Financial Intelligence in Human Resources Management

New Directions and Applications for Industry 4.0

Gurinder Singh, Hardeep Singh Dhanny, Vikas Garg, Silky Sharma, Gurinder Singh, Hardeep Singh Dhanny, Vikas Garg, Silky Sharma

• Publisher: Apple Academic Press
• Year: 2021
• ISBN:
  9781000168921
• Edition: 1
• Topic: Business
• Subtopic: Finance
• Index: Business

This new volume familiarizes readers with the very relevant concepts of human resources and finance in Industry 4.0. The book looks at the adoption of current fast-moving computers and automation in the workplace and its impact on the financial aspects of human resources and how HR can be enhanced with smart and autonomous systems fueled by data and machine learning.

The chapters offer case studies that provide firsthand knowledge of real-life problems, solutions, and situations faced by the industry. The volume highlights the thought process in resolution of the complex problems. Topics include HR management approaches, global HR challenges, behavioral finance for financial acumen, corporate social responsibility, women empowerment in the HR industry, emotional intelligence in the era of Industry 4.0, and more.

CHAPTER 1
HR Acumen in Industry 4.0: Managing Talent and Achieving Balance in Life

GURINDER SINGH,^1* H. S. DHANNY,² VIKAS GARG,³ and SILKY SHARMA⁴

¹Amity University, Noida, Uttar Pradesh 201308, India

^2,3,4Amity University, Noida, Uttar Pradesh 201308, India

*Corresponding author: E-mail: [email protected]

ABSTRACT

As per current trends and developments in the industry, it is considered that fourth industrial revolution has already begun, leading to the emergence of Industry 4.0. Emerging technologies such as Internet-of-Things, big data, and artificial intelligence are leading to automate most of the HR processes, resulting in efficient and leaner HR teams. Also, the digital technologies will drive the next wave of disruptive transformation in finance. The role, size, and shape of HR and finance function will change to a smaller, more efficient, and costless function, but with a higher proportion of highly skilled people. The challenges will be posed in front of HR in terms of managing talent and balance in life of their employees while sustaining financial outcome and impactful performance for the business. The acumen of HR will be assessed critically in managing complexities of identifying, developing, and managing talent side by side ensuring a high performance culture and balance in life of its workforce. Managing human, machine, and finance by HR experts in order to become revenue-oriented function for the organization would be a daunting challenge for them in the organization. Together, smart HR and financial acumen will act as a catalyst in the disruption process in the entire business world globally.

1.1 INTRODUCTION

A challenge is dependably equalized by chance. The present far reaching market instability, combined with cutbacks, ability deficiencies, and quick moves in innovation, focuses to increased difficulties for human resource professionals. Whereas fittingly utilizing human resource function has been key points of dialog for as long as decade, establishments still brawl with a way to build this vital move as a responsible unit.

What will assist human resource managers most IN administering the human aspects of business and occupations? Throughout the following decade, the HR professionals will confront a wide scope of people issues that can be merged into a rundown of chief obstacles. While the obstacles talked about here probably will not be comprehensive, tending to these prevalent issues gives driving force to transform difficulties into new prospects. At the very beginning, a standout among the most imperative difficulties for an establishment is to position itself as a preferred company by the people. It includes having a favorable working culture where individuals wish to report happily at workplace and contribute till the time they are available and prefer to stay with the organization by their remarkable contributions. The indicators of HR's performance and achievements are reflected in transcending its difficulties are proven by return on investment in the form of monetary outcomes, but also in terms of practicing the benchmark practices, overall organizational efficiency and effectiveness. It is certain that technology and innovations assume an essential job IN combating any HR challenge by encouraging arrangements that result in sure shot success.

Most of the profound organizations search and implement for the most ideal approaches to execute HR-related tasks. Considering HR in isolation limits the wide scope and capacity for HR function that may lead to saturation. The manner, in which, budget and finances are connected and concerned with each and every aspect of a business—typically as a financial plan—similarly, human capital substantially influences the companies in their totality. Hence, companies that aim to become "Great place to work" concentrate on people processes that have an effect at enterprise level. People processes and systems should be established in such a way that it should be helping employees in achieving a balanced and stress-free life so as to become a great place to work in true sense.

Because of changing requirements in Industry 4.0, a number of factors are putting pressure on employees from multiple sides creating a strong need for a support system from their organization that can help them in achieving a balanced life. A 6F model of balance in life has its special significance and applicability in reference to Industry 4.0. Industry 4.0 will present ambiguous and complex situations to all the stakeholders associated; be it managers or employees.

In Industry 4.0, utilization of machines and knowledgeable human resources will play a vital role in manufacturing and service sector. Since multiple devices will be interacting simultaneously through web, a number of unique issues will occur for the first time. Hence, it will be a great need for all humans involved in Industry 4.0 to handle these complex situations appropriately to ensure that there is no negative impact on these six factors which maintain balance in their life. The aim of "6F Model of Balance in Life'" is the Mantra for everyone to achieve stability and balance in their professional and personal life in Industry 4.0.

A balanced life in Industry 4.0 can be achieved by taking care of a number of important factors necessary for a good to great life. To live a quality balanced life, six key areas (6Fs) have been identified, which are as follows (Figure 1.1):

1. Finance (The Rock Bed of Stability in Life).
2. Family (The Immediate Environment That Nurtures Your Growth).
3. Friends (The Support System That Will Stand by You).
4. Figureheads (The Leading Lights in Your Life).
5. Fitness (The Body Mind and Soul Connection).
6. Fun (The Destressing and Rejuvenating Element).

FIGURE 1.1 6F Model of balance in life.

Source:https://drive.google.com/open?id=1JCtn01AyD5xPZcfkE6Isu5gwXwt5dMJL

These 6Fs need to be practiced as an essential part of one's life in balanced proportion by individuals to have a good personal and professional life. These are represented in a circular wheel as shown above encircled by a binding thread of three more Fs (focus, faith, and fullness). All these 6Fs are interconnected, interrelated, and interdependent. Any variation in one factor will have an impact on other factors playing role more prominently.

1.1.1 FINANCE (THE ROCK BED OF STABILITY IN LIFE)

Financial strength means a sustained source of income to meet short-term expenses while taking care of long-term savings. Financial strength helps you to focus on higher order needs, keep you away from daily worries, makes you feel secure and confident, and keeps focused toward their career goals and aspirations. Financial robustness helps people to have freedom in making their career of choice. Financial independence especially empowers women candidates to reach to their full potential both in professional and personal life.

Financially stable people are more confident to take bigger risks in life and accept challenges where more growth opportunities may lie and further good prospects to compound their financial wealth. People who are assured of their financial wellness demonstrate higher levels of confidence, high self-esteem leading to higher levels of emotional wellness. They are not trapped in the web of over thinking.

1.1.2 FAMILY (THE IMMEDIATE ENVIRONMENT THAT NURTURES YOUR GROWTH)

Family is the first place for us to develop a strong foundation in the form of value system in our early years. We make strongest bond with our family members and it is this strong bond that holds us in all good and bad times. Our family members act as an immediate support system for growth and nourishment in our life and give us a sense of security.

All reputed industrial houses try to create the spirit of family in their organizational culture. Such organizations build an open culture providing their employees with listening mechanisms, recognition, appreciation acknowledgement, and reward for the good work done. Companies with strong value system care for their employees even in bad times like business downturns and recession. In such organizations, employees work with a sense of belongingness toward their organization. Thus, this association makes them feel with sense of security, stability, and experience balance in their life.

1.1.3 FRIENDS (THE SUPPORT SYSTEM THAT WILL STAND BY YOU)

After the family, good friends provide the best support system to each other, thus giving confidence and belief to perform well even in adverse circumstances. True friends take out their time and pay attention to our problems. In the company of best friends, we feel free to share our innermost thoughts about dreams, desires, and aspirations. With them, we experience joy and freedom.

At work places as well, colleagues cum good friends may help you in maintaining good work-life balance. Happy colleagues make work interesting by adding fun element in routine and mundane tasks. Team formed of people with similar mind-set or intellectual abilities performs better in the organization. As the saying goes, "You are the average of five people around you with whom you interact the most." Hence, the importance of friends is even more than it appears to be.

1.1.4 FIGUREHEADS (THE LEADING LIGHTS IN YOUR LIFE)

Figureheads are the key people who have the potential to guide you and provide wisdom for you to lead a better personal and professional life. They are the mentors with unmatchable knowledge, experience, and power that can help you in developing right professional skills. They help in developing a better sense of how to navigate challenges and successes in workplace.

They provide the feedback in a constructive manner and radiate goodness. They instill "CAN DO" attitude in the minds of their mentee. They can sow the seeds of strong potent ideas in one's mind and can convert rough uncut piece of carbon into die bright sparkling diamond. They virtually light up the path one should tread to reach the best destination without deviations. Thus, they can act as leading lights in our life and assist you in discovering new opportunities. HR initiatives for executive development and succession planning: The concepts of coaching or mentoring help employees in choosing their role model for faster learning and growth.

1.1.5 FITNESS (THE BODY MIND AND SOUL CONNECTION)

In today's stressful environment, "Fitness" has become one of the most sought after goals of people. Intellectual people know the benefits of having total fitness, a state of physical, mental, emotional, and spiritual well-being. All the people in our social circle like family members, friends, figureheads, colleagues, neighbors, and other people have a huge impact on our social and emotional well-being. When we ignore ourselves and our needs, our wellness gets affected. Thus, a deliberate focused effort in social interactions may lead to positive outcomes.

The fitness has to be seen in totality and we have to ensure that we create conditions for our physical, mental, emotional, and Spiritual fitness. Each of these dimensions will require certain activities. Taking care of one dimension, say physical fitness, also helps achieving fitness in other dimensions like mental and emotional as well. Practicing meditation keeps our mind cool, calm, and peaceful to analyze the situations well. And, spirituality directs and motivates us to look for bigger purpose and meaning in our life. The fitness, thus, remains one of the very important factors to get the best out of your life.

1.1.6 FUN (THE DESTRESSING AND REJUVENATING ELEMENT)

Often ignored, fun is the most important element in our life to have balance. This is because of a number of benefits it offers in personal and professional life. Doing activities of our interest keeps stress away from our life as it leads to generation of positive hormones in our body. People who share their feelings and laugh more generally experience less negative emotions or mood swings. Hence, it is very important to take out time for fun and play by identifying the activity that you like and enjoy the most. It is advised to keep some minutes on daily basis to practice the same. Fun acts as fuel for our body, mind, and soul balance.

In corporate world, Fun @ Work has its own importance. Companies have started realizing the importance of fun at work. HR department keeps on organizing team building exercises to promote healthy mindsets of their employees. The strong bonds developed with colleagues" lead to happy culture at workplaces that further helps organizations to achieve higher productivity. Also, it helps to attract new people and retain their existing talent in the organization.

1.2 THE BINDING THREAD OF FOCUS, FAITH, AND FULLNESS

1.2.1 FOCUS (CHALLENGING YOUR ENERGY)

Focus on all the 6Fs is essential for desired balance in our life. However, due to demanding work schedules and a number of distractions available in the environment, we are unable to prioritize and may lose focus easily. Without focus in life, ability to think suffers a great deal. Working without focus and concentration generally leads to inefficiency and ineffectiveness. Hence, a focused approach is essential for quality output.

It is very important from time to time to develop focus and concentration through meditation, yoga, or exercise. Prepare "To do list" so as t...