The Future of Human Resource Management


Term Paper, 2018
8 Pages, Grade: 1.2

Excerpt

Contents

Introduction

The Most Influencing Factor/Trend on the Future of HR and the Department of Labor

How These Factors Positively Influence the Future of HR and the Department of Labor

How these Factors Negatively Influence the Future of HR and the Department of Labor

What Might Happen If These Factors Are Ignored?

What Organizations Should Do To Prepare For The Future?

Conclusion

References

Introduction

The transformation of human resource practices has been impacted by different factors including globalization, compensation and benefits package, and diversity initiatives. For instance, in the global competition, firms are seeking for a talented pool of excellent workers to achieve a sustained competitive advantage. Compensation and benefits package is another factor that has an impact on the future performance of human resource practices. This is because compensation and benefits package are designed to attract, retain, and motivate employees for competitive advantage. Human resource management is, therefore, moving away from a base-pay-system towards a pay-for-performance system in order to encourage and motivate employees without having to jeopardize their basic financial security. It is also evident that diversity initiatives in human resource are getting wider attention owing to the impact of globalization and increase in job market. Organizations have invested resources on diversity initiatives including workplace programs and benefits such as flexible work arrangement, corporate sponsored employee affinity groups, and diversity management staffs. Various organizations have implemented various initiatives including diversity and equity in the workplace in order to enhance the performance of the firm (Ferris, 2012).

The Most Influencing Factor/Trend on the Future of HR and the Department of Labor

The globalization process will have the most influence on the future of human resource practices and the department of labor. This is because of the tremendous growth in global markets owing to increase in foreign competition hence requiring small and medium-sized firms to upgrade their workforce for competitive advantage. The global competition has made the decision making process complex for most of the managers hence the need to take advantage of the new technology in order to improve their decisions. From a personal perspective, it is apparent that managers who will not adopt the most appropriate technologies will face enormous challenges in managing their organizations. Therefore, the impact of globalization will be experienced by in all HR practices. However, the approach by the managers will determine whether globalization will bring negative consequences or it will yield positive returns.

Due to the change in the globalization process, human resource practices in recruiting employees has also changed to include other forces such as diversity, compensation, and benefits package (Ruona & Gibson, 2011). For instance, the State of New Jersey department of Labor and Workforce Development is enjoying high rates of productivity owing to technological innovation. This has resulted into higher incomes and improved standards of living to more Americans. For instance, in 2013, more than 19 million jobs were created with technology industries accounting for one million of these new jobs while e-commerce generated $300 billion in revenues. Real average wages increased by 19 percent in the high tech industries while in the private sector it increased by 5 percent (“State of New Jersey department of Labor and Workforce Development,” 2014).

How These Factors Positively Influence the Future of HR and the Department of Labor

Modern organizations have invested heavily on managing workforce diversity in order to enhance the performance of the firms. On this note, diversity initiatives such as workplace programs and benefits such as flexible work arrangement will shift the role of human resource managers from recruitment and employee development to more diverse areas including transferring knowledge, skills, and expertise to workers. Human resource managers will be forced to focus on these initiatives in order to develop harmonious combination of the best talents, skills, leadership styles, and behaviors with different organizational cultures in order to achieve organizational set goals and objectives. The current compensation and benefits package based on pay-for-performance will help most of the organizations in attracting and retaining the most competent workforce for competitive advantage. Employees who perform satisfactorily are guaranteed a base pay and benefits package hence motivating employees to be productive in the company (Dessler, 2013). It is also apparent that human resources managers have taken advantage of the new technology and data analytics in order to form a global human resource information system to help organizations to sustainably manage their workforce needs hence gain a decisive competitive advantage (Pandey, 2012).

Seemingly, the department of labor will be impacted positively. Globalization will lead to secular increase in labor demand elasticity and wage increase. More job opportunities will be created hence increasing the welfare of workers. As more job opportunities are created, compensation and benefits package also increase for employees implying that employees will get more incentives hence motivate them to be productive. Again, organizations will be forced to employ a diversified workforce owing to the different skills possessed by different employees hence reduce work discrimination in organizations. This will be beneficial for the department of labor because its role is to protect employee’s welfare (“United States Department of Labor,” 2014).

How these Factors Negatively Influence the Future of HR and the Department of Labor

Most of the companies are competing globally in order to achieve a competitive advantage. However, to achieve success in the global market, the HR managers will receive a challenge of understanding global corporate cultural differences such as staffing policies, training and development, cultural barriers, legal frame work, recruitment and selection of employees while at the same time encouraging and motivating them to be creative and innovative. Moreover, future human resource managers might experience increasing challenge of recruiting and training employees to be competent in a diversified workforce. The most commonly used tool in organizations in managing diversity is training. This will imply that the future role of HR managers will change from recruiting and selection to training employees. In addition, compensation and benefits package will have a negative influence on the future of HR practices because of the challenge of determining a compensation package that fits the performance of employees (Wielemaker & Flint, 2013). Ordinarily, employees’ performance serves as the baseline for determining their compensation, as well as incentives. However, compensation between firms may lead to the loss of significance employees’ performance evaluation.

The future of the Department of Labor will also be impacted negatively owing to changes in globalization, diversity initiatives, compensation, and benefits package. For instance, owing to changes in the globalization process, the department of labor will lack the capacity to produce a skilled workforce as technology and globalization opens more opportunities for the people with the right skills (skilled-based technology change). Wage levels and relative wages will be impacted as globalization induces specialization to increase productivity. Globalization comes with new work opportunities hence increase child labor hence violate labor standards by the department of labor.

Owing to the challenge of diversity as employers seek a more diverse workforce in the future; there is the possibility of persisting discrimination and inequality in selecting the workforce (inequality in the US labor market). It will be a challenge for the department of labor as diversity and globalization open more opportunities for a skilled workforce. Since 1990s, there has been an increasing gap between the top and bottom wage earners in the United States. Again, the department of labor will be challenged on how to keep a balance between workers employment security and the need for the firms to adapt to the ever changing market conditions. The department will also face a challenge when determining the minimum wage for workers because the new technology has made low skilled jobs hard to get (“United States Department of Labor,” 2014).

What Might Happen If These Factors Are Ignored?

Human resource management is one of the essential management practices in an organization because it involves matching the right talents with the right job hence increasing the performance of firms. However, there are many factors that might change the future of HR practices either positively or negatively hence the need to focus on these impacts in order to determine how each factor is beneficial to organizations. Organizations need to rethink labor policies, education, compensation, and benefits package in an ever changing global economy. These factors are essential in HRM because they offer greater opportunities to promote better infrastructural development in organizations. For instance, HR managers will be forced to recruit competent staff and leaders who can develop strategic decisions owing to increasing competition from foreign companies that use the new technology in the production of goods and services. HR managers will also be forced to focus on workforce diversity because a diversified workforce helps in enhancing leadership behavior in organizations. Moreover, HR managers cannot ignore the need to give employees incentives in order to motivate them. Once these forces are ignored, the future of HR and the Department of Labor will lose their focus in recruiting and developing a workforce that is competent and effective (Dessler, 2013). Ignoring the impact of globalization means losing the competitive advantage in the global market; thus, organizations that ignore globalization will experience a short-lived existence.

What Organizations Should Do To Prepare For The Future?

Future-oriented organizations need to ensure that their strategies fit the organizational goals and objectives. Globalization, diversity initiatives, compensation and benefits package are core factors that need to be considered by future-oriented organizations to ensure that their firms can compete effectively in the global market (Pandey, 2012). On this note, organizations need to prepare for the future by maintaining effective performance-based systems, using the new technology, invest on workplace diversity, maintain technical competencies, and competitive pay systems. Therefore, the future workforce requires HR management practices that empower and encourage innovation. For instance, the State of New Jersey department of Labor and workforce development has introduced a new workers compensation rate of $855 maximum and $228 minimum. The workers compensation includes medical treatment, death benefits, wage replacement, and permanent disability compensation. This policy will attract highly skilled workforce owing to the rapid changes in technological advancement, the globalization era, and cost of production. As a result, human resource management will help future oriented organizations achieve their set goals and objectives (“State of New Jersey department of Labor and Workforce Development,” 2014).

Conclusion

In conclusion, parallel to the changes in the global arena, the organizational workforce has also changed from traditional personnel management to HRM in order to enhance the competitiveness of a firm. Within the next decade, the primary workplace issues that will face the human resource profession are workforce planning and skills assessment, attraction and retention of talents, globalization, compensation and benefits package, customer satisfaction and its relationship with employees, and utilization of new technology. The Department Of Labor must play a key role in promoting the welfare of workers and the working conditions. For instance, the department of labor must ensure that employees receive a fair wage and their working conditions, as well. For instance, the State of New Jersey Department of Labor and Workforce Development has established child labor laws, minimum wage standards, increased wages for overtime to protect the welfare of workers.

References

Dessler, G. (2013). Human Resource Management. Upper Saddle River, NJ: Prentice Hall.

Ferris, G. (2012). Human Resource Management: Some New Directions. Journal of Management, 25 (3), 385-416.

Pandey, S. (2012). Future Trends in Human Resource Management. VSRD International Journal of Business and Management Research, 2(12), 612-618.

Ruona, A., & Gibson, K. (2011). The Making of Twenty-First Century HR: An Analysis of the Convergence of HRM, HRD and OD. Human Resources Management, 43(1), 49-66.

State of New Jersey department of Labor and Workforce Development. (2014). Workers Compensation. Retrieved from http://lwd.dol.state.nj.us/labor/wc/wc_index.html

United States Department of Labor. (2014). Future work: Trends and Challenges for Work in the 21st Century. Retrieved from: http://www.dol.gov/dol/aboutdol/history/herman/reports/futurework/execsum.htm

Wielemaker, M. & Flint, D. (2013). Why Does HRM Need To Be Strategic? A Consideration of Attempts to Link Human Resources and Strategy. The Business Review 3(2): 259-264.

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Excerpt out of 8 pages

Details

Title
The Future of Human Resource Management
Grade
1.2
Author
Year
2018
Pages
8
Catalog Number
V424590
ISBN (eBook)
9783668699908
ISBN (Book)
9783668699915
File size
498 KB
Language
English
Tags
future, human, resource, management
Quote paper
Caroline Mutuku (Author), 2018, The Future of Human Resource Management, Munich, GRIN Verlag, https://www.grin.com/document/424590

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