The last 50 years caused a major transformation. The manager's emphasis shifted to service and finally to knowledge management from manufacturing and technology direction. The internet has revolutionized the way business is conducted across borders and cultures and it also made knowledge easily accessible. Entrepreneurs finally have a method to reach markets global at little cost. This puts them at a brand new more powerful position due to lower capital requirements to set a company , and it has given more negotiating power symmetry to knowledge workers than previously. Knowledge workers are hence distinct and should be managed differently as they are generally more faithful for their professions rather than the organizations they work for. One important challenge for human resource managers aside from recruiting and retaining knowledge workers is to locate a way to inspire them. This paper rejects work for hire organizations and instead recommend shared knowledge ownership scenarios which could typically lead to a better result for all stakeholders.


The accelerated technological progress of the 20th century and also the huge changes in the world political landscape have drastically changed the environment for every organization now. The adaptation to these shifting forces of management remains an ongoing procedure, though the shifts from making superiority to service excellence and from national focus to international outlook started after WWII.

Several coping mechanisms were deployed by managers to cope with dynamics and new risks of the complex organizational environments of today. A number of those coping mechanisms have failed and some have been employed in the past but is not going to continue to work later on since the underlying assumptions are no longer valued. Diversification, for instance, was long touted as a risk management tool that was promising; nevertheless, failure of dozens of financial institutions and the recent economic crisis globally are an indication that there may happen to be too much reliance on diversification in the end. Drucker (2006) suggested that organizations are only able to be be successful should they focus on one task only. Diversifying, as mentioned by Drucker, the performance ability of the organization's ruined. Possible explanations for this outcome that is contradicting are the greater switching costs between the increased administrational overhead of managing several endeavors as well as concurrent actions within the corporation.

Organizations responded by gathering more info as the organizational environment becomes more complex. Drucker (2006) criticized, however, that most frequently businesses used info only to follow the past instead of to base future action onto it. The absolute volume of information collected and drawing on the quality judgments from it constitutes an additional challenge to management, today. Rather than merely responding to advice, tomorrow's organizations will have to be designed around information and create value and wealth in order to live (2006). Among the essential information an organization should continuously track is the pair of inherent assumptions around which the organization has been built.

Drucker (2006) also claimed that company crises often originate in the truth that organizations were built on assumptions that no longer hold true. Businesses, hence, need to constantly reassert that their premises still hold accurate and revise their internal structure when this becomes crucial, to accommodate changes in their surroundings. This type of sensible version that Drucker party favors could be interpreted as a form of organizational critical thinking and self awareness.

As a great thinker in the area of direction and a practicing consultant, Drucker comprehended that the human factor has become more important than ever before. Drucker's main criticism is the fact that supervisors are usually overly isolated from their work force and don't spend enough time communicating with their employees. The failure to pay attention to employees is why managers have it hard to develop trustful relationships with their workforce and hence have problem motivating their teams. There are several external forces that'll impact the human resource management discipline of the 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). Competition rooted in technology and globalization will continue to intensify and businesses increases their emphasis on the development of intellectual capital. Moreover, as many organizations will seek to boost their profitability through growth and consolidation, the brand new 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 brand new form of organization emerged. Virtual organizations, powered by technology and low-cost communication, brought some relief to these forces but also several new challenges.

Virtual organizations have previously begun to affect managerial practice as well as their impact will surely strengthen because of their wide deployment, notably in hybrid form, that's conventional organizations which have elements that were virtual. Firms comprehended at the turn of the millennium that technology can lead to several price savings and flexibility even. Telecommuting reduces or eliminates commuting times, and gives greater job autonomy to workers. Workers can save money by having to spend less on clothes and lunches and advantage from less work-related stress. Unfortunately, the virtualization also brought negative side effects, such as a rise in working hours, higher amounts of dwelling-related pressure, along with a change in social relationships between team members (1999). Daniels and Sparrow found that people differed greatly in their ability to adjust to the home office work environment and that working at home requires different abilities than traditional office work. The impact is apparently more powerful on entrepreneurs and just virtual organizations, nevertheless, because telecommuters normally spend only part of the majority in work as well as their time in the home. Virtual work settings were found to advertise routinization, longer hours, increases in work demands, fell role clarity, poorer physical working conditions, livelihood opportunities that were fewer, and less social support from co-workers.

Many of these negative effects will decrease due to advancements in worker and technology computer skills in the future; yet, human resource departments will have to find methods to inspire and train workers to become productive in virtual settings. Setting up virtual organizations could be a fantastic instrument to benefit from globalization. Since challengers is going to be easily setting virtual organizations to capture such opportunities, ignoring or circumventing virtual work environments will not be an alternative in the future as it may be in the second; instead, supervisors will need to reflect on their management styles and communication skills and locate brand new, improved ways to manage work environment that insufficient face to face communication.

Another trend changing human resource management is the U.S. market has gradually shifted from production to services. At precisely the same time, the female workforce participation rate roughly doubled from 31 to 63%. Konrad and Deckop further uncovered that incentive pay schemes have gained popularity and that skill shortages will continue to pose a hazard to U.S. businesses. Also, there will probably be an increase in outsourcing even for small and medium sized enterprises and also the work force will continue to eventually become more varied (2001). The shift from production to service in the sector resulted from managing technology to managing people. What new problems will the managers of tomorrow confront and how should human capital be managed?

One new challenge to the organizations of today is the web. As foreseen long time ago by Ettorre and McNerney (1995), the web has strengthened employee bargaining power since the web empowers individuals to become self employed by reducing the prices for entrepreneurs and exposing them to worldwide markets. Because you can find lots of opportunities to make money as an entrepreneur online companies are losing their grasp on employees. To a certain degree and by building specific kinds of companies on the world wide 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 price and for a lot of types of services and products individual entrepreneurs and large multinational corporations are competing directly. A great risk is imposed by the possibility of individuals competing directly with corporations to a lot of industry sectors; therefore, managers will have to find strategies to safeguard their businesses along with to attract and retain key employees.

Together with the transition from manufacturing to service, several new kinds of companies emerged and existing professional service industries became more powerful players in the marketplace. As these professional service businesses, for example law firms, designers, and software companies, become more common later on, human resource management will need to conform to such knowledge intensive firm surroundings.

Knowledge intensive businesses are defined by employing individuals with higher education who give knowledge intensive services and products (Teo, Lakhani, & Brown, 2008). Often there's a link to scientific knowledge within the part of expertise of the company and services and the goods have a tendency to be customized and produced by specialists in the firm. Another important feature of knowledge intensive firms is they participate in intensive interaction making use of their clients so that you can execute their services (2008). Because the rest of the unique top features of professional service firms and of the degree of interaction required, human resource management will have to come up with place more emphasis on social intelligence of the workforce. Additionally, because knowledge intensive firms possess a complex internal and external structure, human resource departments should use performance management systems which require employees to set targets and align to the firm's environment. Also, employees of such companies, the so called knowledge workers, ought to be recognized and rewarded for their contributions, ideally using constant feedback (2008).

The future will bring plenty of new challenges . The success of the organizations in which they manage 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'll need to be quicker, more efficient, and across places and nations. Human resource sections will have to find approaches to learn and deliver results faster. As the pace of business will be even quicker in the future than it is today, the responsiveness of organizations could be more essential in the future (2003). Organizations, however, can only just be reactive when their people inspired and are comprehended appropriately.

The knowledge era as we know it today has just started. After WWII, management theory transcended from bureaucratic and engineering standpoints to humanistic and psychosocial notions before ultimately reaching the opinion of systems. In precisely the same time, the information revolution sparked the creation of knowledge in the businesses.