01 - the strategic role of
TRANSCRIPT
-
8/3/2019 01 - The Strategic Role Of
1/23
THE STRATEGIC ROLE OF
HUMAN RESOURCES
MANAGEMENT
EXCEL
BOOKS
1-1
1
Chapter
-
8/3/2019 01 - The Strategic Role Of
2/23
ANNOTATED OUTLINE1-2
The Strategic Role Of Human Resources Management
Introduction
Organisations have to provide a healthy work climate in order to get
the best out of people. To utilise the capabilities of people fully, you
need competent leadership willing to recognise, reward and nurture
talent at all levels. This is where human resource managers play acritical role by bridging gaps between employee expectations and
organisational requirements by adopting appropriate human resource
strategies and practices. HRM, in short, is the art of procuring,
developing and maintaining competent workforce to achieve the
goals of an organisation in an effective and efficient manner.
-
8/3/2019 01 - The Strategic Role Of
3/23
Human Resource Management:
Features
1-3
The Strategic Role Of Human Resources Management
Pervasive force
Action oriented
Individually oriented
People oriented
Future oriented
Development oriented
Integrating mechanism
Comprehensive function
Auxiliary service
Inter-disciplinary function
Continuous function
-
8/3/2019 01 - The Strategic Role Of
4/23
Important terms1-4
The Strategic Role Of Human Resources Management
Human resource: Knowledge, skill sets, expertise of employees, the
adaptability, commitment and loyalty of employees.
Skills: The individual abilities of human beings to perform a piece of work.
Resource: The stock of assets and skills that belong to a firm at a point of time.
Capability: The ability of a bundle of resources to perform an activity; a way of
combining assets, people and processes to transform inputs into outputs.
Core competencies: Activities that the firm performs especially well when
compared to its competitors and through which the firm adds value to its goods
and services over a long period of time.
Competitive advantage: It comes from a firm's ability to perform activities more
distinctively and more effectively than rivals. To attain competitive advantage, firmsneed to add value to customers and offer a product or service that cannot be
easily imitated or copied by rivals (Uniqueness).
Value: Sum total of benefits received and costs paid by the customer in a given
situation.
Clearing the Fog
-
8/3/2019 01 - The Strategic Role Of
5/23
Scope ofHRM
1-5
The Strategic Role Of Human Resources Management
Personnel aspect
Welfare aspect
Industrial relations aspect
HRM mainly covers three broad areas
-
8/3/2019 01 - The Strategic Role Of
6/23
Objectives ofHRM
1-6
The Strategic Role Of Human Resources Management
HRM aims at achieving organisational goals, meet the expectationsof employees; develop the knowledge, skills and abilities of
employees; improve the quality of working life and manage human
resources in an ethical and socially responsible manner.
Importance ofHRM
From an organisational standpoint, good HR practices help in
attracting and retaining talent, train people for challenging roles,
develop their skills and competencies, increase productivity and
profits and enhance standard of living
-
8/3/2019 01 - The Strategic Role Of
7/23
Importance ofHRM
1-7
The Strategic Role Of Human Resources Management
attractand retain talent
train people for challenging roles
develop skills and competencies
promote team spirit
develop loyalty and commitment
increase productivity and profits
improve job satisfaction
enhance standard of living
generate employment opportunities
Good HR Practices help
-
8/3/2019 01 - The Strategic Role Of
8/23
HRM as a central subsystem in anorganisation
1-8
The Strategic Role Of Human Resources Management
ProductSubsystem
HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards
MarketingSubsystem
Finance
Subsystem
Technical
Subsystem
-
8/3/2019 01 - The Strategic Role Of
9/23
Functions ofHRM
1-9
The Strategic Role Of Human Resources Management
Planning
Organising
Directing
Controlling
Operative Functions
P/HRM
Managerial
functions:Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internalmobility
Development:
Training
Executivedevelopment
Careerplanning
Succession
planning
Humanresources
developmentstrategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance andpotential
appraisal
Compensation
administration
Incentives
benefits andservices
Maintenance:
Health
Safety
Welfare
Social security
Integration:
GrievancesDiscipline
Teams andteamwork
Collectivebargaining
Participation
Empowerment
Trade unions
Employersassociations
Industrialrelations
Emerging
Issues:
Personnelrecords
Personnelaudit
Personnelresearch
HRaccounting
HRIS
Job stress
Mentoring
InternationalHRM
-
8/3/2019 01 - The Strategic Role Of
10/23
Strategic Human ResourceManagement
1-10
The Strategic Role Of Human Resources Management
Competitive advantage through people?
Competitive advantage allows a firm to gain an edge over its rivals
when competing. It comes from a firms unique ability to perform
activities more distinctively and more effectively than rivals. HR can be
a source of competitive advantage when the talents of people working
in the firm are valuable, rare; difficult to imitate and well organised to
deliver efficient and effective results.
-
8/3/2019 01 - The Strategic Role Of
11/23
The evolving strategic role ofHuman Resource Management
1-11
The Strategic Role Of Human Resources Management
Strategic focus
Operational focus
PeopleSystem
Strategic partner Change agent
Administrative expert Employee champion
-
8/3/2019 01 - The Strategic Role Of
12/23
1-12
The Strategic Role Of Human Resources Management
Realising the growing importance of HR, a new line of thinking
emerged elevating the status of HR to that of a strategic partner both
in the formulation of a firms strategic as well as in the implementation
of business activities. SHRM, simply stated, is the linkage of HRM
with strategic goals and objectives with a view to improve business
performance and develop organisational cultures that foster
innovation and flexibility. Strategic HR differs radically from traditional
HR in a number of ways:
Strategic Human ResourceManagement
-
8/3/2019 01 - The Strategic Role Of
13/23
TraditionalHR vs. Strategic HR
1-13
The Strategic Role Of Human Resources Management
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investments
Accountability
Responsibility for HR
Traditional HR
Employee Relations
Transactional change
follower and respondent
Slow, reactive, fragmented
Short-term
Bureaucratic-roles, policies,
procedures
Tight division of labour;
independence,
specialisationCapital, products
Cost centre
Staff specialists
Strategic HR
Partnerships with internal and
external customers
Transformational change leader
and initiator
Fast, proactive and integrated
Short, medium and long (as
required)
Organic-flexible, whatever is
necessary to succeed
Broad, flexible, cross-training
teams
People, knowledge
Investment centre
Line managers
-
8/3/2019 01 - The Strategic Role Of
14/23
EVOLUTION OF HRM
The field of HRM evolved both in India and elsewhere over anumber of years to present level of sophistication and use ofproactive methods
1-14
The Strategic Role Of Human Resources Management
The industrial revolution
Scientific management
Trade unionism
Human relations movement
Human resources approach
-
8/3/2019 01 - The Strategic Role Of
15/23
Evolution of the Personnel Function
1-15
The Strategic Role Of Human Resources Management
Concept What is it all about?
The Commodity
concept
Labour was regarded as a commodity to be bought and sold.
Wages were based on demand and supply. Government did
very little to protect workers.
The Factor of
Production concept
Labour is like any other factor of production, viz, money,
materials, land, etc. Workers are like machine tools.
The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will
have a positive impact on workers productivity
The Paternalistic
concept/ Paternalism
Management must assume a fatherly and protective attitude
towards employees. Paternalism does not mean merely
providing benefits but it means satisfying various needs of the
employees as parents meet the requirements of the children.
Cont
-
8/3/2019 01 - The Strategic Role Of
16/23
1-16
The Strategic Role Of Human Resources Management
The Humanitarian
concept
To improve productivity, physical, social and psychological
needs of workers must be met. As Mayo and others stated,
money is less a factor in determining output, than group
standards, group incentives and security. The organisation is a
social system that has both economic and social dimensions.
The Human Resource
concept
Employees are the most valuable assets of an organisation.
There should be a conscious effort to realise organisational goals
by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a
company. They should have a feeling that the organisation is
their own. To this end, managers must offer better quality of
working life and offer opportunities to people to exploit their
potential fully. The focus should be on Human Resource
Development.
Evolution of the Personnel Function
-
8/3/2019 01 - The Strategic Role Of
17/23
Growth in India
1-17
The Strategic Role Of Human Resources Management
Legal phase
Welfare phase
Development phase
-
8/3/2019 01 - The Strategic Role Of
18/23
Personnel Function in India;Changing Scenario
1-18
The Strategic Role Of Human Resources Management
Period Emphasis Status Roles
1920 30 Welfare management Clerical Welfare
Paternalistic practices administrator
1990s Incremental productivity Proactive, Developer
onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
1940 60 Expanding the role to cover Administrative Appraiser
Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal adviso
Fire fighting
1970 80 Efficiency, effectiveness Developmental Change agent
dimensions added Integrator
Emphasis on human Trainer
values, aspirations, Educator
-
8/3/2019 01 - The Strategic Role Of
19/23
Shifts in HR management in India
1-19
The Strategic Role Of Human Resources Management
Emerging HR practice
Strategic role
Proactive
Key part of organisational
mission
Service focus
Process-based organisation
Cross-functional eams,
teamwork most important
People as key
investments/assets
Traditional HR practice
Administrative role
Reactive
Separate, isolated fromcompany mission
Production focus
Functional organisation
Individuals encouraged,
singled out for praise,
rewards
People as expenses
-
8/3/2019 01 - The Strategic Role Of
20/23
HRM in the new millennium
1-21
The Strategic Role Of Human Resources Management
Current thinking in HRM strongly supports the view that when
opportunities for growth and enhancement of skills are available in an
organisation, people will be stimulated to give their best, leading to
greater job satisfaction and organisational effectiveness. To this end,
therefore, HR managers in the new millennium are expected to
successfully evolve an appropriate corporate culture, take a strategic
approach to the acquisition, motivation and development of human
resources and introduce programmes that reflect and support the core
values of the organisation and its people.
Size of work force
Demands for better pay, benefits, working conditions
Cont
-
8/3/2019 01 - The Strategic Role Of
21/23
1-21
The Strategic Role Of Human Resources Management
Composition of workforce
Equal pay for equal work
Breaking down of glass ceiling
Constitutional protection to minority groups
Importance to factors such as age, sex, religion, region, caste especially while
dealing with multifarious, heterogeneous, culturally diverse work groups
Employee expectations
Better educated, more knowledgeable, emotionally strong and demanding
workforce
Demand for educated, trained, experienced and knowledgeable workers growing
Understand individual differences and develop appropriate policies to meet their
growing expectations.
Cont
HRM in the new millennium
-
8/3/2019 01 - The Strategic Role Of
22/23
Changes in technology
Modernisation, computerisation, sophistication increasing by the day
Knowledge and skills need to be refined constantly
Training, retraining and mid-career counselling important
Equip employees so as to cope with dramatic challenges brought forward by rapid
advances in science and technology
Life style changes
Environmental challenges
Personnel function in future
Job redesign
Career opportunities
Productivity
Recruitment and selection
Training and development
Rewards
Safety and welfare
1-23
The Strategic Role Of Human Resources Management
Cont
HRM in the new millennium
-
8/3/2019 01 - The Strategic Role Of
23/23
1-23
The Strategic Role Of Human Resources Management
Changes in 21st century affecting HRM
HR as a springboard for success
Talent hunting, developing and retraining
Lean and mean organisations
Labour relationsHealth and benefit programmes
HRM in the new millennium