Human Resource Management- Chap1_230509_171504.pdf

203- HRM
Unit 1- Human Resource Management:
Concept and Challenges

Concept and Challenges - Introduction, Objectives, Scope,
Features of HRM,
Role of HRM, Importance of HRM,
Policies and Practices of HRM, Functions of HRM ,
Challenges of HRM.
Introduction to SHRM: Define SHRM, importance and nature.
HRM Models: Harvard Model,
SHRM “matching model”
Points to be discussed:

Introduction of HRM and
Framework
Meaning :
The human resource management is the management of people at work and
management of manager. It studies the various aspects of human beings. It
gives proper scope for the enhancement of efficiency and skill of employees.

Definitions :
1) Michael V. P. :
• “Human resource
management is that part of
management process which
develops, and manages the
human elements of enterprise
considering the resourcefulness of
the organization's own people in
terms of total knowledge, skills,
creative abilities, talents, aptitudes
and potentialities for effectively
actuating.”

French Wendell:
"Human resource
management is the
recruitment, selection,
development, utilization,
compensation and
motivation of human
resources by the
organization".

Nature of HRM :
Concerned
with Human
Element
Integral Part of
Management
Wide Range of
Activities
Motivation of
Human
Resource
Pervasive
Function
Continuous
Function
Broader
Function
People
Oriented
Action
Oriented
Development
Oriented
Future
Oriented
Nature of
HRM

Functions of HRM :
Functions
of HRM
Managerial
Functions
Operational
Functions
Developmental
Functions
Analytical
Functions
Strategic
Functions
1. Planning
2. Organizing
3. Directing
4. Controlling
5. Innovation
6. Representation
7. Coordination
8. Decision-making
1. HR Planning
2. HR Acquisition
3. Compensation
and Benefits
4. Occupational
Safety and
Health
5. Integration and
Maintenance
Employee
Relations
1. Human
Resource Policy
2. Career and
Succession
Development
3. Training and
Development
4. Performance
Management
Total Quality
Management
1. HR Consultation
2. HR Research
3. HR Management
Reform
1. HR Strategy
2. HR Outsourcing
3. HR Mergers

Practices and Policies of HRM :
HRM refers to practices and policies framed for the management
of human resource organisation, including Recruiting, screening, reward
in grand appraising
Practices
of HRM
Safe, Healthy
& Happy
Workplace Open Book
Management
Style :
Performance
- linked
Bonuses
360 Degree
Performance
Management
Feedback
System
Fair
Evaluation
System for
Employees
Knowledge
Sharing
Highlight
Performer
Open House
Discussion
Feedback
Mechanism
Reward
Ceremonies
Delight
Employees
with
Unexpected

Practices and Policies of HRM :
• Leadership and Strategy
• Recruiting and Hiring
• Employee Development
• Compensation
• Workplace Challenges
• Discrimination Issues
• Manpower Planning
• Recruitments
• Motivation
• Principle
• Procedures
• Performance Appraisal
• Promotion
• Principles
• Promotion Procedures
• Training
• Induction
• Management development
• Vocational
• Language and communication
• Welfare
Policies
of
HRM

Strategic Human Resource Management
(SHRM)
Meaning :
Strategic human resource management (SHRM) is about the formulation of
HR strategies in alignment with the overall corporate strategy to achieve the
goals of the organisation
Definition :
 Gary Dessler :
“Strategic human resource management means formulating and executing
human resource policies and practices that produce the employee
competencies and behaviours that the company needs to achieve its strategic
aim”
 R. S. Schuler :
“Strategic human resource management is concerned with all those activities
that affect the behaviour of individuals in their efforts to formulate and
implement the strategic needs of business."

Provide
Direction to
Achieve
Goal
Approach
to Decision
Making
Offers
Benefits to
Organisatio
n
Long Term
Process
Integration
of Strategy
Roles
Framework
Focus
Organisatio
nal Level
Nature of HRM

Nature of HRM
1) Organizational Level :
Because strategies involve decisions about key goals, major
policies and the allocation of resources, they tend to be
formulated at the top.
2) Focus :
Strategies are business-driven and focus on organizational
effectiveness; thus in this perspective people are viewed primarily
as resources to be managed toward the achievement of Strategic
business goals.

3) Framework :
Strategies by their very nature provide unifying frameworks that are at
once broad, contingency—based and integrative.
4) Roles :
As the foregoing suggests, strategy-making generally is the
responsibility of line managers, with personnel playing a supportive
role.
5) Integration of Strategy :
Strategic HRM makes integration of the HRM and corporate strategy.
Strategic HRM seeks to ensure that HRM is fully integrated into
strategic planning.
6) Strategic HRM is a Long Term Process :
It is a process of environmental scanning, strategy formulation strategy
implementation and evaluation and control.

7) Offer Benefits to Organization :
Strategic HRM offers both financial and non-financial benefits to the
corporation.
8) Approach to Decisions Making :
Strategic HRM is an approach to making decisions on the intentions and
plans of the organisation concerning the employment relationship and
its recruitment, training, development, performance management,
reward, and employee relations policies and practices.
9) Provide Direction to Achieve Goals :
Strategic HRM refers to the overall direction the organisation wishes to
pursue in achieving its objectives through people.

The strategic Functions of HRM understood and implemented
in the Company :
The functions of strategic human resource management is primarily
aimed at building high performance human resource management
functions that add strategic value to the core businesses of an
organization.
Functions of Strategic Management
High Performance
HRM Practices
Organisational
Reengineering
Transformational
Leadership
Workplace
Learning
Assessing HR
Effectiveness

1) Establishing High Performance Human Resource Management
Practices :
Strategic human resource management ensures that an alignment between
business strategy and human resource strategy takes place for superior
organizational performance and competitiveness.

2. Re-engineering Organization :
• Strategic human resource management emphasizes the pivotal
role of organizational design for greater work autonomy and vertical
and horizontal compression of tasks.

3. Developing Transformational Leadership :
Managerial leadership is central to strategic human
resource management and thus entails the
development of organizations' human endowment;
cultivate commitment, flexibility, innovation and change.

4) Establishing Workplace Learning :
Strategic human resource management ensures work related
learning, both formal and informal, to help achieve
commitment, flexibility and quality of human resources.

5) Assessing HR Effectiveness :
Since strategic human resource management considers human
resources as ‘strategic issue', therefore, it attempts to identify the
strategic human resource needs in support of the business strategy
to assess whether human resource possess the key competencies
needed to partner strategically with internal as well as external
customers.

Global Competitiveness and Strategic HR
Global
Competiveness
and Strategic
HR
Global
Framework
Global Legal
and
Regulatory
Factors
Off shoring
Global
Staffing
Leadership
1) Global Framework :
Mastering the global
complexities of managing
human resources is
important not only for HR
results, but also for the
overall success of the
organisation. Companies
operating globally must
deliver basic HR services
while also overcoming
various operational, cultural,
organisational obstacles

1) Global Framework :
Mastering the global complexities of managing human resources is important
not only for HR results, but also for the overall success of the organization. Companies
operating globally must deliver basic HR services while also overcoming various
operational, cultural, organizational obstacles
2) Global Legal and Regulatory Factors :
Globally-operating organizations must be aware of widely varying legal and
regulatory systems due to politics, economic differences, and other factors.
3) Off shoring :
Off shoring is the relocation by a company of a business process or operation from
one country to another. Firm offshore the production of goods as well as the delivery
of services to lower-wage countries.
4) Global Staffing :
Staffing for global operations includes a wide variety of alternatives.
5) Leadership :
Leadership development is especially important for MNCs. It is becoming more
important for individuals in top management positions to have international
experience so that they understand the worldwide marketplace.

Linkage of Organizational and HR
Strategies
Linkage of Organisational and HR
Strategies
• Strategic Alignment of Hr
• Delivering the Strategy
• Effective Training and Development
• Improve Recruitment and Selection
• HR Drive Strategy
• Provide Mechanism
• Clear Foundation
• Understand Features of Business Strategy

1. Strategic Alignment of HR :
HR departments sometimes are left to deal with administrative
functions, such as recruitment, performance, training.
2. Delivering the Strategy :
An effective HR strategy with clear links to the business strategy
enables organization to align its activities better with its human
resources.
3. Effective Training and Development :
Organizations are affected by a huge range of external and internal
factors that together can change the nature of individual job roles or
place new demands on individual’s skill sets.

4) Improved Recruitment and Retention :
With recruitment and retention being two key areas where monetary value can be
assigned.
5) HR Drives Strategy :
A mature approach to HR strategy places it at the center of understanding an
organization's overall capacity and capability.
6) Provide Mechanism :
The HR needs to provide mechanism whereby the learning is implemented, this is
not exclusive and will require the support of strategic level of the business.
7) Clear Formulation:
It is important that organizational strategy is clearly formulated, objectives clearly
defined and means clearly elucidated.
8) To Understand Features of Business Strategy :
It needs to be understood what parts or features of business strategy HR could
directly contribute to.

Models of SHRM
II) Devanna et.al – Strategic Human Resource Management “Matching
Model’:
Michigan model of HRM has originated from the writings of C. Fontbrun. Noel
Tichy and M./t. Devanna. The model shows how activities within HRM can be
unified and designed in order to support the organisations strategy. It is
divided into two parts: first which shows HR-strategy integration and second
which depicts the HR cycle.
Fombrun proposed the 'matching model', which indicated that HR systems and the
organization structure should be managed in a way that is congruent with
organizational strategy

A) Important HR issues to achieve such a match:
 Selection of the most suitable people to meet business needs.
 Performance in the pursuit of business, objectives.
 Rewards for appropriate performance.
 Development of skills and knowledge required to meet business
objectives.
B) Managerial Implications of the Model :
 The model is focused on individual and organisational performance.
 It concentrates on managing human assets to achieve strategic goals.
 The model contributes lo human resource performance.

Basic of HRM
https://www.yutube.com/watch?v=zqcXlpMa3wI
Case
https://www.youtube.com/watch?v=Liz9mJzbQtI

Questions
1. Define HRM, briefly describe SHRM. Write down it’s best
Practice Approach
2. “Organizational strategies have linkage with HR Strategies”
Discuss
3. Define HRM and discuss in brief the future challenges faced
by HR Manager.
4. Discuss in details the Models of SHRM
5. Describe the Strategic functions of HRM and the way it
implemented in Company
6. Write in details: Global Competitiveness and Strategic HR
7. What are the different policies n practices of HRM, explain in
detail.
8. Briefly describe the functions and objectives of HRM.
9. Explain the nature and scope of HRM
10. “Best HR practices, lead the organization towards
achievement of it’s/their goal” Explain the statement

Human Resource Management- Chap1_230509_171504.pdf

Human Resource Management- Chap1_230509_171504.pdf

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