An organization gains competitive advantage by using its people effectively, drawing on their proficiency and skill to meet clearly defined objectives.
HRM is aimed at recruiting competent, flexible and committed people, managing and rewarding their performance and developing key competencies.
The rise of modern human resource management is more than just a change in terminology from personnel management to human resource management. There have been many changes in HRM which relocate the mindsets of employers to look at their employees as a unique, valued asset and not as an expense to condense.
Modern HRM wants the workforce to be effective by doing the right thing rather than being efficient by doing things right and to work smart rather than work hard.
In contemporary times HRM is concerned with the mental models and mindsets of the people of the company.
Commitment is a central feature of contemporary HRM where modern organisations are moving their management styles from one based on control, to one based on commitment.
Nowadays, human resource management is not just about administering people but also about shaping the culture and traditions of the organisation.
Mutuality in labour relations is focused on current HRM practices based on commitment.
Adversarial labour relations, which was the outcome of traditional HRM is being replaced with mutuality with joint planning and problem solving.
Open communication is also a vital improvement in contemporary HRM. Traditionally employees were expected to ‘do as you’re told’.
Currently the trend for many organisations is open communication, where employees are encouraged to voice out their ideas and opinions.
Flatter organization structures and minimum status differentials have contributed much to this novel communication process.
“According to one WL Gore associate, the lack of titles encourages all employees to think harder about how to contribute to the business. It’s of importance to have the ability to handle a degree of ambiguity as opposed to ‘here’s my job and I only do these tasks’ and someone willing to lift his or her head up from the desk and see what the business’s real needs are” (Financial management, 2008).
A modest change as having a common canteen can contribute to minimizing status gaps which can act as a barrier to better management-worker communication.
Unlike traditional HRM, contemporary human resource management is not left with only the HR manager.
It’s been identified as being too important, that each and every individual is expected to actively play their part in this process with the organisation goals in mind. At the present era of HRM, employees are encouraged strongly to operate as part of a team and be team players rather than performing and building themselves as individual idols.
Today, many performance management systems are focused on the activities of teams rather than simply on the individual.
“When used in conjunction with team-building and worker involvement and empowerment programs, it does appear to lead to higher quality as well as low absenteeism rates” (Dessler, 2005).
Thus, the modern collaborative nature of teams in organisations is built rather than implementing individually based performance management schemes.
Modern HRM planning is flexible, taking a greater interest of external factors, having more refined monitoring and control mechanisms and planning in shorter time frames.
Flexi hours and flexi time have also been introduced with the employees’ interests in mind. Work life balance is also much talked about in today’s business world. Techniques such as employee leasing, dual career groups and collaborative management are all part of modern HRM.
Moonlighting by employees who work for multiple jobs at the same time has lead to...