The last 50 years caused a major transformation in the industrial landscape. The manager's emphasis shifted to service and ultimately to knowledge management from production and technology management. The web has revolutionized the way business is conducted across borders and cultures and knowledge easily accessible was also made by it. Entrepreneurs now have a way to reach markets world-wide at little cost. This has given more negotiating power symmetry to knowledge workers than before and places them at a brand new stronger standing due to lower capital requirements to set a business. Knowledge workers must be managed differently as they tend to be more loyal to their professions rather compared to the organizations and are consequently distinct they work for. One major challenge for human resource managers aside from recruiting and retaining knowledge workers would be to find ways to move them. This paper rejects work-for-hire organizations and instead recommend shared knowledge ownership scenarios which could usually lead to a better result for many stakeholders.
The fast technological advances of the 20th century and the huge changes in the global political landscape have radically changed the environment for every organization today. Even though the shifts from making excellence to service excellence and from national focus to international outlook began after WWII, the adaptation to these changing forces of direction remains an ongoing procedure.
Several coping mechanisms were deployed by supervisors to handle new dangers and dynamics of today's complex organizational environments. A number of these coping mechanisms have failed and as the underlying premises are not any longer valued, some have worked in the past but is not going to continue to work in the future. Diversification, for example, was long touted as a risk management tool that was promising; nevertheless, the recent economic meltdown and failure of dozens of financial institutions worldwide are an indicator that there may have now been too much reliance on diversification in the end. Drucker (2006) suggested that organizations can only be successful when they focus on one task only. The organization's operation capability is destroyed, by diversifying, as mentioned by Drucker. Possible explanations for this outcome that is contradicting are the greater switching costs between concurrent tasks inside the business in addition to the increased administrational overhead of managing several endeavors.
By gathering more information as the organizational environment becomes more complicated, organizations responded. Drucker (2006) criticized, however, that most often companies used advice only to follow the past instead of to base future action on it. The absolute volume of information collected and drawing on the quality decisions from it represents an additional challenge to direction, now. Rather than just reacting to tips, tomorrow's organizations will need to be designed around information and create value and wealth in order to endure (2006). One of the essential information an organization should continuously track is the pair of inherent assumptions around which the organization was built.
Drucker (2006) also claimed that company catastrophes often originate from the truth that organizations were built on premises that no longer hold true. Revise their internal construction when this becomes necessary to accommodate changes in their own environment and companies, consequently, need to constantly reassert that their premises still hold accurate. This kind of intelligent version that Drucker party favors may be interpreted as a form of organizational critical thinking and self awareness.
As a great thinker in the field of direction plus a practicing consultant, Drucker comprehended that the human factor has become more significant than ever before. Drucker's main criticism is that supervisors do not spend enough time communication using their workers and are usually too isolated from their workforce. Why managers have it difficult to develop trustful relationships with their workforce and consequently have problem moving their teams, the failure to listen to employees is. There are several external forces which will impact the human resource management discipline of the near future while these forces which can be internal to organizations will need to be handled appropriately.
Future organizations will be exposed to higher amounts and frequencies of change (Aghazadeh, 2003). Rivalry rooted in globalization and technology will continue to intensify and businesses will increase their emphasis on the creation of intellectual capital. Additionally, as many organizations will seek to improve their profitability through growth and consolidation, the fresh knowledge economy must find new strategies to nurture and protect intellectual capital in the light of the developments (2003). In order to deal with these organizational forces that began to build up in the past two decades, a new form of organization emerged.
Virtual organizations have previously began to affect managerial practice as well as their impact will certainly strengthen for their wide deployment, especially in hybrid type, that's traditional organizations which may have virtual components. One hybrid kind is the partial virtualization of traditional offices referred to as telecommuting or teleworking (Sparrow & Daniels, 1999). Companies recognized at the turn of the millennium that technology can result in several price savings and flexibility even. Telecommuting gives greater job autonomy to workers, and reduces or removes commuting times. Workers can save money by having to spend less on clothes and lunches and gain from less work-related anxiety. Sparrow and Daniels found that individuals varied significantly in their capability to adjust to the home office work environment and that working at home requires different abilities than conventional office work. The impact looks more powerful on entrepreneurs and just virtual organizations, nevertheless, because telecommuters normally spend just part of the majority at the office and also their time at home.
Many of these negative effects will decline due to developments in technology and worker computer skills in the future; however, human resource departments will need to find ways to motivate and train workers to become productive in virtual settings. Setting up virtual organizations can be a great instrument to reap the benefits of globalization.
Another trend changing human resource management is that the U.S. economy has slowly shifted from manufacturing to services. In 1970, 27% of the workers were used in manufacturing, whereas by the turn of the century that percentage fell below 15% (Konrad & Deckop, 2001). At precisely the same time, the female work force participation rate about doubled from 31. Konrad and Deckop farther uncovered that incentive pay systems have gained popularity and that skill shortages will continue to present a danger to U.S. businesses. Additionally, there will probably be an increase in outsourcing even for little and medium sized businesses and the work force will continue to be much more varied (2001). The shift from manufacturing to service in the sector resulted in a shift of managerial focus from managing technology to managing people. What new problems will the supervisors of tomorrow confront and how should human capital be managed?
One new challenge to the organizations of today is the net. As foreseen long time past by Ettorre and McNerney (1995), the web has strengthened worker negotiating power because the web empowers people to become self employed by reducing the costs for entrepreneurs and exposing them to global markets. Because there are various great opportunities to earn money as an entrepreneur online, employers are losing their grasp on employees. To a certain degree and by building particular types of companies on the web, people will not need certainly to work for organizations at all in the long run. Technology has really empowered entrepreneurs to reach customers globally at an incredibly low cost as well as for various types of services and products person entrepreneurs and large multinational corporations are competing directly. The possibility of people competing directly with corporations inflicts an excellent hazard to numerous business sectors; consequently, managers will need to find strategies to safeguard their businesses as well as to attract and keep key employees.
Together with the transition from manufacturing to service, present professional service industries and several new kinds of businesses emerged became stronger players in the industry. As these professional service companies, such as law firms, designers, and software companies, be common as time goes on, human resource management will have to adapt to such knowledge intensive firm environments.
Knowledge intensive firms are characterized by employing people with higher education who deliver knowledge intensive services and products (Teo, Lakhani, & Brown, 2008). Frequently there's a link to scientific knowledge within the part of expertise of the company and also the goods and services have a tendency to be customized and provided by specialists in the firm. One other significant feature of knowledge intensive companies is that they participate in intensive interaction making use of their clients to be able to perform their services (2008). Because all of those other unique features of professional service firms and of the level of interaction needed, human resource management will have to develop place more emphasis on social intelligence of their workforce. Moreover, because knowledge intensive firms have a complicated internal and external construction, human resource departments should use performance management systems which require workers to set goals and align to the environment of the business. Additionally, employees of such firms, the so called knowledge workers, should be recognized and honored for his or her contributions, ideally using continuous feedback (2008).
Knowledge Workers in the Present
The future will bring a lot of new challenges to the management theory and practice. The three major trends affecting the management of knowledge workers will probably be globalization, technology, and also the shifting work force demographics (Ruona, Lynham, & Chermack, 2003). The success of the organizations where they operate in addition to knowledge workers will depend mostly on their learning ability. The competitive advantage of the future is so likely to come from exceptional human resource development. It's going to need to be speedier, more efficient, and across countries and areas. Human resource sections will need to figure out ways to learn and produce results faster. As the pace of company is going to be even faster in the future than it is today, the responsiveness of organizations could be more critical in the future (2003). Organizations, however, can only be responsive when their folks motivated and are comprehended suitably.
As we all know it today has just started the knowledge era. (Despres, & Hiltrop, 1995). In OECD countries more than 60% of the work force is employed by service industries (1995). After WWII, direction theory transcended from bureaucratic and engineering viewpoints to psychosocial and humanistic theories before finally reaching the view of systems. At the same time, the information revolution stimulated the creation of knowledge in the industries.