A introduction to Human Resource Management

1. HUMAN RESOURCEHUMAN RESOURCE
MANAGEMENTMANAGEMENT

2. The Nature of ManagementThe Nature of Management
Management:Management:
 The science perspectiveThe science perspective
 The political perspectiveThe political perspective
 The control perspectiveThe control perspective
 The practice perspectiveThe practice perspective

3. The meaning of ‘management’

4. Management ProcessesManagement Processes
 PlanningPlanning
 OrganizingOrganizing
 StaffingStaffing
 LeadingLeading
 ControllingControlling
Why is HR important to all managers?Why is HR important to all managers?

5. Line and Staff Aspects of HRMLine and Staff Aspects of HRM
 Line managerLine manager
A manager who is authorized to direct theA manager who is authorized to direct the
work of subordinates and is responsible forwork of subordinates and is responsible for
accomplishing the organization’s tasksaccomplishing the organization’s tasks
 Staff managerStaff manager
A manager who assists and advises lineA manager who assists and advises line
managers.managers.

6. Line Managers’ HRM ResponsibilitiesLine Managers’ HRM Responsibilities
1.1. Placing the right person on the right jobPlacing the right person on the right job
2.2. Starting new employees in the organization (orientation)Starting new employees in the organization (orientation)
3.3. Training employees for jobs that are new to themTraining employees for jobs that are new to them
4.4. Improving the job performance of each personImproving the job performance of each person
5.5. Gaining creative cooperation and developing smoothGaining creative cooperation and developing smooth
working relationshipsworking relationships
6.6. Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures
7.7. Controlling labor costsControlling labor costs
8.8. Developing the abilities of each personDeveloping the abilities of each person
9.9. Creating and maintaining department moraleCreating and maintaining department morale
10.10. Protecting employees’ health and physical conditionProtecting employees’ health and physical condition

7. What is HRWhat is HR
Human resources has two meanings dependingHuman resources has two meanings depending
on the context:on the context:
 The original use comes from the politicalThe original use comes from the political
economy and economics, where it is calledeconomy and economics, where it is called
labourlabour, one of the three main factors of, one of the three main factors of
production. (production. (land, labour & capitaland, labour & capita))
 The more modern usage within companies andThe more modern usage within companies and
businesses refers to individuals in thebusinesses refers to individuals in the
company and the portion of the company'scompany and the portion of the company's
organization that deals withorganization that deals with personnel orpersonnel or
staffstaff recruitment , training, record keepingrecruitment , training, record keeping
and other personnel issues.and other personnel issues.

8. Basic HR ConceptsBasic HR Concepts
 The bottom line ofThe bottom line of
managing:managing:
Getting resultsGetting results
 HRHR creates value bycreates value by
engaging in activitiesengaging in activities thatthat
produce the employeeproduce the employee
behaviors that thebehaviors that the
companycompany needs to achieveneeds to achieve
its strategic goalsits strategic goals..

9. DefinitionDefinition
 The branch of organizational science thatThe branch of organizational science that
deals with thedeals with the employment relationshipemployment relationship, along, along
with all the decisions, actions, and issueswith all the decisions, actions, and issues
involved in that relationship.involved in that relationship.
 A strategic approach to managing employmentA strategic approach to managing employment
relations which emphasizes thatrelations which emphasizes that leveragingleveraging
people’speople’s capabilitiescapabilities is critical to achievingis critical to achieving
competitive advantage. This leveraging beingcompetitive advantage. This leveraging being
achieved through a distinctive set ofachieved through a distinctive set of
integratedintegrated employmentemployment policies, programs andpolicies, programs and
practicespractices

10. THE FOCUS OF HRMTHE FOCUS OF HRM
Businesses and organizations rely onBusinesses and organizations rely on three major resourcesthree major resources
 physical resources, such as materials and equipmentphysical resources, such as materials and equipment
 financial resources, including cash,financial resources, including cash, credit,credit, andand debt &debt &
 human resources or workers.human resources or workers.
In its broadest sense, HRM refers to theIn its broadest sense, HRM refers to the management of all decisionsmanagement of all decisions within anwithin an
organization that are related to people.organization that are related to people.
In practice, however,In practice, however,
HRM is a toolHRM is a tool used to try to make optimum use of human resources, toused to try to make optimum use of human resources, to
foster individual development, and to comply with government mandates.foster individual development, and to comply with government mandates.
Larger organizations typically have an HRM department and its primaryLarger organizations typically have an HRM department and its primary
objective is making company goals compatible with employee goalsobjective is making company goals compatible with employee goals
insofar as possible.insofar as possible.
Hence, for a company to attain its goals, it must have employees who will help itHence, for a company to attain its goals, it must have employees who will help it
Attain them.Attain them.

11. HistoryHistory
Key principles & practices associated with HRM date back to the beginning ofKey principles & practices associated with HRM date back to the beginning of
mankind.mankind.
Mechanisms were developed for theMechanisms were developed for the selection of tribal leadersselection of tribal leaders, e.g: & knowledge, e.g: & knowledge
was recorded and passed on to youth about safety, health, hunting, and gathering.was recorded and passed on to youth about safety, health, hunting, and gathering.
More advanced HRM functions were developed as early as 1000 and 2000 BCMore advanced HRM functions were developed as early as 1000 and 2000 BC
e.g.e.g. Employee screening testsEmployee screening tests have been traced back to 1115 B.C. in China.have been traced back to 1115 B.C. in China.
And the earliest form of industrial education,And the earliest form of industrial education, the apprentice systemthe apprentice system, was started, was started
in ancient Greek and Babylonian civilizations before gaining prominence duringin ancient Greek and Babylonian civilizations before gaining prominence during
medieval times.medieval times.
Since the inception of modem management theory, the terminology used toSince the inception of modem management theory, the terminology used to
describe thedescribe the role and function of workersrole and function of workers has evolved fromhas evolved from "personnel" to"personnel" to
"industrial relations" to "employee relations" to "human resources.""industrial relations" to "employee relations" to "human resources."
While all of these terms remain in use,While all of these terms remain in use, "human resources""human resources" most accuratelymost accurately
represents the view of workers byrepresents the view of workers by contemporary management theorycontemporary management theory : as: as valuablevaluable
resources managed in the same manner as other valuable resourcesresources managed in the same manner as other valuable resources, according to, according to
the authors ofthe authors of Human Resource Management.Human Resource Management.

12. Cont…..Cont…..
 The need for an organized form of HRMThe need for an organized form of HRM
emerged during theemerged during the industrial revolutionindustrial revolution,,
as the manufacturing process evolvedas the manufacturing process evolved
from a cottage system to factoryfrom a cottage system to factory
production.production.
 As theAs the Economy shiftedEconomy shifted from anfrom an
agricultural economy to an industrialagricultural economy to an industrial
economy,economy, companies were forcedcompanies were forced toto
develop and implement effective ways ofdevelop and implement effective ways of
recruiting and keeping skilled workersrecruiting and keeping skilled workers..

13. Human ResourceHuman Resource
ManagementManagement
Attract andAttract and
orient neworient new
employeesemployees
EffectiveEffective
compensationcompensation
systemssystems
EffectiveEffective
workwork
environmentenvironment
Compliance &Compliance &
proceduresprocedures
EffectiveEffective
relationshipsrelationships
HRM ActivitiesHRM Activities

14. HumanHuman
ResourceResource
ManagementManagement
OrganizationalOrganizational
ObjectivesObjectives
PersonalPersonal
(Employee)(Employee)
ObjectivesObjectives
SocietalSocietal
ObjectivesObjectives
Objectives of HRMObjectives of HRM
FunctionalFunctional
ObjectivesObjectives

15. ObjectivesObjectives
 To create and utilize an able and motivated workforce, toTo create and utilize an able and motivated workforce, to
accomplish the basic organizational goals.accomplish the basic organizational goals.
 To establish and maintain sound organizational structure andTo establish and maintain sound organizational structure and
desirable working relationships among all the members of thedesirable working relationships among all the members of the
organization.organization.
 To secure the integration of individual or groups within theTo secure the integration of individual or groups within the
organization by coordination of the individual and group goalsorganization by coordination of the individual and group goals
with those of the organization.with those of the organization.
 To create facilities and opportunities for individual or groupTo create facilities and opportunities for individual or group
development so as to match it with the growth of thedevelopment so as to match it with the growth of the
organization.organization.
 To attain an effective utilization of human resources in theTo attain an effective utilization of human resources in the
achievement of organizational goals.achievement of organizational goals.

16. Cont…..Cont…..
 ToTo identify and satisfy individual and group needsidentify and satisfy individual and group needs by providing adequateby providing adequate
and equitable wages, incentives, employee benefits and social securityand equitable wages, incentives, employee benefits and social security
and measures for challenging work, prestige, recognition, security,and measures for challenging work, prestige, recognition, security,
status.status.
 ToTo maintain high employees moralemaintain high employees morale and sound human relations byand sound human relations by
sustaining and improving the various conditions and facilities.sustaining and improving the various conditions and facilities.
 ToTo strengthen and appreciate the human assets continuouslystrengthen and appreciate the human assets continuously byby
providing training and development programs.providing training and development programs.
 ToTo consider and contribute to the minimization of socio-economic evilsconsider and contribute to the minimization of socio-economic evils
such as unemployment, under-employment, inequalities in thesuch as unemployment, under-employment, inequalities in the
distribution of income and wealth and to improve the welfare of thedistribution of income and wealth and to improve the welfare of the
society by providing employment opportunities to women andsociety by providing employment opportunities to women and
disadvantaged sections of the society.disadvantaged sections of the society.
 To provide an opportunity forTo provide an opportunity for expression and voice managementexpression and voice management..
 To provideTo provide fair, acceptable and efficient leadership.fair, acceptable and efficient leadership.
 To provideTo provide facilities and conditions of workfacilities and conditions of work and creation of favorableand creation of favorable
atmosphere for maintaining stability of employment.atmosphere for maintaining stability of employment.

17. HRM Functions

18. HRM Objectives & FunctionsHRM Objectives & Functions
1.Legal Compliance1.Legal Compliance
2.Benefits2.Benefits
3. Union-management relations3. Union-management relationsSocietal objectives
Organizational ObjectivesOrganizational Objectives
1. Human Resource Planning
2. Employee Relation
3. Selection
4. Training & Development
5. Appraisal
Functional Objectives
1. Appraisal
2. Placement
3. Assessment
Personal Objective
1. Training & Development
2. Appraisal
3. Placement
4. Compensation
5. Assessment

19. Human Resource Wheel

20. The system of basic HRM PracticesThe system of basic HRM Practices
Selection Job Design
Specification
Performance Appraisal
Rewards
Development
HR planning
HR marketing & Employer Branding
Recruitment
Formal & informal
coaching and training
Career planning & development
Succession planning
Evaluation &
Feedback &
Objective setting
Outplacement
Promotion
Work / Life
Balance

21. Models of HRModels of HR
The management of most important resources –The management of most important resources – the peoplethe people
is of utmost importanceis of utmost importance..
 Until about the 1970s the task of ‘Until about the 1970s the task of ‘finding and controllingfinding and controlling
peoplepeople’ was handled by Personnel Management which was’ was handled by Personnel Management which was
largely anlargely an administrativeadministrative function, dealing with thefunction, dealing with the
management and control of subordinatesmanagement and control of subordinates
 The concept of Human Resource Management developedThe concept of Human Resource Management developed
with a morewith a more strategic level of thinkingstrategic level of thinking about the nature andabout the nature and
role of people (as total 24hr per day human beings) workingrole of people (as total 24hr per day human beings) working
inin organizations which are ‘culturesorganizations which are ‘cultures’ in their own right.’ in their own right.

22. HRM ModelsHRM Models
Recent thinking has moved from theRecent thinking has moved from the
 control-based modelcontrol-based model to theto the
 compliance modelcompliance model..
 The soft edge of the latter involvesThe soft edge of the latter involves improving employee commitmentimproving employee commitment andand
expecting effectiveness and efficiency to follow.expecting effectiveness and efficiency to follow.
 The hard edge of the latter involves ridding the organization ofThe hard edge of the latter involves ridding the organization of
unnecessary layers of middle management which, when stripped of controlunnecessary layers of middle management which, when stripped of control
functions, have very little by way of value added.functions, have very little by way of value added.
The management task is to cause the people to beThe management task is to cause the people to be
as creative and productive as possible.as creative and productive as possible.

25. Theoretical perspectives on HRMTheoretical perspectives on HRM
Key areas of most models of HRM include:
 HR Planning and staffing (including recruitment and
selection)
 Developing staff
 Rewarding and motivating staff
 Staff welfare (including health and safety)
 Employment relations – managing conflicts
 Managing change – response to competition, new
technology, laws
 Evaluate contribution of HRM

26. Some ModelsSome Models
 Fombrun, Tichy & Devanna Model
 Harvard ModelHarvard Model
 David Guest ModelDavid Guest Model
 The Warwick ModelThe Warwick Model
 John Storey ModelJohn Storey Model

27. Fombrun, Tichy & DevannaFombrun, Tichy & Devanna

28. Fombrun, Tichy & Devanna

29. Fombrun, Tichy & DevannaFombrun, Tichy & Devanna
 This is a fairly basic model but
identifies Four important and
interlinked activities of HRM
 But does not really provide much detail
as to how these things are or should be
done

30. HarvardHarvard
Six elements identified
 Situation – workforce, management
philosophies, labour market contexts,
legal and social regulations, social
values
 Stakeholders – various interests
surrounding the organization

31. The Harvard SystemThe Harvard System
 Integrated modelIntegrated model
 Analytical - commonly usedAnalytical - commonly used
 Policy choices influenced by interestPolicy choices influenced by interest
groups and situational factorsgroups and situational factors
 A prescriptive element - theA prescriptive element - the
outcomesoutcomes
 Identifies limited preferred /Identifies limited preferred /
superior choices?superior choices?
 Perhaps one way communication?Perhaps one way communication?

32. Harvard model HRMHarvard model HRM

33. Consequences
 Individual – pay, rewards, identity, well being
 Organizational – effectiveness, efficiency,
profits
 Societal - employment, economic growth,
prosperity
 Feedback – evaluation and appropriate
adjustment to policies and practices

34. David Guest ModelDavid Guest Model
Basic argument is that integrated HR practices can lead
to improved individual and organizational performance
HRM is distinctive from old style personnel management
because:
 It is more tightly or closely integrated into the
organization's business strategy, not an add on.
 It seeks to achieve behavioural commitment of
employees, not just compliance
 Its emphasizes a unitary or common interest
between employers and employees in working towards
organizational success rather than recognizing
differing interests & Conflicts

35.  It emphasises individual contribution and
efforts and links these to rewards, rather
than managing people in standard ways as a
group
 Business strategy is important because it has
implications for HR strategy and practices
Outcomes of HR are :
 high commitment
 high quality
 flexibility

36. Guest

37. The Warwick ModelThe Warwick Model
 More analytical approach than Harvard - noMore analytical approach than Harvard - no
perscriptive elementsperscriptive elements
 External influences are recognised in theExternal influences are recognised in the
context of HR strategycontext of HR strategy
 Two way system of communication -Two way system of communication -
dialogue modeldialogue model
 Recognises the role of personnel function inRecognises the role of personnel function in
HR strategyHR strategy

38. John Storey ModelJohn Storey Model
 Demonstrates the differences betweenDemonstrates the differences between
the ‘personnel and industrials’ and thethe ‘personnel and industrials’ and the
HRM paradigm by creating an ‘ideal’HRM paradigm by creating an ‘ideal’
type.type.
 Characterizes HRM as ‘anCharacterizes HRM as ‘an amalgamamalgam ofof
description, prescription, and logicaldescription, prescription, and logical
deduction’.deduction’.

39. Storey

40. Storey

41. Example:Example: HR Business ModelHR Business Model
(Bank of Baroda)(Bank of Baroda)

42. TheThe Strategic HR Business ModelStrategic HR Business Model adopted byadopted by
Bank of Baroda incorporates itsBank of Baroda incorporates its HR Mission andHR Mission and
PhilosophyPhilosophy and is focused towardsand is focused towards attainmentattainment
of long-term organizational goals.of long-term organizational goals.
A very strongA very strong Organizational LeadershipOrganizational Leadership atat
different levels forms the key link in the Model.different levels forms the key link in the Model.
These are:These are:
 Strategic Leadership - Corporate levelStrategic Leadership - Corporate level
 Business Leadership - Zonal & Regional levelBusiness Leadership - Zonal & Regional level
 Operational Leadership - Business unit level i.e.Operational Leadership - Business unit level i.e.
branchbranch

43. The two vital Human Resource sub-systems i.e.The two vital Human Resource sub-systems i.e.
 HR Planning & Management Sub-System &HR Planning & Management Sub-System &
 Competency Based HRD Sub-SystemCompetency Based HRD Sub-System
shape the very crucialshape the very crucial Performance EnvironmentPerformance Environment within the Bankwithin the Bank
whichwhich
facilitates development of enabling capabilities of people.facilitates development of enabling capabilities of people.
 Through proper developmental inputs,Through proper developmental inputs, Positive AttitudePositive Attitude &&
Right MindsetRight Mindset is created among people.is created among people.
 Through properThrough proper Communication Medium and an Organizational CultureCommunication Medium and an Organizational Culture
of sharing, openness, collaboration & confrontation, autonomyof sharing, openness, collaboration & confrontation, autonomy
etc., people in the organization are facilitated to give theiretc., people in the organization are facilitated to give their
best output (performance).best output (performance).

44. The Model is adequately supported by a suitableThe Model is adequately supported by a suitable
Learning PlatformLearning Platform, which imparts proper, which imparts proper
KnowledgeKnowledge and enhancesand enhances LearningLearning among peopleamong people
(functional, behavioural etc) so that their(functional, behavioural etc) so that their
CompetenceCompetence increases and their potential couldincreases and their potential could
be properly leveraged forbe properly leveraged for greatergreater IndividualIndividual
And Organizational EffectivenessAnd Organizational Effectiveness..
These create properThese create proper Employee MotivationEmployee Motivation,,
which ultimately facilitateswhich ultimately facilitates Goal AchievementGoal Achievement..

45. Assumptions about HRMAssumptions about HRM
R. Wayne Pace, writing inR. Wayne Pace, writing in Human Resource Development,Human Resource Development, identifies sevenidentifies seven
underlying assumptions that provide a foundation and direction for HRM.underlying assumptions that provide a foundation and direction for HRM.
 First is theFirst is the acknowledgment of individual worthacknowledgment of individual worth, suggesting that companies recognize, suggesting that companies recognize
and value individual contributions.and value individual contributions.
 Second is thatSecond is that employees are resources who can learn new skills and ideasemployees are resources who can learn new skills and ideas and can beand can be
trained to occupy new positions in the organization.trained to occupy new positions in the organization.
 Third is thatThird is that quality of work lifequality of work life is a legitimate concern, and that employees have ais a legitimate concern, and that employees have a
right to safe, clean, and pleasant surroundings.right to safe, clean, and pleasant surroundings.
 Fourth assumption is theFourth assumption is the need for continuous learningneed for continuous learning; talents and skills must be; talents and skills must be
continually refined in the long-term interests of the organization.continually refined in the long-term interests of the organization.
 Fifth assumption supporting the existence of an organized HRM within a company orFifth assumption supporting the existence of an organized HRM within a company or
institution is thatinstitution is that opportunities are constantly changingopportunities are constantly changing and companies need methodsand companies need methods
to facilitate continual worker adaptation.to facilitate continual worker adaptation.
 Sixth isSixth is employee satisfactionemployee satisfaction, which implies that humans have a right to be satisfied, which implies that humans have a right to be satisfied
by their work and that employers have a responsibility and profit motivation to try toby their work and that employers have a responsibility and profit motivation to try to
match a worker's skills with his or her job.match a worker's skills with his or her job.
 Seventh and final assumption is that HRM encompasses a much broader scope thanSeventh and final assumption is that HRM encompasses a much broader scope than
technical training—employeestechnical training—employees need to know more than the requirements of a specificneed to know more than the requirements of a specific
tasktask in order to make their maximum contribution.in order to make their maximum contribution.

46. THE ROLE, POSITION, AND STRUCTURETHE ROLE, POSITION, AND STRUCTURE
OF HRM DEPARTMENTSOF HRM DEPARTMENTS
InIn Personnel Management,Personnel Management, Paul S. Greenlaw and John P. Kohl describe threePaul S. Greenlaw and John P. Kohl describe three
distinct,distinct, interrelated fields of interestinterrelated fields of interest addressed by the HRM discipline:addressed by the HRM discipline:
 human relations,human relations,
 organization theory,organization theory, andand
 decision areas.decision areas.
..
..
..
Human relationsHuman relations
individual motivation,individual motivation,
leadership,leadership,
& group relationships& group relationships
Organization theoryOrganization theory
job design,job design,
managerial control &managerial control &
work flowwork flow
through the organizationthrough the organization
Decision areasDecision areas
interests related tointerests related to
acquisition, development,acquisition, development,
Compensation &Compensation &
maintenance ofmaintenance of
human resourceshuman resources
HRM

48. Structure of HRM departmentsStructure of HRM departments
The departments differ according to theThe departments differ according to the type and sizetype and size of the organizationof the organization
that they serve.that they serve.
But many large organizations (including governments, institutions,But many large organizations (including governments, institutions,
manufacturing companies, and service firms) organize HRM employeemanufacturing companies, and service firms) organize HRM employee
development functions around various clusters of workers—theydevelopment functions around various clusters of workers—they conductconduct
recruiting, administrative, and other duties in arecruiting, administrative, and other duties in a central locationcentral location..
Different employee development groupsDifferent employee development groups for each department arefor each department are
necessary to train and develop employees innecessary to train and develop employees in specializedspecialized areas, such asareas, such as
sales, engineering, marketing, or executive education.sales, engineering, marketing, or executive education.
In contrast, someIn contrast, some HRM departments are completely independentHRM departments are completely independent and areand are
organized purely by function. The same training department, for example,organized purely by function. The same training department, for example,
serves all divisions of the organization.serves all divisions of the organization.

49. HRM department responsibilitiesHRM department responsibilities
Individual managementIndividual management
This entailsThis entails helping employees identify their strengths andhelping employees identify their strengths and
weaknessesweaknesses, correct their shortcomings, and then make their best, correct their shortcomings, and then make their best
contribution to the enterprise. These duties are carried outcontribution to the enterprise. These duties are carried out
through a variety of activities such as performance reviews,through a variety of activities such as performance reviews,
training, and testing.training, and testing.
Organizational developmentOrganizational development
This focuses on fosteringThis focuses on fostering a successful systema successful system that maximizesthat maximizes
human, and other, resources. This important duty also includes thehuman, and other, resources. This important duty also includes the
creation and maintenance of a change program, which allows thecreation and maintenance of a change program, which allows the
organizationorganization to respond to evolving outside and internal influencesto respond to evolving outside and internal influences..
Career AreasCareer Areas
The third responsibility,The third responsibility, career developmentcareer development, involves matching, involves matching
individuals with the most suitable jobs and career paths.individuals with the most suitable jobs and career paths.

50. Positioning of HRM DepartmentsPositioning of HRM Departments
In larger organizations the HRM function might be headed by aIn larger organizations the HRM function might be headed by a
vice president,vice president, while smaller entities will have a middle-level managerwhile smaller entities will have a middle-level manager
as head of HRM.as head of HRM.
In any case, because the HRM department is charged with managingIn any case, because the HRM department is charged with managing
thethe productivity and development of workers at all levelsproductivity and development of workers at all levels, the top, the top
HRM manager ideally has access to, and the support of, key decisionHRM manager ideally has access to, and the support of, key decision
makers.makers.
In addition, the HRM department should be situated in such a wayIn addition, the HRM department should be situated in such a way
thatthat it has horizontal accessit has horizontal access, or, or is able to communicate effectivelyis able to communicate effectively
with all divisions within the company.with all divisions within the company.
Horizontal access allows HRMHorizontal access allows HRM to integrate, educate, and train theto integrate, educate, and train the
workforceworkforce, and, and to facilitate changesto facilitate changes that affect one division andthat affect one division and
indirectly influence other segments of the company or institution.indirectly influence other segments of the company or institution.

51. HRM IMPLEMENTATION ACTIVITIESHRM IMPLEMENTATION ACTIVITIES
To fulfill their basic role and achieve their goals,To fulfill their basic role and achieve their goals,
HRM professionals and departments engage in aHRM professionals and departments engage in a
variety of activities in order to execute theirvariety of activities in order to execute their
human resource plans.human resource plans.
HRM implementation activities fall intoHRM implementation activities fall into fourfour
functional groups, each of which includesfunctional groups, each of which includes
related legal responsibilities:related legal responsibilities:
 acquisition,acquisition,
 development,development,
 compensation, andcompensation, and
 maintenance.maintenance.

52. Today’s Workforce Realities:Today’s Workforce Realities:
A Pressure Cooker about to Blow?A Pressure Cooker about to Blow?
 Decade of boom & bust leaves working families withDecade of boom & bust leaves working families with::
 Stagnant, declining incomesStagnant, declining incomes
 Increased inequalityIncreased inequality
 Longer working hoursLonger working hours
 Less retirement savings; fewer health care benefitsLess retirement savings; fewer health care benefits
 Broader job insecurityBroader job insecurity
 Loss of worker voice in societyLoss of worker voice in society
 Current government policies producing:Current government policies producing:
 Further cuts in services & jobsFurther cuts in services & jobs
 Tax policies that further increase inequalityTax policies that further increase inequality
 Deep divisions over war policiesDeep divisions over war policies
 Direct attacks on workers, unions, and core valuesDirect attacks on workers, unions, and core values

53. FORCES CHANGING HRMFORCES CHANGING HRM
Information technologyInformation technology—brought about the—brought about the decentralization of communicationsdecentralization of communications and theand the
shake-up of existing paradigms of human interaction and organizational theory. Satelliteshake-up of existing paradigms of human interaction and organizational theory. Satellite
communications,communications, computerscomputers and networking systems, fax machines, and other devicesand networking systems, fax machines, and other devices
were facilitating rapid changewere facilitating rapid change
Decentralized management systems-Decentralized management systems---(scrapping traditional, hierarchical organizational--(scrapping traditional, hierarchical organizational
structures)structures) teamteam approach to managementapproach to management
GlobalizationGlobalization------To compete abroad, companies were looking to their HRM professionalsTo compete abroad, companies were looking to their HRM professionals
to augment initiatives related to quality, productivity, and innovationto augment initiatives related to quality, productivity, and innovation
Cultural changesCultural changes
 Concern for employee rightsConcern for employee rights
 Changing attitude towards workChanging attitude towards work
 Balancing work and familyBalancing work and family
Demographic (population related) and Employee concernsDemographic (population related) and Employee concerns
 Demographic changesDemographic changes
 Diversity of backgroundsDiversity of backgrounds
 Age distributionsAge distributions
 Gender distributionGender distribution
 Rising level of educationRising level of education

54. Meeting the challengeMeeting the challenge
 Critical Issues & OpportunitiesCritical Issues & Opportunities
 Building Knowledge Based OrganizationsBuilding Knowledge Based Organizations
 Knowledge WorkersKnowledge Workers
 Knowledge Based Work SystemsKnowledge Based Work Systems
 The Dual Agenda: Work & Family OutcomesThe Dual Agenda: Work & Family Outcomes
 Building/Sustaining Productive Labor ManagementBuilding/Sustaining Productive Labor Management
PartnershipsPartnerships
 How to Get ThereHow to Get There
 Rebuilding External AlliancesRebuilding External Alliances
 Becoming More AnalyticalBecoming More Analytical
 Rebuilding Trust through Openness & TransparencyRebuilding Trust through Openness & Transparency

56. Steps in Strategic HRMSteps in Strategic HRM
EnvironmentalEnvironmental
AnalysisAnalysis
EnvironmentalEnvironmental
AnalysisAnalysis
OrganizationalOrganizational
Mission &Mission &
GoalsGoals
AnalysisAnalysis
OrganizationalOrganizational
Mission &Mission &
GoalsGoals
AnalysisAnalysis
Analysis ofAnalysis of
OrganizationalOrganizational
Strengths &Strengths &
CultureCulture
Analysis ofAnalysis of
OrganizationalOrganizational
Strengths &Strengths &
CultureCulture
Analysis ofAnalysis of
OrganizationalOrganizational
StrategiesStrategies
Analysis ofAnalysis of
OrganizationalOrganizational
StrategiesStrategies
Choice &Choice &
ImplementationImplementation
Of HROf HR
StrategiesStrategies
Choice &Choice &
ImplementationImplementation
Of HROf HR
StrategiesStrategies
Review &Review &
EvaluationEvaluation
of HRof HR
StrategiesStrategies
Review &Review &
EvaluationEvaluation
of HRof HR
StrategiesStrategies

58. Changes… leads to….Changes… leads to….
 More consumer choiceMore consumer choice
 Merger and acquisitionsMerger and acquisitions
 Joint venturesJoint ventures
 More complexityMore complexity
 Short product life cyclesShort product life cycles
 Market fragmentationMarket fragmentation
 More uncertainty for managersMore uncertainty for managers
 Record number of business failuresRecord number of business failures

59. So.. The companies must be…So.. The companies must be…
FAST, RESPONSIVE, COST-EFFECTIVEFAST, RESPONSIVE, COST-EFFECTIVE::
*Flat organization *Downsized*Flat organization *Downsized
*Quality-conscious *Empowered*Quality-conscious *Empowered
*Smaller units *Decentralized*Smaller units *Decentralized
*Human-capital oriented *Boundary less*Human-capital oriented *Boundary less
*Values- and vision-oriented *Team-based*Values- and vision-oriented *Team-based

60. HRM-Indian ContextHRM-Indian Context
Innovative HRM practices are being adopted by Indian firms to brace competition in the
post liberalization scenario:
 HRM plays a vital role in crafting creative business strategies
 HRM plays a critical role during organizational restructuring
 Adoption of innovative HRM practices in creating social networks
 HRM's role in strategy formulation
 Innovative HRM invokes new challenges, new skills, new programs and new
technologies
 Innovative HRM shifts from an uni-dimesional to a multi-dimensional approach
 Effective HRM and strong leadership can enable Indian companies to go global
 Innovative HRM practices can help the company to break away from traditional
shackles
 Innovative and proactive HRM can lead to superior performance

62. HRM –Global ContextHRM –Global Context
 HR and the Internationalization of businessHR and the Internationalization of business
The HR Challenges of international businessThe HR Challenges of international business
How inter country differences influence HRMHow inter country differences influence HRM
Cultural factorsCultural factors
Economic systemsEconomic systems
Legal and industrial relations factorsLegal and industrial relations factors

63. A Case StudyA Case Study
Dell’s dual HR roles
Deals with staff
- benefits
- compensation
- call center
Deals with management
- education
- recruitment
- planning
- training
- personnel needs
OPERATIONS MANAGEMENT

64. GlobalizationGlobalization
0
10
20
30
40
50
60
70
80
1920 1950 1970 2000
% fortune 500 with a
global presence

65. Consequences of these basic trendsConsequences of these basic trends
Technology
Global expansion
Strengths and
Weaknesses
Uncertainty,
Turbulence,
Rapid
Change,
Changing
power
bases
Companies
must be
Fast,
Responsive,
and
Cost-
effective
Improved competition

66. HR’s evolving roleHR’s evolving role
Protector
and
Screener
Strategic Partner
Change Agent

67. Technology can be the Human ResourcesTechnology can be the Human Resources
engine of changeengine of change

68. HR and technologyHR and technology
 Basic HR systems demand paperworkBasic HR systems demand paperwork
 70% of HR’s employees time = paperwork70% of HR’s employees time = paperwork
 Off the shelf forms from Office Depot/OfficemaxOff the shelf forms from Office Depot/Officemax
 Online formsOnline forms
 Human Resource Information Systems (HRIS)Human Resource Information Systems (HRIS)
 HR on the InternetHR on the Internet

69. HR portalsHR portals
Employees can
answer their own
questions
HR moves from
reactive to proactive

70. HR means performanceHR means performance
 Can HR have a measurableCan HR have a measurable
impact on a company’simpact on a company’s
bottom line?bottom line?
 Better HRM translates intoBetter HRM translates into
improved employeeimproved employee
attitudes and motivationattitudes and motivation
(e.g., working at home)(e.g., working at home)
 Well run HR programs driveWell run HR programs drive
employee commitmentemployee commitment TOYOTA

71. Things to Remember as We Move intoThings to Remember as We Move into
Chapter 2Chapter 2
 HR management: theHR management: the
responsibility ofresponsibility of everyevery managermanager
 HR practices today mustHR practices today must
address several basic issuesaddress several basic issues
includingincluding
 Improving competitivenessImproving competitiveness
 GlobalizingGlobalizing
 Technology and internet-basedTechnology and internet-based
advancesadvances
 Contributing to strategic successContributing to strategic success