STRATEGIC HUMAN RESOURCE DEVELOPMENT PDF
PDF | In real life, strategy is actually very straightforward. You pick a general direction and implement like hell. ○ understand the theoretical reasons for why. PDF | 25 minutes read | Abstract Strategic Human Resource Development: A Journey in Eight Stages is a book, which talks about the logical. Strategic human resource management was defined by Hall () as: 'The As described by Harrison (), strategic HRD is 'development that arises from a.
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development whilst strategic human resources development equips Strategic human resource development is a method in terms of which learning or the. Explain three models of human resources (HR) strategy: control, resource and approach to HRM labelled strategic human resource management, or SHRM. Theorizing Strategic Human Resource Development: Linking Financial Performance and Sustainable Competitive Advantage Po Hu University of Minnesota.
Choose an organisation and find out the competitive advantages of it.
strategic human resource management
Explain your findings. Conduct a SWOT analysis of that organisation. Based on your findings, plan a new goal for it.
Suggest corporate and business level strategy, and unit level plan to execute the strategies. Choose an organisation and find out their mission, vision, goal, and business strategy. Find out the level of investment orientation of that organisation. How does it measure its human capital and other assets? When accountants, consultants, attorneys, physicians, or other trained professionals decide to start their own business, do they a right to bring clients with them from their previous employer?
Do you think your family is diverse? If yes, then explain the level of diversity of your family members. What benefits and difficulties do you face for this diversity? If no, then explain what benefits and difficulties do you think you would have faced for this diversity?
HR fulfils administrative functions within the firms. Susan Meisinger identifies five specialisations HR professionals need Internal Consultants - to train and empower line managers for effective employment relationship practice. Vendor Manager - to determine which functions can be better handled internally or externally, thus, selecting vendors. While plenty of pure pipeline businesses are still highly competitive, when platforms enter the same marketplace, the platforms virtually always win.
Few functional managers see themselves as HR managers, and concerned more with their core area. Difficulty to quantify many outcomes and benefits of HR programmes. Choose an organisation and find out its traditional and strategic HR roles. What other strategic HR roles can be performed by the HR department of that organisation? What are the barriers of executing SHRM in that organisation?
Cultural - country, society, values, norms, beliefs, practices, etc. The decision is usually mutual between both companies It offers the stockholders of the company stakes in the acquiring company in exchange for the surrender of their stock. It is a transitioning of individuals, teams, and organisation to a desired future state.
Choose an organisation and find out its work system design. What are the disadvantages of this work system? Do you suggest any re-design of this work system? What advantages do you think it may bring? What is the recent change the organisation had gone through?
What obstacles the organisation had faced to manage the change? How did the organisation manage it? Employers choose the candidate who most closely fits this ideal profile. Exchange Approach - a process that focuses on an exchange or negotiation between employer and employee. Both parties have a set of expectations related to their current and future needs and values. Decision is taken based on an increased amount of information is exchanged to determine close fit.
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A viable psychological contract is negotiated. Processual Approach - a process that considers selection as a learning process. Employer attempts to learn about the candidate e. Evaluation of the decision made Experiential Learning Cycle by by the manager.
This work-force chips in a fairly big way towards the business goals without being treated as part of the organisation. Double-income families: The trend already is towards both the husband-wife going out of their homes in pursuit of their careers.
This trend is only going to increase which would require the HRD to be responsive to their needs. An HR Department which could provide a in-house Liesure- planner, a Travel Manager, and an entertainment adviser would be appreciated. Faster, Non-Fussier Response: The old bureaucratic ways of queries being replied to after filling up scores of forms and of policies, procedures being kept away in wraps should be challenged. A fresh air of transparency should be allowed to blow across the HRD setup.
Individual attention: As customizing is taking place in the services being offered and products being manufactured keeping in mind the needs of the discerning customer, so should the HR Professional handle the work force. Each individual is different from the other and hence deserves to handled differently. Discard those reams of policies and procedure manuals if they are not tuned to treat the individual knowledge worker in adjust manner.
B2B Back to Basics: The HR professional would have to go back to that basic behavioural knowledge and put them to use in order to do justice to the multi-hued workforce. The latest trends in business and in its own function need to be known to the HR professional more than ever before for adding value to the function. For this the HR professional needs to be in touch with the external environment through any medium possible.
How the Organisation responds to the tremendous demands made by the market would be the key? The whole organisation structure would need to be more organic than ever before to be able to survive and remain World-class. The stringent and ever increasing demands of the discerning customer would mean that organisations respond to the demands of the market before the competitor does.
The structure would have to be lean enough to create synergy and dynamism for disseminating communication quickly across all levels. On the other hand the organisation would require highly competent individuals who take the process of innovation and knowledge-enhancement seriously.
The business scenario would impact the Organisation structure and on its Manpower Resources because of the change in existing and future organisation see fig 2. Both the type of organisations differ from each other in the following way: These conditions will require that the organisations operate differently. These differences will be seen in structure, decentralized decision-making, fewer or no job classifications, multi-skilled work forces, more effective communication among functional groups.
To bring about these changes within the organisation, the HR Professionals need to get in their expertise and help evolve systems, which support the business needs. The key even then would lie with the Human Resources and not with the computers, not with the CNC machines. Human resource development HRD enhances employee competence in their jobs by increasing knowledge, abilities, and skills.
The organisations must follow those type of strategies which help in accomplishing organisational goals with an addition to develop the human resource. Strategy The business strategy must be linked with the human resource strategy. It is essential to consider the differing characteristics of people when setting a plan for an organization to follow.
The stage of development- embryonic, high-growth, matures, or aging- that the company is in will determine the HRD goals. Companies that are just starting out are interested in strong managers. The next stage is characterized by high growth. While vying for a place for their product in the market, they are also spending a lot of time developing their intellectual capital, i. When at the mature stage, companies begin to put more limits on employee actions.
Good managers at this stage can assemble employees to be able to perform tasks in the best way possible. Companies that are aging will be very concerned with economic survival and will need a staff that can revitalize it. Organizational culture will be strongest when the company is at the mature stage.
Managers who have well-developed human resource skills will recognize the value in a strong culture.
They will be better suited and committed to aiding their staff in personal career development. There can be varying cultures across organizations. People who choose jobs that are in line with their own values and culture are likely to be more productive and well suited to work together [Blake]. Successful human resource managers must tie human resources to business strategy goals. HRD can assist managers in adopting strategic thinking and can facilitate the implementation of business strategies [Garavan, Heraty, and Morley].
The role of human resource staff is changing all the time. Their responsibility in the future is to staff projects with people committed to fulfilling business strategy.
Human resource functions such as compensation, benefits and recruiting can be out-sourced. The judgment, knowledge, and foresight needed to staff effectively and efficiently will be the most important role of the human resource manager [Weiss]. Developing the skills of this carefully chosen staff is essential to achieving business strategy. Continual education for employees is one of the most vital organizational strategic goals.
When the right people are hired and their skills are developed on an ongoing basis, the human resource manager is insuring the staffing needs for future projects and goals. It only makes sense to keep good quality people and develop their skills to be exactly what you need. Their ability to adapt and change for newer projects will be a reflection of the development preparation that they have received. Employees need to have good people skills in every organization. This certainly helps them to relate to customers.
It also aids the organization by having a staff that can work well together. The development of human- relation skills can help to improve communication, which decreases conflict in the long-run. This creates a more positive work environment that motivates employees. Human-relation skill development means improved performance, which is a main business strategy goal [Dilenschneider].
Assessment Part of development includes realizing the skills and abilities that employees already have. Even the most well trained employees will perform poorly if they are not assessed properly. Reinforcing previously covered information, teaching new concepts, and introducing new ideas are development aspects that must be measured and assessed. Employees need to know what is expected of them.
Acceptable performance can only be known if the employees are assessed and if the assessment information is communicated to them. Then, the measurement of what people have1eamed after training will be more accurate. Feedback from managers to subordinates and vice versa is essential to the development function.
Research conducted over the past 70 years indicates tests to evaluate intellectual ability, the ability to draw conclusions from verbal or numerical information, and an individual's interests can help in selecting successful managers [Cascio]. An employee needs to be assessed-for readiness to accept management responsibilities.
Assessment centers can focus on business simulations as well as formal assessments. This kind of development encourages promotion and increases job satisfaction. Weaknesses are identified and the employee is empowered to tailor development to fit his or her future career plans.
These centers use multiple assessment techniques, such as situational tests, tests of mental abilities, and interest inventories. The assessment center prediction doesn't help very much if you are only trying to predict performance in management such as the clarification and evaluation of the promotion system in an organization. They are, however, helpful in capturing the promotion policy of the organization.
Both job and person analyses need to be included in assessment of the trainee [Cavanaugh]. Personality, motivation and the actual task can affect self-efficacy.
This trait plays a big part in eventual performance on the job [Gist and Mitchell]. Development aimed at improving skills should increase self-efficacy. It is important to remember that no one predictor of performance is perfectly valid and some mistakes in selection are inevitable. Conscious selection of managers and lower level employees based on their fit with demonstrated job requirements, the strategic direction of a business, and organizational culture will minimize mistakes and enable you to make optimum choices.
Post development evaluation criteria and processes are essential. People-management and management of change issues are the key future training and development needs for both multinational and indigenous organizations [Tregaskis]. Garavan, Heraty, and Morley discuss the differing interest groups' perceptions on evaluation of HRD programs.
Senior and line managers use quantitative measures such as optimal utilization of human resources, increased productivity and enhanced employee flexibility to evaluate HRD success.
HRD specialists and individual learners place more emphasis on qualitative criteria such as the number of training days, how many and who participated, and improved performance and career options. Return on investment By retaining employees, the value of their development increases. They will increase productivity and contribute to the over-all success of the organization. Their expanded knowledge makes them valuable assets for the company.
Overtime, this added value will more than cover the costs of their development. This reflects a payback model with an emphasis on quantitative and tangible results. However, senior managers, education providers, and HR and HRD specialists believe in the pay-forward model, i. Technology The responsibility for managing new technological advances has fallen on the human resource manager. Proper development of technical skills from understanding how to use a computer to interfacing with networks is increasingly difficult.
If technical goals and strategies are expanded, the job of developing employees will be more focused. Technological changes will alter the face of communication and also the way in which employees learn. People should be encouraged to develop their abilities individually especially with the ease of delivery of information through the Internet.
Sharing knowledge, exchanging resources and learning can be improved within an organization. Real-time conferencing allows employees to be students in virtual classrooms. All levels of business functions need technological development. HRD should focus on competent trainers.
These will be the people with initial responsibility for working on technical skills. Then, as programs are further developed, people will welcome the' technological change as it works its way into the organizational culture. For example, if the accounting department is up and running with new systems, why isn't the administrative level?
Employees will welcome chances to develop their technical skills to keep the internal competitive climate more equal. Changes in organizational structure will enable management to develop technical skills. They should allow an organization to restructure by enabling employees to learn, make contacts, and develop more efficiently. This can be done with effective strategic goals that allow development to take place. An example would be to have development designed internally, but the actual training would be out-sourced.
Electronic performance support systems EPSS are the latest wave in the training and development arena [Marquardt]. These systems use computers to gain access to information, save it, and distribute it throughout an organization.
This helps development because employees can gain a lot of information in a short period of time on an individual and basis staff support is minimal. HRD managers must know this system and how it relates to the work procedures of the organization. Preparation for technology is the key. Seeking out instruction from people with technological backgrounds is a first step. Check out on-line tutorials with commercial services.
Seminars, conferences and training programs are the best places to get the most up to date technological development information for yourself as well as for subordinates.
Books, magazines, and journals on technology are readily available. They also give information about the internet, EPSS and other on-line services. There are thousands of on-line sites that deal directly with technology and its impact on human resource development. With minimum resources and less wastages an optimum production can be carried out. HRD helps organisations to provide learning related activities to its employees and employers.
Learning related activities include training the employees, educating them and developing them so that the major objective of HRD is accomplished i.
The future looks even more exciting and threatening. To face these challenges the HR should have certain well-defined goals in front of them in terms of strategy, assessment, return on investment and technology. Human Resource Management: Human Capital: People change. And then people change organizations. If yes, how and also cite at least two examples to justify the statement. Cite a practical example for the challenges faced by any Indian Organisation? What efforts are being put forward to face these challenges.
How do you sell the idea of the HR department to the managing partner? If you were an HRD manager what would have been your role in today' s scenario? Curtis, B. Overview of the People Capability Maturity Model. Software Engineering Institute: Carnegie Mellon University. Friedman, B. Delivering on the Promise: Arthur Anderson, New York: Free Press. Pareek, U. Indian Institute of management 4.
Pioneering Human Resources development: Academy of Human Resources Development, Publication of the original consultancy reports, and 6. Rao, T. HRD Audit. New Delhi: Cascio, Wayne F. Cavanaugh, Marcie A. Dilenschneider, RobertL. Garavan, Thomas N. Gist, Marilyn E. Mitchell, "Self-efficacy: Blake, Robert R.
Organizational Rhetoric or Self-fulfilling Prophecy? Marquardt, Michael J. Weiss, Alan, "Slogging Toward the Millennium: Project distance Modules, module Web Sites http: HRD in India 2.
The HRD climate is both a means to an end as well as an end in itself. Both the formal and informal structure combines to create what is called organisational climate. Climate is the atmosphere in which individuals help, judge, reward, constrain and find out about each other.
Organisational climate has been a popular concept in theory and research for sometime and has received a great deal of attention in the past 25 years. Twelve reviews of climate literature have appeared since the mids. This definition implied that in the measurement of organisational climate: Schneider has prepared a working definition of climate: By its practices and procedures a system may create many climates. However, if the climate is one, which rewards and supports individual differences, people in the same system will not behave similarly.
Some alternative characteristics are as follows: It can be defined as perceptions the employee can have on the developmental environment of an organisation. This developmental climate will have the following characteristics Rao and Abraham, Organisations differ in the extent to which they have these tendencies.
Some organisations may have some of these tendencies, some others may have only a few of these and few may have most of these. It is possible to workout the profile of an organisation on the basis of these tendencies. The general climate items deal with the importance given to human resources development in general by the top management and line managers. These three groups were taken with the following assumptions: These mechanisms include performance appraisal, potential appraisal, career planning, performance rewards, feedback and counselling, training, employee welfare for quality work life, job- rotation, etc.
Openness is there when employees feel free to discuss their ideas, activities and feelings with each other. Confrontation is bringing out problems and issues into the open with a view to solving them rather than hiding them for fear of hurting or getting hurt. Trust is taking people at their face value and believing what they say. Authenticity is the tendency on the part of people to do what they say.
Collaboration is to accept interdependencies, to be helpful to each other and work as teams. The following factors may be considered as contributing to HRD climate: A developmental style, a belief in the capability of people, a participative approach, openness and receptivity to suggestions from the subordinates are some of the dimensions that contribute to the creation of a positive HRD climate.
Personnel policies that show high concern for employees, that emphasise equity and objectivity in appraisals, policies that emphasise sufficient resource allocation for welfare and developmental activities, policies that emphasis a collaborative attitude and trust among the people go a long way in creating the HRD climate.
Particularly open systems of appraisal with emphasis of counselling career development systems, informal training mechanisms, potential development systems etc.
Organisations that have built in self- renewal mechanisms are likely to generate a positive HRD climate. A helpful and supportive attitude on the part of HRD and personnel people plays a very critical role in generating the HRD climate. The commitment of line managers to the development of their subordinates is a very important determiner of HRD climate. If line managers are willing to spend a part of their subordinates, it is likely to have a positive impact. VFC is a professionally managed venture finance company, which enjoys both national and international patronage.
It has provided managerial and financial support to over 45 companies. The total manpower currently is 34 out of which 26 are managerial cadre the remaining are clerical support staff. This is the smallest of the organizations studied. Currently there is one executive who looks after HRD and one-deputy manager personnel and administrative matters. This CPC is in consumer products. Talent recruitment, retention and excitement are the focus in HR. Company aims at fully establishing itself as an FMCG company.
E-commerce, E-initiatives, diversification are some future possible areas of work. Total number of employees is about The Human Resources Function in this company is highly differentiated. The President- HR integrates it at the top level. There is no strong departmentation but specialization at individual level and a high degree of flexibility. The Managers in-charge of appraisals and training devote their full attention to these functions.
OD, Career Planning, Potential appraisal are not focused at present. TQM and Feedback and Counselling are well integrated into the other systems. It is a world-class technology leader and is frequently named as one of the top 50 patent-holding corporations in the world. Total number of employees in this company at the time of this study were about The HR department had 6 employees, 1 Manager, 1 Asstt. Total number of employees in one of its plants studied is about The HR department has 21 employees, who look after personnel, safety, time, office, welfare etc.
There is no HRD department separately. It is not a differentiated function. After the HRD audit the company decided to establish a separate HRD unit and integrate it with the personnel function at the plant level. At the top level in the corporate office there is a high concern for a competence building to meet changing needs of the industry.
This company is owned by an Indian Business House and is located in another country. It is the best rated company in the country where it is located. It plans to double its production in the next five years. It had about local employees and about 40 Indian Managers. The HR Department had a total of 31 staff of which there is 1 Deputy General Manager heading the functions; 3 officers are looking after training, personnel matters and safety. Of the remaining 9 are drivers, 2 receptionists, 4 safety technicians, 2 agricultural engineers; 1 nurse and other miscellaneous staff.
This company envisions itself to be a world class organization in the next few years. Competition is on increase with the entry of multinationals and JVs. Total number of staff at managerial levels were over 1, technical and non- technical personnel. HRD staff consisted of 16 members.
Of them only two looked after Training and development and the rest looked after other HR functions including recruitment, induction etc. CMU-1 had a total of staff and officers and workmen. A manager and an officer assist him. CMU-2 is a market leader and is expected to be the largest single location manufacturing plant when its plans are achieved. The plant had employee strength of workmen and Officers.
The officers include those of Marketing. There were 10 members in Personnel and HR department and 17 in welfare department. They have well differentiated roles in Personnel but not in HRD. When it comes to HRD it seems that they structure the role in such a way that it is even mixed up with other personnel functions. As the structures are mixed and convenience based, the HRD activities also get mixed attention and are often convenience based. As a result various sub-systems of HRD do not get the attention they deserve.
Following the structuring suggestions by Pareek and Rao there should be separate functionaries available for handling Performance appraisal, Feedback and Counseling, Potential Appraisal and Development, OD, Training and Career Planning and Development.
The HRD function is also very inadequately represented. On an average while there is one Personnel staff to look after the personnel management needs of every employees.
There is less than one full time person to look after the HRD needs of every 1, employees. This can be. Even those who are there are not well qualified in terms of learning methodology, human development and such other technical skills required to handle the competency building, commit building and culture building functions of HRD.
The structures do not follow the principles envisaged by Pareek and Rao and are not differentiated as outlined by them. Indian organizations seem to have played only lip sympathy to HRD. Where there is one he is loaded with recruitment, salary administration and such other roles, which are not development roles. HRD focuses on. Reports to HRD into it. However this is integrated into the performance appraisal and hence diluted.
The Feedback and review discussions are conducted more as a formality than with a high development orientation. It is there as a part of the performance appraisal in a few of these. Only one of the organizations is planning to use Assessment centers.
However there is very little of in-house competencies in OD. OD interventions are largely outsourced. Internal Faculty has been developed in most of these organizations. Those organizations covered under ISO certification programs have given a systematic and high emphasis to training and development activities. They are still to graduate from Training and Development orientation to creation of a learning environment.
The observations are derived from various audits. TABLE 2: It is not well implemented in the experience of the authors due to a lack of understanding and appreciation of the top management the significance of HRD and its linkages to business, b lack of competent HRD staff; c lack of professional preparation of HRD staff, and d inadequate understanding HRD conceptualizations and frameworks.
The recent HRD frameworks are conceptually more heavy, culturally not very sensitive to Asian cultures and are more sophisticated in terms of larger number of variables they cover and linkages needed. The use of these frameworks and models to Asian organizations is doubtful unless implementation problems like the one mentioned above are taken care of.
A good HRD climate can help in maintain and building a better HRD structure which involves an equal distribution of responsibilities and authorities among the HR personnel. HRD climate is well practiced in Indian organisations giving the HR personnel knowledge for to develop, how to develop and whom to develop. Organisational Development: Career Planning: The deliberate process through which a person becomes aware of personal career related attributes and the lifelong series of steps that contribute to his or her career fulfilment.
Demonstrable characteristics of a person that enable performance of a job. The process of teaching new employees the basic skills they need to perform their jobs.
Cite two examples from Indian organisation and discuss the HRD practices done in these Organisations? Effective climate leads to effective working. Hellriegel, D. Schneider, B. An Essay, Personnel Psychology, , 28, Oxford and IBH, Indian Institute of management 6. Guion, R. Websites http: Anju Verma Lesson No.: HR must take stock of its own work and set clear priorities. But to be truly tied to business outcomes, HR needs to join forces with operating managers to systematically assess the impact and importance of each one of these initiatives.
Which ones are really aligned with strategy implementation? Which ones should receive immediate attention and which ones can wait? Which ones, in short, are really linked to business results? Ulrich be1ieves that for HR to deliver excellence it should: Shared mind-set: To what extent does our company have the right culture to achieve our goals? To what extent does our company have the required knowledge, skills, and abilities? To what extent does our company have the appropriate measures, rewards and incentives?
To what extent does our company have the right organization structure, communication systems and policies? Capacity for change: To what extent does our company have the ability to improve work processes, to change and to learn? To what extent does our company have the leadership to achieve its goals?
Strategic partner- the management of strategic human resources, aligning HR and business strategy. Change agent- the management of transformation and change, creating a renewed organization. Administrative expert- management of firm infrastructure, re- engineering organizational processes. Employee champion- management of employee contribution, increasing employee commitment and capability.
The key functions of strategist, business partner, innovator and change manager are discussed in more detail below. They are guided by the business plans of the organization but they also contribute to the formulation of the business plans.
This is achieved by ensuring that top managers focus on the human resource implications of their strategies. They emphasize, in the words of Hendry and Pettigrew , that people are a strategic resource for the achievement of competitive advantage. Vertical integration or fit takes place when HR strategies are linked to and support business strategies. The business partner role As business partners, HR practitioners share responsibility with their line management colleagues for the success of the enterprise.
HR practitioners in their role as business partners are aware of business strategies and the opportunities and threats facing the organization. They are capable of analysing organizational strengths and weaknesses and diagnosing the issues facing the enterprise and their human resource implications.
They know about the critical success factors that will create competitive advantage and they can draw up a convincing business case for innovations that will add value.
In becoming a business partner, however, HR must still deliver effective administrative services. The innovator role Strategic approach to HRM will mean that HR specialists will want to innovate- to introduce new processes and procedures that they believe will increase organizational effectiveness. It has to be demonstrable that the innovation is appropriate, beneficial and practical in the circumstances, and can be implemented without too much difficulty in the shape of opposition from those affected by it or the unjustifiable use of resources- financial and the time of those involved.
HR specialists who aim to draw attention to themselves simply by promoting the latest flavour of the month, irrespective of its relevance or practicality, are falling into the trap. Strategies involve change, and failure to implement strategies often arises because the changes involved have not been managed effectively. HR practitioners can play major part in developing and implementing organizational change strategies. They must pay particular attention to managing change when implementing HR initiatives.
This means considering: TABLE 3. Creating a shared Do employees: Shaping a vision Do employees: Mobilizing Do the sponsors of the change: Making it last how Do the sponsors of the change: Knowledge of the business: Knowledge of HR practices: Management of change: They are there to envision how HR strategies can be integrated with the business strategy, to prepare strategic plans, and to oversee their implementation. They should play a major part in organization development and change management and in the achievement of coherence in the different aspects of HR policy.
HR directors who will most probably play a full strategic role as business partners are likely to be: The essential function of HR is to prove its excellence in executing strategies, to improve planning, communicate the importance of the soft, people centered issues. As a business partner the role expected of HR are as strategic partner, change agent, administrative experts and employee champion. HR staff should possess knowledge of business, knowledge of HR practices, as a competencies and as a management of change.
A manager who assists and advised line managers. The use of SWOT chart to compile and organize the process of identifying company strengths, weaknesses, opportunities, and threats. Competitive Advantage: Any factors that allow an organisation to differentiate its product or service from those of its competitors to increase market share. Benchmark Job: A general statement of its intended direction that evokes emotional feelings in organisation member. What do you mean by staffing HR functions?
How HR as a strategic partner is distinguished from HR as business partner? Describe various key functions expected from HR strategist. What do you mean by HR competencies? Kandula, R. Strategies, Design and Experiences. The course of action may deal with the choice of various means to achieve the desired goal and a plan for implementing the chosen action. Thus the HRD strategy adopted by an organization may deal with the following dimensions: What major purposes is the HRD strategy supposed to serve?
In what order are they expected to be used? Now it is widely acknowledged that integration of HR strategy with business strategy is important for organizational success. HR strategy embedded in business strategy of the organization not only serves to attain the organizational objectives but also act as a key resource for competitive advantages. In s the writers like Peter Drucker and McGregor laid down the stress on the need of visionary goal directed leadership and management of integration.
The origin of HRM as a defined school of thought is usually traced back to the s with a development of human resource accounting theory proposed by Flam holtz in This model was developed by Chandler , Galbrith and Nathanson and Fombrun et al.
The Context of Strategic Human Resource Management Policy in Complex Firms
They concluded that human resources could be obtained cheaply, used sparingly and developed and exploited to their full extent. The main contents of this model are policies and responsibility. They believed that commitment could be elicited from policies of mutuality, which in turn yield both better economic performance and greater human development. The main emphasis was on employer-employee relationship. These changes include: Human resource issues are; in fact, business related issues as they influence the essence of business profitability, competitiveness, adaptability and flexibility.
There are similar to hygiene factors suggested by Herzberg The presence of fundamental may not help the success, whereas their absence can adversely affect the developmental initiatives. The design of an organizations compensation system may have a critical impact on the organizations ability to achieve its strategic goals. Some of the new and improved methods of pay suggested by Dell and Mc Adams are flex-benefits, gain sharing, skill-based pay, performance shares, two-tier wages, bonuses and lump-sum merit awards.
An organization must consider internal equity and external equity prior to design compensation programs. External equity occurs when an employer pays wage rates that correspond to those prevailing in the external labour market. Internal equity is the objective of setting wage rates that equates the jobs internal worth. The objectives of compensation system include: Appropriate welfare provisions 2. Physical environment of work. The changes in these two brings about a temporary improvement in morale, leading to increased productivity.
A well-maintained and designed office environment can promote individual well being and productivity. In the First Five-Year Plan of Government of India, it was observed that working conditions required to be improved to a large extent in order to get the best production out of a worker. The worker should at least have the means and facilities to keep himself in a state of health and efficiency. It was continued in the Second Five Year Plan recommending that due attention should be paid to the provision of welfare amenities to improve the working conditions of workers, and more importantly, to the effective implementation of the amenities that had already been provided under various states.
The success of Japanese companies on a global scale has been recognized to be linked, at least in part, with advanced employee family welfare polices Townley, There are some reasons quoted regarding welfare provision for workers. According to Baird and Meshoulam , the human resource professionals need five kinds of skills to adopt a strategic orientation. These are: Training Training and development of employees is attracting increasing attention.
The literature of recent years has stressed the importance of trying training to strategic business planning. The argument is convincing. Strategy linked training is essential to the success of contemporary firms challenged by increasing external and internal changes of organization. The process of training and development must be tied to the overall strategic objectives of the organization.
Larson explains the reasons for such changes. Training is a prime instrument in human resources and plays a vital role in securing organizational goals.
Performance Appraisal Performance appraisal is the cornerstone of an effective Human Resource system. Performance measurement is crucial for business. It is typically seen as having two purposes: Administration and development. Administration comprising such action as determining job assignments, rises, promotions and terminations and development consisting of providing feedback, coaching and identifying training needs.
The primary reasons for implementing performance appraisal system in the organization are compensation, performance improvement, feedback, documentation, promotion, training, transfer, discharge, lay-off, personnel- research, and manpower planning. However, Goodale identifies the failure of performance appraisal. The two reasons stated are: Routine job and repetitive work become monotonous to workers. It is used to achieve organizational goals effectively and efficiently.
There are five ways to enrich the job. Formation of natural work unit: The job task should be clearly identified, workers have some control over the job. This leads to bringing a sense of responsibility among them. The formation of natural work unit contributes to two core job dimensions: Establishment of workers-client relationships: Workers seldom come in contact with the ultimate user of their product or service.
If such relationship is maintained, job commitment and motivation will usually be enhanced. It contributes towards three core dimensions: Skill variety increases because a worker has a chance to maintain and manage a relationship with client. Autonomy increases because the worker is given responsibility to decide how to mange relationships with client.
Feedback increases because direct contact has free movement of views and worker can receive both praise and criticism for his work. Combination of task: A series of simple tasks are combined to form a new and larger work schedule. It also contributes to skill variety and task identity. Vertical loading: It occurs when the gap between doing and controlling aspects of the jobs is reduced.
The reserved responsibilities are now delegated to workers as a part of their job. It contributes to task significance and autonomy. Opening of feedback channels: There are ways of opening of feedback channels so that each worker can monitor his or her performance. This principle helps to overcome the problem of failure to tell people how well they are doing. Changing employee attitudes, tight labour markets, increased pressure to control employee retention and productivity have stressed the time frame for considering actions affecting employee careers.
The one of the ideal way to career development is to integrate the needs of the employee with the goals of job satisfaction and growth. The organization needs to tap the creative potential of all its employees to a far greater extent than ever before.
There are three approaches to charting the career path: The Traditional approach: Employees and managers simply look at the chain of command in each organizational unit. Career progress is equated with upward mobility. Career path approach: Individuals can move into altogether different job classes so long as similarities exist in activities or results.
Lattice or network approach: This is a way to establish a relationship between jobs. Individuals-are capable to move to any other position over time. HR planner develops a matrix that describes what skill and what level of skills proficiencies are required to perform satisfactorily in every job.
This information helps planner to develop a comprehensive directory and help an individual chart a course for career movement in almost any direction. Hence, a growing number of organizations are creating full- fledged career development program. Communication Communication as an integral part of organization has increasing attention as to communicating the various business information to various kinds to employees. The content of communication has also varied widely and covered such issues as marketing, sales results, future developments, company policy, and industrial relation.
The various forms of communication have included the regular reports from senior management, special employee report similar to annual report to shareholders, letters and articles in company newspapers and circulars on notice boards or in pay slips.
HRM literature on the role of communication places emphasis on information about the organization strategy and financial results so those employees are more fully involved in the organization. Information sharing is an essential component of high performance work systems for two reasons.
First, the sharing of information on things such as financial performance, strategy and operational measures conveys to the employees that they are trusted.
Second, information is power, and sharing information spreads that power. Involvement and Empowerment The s and s have seen a substantial increase in the adoption of employee involvement techniques by employers. The main stress is to increase employee commitment to their work or to their organization in order to facilitate workforce suitably.
There are three general participative programs. Parallel suggestion involvement 2. Job involvement 3. High involvement system. Beside this, the new employee involvement explains the four main types of techniques which can be found either alone or in various combination.
Joint consultation 2. Various types of direct communications like team briefing, employee financial reports, videos, and papers, news sheets that mainly disseminate information downward to individual employee. Forms of financial participation, such as shares, profit, and bonus schemes. India has a very long history of workers participation in management.
This experience dates back to , when the Tata Iron and Steel Company made an initial attempt to involve its workers in the management of the company. These factors are discussed here in detail.
It creates conflict between employees and employer. The increased communication with employees, team participation technique, harmonization of terms and conditions, appraisal and reward can lead to difficulties between management and employees.
It is believed that union management relationships are not voluntary. Management is required by law to bargain with union. Developmental initiatives could also turn out to be good for unions and not for employers. A few studies suggested that Quality-of-work- life QWL participation result in positive outcomes for unions. There are two strong conflicting arguments based on sound analytical and empirical studies. One is positive relationship and another is negative relationship.
The positive relationship: The approach assumes that mutual compatibility exists between the need of employees and employers. In the long run, there is a co-incidence of interest between employees, management and shareholders. If they have some conflicts in interests in short run, it would become ignored in lieu of common interest in long run. At bottom, the interests of unions and management are similar and compatible.
They will tend to be trustworthy, mutually supported and helpful if they are given the chance. In a pro-active relationship, there is no need to take an opposing stand between union and management. In that way, union can become a supportive and collaborative unit with management for HRD initiatives, creating the right climate rather than opposing approaches and stands. An example is Durgapur Steel Plant, which achieved a major modernizing program through consultative method at every stage.
The developmental interventions in the field of IR can help a great deal in creating a basic climate of trust and problem solving and bring out IR from traditional chaos, violence, conflict and litigation.
The negative relationship: HRM poses a threat to unions in following ways: According to Hyman, the object of joint consultation is replacing the collective bargaining by direct communication and involvement which aims to provide relationship between management and individual employees without mediation of unions.
HRM is in essence the development of a set of policies, practices and arrangements designed essentially to individualize industrial relations, thus circumvent the unions and weaken individual membership commitment and loyalty to the union.
And quite a few people in the workforce are less prepared for the changes and less likely to welcome. There might be some problems such as, role and status conflicts, peer relations among supervisors, and relationship with superiors. These are increased emphasis on various participative management techniques, increased use of self managed and autonomous work groups, increasing application of computer driven automation and information management in work place, continued growth in the size and importance of specialized staff units.
Concern of Workers Concern of individual workers range from fear of substitution, loss of employment, possibility of redeployment, break of traditional norms, more exploitation, etc. Participation in developmental activities leads to a conflicting situation for an individual worker in terms of his loyalty to a union and organization. Industrial Relation Scenario The employment relationship in Indian organization is not voluntary. Labour legislation has placed more emphasis on regulatory, conflictual relationships.
This hinders the developmental initiatives. In the year alone, a total of 16,44, workers are involved in strikes and lockouts. Labour Status That our trade union and IR laws. Our IR system confers on the Government to mediate between labour and management. The government does not want to give up its own power, but wants others to change. There are central and state laws governing labour and trade unions. All of them bestow rights, privileges, facilities, remuneration and pay hikes with almost negligible linkage to performance of the individual or his contribution to the business result of the company.
The industries cannot progress effectively in the present scenario. Management of many companies feel overwhelmed by existing labour laws and contend themselves by fulfilling their obligation mentioned in labour laws and thus do not examine the possibilities of going beyond statutory requirement and allocate resources for growth and development of workers. The significant advances in production and productivity will need to have a relook at the existing laws.
The future conflict resolution will have to be free from outside influence, possessing independent character and provisions of industrial relations legislations should inspire greater confidence in the parties. Gosh points out that the laws on occupational health and safety in India leave wide gaps, and the larger part of the working population is not protected. Sometime, it may be seen that increasing government legislation and regulation designed to further social goals and ensure fairness in employment practices, endanger a legislate flexibility and proactiveness.
When decision are made in firms with an overriding concern for legality and avoidance of political litigation, other important decisions may be over looked. Trainability The term trainability means aptitude of workers to learn and practice new things, physical health standards, academic background, and age which influences the workers development practices.
Workers with better aptitude; health and academic background would be more enthusiastic in participating workers development activities. Or, the workers lacking these features have limited participation in those activities. Employment Externalization Employment externalization in organization occurs through two different forms: Contingent Employment It is important to bring a workforce that has the ability to achieve competitive success that cannot be readily duplicated by others.In addition, managers and employees need clear knowledge which facilitates the dissemination of information in a rational way and the capacity to analyze information in a truly stressful situation.
How do we compete? San Francisco: They suggested a number of ways in which leadership can connect with SHRD interventions in a crisis management context. Problem Statement The importance of theory to the development of professional disciplines such as HRD is one of the most frequently discussed topics in the field Holton, a; Kuchinke, ; Lynham, ; McLean, ; Swanson, a, ; Torraco, , ; Weinberger, Strategic Human Resource Management.
The resource-based view focuses on an internal analysis of the firm providing an extremely important avenue for researchers to examine the ways that firms attempt to develop human resources as a competitive advantage Wright et al.
The purpose of this study is to explain that the application of the model can either determine the human resource development which can lead to effective crises plan in the food and beverage department. Choose an organisation and find out its traditional and strategic HR roles. For example, a reputable international hotel chain located in the Mediterranean discovered a major food poisoning outbreak that affected thousands of customers.
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