mental health of employees. Includes Health, Safety, Welfare, Social security

Scope of HRM
The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows

1. Human resources planning :Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design :Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements
3. Recruitment and selection Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM.

4. Orientation and induction :Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. 5. Training and development :Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount 6. Performance appraisal :Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.

7. Compensation planning and remuneration :There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8. Motivation, welfare, health and safety :Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department.
9. Industrial relations :Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.

Scope : Indian Institute of Personnel Management

1. The Labor or Human Resource Aspect : It is concerned with manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training and development, remuneration, incentives and productivity The Welfare Aspect : This aspect is concerned with working conditions and amenities such as canteen, crches, rest rooms, housing, transport, education, medical help, health and safety, washing facilities, recreation and cultural facilities etc. The Industrial Relations Aspect : This is concerned with the companys relations with the employees. It includes, union-management relations, collective bargaining, grievance handling, settlement of industrial disputes etc.

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Importance of HRM
The significance of HRM can be discussed at four levels corporate, professional, social and national Significance as an Enterprise : HRM can help an enterprise in achieving its goals more efficiently in the following ways a. Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation and promotion policies b. Developing the necessary skills and right attitude among the employees through T&D, PM etc. c. Securing willing cooperation of employees through motivation, participation, grievance handling etc. d. Effectively utilizing the available human resources e. Ensuring that the enterprise will have in future a team of competent and dedicated employees

Professional Significance : Contributes to the professional growth in the following ways a. Providing maximum opportunities for personal development of each employee b. Maintaining healthy relationships among individuals and different work groups c. Allocating work properly a. b. c. Social Significance : HRM helps to enhance the dignity of labour in the following ways Providing employment that leads to social and psychological satisfaction of people Maintaining a balance between the jobs available and the jobseekers in terms of numbers, qualifications, needs and aptitude National Significance : The effective exploitation and utilization of a nations natural, physical and financial resources require an efficient and committed manpower. The level of development in a country depends primarily on the skills, attitudes and values of its human resources.

Processes in HRM
The following are the various HR processes: 1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff) 2. Employee remuneration and Benefits Administration 3. Performance Management 4. Employee Relations

 Human Resource Planning: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and Layoff. 1. Recruitment: It aims at attracting applicants that match a certain Job criteria. 2. Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise and potential for a certain job. 3. Hiring: Deciding upon the final candidate who gets the job. 4. Training and Development: Those processes that work on an employee onboard for his skills and abilities up gradation.

 Employee Remuneration and Benefits Administration: The process involves deciding upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in any job and therefore the importance of this process. Performing employees seek raises, better salaries and bonuses.
Performance Management: It is meant to help the organization train, motivate and reward workers. It is also meant to ensure that the organizational goals are met with efficiency. The process not only includes the employees but can also be for a department, product, service or customer process; all towards enhancing or adding value to them. Nowadays there is an automated performance management system (PMS) that carries all the information to help managers evaluate the performance of the employees and assess them accordingly on their training and development needs

 Employee Relations: Employee retention is a nuisance with organizations especially in industries that are hugely competitive in nature. Though there are myriad factors that motivate an individual to stick to or leave an organization, but certainly few are under our control. Employee relations include Labor Law and Relations, Working Environment, Employee heath and safety, Employee- Employee conflict management, Employee- Employee Conflict Management, Quality of Work Life, Workers Compensation, Employee Wellness and assistance programs, Counseling for occupational stress. All these are critical to employee retention apart from the money which is only a hygiene factor. All processes are integral to the survival and success of HR strategies and no single process can work in isolation; there has to be a high level of conformity and cohesiveness between the same.

History of HRM
Modern HRM has emerged through many stages 1. The Industrial Revolution : It mainly consisted of the development of machinery, linking of power to machines and establishment of factory system and mass production. The place of work shifted from residence to factory. Increased mechanization and specialization made jobs routine and monotonous Labor was looked upon as a commodity that could be bought and sold Due to then prevailing political philosophy of laissez faire, government did little to protect the workers

2. Trade Unionism : The basic philosophy underlying trade unionism was that through collective support, the management could be forced to redress their grievances. Unions used strike, slowdowns, walkouts, picketing, boycotts and sabotage for this purpose Trade union management gave rise to several personnel practices like collective bargaining, grievance handling system, arbitration, disciplinary practices, employee benefit programmes etc.

3. Scientific Management : It was a development of far reaching significance to HRM. F.W.Taylor developed four principles of scientific management a. Development of true science b. Scientific selection and training of workers c. Friendly cooperation between management and workers d. Development of every worker to his fullest potential Scientific Management movement has a great influence on management, particularly on employer employee relations. It led professionalization of management, human engineering etc.

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Industrial Psychology : Industrial psychologists stressed matching of employee skills with jobs. Hugo Munsterberg contributed significantly to analysis of jobs in terms of their mental and emotional requirements and development of testing devices. Advances took place in selection, placement, testing, training etc. Human Relations Movement : Hawthorne experiments and subsequent research focused attention on the attitudes and feelings of workers and their influence on productivity. While scientific management viewed an organization as a technoeconomic system, the human relations movement considered it as a social system. It was suggested that inter-personal relations should be improved to realize fuller potential of individuals and groups. Human and social factors exercised greater influence on employee morale and productivity than working conditions.

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6. Behavioral Sciences : This era led to the development of new techniques of motivation and leadership like job enrichment, employee participation, two way communication, MBO etc. Maslow, Herzberg, Likert and others made significant contributions to the development of behavioral sciences 7. Human Resource Specialist and Employee Welfare : With the dawn of welfare era, scope of HRM increased. In addition to recruitment ,selection and training of employees, it also manages employee benefit programmes and industrial relations systems in the industry.

Evolution of the concept of HRM

Modern concept of HRM has developed through following stages 1. The Commodity Concept : 2. The Factor of Production Concept 3. The Paternalistic Concept 4. The Humanitarian Concept 5. The Behavioral Human Resource Concept 6. The Emerging Concept

1. The Commodity Concept : Before the industrial revolution, the guild system was the beginning of HRM. Guild was a closely knit group concerned with selecting, training, rewarding and maintaining workers. Industrial revolution gave rise to the factory system. Due to the separation of owners from managers, close-relationships between owner and employees were broken. Labor began to be considered a commodity to be bought and sold. 2. The Factor of Production Concept : Under this concept, employees were considered a factor of production just like land, materials and machinery. Taylors scientific management stressed proper selection and training of employees so as to maximize productivity. However, this concept was an improvement in so far as employees gained through better working conditions and higher earnings.

3. The Paternalistic Concept : Employees organized together on the basis of their common interest and formed trade unions. The growing strength of democracy gave impetus to collective bargaining. It was also recognized that workers had the right to protection in the employment. Due to all these forces, employers began to provide schemes to workers. 4. The Humanitarian Concept : This approach is based on the belief that employees had certain inalienable rights as human beings and it was the duty of the employer to protect these rights. Hawthrone experiments generated considerable interest in human problems of the workplace. Therefore, this approach is also known as human relations concept.

5. The Behavioral Human Resource Concept : Motivation, group dynamics, organizational climate, organizational conflict etc. became popular concepts. Employees began to be considered as valuable assets of an organization. Efforts were made to integrate employees with the organization so that organizational goals and employee aspirations could be met simultaneously. 6. The Emerging Concept : Now employees are considered as partners in the industry. They are gradually being given share in companys stock membership. This emerging trend is aimed at creating a feeling among workers that the organization is their own.

Roles of a HR Manager
1. As a specialist As a specialist, he advices the heads of different functional departments on various aspects of HRM 2. As an information source The HR manager provides valuable information about labour market, labour laws and other related areas 3. As a change agent Serves as an internal change agent to initiate and spearhead necessary improvements in HR practices. He helps in introducing and implementing major institutional changes in the organization 4. As a controller The HR manager assists line managers in effective implementation of HR policies and programmes

5. As a Liaison Man HR manager acts as a linking pin between different departments/divisions of an organization 6. As a housekeeper The HR manager looks after the safety, welfare etc. of employees 7. As a fire fighter In union-management relations, the HR manager acts a shock absorber. He is the management's defence against trade union activists

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Business Mastery : HR professionals need to know the business of their organization thoroughly. This requires understanding of its economic and financial capabilities so that they can join the team of business managers in order to develop the firms strategic direction. 2. HR mastery : In areas such as staffing, development, appraisal, rewards, team building and communication, HR professionals should develop competencies that keep them abreast of changes. 3. Change Mastery : HR professionals have to be able to manage change processes so that HR activities are effectively merged with the business needs of the organization. This involves interpersonal and problem-solving skills, as well as innovativeness and creativity.

Competencies/Qualities of HR Manager

4. Personal Credibility : HR professionals must establish personal credibility in the eyes of their internal and external customers. Credibility and trust are earned by developing personal relationships with customers, by demonstrating the values of the firm and by being fair-minded in dealing with others.

Responsibilities of HR Manager
1. Advice and counsel : The HR manager often serves as an in-house consultant to supervisors, managers, and executives. Given their knowledge of internal employment issues as well as their awareness of external trends, HR managers can be an invaluable resource for making decisions. Service : HR managers also perform a host of services activities such as recruiting, selecting, planning, conducting training programs, hearing employee concerns and complaints etc. Technical expertise in these areas is essential for HR managers and forms the basis of HR program design and implementation. Policy formulation and implementation : HR managers generally propose and draft new policies or policy revisions to cover recurring problems or to prevent anticipated problems. Employee advocacy : HR managers also have to serve as an employee advocate listening to employees concerns and representing their needs to managers. An effective employee relation provides a support structure when disruptive changes interfere with normal daily activities

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HRM Models
1. The Fombrun, Tichy and Devanna Model 2. The Christopher Mabey Model (HR competency model) 3. The Harvard Model 4. The Guest Model 5. The Warwick Model

Being the first Model (1984), this model emphasizes on just four functions and their interrelatedness. These for functions are Selection, appraisal, development and rewards. These four components are expected to contribute to organizational effectiveness. The Fombrun model is incomplete as it focuses on only four functions of HRM and ignores all environmental and contingency factors that impact HR functions.

The Harvard Model claims to be comprehensive as it comprises six critical components of HRM 1. The Stakeholders interest recognize the importance of trade offs between the interests of the owners and those of employees. This is a challenge for HR Managers as they need to balance the interest of all stakeholders 2. The Situational factors influence managements choice of HR strategy. The factors included in the model are : work force characteristics, management philosophy, labor market, task, technology, laws and social values. These factors influence the HR strategy and thus their inclusion in the model is relevant 3. HRM policy choices emphasizes that the managements decision and action in terms of HRM can be fully appreciated only if it is recognized that they result from an interaction between constraint and choices. The model depicts management as a real actor, capable of making at least some degree of unique contribution within environmental and organizational parameters themselves over time.

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Organizational commitment, employee competence, congruence and cost effectiveness constitute HRM outcomes. The assumption is that employees have talents which are rarely exploited for organizational growth and that they are willing to grow with the organization if a participative environment is available Long term consequences include societal well being, organizational effectiveness, and individual welfare. Employee welfare leads to organizational effectiveness and efficacy of all organizations contributes to societal well-being The feedback loop is the sixth component. Situational factors influence HRM policy and choices, and are influenced by long term consequences. Similarly, stakeholders interest influence HRM policy choices, and inturn, are impacted by long term consequences.

This model claims that the HR manager has specific strategies to begin with, which demand certain practices and when executed, will result in outcomes. These outcomes include behavioral, performance related and financial The model emphasizes the logical sequence of six components. Looking inversely, financial results depend on employee performance, which in turn is the result of action oriented employee behaviors. Behavioral outcomes are the result of employee commitment, quality and flexibility, which, inturn, are impacted by HR practices. HR practices need to be in tune with HR strategies which are invariably aligned with organizational strategies. The claim of the Guest Model, that it is superior to others is partly justified in the sense that it clearly maps out the field of HR and delineates the inputs and outcomes. How HRM can contribute to organizational effectiveness is clearly shown in the model. But the dynamics of people management are so complex that no model can capture them comprehensively.


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The Warwick proposition centers around five elements :

Outer context (macro environmental forces) Inner context (firm specific or micro environmental forces) Business strategy content HRM context HRM content The model takes cognizance of business strategy and HR practices (as in the Guest Model), the external and internal context (unlike the Guest Model), in which these activities take place, and the process by which such changes take place, including interactions between changes in both context and content. The strength of the model is that it identifies and classifies important environmental influences on HRM. It maps the connection between the external and environmental factors and explores how HRM adapts to changes in the context.

The soft and Hard HRM Models

Guest (1987) identified two versions of HRM which he referred to as soft and hard. Soft HRM This model proposes that: Employees are not like any other resource because they think and react Employees should participate in decision making Employees need opportunities for personal growth and advancement Employees needs for empowerment and influence should be consistent with the overall business strategy and management philosophy HRM should encourage high employee commitment to the organization There should be high workforce flexibility and adaptability From the foregoing soft HRM is more developmental oriented with a humanistic focus based on explicit statements about the value of employees. Employees are seen as active partners who are a recreative and innovative rather than passive inputs. An organization practicing soft HRM would be expected to stress the importance of employee commitment, trust and loyalty. The values of soft HRM are consistent with the Harvard model

The Hard HRM Model The hard HRM model is more consistent with the Michigan Model developed by Fombrun et al(1984) which emphasizes matching employees with the organizations business strategies. Legge (1995) refers to it as strategic HRM. The model proposes that: Employees are just like any other factor of production in the input output equation Need to improve employee utilization by using them cost effectively Employee interests are the same those of the organization (unitarism) Concerned with developing direct links with individuals rather than trade unions Employees are more involved in improvement of quality and productivity rather than business decision making

 Hard HRM assumes that the needs of the firm are paramount and increasing productivity is the managements principle reason for improving efficiency. It also assumes that organizational needs come first.

Competitive Challenges and HRM

1. Technological changes 2. Workforce Diversity 3. Employee Empowerment 4. Managing Protean Careers 5. Moonlighting Phenomenon

Technological Changes

Technology is the practical application of science to commerce or industry; the study of or a collection of techniques; a particular technological concept; the body of tools and other implements produced by a given society (Luck, 2010). Technology is here and will continue to progress. To understand the role technology plays on todays HRM we first have to understand business technology. According to Luck (2010): It is no longer enough for HRM to maintain a narrow operational focus, view its activities as restricted to the limits of its own organization, or to limit itself to traditional human resource (HR) responsibilities. HRs should go above and beyond. The HR field has evolved over time and nowadays HR is under more scrutiny and is more accountable than ever. There is little room for mistakes, which can be overwhelming costly. HRs these days and in the near future have a greater importance in the strategic business partnership with the organization, and for this challenge to be won there is an increasing need for technology to be inserted on its daily operations and on its decisionmaking considerations.

The Impact of Technology in Human Resource Management Ivancevich (2001) wrote that prior to the Industrial Revolution most people worked either close to or in their homes. However, mass production technologies changed this and people began to travel to work locations or factories. Today, with increased computer technology, there is a move for many to work from anywhere; people are no longer necessarily anchored to one place. Computer technology, especially the Internet, changed that. The trends in technology which directly or indirectly have an impact in HRM are: Growth in knowledge needs - World trade is growing over three times faster in knowledge-intensive goods and services such as biomedicine, robotics, and engineering Shift in human competencies - Some predict that in 2015 almost all net employment growth will be in knowledge workers Global market connection - Technology is dissolving borders and creating an interconnected marketplace

Business streamlining : Easy to use communication, electronic mail, electronic conferencing, and databases are creating instantaneous dissemination of data to make better decisions to geographically dispersed workers Rapid response :Technology permits quicker communications, which allows faster decisionmaking Quicker innovation :Teams of marketing, engineering, and production personnel working in parallel with computer provided files, data, and information develop products faster Quality improvement :The concept of building quality into the entire process of making, marketing, and servicing is enhanced by computer monitoring systems and through robotics Human Resource Information Systems (HRIS) Mathis and Jackson (2003) explained HRIS as an integrated system providing information used in HR decision making An HRIS serves two major purposes in organizations: (1) improves the efficiency with which data on employees and HR activities are compiled; (2) having accessible data enables HR planning and managerial decisions making to be based to a greater degree on information rather than relying on managerial perceptions or intuitions

Technological Changes and HRM

EVOLUTION OF HUMAN RESOURCES TECHNOLOGY Stages in the Evolution of HR Technology Stage 1: Paper-Based Systems Initially HR systems were paper-based. These systems operated independently and did not integrate with any other business-related functions. Features were added as needed. Data were typically stored on mainframe computers, the reporting was very rudimentary, and HR was the sole custodian of the data. It was common for managers during this period to send employees to HR to get their all their personnel questions answered.

Stage 2: Early Personal Computer (PC) Technology In the next stage, there was a migration of the information resident in these paper-based systems to PCs and local area network (LAN) systems. These HR databases were able to produce reports that simply listed tombstone data, meaning basic employee information. Advances in database technology included payroll and some very basic versions of employee tracking. Stage 3: Electronic Database Systems The next stage began with the emergence of relational database technology. A relational database means that a piece of data can be stored in more than one file, each one containing different types of data. The different files can be linked so that information from the separate files can be used together. A relational database allows databases to be established in several different locations and the information linked. This technology provided organizations with the ability to develop more complex reports that integrated several data elements. For example a report could be generated from different databases that included name, address, and salary and benefit information

Stage 4: Web-Based Technology At the present time, many companies have started to embrace HR technology. The benefits of automation are becoming widely known to HR and other areas of the business. The focus has shifted to automating as many transactions as possible to achieve effectiveness and efficiencies. Call centres and interactive voice response systems are widely used by organizations. Web-based applications use a Web browser as a user interface (called the front-end). Users can access the applications from any computer connected to the Internet via a secure, password-protected login page and from that point forward all the data are encrypted. For the most part, the HR department continues to be the owner and custodian of HR information but others have begun to recognize the value of this information to the business. The reports that HR is able to produce have become more sophisticated. At this point, the majority of systems are still not Web-based, but some leading-edge organizations have embraced this technology.

Workforce Diversity and HRM

Workforce diversity means employees of an organization differ from each other in terms of age, gender, education, language etc. Factors contributing to Workforce Diversity 1. Race and ethnicity 2. Country of birth 3. Physical and mental disability 4. Age 5. Gender 6. Economic Background 7. Education background 8. Skill level 9. Sexual preference 10. Religious affiliation 11. Experience

Implications for HRM 1. Increasing number of women in the workforce require more flexible work schedules, child care facilities, maternity leave, transfer to husbands place of posting 2. Aging workforce creates problems of better health care facilities and higher pension costs 3. Paternalistic approach has given way to employee empowerment 4. There is a need to remove all intended and unintended discriminations on the basis of sex so as to avoid cases of sexual harassment 5. Organizations now need to understand and appreciate the changing values of young people. Life long employment, loyalty toward the organization and commitment to work can no longer be taken for granted. Appropriate changes in HR policies and programmes are needed to attract and retain young talent

6. A centralized and uniform approach needs to be replaced by a decentralized and plural system. Work life balance needs to be given importance 7. HR professionals need to design and use new employee benefits grievance redressal mechanisms and participation plans to overcome alienation, demotivation, poor morale and other types of counter productive behavior.

Managing Protean Careers

Two trends have changed the world of work in many ways. The first is the shift towards a knowledge based economy that many countries are seeing and the second is global connectivity, interdependence and integration. The new career context that is emerging as a result of these trends has given rise to the terms - Protean and Boundaryless careers

Protean careers Companies are operating in a more complex (knowledgebased/global) environment, which is constantly changing. They need to be flexible and nimble in order to stay in business and hence many companies have given-up the idea of keeping employees for a lifetime. By doing, so they have transferred the responsibility and risk of managing careers to the individual. So in order to survive this change, individuals need to become more self-reliant in managing their careers. This means knowing what they want from their careers, developing the skills/knowledge/network that is necessary to achieve their goals and being able to 'change with change'. Hence the term Protean career, the origin of which comes from Proteus, a Greek sea-god who could change in form as the situation demanded. A more formal definition is provided below:

 "The protean career is driven by the person, not the organization, based on individually defined goals, encompassing the whole life space, and being driven by psychological success (rather than) objective measures of success such as pay, rank or power. It is a career in which the person is (1) values driven in the sense that the individual's personal values provide the guidance and measure of success for the individual's career, and (2) selfdirected in personal career management-having the ability to be adaptive in performance and learning demands."

 Boundaryless careers Another result of these changes is the move towards more 'boundaryless' careers, which involve a sequence of job opportunities that go beyond single employment settings. It involves the breaking down of traditional boundaries (for example job boundaries of specialist functions and skills), organisational careers which progress independently of well trodden career paths and the social boundaries separating work and family roles.

EMPLOYEE EMPOWERMENT

 Empowerment means allowing a person to run the show by himself. Empowered employees become self-directed and self-controlled. This is possible only when there is mutual trust between the superior and his subordinates. Empowerment means encouraging and allowing individuals to take personal responsibility for improving the way they do their jobs and contribute to the organizations goals. It requires the creation of a culture which both encourages people at all levels to feel that they can make a difference and helps them to acquire the confidence and skills to do so. - Richard Carver Empowerment is any process that provides greater authority through sharing of relevant information and the provision of control over factors affecting job performance. John Newstrom and Keith Davis

Delegation vs Empowerment Delegation is actioned by the manager whereas empowerment is actioned by the subordinate. In delegation, the superior exercises control but in empowerment the subordinate exercises self-control. TYPES OF EMPOWERMENT 1. Individual level empowerment This means the degree of control exercised by individual employees over work setting. 2. Group level empowerment Refers to the amount of control exercised by the group as a whole over the work setting

Elements of Empowerment 1. Sense of control over ones immediate work situation 2. Self sufficiency or Competence : The feeling that one is capable of successfully performing a particular task. Employees will not accept responsibility for making decisions until they are confident of their abilities. 3. Meaningfulness : It means the feeling that the task is valuable both to the organization and to oneself. Employees know their know how their tasks fit into larger scheme of things. 4. Impact : It refers to the belief that one has an influence on decisions of the organization. Impact is felt when employees perceive that their behavior has caused important outcomes.

Approaches to Empowerment
Bowen and Laurel have suggested five approaches to Empowerment 1. Helping employees achieve job mastery giving training, coaching and guided experience that are required for initial success. 2. Allowing more control giving employees discretion over job performance and making them accountable for the performance outcomes 3. Providing successful role models allowing them to observe peers who are performing successfully on the job 4. Using social reinforcement and persuasion giving promise, encouragement and verbal feedback to raise confidence 5. Giving emotional support reduction in stress and anxiety through better role prescription, task assistance and personal care

Importance of Empowerment
1. 2. 3. 4. Knowledge Workers Knowledge employees are not prepared to accept the old command and control systems. They want job environment which provides them opportunities to exercise control over work related decisions. This also helps in employee retention Cut throat competition For meeting the needs of customers effectively in this competitive era, cross functional working and cooperation is required. Empowerment can provide such cooperation Speed and Flexibility Empowerment encourages innovation and creativity on part of the employees and they can focus more on external changes than internal problem-solving Globalization Economic liberalization and globalization are leading to downsizing, delayering and decentralization. In order to achieve coordination and control in the new economy, employees must exercise much greater responsibility. Human Resource Development (HRD) - Empowerment helps to reveal and utilize untapped potential of employees.

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Barriers to Empowerment
1. Incongruent Organizational Culture : An authoritarian organizational culture works as an impediment to employee empowerment. In such a culture, authority is centralized at the top and there is lack of meaningful sharing of authority. Empowerment cannot be effective in such kind of an organizational setup. Love for Authority : Power hungry managers find it tedious to empower the staff. Such kind of managers are autocratic and want to make their importance felt in the organization and maintain tight control over subordinates. Fear of Retribution by Superiors : A manager may not empower his employees if he is punished for each and every failure or mistake of his subordinates. Fear of a Retribution by Subordinates : Empowerment cannot flourish when there is fear in the mind of subordinates that they will be punished for taking initiative. Dependency of subordinates : Some subordinates always feel comfortable with command and control by the boss. In such cases, empowerment is difficult.

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5.

Making Empowerment Effective

Following factors can be considered to make an empowerment effective : 1. Impact : When an employee feels that the completion of task will task will make a difference, such a task has impact on his performance 2. Competence : When the employee has the ability, skills and knowledge to perform a task, he feels the sense of competence 3. Meaningfulness : When the employee feels that the task assigned to him is worthwhile, he develops a sense of meaningfulness in the job

Example Employee Empowerment at Nestle

By increasing the responsibility levels and skill sets of our employees, Nestle has been able to reduce accidents, waste, unplanned stoppages, quality defects and consumer complaints, and improve productivity. For example, Nestl Continuous Excellence (NCE) has helped the Nanjangud factory in India, where they produce instant coffee and health beverages, to: reduce laminate waste by 35% and powder waste by 87%; reduce shift-end cleaning times by 44%; increase mean time between operational failures by 68%; reduce minor operation stoppages by 25%; improve line performance by 8%.

At Google
Google: empowers their employees to utilize 20% of their time each day to work on independent projects (that have nothing do to with Google). Here is the irony: the 20% of freedom - now accounts for almost 50% of Google's annual new product introductions.

Moonlighting Phenomenon
A prominent aspect in western countries which is underplayed, debatable and avoided subject in India, Moonlighting, where employees either hold a second job in addition to the primary one or hold multiple jobs. Generally, moonlighters holding a second, part-time job work at nights after hours of daily work or on weekends, there are numerous, varied reasons for moonlighting, the primary reason being extra income.

Reasons for moonlighting

Apart from additional earnings individuals crave to gain experience in different jobs in different environments prior to making a final career decision or like to gain more work experience or utilize second jobs to delve into career changes. The day's moonlighters also explore the possibilities of entrepreneurial opportunities or want to satisfy their passion/interest or take benefit of learning a specific skill in another field. Sometimes, people also take up a second job to help exemployers or family business, or friends to fulfill a vacancy by temporary working on it if there is dearth of skill for that position in the industry.

 Some moonlight for career or personal satisfaction or to de-stress also. For example, a moonlighter, who is a senior executive in a TV media company during the day, also works as a faculty teaching sales management, media planning and public relations in a reputed Mumbai institute on weekends. He gets the satisfaction in knowing that he is shaping young minds. Although, he admits, both the jobs need equal commitment. Another moonlighter, a senior banking executive of a reputed bank de-stresses himself by writing novels with banking as the backdrop in all of them. This is not a full time second job. but, it is one he enjoys as much as his banking job and is a great stress buster for him. He writes in the late hours of night as he considers an unfinished manuscript in hand a delight. The reason for earning more could rise from the individual's financial problems which may be short term or long term, and thus, the duration of external employment is on the basis of the seriousness of the monetary issues. In India, many opt for studies on parents and societal demands thereby making people end up with careers that they were never meant to be in.

Types of moonlighting
Moonlighting is of two types viz. external and internal. In external moonlighting employees take up second jobs, assignments, freelance work outside their regular permanent job that they are doing everyday. In contrast, internal moonlighting happens within the organization that the employee works in everyday. In internal moonlighting work hours of moonlighters are counted after the regular on duty hours as written or agreed by employer-employee. However, employees cannot moonlight internally on their day off or leave. Internal moonlighting is usually practiced by medical residents. If organizations start internal moonlighting for its employees it can prove to be an advantage for them. For example, IT companies can create more IPs, and enhance their own talents which will put off external moonlighting for employees.

Impact of Moonlighting
Besides, having an adverse impact on daily routines by working extra hours, employees have to even sacrifice being with their families and friends or are unable to engage in any leisure time activity until they are pursuing a job in their area of leisure activity, otherwise they could end up with more responsibility and risks. This could lead to burn outs. They usually score higher on self-esteem than their one-job counterparts. They take part or volunteer in charitable organizations or support NGOs.

 Also, they score higher on the dominance factor, suffer less from anxiety and are more practical, down-to-earth, emotionally stable and Independent. Also, some people possess the stamina to work relentlessly, and have the ability to recognize their own limits too. Moonlighters having these qualities can thrive on the excitement of the second job, and probably go with same energy to their regular day job. Moonlighters may take advantage of the resources of their primary employer either by using internet, faxes, photocopiers, etc., or by staying late to catch up with their work, or by utilizing the regular hours of their first job to finish work for the second one. This can give rise to matters concerning productivity, physical and mental health problems leading from the stress of managing several jobs, and more significantly, may lead to a conflict of interests between the moonlighters' different positions.

Legal Implications
There is no single employment labour law or otherwise, which restricts or provides for moonlighting in general. However, the Supreme Court in A1R1970SC823 enunciated the general principle in the these words: "The general rule in respect of relationship of master and servant is that a subsisting contract of service with one master is a bar to service with any other master unless the contract otherwise provides or the master consents The restrictions or policy on moonlighting would differ from case to case or organization to organization. In other words, whether moonlighting is permitted or not would depend on a number of factors, like nature of the organization whether government or private, the terms of the employment agreement, HR policy of the organization, nature of work carried out by the concerned employee, etc

Moonlighting is specifically prohibited for government servants/public officials. For example, the Central Civil Servants Conduct Rules, 1964 prohibit civil servants from engaging in private trade or business or to engage in any other employment. However, honorary work for social or charitable purposes or occasional work of artistic, literary or scientific nature is permitted. Similar prohibition is contained in the code of conduct or service rules of various departments and divisions of State and Central Government and various government bodies/authorities. In private sector, most organizations in India discourage moonlighting and a typical employment agreement or HR policy would restrict an employee from taking up an alternate vocation or work, during the term of his/her employment with the organization.

Examples
Professionals, such as an advocates, chartered accountants, etc. are prohibited from engaging in any other business or occupation under the code of ethics/ conduct of their respective professional bodies. For example, under the Code of Ethics formulated by the Institute of Chartered Accountants of India , the practicing chartered accountants, duly registered with the ICAl, are prohibited from engaging in any profession/business other than the profession of chartered accountancy, unless permitted by ICAI. Similarly, as per the rules on standards of professional conduct and etiquette framed by the Bar Council of India, an advocate is prohibited from personally engaging in any business. However, activities which are akin or incidental to such profession may be pursued. For example, an advocate may write books or articles, address conferences, seminars, etc. Thus, moonlighting is mainly an option for casual, part time or piece rate workers, who are not regular full time employees.

Structuring moonlighting policy

The purposes behind a moonlighting policy need to be communicated appropriately. In general, the policy can explain the expected performance standards from the employee by the employer which takes care of moonlighting activities not interfering with employees' regular, daily work Remind employees of holding company's information as confidential, may be through IP agreements; and caution against conflicts of interests between the two jobs and sometimes employers/HR approval of the additional employment Employers can emphasize that they expect the employee to put the primary job first at all costs and add that as an important clause Also, If the moonlighter is working for a competitor, first a warning for unacceptability can be given and if the employee doesn't refrain from leaving the competitor the employee can be immediately terminated

 With respect to employees engaged in casual or seasonal or part time/piece rate jobs, it would be unjust on the part of the employer to restrict such employees from taking up any other trade, profession or employment during days, hours, or seasons, as the case may be, when they are not required to work If restrictions are imposed In respect of such employees, the same are liable to be struck down as void under Section 27 of the Contract Act.

Challenges
Complete prohibition of the practice is not a feasible option, as this sometimes builds resentment against employer Banning of moonlighting can have affect on employee motivation and results could be the opposite of what the employer was hoping to achieve and inturn, employee relations may decline with productivity and overall organizational health. Financial troubles created by an unstable economy, ups and downs In the stock market. etc. people get nervous about the implications of these things and thus, having a second job or exploring a second career provides an additional level of security

Solutions
By drafting an appropriate policy that can reduce moonlighting impact on productivity, safety conflict of interests, and misuse of organization resources is a good solution. Even if employees are not impacted by moonlighting the possibility of the primary company shifting place or employees getting a transfer since this is the era of globalization also poses a challenge Businesses are down like when the orders are not coming in and there isn't enough money to support free R&D, allowing or encouraging moonlighting may be the best option to keep employees on board while they are bored