Emerging Trends in HR

1. By- Prachi Agarwal

2. 1) Review culture and continuous feedback.
One of the most predicted HR trends for 2018 is the culture
of reviews and continuous feedback in the workplace. The
methods that people use to give feedback has changed over
the years. As an HR leader or a manager, you should focus
on improving your departments by providing frequent and
constructive feedback. According to several studies, most
employees would prefer real-time reviews or feedback
instead of the annual performance reviews. This is because
the practice helps them to know where they might be going
wrong, and offer them a chance to correct themselves
before the annual evaluation. They do not have to wait for
twelve months to learn where they went wrong.
Continuous feedback will also help the organization grow
and avoid significant loses.

3. 2) Speeding up of performance management.
We have come to learn that job satisfaction and
performance go together. Both seem to develop when
employees have an opportunity to explore their
creativity. Most leading enterprises apply this
knowledge to offer growth of their employees. By
developing systems which measure and also manage
performance, you can be able to speed up growth and
notice the significant transformation. It is vital to
promote healthy performance management to both
individual level and organizational level if you want
your company to succeed.

4. 3) Digitized rewards and recognition
One of the best motivators for most employees has
been receiving praise and recognition from their
managers. In 2018, every person expects the trend
to advance. We all hope to see digitized rewards
and recognition. Hence, to make your employees
productive, digital recognition is a trend you need
to implement. Another HR trend expected is peer
to peer recognition. Start by using the social
platforms and offer a suitable platform for your
employees to recognize and reward their
contribution.

5. 4) HR Bots (Artificial Intelligent driven HR)
Another interesting HR trend to focus in 2018 is AI (
Artificial Intelligence) driven human resources. Even
though it is not expected to eliminate the usual human
HR, it will transform and help to analyze the data. It
will also assist in the primary repetitive HR tasks.
When you use Artificial intelligence to recruiting the
workforce, you will be able to eliminate bias. It will
help to access the candidates based on their
requirements without favoritism. It will also let your
team focus on employee relations instead of being
caught up in unexciting tasks.

6. 5) Learning management systems
The need for skills development is important for all
your employees no matter which stage of career they
are at the moment. Constant learning is expected to be
among the most popular and emerging HR trends in
2018. It is essential for any organization that wants to
grow to provide learning opportunities to all
employees. Through learning, your employees can be
able to improve their skills and be able to give the best
while working. Your organization can have learning
management systems that will help you to check and
track your employees learning process accurately, and
also help to promote collaboration between various
departments in your company.

7. 6) Increase in part-time employment and contingent
workforce management
In most advanced countries, there is a usual trend
where more than 40 percent of employees are being
hired on a contingent basis. This means you need to
learn more about your workforce structure and
whether you can reconsider structuring it. You need to
learn and understand the type of systems and
technologies that can be implemented in your
organization. Even though it is not practical for any
organization to adopt a new workforce structure
instantly, it is essential to be aware of the emerging
HR trends. Keep in mind that your workforce is the
most critical asset in your organization.

8. 7) Use of Online skill assessments
Online assessments have also become increasingly
popular as an effective talent management tool.
Employee assessment is no longer just about
complying with an organization’s guidelines. It is
now an integral part of management strategy. In
today’s highly competitive global economy, an
organization has to have a grip of what exactly the
workforce knows, or doesn’t know. Online
assessments including tests, surveys, quizzes and
exams have been used to mitigate the risks or
relying on mere self-assessment.

9. Meaning:
 HR audit is an important management control device. It is a
tool to judge organisations performance and effectiveness of
HR management. According to Dale Yoder, “Personnel
audit refers to an examination and evaluation of policies,
procedures and practices to determine the effectiveness of
personnel management.”
 It is an analytical, investigative and comparative process. It
gives feedback about HR functions to operating managers
and HR specialists. It enables to know about the
effectiveness of personnel programmes. It further provides
feedback about how well managers are meeting their HR
duties. It provides quality control check on HR activities. It
refers to determine the effectiveness and efficiency of HRM.

10. Objectives of HR Audit:
 (1) To review every aspect of management of HR
to determine the effectiveness of each programmes
in an organisation.
 (2) To seek explanation and information in respect
of failure and success of HR.
 (3) To evaluate implementation of policies.
 (4) To evaluate the performance of personnel staff
and employees.
 (5) To seek priorities, values and goals of
management philosophy.

11. (1) The managements of organisations have realized the need for HR
audit because of powerful influence on motivation of employees at
work due to participation of employees in decision making.
(2) Growth of organisation needs HR audit. Large organisation requires
continuous feedback for improvement in performance of its employees.
(3) Mounting pressures from trade unions of employees and their
participation in formulating employment policy and questioning of
managerial competence have raised the need for HR audit.
(4) An effective two way communication system has also facilitated the
need for HR audit.
(5) Many plants are located at large distances. This also made the HR
audit compulsory.
(6) The HR audit becomes essential because of delegation of authority
and decentralization of power.

12. (1) Comparative Approach:Under this approach auditors identify one model
company and the results obtained of the organisation under audit are
compared with it.
(2) Outside Authority Approach:In outside authority approach a benchmark is
set to compare own results. A standard for audit set by outside consultant is
used as benchmark.
(3) Statistical Approach:Under statistical approach the statistical information
maintained by the company in respect of absenteeism, employee turnover etc.
is used as the measures for evaluating performance.
(4) Compliance Approach:Under compliance approach the auditors make a
review of past actions to determine to see whether those activities are in
compliance with the legal provisions and in accordance with the policies and
procedures of the company.
(5) MBO Approach:Under MBO approach specific targets are fixed. The
performance is measured against these targets. The auditors conduct the
survey of actual performance and compare with the goals set.

13.  The American Association of Accountants (AAA)
defines HRA as follows: ‘HRA is a process of
identifying and measuring data about human
resources and communicating this information to
interested parties’.
 Flamhoitz defines HRA as ‘accounting for people as an
organizational resource. It involves measuring the
costs incurred by organizations to recruit, select, hire,
train, and develop human assets. It also involves
measuring the economic value of people to the
organization’.
 According to Stephen Knauf, ‘ HRA is the
measurement and quantification of human organiza-
tional inputs such as recruiting, training, experience
and commitment’.

14.  Under conventional accounting, no information is made available about
the human resources employed in an organization, and without people
the financial and physical resources cannot be operationally effective.
 The expenses related to the human organization are charged to current
revenue instead of being treated as investments, to be amortized over a
period of time, with the result that magnitude of net income is
significantly distorted. This makes the assessment of firm and inter-firm
comparison difficult.
 The productivity and profitability of a firm largely depends on the
contribution of human assets. Two firms having identical physical assets
and operating in the same market may have different returns due to
differences in human assets. If the value of human assets is ignored, the
total valuation of the firm becomes difficult.
 If the value of human resources is not duly reported in profit and loss
account and balance sheet, the important act of management on human
assets cannot be perceived.
 Expenses on recruitment, training, etc. are treated as expenses and
written off against revenue under conventional accounting. All expenses
on human resources are to be treated as investments, since the benefits
are accrued over a period of time.

15.  Providing cost value information about acquiring,
developing, allocating and maintaining human resources.
 Enabling management to monitor the use of human
resources.
 Finding depreciation or appreciation among human
resources.
 Assisting in developing effective management practices.
 Increasing managerial awareness of the value of human
resources.
 For better human resource planning.
 For better decisions about people, based on improved
information system.
 Assisting in effective utilization of manpower.

16.  A Human Resource Management System or HRIS is a form of HR software that
combines a number of systems and processes to ensure the easy management of
human resources, business processes and data.

17.  Database-HRIS core offering includes a database to store
employee information. HR professionals can input all
personnel data into the system which can be accessed from
anywhere, round the clock. Types of data that HR
professionals collect in the database include compensation
history, emergency contact information, and performance
review. The core database can also be viewed as an online
backup for paper files.
 Time and Labour Management-Activities like time and
labour management can highly time consuming. HRIS
package allows employees to input their own hours worked
and allows managers to immediately verify vacation
requests, and the data is directly fed to the payroll. Time
and labour management also improves the HR department’s
ability to track punctuality and attendance.

18.  Payroll Function-Payroll function is yet another major
component of a HRIS model. HR can easily download
or unload employee hours, and issue cheques or
payroll deposits to employees. Salaried employees can
also be paid with substantially reduced risk of errors.
The HRIS payroll software usually improve tax
compliance for locations with multiple tax levels.
 Benefits-Some HRIS employers allow employers to
establish and maintain medical benefits and retirement
investments through their software. Such applications
allow employers to have one-stop shopping experience
for all their human resources data management needs.
Other HRIS packages facilitate medical benefits and
retirement investment deductions for payroll but not
the establishment of those benefits.

19.  Employee Interface-Most HRIS packages allow for an
employee to have limited user access. Employee users access
a part of the database where they can update their personal
information, review pay scales, change retirement benefit
programs, update direct deposit information or download
benefit election documents.
 Recruitment and Retention-Finally, it can be said
that recruitment and retention are the most important
components of HRIS. It goes without saying that it is the
anchor of all HR policies and systems. Finding new talent,
acquiring them, keeping them engaged and finally being
able to retain them are the major task of a HR person. HRs
also have to ensure that employees are not only able to do
their work, but they are also provided with the required
training; receives proper compensation and benefits from
the organization.

20.  Business process reengineering is the act of
recreating a core business process with the goal
of improving product output, quality, or
reducing costs.
 Typically, it involves the analysis
of company workflows, finding processes that
are sub-par or inefficient, and figuring out
ways to get rid of them or change them

21.  Step #1: Identity and Communicating the Need for
Change- If you’re a small startup, this can be a piece of
cake. You realize that your product has a high user
drop-off rate, send off a text to your co-founder, and
suggest a direction to pivot.
 For a corporation, however, it can be a lot harder.
There will always be individuals who are happy with
things as they are, both from the side of management
and employees. The first might be afraid that it might
be a sunk investment, the later for their job security.
 So, you’ll need to convince them why making the
change is essential for the company. If the company is
not doing well, this shouldn’t be too hard.

22.  Step #2: Put Together a Team of Experts- As with any other
project, business process reengineering needs a team of highly
skilled, motivated people who will carry out the needed steps.
In most cases, the team consists of:
 Senior Manager. When it comes to making a major change, you
need the supervision of someone who can call the shots. If a BPR
team doesn’t have someone from the senior management, they’ll
have to get in touch with them for every minor change.
 Operational Manager. As a given, you’ll need someone who
knows the ins-and-outs of the process – and that’s where the
operational manager comes in. They’ve worked with the
process(es) and can contribute with their vast knowledge.
 Reengineering Experts. Finally, you’ll need the right engineers.
Reengineering processes might need expertise from a number of
different fields, anything from IT to manufacturing. While it
usually varies case by case, the right change might be anything –
hardware, software, workflows, etc.

23.  Step #3: Find the Inefficient Processes and Define Key
Performance Indicators (KPI)
 Once you have the team ready and about to kick-off the initiative,
you’ll need to define the right KPIs. You don’t want to adapt to a
new process and THEN realize that you didn’t keep some
expenses in mind – the idea of BPR is to optimize, not the other
way around.While KPIs usually vary depending on what process
you’re optimizing, the following can be very typical:
 Manufacturing
 Cycle Time – The time spent from the beginning to the end of a process
 Changeover Time – Time needed to switch the line from making one
product to the next
 Defect Rate – Percentage of products manufactured defective
 Inventory Turnover – How long it takes for the manufacturing line to turn
inventory into products
 Planned VS Emergency Maintenance – The ratio of the times planned
maintenance and emergency maintenance happen

24.  ITMean Time to Repair – Average time
needed to repair the system / software / app
after an emergency
 Support Ticket Closure rate – Number of
support tickets closed by the support team
divided by the number opened
 Application Dev. – The time needed to fully
develop a new application from scratch
 Cycle Time – The time needed to get the
network back up after a security breach

25.  Step #4: Reengineer the processes and Compare KPIs-
Finally, once you’re done with all the analysis and
planning, you can start implementing the solutions and
changes on a small scale.
 Once you get to this point, there’s not much to add –
what you have to do now is keep putting your theories
into practice and seeing how the KPIs hold up.
 If the KPIs show that the new solution works better,
you can start slowly scaling the solution, putting it into
action within more and more company processes.
 If not, you go back to the drawing board and start
chalking up new potential solutions.

26.  One of the most referenced business process reengineering examples is the case of Ford,
an automobile manufacturing company.
 In the 1980s, the American automobile industry was in a depression, and in an attempt
to cut costs, Ford decided to scrutinize some of their departments in an attempt to find
inefficient processes.
 One of their findings was that the accounts payable department was not as efficient as it
could be: their accounts payable division consisted of 500 people, as opposed to Mazda’s
(their partner) 5.
 While Mazda was a smaller company, Ford estimated that their department was still 5
times biggerthan it should have been.
 Accordingly, Ford management set themselves a quantifiable goal: to reduce the number
of clerks working in accounts payable by a couple of hundred employees. Then, they
launched a business process reengineering initiative to figure out why was the
department so overstaffed.
 They analyzed the current system, and found out that it worked as follows:
 When the purchasing department would write a purchase order, they sent a copy to
accounts payable.
 Then, the material control would receive the goods, and send a copy of the related
document to accounts payable.
 At the same time, the vendor would send a receipt for the goods to accounts payable.
 Then, the clerk at the accounts payable department would have to match the three
orders, and if they matched, he or she would issue the payment. This, of course, took a
lot of manpower in the department.

27.  So, as is the case with BPR, Ford completely
recreated the process digitally.
 Purchasing issues an order and inputs it into an
online database.
 Material control receives the goods and cross-
references with the database to make sure it
matches an order.
 If there’s a match, material control accepts the
order on the computer.