Introduction

Human resource management is an activity found in the organization whether

they are business or service- oriented, large or small. A simple definition of an
organization is a group of people who work together to achieve common goals.
Thus, we can see that the concept of organizations cannot be separated from the
need of people. Organizations cannot exist without people. Human resource
practitioners can be whether from public or private organizations.
Human resource also is the key issue for many developing as well as develop
countries.Its availability, whether skilled or unskilled is a determining factor for the inflow
of foreign direct investment to many developing nations. Human resource is important
factor in determining the competitives of individual as well as for companies either from
public or private sector.
There are some implications of labor trends such as technological changes, keconomy and brain drain that affects human resource management that will be discuss
in this assignment.

Questions : Discuss the implications of each of the following labor trends for HRM
1) Technological changes 2) K-economy 3) Brain drain

Human Resource Management is a process of bringing people and organizations

together so that the goals of each other are met. It is a part of management which
plans, organize, direct and control the procurement, development and maintainance of
human resources in an organization. As talent occupies centre stage in the workplace,
managing and retaining manpower become crucial to an organizations success.
There are some implications of labor trends for Human Resource Management
(HRM) that can be identified. The challenge for HR managers is to keep up to date with
the latest HR innovations such as technology, K-economy and brain drain. How HR
managers can anticipate and address some of the most challenging HR issues.
First, technology changes. In the competitive world of today, industry cannot
hope to survive for long with the old technology. Technology changes has shaped HR
dramatically over the years and now advanced quickly, forcing organization to change
their strategy and product mix and changing the way HR is organized and delivered.
Unemployment resulting from modernization will be solved by properly assessing
manpower needs and training of redundant employees. This is a difficult process faced
by managers. IT revolution now is about real time access and sharing digital
information. Technology includes tools, machinery, equipment, work procedures and
employee knowledge and skills
The impact of technology on HR can be profound, as following things that can be
expose. Some of it are new skills, knowledge, experience and expertise required to gain
the edge over rivals. It also can downsize operations, cut organizational layers and cut
the extra fat to survive in a competitive world. Moreover, technology can collaborate and
achieve teamwork and can relocate work from office to home.

Like most other segments of the business world, technology has become
ingrained in HR operations. More HR professionals are using new software and
websites to streamline the recruiting process, conduct payroll and perform many other
tasks. High-tech has enabled HR to reach out globally to find new talent and to
effectively manage workers in remote locations. Also, HR has taken the lead in
developing standards regarding social media use in the workplace. These policies must
maintain a delicate balance that promotes content to improve their companies brands
and ensures that employee social media activities do not jeopardize their organizations.
And with an ongoing need for highly skilled scientific and technical talent at many
organizations, HR is now expected to be an authority on tapping talents in those
industries.
Second implications are K- economy. K- economy or knowledge based economy
is knowledge creation, use, sharing and retention has always been important. New
significant shift towards a systematic and strategic approach to managing the primary
assets of the knowledge economy are people, knowledge processes, and knowledge
products. Globally, knowledge has become the most important factor in economic
development and knowledge assets are considered essential for economic growth,
competitive advantage, human development and quality of human life (Malhotra 2003).
The quality of human resources will be important factor that will determine the
pace and success of the transition toward K-economy. There are three ways in which
the quality of human resource can be improve. The first one which is long term and
sustaining that is to upgrade the quality of education at the primary, secondary and
tertiary levels and to foster a cultural and intellectual infrastructure to support lifelong
learning.
The second which is medium term and flexible, is to foster training and re-training
for managers and workers that is to upgrade knowledge and skills to cope with the new
demands of technology and markets. The third one is to recruit foreign talent. This is an
effective, rapid response approach which is useful in meeting urgent shortages of

manpower, but cannot be relied in long term solution.

In the knowledge economy, knowledge-based capabilities are the key to
competitive advantage. At the firm level, this places the enterprises people,their
knowledge and innovative capacity at the heart of strategic potential, and organizations
that excel in attracting, creating, managing and sustaining knowledge capabilities are
advantaged. Human Resource Management (HRM) has over recent years been
exhorted to demonstrate its position as a strategic partner to executive management:
this promise has been only partially realized.
In the k-economy, a firms success depends on agile adaptability. Corporate
leaders must rely on individuals within the firm to self organize strategies that move the
firm forward without waiting for long-term planning document to guide their decisions.
Without effectively managed the relationships, this strategic capability cannot be
developed.Nowadays people, goods, capital, and information are moving around the
globe as never before. Global competition is making every firm to think in terms of
gaining an edge over rivals by producing high quality goods at a very competitive price.
This is where the people dimension comes into being. Incentives, favorable work
climate, team spirit, freedom to think and act independently and a host of other HR
initiatives are needed to keep talent from flying away.
Third implications are brain drain. Brain drain occurs when educated,
professional workers leave a place or company in order to move elsewhere where they
can benefit from better pay, working conditions, lifestyle and sometimes work-life
balance. It is typically regarded as economically costly to the country or place the
individuals are leaving.
There are also highly skilled people have migrated regionally or further abroad
where they could improve their economic and professional perspectives. For talented
and and highly skilled people, emigration sometimes represents the only way to attain
better job opportunities, higher salaries, access to good infrastructures and
development to expand their careers in higher standard than before.

The issue of brain drain is getting crucial. For example, Malaysians who have
migrated long ago are reluctant to return back. The younger generation, particularly
those who have and are going to pursue their studies overseas are increasingly
planning not to return.
The experts or specialist chose not to return because of the better and more
challenging job and educational opportunities overseas. The expectations of these
Malaysians are also higher and may not be able to adapt lifestyles in Malaysia after
being abroad for so many years.