Human resource management is a dynamic discipline that keeps changing with the change in the external environment. In the fiercely competitive modern business world, employees are considered as a key resource, which provides a sustainable competitive advantage. This has led to an increased demand for high performing individuals. This has also necessitated the need for improved human resource practices that address the issues of employee satisfaction, motivation, commitment and work culture. The HR practices might not have a direct impact on the bottom line of a company, but increased employee productivity and a better work environment as a result of innovative human resource practices, can certainly have a favourable impact on the bottom line.
It has always been suggested that the companies, which have novel HR practices, are more employee oriented and are more effective as well. Innovation means development of innovative ways to motivate employees that improve employee productivity through motivation or improved work culture. It could also mean the use of practices that are new to the company, but they might not be new to the industry. In either case, the aim is to create an organisation that is people centric. The human resource managers now have to train and motivate employees to face stiff competition that has arisen out of globalisation. Newer methods of HR management are also important because the world economy has transformed from being a production based economy to knowledge based economy.
The age old practices cannot work in these changed circumstances and HR managers now need to adorn the role of business development managers while creating new practices for manpower management. It is no longer possible to motivate the employees by only financial rewards because of the intense competition for HR; any company is ready to pay a better salary for a good performer. Therefore, human resource managers have to device innovative human resource practices. Many companies have adopted cashless ways of motivating employees, and have succeeded in their endeavour. There are many innovative ways to motivate employees including recognition of their excellent performance, public praise, training & development, making them shareholders in success and by providing a positive work environment.
One of the companies that have effectively introduced innovative human resource practices in HR is Google. It has an innovative employee suggestion scheme wherein all employees can discuss and rate each other’s suggestions. It also has an innovative concept called prediction markets in which the company uses input from a group of employees to make predictions about future of the organisation. This example proves that, for any company to succeed, it is imperative that they motivate and nurture their employees in innovative ways.