Adaptive Capability of HR towards Revival and Transformation of Industry

Abstract

Todays business revolves largely around people, not capital. This is of great importance especially in people businesses like software companies with relatively high people costs and low capital costs. Humans and the potential they possess drive an organization. Todays organizations are continuously changing. Organizational change impacts not only the business but also its employees. In order to maximize organizational effectiveness, human potential - individuals capabilities, time, and talents - must be managed. Human resource management works to ensure that employees are able to meet the organizations goals by motivating them to do better continuously. Hence, proper treatment of the human resource - employees in an organization should be given priority. Where an extensive range of HR policies exist and are well known, managers are provided with the tools, techniques and procedures to use in people management. These then can be expected to modify or influence the relationship between managers and their subordinates. Employee commitment to the organization will be influenced by their perceptions of these practices as well as their relationship with their managers. They have been subjected to intense pressure to cut down costs while keeping the standards and quality of services high. In such a scenario, the stage is set for path-breaking reforms and candid innovation to keep both factors of production, that is, employees and employers satisfied. This paper discusses in detail the importance of innovative Human Resource Management techniques and practices that have deemed importance in the current economic scenario. It also discusses the importance and functions of a Human Resource Manager and the prudent steps that he/she can take in order to increase organizational effectiveness.