It is often said that “people” make an organization what it is. It is for this reason that we have seen increased focus on human resource management, with organizations working hard to be more people-centric. Over the years Human Resource Management has emerged as one of the most challenging aspect of governance for organizations. The change in the social, cultural and economic scenarios, emergence of the global organizations and new service models have resulted in several changes in the nature of the workforce, raising new challenges in human resource management.
It was in the early 1960’s that Peter Drucker introduced the terms ‘knowledge work’ and ‘knowledge worker’ (Drucker, 1993). What was considered as radical in the 1960s has
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Another change witnessed in the last two decades has been the virtualization of organizations. The global nature of operations aided by developments in information and communications technologies, have resulted in new business models which are more collaborative and open; and often may be more geographically wide spread and virtual. According to Jeyavelu (2003) virtualness of organizations has resulted in the several important changes in business models: works places have become more collaborative and virtual and global business environment have has become borderless requiring a global workforce. Moreover, empowerment and awareness has resulted in a workforce that is extremely technology savvy, realizes the importance of knowledge and works to live, not lives to work!! (Accenture Report, 2013) The resulting scenario raises fresh challenges for the organizations. Management and development of virtual alliances require the development of interpersonal and team skills. This also entails developing an organizational culture of collaborative knowledge sharing and knowledge creation. The role of human resource management and organizational development has undergone tremendous changes in line with this new organizational form. According to the study by Cornell University ILR School