HRM Challenges in the 21st Century

set by higher management. In this capacity, HR serves as an advocate for employees and champions their rights and perspectives. As Ulrich (2005) notes, HR activities under this role include providing information to employees about human resource policies related to various topics such as equal opportunities, business objectives, and customer requirements.

HR plays three main roles, as identified by Kossek and Block. The first is the operational role, which involves the day-to-day activities of managing employees, such as hiring, training, and payroll. The second is the transition role, which focuses on implementing new or revised HR practices and procedural changes to support business objectives. The third is the transformational role, in which HR acts as an agent of change and realigns systems to support significant organizational change.

In addition to these roles, Ulrich identifies four categories of HR roles: administrative experts, employee champions, change agents, and strategic partners.

According to Ulrich (1998 p.24), the HR profession is attempting to overcome negative perceptions and establish more proactive roles. The labor market trends have affected HR management in organizations, especially in the Asian subsidiaries of US-based companies who were the first to feel the impact of mergers and consolidations. This trend has now spread to a large portion of European and Asian firms. In 2006, an article from The Business Times predicted that M&A activities would rise in Asia Pacific in the coming years. Hewitt's study of Asia Pacific revealed that 44% of companies plan to increase M;A activities in the next three years, with another 29% expecting a slight increase. Over the last 20 years, there have been mergers and acquisitions of an unprecedented scale, along with other

corporate reorganizations.

According to Hewitt (2006), many organizations engage in various activities to improve their market access and develop coordinated strategies, often including mergers and acquisitions. This is also seen as a way to generate revenue by sharing employee talents, technology, and ideas. A study by Harvard (2000) found that 80% of fund investors at LBO firms enjoyed returns equal or greater than their cost of capital on M;A acquisitions. For instance, the DBS and POSB merger in 1998 resulted in a total cost savings of 17.6 million within operations (Fisher, Schoenfeld ; Shaw, 1999, p. 93).

Moreover, DBS' expertise in treasury has benefited POSB's substantial liquidity (Singh, Pangarkar ; Heracleous, 2003 p. 221). While mergers and acquisitions can bring attractive business opportunities, they can also create various problems such as demoralized workers who have lost jobs and other benefits, conflicts due to differences in cultures and working styles among employees, changes in corporate culture and loss of identity, as well as unclear operational and policy changes for employees (Marks ; Mirvis, 2000). Often, the failure of an M;A can be attributed to companies neglecting the importance of the human factor.

Despite acknowledging the significance of HR matters such as cultural suitability and leadership evaluation, businesses are overlooking long-term goals in favor of short-term goals (e.g.: financial and legal transactions) due to diligence. However, these are precisely the areas where risks to the ultimate success of a merger or acquisition lie (Hewitt, 2006). Therefore, HR contributes significantly to promote cultural compatibility, effective leadership evaluation and selection, strategic alignment, efficient communication across management and staff, retention of crucial employees, and harmonization of compensation and benefits programs. Only by constructing

an action-oriented strategy that fulfills the aforementioned goals can companies achieve the success of an M;A.

Human Resource Management is crucial for organizations in today's competitive environment, as the demand for skilled individuals increases and the talent pool diminishes. With companies seeking employees with technical skills or managerial experience due to rapid economic growth, there is a shortage of qualified candidates. This presents recruitment and retention challenges for HR managers. To remain competitive and maintain productivity, quality, and workforce diversity, companies must recruit and develop skilled labor through talent management. Effective talent management includes attracting, recruiting, motivating, developing, and retaining staff.

Talent management technologies such as E-recruitment and workforce planning have been implemented by organizations. Employers must now scrutinize qualifications and competencies more thoroughly to hire the right candidates. To attract the best talent on a regional or global level, companies must offer highly attractive employment packages, including compensation, training, development, and career opportunities. Government policies for HR functions could also aid in capturing talents. Singapore, as an island nation with a population of only three million, faces unique labor problems and the necessity of hiring talent from abroad.

The Singaporean government has consistently adhered to a liberal policy towards the admission of skilled and professional workers (Tan & Torrington, 1998). As evidence of this, Singapore offers various schemes whereby talented individuals from overseas can obtain permanent residency (Singapore, 1994). Additionally, the country's economic development board is home to an international Manpower Division, which searches worldwide for highly skilled individuals and assists them in securing employment in Singapore. Overall, these government policies and programs have had a significant impact on the ability of HR departments within organizations

to locate and hire top talent. One major trend with far-reaching implications for HR professionals is the ongoing evolution towards a global economy, which has fostered increased international competition in goods and services across major economies.

In 1999, Fisher, Schoenfeld, and Shaw found that open global economies in developing countries experienced 4.5% growth per year over the past 20 years. Sachs and Warner (1999) from Harvard University made a similar discovery. This shift towards globalization has presented a significant challenge for HR professionals who are increasingly tasked with aiding business globalization efforts. However, the benefits of the global market include increased competition leading to improved goods and services at affordable prices, which creates better opportunities and higher paying jobs for people worldwide compared to non-global economies.

(Micheal, 1999) The effective utilization of resources and diverse talents is crucial for achieving global success (Micheal, 1999 p. 2). Placing employees in foreign subsidiaries is a key challenge in the global economy. Human resources managers must ensure that employees have the necessary knowledge, skills, and cultural adaptability for global assignments. Stephen (1999) emphasizes the importance of exploring and anticipating the dynamics of global business development.

Efficient HR departments that keep a close eye on the company are able to anticipate the organization's evolving requirements more effectively (John, 2001). Global standardization enables the movement of individuals between nations while also allowing the dissemination of "best practices" across them (Torrington, Hall & Taylor, 2001, p.19). Although it is generally considered preferable in theory to standardize policies, procedures, and principles in order to create a clear, coherent international identity and corporate culture, certain differences such as tax regimes and qualification systems make this

a challenging task for HR functions.

HRM needs to take a worldwide perspective on all aspects, such as HR planning, training, development, and recruitment and selection, to stay competitive in the evolving world (Nelson & Campbell, 1996, p. 22). The use of technology is revolutionizing the work of HRM, altering their tasks and the way work is done. Multiple technologies such as technology, telecommunications, biotechnology and laser-based applications are used in conjunction to provide prospects and challenges.

(Torrington, Hall & Taylor, 2001, p. 0) The use of technology has led to the implementation of several new practices within organizations such as E-HRM, telecommuting, computerized monitoring systems, online recruitment methods, intranet for T&D purposes, computerized HR planning and payroll administration and more. This has made daily operational activities more convenient and effective while reducing costs and manpower required (Thomason, 1998). Additionally, technology changes the structure, work allocation and culture of organizations. Therefore, employee training and development are crucial in adapting to new technologies.

The task faced by managers is to guarantee that new technology is utilized effectively by employees, while also discovering fresh management techniques for staff involved in research and development functions. It is essential to manage the rapid evolution of technology and optimize its application. Nelson & Campbell (1996) state that the 21st-century workforce will be characterized by increased cultural, gender, and age diversity, potentially due to firms expanding into global markets.

HR professionals need to recognize that diversity in the workforce extends beyond numerical representation. Each employee brings their own distinct perspectives, cultures, lifestyles, values, attitudes, and needs. As stated by the president of Boeing, a company can only achieve its full potential when it leverages

the diverse skills of all employees towards shared objectives. Therefore, organizations must strive to convert homogeneous workspaces into heterogeneous ones that appreciate every employee.

The workforce has become increasingly diverse, prompting organizations to reevaluate their policies, practices, and values. This change can be attributed in part to the shift from a manufacturing-focused economy to one that centers on services and information (Kossek & Block, 2000). In an economy where personal interaction is vital, an organization's ability to engage effectively with a varied market is crucial for success.

Effective diversity management leads to a reduction in organizational waste by decreasing lawsuits and conflicts, and improving morale. To achieve diversity at the management and executive levels, organizational practices must encourage differences as assets (Nelson ; Campbell, 1996, p.26). Therefore, HR personnel must implement diversity processes such as cultural audits, cultural awareness training, skill building training, and diversity-focused hiring strategies across all management levels (Kossek ; Block, 2000). These processes promote understanding and acceptance of individual differences among employees. Ultimately, managing diversity entails developing human resource practices and organizational systems that value and support the full participation of all members regardless of their identity.

(Kossek ; Block, 2000) The problem of aging workforce is another issue related to workforce diversity. The Singaporean workforce is already experiencing the drastic consequences of an aging population, with the number of workers aged 65 projected to reach 800,000 by 2030. As new generations bring new values, HR faces a challenge in instilling these values within the workforce. Furthermore, organizations will need to find ways to control costs and prepare for the recruitment, retention, and development of the younger labor force.

HRM faces the challenge of upgrading

skills of senior employees due to technological change, while providing career growth opportunities for younger staff despite a large senior workforce. The impact of technology advancement, workforce diversity enlargement, rapid globalization and increased M;A activities have resulted in changes to HRM industry approaches and rendered traditional personnel HR management obsolete in the 21st century.

It is becoming more important for HRM to be integrated into strategic management in order to use human resources towards achieving strategic goals. This has resulted in a switch from a soft and welfare-centered approach to personnel management, to a more business-oriented one. Internal and external forces have driven the transformation of HRM from a maintenance function with minimal impact on profits, to what many believe is crucial for sustained competitive advantage in today's global economy. Bohlander offers additional information on this subject.

The text discusses two sources: "Managing human resources" by G. Snell and S. Sherman, which is the 12th edition published in Mason, Ohio by South-Western College Pub. in 2001; and "Harvard business review on mergers and acquisitions" from 2001, published in Boston, Mass. by Harvard Business School Press, authored by Hopkins. The text is enclosed in a paragraph tag.

B & Markham's 2003 book, titled "e-HR : using intranets to improve the effectiveness of your people", and E Kossek and Block's work are both valuable resources on the use of intranets for improving employee effectiveness, published in Aldershot, Hampshire and Burlington, Vt. by Gower.

Leopold (2000) and R (2000) both published works on managing human resources in the 21st century, with titles including "Human Resource Management" and "Managing Human Resources in the 21st Century," respectively. These publications were released by South-Western College

Pub in locations such as Arcadia, CA and Cincinnati, Ohio.

J. Harris and L. Watson's book "Strategic Human Resourcing", published in London by Financial Times/Pitman in 1999, focuses on the topic of human resources strategy. Meanwhile, Micheal J.'s 2004 work "HRD in the age of globalization", released by Basic Books in New York, explores the relationship between globalization and human resource development. Finally, "The Economist Magazine" article by J. Sachs from 1997 presents further thoughts on the subject.

The book titled "Talent Management Systems: Best Practices in Technology Solutions for Recruitment, Retention and Workforce Planning" was authored by Shweyer. A in 2004. It features a foreword by Connie Pascal and was published by John Wiley Singh. K. Pangarkar. N in Toronto, Ontario.

The following works are referenced: "Business Strategy In Asia" by Heracleous (2004, Singapore: Thomson Learning), "Globalization: the people dimension" by Stephen J. (1999, London: Kogan Page), and a work by Tan and Torrington.

D. (2004) authored "Human resource management in Asia" published by Pearson/Prentice Hall, Singapore while Thomason. G. (1988) contributed to "Human Resource Management" published by Institute of Personnel Management, London in the same year. Another notable author is Torrington.

D & Hall. L authored the book Human Resource Management, which is now in its 5th edition and published by Harlow Financial Times Prentice Hall in 2001.