MODULE 4

HUMAN RESOURCE MANAGEMENT INNOVATION

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT AND INNOVATIONS

Global competition and new technologies require organizations to be innovative. Such

organizational innovations also ask for innovative human resource management (HRM). The
innovative HRM scale is internally consistent and differs from other HRM indicators. It is
explained by external developments, organizational size and stability of the organization.

APPLICATIONS OF HUMAN RESOURCE MANAGEMENT AND INNOVATIONS

Introduction to Human Resource Management and Innovations

1. Recruitment chatbots
2. Employee engagement software
3. Gamification
4. Peer-to-peer recognition
5. Edgier corporate networking
6. Mental health coaching
7. A holistic view of employees
8. Personalization

1. Recruitment chatbots

Recruitment chatbots engage the human conversational abilities during the recruiting process.
Chatbots are helping recruiters focus on other administrative tasks, asking screening
questions, answering FAQs and streamlining the process.

2. Employee engagement software

Software enables leaders to send monthly surveys to their people, addressing a range of
subjects including wellbeing, stress, teamwork, capability and confidence at work. Managers
then analyse the results and specific actions they can take to improve engagement In place of
multiple tools from different vendors, Culture Cloud provides one modular suite where
employee experience apps are integrated in the employee's work stream. The Culture Cloud
uses smart HR AI technology and includes employee surveys, communications, learning,
analytics, global store, and data privacy and security.

3. Gamification

Gamification is creeping into all elements of HR, from the interview process to learning and
development. Companies such as Accenture and Deloitte are already devotees, using tools to
set lifelike workplace challenges in the recruitment stage and beyond. Elsewhere, Google
apparently gives its staff an allowance for each work trip. If the allowance isn't spent, they
Can add the remaining balance to their wage or give it to charity. The company reported
100% compliance within six months using this gamification technique.

4. Peer-to-peer recognition

Innovations in the peer-to-peer recognition arena are allowing employees to praise each
other. With Thanks box, for example, employees can give special thanks, nominate others for
awards and much more. “Reward and recognition tools like this can help employees feel
valued and respected by the rest of their team and drive wider engagement for your
business,”says Taylor.

5. Edgar corporate networking

Times have moved on since corporate networking comprised a round of golf with the
company directors and HR is realizing that it needs to go beyond the expected tropes to make
an impact.

6. Mental health coaching

One big innovation is the introduction of mental health coaching. Instead of waiting for
people to become sick with stress and anxiety issues (the number one cause of unproductive
time, absence and performance issues) some innovative employers are now pioneering ways
of preventing these issues from arising in the first place, with bespoke mental health
coaching. Mental health coaching with Validium involves assessing an employee's 'resilience
batteries' and getting clinical experts to provide impact on their health. A mental health coach
can help them to create specific goals, such as re- an old friendship or making two new local
friends, and assess what's helping or establishing hindering them from achieving this to
prevent costly health is (mental and physical) arising further down the line

7. A holistic view of employees

HR professionals are taking a much more holistic view of employees, says Buy Roberts from
Hunter Roberts Consulting. Every month is different, whether is couch to 5k or 1000 steps at
lunch. They have talks in the office about heart health, they offer stay up to three days your
volunteering or even taking time out to visit relatives Crucially, says Roberts, the company
has stopped rewarding long hours "In fact they actively encourage that to take three weeks off
even if they're busy," she says. In general, Roberta say we're seeing a lot more strategy in
wellbeing, we're seeing more confidential help lines being promoted and we're seeing the
data come through about how it impacts productivity"

8. Personalization

Personalization is an increasing priority in the consumer world and HR professional are

recognizing the benefits to stand satisfaction too
FEATURES OF HUMAN RESOURCE MANAGEMENT INNOVATIONS

The features of human resource management innovations are as follows:

1. It is an art and a science: The art and science of HRM is indeed very complex. HRM is
both the art of managing people by recourse to creative and innovative approaches; it is a
science as well because of the precision and rigorous application of theory that is
required.
2. It is pervasive: Development of HRM covers all levels and all categories of people, and
management and operational staff.
3. It is a continuous process: HRM process includes acquisition (HR planning,
recruitment, selection, placement, socialization), development (training and development,
and career development), utilization (job design, motivation, performance appraisal and
reward management), and maintenance (Labour relations, employee discipline, grievance
handling, welfare, and termination).
4. HRM is a service function: HRM is not a profit centre. It serves all other functional
departments. But the basic responsibility always lies with the line managers. HRM is a
staff function - a facilitator. The HR Manager has line authority only within his own
department but has staff authority as far as other departments are concerned.
5. HRM must be regulation-friendly: The HRM function has to be discharged in a manner
that legal dictates are not violated. Equal opportunity and equal pay for all, inclusion of
communities in employment, inclusion of tribal's and farmers in the benefits and non-
violation of human rights must be taken care of by the HRM.
6. Focus on results: HRM is performance oriented. It has its focus on results, rather than
rules. It encourages people to give their 100%. It tries to secure the best from people by
winning the whole hearted cooperation. It is a process of bringing people and
organization together so that the goals of each are met. It is commitment oriented..
7. People-centred: HRM is about people at work both as individuals and a group. It tries to
help employees to develop their potential fully. It comprises people-related functions like
hiring, training and development, performance appraisal, working environment, etc.
8. Human relations philosophy: HRM is a philosophy and the basic assumption is that
employees are human beings and not a factor of production like land, Labour or capital.
HRM recognizes individuality and individual differences.
9. An integrated concept: HRM in its scope includes Personnel aspect, Welfare aspect and
Industrial relations aspect in itself. It is also integrated as it concern with not only
acquisition, but also development, utilization, and maintenance.

FACTORS AFFECTING THE INNOVATION PROCESS IN ORGANIZATIONS

Factors Affecting the Innovation Process in Organizations

1. Management Commitment to Innovation

2. Strategic orientation
3. Clear responsibilities
4. Innovation culture
 5. Change Management
6. Integration of all employees
7. Collaboration

Various factors that affect the Innovation Process in Organizations are as follows:

1. Management Commitment to Innovation

Management commitment is one of the most important success factors in innovation

management. In the absence of corporate management support, innovation leaders will waste
their time fighting against windmills. The commitment of all managers, from top to bottom,
is the basis of the innovation process. This is because it secures the necessary support for
innovations that are happening outside of the day-to-day business (where a company earns
the money) from all areas. Support, time and budgets are necessary fuels for the success of
innovation, which can only be achieved through commitment to innovation.

2. Strategic orientation

If the strategic orientation of innovation activities is lacking, there is a lack of goal, path and
orientation. This makes it difficult for those in charge of innovation to assess where and what
to look for, which innovation topics have priority and thus difficult to make the right
decisions.

Therefore, the innovation strategy must be defined on the basis of future trends,
opportunities, risks and challenges as well as the corporate strategy:

 What is the purpose of innovation and what do we want to achieve in the future?
 What is the contribution of innovation to corporate strategy?
 What are our future topics and search fields?

Based on these answers, the innovation vision, its strategy and the innovation roadmap
emerge. These elements are the basis of all innovation activities, be it the development of
ideas, the prioritization of innovation projects or decisions in projects.

3. Clear responsibilities

The innovation process is a highly interdisciplinary process and requires the involvement of
many functional areas and employees in order to successfully implement a new product or
service idea. It is therefore necessary to clearly define what is expected of the employees.
Above all, it is also about defining the roles in the innovation process. For example, the tasks
of sales, production, purchasing, etc. in innovation projects are clearly defined with regard to
their contribution to the success of innovation.

In addition, the project roles are defined in individual innovation projects and must be
perceived with commitment. This includes, for example, the role of the project manager, the
project town councilor and the important project team members.
4. Innovation culture

Innovations require completely different structures and cultures in comparison to operative

management and work. Operational business is built on routine and efficiency, while
innovation is always about innovation. This requires different values and attitudes, for
example openness to try out new and new things, willingness to take risks, thinking across
borders, accepting mistakes and much more. Therefore, a company must build up a positive
innovation culture where innovation is welcome and encouraged. Measures to promote a
culture of innovation are implemented various levels:

 Raising employee awareness of innovation, e. g. through communication measures

 Motivation, e. g. incentives for promoting innovation.
 Empowerment of employees for innovation, e. g. training courses on innovation process.
 Active involvement of employees, e. g. through innovation competitions.
 Creation of spaces and structures for innovation, e. g. flat hierarchies, freedom and
resources

5. Change Management

The introduction of innovation management requires a change and also the implementation of
innovations themselves necessitate changes. These changes can only become effective if they
are supported by all employees themselves and if the workforce itself actively changes.
Therefore, change management itself is an extremely important tool and belongs to the
repertoire of every innovation manager. Innovations put a company into continuous change
and therefore it requires a conscious and constant management of these changes in order to
take all employees on the journey.

6. Integration of all employees

Innovation is not something that only a limited, elitist circle of employees does or is even
boosted by the innovation manager. Innovation must be actively initiated and supported by all
employees. That is why the innovation manager must involve all employees in a targeted
manner. On the one hand, this includes awareness-raising measures to inspire and motivate
all employees for innovation, but also structural measures for active involvement, such as
pitching contests, innovation competitions or classic idea management. Innovation must
become a permanent initiative that is supported and actively shaped by all employees.

7. Collaboration

Cooperation is an essential success factor in innovation processes and projects. Innovations

always happen in interdisciplinary teams and require the cooperation of many employees. It
is important, however, that everyone pulls together and pursues a common goal. Otherwise,
different demands lead to silos, lack of cooperation and support or problems at the interfaces,
which in the seriously slow down an innovation project or even cause it to fail.
CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT INNOVATIONS

Characteristics of innovations can be summarized as follows:

(1) Relative advantages: Potential audience needs to see how your innovation improves
from previous generation products according to their current situation. Improvements can
be made in one or many of these areas alliance of multiple functions into one tool, better
service, decreased need for equipment and supplies, improved interface, and increased
customizability.
(2) Compatibility: Compatibility refers to the harmony of relationship that an innovation has
with potential individuals as they absorb mentally it into their lives.
(3) Trial ability: Every adopter wants to see for themselves what and how life might be they
adopt the product. Every designers need to make product available to potential adopters
for trials.
(4) Observability: Observability is the benefits or results of using an innovation visible to
potential adopters. Observability stretches beyond having earlier users use an innovation
in view of later users; potential adopters must clearly figure out the benefits of adopting
an innovation and using it.

CONDITIONS NECESSARY FOR SUCCESSFUL HRMI IMPLEMENTATION

(1) Recruitment Innovation

(2) On boarding
(3) Learning and development (L&D)
(4) Talent management
(5) Performance management

The conditions necessary for successful HRMI implementation are given bellow:

(1) Recruitment Innovation: Good recruitment is essential to the success of every

Organisation. Perhaps this is why we see a lot of innovative technologies in this part of
HR. When it comes to HR innovation, job ads are probably not the first thing that comes
to mind
(2) On boarding: On boarding is something that's all too often being overlooked. Worse
even, the lack of a good on boarding process is one of the top reasons new hires leave
prematurely.
(3) Learning and development (L&D): HR innovation is that of employee Learning &
development. L&D program is customized to the preferences each individual employee.
This means that employees can access the L&D content on any kind of device and learn
about things that are in line with their personal career goals.
(4) Talent management: When we talk about talent management and HR innovation, one
of the first things that come to mind is the talent management dashboard (TMD). A
Talent management dashboard gives recruiters and hiring managers a comprehensive
overview their talent pool. This enables them to communicate with and nurture their
talent in order to plan for the future.
(5) Performance management: Although there is a lot of innovation going on in
performance. Management-land, today we focus on the feedback part. We ve come a
long way from awkward, yearly appraisal chat.

CURRENT TRENDS IN HUMAN RESOURCE MANAGEMENT INNOVATIONS

The current trends in human resource management innovations are as follows:

1. Promote Diversity and Inclusion: Company culture plays a pivotal role to provide a
positive experience to its employees. With employees belonging to diverse races, ages,
genders, sexual orientations, and cultures, industries ought to make their employees feel
that they belong to a community.
2. The Trend of Work from Home (WFH): The Corona virus pandemic has altered the
paradigms of business domains worldwide. This global overnight shift to remote work
puts a high value on flexible work arrangements. Four out of five HR managers believe
the move to working remotely has caused less employee absenteeism, with employees
available online when needed.
3. Cultivate Critical Thinking, Soft Skills, and Digital Skills: Gone are the days when
education and job skills were the only criteria for the recruitment of employees. The 21 st
Century calls for HR personnel to look for a combination of power skills in the
workforce. Search for applicants with digital skills like data analytics and digital literacy.
4. Employee Wellness Programs: With the fast-paced work culture and competitive race,
stress levels of employees have been on the rise. To keep their mental health intact, HR
practitioners should advance workplace wellness programs to strengthen employee's
wellbeing to have work-life balance
5. Artificial Intelligence (AI) and Machine Learning: Al-based algorithms such as
applicant tracking software, combined with an increase in cloud computing, can assist HR
professionals in the recruitment of candidates and streamline workflow.

INNOVATIVE HUMAN RESOURCE MANAGEMENT PRACTICES IN INDIA

Innovative Human Resource Management Practices in India

1. Focus on continuous learning and reskilling

2. Gartner HR trends
3. HR trend up skilling
4. Global Human Capital
5. People analytics takes the stage
6. Employer brand matters

The innovative human resource management practices in India can be summarized as

follows:

1. Focus on continuous learning and reskilling: One of the most important HR trends and
practices for companies in the near future will be the up skilling and reskilling of the
workforce. Gartner report says that building critical skills and competencies is among the
top priorities for HR departments in 2021.
2. Gartner HR trends: On top of that, it turned out that COVID-19 has made reskilling
even more urgent. As time passes employees require more skills for every job and most of
these skills are new. To be more specific, the total number of skills necessary for a job is
growing by 10% annually.
3. HR trend up skilling: It's true, we no longer can be satisfied with a university degree and
the knowledge we acquired there. The career has now turned into a journey of continuous
learning and the HR department should be ready to cover such important trends in human
resource management.
4. Global Human Capital: Global Human Capital Trends Indeed, collaborative platforms
(like Microsoft Teams, Slack, Workplace by Facebook, and many others) are probably
the most obvious advantage of technology's impact on bridging the communication gaps.
5. People analytics takes the stage: In general , people analytics is the comprehensive use
of various data and metrics to make better decisions that affect people at work. It focuses
on using data to analyze every part of how people impact business operations.
6. Employer brand matters: Employer branding that was considered among classic human
capital trends during past years, is now a more urgent topic. The reason is simple:
economic recovery after the COVID-19 pandemic has already put companies in
competition for the top talent.

HUMAN RESOURCE MANAGEMENT INNOVATIONS TOWARDS

SUSTAINABLE DEVELOPMENT

Sustainability focuses on meeting the needs of the present without compromising the ability
of future generations to meet their needs. The concept of sustainability is composed of three
pillars: economic, environmental, and social also known informally as profits, planet, and
people. Increasingly, companies are making public commitments to sustainability through
actions like reducing waste, investing in renewable energy, and supporting organizations that
work toward a more sustainable future.

Sustainable and innovative Human Resource Management (HRM) involves implementing

practices and strategies that not only support the organization's immediate needs but also
contribute to long-term success while considering environmental and social impacts. Here are
some key elements:

1. Green HRM: Adopt environmentally friendly HR practices, such as reducing paper

usage, promoting telecommuting, and encouraging sustainability initiatives among
employees.
2. Talent Management: Identify and nurture talent within the organization, focusing on
skills development and career progression. Encourage continuous learning and
adaptability.
3. Diversity and Inclusion: Promote diversity and inclusion within the workforce to
harness a broader range of perspectives and ideas. This can lead to more innovative
solutions and better sustainability practices.
4. Employee Well-being: Prioritize employee well-being by offering wellness programs,
mental health support, and work-life balance initiatives. Healthy and happy employees
are more likely to be productive and engaged.
5. Flexible Work Arrangements: Implement flexible work arrangements, including remote
work options, to reduce commuting and minimize the organization's carbon footprint.
6. Technology Adoption: Embrace HR technology and analytics to streamline processes,
improve decision-making, and enhance employee experiences.
7. Corporate Social Responsibility (CSR): Align HR practices with the organization's
CSR goals, ensuring that the workforce actively participates in sustainability efforts.
8. Innovation Culture: Foster a culture of innovation by encouraging employees to propose
and implement sustainable solutions within their roles.
9. Metrics and Reporting: Develop key performance indicators (KPIs) to measure the
impact of sustainable HRM practices and regularly report on progress.
10. Continuous Improvement: Continuously assess and adapt HR practices to stay aligned
with emerging sustainability trends and workforce needs.

INNOVATIVE HRM PRACTICES IN INDIA

In India, innovative HRM practices have gained importance due to the dynamic business
environment and the need to attract, retain, and develop a skilled workforce. Here are some
innovative HRM practices specific to India:

1. Skill Development Initiatives: With a focus on upskilling and reskilling, many Indian
companies are partnering with online learning platforms and universities to offer
employees opportunities for continuous learning and development.
2. Flexible Work Arrangements: Indian companies are increasingly adopting flexible
work arrangements, including remote work and flexible hours, to improve work-life
balance and attract a wider talent pool.
3. Employee Assistance Programs (EAPs): EAPs provide counselling and support for
employees' mental health and well-being, addressing the growing need for psychological
support in the workplace.
4. Diversity and Inclusion: Companies in India are placing a strong emphasis on diversity
and inclusion, with innovative programs to ensure equal opportunities for employees from
various backgrounds.
5. Start-up-Like Culture: Some established organizations are adopting a start-up-like
culture, encouraging intrapreneurship and creative thinking among employees. This
includes relaxed dress codes, open workspaces, and collaborative environments.
6. Employee Engagement Platforms: HRM in India is embracing digital tools and
platforms to improve employee engagement. These platforms facilitate two-way
communication, recognition programs, and feedback mechanisms.
7. Gamification: Some companies are using gamification techniques in training and
development programs to make learning more engaging and interactive.
8. Wellness Initiatives: Beyond standard health insurance, companies are introducing
wellness programs that focus on physical fitness, stress management, and nutrition.
9. Reverse Mentoring: Younger employees are mentoring senior executives in areas like
technology and digital trends, fostering knowledge exchange and innovation.
10. HR Analytics: Indian companies are increasingly using HR analytics to make data-
driven decisions, from talent acquisition to employee retention strategies.
11. CSR Integration: HRM practices in India often involve integrating Corporate Social
Responsibility (CSR) efforts into HR strategies, demonstrating a commitment to social
and environmental causes.
12. Recruitment Technology: Leveraging AI and machine learning for talent acquisition,
automating resume screening, and using chatbots for initial candidate interactions.

These innovative HRM practices in India align with global trends but are often adapted to
meet the unique challenges and opportunities within the Indian context, such as a diverse
workforce, rapid technological change.

HRM INNOVATIONS TOWARD SUSTAINABLE

Human Resource Management (HRM) plays a critical role in driving innovations

towards sustainable development within organizations. Here are some key ways HRM
can contribute:

a) Talent Management: HR can identify, recruit, and retain talent with skills and values
aligned with sustainability goals. This involves creating job roles focused on
sustainability, offering training, and providing opportunities for career advancement in
this field.
b) Employee Engagement: Engaged employees are more likely to support sustainability
initiatives. HR can foster a culture of sustainability by promoting awareness, involving
employees in decision-making, and recognizing and rewarding sustainable behaviors.
c) Diversity and Inclusion: HR can promote diversity and inclusion within the workforce.
A diverse team brings a variety of perspectives and ideas, which can lead to more
innovative and sustainable solutions.
d) Training and Development: HR should provide ongoing training and development
programs related to sustainability. This includes educating employees about sustainable
practices, technologies, and industry trends.
e) Performance Management: Align performance metrics with sustainability objectives.
HR can incorporate sustainability goals into employee performance evaluations, ensuring
that employees are held accountable for contributing to sustainability targets.
f) Wellness Programs: Promoting employee well-being through wellness programs can
indirectly support sustainability. Healthy, happy employees are more likely to be engaged
and motivated to contribute to sustainability efforts.
g) Change Management: HR can assist in managing organizational change towards
sustainability, helping employees adapt to new processes, technologies, and ways of
working.
h) Ethical Leadership: HR should promote ethical leadership that sets an example for
sustainability. Leaders who prioritize sustainability in their decision-making inspire
others to do the same.
i) Stakeholder Engagement: HR can facilitate communication and collaboration with
external stakeholders, such as suppliers and community organizations, to enhance
sustainability efforts.
j) Metrics and Reporting: Develop metrics to track and report on sustainability initiatives'
progress. HR can work with other departments to ensure data collection and reporting are
consistent with sustainability goals.
k) Innovation Initiatives: HR can support innovation by encouraging employees to suggest
and implement sustainable ideas, providing resources for research and development, and
fostering a culture of continuous improvement.
l) Compliance and Regulations: Stay updated on sustainability regulations and ensure the
organization complies with them. HR can provide guidance on legal requirements related
to sustainability.

HUMAN RESOURCE MANAGEMENT PRACTICES CONTRIBUTE TO

ORGANISATIONAL INNOVATION

Organizational innovation has been widely defined as the creation of new idea and new
behaviour to the organization. The human resource management practices contribute to
organizational innovation can be summarized as follows:

A. Human Resource Training for Organizational Innovation: HRM practices have been
defined in several aspects. Schuler and Jackson defined HRM practices as a system that
attracts, develops, motivates, and retains employees to ensure the effective
implementation and the survival of the organization and its members. HRM practices are
also conceptualized as a set of internally consistent policies and practices designed and
implemented to ensure that a firm's human capital contribute to the achievement of its
business objective. HRM practices a set of practices used by organization to manage
human resources through facilitating the development of competencies that are firm
specific, produce complex social relation and generate organization knowledge to sustain
competitive advantage.
B. Developing Management Effectiveness: The learning process occurred to improve the
stock of knowledge available to the organization and to amplify the value of its
intellectual assets, such as innovation capital when knowledge is acquired and applied. If
an organization demonstrates competence in knowledge management, it can be
considered as having a knowledge management-orientation. Knowledge management has
been broadly defined from
C. Human Resource and Innovation: HRM practices play an influential role in motivating
employees to exhibit favourable attitudes and behaviours, which are required to support
and implement the competitive strategy of an organization. When firms develop and
introduce new product, new process and/or new administrative practices, they require
innovative and creative employees, who are flexible, risk taking, and tolerant of
uncertainty and ambiguity. Reward system encourages employee to become motivated,
thereby increase their participation in contributing innovation ideas, which leading to high
organizational innovation. many perspectives.
IMPORTANT QUESTIONS

1. Define the term Innovation.3m

2. What is Human Resource Management and Innovation? 3m
3. What are the Innovative Human Resource Management Practices in India? 3m
4. Give the meaning of Organizational Innovation.3m
5. What is sustainable Innovation?3m
6. Discuss the concept of Human Resource Management and Innovations.7m
7. Explain various factors affecting the Innovation Process in Organizations.7m
8. Discuss the characteristics of Human Resource Management Innovations.7m
9. Explain the conditions necessary for Successful HRM Implementation.7m
10. Discuss about the current trends in Human Resource Management Innovations.10m
11. Explain about Innovative Human Resource Management Practices in India.10m
12. How Human Resource Management Practices Contribute to Organizational Innovation?
10m
13. How to Make Human Resource Management Innovations Sustainable? Explain.7m