The management has to recognize the important role of Human Resource Department in order to successfully steer organizations towards profitability. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the HR department in the 21st century. In order to survive the competition and be in the race, HR department should consciously update itself with the transformation in HR and be aware of the HR issues cropping up. With high attrition rates, poaching strategies of competitors, there is a huge shortage of skilled employees and hence, a company’s HR activities play a vital role in combating this crisis. Suitable HR policies that would lead to the achievement of the Organization as well as the individual’s goals should be formulated. HR managers have to manage all the challenges that they would face from recruiting employees, to training them, and then developing strategies for retaining them and building up an effective career management system for them. Just taking care of employees would not be enough; new HR initiatives should also focus on the quality needs, customer-orientation, productivity and stress, team work and leadership building. This book is divided into two sections that throw light on the emerging HR trends and discusses HR issues in various industries like financial services, IT, Power, Healthcare, to name a few. This book should be valuable for practicing HR managers of every organization and also for those who have a significant interest in the area of Human Resource Management, to realize the growing importance of human resources and understand the need to build up effective HR strategies to combat HR issues arising in the 21st century.

Human Resource Management has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades. Driven by a number of significant internal and external environmental forces, HRM has progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy.

CHANGES IN HRM :   Some of the significant changes that are likely to take place in the human resource management are as follows:

  1. Increase in education levels: Due to technological progress and the spread of educational institutions workers will increasingly become aware of their higher level needs, managers will have to evolve appropriate policies and techniques to motivate the knowledge of workers. Better educated and organized workforce will demand greater discretion and autonomy at the work place.
  2. Technological developments: This will require retraining and mid-career training of both workers and managers. Rise of the international corporation is proving new challenges for personnel function.
  3. Changing composition of work force: In future, women and minority groups, SCs and STs would become an important source of man power in future on account of easy access to better educational and employment opportunities. Therefore manpower planning of every organization will have to take into consideration the potential availability of talent in these groups. Changing mix of the workforce will lead to new values in organizations.
  4. Increasing government role: In India, personnel management has become very legalized. In future private organizations will have to co-ordinate their labour welfare programmes with those of the government private sector will be required increasingly to support government efforts for improving public health, education training and development and infrastructure.
  5. occupational health and safety: Due to legislative presence and trade union movement, personnel management will have to be more healthy and safety conscious in future.
  6. Organizational development: in future, change will have to be initiated and managed to improve organizational effectiveness. Top management will become more actively involved in the development of human resources.
  7. New work ethic: greater forces will be on project and team forms of organization. As changing work ethic requires increasing emphasis on individual. Jobs will have to redesigned to provide challenge.
  8. Development planning: personnel management will be involved increasingly in organizational planning, structure, composition etc. Greater cost-consciousness and profit-orientations will be required on the part of the personnel department.
  9. Better appraisal and reward systems: organizations will be required to share gains of higher periodicity with workers more objective and result oriented systems of performance, appraisal and performance linked compensation will have to be developed.
  10. New personnel policies: new and better polices will be required for the work force of the future. Traditional family management will give way to professional management with greater forces on human dignity.

Thus, in future personnel management will face new challenges and perform new responsibilities. Participative leadership will take the place of autocratic leadership. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal and rule bound approach to more open and humanitarian approach.


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.

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.
  • Charles Handy also advocated future organizational models like Shamrock, Federal and Triple I. Such organizational models also refocus on people centric issues and call for redefining the future role of HR professionals.
  • To leapfrog 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 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.


            Some of the emerging trends in the role of personnel manager are as follows:-

    (i).   Personnel managers of future will have to stress upon overall development of human resources in all respects.

  (ii).   The scope of human resource management will be extended to cover career planning and development, organization development, social justice etc.

 (iii).   Enlightened trade unions will become an active participant in the organization and management of industry.

(iv).   The personnel manager will be required to act as a change agent through greater involvement in ‘environment and scanning and development planning. They will have to devote more time to promote changes than to maintain the status quo.

  (v).  The personnel function will become more cost-conscious and profit oriented. Instead of merely administering personnel activities, the personnel department will have to search out opportunities for profit improvement and growth.

(vi).   Greater authority and responsibilities will be delegated to personnel managers particularly in the field of employee welfare services.

(vii).  Personnel managers will have to continuously retrain themselves to avoid obsolescence of their knowledge and skills.

Thus, the job of personnel managers will become more difficult and challenging in future. They will have to be experts in behavioral sciences. They will play a creative and development role. They will thus have play a creative and development role. They will have to acquire new skills, values, attitudes to discharge their new responsibilities successfully.


“I never predict. I just look out the window and see what is visible – but not yet seen” (Peter Drucker)
Trends in Human resource management have changed the way we work, as organizations are more depended on HRM to increase the success ratio in today’s competitive global environment.