Contemporary organizations are more focused on improving its organizational culture and work arrangement structure to gain competitive advantage in rapidly changing business markets. Change management is a biggest concern for contemporary firms to effectively manage its operations. Basis of success classified on human resource capital involvement in business decision making provide an opportunity to organization to move away from traditional practices of human resource towards employee equity participation in setting and achieving organization goals.
Human resource management has undergone many changes in last few decades to improve the functionality of business processes; stabilizing the corporate culture and identifying the opportunity factors which enables organization to grow based on its human resource competency and skills. Traditionally, human resource was concern with only recruiting the employees as per the job demands and requirement.
This restricted the HRM only to selective portion of organization processes management. Conversely, in last few decades when information technology has unfold great revolution pertaining to business industries HRM role has been reshaped concerning towards management of organizational culture and goals by involvement of employees.
It now is not limited to recruitment and selection of employees but also place emphasis on training and development, managing employee communication, addressing ways to stabilize the organization culture, identifying the factors for growth of organization in changing market conditions, and is also providing solutions to human resource capital management and forming a policy structure to regulate and encourage employee participation in consideration with organization commitment and employee performance related factors management.
Strategic operations of HR has enabled the organizations to set higher level of objectives and expand its operations successfully in international markets; devising new structures related to management hierarchy and work arrangement, such as management by objective structure formation as per contemporary need of flexible and rapidly changing business environment.
HR roles in technologically integrated business markets has been shifted towards higher concentration work activities for employee management and effective organizational culture establishment; this enabled the organization to focus on employee involvement in business decision and setting of corporate culture consider employees as capital asset to organization. In general terms, HRM is expanding its capacity for organization development by effective utilization of employees’ skills.
Persistent to objective of organization strengthening HR roles now require active concentration by management on employee empowerment issues that address decision making, hierarchy, information communication, employee appraisal for compensation and rewards, and employee involvement in goal setting based on equity based approach that also involve workplace diversity and managing cross-cultural business operations. HR practices now address many managing issues of organization for employee and organizational culture management.
In order to reduce the cost, many private specialized institutions appeared in the industry that provided an opportunity to organizations for outsourcing HR administration activities, decreasing the overall cost. There are many HR practices which are being outsourced such as recruitment and selection, employee training and development, HR payroll, and HR legal work. Since organizations are diverting its human capital assets management to outsourcing organization therefore, duplication of activities can be avoided.
HR outsourcing services helps in considerable cutting in cost while reduction in time for activities management. Integration of technology in HR practices provided extreme time saving measures as e-HR software can now perform many HR management activities such as employee information and data record management, provide payroll solution, helps conduct appraisal on online user interface, proper communication between inter-departments of an organization due to secured network.
This helps organizations to move towards shared service centers for its corporate services; many firms have been utilizing shared service centre as a channel to manage its call centre operations by giving access to selective portion in e-HR related to purpose of service being outsourced. Establishment of shared service center is a demanding challenge for organizations as it needs to focus on normalizing the HR practices by addressing HR processes routine in nature.
Shared service centre are more customer focused and receptive to contemporary business demand thus enabling firms to lower their operational cost for routine HR activities by involving shared service centre in developing and managing the controlled HR practices. This offers conglomerate advantages to firms due to increased performance and successful accomplishment of organizational goals even at international level operations.
Strategically assessing the contemporary HR expose the potential challenges handling ability enabling the organization to diverge its attention on core processes related to human skills deployment at places demanding higher performance. Objective based strategic HR role through amendment in policy structure is giving autonomy to employee in work setting and goal accomplishment strategy formulation; protecting the shared values of organization culture and enabling the higher involvement of employees in business decision.
Focus on rewards and compensation packages as factors to enhance employee motivation and organization commitment provides opportunity to attain higher level of employee performance and get positive results irrespective of organizational environment challenges. Globalization has created a dramatic change in the organizational structure and operational flow of business information.
Human resource now focus on strategic components of employee performance in various dimension that offer unique advantages to firms in competitive market situations and enable organizations to manage its operations while maintaining discipline in organizational culture. International expansion of business requires addressing various components that form the basis of success in competitive markets for an organization through effectively utilizing human resource skills.