Psychology in Human resources management with

Importance of Change management

Bachelor of Management Studies
Semester V
(2016-2017)

Submitted by
(Vinay Vijay Pandey)
(Roll no.1274)
RAMNIRANJAN JHUNJHUNWALA COLLEGE OF
COMMERCE, ARTS & SCIENCE
GHATKOPAR (W) MUM-86 MAHARASHTRA

Psychology in Human resources management with

Importance of Change management
Bachelors of Management Studies
Semester (v)
Submitted
In partial fulfillment of the requirements
For the award of degree of
Bachelors of Management Studies
By
(VINAY VIJAY PANDEY)
(Roll no. 1274)

RAMNIRANJHAN JHUNJHUNWALA COLLEGE OF

COMMERCE, ARTS & SCIENCE GHATKOPAR (W)
MUMBAI-86

DECLARATION:
I, VINAY VIJAY PANDEY the student of T.Y.B.M.S semester
V (2016-2017) hereby declare that I have completed the project
on . The information submitted is true and original to the best
Psychology in Human resources management with
Importance of Change management of my knowledge.

__________________
(SIGNATUR
E OF STUDENT)
(VINAY VIJAY PANDEY)
(ROLL NO: 1274)

RAMNIRANJHAN JHUNJHUNWALA COLLEGE OF

COMMERCE, ARTS & SCIENCE GHATKOPAR (W)
MUMBAI-86

CERTIFICATE:
This is to certify that Mr. VINAY VIJAY PANDEY Roll no:
1274 of third year B.M.S., Semester v (2016-2017) has
successfully completed the project on Psychology in Human
resources management with Importance of Change
management
under the guidance of .selvi Nadar

Corse Coordinator
Principal

Project Guide/Internal examiner

External Examiner

Acknowledgement
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this project.
I take this opportunity to thanks the University Of Mumbai for
giving me chance to do this project.
I would like to thanks my Principal, Mrs. Usha Mukundan for
providing the necessary facilities required for completion of this
project.
I take this opportunity to thanks our coordinator Mrs. Selvi
Nadar for the moral support and guidance.

I would also like to express my sincere gratitude towards my

project guide Mrs. Selvi Nadar.
I would thank my college library for having provided various
reference books and magazines related to my project.
Lastly, I would like to thanks each and every person who
directly or indirectly help me in the completion of the project
especially my parents and peers who supported me throughout
my project.

Psychology in Human Resource with importance of Change

management
Introduction

Organized work in the society started much before the industrial

revolution and establishment of industrial organization. The
Egyptian, Greeks, Mughals had had created monuments like
Pyramids of Egypt cathedral of Milan. ST.pauls in London
St.Peters in Rome, Taj Mahal in India. The monuments like
were built using management techniques and tool. The creator of
these, had, managerial insights like, planning organizing,
directing executing and controlling. Earliest organized work can
be found in Army whose job was to protect the kingdoms and
territories. These are examples of organized work. However the
factory which is productive system were organized work
activates take place started in middle of 17th century. In the
factory system a large scale employment takes place, employing
manpower and capital. Factory is an example an organization
engaged in the activity useful to mankind. Similarly, other
organization where organized work with help of Human
resources takes ` place were developed to fulfill the needs of
human beings
In this competitive scenario where the is
immense demand for people and thee talent pool is shrinking,
Human resource management plays a vital role in an

organization. Recruitment and Retention of employees is

becoming a challenge as well as a concern area of all HR
managers. As Indian economy is booming,. HR managers will
be experienc8ing tough times ahead in hiring and training and
retention talent
Psychology plays a vital role in the beginning itself, for instance,
when it comes to selection, recruiting and training employees,
psychology is needed. Psychology will assist recruiters in
choosing the right employee. There are many psychological
tools, which will check the employees intelligence, his or
her attitude and the way of thinking. When these factors are
studied well, the organizing will end up having only the best of
best employees, and eventually it will help the organization
develop better. Presently there are Human Resource
Development Psychologists who are ready to assist the
organization to choose the right person and put him at the right
place and at the right time!
There are many reasons why Human Resource Management has
turned into a Psychology linked science. For instance, more and

more organizations across the globe are highly dependent on

skilled staff resources to function at the best level, and they also
look out for higher performance. There is a huge growth in
service sector in countries like India and United States. This
growth of service sector has been extraordinary and it has
actually overtaken the manufacturing sector by providing
employment opportunities. Services like Information
Technology or Information Technology enabled services, Rental,
Telecom, etc., depend upon the most excellent human resources,
that too the need is in large numbers. In order to make the
employees grow, get motivated to take up challenging tasks, the
management needs to know the in depth study of human mind.
When change management comes in human resource
management is play a vital role. As everyone need to understand
that change Is the basic factor in everyones life mite it be a
company also so the employees need to be prepared for any such
changes in an organization

Meaning
Psychology in Human Resource with importance of Change
management is a studying the minds sets of all the employees
and also the outside environment so that the HR can plan a
suitable environment for the employees so that the production of
the company can be increased human resource management is
the function within an organization that focuses on recruitment
of management of and providing direction fair the people who
work in the organization. Human Resources Management can
also be performed by line managers.
When it comes about reading mins of the employees then if the
conditions are not suitable for them the change factor comes and
that will lead for the change management in an organization

Definition

According to COLEMAN, the process of determining

manpower requirements and the means for meeting those
requirements in order to carry out the integrated plan of the
organization
Sumantra ghoshal has termed human resources as human capital
consisting of three types of capital intellectual capital, social
capital & emotional capital
The term Human resources with reference to an organization
refers to its employees, employed at different levels of
management. An organization performs a number of function to
achieve its objectives. Thus, it requires human resources of
different types which may be categorized on the basis of
functional areas like production marketing finance or human
resources across the functional areas may be arranged into top
management, middle management, supervisory management and
operatives
Psychometric Tests
These include tests of cognitive ability (traits of general

intelligence such as verbal, numerical and logical ability). They

also extend to self-reporting tests (questionnaire inventories)
about the candidates self-perceived behavior, personality,
life/work orientations and value systems. Completion of the
application form and the interview are both tests. There are also
group exercises which are used as tests. In addition to these
devices there are hundreds of off-the-shelf tests on the market.
A test is an instrument, designed to measure something. The
something has to be measurable either in a concrete sense
(we can weight it!) or in a comparative sense we can compare
the results of individuals against the results of groups who have
been measured using the same instrument and for whom
norms exist. If we use tests there needs to be a clear
correlation between possessing the quality being tested and
subsequent success in learning and performance.
An employer may devise a test or buy one in off-the-shelf.
Someone has to administer the test properly and have the ability
to interpret the results. From a tests results, the employer may
judge that the applicant does not have the necessary qualities.

Function area for psychology in human resources management

In the basis of the various functions which the human resources
management generally undertakes, the functionalareas of human
resources management may be set forth as below in which
psychology plays an important role
1) Organizational planning,
2) Development factor & task specialization
3) Staffing and employment
4) Training and development
5) Compensation, wage given in advance
6) Motivation and incentives
7) Employees record in past
8) Labor and top management relation

9) Research factor
10)

R&D

Organizational planning
It is concerned with the division of all the takes to be performed
into manageable and efficient units and with providing for their
integration.
a determination of the needs of an organization in terms of
a company short and long term objectives, utilization of the
technology of the production, deciding about the nature to
be manufactured keeping in view the external environment
and public policy
in panning the mind set of all the employee and the
management

The application of psychological testing to human resource

selection, particularly the use of instruments designed to assess

personality traits, has a long, colorful, and somewhat

contentious history. Personnel selection in general, and its
various forms of psychological testing in particular, has its
origins in the late 19th century. Much of the developmental
work in the scientific methods of selection can be traced to the
efforts of early industrial psychologists to support the military
through two world wars, as well as their contemporaneous
marketing efforts to have their craft applied to organizational
problems. From the natural selection concepts that formed the
foundations of Frederic Taylor's scientific management, through
the informal techniques of early character analysis and to the
modern application of selection instruments based on statistical
analyses of test reliability and validity, the use of tests and other
techniques for the improvement of personnel selection and
performance has never been without controversy. Whether the
tension was over the proper role of testing professionals, the
appropriate balancing of management demands for efficiency
and fairness to employees, or the usefulness of tests themselves,
the unfolding history of psychological testing represents a
microcosm of American business history.

Similarly, the study of personality has a rich and varied tradition

within the field of psychology. The controversy over the
desirability of using personality testing to make selection
decisions has deep historical roots. Traditionally, many
industrial psychologists rejected the use of personality testing
because they believed the practice was unreliable and invalid.
Indeed, one classic text in personnel testing devotes an entire
chapter to the special problems that exist in using personality
testing in selection. (1) Most of the early research on personality
testing found low validity and reliability coefficients, and
literature reviews dating from the 1960s that reinforced the
shortcomings of personality testing (2) led to a move away from
personality testing in selection. Many HR practitioners,
however, have continued to use personality testing with an
optimistic and enduring faith in its ability to discriminate
between good and poor job candidates. (3)

The Origins of Psychology

The roots of psychological testing lay in the origins of industrial
psychology in the late 19th and early 20th centuries. The field
represented the convergence of scholarship and application from
the disparate fields of psychology, engineering, and business. As
early as the 1880s, authors such as Henry R. Towne and Henry
Metcalf had proposed that business management, viewed as an
art in the late 19th century, should be thought of as a science and
would benefit from engineering's professionalization because it
had foundations in and proclivity for science) Although schools
of management science in the engineering disciplines had been
founded on the East Coast, late 19th-century universities did not
readily embrace either engineering or business curricula.
However, the Morrill Act of 1862 ushered in an era of change in
higher education by promoting the chartering of land-grant
universities that moved away from offering a strictly liberal arts
education and toward technical education. (7) Several wellknown and prestigious universities, including the Universities of
Chicago, Pennsylvania, and California at Berkeley, incorporated

management and engineering programs in their curricula by the

beginning of the 20th century. (8)
Although psychologists, as practitioners of the traditionally
scholarly discipline of psychology, resisted the application of
psychological models and theories to managerial problems,
individuals such as Walter Dill Scott and Hugo Munsterberg
founded the field of industrial psychology when they began to
explore the serious application of psychological principles to
problems in education, law, marketing, and management. (9,10)
The following years saw rapid growth in the application of
industrial psychology in the area of market psychology by
practitioners who wanted to address complex business problems.
Among the tools those researchers deployed were psychological
tests aimed at addressing the growing problem of identifying
individuals who would be effective employees.

Why is choose the topic?

Managing the human resources is the hardest job and thus
understanding the mindset of the candidates and thinking plan
according to that is a very important work for the HR.

So while understanding the behavior, mindset and how an

employee thinks that completely depends on everyone
individual so understanding that and making the plans and
policy according to that is the hardest things to do and I planning
to become a HR in future it is very necessary for me to
understand those situation and making plans for them and
whenever there is a fight between the employees the HR plays a
vital role in solving that issue also
So at the last for managing the human resources the pscholofy
factor really play vital role and that the reason I chooosed the
topic

Importance of the topic :-

For an HR Manager psychology place very important roll.

1) At the time of recruitment

2) Taking decession on diciplinary,i.e. at the time of cousilling

3) Disputes in the office between the employees.

4) while giving promotion

5 ) to increase the production of the company

6) to reduce the wastage

7) to given the best quality

8) while making plans for the employees

9) to set goals for the company

11)

for understanding the behavior

12)

for getting best employees

13)

helps HR to keep record about the employee

in this we have to observe the body language of the employee,

behaviour of the employee and many more

1) At the time of recruitment

Recruitment is the procees of hiring the new employees in
the company. When the HR hire the employee except the

skills they also check that the employee will he be working

with the firm for the longerperiod of time. It is completely a
assumption that the employee will be there in compny for 6
months or 6 years. So while recruitment the employee
understanding the person is the most crictally part of the
process and this help the company to understand and plan
for the employee
When the selection process of the
company is been done by the HR managers they goes
through the complete mind set of the candiates which come
there for the interview and they acutally examine the each
candidates the behavior of those people are beeen judged
and then the final decide the candidate will be hired or no
for the company. So understanding the mindset anf the
psychology of the people is the basic and the important
factor to hired employee and thus understanding the
psychology is a very important factor.

2) Taking decision on disciplinary ,i.e. at the time of

counselling

Taking decision is one of the important element for the HR

manger and this action also works psychological behavior.
The HR manager are the real people who take decision for
the employee like if the employee has made a mistake and
is affecting the company the manager hand over the
employee to the HR with the proper case about what the
employee has done and in which condition the mistake was
happened.The final decision is of the HR manager weather
the employee should be there in the company or no aand to
understand that the HR requires the mind game i.e. the
proper study of the psychologically behavior of the
employee and thus the while taking any important decision
the proper study of the employees mind is necessary so that
if the mistake was done by mistakely the company should
loose the quality employee from the company

3) Disputes in the office between the employees.

Disputes is the primary factor for the reduce in production of the

company and this disputes or fights take place cause of the
psychologically behavior of the human being or when the
thought process doesnt matches. Its general that the thaught
procees of each and every human being is different from each
other and thus is normal to have arguments between the
employee. This arguments when this leads to fights or disputes it
is very harmful for the company so to handle such situation they
have HR and whenever there is disputes between the employee
then that arguments and fights needed to be understand and
even for this purpose the psychological factors plays a very
important role to understanding that thought process of both the
employee and making them understanding about it

4) While giving promotion

Promotion is one of the basic factor for which each and every
employee waits for and it is very common that waiting for that is

worth it as there is increase in the salary with higher position

and better work life. They are given promotion on basic of the
performance but they also have a brief study about the behavior
of those employee as whenever the higher position is given to
employee those qualities should be there in that employee and
thus on basis of that promotion for every employee is given
While the promotion process is going the
when an employee is getting promoted in that psychologic plays
a very important role as it help the managers to have a brief
study about the individual employee and to determine whether
the employee is really the employee who can promoted and who
can really fulfill the requirement of the higher position

5 ) To increase the production of the company

The main aim of the company is to increase the production.

The production of the company can increase only if the
employee are hardworking and faithful for the organization.

Motivation is basic factor to increase the prodctuon of the

company as if the employee of the company are motivated then
surely the production of the company will be increased.

With more production of the company the profit margin of the

company will increase and that will be one of the advantage so
that company can give away bonus or more incentives to those
employee so understanding the psychological factor that means
the mindset of the employee will surely help the company to
increase the production of the and that will increase the profit
for the company.

6) To reduce the wastage

When the wastage of raw material is reduced there is increase in

the output of the company. When there is proper utilization of
resources the company is more towards the path of success. The
main factor is employee and when the employee works taking

that in mind that its is threr comoany so the raw material of the
company will used at best and this will give the company a
increase the in production which will help the company.
Employee motivation, giving them
payed holiday will surely help the company to reduse the
wastage of the company

7) To give best quality product

The quality of the products is one of the important things to be

noted while manufacturing the products so while making such
goods the employee performance is the most important thing in
this aspect. When the employer understand what exactly the
employee want for him like proper working condition, facilities
a proper meal then the employee will happy and they will be
working whole hearty and this will defiantly result in the best
quality of the products which they will be producing

8) While making plans for the employees

The company makes certain plans for the employee so that they
can keep their employee happy and with the company for longer
period of time. This process is done by the HR manager for the
company when the employee of the company are happy and
when they are motivated to perform well in the organization
there is increase in the production of the company. So how to
increase the production? How to produce the best quality of
products ? how to satisfy the customers? The planning is the
process which give guidelines to the company about how to do
the

9) to set goals for the company

Every company have some set goals so that they can go with the
flow and can earn huge profit the psychological factor affect this
process as it help the company to make plans according to the
market condition as the market is ever changing and that needs
to understand by the company and thus with the change In the
market there should be change in the company therfore the
psyclogoical factor plays a very important role in the company.
The mindset of the employer till the mindset of the consumer is
being needed to study so that they can understand the market.

11)

For understanding the behavior

behavioral psychology is a scientific approach that limits the

study of psychology to measurable or observable behavior."
In fact, if you've ever attended a Psych 101 class, you can
probably recall the names of famous behaviorists like Skinner,
Watson and Pavlov.
While this concept may not sound all that relevant to business
owners, theres actually a lot to be learned from behaviorism.
Why? Perhaps no one explains it better than Darren Kaplan, cofounder and CEO of the analytics firm HiQ, who notes, "When
you understand human behavior, you improve your chances of
making your business succeed."

12)

For getting best employees

o Personnel recruitment is the process of identifying

qualified candidates and getting them to apply for jobs
with an organization. Personnel-recruitment processes
include developing job announcements, placing ads,
defining key qualifications for applicants, and
screening out unqualified applicants.
o Personnel selection is the systematic process of hiring
and promoting personnel. Personnel-selection systems
employ evidence-based practices to determine the
most qualified candidates: interviews, personality
inventories, psychomotor and physical ability tests,
and work samples.
o IO psychologists must evaluate the validity of
measures in order to determine the extent to which
selection tools predict job performance. In order to do
this, they look at content validity, construct validity,
and/or criterion validity.

IMPORTANCE OF HR IN 10 AREAS IN ORGANIZATION

Human resources is important to organizations in

10 specific areas, ranging from strategic planning to company
image. HR practitioners in a small business who have wellrounded expertise provide a number of services to employees.
The areas in which HR maintains control can enhance
employees perception of HR throughout the workforce when
they believe HR considers employees to be its internal
customers and renders services with that in mind.

Strategy
HR improves the company's bottom line with its knowledge of
how human capital affects organizational success. Leaders with
expertise in HR strategic management participate in corporate
decision-making that underlies current staffing assessments and
projections for future workforce needs based on business
demand.

Compensation
HR compensation specialists develop realistic compensation
structures that set company wages competitive with other
businesses in the area, in the same industry or companies
competing for employees with similar skills. They conduct
extensive wage and salary surveys to maintain compensation
costs in line with the organization's current financial status and
projected revenue.
Benefits

Benefits specialists can reduce the companys costs associated

with turnover, attrition and hiring replacement workers. They are
important to the organization because they have the skills and
expertise necessary to negotiate group benefit packages for
employees, within the organization's budget and consistent with
economic conditions. They also are familiar with employee
benefits most likely to attract and retain workers. This can
reduce the companys costs associated with turnover, attrition
and hiring replacement workers.

Safety
Employers have an obligation to provide safe working
conditions. Workplace safety and risk management specialists
from the HR area manage compliance with U.S. Occupational
Safety and Health Administration regulations through
maintaining accurate work logs and records, and developing
programs that reduce the number of workplace injuries and
fatalities. Workplace safety specialists also engage employees in

promoting awareness and safe handling of dangerous equipment

and hazardous chemicals.
Liability
HR employee relations specialists minimize the organization's
exposure and liability related to allegations of unfair
employment practices. They identify, investigate and resolve
workplace issues that, left unattended, could spiral out of control
and embroil the organization in legal matters pertaining to
federal and state anti-discrimination and harassment laws.

Training and Development

HR training and development specialists coordinate new
employee orientation, an essential step in forging a strong
employer-employee relationship. The training and development
area of HR also provides training that supports the company's
fair employment practices and employee development to prepare
aspiring leaders for supervisory and management roles.

Employee Satisfaction
Employee relations specialists in HR help the organization
achieve high performance, morale and satisfaction levels
throughout the workforce, by creating ways to strengthen the
employer-employee relationship. They administer employee
opinion surveys, conduct focus groups and seek employee input
regarding job satisfaction and ways the employer can sustain
good working relationships.

Recruitment
HR recruiters manage the employment process from screening
resumes to scheduling interviews to processing new employees.
Typically, they determine the most effective methods for
recruiting applicants, including assessing which applicant
tracking systems are best suited for the organization's needs.

Selection

HR professionals work closely with hiring managers to effect

good hiring decisions, according to the organization's workforce
needs. They provide guidance to managers who aren't familiar
with HR or standard hiring processes to ensure that the company
extends offers to suitable candidates.

Compliance
HR workers ensure that the organization complies with federal
state employment laws. They complete paperwork necessary for
documenting that the company's employees are eligible to work
in the U.S. They also monitor compliance with applicable laws
for organizations that receive federal or state government
contracts, through maintaining applicant flow logs, written
affirmative action plans and disparate impact analyses.

Importance of the topic

The psychology plays vital role for the company and it is very
important for the company and those importance are mentioned
below

1) to have a overlook of the employee

2) to increase the production of the company
3) to develop the company
4) to develop the employee policy

5) to understand the mindset of the people

6) to generate employment
7) staff function

LATEST TRENDS IN HRM

The world of work is rapidly changing. As a

part of organization, Human Resource Management (HRM)
must be prepared to deal with effects of changing world of work.
For the HR people it means understanding the implications of
globalization, work-force diversity, changing skill requirements,
corporate downsizing, continuous improvement initiatives, reengineering, the contingent work force, decentralized work sites
and employee involvement for which all and more have the
financial implication to organization. Let alone on the
employees side where engagement, satisfaction, motivation,
retention, absenteeism, turnover have to be checked. As a rule
human resource management has to venture into new trends in

order to remain relevant corporate development partner. Look at

the new trends bellow;

1. Globalization and its implications

Business today doesnt have national
boundaries it reaches around the world. The rise of
multinational corporations places new requirements on human
resource managers. The HR department needs to ensure that the
appropriate mix of employees in terms of knowledge, skills and
cultural adaptability is available to handle global assignments.
In order to meet this goal, the organizations must train
individuals to meet the challenges of globalization. The
employees must have working knowledge of the language and
culture (in terms of values, morals, customs and laws) of the
host country.
Human Resource Management (HRM) must also develop
mechanisms that will help multicultural individuals work

together. As background, language, custom or age differences

become more prevalent, there are indications that employee
conflict will increase. HRM would be required to train
management to be more flexible in its practices. Because
tomorrows workers will come in different colors, `nationalities
and so on, managers will be required to change their ways. This
will necessitate managers being trained to recognize differences
in workers and to appreciate and even celebrate these
differences.

2. Work-force Diversity

In the past HRM was considerably simpler

because our work force was strikingly homogeneous. Todays
work force comprises of people of different gender, age, social
class sexual orientation, values, personality characteristics,
ethnicity, religion, education, language, physical appearance,

marital status, lifestyle, beliefs, ideologies and background

characteristics such as geographic origin, tenure with the
organization, and economic status and the list could go on.
Diversity is critically linked to the organizations strategic
direction. Where diversity flourishes, the potential benefits from
better creativity and decision making and greater innovation can
be accrued to help increase organizations competitiveness. One
means of achieving that is through the organizations benefits
package. This includes HRM offerings that fall under the
heading of the family friendly organization. A family friendly
organization is one that has flexible work schedules and
provides such employee benefits such as child care. In addition
to the diversity brought by gender and nationality, HRM must be
aware of the age differences that exist in todays work force.
HRM must train people of different age groups to effectively
manage and to deal with each other and to respect the diversity
of views that each offers. In situations like these a participative
approach seems to work better.

3. Changing skill requirements

Recruiting and developing skilled labor is
important for any company concerned about competitiveness,
productivity, quality and managing a diverse work force
effectively. Skill deficiencies translate into significant losses for
the organization in terms of poor-quality work and lower
productivity, increase in employee accidents and customer
complaints. Since a growing number of jobs will require more
education and higher levels of language than current ones, HRM
practitioners and specialists will have to communicate this to
educators and community leaders etc. Strategic human resource
planning will have to carefully weigh the skill deficiencies and
shortages. HRM department will have to devise suitable training
and short term programs to bridge the skill gaps & deficiencies.

4. Corporate downsizing.

Whenever an organization attempts to

delayer, it is attempting to create greater efficiency. The premise
of downsizing is to reduce the number of workers employed by
the organization. HRM department has a very important role to
play in downsizing. HRM people must ensure that proper
communication must take place during this time. They must
minimize the negative effects of rumors and ensure that
individuals are kept informed with factual data. HRM must also
deal with actual layoff. HRM dept is key to the downsizing
discussions that have to take place.

5. Continuous improvement programs

Continuous improvement programs focus on

the long term well-being of the organization. It is a process
whereby an organization focuses on quality and builds a better
foundation to serve its customers. This often involves a
companywide initiative to improve quality and productivity. The

company changes its operations to focus on the customer and to

involve workers in matters affecting them. Companies strive to
improve everything that they do, from hiring quality people, to
administrative paper processing, to meeting customer needs.
Unfortunately, such initiatives are not something that can be
easily implemented, nor dictated down through the many levels
in an organization. Rather, they are like an organization wide
development process and the process must be accepted and
supported by top management and driven by collaborative
efforts, throughout each segment in the organization. HRM
plays an important role in the implementation of continuous
improvement programs. Whenever an organization embarks on
any improvement effort, it is introducing change into the
organization. At this point organization development initiatives
dominate. Specifically, HRM must prepare individuals for the
change. This requires clear and extensive communications of
why the change will occur, what is to be expected and what
effect it will have on employees.

6. Re-engineering work processes for improved productivity

Although continuous improvement initiatives are

positive starts in many of our organizations, they typically focus
on ongoing incremental change. Such action is intuitively
appealing the constant and permanent search to make things
better. Yet many companies function in an environment that is
dynamic- facing rapid and constant change. As a result
continuous improvement programs may not be in the best
interest of the organization. The problem with them is that they
may provide a false sense of security. Ongoing incremental
change avoids facing up to the possibility that what the
organization may really need is radical or quantum change. Such
drastic change results in the re-engineering of the organization.
Re-engineering occurs when more than 70% of the work
processes in an organization are evaluated and altered. It
requires organizational members to rethink what work should be
done, how it is to be done and how to best implement these

decisions. Re-engineering changes how organizations do their

business and directly affects the employees. Re-engineering may
leave certain employees frustrated and angry and unsure of what
to expect. Accordingly HRM must have mechanisms in place for
employees to get appropriate direction of what to do and what to
expect as well as assistance in dealing with the conflict that may
permeate the organization. For re-engineering to generate its
benefits HRM needs to offer skill training to its employees.
Whether its a new process, a technology enhancement, working
in teams, having more decision making authority, or the like,
employees would need new skills as a result of the reengineering process.

7. Contingent workforce

A very substantial part of the modern day

workforce are the contingent workers. Contingent workers are

individuals who are typically hired for shorter periods of time.

They perform specific tasks that often require special job skills
and are employed when an organization is experiencing
significant deviations in its workflow. When an organization
makes its strategic decision to employ a sizable portion of its
workforce from the contingency ranks, several HRM issues
come to the forefront. These include being able to have these
virtual employees available when needed, providing scheduling
options that meet their needs and making decisions about
whether or not benefits will be offered to the contingent work
force.
No organization can make the transition to a contingent
workforce without sufficient planning. As such, when these
strategic decisions are being made, HRM must be an active
partner in these discussions. After its entire HRM departments
responsibility to locate and bring into the organization these
temporary workers. As temporary workers are brought in, HRM
will also have the responsibility of quickly adapting them to the
organization. HRM will also have to give some thought to how
it will attract quality temporaries. This is sometimes done on

consultancy basis. Consultancy work is often a short time basis

and to re-invent the organizations operation such a workforce of
consultancy is vital.

8. Mass Customization

There is a lot going on already within HR

concerning mass customization, the optimal combination of
mass production with customization. Weve seen companies
basing employment arrangements on learning styles and
personalities, allowing employees to choose between lower base
pay and higher bonuses vs. higher base pay and lower bonuses,
and changing from career ladders with a straight shot to the top
to career lattices where a sideways move is considered a good
career move. Here, HR has done a great job of applying HR
principles to its own traditional functional processes.
HR will need to take the tools of marketing around
customization for consumers and clients and applying them to

the task of talent segmentation. The key is to optimize. At one

extreme, a personal employment deal for every individual would
be chaotic. At the other extreme, defining fairness as same for
everyone risks missing important benefits of customization,
and in fact may be unproductive and unfair.
Thus, HR should develop principles for understanding the
optimal level of customization in the employment relationship.
Moreover, because customization will often mean that different
groups of employees receive different employment
arrangements based on their needs or the way they contribute,
HR must develop principles that equip leaders to explain these
differences to employees. Our work suggests that while many
HR managers understand the need for customization and
differentiation in principle, they resist it because they simply
dont feel well-equipped to explain them. It is far easier to say,
We do the same thing for everyone, so its out of my hands.
The concept of fairness is sometimes confused with treating
everyone the same.

9. Decentralized work sites

Work sites are getting more and more

decentralized. Telecommuting capabilities that exist today have
made it possible for the employees to be located anywhere on
the globe. With this potential, the employers no longer have to
consider locating a business near its work force. Telecommuting
also offers an opportunity for a business tin a high cost area to
have its work done in an area where lower wages prevail.
Decentralized work sites also offer opportunities that may meet
the needs of the diversified workforce. Those who have family
responsibilities like child care, or those who have disabilities
may prefer to work in their homes rather than travel to the
organizations facility. For HRM, decentralized work sites
present a challenge. Much of that challenge revolves around
training managers in how to establish and ensure appropriate
work quality and on-time completion. Work at home may also
require HRM to rethink its compensation policy. Will it pay by

the hour, on a salary basis, or by the job performed? Also,

because employees in decentralized work sites are full time
employees of the organization as opposed to contingent workers,
it will be organizations responsibility to ensure health and
safety of the decentralized work force.

10. Employee involvement

For todays organizations to be

successful there are a number of employee involvement
concepts that appear to be accepted. These are delegation,
participative management, work teams, goal setting, employee
training and empowering of employees. HRM has a significant
role to play in employee involvement. What is needed is
demonstrated leadership as well as supportive management.
Employees need to be trained and thats where human resource
management has a significant role to play. Employees expected

to delegate, to have decisions anticipatively handled, to work in

teams, or to set goals cannot do so unless they know and
understand what it is that they are to do. Empowering employees
requires extensive training in all aspects of the job. Workers may
need to understand how new job design processes. They may
need training in interpersonal skills to make participative and
work teams function properly.

11. Technology

With the current technological advancement

and its projection in the future, it has brought in new eyes in the
face of HRM. A number of computerized systems have been
invented to help in the HRM of which they are seen as simplifier
of HR functions in companies. Large or multinational
organizations using some of the human resources information

systems are reaping big. You do not have to stay in a particular

location to do your duties but you can do on a mobile basis. For
instance the paper work files are being replaced by HRMIS
which may be tailor made or Off the Shelf. These systems help
in handling a lot of data on a chip other than having a room full
of file shelves.
What HRM is concerned with here is the safety (confidentiality)
of the data/information of staff, and therefore it is at the
forefront of having to train personnel in operating such systems
and developing the integrity of such personnel to handle the
sensitivity of the matter.

12. Health

With the emergence of the wellness clubs

and fitness centers together with the need for having healthy
workforce, it has emerged that HRM has to move to another step
like having to subscribe for its employees to such clubs, paying

health insurance services for the staff. This is not only a

productivity strategy but also a strategy used to attract and retain
valuable employees.
In the current situation as it is now especially with the outbreak
of HIV/AIDS epidemic, it has been seen to be of value to have
infected and affected employees have special attention so that
they can have confidence of support from the employers. With
its effect leading to stigmatization, HRM has to think of
counseling and guiding such employee so that despite of the
effect they (employee) remain productive. Cancer is another
kind of issue that has seen the current trend in HRM look closer
to health and wellness of employees. Cancers of all types are
endemic to employees. Couple with other communicable and
none communicable diseases HRM has no option other than to
advice management to invest in health care packages that will
revitalize the performance of the affected and infected
employees
Therefore for HRM to continue showing relevance it has shifted
to providing health services to staff through health insurance,
sensitization, and free medical treatment bills. This has seen

high results in not only in performance but also in attraction and

retention of highly qualified personnel.

13. Family work life balance

Over a long time now in HRM history it has been a big
debate about family life work balance. Employees have been on
toes of the employers to see if there could be justice done and on
the other hand employers have been keen to minimize the effect
of the same. The fact is a happy family is equal to a happy
workforce. With the current trend HRM have to work it out that
every employees family to some extent is a happy one.
Therefore investing in what may seem out hand for the
organization is inevitable. It is time HRM to convince
management to organize family day out for the staff and their
families, sacrifice sometimes for days off to enable employees to
attend to their family issues.

The employment laws unlike from the past now allow family
leaves and above all you have parental leave (paternity and
maternity). In this moment the member of the family is not
missed. Time off your duty is to enrich one with family chore
which help identify the employee with the organization. From
break of family affairs of course an employee is rejuvenated and
recognizes that the employer values him so much to the extent
that he/she is allowed to visit, stay and enjoy family bond.
Still it is realized that the family bond is a cost to employer in
terms of time but it is a great motivator the employee. Which
leads to high productivity. Therefore the HRM has to stay tuned
the the dynamics of family needs of employees and go a step
ahead to provide development assistance like loans to meet
family needs and social development.

14. Confidentiality
The current trends have been seen as new
challenges in the terms of costs especially in the short run but
for organization to strive well in this competitive market to

together with the labor mobility it is imperative important to

rethink the HRM in terms of the current trends at all levels.
It goes without say that as longer as there is no clear defined
human resource management strategies in the given organization
there is definitely a problem boiling in the same organization or
an explosion is bound to happen. With the current trend in
managing the most valued organization resource, organizations
have to dig deeper to maintain

Some facts that every HR should Know about

In todays litigious workplace atmosphere, employers need to be

mindful of the possibility of wrongful-discharge lawsuits
from employees who have been let go

1. Although many employment relationships are at-will,

meaning that either the employer or the employee may
terminate the relationship at any time with or without
reason, that doesnt give employers a blank check. If an
employer terminates an employee, even one who is at-will,
in violation of federal, state, or local anti-discrimination
laws, thats illegal.

2. Federal anti-discrimination laws protect employees from

being discharged or otherwise penalized with respect to the
terms and conditions of employment on the bases of race,
color, national origin, sex, religion, disability, pregnancy,
and age. State laws may mirror these categories of
protections and, in some instances, be tougher than the
federal laws.

3. Not all wrongful-termination claims are discriminationbased. An employee who given a contract of employment,
either written or implied, and is terminated before the
expiration of, or in violation of, the contract, may be able to
bring a claim for wrongful discharge and breach of
employment contract.

4. Wrongful discharge suits may also be brought in situations

where the employer has retaliated against an employee for
exercising a right that is supported by the law. For example,
if an employee is terminated because he or she reported the
employer to a governmental body for violation of
workplace safety laws, the employee may be able to
successfully bring a wrongful discharge lawsuit.

5. If an employee refuses an employers order to perform an

illegal act and is subsequently terminated, there may be a

wrongful discharge cause of action. For example, if a

supervisor orders an employee to perform a duty in
violation of safety laws, the employee may refuse and
cannot be fired for refusing.

6. An employee whos terminated for taking time off under a

law which gives him or her a legal right to have that time
off such for voting or military service may also have
a wrongful discharge cause of action.

7. An employer who has not followed specific disciplinary

and termination policies that are in place can also face a
wrongful-discharge suit. For example, if an employer has a
handbook that states that employees are entitled to receive
two written warnings for misconduct or poor performance
before they are terminated, and an employee is terminated

after receiving only one verbal warning, that employee may

be able to successfully bring a wrongful discharge action.

IMPORTANCE OF CHANGE MANAGEMENT

Change is happening in your organization.

Every day, new initiatives and projects are launched to improve
performance, increase profits, and enhance your competitive
advantage. You could be implementing technology to enable a
more mobile workforce, reengineering a process to ensure
regulatory compliance or pursuing an enterprise-wide
transformation around customer experience.
There is a common denominator for achieving the intended
outcomes of your initiative: people. Your initiatives impact how
individual people do their work: their processes, job roles,

workflows, reporting structures, behaviors and even their

identity within the organization.
Change management is the approach to driving adoption and
usage so initiatives deliver expected results and outcomes. Here
is why you need change management:

Thrive in an Ever-Changing World

Gone are the days of one large change every 36

months. Organizations are facing faster, more complex, more
interdependent and more cross-functional change than ever
before. Being able to deliver results on multiple changes allows
an organization to achieve their strategic vision and thrive in
todays changing landscape. Applying change management
enables organizations to deliver results on each change more
effectively and build competencies that grow the organizations
capacity to tackle more changes at one time.

Deliver the People-Dependent Portion of Project ROI

Changes in organizations are undertaken to

improve performance. Some of that improvement comes from
just installing the solution. However, much of the benefit and
expected improvement is tied to people changing how they do
their jobs.The adoption contribution of the project: the
percentage of a project benefits that depend on people changing
how they do their jobs. For important projects, that number is
commonly in the 80% to 100% range. Change management
focuses on helping people change how they do their jobs,
allowing us to capture the adoption contribution and the peopledependent portion of project ROI.

Close the Gap Between Requirements and Results

All too often, organizational changes meet

requirements without delivering expected results. They deliver
the necessary outputs without delivering on expected outcomes.

The focus of the change effort is on the solution rather than the
benefits of the solution. The gap that exists between
requirements and results, between outputs and outcomes,
between solutions and benefits is the people who bring the
change to life in their day-to-day work. Change management
enables the closing of this gap by effectively supporting and
equipping those people impacted by a change to be successful in
bringing it to life in how they work.

Increase Likelihood of Project Success

The data is abundantly clear. The better we apply

change management, the more likely we are to deliver on project
objectives. Proscis correlation data from over 2,000 data points
and eight years shows that initiatives with excellent change
management are six times more likely to meet objectives than
those with poor change management. By simply moving from
poor to fair, change management increases the likelihood of
meeting objectives by three fold. McKinsey data also shows that
the ROI captured from excellent change management is

significantly more than with poor change management. Change

management, when applied effectively on a project, significantly
increases the success rate of the effort.

Mitigate Mission-Critical Risk

Ignoring the people side of change creates risk.

When the adoption and usage of a solution is ignored, and the
focus is exclusively on meeting technical requirements, the
result is excessive risk and cost. Projects are subjected to RE
costs like redesign, rework, revisit, redo, retrain, rescope, and in
some cases, retreat. Absenteeism and attrition increase.

Productivity declines. Customers feel the impact when they

were not supposed to. Morale suffers. Employees disengage.
Failing to plan for and address the people side of change is
costly, and change management is the discipline to help mitigate
those mission-critical risks.

Take the Chance out of Change

Change is difficult. To the degree that we can, we

want to remove the chance or variability associated with change.
Project management has accomplished this by providing
direction on sequencing milestones, deliverables, activities and
resources over the lifecycle of an effort. Unless we proactively
support and guide people through the changes our projects bring,
we leave them embracing change to chance. Change
management removes the chance from change by providing
employees with the preparation, support and skills they need to
succeed in change.

Treat Employees Right

How many times have you heard, our employees are our
most important asset? Then, when it comes time for a change to
be implemented, employees are sent an email on Monday for
training on Tuesday for go-live on Wednesday. That is not the
right way to treat people, especially the people that are your
most valuable asset. By proactively engaging and supporting
people in times of change, we demonstrate in action that we
value them.