HR Matrix, Stakeholders, Line vs Staff, Changing Environment & Role of HRM and Competitive Challenges Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA,

PhD(Mgt)Professor

Al-Qurmoshi Institute of Business Management, Hyderabad - 500005

Four Core Concepts of HR Matrix

(i) There should be a fit between stage of organization & stage of development of HR resources function that supports it

At its most sophisticated, an organization measures the costs and efficacy of its HR programs and chooses whether to outsource them or to perform them in house

(ii)Every time a human resources function is in transition between one stage & another, a particular problem to be solved

Between Stages I and II, the problem is "growth." Between Stages IV and V, the problem is "cross-

functional integration." If we can identify what stage HR organization is in, we

can predict what problem it will face next.

Four Core Concepts of HR Matrix (Contd.)(iii)The six strategic components of human resources

management are: - Manager awareness, - How the HR function is managed, - What the portfolio of programs is, - How information technology is used, - The skills of the HR professionals, and - Awareness of the business environment. If we assess HR function along these six dimensions, we

can identify both strengths and weaknesses.(iv) Balance is a concept that applies to human

resources functions as well as people. All six strategic components should be roughly at the

same level.

Line Vs Staff ManagementLine and staff management has two separate hierarchies: (i) The line hierarchy in which the departments are

revenue generators (manufacturing, selling), and their managers are responsible for achieving organisation’s main objectives by executing the key functions (such as policy making, target setting, decision making).

(ii) The staff hierarchy, in which the departments are revenue consumers and their managers are responsible for activities that support line functions (such as, accounting, maintenance, HRM, Production Planning, Purchasing, Finance, etc.,).

A line manager may have direct control over staff employees but a staff manager may have no such power over the line employees

Changing Environment & Role of HRM‘Environment' here refers to the "totality of all

factors which influence both the organization and personnel sub-system“

External Factors influencing the HRM Function

• Technological Factors• Economic Challenges• Political Factors• Social Factors• Local and Governmental Issues• Trade Unions• Employers’ Demands• Workforce Diversity

Changing Environment & Role of HRM (Contd.)Internal Factors influencing the HRM Function• Mission• Policies• Organizational Culture• Organization Structure• HR System Each of the above factors separately or in

combination can influence the HR function of any organization.

The job of a HR manager is to balance the demands and expectations of the external groups with the internal requirements and achieve the assigned goals in an efficient and effective manner.

Competitive Challenges Influencing Human Resource Management

Three competitive challenges that companies now face will increase the importance of human resource management practices:

- the challenge of sustainability, - the global challenge, - the technology challenge.

Sustainability Challenge

Traditionally, sustainability has been viewed as one aspect of corporate social responsibility related to the impact of the business on the environment.

Sustainability is the ability of a company to survive in a dynamic competitive environment.

It also refers to a company’s ability to make a profit without sacrificing the resources of its employees, the community, or the environment.

Company success is based on how well the company meets the needs of its stakeholders.

StakeholdersThe various interest groups who have relationships with, and

consequently, whose interests are tied to the organization’s success (e.g., employees, suppliers, customers, shareholders, community and Government and Government Agencies).

The Global ChallengeCompanies are finding that to survive they must

compete in international markets as well as fend off foreign corporations’ attempts to gain ground in one’s country.

To meet these challenges, the businesses must develop global markets, use their practices to improve global competitiveness, and better prepare employees for global assignments.

Every business must be prepared to deal with the global economy.

Global business expansion has been made easier by technology.

The Internet allows data and information to be instantly accessible and sent around the world.

The Technology Challenge

Technology has reshaped the way we play, communicate, plan our lives and where we work.

The Internet has created a new business model e-commerce, in which business transactions and relationships can be conducted electronically.

customers can now read many local newspapers online.They can send online greeting cards. Through the Web we can purchase clothes, flowers, and

airline tickets and even have someone pick up groceries for us.

Companies can connect with job candidates across the world on job portal, and employees can connect with friends, family, and co-workers using social networking site.

Challenges to HRM Practices and Philosophy

Developing human resourcesResponding to the MarketContaining CostsIncreasing ProductivityManaging ChangesRole of HR management is:a) Boosting productivity, b) To be more responsive and innovative and c) To be more integrated.