HRM – Additional notes

Strategic human resource management may be defines as the integration of

HRM with the strategic goals and corporate strategy so as to improve business
performance and achieve organisational goals. It means accepting the HR function as
a strategic partner in the formulation and implementation of the company’s strategies
through planned HR activities such as recruiting, selecting, training and rewarding
personnel. The aim of strategic HRM is to ensure that the culture, style, and structure
of the organization, and the quality, commitment and motivation of employees
contribute fully to the achievement of objectives.
According to Writing and Mc Mahan (1992)
“SHRM as the pattern of planned human resource deployment and activities
intended to enable firm to achieve its goals.”
Strategic Human Resource Management (SHRM) is the relationship between
HRM and strategic management in a firm. It is the pattern of human resource
development and activities intended to enable the firm to achieve its goals.
Difference between Personnel Management HRM and SHRM
Based of Personnel Human resource SHRM
difference management management
1. Objectives Procurement and Managing efficient Concerned with HR
effective staffing of utilization of human effectiveness and
employees resources performance in
context of strategic
business plan
2. Job design Based on skill, Based on Based on integrated
knowledge and division specialization, transformational
of work functional and systems with
scientific flexible job
management structure
3. Major Selection, placement Employees’ Specialisation,
activities and maintenance of HR motivation outsourcing jobs,
performance and accountabilities and
evaluation strategical
peroformance
4. Role of Maintenance of Development skills Develop proactive
Managers employees’ and learning and
performance General transformation transformational
staffing functions skills
5. Area of General staffing Material,technology, People and their
Investment functions equipments and skills, knowledge
resources and abilities
6. Time horizon Short and medium term Short term Short, medium and
long terms
7. Initiative for Indifferent attitudes Slow and segmented Planned, flexible
change with change scenario but not integrated and systematic
 with larger issues design of change in
HR strategies
8. Control Almost democratic Bureaucratic ways to Scientific control
control over HR follow rules, policies with flexible
activities and programmes attitudes
9. Accountabilitie More and efficient job It is based on cost Long stained
s performance optimization employees relations

Distinction between HRM and HRD

Point of Distinction HRM HRD

1. Status It is an independent function It is an integrated system
with independent sub-functions consisting of inter-dependent
sub-systems
2. Orientation It is a service and reactive It is a proactive function
function
3. Aims It seeks to improve the It seeks to develop the total
efficiency of people and organization and its culture
administration
4. Incentives used It focuses on salary, economic It focuses on autonomous
rewards, job simplification and work groups, job challenges
job specialisation for and creativity for motivating
motivating people. people
5. Responsibility It is considered to be the It is the responsibility of all
responsibility of human managers
resource manager
6. Morale productivity It considers improved It considers improved
relationship satisfaction and morale as the performance the cause of
cause of improved improved satisfaction
performance

Distinction between Placement and Induction

Basis of Distinction Placement Induction

1. Meaning Assigning a specific job to Making a new employee
each selected candidate familiar with the organisation,
the job and the people
2. Sequence It procedes induction It succeeds placement
3. Time period A short process usually lasts on A long process usually lasts
day more than one day
4. Training No training is involved Training is involved
Distinction between Selection and Placement

Basis of Distinction Selection Placement

1. Meaning It is the process of choosing It is the process of putting the
those candidates who best meet selected candidates on specific
the job requirement jobs
2. Matching Matching the person with the Matching the position with the
position person
3. Number Selection is best done when the Placement is best done when
number of candidates is larger the number of available jobs is
than the number of available larger than the number of
jobs employees
4. Sequence It proceeds placement It succeeds selection

Difference between Recruitment and Selection

Basis of Distinction Recruitment Selection

1. Meaning It is the process of searching It is the process of choosing
for prospective candidates and the right candidates
encouraging them to apply for
vacant jobs
2. Nature It is a positive process It is a negative process
3. Purpose It aims to create a large pool or Its aim is to identify and reject
candidates unsuitable candidates
4. Sequence It always proceeds selection It always succeeds recruitment
5. Contract of service It does not result in a contract It leads to a contract of
of service services between the employer
and the selected candidate
6. Process It Involves searching It involves camparison and
choice

Procedure for Disciplinary Action

1. Preliminary Investigation: First of all a preliminary inquiry should be held
to find out whether a prima facie case of misconduct exists.
2. Issue of a charge sheet: Ones the prima facie case of micro conduct is
established, the management should proceed to issue a charge sheet to the employee.
Charge sheet is merely a notice of the charge and provides the employee an
opportunity to explain his conduct. Therefore, charge sheet is generally known as a
show cause notice. In the charge sheet, each charge should be clearly specified. There
should be a separate charge for each allegation and charge should not relate to nay
matter which has already been decided upon.
3. Suspension Pending Enquiry: In case the charge is grave a suspension
order may be given to the employee along with the charge sheet. According to the
industrial Employment (Standing Orders) Act, 1946, the suspended worker is to be
paid a subsistence allowance equal to one-half of his wages for the first ninety days of
suspension and three-fourths of the wages for the remaining period of suspension if
the delay in the completion of disciplinary proceedings are not due to the worker’s
conduct.
4. Notice of Enquiry: In case the worker admits the charge, in his reply to the
charge sheet, without any qualification, the cmployer can go ahead in awarding the
punishment without further inquiry. But if the worker does not admit the charge and
the charge merits major penalty, the employer must hold enquiry to investigate into
the charge. Proper and sufficient advance notice should be given to the worker
indicating the date, time and vevue of the enquiry so that the worker may prepare his
case.
5. Conduct of Enquiry: The enquiry should be conducted by an impartial and
responsible officer. He should proceed in a proper manner and examine witness. Fair
opportunity should be given to the worker to cross examine the management
witnesses.
6. Recording the Findings: On the conclusion of the enquiry, the enquiry
officer should record his findings and reasons thereof. As far as possible he should
refrain from recommending punishment and leave it to the decision of the appropriate
authority.
7. Awarding Punishment: The management should decide the punishment on
the basis of findings of the enquiry, past record of the worker and gravity of the
misconduct. Warning, fine, withholding increments, demotion, suspension and
termination are the types of punishment that may be used.
8. Communicating Punishment: The punishment awarded to the worker
should be communicated to him quickly. The letter of communication should contain
reference to the charge sheet, the enquiry and the findings. The date from which the
punishment is to be effective should also be mentioned.
9. Follow-up: After taking the disciplinary action, it is necessary to see
whether the action had the desired effect on the employee.
Objectives of Industrial Relations
The main objectives of industrial relations are as follows:
1. The develop and maintain harmonious relations between management and labour
so essential for higher productivity of labour and industrial progress in the
country.
2. To safeguard the interests of labour as well as management by securing the
highest level of mutual understanding and goodwill between all sections in
industry.
3. To establish and maintain industrial democracy based on the participation of
labour in the management and gains of industry, so that the personality of every
individual is fully recognized and developed.
4. The avoid all forms of industrial conflict so as to ensure industrial peace by
providing better working and living standards to workers.
5. To rise productivity in an era of full employment by reducing the tendency of
higher labour turnover and absenteeism.
6. To bring about Government control over such industrial units which are running
at loses for protecting employment or where production needs to be regulated in
public interest.
7. To ensure a healthy and balance social order through recognition of human
rights in industry and adaptation of complex social relationships to the
advancements of technology.
Distinction between HRM and IR
HRM IR
1 There are two main parties- 1 There are four parties-employee,
. employee and employer . employer, trade unions and
government
2 Formulation and 2 The implementation of HRM policies
. implementation of HRM . results in IR
policies
3 Conflicts arising out of poor 3 Sound IR contribute to organizational
. IR require reformulation of . goals
HRM policies.
4 Individual employee contacts 4 Employees as a group contact even the
. with the immediate superior . top management.
5 Grievance and disciplinary 5 Collective bargaining used to settle
. procedures used to solve . terms and conditions of employment.
employer-employee conflicts

Concept of Industrial Relations (IR)

Employers Employer’s Associations

Employees Employees Trade Unions

Government Courts and Tribunals

 Industrial relations means the relationships between employers and employees
in industrial organizations. According to dale Yoder, the term industrial relations
refers to the whole field of relationships among people, human relationships that exist
because of the necessary collaboration of men and women in the employment process
of modern industry.
In the broad sense, the term industrial relations also include the relations
between the various unions between the State and the unions as well as those between
the employers and the Government. Relations of all these associated in industry may
be called industrial relations. The subject, therefore, includes individual relations and
joint consultation between employers and workers at the place of work.
VERTICAL MOBILITY & HORIZONTALLY MOBILITY:-
In any organization the mobility or movement of employees can be vertical or
horizontal. Vertical mobility takes place when there is a change in the position of the
employees in the organizational hierarchy, which leads to upward or downward
movement. Promotion, Demotion etc are examples of vertical mobility. In promotion,
there is upward movement of an employee from one job or position to another higher
one, with increase in salary, status, authority and responsibilities. In the case of
demotion, there is downward movement of an employee from one job to another with
decrease in salary, status, authority and responsibilities.
Horizontal mobility takes place when there is change in the position or status of
an employee, without change in the position or status in the organisational hierarchy.
The organisational status of the employee remains unchanged. There will not be any
change in salary, status, authority and responsibilities. Transfer, job rotation etc are
examples of horizontal organisational mobility.