Strategic Human Resource Management PDF

HRM 09 - Strategic Human
Resource Management
ligo@macfast.org
HRM 09 - Strategic Human Resource

Management
Module I
Business Strategy and Organizational
Capability-SHRM overview-Linking HR strategy
with Business Strategy-Steps in SHRM - Role of
HR during Organizational Growth, Turn
around,
Retrenchment
-Mergers
and
Acquisitions.
ligo@macfast.org

Management
Module II
Strategic HR Planning and AcquisitionBusiness Strategy and HRP- Job Analysis and
SHRM -HRP Process-HRP and OutsourcingStrategic Recruitment and Selection-IT
enabled acquisition -Alternatives to hiring.
ligo@macfast.org

Management
Module III
Strategic Human Resources Development Corporate Strategy and Career Systems-The
Need for Training and Development-HRM
approaches to Training and DevelopmentLinkage between Business Strategy and
Training -New Developments in Training and
development.
ligo@macfast.org

Management
Module IV
Strategic
Performance
Management,
Compensation
and
Employee
RelationsPerformance Measurement approaches-Effective
performance
Measurement-Compensation
Reward Approaches-Trends in Top level Executive
Compensation-Strategic Linkage of Performance
Management and CompensationManaging Employee Relations: Unions and
Strategic Collective Bargaining.
ligo@macfast.org

Management
Module V
Global Environment of HR-Change &
Diversity-Difference between Global HRM and
Domestic HRM-Cross Cultural contextStrategic HR Issues in Global AssignmentsCompetencies of HR Professional in a SHRM
Scenario.
ligo@macfast.org
Books to refer
Strategic Human Resource Management by
Tanuja Agarwala, Oxford Publications
ligo@macfast.org

Management
Module I
Business Strategy and Organizational
Capability-SHRM overview-Linking HR strategy
with Business Strategy-Steps in SHRM - Role of
HR during Organizational Growth, Turn
around,
Retrenchment
-Mergers
and
Acquisitions.
ligo@macfast.org
Business Strategy
Strategy is the determination of the basic long-term
goals and objectives of an enterprise, and the
adoption of courses of action and the allocation of
resources necessary for carrying out these
goals.(Chandler, 1962)
Business strategy is concerned with the match
between the internal capabilities of the company and
its external environment. (Kay, 1999)
ligo@macfast.org
The Concept of Strategy

The concept of strategy is based on three subsidiary
concepts:
Competitive advantage
Distinctive capabilities
Strategic fit.
ligo@macfast.org
Competitive advantage
The concept of competitive advantage was formulated by
Michael Porter(1985).
Three generic strategies that organizations can use to gain
competitive advantage. These are:
Cost leadership
Differentiation
Focused
A distinction has been made by Barney (1991) between the

competitive advantage that a firm presently enjoys but others
will be able to copy, and sustained competitive advantage,
which competitors cannotligo@macfast.org
imitate.
Porters Classification of Business Strategies ((1985)

Type of Business Characteristics
strategy
Examples
Cost Leadership
The firm increases its efficiency, cut cost so that products Retailers Such as
or services may be priced lower than the industry average Big Bazar
Assumes that a small change in price will significantly
affect customer demand
Customers show greater price sensitivity than brand
loyalty
Differentiation
The firm distinguishes its products / services from its

competitors or at least attempts to make consumers
perceive that there are differences
The firm charges a premium for its products
The firm seeks to develop brand loyalty
Nike, Sony
Focus
The firm recognizes that different segments of market

have different needs and attempts to satisfy one
particular group
Cloths
manufactures
that cater to
kids, milouw,
baby shop etc
ligo@macfast.org
Distinctive capabilities
Distinctive capabilities are those characteristics that
cannot be replicated by competitors, or can only be
imitated with great difficulty.
Reproducible capabilities are those that can be
bought or created by any company with reasonable
management skills, diligence and financial resources.
Most technical capabilities are reproducible.
Distinctive capabilities or core competences describe

what the organization is specially or uniquely capable
of doing.
ligo@macfast.org
Basis of SHRM
Most distinctive capability of all is that
represented by the knowledge, skills,
expertise and commitment of the employees
of the organization.
ligo@macfast.org
Strategic fit
The concept of strategic fit states that to maximize
competitive advantage a firm must match its capabilities and
resources to the opportunities available in the external
environment
External Fit: is a theory that proposes that differences in
business orientation or strategies of organisation call for
different types of people as well as different HR Strategies
Internal Fit: refers to the development and implementation of
several HR practices together so that they are interrelated and
internally consistent with each HR practice, complementing
and reinforcing the other.
ligo@macfast.org
SHRM
Strategic HRM defines the organizations intentions
and plans on how its business goals should be
achieved through people.
Wright and McMahan (1992) defined SHRM as the
pattern of planned human resource deployment and
activities intended to enable the firm to achieve its
goals.
ligo@macfast.org
Four components of SHRM

It focuses on an organisations human resources as the
primary source of competitive advantage of the organisation
The pattern and plan imply that there is a fit between HR
strategy and the organisational business strategy and
between all of the HR activities
The activities highlight the HR programmes, policies and
practices as the means through which the people of the
organisation can be deployed to gain competitive advantage
The people practices and planned pattern are all purposeful ,
that is, directed towards the achievement of the goals of the
organisation.
ligo@macfast.org
Human Resources as assets

Of all the resources available to an
organisation, human resources are considered
as the most important for attaining the
objectives of the organisation.
ligo@macfast.org
Main features of Human Resources

Assets
HRs are not owned by
the firm
Value of HR assets may
decline if
An individual is placed
in job that does not fit
with the individuals
skills etc
Individual performs
below potential due to
reduced motivation
HR Assets
Sum of individuals
knowledge, skills,
experience and
competencies
Can walk over to other

organisations taking with
them their accumulated
knowledge, skills and
experience
Value grows with time as

individual gains
experience
Cannot be duplicated
ligo@macfast.org
Human Resources as Assets- The

VIRO Framework
Four criteria of human resources as a
source of competitive advantage
Value
HR can create
value and hence
become a source
of competitive
advantage by
decreasing cost
and increasing
revenue
Rareness
Develop and exploit
rare characteristics of
human resources
Imitability
HR Characteristics
cannot be easily
imitated by the
competitors
ligo@macfast.org
Organisation
It is important for
the organization
to have its
systems and
practices in place
Objectives of SHRM
To ensure the availability of a skilled , committed and
highly motivated workforce in the organisation to
achieve sustained competitive advantage
To provide direction to the organisation so that both
the business needs of the organisation and the
individual and collective needs of its workforce are
met. This is achieved by developing and
implementing HR practices that are strategically
aligned.
ligo@macfast.org
Differences between SHRM and Traditional HRM

Traditional HRM
SHRM
Responsibility for HR Programmes
Staff personnel in the HR

department
Line managers, all managers

responsible for people are HR
mangers
Focus of HR activities
Employee Relations ensuring

employee motivation and
productivity, compliance with law
Partnership with internal, external

stakeholders
Role of HR
Reactive and transactional
Proactive and transformational
Initiative for Change
Slow, fragmented, not integrated

with larger issues
Fast, flexible, systematic
Time Horizon
Short term
Consider various time frames as

necessary( short , medium, long
term)
Control
Bureaucratic control through rules,

procedures and policies
Organic control through flexibility
Job design
Focus on scientific management

principles, division of labour,
specialization
Broad job design, flexibility
Important Investments
Capital, products, technology and

finance
People and their knowledge, skills

and abilities
Accountability
Cost centre
Investment centre
ligo@macfast.org
HR Strategies
Two basic types of HR strategies are:
Overarching strategies
specific strategies relating to the different aspects of
human resource management.
ligo@macfast.org
Overarching strategies
Overarching strategies describe the general
intentions of the organization about how people
should be managed and developed and what steps
should be taken to ensure that the organization can
attract and retain the people it needs and ensure so
far as possible that employees are committed,
motivated and engaged.
They are likely to be expressed as broad-statements
of aims and purpose
ligo@macfast.org
Overarching strategies- Examples

GlaxoSmithKline:
We want GSK to be a place where the best people do
their best work.
B&Q:(British
multinational DIY and home improvement

retailing company )
Enhance employee commitment and minimize the loss
of B&Qs best people.
Position B&Q as one of the best employers in the UK.
ligo@macfast.org
Specific HR strategies
Specific HR strategies set out what the organization intends to
do in areas such as:
talent management how the organization intends to win the war for
talent
continuous improvement providing for focused and continuous
incremental innovation sustained over a period of time
knowledge management creating, acquiring, capturing, sharing and
using knowledge to enhance learning and performance
resourcing attracting and retaining high-quality people
learning and developing providing an environment in which employees
are encouraged to learn and develop
reward defining what the organization wants to do in the longer term to
develop and implement reward policies, practices and processes that will
further the achievement of its business goals and meet the needs of its
stakeholders
employee relations defining the intentions of the organization about
what needs to be done and what needs to be changed in the ways in
ligo@macfast.org
Specific HR strategies-examples
Diageo:
These are the two broad strands to the Organization and
People Strategy:
Reward and recognition: use recognition and reward
programmes to stimulate outstanding team and
individual performance contributions.
Talent management: drive the attraction, retention and
professional growth of a deep pool of diverse, talented
employees.
ligo@macfast.org
Steps in SHRM
SHRM involves three steps:
Forecasting
Forecasting is the attempt to predict future events that
will impact the organization
Strategy formulation
Involves the development of initiatives that are aligned
with the organizations, mission statement
Implementation
Putting the HR plan into action with HR programs that
support the organization's overall strategy.
ligo@macfast.org
Strategic HRM model
ligo@macfast.org
Strategic HRM
Strategic HRM is a concept that integrates traditional human
resource management activities within a firms overall
strategy planning and implementation.
Focuses on the linking of all HR activities with the
organisations strategic objectives
ligo@macfast.org
Strategies at different levels
ligo@macfast.org
Linking Business strategy and HR

strategy
Business strategy
Cost leadership strategy
Differentiation strategy
HR Strategy
Explicit job Descriptions
Hiring employees with required qualification skills
Job Specific training
Paying employees based on job held
Performance appraisal as a controlling tool to weed out
poor performers
Emphasize innovation, flexibility
External recruitment at all levels
Pay based on performance
Performance appraisal as a tool for development
Focus strategy
Hiring employees belonging to the target market
(relies on low cost &
Extensive training
differentiation strategy to High employee participation.
cater to a narrow
segment)
ligo@macfast.org
Miles and Snows Classification of Business

strategy and HR Strategy
Dominant Culture of the organization
(Business strategy)
HR Strategy
Defenders
Seeks stability
Finding change threatening
Favor strategies which encourage continuity and
security
Centralized control
Formal hierarchy
Bureaucratic approach
Build Human resources
Likely to emphasize training programmes
and internal promotions
Prospectors
Respond well to change
Broad range of product and services
Uneven growth
Product based structure
Creative and flexible management style

Little opportunity for long term HR
planning
Acquire Human resources
Likely to emphasize recruitment, selection,
and performance based compensation
Analyzers
Operates in 2 types of product/market domainsstable & changing
Low levels of monitoring and coordination

Buy as well as make key human resources
Emphasize HR planning
ligo@macfast.org
Linking HR with Corporate Objectives

Discuss with the various other departments like
sales/ production/ distribution/accounting/ IT etc
about their requirements .
For manpower.
Recruitments
Replacements
Training etc
ligo@macfast.org
Linking HR with Corporate Objectives
Once you get their departmental requirements, HRM develops

-recruitment /selection plans
-training plans / programs
-rewards plans / programs
-development plans / programs
-payroll plans / programs
- performance management plans
Which is converted into company
-HR policies
-HR procedures
-HR practices.
-HR plans etc.
ligo@macfast.org
Example of ALIGNING HR plans with CORPORATE

OBJECTIVE.
Corporate Strategy: Expand into the global market.

Corporate Objective:
Phase 1: enter the European market.

Obtain 2% of the market in the first 18 months.
ligo@macfast.org
Marketing Objective: Gain 2 % market share in the first 18

months.
Marketing Strategy: Develop new products. Develop product
promotions, with multilingual media plan.
Marketing Needs:
Key employees will need to be able to communicate in
a language of Europe.
product managers need orientation in European
culture.
HR contribution:
Language training.
European culture orientation
ligo@macfast.org
Linking HR with Corporate Strategy

Now as a HR manager, you know
-what the corporate objectives/ strategies are.
-What the marketing / sales objectives / strategies are
-what the marketing /sales needs are
-what the HR contribution should be
and also what/ how your HR plans impact the business
results.
ligo@macfast.org
Role of HR during Organizational Growth,

Turn around, Retrenchment -Mergers and
Acquisitions.
ligo@macfast.org
Role of HR during Organizational

Growth
Force a set of clear choices- connect people priorities
with business priorities
Guide the allocation of people investments to the
most important activities
Energize the people with a sense of purpose
ligo@macfast.org
HR Practices Corresponding to
stages of Organizations Life cycle
Life Cycle Stages
HR practices
Start-up
Recruitment of highly motivated and committed employees

Competitive pay
No unions
Growth
More sophisticated recruitment and selection

Training and development
Performance management processes
Developing stable employee relations
Maturity
Decline
Attention to the control of labour costs

Focus on increasing productivity
Emphasis on rationalization of workforce and downsizing
Trade unions have a marginalized role
Retraining and career consulting services
ligo@macfast.org
Turnaround strategy
Turnaround strategy means to convert, change
or transform a loss-making company into a
profit-making company.
ligo@macfast.org
Role of HR during Organizational Turn around

HR need to understand the turnaround process thoroughly and get
a perspective of the top managements objectives and agenda.
The change agents have to be identified
The ones resistant to change or blockers to turnaround strategy
have to be kept on the vigil.
Mechanisms have to be devised to weed out extra manpower, and
policies have to be defined with respect to layoffs and
compensation.
Performance problems have to be identified
Managing the talent and developing individual development plan
for high performers have to be in place
Coaching and counseling also play pivotal role.
Decision-making and partnership building take on as the primal
training and development input
ligo@macfast.org
Retrenchment
Retrenchment is a corporate level strategy that aims
to reduce the size or diversity of an organization.
This strategy is often used to cut down expenses with
the goal of becoming more financially stable
business.
Typically the strategy involves withdrawing from
certain markets or the discontinuation of selling
certain products or services in order to make a
beneficial turn around.
ligo@macfast.org
Role of HR during Retrenchment

Ensure smooth exit for the departing
employees
Retaining Key employees
Providing outplacement services
Counselling to employees
ligo@macfast.org
The Role of Human Resources in

Mergers & Acquisitions
Deal with Company Culture checking the cultural compatibility before
merger and helping the organisation to instill a
similar culture throughout the organisation
after merger
Managing Employee Benefits Programs
Managing the Employee Concerns
Managing the Changing Roles and Structure
ligo@macfast.org
Environment Trends and Human

Resource Challenges
Globalization and
Increased competition
Managing Global workforce

Ensuring availability of employees who have the skills for
global assignment
Focusing Increasingly on employee productivity to ensure
competitiveness
Ensuring legal compliance when conducting business
abroad
Mergers and
acquisition
Managing Employee insecurity during mergers

Ensuring continued employee productivity
Developing HR initiatives to manage employee morale
Downsizing
Managing organisational relationship with survivors

Managing morale and commitment of survivors
Providing outplacement services or relocation for
employees who lose jobs
Providing personal and family counselling to employees
who lose their jobs
ligo@macfast.org

Resource Management
Module-II
ligo@macfast.org

Management
Module II
Strategic HR Planning and AcquisitionBusiness Strategy and HRP- Job Analysis and
SHRM -HRP Process-HRP and OutsourcingStrategic Recruitment and Selection-IT
enabled acquisition -Alternatives to hiring.
ligo@macfast.org
HRP: An overview
HRP is the process of analyzing and identifying the need for and
availability of human resources so that the organisation can meet its
objectives
It seeks answers to questions such as
What are the implications of the proposed strategic plans with
respect to human resources?
What are the implications of proposed strategic plan for staffing,
training, and development and management succession?
How will a projected shortfall in the supply of skilled employee
impact various HR practices of the firm?
What are the implications for attracting , retaining, motivating and
rewarding workers with skills that are short in supply?
ligo@macfast.org
HRP: An overview
HRP is a proactive process.
It anticipates changes in the industry,
marketplace,
economy,
society
and
technology to ensure that the organisation is
well prepared to meet these changes.
ligo@macfast.org
The transition from Reactive HRP to

proactive HRP
Traditional HRP
Reactive
Strategic business
decisions taken in
isolation without
considering their HR
implications
Contemporary HRP
Proactive
Integration of
business planning and
HRP. All strategic
decisions consider HR
issues
Changes in business,
economic, social, legal
and technological
environment.
ligo@macfast.org
Business strategy and HRP

Business Strategy
(Classification by porter)
HR Strategy
HRP Activities
Cost leadership
Cost control
Stable business
environment
Efficiency and quality
Job and employee

specializations
Employee efficiency
Long HR planning horizon
Internal Promotions
Emphasis on training
Hiring and training for
specific capabilities
Differentiation
Long term focus
Growth
innovation
Decentralization
Shorter HR planning
horizon
Hire the HR capabilities
required
Flexible jobs and
employees
External staffing
Hire and train for board
competencies
ligo@macfast.org
Relationship between Business strategy of a firm and HRP

Business strategy
(Classification by miles and Snow)
HR strategy
HRP
Defender
Bureaucratic Approach
Finds change threatening
Planned and regularly
Favors strategies which encourage maintained policies to
continuity and security
provide for lean HR
Build
human
resources
Likely to emphasis
training programmes
and internal promotion
Prospector
Creative and flexible
Thrives on change
management style
Favors strategies of product and/ or Have high quality human
market development
resources
Emphasis redeployment
and flexibility of HR
Acquire
human
resources
Likely to emphasize
recruitment, selection,
and
performance
based compensation
Analyzer
Emphasis HR planning
Seeks to match new ventures with the
present business setup
Launches ventures new to the firm
but not new to the market
Buy as well as make

human resources
ligo@macfast.org
Perspective of HRP
Macro HRP
Assessing and
forecasting the demands
for and availability of
skills at the national or
at the global level
HRP
The process of analyzing
and identifying the need
for and availability of
human resources for a
firm , an industry, a
country or at a global
level.
Micro HRP
Process of forecasting
demand for and supply
of human resources for a
specific organisation
ligo@macfast.org
Objectives of HRP
To prevent overstaffing and understaffing
To ensure employee availability
To ensure that the organisation is responsive to the
environment
To provide direction to all HR activities
ligo@macfast.org
HRP Process
ligo@macfast.org
Human Resources Planning

Key Steps Involved
Forecasting
demand
Analyzing
supply
ligo@macfast.org
Planning and implementing

programs to balance
supply and demand
Human Resource Planning
ligo@macfast.org
HRP Process
Environmental Scanning
Organisational Objectives
HR Demand Forecast
HR Supply Forecast
HR Programming
HRP Implementation
Control & Evaluation
Surplus - Restricted Hiring,

Lay Off, VRS, Reduced Hours
Shortage - Recruitment &

Selection
ligo@macfast.org
Environmental scanning
It includes monitoring of the external forces
influencing the organization
It includes
Economic factors
Technological changes
Demographic changes
Political and legislative issues
ligo@macfast.org
Organizational Objectives & Policies

HR plans need to be based on organizational objectives.
Specific requirements in terms of number and characteristics
of employees should be derived from the organizational
objectives
ligo@macfast.org
Employee Demand Forecast
ligo@macfast.org
Demand Forecasting
It is the process of estimating the quantity and quality of
people required to meet future needs of the organization.
Forecasting techniques
Trend Analysis
Managerial judgment
Delphi Technique
Ratio Analysis
Computerized forecasting
Scatter plot
ligo@macfast.org
Trend Analysis
Studying a firms employment levels over a period of years to
predict future needs.
Example
2001-02production of units
2001-02
no. of workers
Ratio
2003-04 estimated production
No. of workers required
:5000
:100
:100:5000
:8000
:8000*100/5000=160
If the supervisors have a span of 20 workers, 8 supervisors are also

needed in 2003-04
ligo@macfast.org
Ratio Analysis
Making forecast based on the ratio between some casual
factors like sales volume and the number of employees
required like the sales people.
Trend analysis and ratio analysis assume that the productivity
of the employees remains the same.
ligo@macfast.org
Computerized Forecasting
A computer program will be developed to predict the future
requirements based on historical data.
The computer program/ software then can be used as a
powerful simulation tool to project the future requirements.
ligo@macfast.org
Managerial Judgment
Managers sit together, discuss and arrive at a figure which
could be the future demand of labour
It can either top down or bottom up approach
ligo@macfast.org
Scatter plot
Scatter plot show the relationship between two variables by displaying
data points on a two-dimensional graph.
Example: relationship between the number of employees and sales .
75
Sales
50
10
10 20 30 40 50 60
ligo@macfast.org
no of employees
Delphi Technique
Its systematic, interactive forecasting method which relies on
a panel of independent experts
Selected experts answers questionnaires in two or more
rounds.
Facilitator provides the anonymous summary of experts from
the previous round as well as reasons for their judgments
The participants are encouraged to revise their earlier
answers in light of replies of other members of group.
After some rounds the group will converge to a correct
number.
There is an absence of interaction among the experts.
ligo@macfast.org
Employee Supply Forecasting
ligo@macfast.org
Supply Analysis
Process of estimating future quantity and quality of
manpower available internally & externally to an
Organisation.
Two sources of supply are
Internal
External
ligo@macfast.org
Forecasting Supply of Employees: Internal Labor Supply
Staffing Tables
Markov Analysis
Skill Inventories
Replacement Charts
Succession Planning
ligo@macfast.org
Forecasting Internal Labor Supply

Staffing Tables
Graphic representations of all organizational jobs, along
with the numbers of employees currently occupying those
jobs and future (monthly or yearly) employment
requirements.
Markov Analysis
A method for tracking the pattern of employee movements
through various jobs.
ligo@macfast.org
Hypothetical Markov Analysis for a Retail Company
ligo@macfast.org
Internal Supply Forecasting Tools
Skill Inventories
Files of personnel education, experience, interests,
skills, etc., that allow managers to quickly match job
openings with employee backgrounds.
ligo@macfast.org
Existing Human Resources

Capability / Skills Inventory using HR Information System
G e n e r a l In fo rm a tio n Nam e:
P re s e n t A d d re s s :
S e x:
DOB:
M a r it a l
S ta tu s :
P e rm a n e n t A d d re s s :
Q u a l i f i c a t io n D e g r e e / D ip lo m a
I n s t itu t io n
D e p a r tm e n t :
D e s ig n a t io n :
D O J:
S a la r y :
G ra d e :
C la s s
Year of Pass
E x p e r i e n c e / S k il l s O r g a n is a t io n
J o b T it le /
B r ie f
S k ill/
A p p o in t m e n t
R e s p o n s ib ilitie s S p e c ia lis a t io n
O u ts ta n d in g A c h ie v e m e n t / A d d itio n a l In fo r m a tio n A w a rd s
P e r fo r m a n c e
D is c ip lin a r y A c tio n
P r o m o tio n s
M e r it R a t in g
A b s e n t e e is m
A c h ie v e m e n t s
C a r e e r P la n s :
ligo@macfast.org
Internal Supply Forecasting Tools
Replacement Charts
Listings of current jobholders and persons who
are potential replacements if an opening
occurs.
ligo@macfast.org
An Executive Replacement Chart
ligo@macfast.org
Replacement Chart Example
ligo@macfast.org
HR Programming
Balancing Demand and Supply
Vacancies filled in by the right employee at the right

time
ligo@macfast.org
HR Plan Implementation
Recruitment, Selection & Placement

Training & Development
Retraining & Redeployment
Retention Plan
Downsizing Plan
ligo@macfast.org
Control & Evaluation
Are Budgets, Targets & Standards met?

Responsibilities for Implementation & Control
Reports for Monitoring HR Plan
ligo@macfast.org
Strategies for Managing Shortages
Recruit new permanent employees

Offer incentive to postpone retirement
Rehire retirees part-time
Attempt to reduce turnover
Work current staffs overtime
Subcontract work to another company
Hire temporary employees
Redesign job processes so that fewer employees are
needed
ligo@macfast.org
Strategies for managing Surplus
Hiring freeze
Do not replace those who leave
Offer VRS / Early Retirement, Golden Handshake
Reduce work hours
Pay cuts
Reduce outsourced work
Redeployment /transfer of employees to sister organizations or other
companies.
Work sharing
Layoff
Leave of absence without pay
Sabbaticals
ligo@macfast.org
Job Analysis and SHRM
ligo@macfast.org
Job Analysis
Job analysis is a formal and detailed examination of jobs.
Its a systematic investigation of the tasks, duties and
responsibilities necessary to do a job.
ligo@macfast.org
Uses of job analysis
Human resource planning

Recruitment
Selection
Placement and orientation
Training
Counseling
Employee safety
Performance appraisal
Job design and redesign
Job evaluation
ligo@macfast.org
The process of job Analysis
Organizational analysis.
Selection of representative positions to be analyzed.
Collection of job analysis data.
Preparation of job description.
Preparation of job specification.
ligo@macfast.org
Methods of Collecting Job Analysis Data
Job performance
Personal observation
Critical incidents
Interview
Panel of experts
Diary method
Questionnaire method
ligo@macfast.org
Methods of Job Analysis

Observation Method
Analyst observes incumbent
Directly
Videotape
Useful when job is fairly routine
Workers may not perform up to expectations
ligo@macfast.org

Interview Method
Individual
workers are interviewed individually
The answers are consolidated into a single job
analysis
Group
Employees are interviewed simultaneously
Group conflict may cause this method to be
ineffective
ligo@macfast.org

Questionnaires
Employees answer questions about the jobs
tasks and responsibilities
Each question is answered using a scale that
rates the importance of each task
ligo@macfast.org
Typical Areas Covered in a

Job Analysis Questionnaire
ligo@macfast.org

Diary Method
Employees record information of their daily tasks
into diaries
Record the time it takes to complete tasks
Must be over a period of several weeks or months
ligo@macfast.org

Critical Incident Technique (CIT)
Takes past incidents of good and bad behavior
Identifies the effective and ineffective behaviour
from the part of the employee
ligo@macfast.org
Job description
A JD is a written statement of what the job holder does , how
its done, under what conditions it is done .
Contents
Job title
Location
Job summary
Job Duties
Job activities
Roles & Responsibilities
Supervision given or received
Working conditions
Equipment used
ligo@macfast.org
Hazards
Specimen of job description
Title :compensation manager

Code :HR/2310
Department: Human Resource Department
Summary:
responsible for the design and administration of employee compensation
programmes
Duties :
conduct job analysis

Prepare job description for current and projected positions
Act as a chairman for job evaluation committee
Conduct periodic salary survey
Develop and administer performance appraisal programmes
Working conditions: normal, eight hours per day, five days a week
Report to: director, human resource
ligo@macfast.org
Job Specification
JS summarizes the human characteristics needed for
satisfactory job completion.
The personal attributes that are described through job
specification can be classified in to
Essential attribute (KSA a person must possess)
Desirable attributes (qualification a person ought to
possesses)
Contra-indicators (attributes that will become a handicap
to successful job performance)
ligo@macfast.org
Job specification of compensation manager

Education:
MBA with specialization in HRM/ PG Diploma in HRM/MA in Industrial

Psychology
A degree or diploma in Labour laws is desirable
Experience:
knowledge of compensation practices in a large manufacturing

company
Skills, knowledge, abilities:
skill in writing job description, conducting job analysis
interviews,performing group presentations.
Ability to plan meetings, to plan and prioritise work
Age:
preferably below 30 years
ligo@macfast.org
Job Analysis Input for various HR

Activities
HRM Activity
Input Provided by Job Analysis
HR Planning
Number and type of employees that the firm will need in order to
accomplish goals
Recruitment
and selection
The KSAs that the potential employee should be tested for
Compensation
Compensation for a job deponds on skills, education, knowledge etc

required to perform a job
Performance
Appraisal
To compar each employees performance against standards

established in job analysis
Training &
Development
To determine the nature of training to be imparted to the employees
Safety and
Health
To identify the possible job hazards and working conditions

associated with a job
Industrial
Relations
Specific job descriptions reduce grievances by clearly specifying the

tasks covered under a job
ligo@macfast.org
HR Outsourcing
What is Outsourcing?
Outsourcing is a strategic decision to give a
task or activity to an independent contractor
who determines how best to do the task or
activity.
The firm and the independent contractor
become partners and may establish a longterm relationship.
ligo@macfast.org
Pros and cons

Pros
Cost and savings
Financial and operational
flexibility
Access to quality, expertise
and better management
skills
Cons
Need greater coordination
with agencies
Reduces organizational
learning by depleting its skill
base
Loss of control
Adverse affects on morale
and motivation
Job insecurity
ligo@macfast.org
Which functions/sub-systems
to outsource
Recruitment preliminary screening and short listing
Training Trg. Needs identification, content development, delivery, logistics, third

party evaluation
Performance management - on line automation
Compensation pay roll and compensation surveys
Safety -- inspections
welfare transport, security, catering
Labour contract contract employees doing the job which was earlier done by
regular employees
Which function not to outsource

Decision making in each of the sub functions
Leading change and transforming the organization
ligo@macfast.org
Outsourcing Process
It consists of 4 stages
Analysis and evaluation

Contracting and negotiation
Initiation and transition
Stabilization and maintenance of outsourced
relationship
ligo@macfast.org
Model of HRP during Outsourcing

Stage 1
Stage 2
Stage 3
Stages in the
outsourcing
process
Analysis and
evaluation
Contracting
transitioning
and negotiating
Stabilization
and
improvement
Best practices
for HRP
Retain HR
Talent
Do not
outsource HRP
Consider
alternatives to
outsourcing
Evaluate
vendor
organisation
Design
the
internal
organsation to
manage
the
vendor
by
developing a
dedicated
vendor
management
ligo@macfast.org
team.
Build in
continuous
improvement
and flexibility
at the vendor
Employ a
phased
approach to
transition
Build a
transition team
Stage 4
Strategic Recruitment and

selection
ligo@macfast.org
The staffing Process

Organisational Goals
and objectives
Human Resource
Planning
Alternatives to
recruitment
Recruitment
Internal Sources
External Sources
Internal methods
External methods
Application pool
Initial screening
Selection methods
Rejected Candidates
ligo@macfast.org
Selected candidates
Job offer
Factors influencing staffing

External
Labour market conditions
Government regulations and legal considerations
Internal influences on staffing
Organisational policies and practices
Organisational image
Job attractiveness
ligo@macfast.org
Sources of Recruitment
Recruitment is a process of searching for prospective
employees and stimulating them to apply for jobs
The methods are
Internal sources
External sources
ligo@macfast.org
Sources of Recruitment
Internal source
Organisational database
Promotion
Departmental exam
Transfer
Former employees
Internal advertisement/job
posting
Employee referrals
Previous applications
External sources
ligo@macfast.org
Advertisement in radio & TV

Professional and trade association
Employment agency/
consultants/head hunters
Employment exchanges
Campus recruitment
News paper advertisement
Internet advertisement
Walk in, write-ins
Competitors
E- recruiting / web recruitment
Displaced persons
Casual callers
Labour contractors
Gate recruitment
Process of selection
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Reception
Preliminary/ screening Interview
Application Blank
Selection Tests
Selection Interviews
Checking of References
Selection decision
Physical Examination
Job offer
Employment contract
Evaluation
ligo@macfast.org
ligo@macfast.org
Strategic recruitment & selection

Recruitment and selection facilitate the achievement of the
firms business strategy.
Shift in central focus of recruitment :Person-job fit to person
organisation- fit
Increased use of sophisticated selection techniques and
greater involvement of line managers in the process of
selection
ligo@macfast.org
Linkage between business strategy and

SR&S Effectiveness
Business
strategy
Defender
Hiring
managerial
talent
Promoted
within
Prospector
Analyzer
from Often acquired Drawn

from
internal
from outside
promotions,
external
recruitment, mergers and
acquisition.
Staffing process Individuals are hired Experienced

Employees are hired at both
at lower level and employees are lower and higher levels
provide on the job hired
training
Recruitment
methods
Internal sources
External
sources
Mixture of sources
Selection
methods
Assess potential and emphasize on Use a combination of methods

Promotability
work history
Selection
decision
Greater corporate Greater

control over hiring
influence
ligo@macfast.org
hiring
line A mix of two

in
Linkage between business strategy and SR&S

Effectiveness
Business
strategy
Defender
Prospector
Analyzer
Recruitment
Messages
Convey information about

centralization of control,
emphasis
on
internal
promotion, high investment
in employee development
Indicate dynamism in
job, emphasis on
technological
and
marketing innovation
Message similar to
defenders in stable
areas and more like
prospectors in change
oriented sectors
Focus
on
achievements,
individuals with
tolerance
ambiguity
Focus on both past

achievements
and
future
Clearly
articulate
selection criteria
potential
Criteria
Hiring
for Emphasize relatively narrow

range of specialized skills
Clearly articulate selection
criteria
past
seek
high
for
Selection
methods
Assess
potential
Promotability
and emphasize on work Use a combination of

history
methods
Selection
decision
Greater corporate control Greater

line A mix of two
over hiring
influence in hiring
ligo@macfast.org
E- recruitment
Methods
Advantages
Disadvantages
Job Boards/ job Useful for generating applicant Many individuals accessing sites
placement
response
are only job lookers not serious
websites
applicants
Professional career Targets applicants interest in
websites
specific industry or profession
Reduces number of less
qualified applicants
Saves recruiters time and effort
Since professionals other than

the target applicants do not
normally access the website, they
remain
unaware
of
the
employment development in
these professions
More effective and efficient

Can be put up inexpensively
compared to print
Firm may be able to attract
individuals
otherwise
inaccessible
Attracts the attention of
candidates worldwide
Many employer websites are

difficult to navigate since they do
not
present
career
and
employment information.
May lead to negative image of
the organisation if not updated
regularly.
Company websites
ligo@macfast.org
Advantages and disadvantages of

internet recruiting
Internet recruitment
Advantages
Disadvantages
Organisational
perspective
Cost effective compared to

newspaper advertising, search
firms etc
Generates more applicant resumes
Responses start coming in the day
the advertisement is posted on the
internet
Saves time, as recruiters can
respond to qualified candidates
more quickly.
May get applications from more

unqualified candidates
May create additional work for
HR recruiters
Employee
perspective
Allows individuals quick access to

information on various job
possibilities
Saves applicants time as they can
respond quickly to job
postings
ligo@macfast.org
Individuals from disadvantaged

sections of society may have
limited access to internet
Alternatives to hiring permanent

employees
Overtime
Independent contractors/ consultants
Outsourcing
Employee leasing/ staff sourcing
Temporary staffing services
Rehiring former employees
Hiring from non- tradition labour pool eg:
housewives, retired employees, ex service
men etc
ligo@macfast.org

Resource Management
Module-III
ligo@macfast.org
120

Management
Module III
Strategic Human Resources Development Corporate Strategy and Career Systems-The
Need for Training and Development-HRM
approaches to Training and DevelopmentLinkage between Business Strategy and
Training -New Developments in Training and
development.
ligo@macfast.org
121
Corporate Strategy and Career

Systems
ligo@macfast.org
122
Changing Notions of Career

Success
Contemporary
Notion
Traditional Notion
Using an individuals full potential

Facing challenges
Greater responsibility
Increased autonomy
Meaningful work
Vertical advancement in
hierarchy or increasing
salary levels
ligo@macfast.org
123
Career Planning, Career Development and

Career Management
Career Planning
Personalized ongoing process
Individual chooses
occupations, organizations, and
jobs
Individual establishes career
goals and identifies means for
achieving these goals
Career Development
Activities and processes
undertaken by the
organisation to help
individuals attain their
career objectives
Career
Career management
Life long on going process of preparing,
implementing and monitoring career
plans undertaken by the individual in
partnership with the organisation
ligo@macfast.org
124
Organisational Career
management practices
Performance appraisal as a basis for career planning

Assessment centre
Peer appraisal
Career counseling by direct supervisor
Career counseling by HR department
Formal mentoring
Career workshops
Written career planning
Retirement planning programmes
Books and or pamphlets on career issues
Postings regarding internal job openings
Formal education as part of career development
Lateral moves to create cross functional experience.
ligo@macfast.org
125
Career Stages
ligo@macfast.org
126
Objectives of career planning

Methods/ Practices
Career Planning
Methods/ Practices
objectives
Communication
To provide career related information to employees
Counselling
To help employees with their personal assessment of interests,

aptitudes and capabilities
Career planning
workshops
To help employees set personal career goals and plans for

development
Self development
materials
Providing employees with materials aimed at career planning
Assessment
Programmes
To identify specific developmental needs required for

achieving employees career goals
ligo@macfast.org
127
Career development Interventions for each career stage

Career stages
Career development needs
Establishment Challenging initial jobs

stage
Variety in job activities
Opportunities for development of relevant
skills
Feedback on performance and potential
Career development
interventions
Realistic job preview
Job pathing
Performance feedback and
coaching
Advancement
stage
Opportunity to do challenging work

Exposure and visibility on the firm
Opportunity to demonstrate potential
Dual
Dual career concerns
Challenging and visible

assignments
Mentoring
Assessment
Assessment centre
Dual career accommodation
Maintenance
stage
Leveling off and maintaining career

Redefine role in company
Opportunity to develop others
Autonomy
Developmental training
Assigning mentoring jobs
Rotation to jobs requiring
new skills
Mid career counselling
Withdrawal
stage
Adjust to role of retired person

Continue to use experience to help others
Establish a meaningful life outside the
organisation
ligo@macfast.org
Consultative roles
Phased retirement
Retirement counselling
128
Career management systems
ligo@macfast.org
129
Viewpoints in career management

Career management
Systems
Individual centered
Focus on individual's
career rather than on
organisational needs
Organisation- centered
Focus on ensuring the
fulfillment of organisational
goals
Individual career
management strategies
Self assessment
Assessment of job
opportunities
Formulating career goals
Matching individuals to
jobs
Seeking opportunities
for professional growth
Organizational career
management programmes
Career planning workshops
Assessment centers
Providing mentors to individuals
Developing career paths for
employees
Establishing realistic career
plans with employees
ligo@macfast.org
130
Individual centered career

management system
Identify the individuals career goals

Assessing the individuals personal abilities and interests
Planning the individual's life and work goals
Assessing alternative career paths inside and outside the
organization
Drawing a career path for the individual
Noting changes in interests and goals as career and life stages
changes.
ligo@macfast.org
131
Organisation centered career

management system
Identify organisational objectives

Determining future manpower staffing needs of the firm
Identifying available career paths within the firm
Communicating with employees about opportunities
Assessing employees potential as well as training needs
Matching organisational needs with individual needs
ligo@macfast.org
132
Designing and implementation of

Career management systems
Identify career planning needs and develop a
strategy
Develop necessary resources
Introduction of a pilot programme
Introduction of the full programme
Involvement of HR and line mangers
Top management support
Alignment with culture
ligo@macfast.org
133
Career management techniques for

specific HR issues
HR issues
Career Management techniques
How to reduce turnover among recently

hired employees
Challenging first job

Job enrichment
Assigning new employee to demanding
bosses
How to develop high potential

candidates for management positions
Assessment centers
Job pathing
How to provide promotion

opportunities in a stable or contracting
organisation
Cross functional moves

Fall back positions
How to reward and retain technical and

professional employees
Dual career paths
How to motivate plateaued employees
Lateral movements
Skill based pay systems
Seminars and university courses
Rotation
ligo@macfast.org
134
Training and Development
ligo@macfast.org
135
Training and development: A comparison

Training
Development
Process designed to bring about a

relatively
permanent
change
in
employees skills, knowledge, attitudes, or
behaviour in order to improve their
performance on currently held job
Process designed to impart learning

experiences in order to help employees
acquire skills and competencies for future
responsibilities
Imparts technical skills
Imparts managerial skills
Focus on small number of technical skills Focus on board range of skills applicable
specific to current job
more generally across different situations
Directed towards
personnel
non
Present focused , short run
management Directed towards managerial personnel

Future- focused, long run
Activity designed to manage an existing Activity designed to be a continuous

performance problem
process
ligo@macfast.org
136
Need for Training and Development
Performance improvement
Skill updating
Solving organisational problems
New employee orientation
Preparation for promotion
Opportunities for personal growth
ligo@macfast.org
137
Benefits of Training and Development

Benefits of Training and
Development
Organisational Benefits
Increased efficiency and
profitability.
Reduced
employee
turnover (voluntary).
Reduced
involuntary
turnover
(terminations
due to skill deficiency).
Enhanced productivity.
Makes employees more
accountable as they gain
more knowledge and
skills.
Customer Benefits
Better quality of products
and services
ligo@macfast.org
Employee benefits
Improved performance
Increase in employability
( skilled workers seen as
more attractive by
competitors.
Enhanced motivation.
Jobs becomes more
rewarding.
Opportunity for upward
mobility in the firm.
138
Emergence of Training as a strategic

Organisational Activity: Reasons
Re-structuring
Employee
mobility
Advances in
technology
Reasons
T& D
significance
Workforce
diversity
Work
redesign
Mergers
and
acquisition
s
ligo@macfast.org
139
HRM Approaches and Training and

development in organisations
HRM Approaches
T & D in organisations
Human Capital Approach
Training is an investment in human

resources that gives returns in the form of
increased productivity.
Strategic Framework
Training results in the development of

those skills and competencies in
employees that are unique and superior
to competitors, leading to competitive
advantage.
Dependency
relationship
between
training and business strategy of the firm.
Contingent Approach
ligo@macfast.org
140
Linkage between business strategy and staffing

and training practices
Type of business
strategy
Characteristics
HRM Requirements
Staffing and Training Practices
Defender
Compete on
the basis of low
price and high
quality; stable
environment.
Limited product line.

Skills in production efficiency,
process engineering and cost
control.
Long term perspective.
Functional structure.
Division of labour.
Skill specialization.
Emphasis on
production and
finance functions.
Build skills.
Skill type
Staff and train for narrow skills.
Staff and train for production
and finance functions.
Skill source
Internal staffing.
High amount of training.
In-house training.
Prospector
Compete on
the basis of
new markets
and new
products;
unstable
environment.
Diverse product lines.

Skills in product research and
development and product
engineering.
Rapid growth.
Decentralized structure.
Product or geographically
divisionalized structure.
Skill flexibility.
Emphasis on
marketing/ sales
and on research
and development.
Buy skills.
Skill type
Staff and training for broad skill.
Staff and train for marketing
research and development.
Skill source
External staffing.
Low amount of training.
External training when required.
ligo@macfast.org
141
The Training process
ligo@macfast.org
142
Organisational goals and

objectives
Phase 1
Training need Assessment
Gap between Skills needed and

available
Need for T& D

Phase 2
Program design and

development
Phase 3
Implementation
Phase4
Evaluation
ligo@macfast.org
143
Sources of need analysis data

Types of analyses in training need Sources of Data
analysis
Organisational analysis ( where training Strategic initiatives of the organisation
emphasis should be placed)
Technological change
An examination of the environment , Data about turnover, accidents etc
strategies, organisational goals, resources
of the organisation, etc to determine
where the training emphasis should be
placed in the organisation
Job descriptions
Job analysis (what should be taught)
Job descriptions and specifications to Job specifications
determine the content of training
programme to ensure that the trainee
performs well on the job
Attitude survey
Person analysis (who needs training )
To determine which employees need Questionnaires
training and which do not
Exit interviews
Employee performance document
ligo@macfast.org
144
Principles of Learning
Goal Setting
Goals and objectives of training are clearly communicated to

the trainees
Meaningful presentation
Materials should be meaningfully arranged and subsequent

information build up on previous information
Practice and repetition
Trainees should be given an opportunity to practice what

have been learned
Feedback and reinforcement
Knowledge about how well one has performed is motivating.

Verbal encouragement or other extrinsic rewards reinforce
desired behaviour
Whole Vs part learning
Complex jobs should be broken down in to parts
Massed Vs spaced learning
Practicing a new skill with rest pauses in between ( spaced ) is

more effective than massed practice
Individual differences
People learn at different rates and in different styles
Transfer of learning
Transfer occurs when trainees use on their job what they

have learned in training.
ligo@macfast.org
145
Classifications of training and

Development Methods
T& D methods
On- the job

Methods
Training methods
Apprenticeship
Job instruction
training
Off- the-job methods
Training Methods
Class- room
Development Method
instruction
Coaching/understudy
Lectures
Job rotation
Seminars and
Special/ committee
conferences
assignments
Programmed
internship
instruction
ligo@macfast.org
Audio visuals
Development methods
Simulation
Case study
Role play
Management games
In basket
Behaviour modeling
Outdoor oriented
programmes 146
Stages of Training Evaluation

Pre training evaluation
Training Evaluation
Intermediate evaluation
Post training evaluation
ligo@macfast.org
147
Donald Kirkpatricks Evaluation Model

Level
Questions
1.Reacton
Were the participants pleased with the programme?
2.Learning
What did the participants learn in the programme?
3.Behaviour
Did the participants change their behaviour based on

what they have learned?
4.Results
Did the change in the behaviour positively affect the

organisation?
ligo@macfast.org
148
Types of evaluation criteria

Evaluation
criteria
Data Collection methods
Information Obtained
Reactions
Administering questionnaires at the end

of each session or day or at the end of the
programme, popularly known as course
evaluation form
Trainees degree of
satisfaction with
The trainer
Subject matter and content
Training environment
Learning
Paper and pencil tests

Performance tests
Simulation tests
Trainees level of
understanding before and
after the training to determine
gains in knowledge
Behaviour
Performance appraisal
Observation of trainees on job
Interviews with thee trainees and their
managers
Ratings of trainees before and

after training to assess the
degree to which training has
changed their performance
Results
Productivity data records

Annual reports of company
Measures such as turnover, grievances,
absenteeism, sales target etc
Before and after data on

performance criteria
measures.
ligo@macfast.org
149
Special forms of training and

development
Team training
Diversity training
Training for global assignments
Training for leadership skills
Orientation training
ligo@macfast.org
150
Checklist of Topics in an
Orientation programme
Company History
Organisations purpose and
strategy
List of Chain of command
Who are the key executives
Introductions
to
other
employees
Expectations for attendance,
conduct and appearance
Conditions of employment
Explanation of job duties,
standards and appraisal criteria
Safety regulations
Rules,
Policies
and
procedures(
Standard
Operating Procedures manual)
ligo@macfast.org
151
Roles of HR and Line in Orientation

Training Program
Orientation Training
Roles and Responsibilities
HR Manager
Co-ordinate activities
Provide information about
conditions of employment
Provide general
organizational information
ligo@macfast.org
Line manger
Prepare the workgroup to receive
the new employee
Provide information on
newcomers responsibilities
Provide information about
expected performance standards
Introduce newcomers to coworkers and subculture of
workgroup
Provide feedback and coaching
152
New Developments in Training and

Development
New Developments
Technology and training

Computer- based training
Distance training and video conferencing
E- training
ligo@macfast.org
Competency- based approach to

development
Competency assessment
Competency modeling
153
Technology and Training

Computer based training (CBT)
Computer assisted instruction (CAI)
Computer managed instruction ( CMI)
Virtual reality training
Distance training and video conferencing
ligo@macfast.org
154

Computer based training (CBT)
Organisations use computers to train employees
especially in technical skills
IN CBT , the trainee uses computer based systems to
interactively increase his/ her knowledge and skills.
It uses multimedia, audio animation, graphics, and
interactive videos and photos.
Two types of techniques used in CBT , they are
ligo@macfast.org
155

CAI delivers training material directly to the trainee
through a computer terminal in an interactive format.
These are expert systems that are used to tutor the
trainee, monitor trainee knowledge and provide
adaptive tutoring based on the responses of the trainee

CMI uses computer to manage the administrative
functions of training such as registration , record
keeping, scoring, grading etc.
Virtual reality training

It places the trainee in a simulated situation , which is
ligo@macfast.org
156
virtually same as the
physical environment

Distance Training and video conferencing
Tele-training
It involves offering training program over satellite based
network.
The trainer is in a central location and the teaches a
group of employees at remote location.
Video conferencing
Through audiovisual equipment, video conferencing
allows people form geographically dispersed locations
to communicate live with each other.
ligo@macfast.org
157

E- training/ cyber learning
Its a high tech training method which uses internet or
the intranet of an organisation to conduct training
online.
Employee training is managed online and e- learning is
used for skill Upgradation.
ligo@macfast.org
158
Competency- based approach to

development
Competency:
Its a cluster of related knowledge, skills and attitudes
that affects a major part of an individual job, that
correlates with performance on the job, that can be
measured against well- accepted standards and that
can be improved via training and development (
Training magazine, July 1999)
ligo@macfast.org
159
Competency Assesment
Its is the process of identifying the competencies among a
group of employees.
Task analysis Vs competency assessment
Task analysis bases training on what people do,
whereas competency assessment bases training on
who the successful performers are
Task analysis focuses on jobs with an emphasis on
psychomotor skills whereas competency assessment
conducts training for employees who perform decision
making tasks and are knowledge workers such as
mangers and professionals
ligo@macfast.org
160
Competency Model
A competency model is a success profile created on
the basis of competency assessment.
A competency model is an organizing frame work
that list the competencies required for effective
performance in a specific job, organisation or a
process.
These competencies are associated with exemplary
performers and tied to corporate culture.
ligo@macfast.org
161
ligo@macfast.org
162
ligo@macfast.org
163
ligo@macfast.org
164
ligo@macfast.org
165
Strategic Approach to Competency

Assessment
The approach consists of five main building blocks
The strategic review
Identifying strategic areas of competence
Determining competency requirements
Assessing competency gap( competency requirement & Competency
possessed by employees)
Application( Managers competencies are tested in this stage) i
Every line manager should engage in at least 4 activities which relate to
performance in job ( selection, assessment, development & Succession)
ligo@macfast.org
166

Resource Management
Module-IV
ligo@macfast.org

Management
Module IV
Strategic
Performance
Management,
Compensation and Employee RelationsPerformance Measurement approaches-Effective
performance
Measurement-Compensation
Reward Approaches-Trends in Top level Executive
Compensation-Strategic Linkage of Performance
Management and CompensationManaging Employee Relations: Unions and
Strategic Collective Bargaining.
ligo@macfast.org
Performance Appraisal to
performance management
Performance appraisal is a system by which an organisation
assigns some score to indicate the level of current and/or past
performance of a person.
Performance management is an integrated process that
consolidates
goal
setting,
employee
development,
performance appraisal and rewarding performance in to a

single common system.
Objectives of Performance
management
Recruitment and selection
Personnel decisions such as promotions, layoff
etc
Career planning and development
Feedback motivation and development
Compensation and rewards
Classification of performance
management objectives
Classification of performance
management objectives
Evaluative Objectives
Validating selections
Bonuses and incentives
Promotions
Salary increases
Manager is a judge and make reward
decisions
Development Objectives
Feedback
Motivation
Career planning
Manager is a coach who helps in
performance improvement
Developing performance
management systems
Identifying dimensions of job performance
Defining and communicating performance standards
Determining who will conduct the appraisal
Choosing appropriate methods of performance appraisal
Communicating appraisals to employees
Process of performance
Management system
Types of Performance Evaluation

Criteria
Types of evaluation Criteria
Trait based
Seeks information about
subjective characteristics
such as attitude, initiative
etc
Graphic rating scales
Essay method
Ranking method
Forced distribution method
Behaviour Based
Performance measure
focus on specific
behaviours that lead to
success on the job
Critical- incident
method
Checklists
Behaviorally anchored
rating scales
Results Based
Measurement is easy
and there is a tangible
output
Productivity measures
Management by
objectives
Behaviorally Anchored Rating Scales (BARS):

Its a combination of rating scale and critical incident
technique.
The procedure for BARS is usually five stepped.
Collect the critical incidents
Identify performance dimension
Reclassification of incidents
Assigning scale values to the incidents
Producing the final instrument
BARS
Determining who will conduct

performance evaluation
Appraisal by manager or supervisor

Self appraisal
Subordinate appraisal
Peer appraisal
Team appraisal
Customer appraisal
Multisource feedback
Sl Classification Approaches
No
I
Absolute measures evaluate employees

performance standards of the job
Methods of performance
Appraisal
relative
to BARS, Graphic rating scales,

CIT, Checklists
Relative measures evaluate employees in comparison to co- Ranking, Paired comparison,

workers
forced distribution
II
Category rating methods evaluate employees against a Graphic

standard
checklists
rating
scale,
Comparative methods evaluates employees by comparing Ranking, Forced distribution

the performance against each other
Narrative methods assess employees by describing their Essay
actions and behaviours
Behavioural methods evaluate employees behaviour instead BARS
of their characteristics
III
Trait based methods measure the extent to which an Graphic Rating scale, Forced
employee possesses certain characteristics important for choice
method,
forced
job
distribution
Behaviour based methods describe which actions should be CIT, BARS, checklists
exhibited on the job
Results
based
methods
evaluate
employees Productivity measures, MBO
accomplishments they achieve through their work
Problems in Performance
Management
Ambivalence towards
performance evaluation on the
part of appraiser and appraise
Problems in performance
management system
Problems in design and

implementation of performance
management system
Rater biases and errors
Rater errors
Rater Errors
Brief Description
Varying standards
Managers appraise different employees by using different

standards and expectations
Recency effect
Managers gives higher weightages to most recent instances

of performance
Primacy effect
Information about individual performance obtained first

gets the highest weightage
Central tendency error
Appraiser avoids using high or low ratings and rates all

employees as falling in a narrow range, everyone is average
Leniency error
Appraise rates all employees at higher end of the scale as

good performers
Strictness error
All employees are assigned low ratings
Personal bias error
A manager may have personal bias against a particular

caste, nationality, or region
Rater errors
Rater Errors
Brief Description
Halo effect
A manager rates an employee high on all performance

criteria because of high performance on a single criterion
Contrast error
Employees are rated relative to others rather than to an

objective standard
Similar to me or
different to me
Managers compare the employees against their own

characteristics.
Sampling error
The rater sometimes observes only a small sample of an

employees work. if 95 % of the work of the employee has
been very good, but the boss saw only the 5% that was
unsatisfactory, the supervisor is likely to rate the employee
as a poor performer.
Strategic Choices in Performance

Management systems
Purpose of the system
Evaluative or developmental
Who evaluates
What to evaluate
Traits, Behaviour, results
Approaches to evaluation
Absolute/ Relative
Means/Tools of evaluation
Characteristics of effective
performance management systems
Separation of evaluative and development
appraisal
Use of job related performance criteria
Effective
performance
management
system
Specifying performance standards for each

criteria
Using appropriate performance data
Improving superior- subordinate relationship
Providing on-going feedback
Upward appraisals
Using multiple raters
Training raters
Appeal process
Top management support and fit with
organisational culture
Strategic linkage of performance

management
Linkage between organization life cycle , competitive

status, organizational strategy & hr strategy
Org. Life
Cycle
Competiti
ve status
of the
firm.
Org.
strategie
s
Needed
employee
characteristic
HR strategy
Aligning
performance
mgt.
Inception
[startup]
Weak
Value
creation
Innovative.
Risk - taking.
Long term
orientation
Focus on
exploratory
knowledge of
employees
Qualitative
methods
Growth
Strong
Value
accumul
ation
Flexibility
Co -operative
Focus on
exploitative
knowledge
Quantitative
methods
maturity
Stable
Value
maintena
nce
Efficiency
Results with
low level of
risk
Harvest
strategy to
maintain
competitive
status
Qualitative
methods
Strategic performance management

system.
Step 1
Step 2
Step 3
Identify competitive
status of the firm.
Determine strategies.
Align the performance

management system.
Internal analysis of
strengths and
weaknesses of the
organization.
Setting corporate
strategy.
Setting HR strategy.
Determine needed
employee behaviors.
Define performance
criteria.
Select the type of
appraisal method.

management

Compensation is the sum total of all forms of payments and
rewards provided to employees for performing tasks to
achieve organisational objectives.
Total Compensation
Financial
(Extrinsic rewards)
Direct
Wages , salaries,
incentives, bonus etc
Indirect
Benefits
Non- financial
Intrinsic rewards
Satisfaction derived
from job
Praise and
recognition
Components of financial compensation and Rewards

Components of Financial
Compensation
Indirect
Direct
Benefit
Base pay
Wage
Salary
Variable pay
Individual incentives
Group/ team
incentives
Organisation wide
incentives
Mandatory
benefits
Provident fund
Gratuity
Maternity leave
Medical leave
Voluntary benefits
Paid holidays
Family friendly
benefits
Retirement benefits
Job Evaluation Methods

Job evaluation is the process of determining the relative value
of job to assign wage rate to job
Method
Description
Ranking
Examine each job description and arrange the job in the order of
importance
Classification
Jobs are classified and grouped in to a number of grades. Each successive

grade or class requires increasing amounts of job responsibility, skill, ability
etc
Factor
comparison
Evaluators establish the relative degree of difficulty of each compensable

factors ( mental effort, skill, physical effort, responsibility and working
conditions ) for each key job. The monetary rates assigned to each job on
each factor are added to obtain the total monetary value of job
Point
The job is broken down in to specific components such as skill, effort,

responsibility etc. and numerical values are assigned to each of these
components. Weights are assigned to each job component depending on
the relative importance of each criterion on performing job.
Type of incentives
Description
Individual incentives
Piecework plans
(Number of units produced) X (Rate per unit)
Merit pay
Salary increase for performance. Increase becomes part of base salary
Bonus
One time payment and not become part of base salary
Individual incentives for sales personnel

Salary plan
Sales personnel are paid fixed salary
Commission
Salespeople are paid for results
Combination plan
Combination of salary and commission
Group/ team based incentives

Gain sharing
Share of greater than expected profit with the employees
Organisational incentives
Profit sharing plans
Employees receive a share of the firms annual profit
Employee stock option

plans ( ESOP)
Allow the employee to gain stock ownership in the organisation
Structuring the benefits for the

employees
One- Size
fits- all
Approach
Flexible Approach/
cafeteria approach
Segmentation
Organisations segment the employees in to categories and customize the
compensation package based on what employees of that category wants.
Compensation and rewardsDeterminants
Internal Determinants
Compensation policy of the
organisation
Employers ability to pay
Worth of a job
Pay levels
External determinants
Labour market conditions
Economic conditions
Area wage rates
Government controls
Cost of living
Union influences
Equity in reward decisions

Perceptions of equity and inequity
Equity perception
Self
Significant others
Outcomes
outcomes
inputs
inputs
Inequity perception
Under compensation
inequity
Outcomes
Overcompensation
inequity
outcomes
inputs
inputs
<
outcomes
inputs
outcomes
>
inputs
Types of Equity
Types of Equity
Internal Equity
Employees
are
paid
according to relative value
of their jobs
External equity
Employees
are
paid
comparable to employees
performing similar jobs in
other organisations
Individual Equity
Compensation based on
performance
appraisal
and perceived as fair
when compared with
what others in similar jobs
in the organisation are
earning/ ensure equal pay
for equal job.
Executive Compensation
Compensation or remuneration for the executive
managers is different from that of other employees
in most the organizations.
Executive compensation covers employees of the
C-Suite. which include presidents of company, chief
executive officers (CEOs), chief financial officers
(CFOs), vice presidents, occasionally directors of the
company, and other upper-level managers.
ligo@macfast.org
Indian Top executive pay chart in

Indian corporate sector: 2014
Bharti Airtel's Sunil Mittal (Rs 21.3 crore)

Hindalco's D Bhattacharya (Rs 19.5 crore)
JSW Steel's Sajjan Jindal (Rs 18.18 crore)
Amara Raja Batteries' Jayadev Galla (Rs 17.23 crore).
Components of executive
compensation
Perquisites
Long term incentives
Short Term Incentives/Annual Bonus
Executive Salary
ligo@macfast.org
Executive salary
Salaries of executives vary by type of job, size
of organization, region of the country, and
industry.
On average, salaries make up about 40-60% of
the
typical
top
executive's
annual
compensation total.
ligo@macfast.org
Executive Bonus plans

STIs( short term incentives) are designed to motivate the
short term performance of managers and are tied to company
profitability.
Bonus is tied to some performance measure like return on
investment, earnings per share, or net profits before taxes.
Short-term incentives are paid on quarterly or annual
performance
Eg: Sales Director's performance related bonus may be based
on incremental revenue growth turnover
ligo@macfast.org
Performance incentives-long term

incentives
Performance-based incentives attempt to tie executive
compensation to the long-term growth and success of the
organization.
ESOP-( Employee stock options Plan) A stock option gives an
individual the right to buy stock in a company, usually at an
advantageous price.
ligo@macfast.org
Long term incentives for Executives

Type
Description
Phantom stock option
company promises to pay cash at some future date, in an

amount equal to the market value of a number of shares of
its stock. Allows executives to hold shares without owing
them personally.
Stock appreciation
rights (SAR)
Certain number of shares are allotted to the employee. After

the vesting period, the employee is free to exercise his
options, and if the value of the share is appreciated he is
given share or cash worth his appreciated value. If shares are
allocated he can sell it after a lock in period.
Restricted stock plans
Grants of stock at a reduced price with the condition that it

may not be sold before a specified date
Sweat equity
Refers to the equity shares issued by a company to

employees or directors at a discount for providing knowhow
or some sort of value addition.
ligo@macfast.org
Executive perquisites
Perquisites (perks) are special executive benefitsusually
noncash items.
Perks are useful in tying executives to organizations and in
demonstrating their importance to the companies.
Visible symbols of status allow executives to be seen as "very
important people (VIPs)" both inside and outside their
organizations.
Perks can offer substantial tax savings because many perks
are not taxed as income.
ligo@macfast.org
Perquisites
Transportation
Financial/ Legal
Memberships
Company car
Financial planning
Country club
First class air travel
Tax planning
Health club
Company air plane usage
No or low interest loans
Special dining privileges
Spouse travel
Legal counselling
ligo@macfast.org
Recent trends in CEOs

compensation
ESOP- Employee stock option plan
Retention bonus
Free residence ( if the employee stays on, the organisation
gifts to the employee the house that he/she is living in)
Joining bonus or a golden hello ( to compensate the loss of
the existing job)
Severance pay ( if one party decides to cancel the contract, it
will pay a certain amount to other
Pre-joining holiday
A golden parachute (is an agreement between a company and
an employee (usually upper executive) specifying that the
employee will receive certain significant benefits if
employment is terminated. )
Business strategy and

compensation strategy linkage
Business strategy
Miles and Snow Typology
Compensation strategy
Defender ( maintain current market Mechanistic strategy

share)
Provide pay package and policies to
maintain in grown talent needed to
enhance the existing business
Reward work experience
Prospector ( actively search for new
products and markets and pursue
opportunities both within and outside
current area of expertise)
Organic strategy
Seek external equity in compensation
strategies
Higher level of incentive pay
Reward outcomes rather than behaviour
used to attain goals
Analyzer
Mixed compensation strategy

Provides both control and autonomy
Organisational life cycle and

compensation strategy
Organisational life cycle Compensation strategy
Start up stage
Low base pay ( to conserve cash)

High emphasis on incentive pay
Low benefits ( to control costs)
Growth stage
High dependence on incentive pay to attract and retain

R&D scientists and engineers
Stock options, profit sharing, bonus
Mature stage
Less likely to use incentive pay strategy
Decline stage
High base salary and benefits

Less flexibility to offer pay incentives
Managing Employee Relations:

Unions and Strategic Collective
Bargaining.
Significance of IR
Industrial relations is concerned with anticipating, addressing
workplace issues that may interfere with an organizations
business objectives, as also with resolving disputes between
and among management and employees.
Trade Unions
It refers to an association of workers who are from
one or more different department coming together
with the aim of protecting and safeguarding their
interest and fulfilling the unfulfilled need, if any.
Why do workers join Union

Motivation to join Union
Greater Bargaining Power.
Make their Voices Heard.
Minimize Discrimination.
Sense of Security.
Sense of Participation.
Sense of Belongingness.
Why Employers Dislike Union?
Perception of reduced managerial power

Threat of strike and loss of market
Delay in decision making
Fear of losing employee commiyment and
loyalty
Objectives of Trade Unions
Wages and salaries

Working conditions
Discipline
Welfare
Employee- employer relationship
Negotiating machinery
Collective Bargaining
Its a process by which representatives of
management and workers negotiate over
wages, hours and other terms and conditions
of employment.
Legal Framework of collective

bargaining
Trade union Act 1926
Allows 7 or more workmen for forming an association
or trade union and get registered by Registrars of Trade
Union in each state
Industrial dispute Act 1947

Provides protection to workmen in exercise of their
rights to organize or form trade union for the purpose
of collective bargaining
Industrial employment Act 1946

Defines conditions of employment in an organisation.
Collective Bargaining process

Environment
Preparing for negotiation
Bargaining Issues
Negotiating
Negotiation
Breakdown
Yes
No
Reaching the Agreement
Ratifying the Agreement
Administration of the
Agreement
Overcoming Breakdowns
Types of Bargaining
Conjunctive/distributive/bargaining
Each parties tries to maximize their respective
gains
Cooperative bargaining
Both parties tries to negotiate the terms of
employment in a flexible way
Types of Bargaining
Productivity bargaining
Productivity standards are set and if the workers
exceed the standard they will get substantial
benefit
Composite bargaining
Workers bargain for things other than wages and
working conditions like sub contracting,
environmental policies etc.
Advantages in Union Involvement

in Company strategic Plan
Cost Control Through Productivity bargaining

Credibility to strategy Information
Strategic suggestion from the Union
Ease in strategy Implementation

Resource Management
Module-V
ligo@macfast.org

Management
Module V
Global Environment of HR-Change &
Diversity-Difference between Global HRM and
Domestic HRM-Cross Cultural contextStrategic HR Issues in Global AssignmentsCompetencies of HR Professional in a SHRM
Scenario.
ligo@macfast.org
Introduction
Internationalization of business
Globalization is gaining momentum
Markets are no longer protected from foreign competition
A large proportion of workforce is located in other countries away from
their home and home countries
Quality human resources are a must for implementing global competitive
strategies.
Organisations differ in the degree of internationalization
International Human Resource

Management
All those activities undertaken by an organization to utilize its human
resources effectively make HRM.
Those activities include:
Human Resource Planning
Staffing
Performance management
Compensation and benefits
Labor relations
The above activities will have a change whenever a firm or its HRM goes
international.
A Model of IHRM
225
HR Activities
The three broad human resource activities:
procurement, allocation, and utilization.
Type of countries involved

The three national or country categories
involved in international HRM activities:
The host country where a subsidiary may be located
The home country where the firm is headquartered
Other countries that may be the source of labor or
finance.
Type of Employees
The three types of employees of an international
firm:
Host-country nationals (HCNs),
Parent -country nationals (PCNs)
Third country nationals (TCNs).
Eg: IBM employs Australian citizens (HCNs) in its
Australian operations, often sends U.S. citizens
(PCNs) to Asia-Pacific countries on assignment, and
may send some of its Singaporean employees on all
assignment to its Japanese operations (as TCNs).
IHRM-Defnition
Process of managing people in international
settings.
Morgan defines international HRM as the interplay
among these three dimensions-human resource
activities, types of employees, and countries of
operation.
Difference between Domestic HRM

and IHRM
International human Resource
Management
Domestic HRM
Addresses a broad range of HRM activities Addresses a narrow range of HR activities

HR issues relate to employees belonging
to more than one nationality
HR issues relate to employees belonging

to single nationality
Greater involvement of HR manager in

the personal life of employees
Limited involvement of HR manager in the

personal life of employees
Greater exposure to risks in international

assignments
Limited risks in domestic assignments
Has to manage several external factors

such as government regulation of foreign
country
Limited external factors to deal with.
More HR Activities
International environment requires the HR
department to undertake more HR activities than
those in domestic HR.
They are :
Pre-departure training for international assignments.

international relocation and orientation
host government relations
language translation services
international taxation
Compensation issues in international assignments
Repatriation
International staffing- Sources of Staffing

international Business operations
Parent Country Nationals
(PCNs)
Host Country Nationals(HCNs)

International staffing Sources
Third Country Nationals( TCNs)
Three sources of international staffing

Advantages
Parent country nationals

(PCN)
Host Country
Nationals (HCN)
Third country
nationals (TCN)
ensure proper linkage

between foreign
subsidiary and the
headquarters
Are familiar with

local norms and
culture
Not expensive like
PCN
Are less costly than

PCN
Have substantial
international
experience
May have a local

view rather than a
global view about
the operation
TCNs pose greater

HR challenges in
terms of cross
cultural diversity
management
When the
subsidiary is well
established
To establish
networks locally for
business expansion
Have proven
technical expertise
Disadvantages Expensive
Lack of awareness about
local culture
Most suitable
When MNC is in the

start-up phase
To ensure that foreign
subsidiary complies with
policies of headquarters
When host country lacks
technical expertise.
Approaches to managing and

staffing subsidiaries of MNCs
Three Approaches to managing
subsidiaries of MNCs
Ethnocentric
Polycentric
Regiocentric
Geocentric
Ethnocentric approach
Parent -country nationals hold the key positions.
This means that few subsidiaries have any autonomy
and the strategic decisions are made at
headquarters.
Headquarters management personnel hold key jobs
in either domestic or foreign operations.
Expatriates manage subsidiaries.
Eg: korean firms in india such as LG, Samsung,
Hyundai.
Polycentric approach
Polycentric approach uses host-country nationals to
staff the subsidiary while parent country nationals
hold positions at headquarters.
In this context, the multinational enterprise treats
each subsidiary as a distinct national entity with
some decision making autonomy.
Local nationals are rarely promoted to positions at
headquarters.
PCNs are also never posted to foreign subsidiary.
Regiocentric approach
In a regiocentric approach regional staff are utilized
and developed for positions anywhere within the
region.
In this approach, regional managers may not be
promoted to Headquarters positions but enjoy a
degree of regional autonomy in decision making.
Geocentric approach
Focuses on competence and ability rather than
nationality.
Develops international executive team having cross
cultural skills.
The phases of cultural adjustment
The phases of adjustment

Phase -1: Tourist
At the beginning of the assignment , everything
seems to be different and unique
Expatriate experience (positive emotions)
excitement, surprise, (negative emotions) fear,
frustrations at this phase
This phase is also known as honeymoon period for
expatriate

Phase 2: culture shock
Expatriates starts realizing the differences between
home and host country and feeling of culture shock
sets in.
This is the most critical time in the expatriates life
Phase 3: pulling up
Expatriate begins to adapt to the foreign culture and
gradually moves to a neutral state

Phase 4: Adjustment
Expatriate is naturalized to a great extent.
This phase represent healthy recovery from initial
shock.
Expatriate focus on the task at hand.
CCT- Cross Cultural Training

Success of an Expat largely depends on how
fast he/she can acculturate in a host country.
Acculturation demands the expats to be aware
of the culture of the host country.
MNCs offer CCT to teach the expats about the
host countries appropriate norms and
behaviour
Two phases of pre departure Training

programme ( Guy and Mattock 1991)
Sl No
Phases of Training programme
Content of the Programme Phase
For the manager
Job description
Objectives and goals of the manager
Relationship between the subsidiary and
the parent company and with other
subsidiaries
Management practices of the host country
Political, legal and economic environments
of the host country.
For the manager and his/ her

family
Language training
Area study ( host countrys culture,
climate, geography, currency etc)
Cross cultural training
Causes of failure of expatriate

Managers
Bad selection
Cultural adjustment
Lack of understanding of work practices of the
foreign country
Failure of family to adjust to the foreign
country
Poor performance
Repatriation issues
Strategic HR issues in global

assignments
Pre departure training for international assignments

Language training
Cultural training
Managing personal and family life
Performance management on international
assignments
International compensation
Repatriation
Challenges of Performance
appraisal in IHRM
Cultural Adjustment
Host Country Environment
Variations in the stages of business
Separations by time and distance
Rater Bias/ Rater competencies
Non comparable data
International compensation
package
The major components of International
compensation includes
Home Leave and Travel Allowance

Childrens Education Allowance
Currency Differential payment
Relocation allowance
Housing Allowance
Cost of living adjustment (COLA)
Payment to protect from negative tax consequences
Hardship posting allowance
Repatriation
Is the process of bringing an expatriate home
after he/she has completed the international
assignment.
Fears and concerns of expatriates
Key characteristics required for

success in global Assignments
Organisational Requirements
Technical abilities
Job related skills
Managerial skills
Organisational knowledge
Cultural Adjustment
Cultural Empathy
Cultural Adaptability
Diversity Awareness
Global Exposure
Diplomatic skills
Personal Characteristics
Flexibility and risk taking
Emotional stability and maturity
Tolerance of Ambiguity
Coping with stress
Key Characteristics
required for Global
Assignments
Personal / Family Factors

Personal life demands
Adaptability of family
Career development
Financial concerns
Communication skills
Language capabilities
Nonverbal awareness
Conflict resolution Abilities

Strategic Human Resource Management PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Strategic Human Resource Management PDF

Uploaded by

Copyright:

Available Formats

HRM 09 - Strategic Human

HRM 09 - Strategic Human Resource

HRM 09 - Strategic Human Resource

HRM 09 - Strategic Human Resource

HRM 09 - Strategic Human Resource

HRM 09 - Strategic Human Resource

HRM 09 - Strategic Human Resource

The Concept of Strategy

A distinction has been made by Barney (1991) between the

Porters Classification of Business Strategies ((1985)

The firm distinguishes its products / services from its

The firm recognizes that different segments of market

Distinctive capabilities or core competences describe

Four components of SHRM

Human Resources as assets

Main features of Human Resources

Can walk over to other

Value grows with time as

Human Resources as Assets- The

Differences between SHRM and Traditional HRM

Responsibility for HR Programmes

Staff personnel in the HR

Line managers, all managers

Employee Relations ensuring

Partnership with internal, external

Reactive and transactional

Proactive and transformational

Initiative for Change

Slow, fragmented, not integrated

Fast, flexible, systematic

Consider various time frames as

Bureaucratic control through rules,

Organic control through flexibility

Focus on scientific management

Broad job design, flexibility

Capital, products, technology and

People and their knowledge, skills

Overarching strategies- Examples

multinational DIY and home improvement

Strategic HRM model

Strategies at different levels

Linking Business strategy and HR

Cost leadership strategy

Miles and Snows Classification of Business

Creative and flexible management style

Low levels of monitoring and coordination

Linking HR with Corporate Objectives

Linking HR with Corporate Objectives

Once you get their departmental requirements, HRM develops

Example of ALIGNING HR plans with CORPORATE

Corporate Strategy: Expand into the global market.

Phase 1: enter the European market.

Marketing Objective: Gain 2 % market share in the first 18

Linking HR with Corporate Strategy

Role of HR during Organizational Growth,

Role of HR during Organizational

Recruitment of highly motivated and committed employees

More sophisticated recruitment and selection

Attention to the control of labour costs

Role of HR during Organizational Turn around

Role of HR during Retrenchment

The Role of Human Resources in