INTRODUCTION TO SHRM · 2018-08-08 · Objectives of SHRM The major objectives of SHRM are as...
Transcript of INTRODUCTION TO SHRM · 2018-08-08 · Objectives of SHRM The major objectives of SHRM are as...
Dr P.SudarkodiAssociate Professor
Koshys Institute of Management Studies
Bangalore
Topic :- Introduction to SHRM
Subject :- Strategic HRM
Class :- IV Semester MBA
Human resources refer to the people who work in an organization.
Human resource management is concerned with a holisticapproach towards the management of people working in anorganization, who contribute to the achievement of organizationalobjectives.
Strategy is the determination of the long term goals and objectivesof an organization, and the allocation of resources necessary forcarrying out these goals.
It is a unique comprehensive and integrated plan to attain the
objective.
Importance of strategies
Gives direction
Effectiveness
Optimum resource allocation
Program all activities
Defines accountability
Enhance communication
Enhance decision making
Like strategy, HR strategy is concerned with two key elements:
1. Determining the strategic objectives(what goals is the strategy supposed toachieve? For example, the goals may behigh productivity, reduced accidents,etc.)
2. Developing a plan of action (how will thehuman resources be organized andallocated to accomplish the objectives ofthe organization?)
Human resource strategy, therefore,
involves the planned and effective use of
human resources by an organization to
help it gain or maintain an edge over its
competitors.
An organization is said to achieve
competitive advantage when it is able to
gain and maintain edge over its
competitors by differentiating its products
or services from those of its competitors,
thereby increasing its market share.
STRATEGIC HRM: Definition and
Components
Strategic HRM is concerned with the relationshipbetween HRM and strategic management in anorganization.
Strategic human resource management is anapproach which relates to decisions about thenature of employment relationship, recruitment,training, development, performancemanagement, reward and employee relations.
intended to enable the firm to achieve itsgoals’.
An organization uses a combination of
several resources- tangible and intangible- in
the pursuit of its objectives. These resources
can be grouped into three basic types:
1. Physical capital resources- the plant,
equipment, and finances.
2. Human capital resources-the skills, judgement,
and intelligence of the organization’s
employees.
An organization may have huge capitaland most advanced machinery, but if itdoes not have capable, motivated, andhigh performing employees, theorganization is not likely to demonstratesustained levels of high performance.Since all physical and capital resourcesdepend on people for their efficient use,maintenance, and management, thequality of the people of an organization isimportant in attaining competitiveadvantage.
Strategic HRM is based on HRM principles
incorporating the concept of strategy. So if
HRM is a coherent approach to the
management of people, strategic HRM
now implies that what is done on a
planned way that integrates organizational
goals with policies and action sequences.
Objectives of SHRM
The major objectives of SHRM are as follows:
To ensure the availability of a skilled,committed, and highly motivated workforce inthe organization to achieve sustainedcompetitive advantage.
To provide direction to the organization so thatboth the business needs of the organization andthe individual and collective needs of itsworkforce are met. This is achieved bydeveloping and implementing HR practices thatare strategically aligned.
Strategic HRM is most likely to be practiced inorganizations with the following characteristics:
•Strong, visionary and often charismatic leadership from the top.•Well articulated missions and values.•A clear expressed business strategy which had been implemented successfully.•A positive focus on well understood critical success factors•The organization offers a closely related range of products or services to customers.•A cohesive top management team.•A personnel/HR director who plays an active part in discussing corporate/business issues as well as making an effective and corporate/business-oriented contribution on HR matters.
EVOLUTION OF SHRM
The HR function has evolved over time.
In India, the Tata Iron and Steel Company
(TISCO) was one of the first organizations to set
up a personnel department in the year 1947.
The history of the function pre-dates Taylor’s
theory of scientific management and Fayol’s
administrative theory. However, it was only
during the 1930s and 1940s that the function
grew in significance, largely due to war-time
imperatives.
1. PERSONNEL MANAGEMENT
Part of mechanistic organization
Bureaucratic
High centralization
High formalization
Low flexibility
2. HRM (early 1970s)
Part of organic organization
Cross-hierarchical and cross-functional
teams
Decentralized
Low formalization
Flexible
3. SHRM (early 1980s)
Convergence between HRM and business
strategy
Proactive HRM
Concerned with organizational
effectiveness and performance.
EVOLUTION OF SHRM THOUGHT
The success of Japanese firms in the 1980s wasattributed mostly to their Human Resourcepractices and organizational and nationalcultures.
This realization attracted attention to the crucialrole of the HR function in providing sustainablecompetitiveness.
There is growing fusion of personnelmanagement, industrial relations, humanresource development and knowledgemanagement which combinedly constitutes thefield of Strategic Human Resource Management.
Its key characteristics are best summarized by Session (1989):
1. A stress on the integration of personnel policies both with one another and with corporate planning more generally;
2. The focus shifts from management-trade union relations to management- employee relations, from collectivism to individualism; and
3. There is stress on commitment and the exercise of initiative, with managers donning the role of ‘enablers’, coaches and facilitators.
DIFFERENCE BETWEEN TRADITIONAL HRM & SHRM
Basis Traditional
HRM
SHRM
Responsibility
for HR
programmes
Staff personnel in
the HR
department.
Line mangers; all
managers
responsible for
people are HR
managers.
Focus of
activities
Employee
relations-ensuring
employee
motivation and
productivity,
compliance with
laws.
Partnerships with
internal (employees)
and external
(customers,
stakeholders, public
interest groups)
groups.
Role of HR Reactive and
transactional.
Proactive and
transformational,
change leader.
Initiative for
change
Slow,
piecemeal, and
fragmented, not
integrated with
larger issues
Fast, flexible, and
systematic, change
initiatives
implemented in
concert with other
HR systems.
Time
horizon
Short-term Consider various
time frames as
necessary (short,
medium, or long-
term).
Control Bureaucratic
control through
rules,
procedures, and
policies
Organic control
through flexibility,
as few
restrictions on
employee
behavior as
possible.
Job design Focus on
scientific
management
principles-
division of labor,
independence,
and
specialization.
Broad job
design, flexibility,
teams and
groups, and
cross-training
Important
Investments
Capital,
products,
technology, and
finance
People and
their
knowledge,
skills and
abilities.
Perception Cost centre Investment
centre
Steps In SHRM
1. Aligning business and HR needs
2. Developing your HR strategy
3. Organisational performance
4. Organisational design and structure
5. Strategic resourcing
6. Organisation development
7. Compensation and benefits
8. Organisation culture
Approaches of SHRMResource based approach-fit between
resource and opportunity
High performance approach-
Increase pf,share,produ,quality,cus ser
good rec,training,per,benefits
High commitment approach-trust
High involvement approach-partner
Universalistic Approach –hrm-shrm
Configurationally approach-
alignment(ver/hori)(int/ext)
HR Challenges for the indian
companies
Decreasing no. of committed employees.
Finding the right people.
Retention of employee
Competitive compensation and benefit
Recruiting talent becoming more difficult
Knowledge transfer from senior to newer
employees.
Problem in alighting hr strategies' with
business strategy.
Development Hr infrastructure.
Shaping and managing future applicants
Managing hr cost and accounting
Managing retirement problems
HR Strategies to be followed by Indian
company to overcome the challenges they
face.Talent retention
Talent acquisition(RRR)
Competitive work environment
Align individual goal to orn goal
Career development
Succession planning
Competency mapping
Knowledge management
HR Environment
Role of HR Manager
Administrative role
Policy Maker
Advisor
House keeper
Counsellor
Welfare officer
Legal Advisor
Legal factors
Follow the legislature(Act)
Follow constitution
Article-14-equality
-15no discrimination based on caste or religion
-23 restricting forced labour
38(d)-men and women are equal
42-maternity leave
43(a) worker participation in management
Internal envi
Mission, Policies
Orgn culture
Abstract-belief,feeling,values
Material-dresscode,premises,product
Orgn Structure
HR system R&S
T&D
Comm
Per App
WLB
Importance of SHRM
Cost effective engagement of labour
Meet changing needs
Exploitation of emerging opportunities
Provides clear-cut goals,direction and
future focus.
Helps in planning and executing org
change
Optimum utilization of resource
Barriers to SHRM
Absence of long term orientation
Lack of Strategic Reasoning(no experience in SM)
Lack of adequate support from top manager
Resistance from labour union
Fear of failure
Rigid HR Policy
Fear of Attrition
Absence of measurement techniques(HR manager)
Overcoming Barriers of SHRM
Perform through SWOT analysis/PESTLE
Formulate strategy
Gain support
Access barrier
Manage Change
Set up action plan
Implement
Follow up
Role of HR as Strategic in Planning
Act as Business partner-connect people,
tool, and strategy
Set best practices-modern HR
practice/active function
Act as change agent-motivating emp
Innovative ideas-open minded and
creativeness.