HRM AN INTRODUCTION

• 4/27/20
• rAMAN

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What is a Human Resource?
• -- Two dimensions
• -- One as an expendable commodity that must be optimised and
either retained or done away with
• -- As a valuable asset in terms of skills, knowledge and tacit
knowledge that must be deployed effectively to deliver results aligned
with the overall corporate strategy
• --- From point number 2 we understand that HRM is a careful
understanding of collection of people and their characteristics at work
and the idiosyncratic value they bring to the organisation.

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Human beings versus machines A comparison
• Emotions
• Egos, Personality types
• Conflict and Politics
• Group Dynamics
• Interpersonal Relationship Management
• Motivation and Behavioural understanding—-> Two mother disciplines of
management--- Sociology and Psychology
• Gradual monetisation-primary objective-higher performance output than its
input-subtle means and performance appraisal.

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What can effective management of people
do?
• Operational flexibility is possible with HR
• Brings value to other assets
• Strategic focus when people processes and organisational structures
are synchronised and aligned effectively.

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So what Is implied by Human Resource
Management?
• The discipline of Human Resource
Management is concerned with
conceptualisation, design and
implementation of policies and practices
that ensure the optimal and best
deployment of human resources for fulfilling
organisational and individual goals.

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HRM FUNCTIONS SUMMARISED
• Managerial
• Planning-Organising-Staffing-Directing-Controlling

• Operative—Procurement-Development-Compensation-Maintenance and
Motivation-Integration-Industrial Relations
• Within Procurement-Job Analysis-Job Design-Recruitment-Selection,
T&D,
• Placement, Orientation and Socialisation
• Compensation, Maintenance of Human Resources, Analytics,
Empowerment, Motivation, Social Security
• Integration-Discipline, GR and CB.

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What does it take to be a good HR
• A student of Human Behaviour with ideally some background in the
Sociology and Psychology of work
• Domain Knowledge
• Intelligence
• Awareness of Personal Development and Motivational techniques
• Intelligence, Communication Skills
• Objectivity and Fairness
• Emotional Intelligence
• Leadership and Empathy.

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What does an effective HR manager’s
tasks ?
Best practice ideas suggest that HR specialists typically
perform these functions:
• Develop and implement HR policy
• Advise line managers on the interpretation of policy and the
legal framework
• Develop effective job structures
• Promote and nurture employee capability
• Envisage the future (planning)
• Enhance employee motivation
• Regularly Demonstrate HR contribution to business
effectiveness
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What then is the strategic zing to HRM
• StrategicHRM is a process of
aligning HR strategies with
business strategies to accomplish
employees competency and
commitment

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Leveraging value
• Creation
of competitive
advantage through human
resources by creating a
suitable HR system that
delivers VALUE IN Business.

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Some frameworks that emphasise certain
attributes that impact HR
• Universalist BEST Practice templates-If it can work
in Japan why not India?
• The ‘Culturalist perspective'-Hofstede—->Power
Distance-Uncertainty Avoidance(ambiguous
situations and their avoidance), Individualism and
Collectivism, Masculinity Trait or Feminity Trait
• Institutionalist Perspective – Governance
mechanisms, Regimes of accumulation, legal
framework, education, political social factors that
kick in

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One view of HR is the Strategic Labour
Allocation perspective
• Cost to the company
• Interdependencies among HR Strategies,
Business Strategies and Organisational
Changes
• Continuous process of balancing the
demand and supply of labour and its cost.

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•THE
REALMS IN
WHICH HRM
OPERATES

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 LEVELS OF STRATEGIC INTERVENTION
• TOPMOST STRATEGY MAKING IT FOCUSSES ON VALUE CREATING
FOR AN ORGANISATION

• GROWTH STRATEGY-FOCUS ON THE DEVELOPMENT AND

ACCOMPLISHMENT OF GROWTH OBJECTIVES
• PORTFOLIO STRATEGY-FOCUSSES ON DETERMINATION OF
PORTFOLIO OF BUSINESS UNITS OF THE ORGANISATION
• PARENTING STRATEGY-ALLOCATIVE EFFICIENCY AND CONTINUALLY
EVALUATING AND ASSESSING THE EFFECTIVENESS OF RESOURCES
AND DEVELOPMENT OF ORGANISATIONAL CAPABILITIES ACROSS
THE BUSINESS UNITS.

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Business Level Strategy
• Creating Sustaining-competitive
advantage through price or cost
leadership and product differentiation.
products through one or more of
distinguishing factors like price/cost
leadership and product differentiation.

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FUNCTIONAL LEVEL STRATEGY
SPECIFIC STRATEGIES MADE FOR THE
FUNCTIONAL ACTIVITIES OF THE
ORGANISATION
IT MAY ENCOMPASS THE SUB-DOMAINS OF
PRODUCTION, MARKETING, PURCHASE,
FINANCE HR RESEARCH AND OTHER SIMILAR
ACTIVITIES OF THE FIRM

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How does HR aim to become strategic?
• Creating an environment that facilitates the continuous
exchange of information between superiors and
subordinates-High Involvement Management—High
Involvement
• Creating Voluntary commitment from employees by adopting
mutually beneficial HR practices-High Commitment
• Improving Performance of individuals and the organisations
constantly and motivating and educating them for peak
performance by continuously educating the employees and
improving their skills.

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What does strategic HR Deliver or indeed
HR? Recall Class discussion
• Cost effectiveness
• Working towards-Changing needs and expectations of
customers effectively by working on internal processes,
people and structures. Recall examples given in class
• Clear cut focus goal direction both immediate and long
term
• Focus on the process and doing the right thing rather than
being driven by results
• Planning and execution of organisational changes in a
timely and effective manner.

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Steps in Strategic Management Process
 Determination of Vision and Mission
 Analysing the Environment
 Strategy Formulation
 Strategy Implementation
 Performance Evaluation
 Feedback of the above measures.

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What are the practical steps undertaken to make
HRM Strategic? Source Pravin Durai HRM Text Book

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Summary-Models of Strategic Human Resource
Management

Models Of
SHRM

Business-oriented Strategic fit Strategic labour

model model allocation model

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 BUSINESS ORIENTED MODEL OF SHRM

Focuses on the factors contributing to the

competitive advantage of the firm.
This model aims at value creation by
developing a HR system that creates and
sustains the competitive advantage
through human resources.
SHRM under this model covers the
decisions and actions of managing
employees at every level of business.
The concept of Fit
• Matching HR capabilities and resources with external
opportunities
• Focussing on developing bundles of HR practices in such a
way that they complement each other.
• Vertical Fit-extant of alignment between HR Strategies and
Business Strategy
• Horizontal fit-extant of alignment among components of
HR strategy.

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 STRATEGIC FIT MODEL
This model focuses on matching the HR capabilities and
resources with the external opportunities.
It also focuses on developing HR practices in such a way
that they complement one another.
Two types of strategic fits are:
Vertical fit (deals with the extent of alignment between the
HR strategies and business strategy).
Horizontal fit (deals with the extent of alignment among the
components of the HR strategy).
TYPICAL BOTTLENECKS ENCOUNTERED IN
SHRM
 Absence of long-term orientation,
 Lack of strategic reasoning,
 Lack of adequate support from top management,
 Resistance from labour unions,
 Fear of failure,
 Rigidity of HR practices,
 Fear of attrition
 Absence or inadequate or opaque measurement
techniques

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External Environment Factors That Shape the HRM
Environment

• The external environmental factors

are
• 1. social Environment factors
a) Demographics
b) Educational status
• 2. Technological Environment
factors

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External Factors That Shape the HRM Environment
Continued

• Political Environment
factors,
• Nature of political
organisation and system
• Political stability
• Prevailing political ideologies

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DETERMINENTS OF HRM OUTCOMES
 The Vision and Mission of the
Organisation
 Business Strategy
 Organisational Culture
 Organisational Structure
 HR System

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THE END
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