Vijayanagara Sri Krishna University M.

com 3rd Semester

STRATEGIC HUMAN RESOURCE MANAGEMENT
Module 1: Introduction:
✓ Meaning of Strategic Human Resource Management:
Strategic human resource management is the connection between a company's human
resources and its strategies, objectives, and goals. The aim of strategic human resource
management is to: Advance flexibility, innovation, and competitive advantage. Develop a fit for
purpose organizational culture.

✓ Definition of Strategic Human Resource Management:

❖ SHRM can be define as “The linking of human resources with strategic goals and objectives
in order to improve business performance & develop organizational flexibility & competitive
advantage”
❖ According to M Story: “SHRM is a distinct approach to employment management which
seems to achieve competitive advantage through the strategic plans of highly committed and
work force using an formulating a cultural structural and personal techniques.”

✓ Evolution of SHRM
1. Contingency Perspective and Fit.
2. Resource- Based View of the Firm & Social Capital,
3. HR System Components and Structure.
4. Expanding the scope of HRA Beyond the Focal Organization
5. Achieving HR Implementation & Execution, By translating the rhetoric into practice.
6. Measuring the outcomes of SHRM by (E.G., Balanced Scorecard Approach)
7. Research Methodological issues that stress the importance of Evidence Based Management.
8. Adoption & Use of HR Metrics
9. Application of “Six Sigma” Process to HRM.

✓ Strategic HR vs. Traditional HR:

Sl Basis Traditional HRM Strategic HRM
no.
1 Nature Short term nature. Short, medium & Long term nature as
required.
2 Guide lines Contracts or only Vision & Mission
3 Scope Personal development General Management
4 Objective Organizations interests Organization & Individual interest
5 Trust Monitoring Nurturing
6 Function Traditional administrative function Modern administrative function.
7 Role To attain the goals To design the goals
8 Beliefs Conformity Can-do-outlook.
9 Approach Segregated or staff functions System approach
10 Focus Focus on current employer of the Focus on needs of the company.
organization
11 Orientation Input oriented Result Oriented.

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 12 Basis Routine Based Change Oriented.
13 Monitoring Compliance Monitoring Performance Monitoring.

✓ Key factors in Strategic Human Resource Management:

1. Strategies for organizational leadership:- Strategic leadership is the responsibility of many
people, not just those at the top a process of never ending individual team and organization
learning and cannot be expected by a set of procedure.
2. Strategies for talent growth:- Talent management refers to the anticipation of required
human capital for an organization and the planning to meet those needs every thing done to
recruit, retain, develop, reward and make people perform a part of talent management as well
as strategies work force planning.
3. Strategies for promotion of high performance:- A high performing team is a group of
people who store a common vision goals materiel & who collaborates challenge and hold
each other accountable to active as to standing results strategies for promotion to workers for
their performance once in the organization.
4. Strategies for human resource planning:- A high performing team is a group of people who
stores a common, Human resource planning is a process that identifies current on future
human resource needs for an organization to achieves its goals. HRP should serve as a link
between human resources management and the overall strategic plan of an organization.
5. Strategies for employee development:- A well thought out plan provides your employees
with opportunities and clear direction on how to increase their skills and advances their
carrier But on employee development plan or program.
6. There is some organizing scheme linking individual HP interventions so that they are mutual
supporting.
7. Much of responsibility for the management of human resource is developed down the line.

✓ Role of HR in Strategic Planning:

1. Selection & Staffing
2. Organization development
3. Training and development
4. Risk management, leading & participating
5. Increase in employee potentiality
6. Skill development, Job rotation these are the role of HR.
7. Strategic partner
8. Employee act
9. Agent for change
10. Cultural translate.
11. Legal expert
12. HR functional expert
13. Talent managers
14. Organizations ambassador
15. Board, senior & executive resources.

✓ Strategic Formulation:
Strategy formulation is the process by which an organization chooses the most. appropriate
courses of action to achieve its defined goals. This process is. essential to an organization's
success, because it provides a framework for the. actions that will lead to the anticipated results.

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Strategy Formulation Five relevant components:
1. Mission: statement of the organization's reasons for being.
2. Goals: what the organization hopes to achieve in the medium-to long-term future
3. External analysis consists of examining the organization's operating environment to identify
strategic opportunities and threats.
4. Internal analysis attempts to identify the organization's strengths and weaknesses.
5. Strategic choice is the organization's strategy, which describes the ways the organization will
attempt to fulfill its mission and achieve its long term goals.

✓ Strategic Implementation:
Strategy Implementation refers to the execution of the plans and strategies, so as to
accomplish the long-term goals of the organization. It converts the opted strategy into the moves
and actions of the organization to achieve the objectives.
Process of Strategy Implementation:
1. Building an organization, that possess the capability to put the strategies into action
successfully.
2. Supplying resources, in sufficient quantity, to strategy-essential activities.
3. Developing policies which encourage strategy.
4. Such policies and programs are employed which helps in continuous improvement.
5. Combining the reward structure, for achieving the results.
6. Using strategic leadership.
Aspects of Strategy Implementation:
1. Creating budgets which provide sufficient resources to those activities which are relevant to
the strategic success of the business.
2. Supplying the organization with skilled and experienced staff.
3. Conforming that the policies and procedures of the organization assist in the successful
execution of the strategies.
4. Leading practices are to be employed for carrying out key business functions.
5. Setting up an information and communication system, that facilitate the workforce of the
organization, to perform their roles effectively.
6. Developing a favorable work climate and culture, for proper implementation of the strategy.

✓ External context of strategic HRM:

1. Unions:- Trade unions are formed to safeguard the interest of its members / workers. HR
activities like recruitment, selection, training, compensation, industrial relations are carried
out in consolation with trade unions.
2. Laws and Regulations:- Federal and State workplace laws and regulations are external
factors affecting human resource management that require HR to ensure the company is in
compliance. Regulations can influence how a company goes about hiring. Training
compensating and even disciplining its workers.
3. National culture:- Culture refers to complete whole which includes knowledge, belief, art,
moral, laws, customs and other capabilities & habits acquired by an individual’s as a member
of society.
4. Labour Market:- When unemployment is high and many more qualified candidates exist
than job opportunities the amount of compensation you must provide is less than when a
shortage of candidates exists and you are competing against multiple other companies to
recruited employees.

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 5. Industry:- An industry is a group of companies that are related based on their primary
business activities. ... Individual companies are generally classified into an industry based on
their largest sources of revenue.
6. Professional Bodies:- Like other professional bodies, the NIPM as the HR professional body
regulates the functions of HR practitioners in India. For this the NIPM in of ethics which the
HR practitioners are expected to declare their allegiance to the code. Thus, professional
bodies also influence HR functions of an organization.

✓ Organizational context of SHRM:

1. Economic:- Economic forces include growth rate and strategy, industrial production, national
and per capita incomes, money and capital markets, competitions, industrial labour and
globalization. All these forces have significant influence on wage and salary levels. Growing
unemployment and reservation in employment also affect the choice for recruitment and
selection of employees in organizations.
2. Political:- Political environment covers the impact of political institutions on HRM practices.
For example, democratic political system increases the expectations of workers for their well
being.
The total political environment is composed of three institutions:
a. Legislature:- This is called Parliament at the central level and Assembly at the state
level A plethora of labour laws are enacted by the legislature to regulate working
conditions and employment relations.
b. Executive:-It is the Government that implements the law. In other words, the
legislature decides and the executive acts.
c. Judiciary:- This is like a watchdog above the two. It ensures that both the legislature
and the executive work within the confines of the constitution and also in the overall
interest of the people. These affect, in one way or the other, all HR activities from
planning to placement to training to retention and maintenance.
3. Technological:- Technology is a systematic application of organized knowledge to practical
tasks.
Technological advances affect the HR functions in more than one way:
First; technology makes the job more intellectual or upgraded.
Second; it renders workers dislocated if they do not equip themselves to the job.
Third; job becomes challenging for the employees who cope with the requirements of
technology Fourth, technology reduces human interaction at the work place. Finally job-
holders become highly professionalized and knowledgeable in the job they perform.
4. Demographic:-Demographic variables include sex, age, literacy, mobility, etc. Modem work
force is characterized by literate, women and scheduled caste and scheduled tides workers.
Now, workers are called knowledge workers’ and the organizations wherein they work are
called ‘knowledge organizations’.
As such, the traditional line of distinction between manual and non-manual workers is
getting blurred. Employees are demanding parity in remuneration and responsibility among
various categories and levels of employees.

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✓ Barriers to strategic HR
1. Short term mentality:- Short-term mentality and focus on the current performance of
SFIRM is the first barrier. Every manager act, long-term focus, because the organization has
been established with long-terms objectives/focus.
2. Strategic inability:- Very often SHRM does not think strategically and he cannot think it to
due in capability. This type of inability may arise for many reasons as a lack of technical
knowledge, insufficient training, and the like.
3. Lack of appreciation:- Sometimes top managers do not recognize the activities of strategic
human resource management. So SHR manager does not get interested in doing any
innovative venture. A few appreciations may get them a substantial mental boost up.
4. Failure understands role:- General managerial roles may not be fully understood by be
managers. This failure is due to a lack of knowledge about the specialty of a degree of
responsibility. This failure may create distance between these managers.
5. Difficulty in quantifying outcomes:- Many outcomes may not be quantified. But
SHRM tries to enjoy the contribution. This is not always possible. Participation, work, etc.
type function cannot be quantified because of their intangibility.
6. Wong perception on human assets:- Investment in human assets may be regarded as a high
risk than that of technology and information. Though these technologies are run by human
resources. This wrong perception may inhibit progress.
7. Resistance:- SHR Managers may be resisted because of the incentives for change that might
arise. The change implemented demand some incentives for efforts to execute the changed
program. If these incentives are not given reasonable, they may create barriers to SHRM.
In addition to these barriers, there may be other points also. For example, a lack of
union support, government backing, and weak financial position of the company can act as
bathers to SHR management.

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 Module 2: Strategic Fit Frameworks

✓ Meaning of Business Strategy:

A business strategy is the means by which an organization sets out to achieve its desired
objectives. It can simply be described as long-term business planning. Typically a business
strategy will cover a period of about 3-5 years (sometimes even longer).
A business strategy is a set of guiding principles that, when communicated and adopted in
the organization, generates a desired pattern of decision making. It is therefore about how people
throughout the organization should make decisions and allocate resources in order accomplish key
objectives. A good strategy provides a clear roadmap, consisting of a set of guiding principles or
rules, that defines the actions people in the business should take (and not take) and the things they
should prioritize (and not prioritize) to achieve desired goals.
Implementing A Business Strategy:
Implementing your plan includes several different pieces and can sometimes feel like it needs
another plan of its own. The steps below may be used as a base implementation plan. Modify it to
make it your own timeline and fit your organization’s culture and structure.
1. Finalize your strategic plan after obtaining input from all invested parties.
2. Align your budget to annual goals based on your financial assessment.
3. Produce the various versions of your plan for each group.
4. Establish your scorecard system for tracking and monitoring your plan.
5. Establish your performance management and reward system.
6. Roll out your plan to the whole organization.
7. Build all department annual plans around the corporate plan.
8. Set up monthly strategy meetings with established reporting to monitor your progress.
9. Set up annual strategic review dates, including new assessments and a large group meeting
for an annual plan review.
Elements of Business Strategy:
1. Creating the key objectives and goals of your business for the short and long term and
creating a message employees and colleagues can stand behind.
2. Reflecting critically on the real weakness of your business internally and externally.
3. Evaluating the possible risks your business may encounter .i.e weakness in product/service
performance compared to the competition.
4. Evaluating future market changes that will or may effect your customer and anticipating those
changes.
5. Describing your financial features and requirements. For example, displaying your
costs, ROI, and profits and losses, and what future investment may be needed.
6. Once you have created your business strategy it is important to then monitor its success. You
can make sure your business strategy is on schedule and progress is always on track by using
this planning document as a bench mark.
Types of Business Strategy:
1. Differentiation:- Companies undertaking this strategy must prove to the customer that they
are different (and better) than the competition. A differentiation business strategy is less
concerned with price. Your company can command higher prices for products or services
because they stand out in some way; they are worth the extra money. Your long-term strategy is
to cut costs in the areas that don't contribute to your differentiation, so you can remain cost
competitive. Starbucks, for example, charges more for its coffee than Dunkin' Donuts. But it
differentiates itself by focusing on high-quality products and sustainability, and by cultivating a

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 brand image as the coffee of choice for the busy professional (while 'America runs on
Dunkin doesn't have that same exclusivity).
2. Cost Leadership:- This is an easy business strategy to explain, but it's difficult to implement.
The whole goal here is to be the cheapest provider of your product or service. Wal-Mart is the
perfect example of cost leadership. They focus on providing a wide range of goods— – you can
buy almost anything there, from Easter baskets to caskets—at rock-bottom prices. For most
small business professionals, this strategy is out of reach. It works for large companies because
they are selling on a massive scale. But you don't want to reduce your profit margins when you
have fewer customers.
3. Focus:- Unlike differentiation and cost leadership strategies, a niche business strategy focuses
on one small portion of the market. You're fulfilling a need that perhaps fewer people have, but
there's less competition from other businesses. Think about craft beers, or nursing scrubs.
Your marketing efforts are targeted, which can make them easier to hit. If
you're advertising your dog food in Dog Fancy magazine, you're definitely reaching people who
own or are interested in dogs.

✓ HR strategy:
Human Resource Management (HRM or HR) is the strategic approach to the effective
management of people in a company or organization such that they help their business gain
a competitive advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives. Human resource management is primarily concerned with the
management of people within organizations, focusing on policies and systems. HR departments
are responsible for overseeing employee-benefits design, employee recruitment, training and
development, performance appraisal, and reward management, such as managing pay and benefit
systems. HR also concerns itself with organizational change and industrial relations, or the
balancing of organizational practices with requirements arising from collective bargaining and
governmental laws.

✓ HR bundles approach:
In general terms the bundles approach is also termed as internal fit or horizontal integration.
The purpose of bundling is to bring about coherence b/w HR practices. Coherence exist when a
mutually reinforcing set of HR practices is developed to contribute to the strategic objectives of
the organization so that these practices ensure the matching of resources to the needs of
organization & bring about the performance quality.

✓ Best practice approach:

Best practice approach believes that there is a set of best HRM practices and adopting them will
lead to superior organizational performance. The HR practices to be followed are:
1. Employment security
2. Selective hiring
3. Self-managed teams or team working
4. High pay contingent on company performance
5. Extensive training
6. Reduction of status differences
7. Sharing information

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✓ Human resource planning:
Human Resource Planning (HRP) has gained in its importance in the recent years. The significance and
objectives are dealt with in detail with steps in HRP like deciding objectives and goals, Estimating the
future organizational structure and man power requirements, Auditing human resources, planning job
requirements and job descriptions, developing a human resource plan.
The major activities of HRP has the five areas like:
1. Demand Forecasting:- Refers to the estimation of the future need for Human Resources in
the context of corporate and functional plans and forecasts of future activity levels of the
organization. Demand for Human Resources in an organization should be based on annual
budgets and corporate plan, translated into activity levels, for each function and department.
In a manufacturing concern, the starting point is the sales forecast and targets. Based on these,
production plans are prepared specifying the numbers and types of product to be made over a
specific period. Then the number of people, skill levels, etc., to accomplish the sales and
production targets are estimated. The human resources requirement for a given level of
operations vary in the same organisation over different points of time or among organisations
depending upon the production technologies, process, make or buy decisions etc.
2. Supply Forecasting:- Every organization will have two major sources of supply of human
resources: Internal and External. In unionized firm, up to certain job levels agreements may
determine the ratio of internal and external sources of supply. Manpower flows in and out of
an organisation can be of a variety of reasons. Policies affecting each of these aspects need to
be reviewed regularly to assess their possible effects on human resource supplies.
3. Determining Human Resources Requirements:- Human resource requirements are
determined by relating the supply to the demand forecasts and identifying deficits or
surpluses of human resources that will exist in the future. Table shows proforma of how
demand and supply forecasts can be scheduled over a period of 5 years. The reconciliation of
demand and supply forecasts gives the numbers of people to be recruited or made redundant
as the case may be. This forms the basis for the action programme for HRP.
4. Action Planning:- The human resource requirements identified with the above procedure
need to be considered within a strategic framework. Organisations operate in a changing
environment. So, they do not remain static. Manpower structures also do not remain static.
Review of activities and roles of persons at different levels and O & M studies may provide
useful insights and opportunities to modify assumption about manpower structures, job design
etc., and change the estimate about requirements.
5. Monitoring and Control:- While assessing future requirements, the estimates depend mostly
upon the nature of human resources assumptions in the organisations. Corporate strategy can
influence manpower strategy and vice-versa. Here the three approaches we can consider are
zero bases budgeting, ideal and realistic.

✓ HRM performance linkages:

Performance management is the activities and processes that focus on these areas to maintain and
improve employee performance in line with an organization’s objectives. Ideally, performance should
be managed holistically, throughout the range of HR activities and processes.
Measures of HRM performance:
1. Revenue per Employee. Revenue per employee helps you determine the value of employees
to your business. ...
2. Cost per Hire. ...
3. Employee Turnover. ...
4. Overtime Percentage. ...

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 5. Absenteeism. ...
6. Length of Service. ...
7. Job Satisfaction Rate. ...
8. Profit per Employee.

✓ Firm performance:
The firm performance as an achievement or results obtained by management, economics, and
marketing in providing competitiveness, efficiency, and effectiveness to the company. Firm
performance measured by using financial ratios of return on assets

✓ Sustained competitive advantages through inimitable HR practices

1. Motivation of employees skills.
2. Cost reduction.
3. Reality enhancement.
4. Innovation
5. Creativity
6. Workplace flexibility.
7. Corporate culture.
8. Behaviour of employees
9. Risk taking
10. Rational logical intelligence.

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 Module 3: Strategic Staffing
✓ Recruitment and Selection Strategies:
Meaning of Recruitment:- Recruitment is a positive process to searching for prospective
employees and stimulating them to apply for the job in the organization.
When more persons apply for jobs then there will be a scope for recruiting better candidates.
Meaning of Selection:- Selection is process of choosing the right candidates who is more suitable
for the vacant job in an organization.
In other words, Selection can be explained as the process of in viewing the candidates and
evaluating their skill and ability’s which are required for the specific job & then choosing suitable
candidates for the position.

Process of Recruitment:
1. Recruitment planning
2. Identifying vacancy
3. Job Analysis
4. Job Description
5. Job Specification
6. Job Evaluation
7. Recruitment Strategy
8. Searching the right candidates
9. Screening or short listing
10. Identifying the top candidates
11. Evaluation and control.

Recruitment Strategies:
The hiring process is an integral part of running any business:
1. Develop a Clear Employer Brand:- Your employer brand is what will set you apart from
other companies and show candidates why they should work for you. It should reflect your
business’ mission, culture and values. Think about questions such as, “Why would someone
want to work for this company?” and “What percentage of your employees would
recommend your company as a great place to work?” From there, check that your business’
about pages, social media, and advertisements align with your employer brand.
2. Create Job Posts That Reflect Your Company:- Your job post is the first impression the
candidate will have of you. You want to be sure to come off as organized and professional
while still embracing your brand. Is your company built on comedy? Make the job post
funny! Strictly business? Make sure your ad is sleek and well put-together. This will help you
acquire more applicants and attract people who will fit in with your company culture.
3. Use Social Media:- Social recruiting is becoming increasingly popular as companies begin
targeting millennials. Social recruiting is simply using social media to find talent, advertise
jobs, and communicate with potential candidates. Many brands have been successful with this
technique, including Uber, Apple and Zappos! Be sure to create a presence on social media
that will align with your values and employer brand.
4. Invest in an Applicant Tracking System:- Save your company time and money by investing
in an applicant tracking system. An Applicant Tracking System (or ATS) is a software that
automates the process of posting jobs and finding qualified talent. This often includes one-
click job posting to multiple sites, applicant sorting, and interview scheduling. There are
many options available, so be sure to do your research and find the best applicant tracking
system for your company’s budget and size.
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 5. Explore Niche Job Boards:- Depending on what job you are hiring for, it may be difficult to
find talent on one of the many large job sites. If your company falls into a smaller, more
defined category, try looking into niche job boards. These are smaller job sites who are
devoted to only one type of job and often have a community of job seekers and recruiters.
You can find niche job boards covering everything from the retail industry to construction.
6. Consider College Recruiting:- Recruiting from college campuses can help you discover
upcoming talent for your industry, while also aligning your company with internship
opportunities and campus connections. You can recruit from colleges in many ways,
including attending career fairs, volunteering to speak at events for your industry, being
featured on campus online job boards, and more.
7. Find Passive Candidates and Let Them Know You Want Them:- Passive candidates are
those who are currently employed and not actively looking for a job. These candidates will
often be the most qualified and seem to be the perfect person for the job. Personally reaching
out to them will show that you are truly interested in their talent and will be sure to grab their
attention. Using social media and connections will help you identify these potential
candidates as well as raise awareness for your company.
8. Conduct Awesome Interviews:- It is important to remember that interviews go two ways.
While you are interviewing your candidate, they are also interviewing you. Whether you are
meeting remotely or in person, be sure to make it comfortable and low-stress. Cater the
interview to the position they are applying for. Will they be working with a group? Try group
interviewing. Also remember to reflect your company’s culture. For example, if you are in an
office that likes to joke around a lot, incorporate that into the interview. This will insure you
find someone who is both talented and a good fit for your company.

Selection Strategies:
1. Analyze the Job Requirements
You need to analyze the job to be offered to the applicants.
The analysis includes:
• Detailed job description
• Specific roles to perform the job
• What kind of responsibilities need to be taken
• The specific tasks need to be performed
This detailed analysis is required to set the requisite job criteria for the candidates.
2. Identify the Required KSAs:
Sort out the required knowledge, skill, and ability, or KSA, for the job you are
offering. You need to be very careful that proper qualification and experience profile, based
on KSA, is asked for in any job post.
If anything extra is mentioned in the criteria that can attract applicants who are not ideal, get
rid of it. You don’t want to waste your valuable time. Again, if any requirement is missed,
you may not get the right candidates.
3. Plan How to Assess KSAs:
When you get the required KSAs, you need to plan selection methods to judge the
exact level of the applicants’ KSAs. The selection methods need to be foolproof and prepared
according to the needs of the job offered.
You can assess the KSAs with the following techniques:
• Background checking: Get an overview of each candidate’s ability from his/her educational
as well as professional background.

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 • Taking interviews: Face-to-face interviews are very much fruitful in understanding a
candidate’s KSAs.
• Personality Testing: Test the candidates’ personality to determine whether they have any
personality disorders.
• Cognitive assessment: Cognitive assessment is the test of a candidate’s knowledge in the
required area. Knowledge can be judged by the question-answering method, or you can
implement a written or online assessment.
• Aptitude testing: Aptitude tests cover numerical ability and reasoning tests. This cannot be
tested orally. In this case, you need to use a written or online assessment.
4. Plan Methods that are Reliable and Valid:
Make sure that the methods you plan to apply are reliable and valid. You need to check
to see if there are any loopholes. A robust repository containing full-proof methods is one of
the most vital parts of recruitment strategies a company must possess, to get everyone on the
same page.
The pattern of the tests you administer should coincide with recent trends among job
tests. If you use an outdated test style, the applicants might be unfamiliar with the system and
the results might become skewed, leaving you with ill-fitting employees.
5. Adopt Multi-Round Selection:
Make your selection procedure multistage. Your job applicants must face the selection
procedure in various rounds like interviews, personality tests, skills tests, and sample work
performances. The more rounds you have, the better you can assess your candidate and get
the accurate insights.
This will make your selection procedure easier and help you assess the actual abilities
of your job applicants.
6. Think for a Tech-driven Selection Strategy
At present, technology has crept into our lives like never before. Over the years,
technological advances have revolutionized the world as we see it. Apart from making our
lives faster and connected, it has also put important information on our fingertips. Leveraging
technology in creating employee selection strategies can help recruiters find the right person
for the right job.
7. Make Elimination Based Selection:
You can eliminate the candidates who fail at any stage of selection. This will help you
to get fewer eligible candidates for the tougher rounds. Judging fewer job applicants in the
final round makes your work easy and you can get the right candidate. Generally, this is a
popular procedure used in the selection strategies for HR.
But, if you are applying this procedure, you need to make sure there are no
unnecessary or unnecessarily tough questions in the early rounds, as this can eliminate a
valuable candidate without judging his/her proper skills.
8. Take Decision on Overall Performance:
You can also select a candidate based on overall performance in all the rounds. In this
case, let the candidates face all the rounds and then add all of their scores together to produce
the final score. Now, you can select the candidates based on the final score.
This is a flawless procedure to get the right candidates. But one disadvantage of this
process is that it is more time consuming than elimination based selection.

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✓ Aims/Objectives of recruitment:
1. To attract people with multi-dimensional skills and experiences those suit the present and
future organizational strategies.
2. To induct outsiders with a new perspective to lead the company.
3. To infuse fresh blood at all levels of the organization.
4. To develop an organizational culture that attracts competent people to the company.
5. To search or head hunt/head pouch people whose skills fit the company’s values.
6. To devise methodologies for assessing psychological traits.
7. To seek out non-conventional development grounds of talent.
8. To search for talent globally and not just within the company.
9. To design entry pay that competes on quality but not on quantum.
10. To anticipate and find people for positions that does not exist yet.

✓ Performance management systems:

Performance management system is the systematic approach to measure
the performance of employees. It is a process through which the organization aligns their
mission, goals and objectives with available resources (e.g. Manpower, material etc), systems and
set the priorities.
Purpose of Implementing Performance Management System:
Managing employee’s performance is the key objective of establishing systematic Performance
Management system in an organization. These process servers’ six main purposes in the company:
1. Strategic :- Performance managed system is a tool which should be align with overall
organization goal followed through department goal and individual goals. In other words, the
organizational strategic goals should be linked with each activity performed by every
department or employee.
2. Administrative:- Performance management system is also set the deciding factor of employee’s
promotion, demotion, salary increment, transfer and terminations. It enables to identify the
performers, non-performers or under performer employees in an organization. It merits the
competency and skill level of employees. Hence, it clearly defines the administrative role as
well and supports the management decisions.
3. Communication:- It is the effective communication channel to inform employees about their
goals, job responsibilities, key deliverables and performance standards. Further, it is also a
structure method to indicate the key areas of improvement required by the employee in order to
improvise his performance. In other words, it provides the platform to learn and train on skills,
and knowledge for better performance and results.
4. Developmental:- It is the structure method of communicating the positive feedbacks,
improvement areas, and development plans. The manager can use various methods like training,
mentoring, coaching etc. and them their team members to perform better.
5. Organizational Maintenance:- Performance management system is the yardstick of measuring
employee, department and organization achievements and evaluating the performance gaps
through various tools and techniques. Hence, it maintains the health of the organization and its
performance standards.
6. Documentation:- The performance management reviews, feedback and forms should be
documented and maintained periodically by every organization. It would enable them to look
forward, set new targets, design developmental needs, design training and learning programmes,
and career progression of employee and for department. Hence, it helps in driving the
organizational needs to desirable objectives.

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 Benefits of Performance Management:
In today’s global environment where the market is evolving at a very fast pace, it is important for
an organization to understand the benefits of performance management. Therefore, managing
employee’s performance is the ultimate need of an organization. The employees are considered as
an asset by the organization. The performance management system serves various benefits to the
organization, which are as follows:
1. It supports to provide data to find the skills and knowledge gaps of employees in order to
improvise them through trainings, coaching and mentoring systems.
2. It motivates employees to take new challenges and innovate through structure process.
3. It provides new opportunities to employees for their growth and development in their
professional careers
4. It defuses the grievances and conflicts among team members through proper performance
evaluation system.
5. It assesses the employee’s performance fairly and accurately against the performance targets
and standards.
6. Employees would enable to provide better results because of clarity on their performance
targets.
7. Performance management system provides the platform to discuss, develop and design the
individual and department goals thorough discussion among manager and their subordinates.
8. The under performer can be identified through performance reviews and can raise their skills
levels objectively. It quantifies the learning needs through individual development plans or
performance improvement plans as well.

✓ Strategic rewards systems:

Every company needs a strategic reward system for employees that addresses these four
areas: compensation, benefits, recognition and appreciation. ... Employee reward systems refer to
programs set up by a company to reward performance and motivate employees on individual
and/or group levels.
Objectives of reward systems [as per Lawler (1996)]
1. Attract and retain employees- The ability of reward systems to attract and retain
employees is of primary concern to most organizations. This is obviously an issue during
periods of economic expansion when labour markets are ‘tight’ and organizations struggle
to fill positions and hold on to qualified employees. However, even during recessions,
organizations are concerned with finding and securing the efforts of qualified individuals.
2. Motivate performance- Wagner (1990) claims that a primary concern in the design of
reward systems is how well the plan will work in motivating employees. However, there
are several theories of motivation and no agreement on a ‘general theory’. Different
theories underpin very different types of reward systems. As we will see, even the same
theory can be interpreted in different ways and used to support alternative pay system
designs. Wagner (1990), claims that “two of the process theories of motivation are of
particular importance in the development of performance pay programs: the Equity and
Expectancy theories of motivation.”
3. Promote skill and knowledge development- Marchington and Grugulis (2000) observe
“There is little doubt that there has been a growing recognition during the last decade of the
importance of training and development, and even learning as a source of sustained
competitive advantage as employers introduce more skills-specific form of training and

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 experience continuing skills shortages in some areas.” However, there is some debate about
if and how skill development and acquisition should be linked to the reward system.
4. Contribute to corporate culture- Drennan (1992) describes culture as “‘how things are
done around here.’ It is what is typical of the organization, the habits, the prevailing
attitudes, the grown-up pattern of accepted and expected behaviour.” Peters and Waterman
(1982), Kanter (1983) and others identified corporate culture as a factor that impedes or
facilitates organizational change.
Armstrong (1999) argues that the reward strategy provides an opportunity to reinforce
the organization’s values and beliefs in such areas as performance, quality, teamwork and
innovation. Going a step further, Lawler (1996) suggests that pay systems can help to
change culture when he states, “The behaviours they evoke become the dominant patterns
of behaviour in the organization and lead to perceptions about what it stands for, believes
in and values.” Lawler observes that reward systems can be adapted to any type of culture.
He states, “Depending on how they are developed, administered and managed, reward
systems can help create and maintain a human-resources oriented, entrepreneurial,
innovative, competence-based, bureaucratic, or participative culture.”
Lawler, throughout his work discusses the importance of reward system congruence
with management style and other organizational systems. In particular he points tothe
importance of two process issues: communication and decision-making.
5. Reinforce and define structure- The reward system of an organization can help reinforce
and define the organization’s structure. Often this feature is not fully considered in their
design. As a result, the reward system‘s impact on the structure of an organization is
unintentional. This does nt mean, however, that its impact on the organizational structure is
necessarily minimal. Indeed, the reward system will help define the status hierarchy and
the degree to which people cooperate with people from other departments and with people
within the work area. It will also strongly influence the kind of decision structure that
exists.
6. Determine pay costs- Although labour intensity varies across industries and services,
labour costs are a significant percentage of operating costs for most organizations. Schuster
and Zingheim (1993) suggest that there is a critical flaw in reward systems that rely
primarily on base pay as the primary form of reward because increases lead to a permanent
escalation of operating costs that is generally disconnected from organizational outcomes
like sales turnover and profit.

✓ Strategic aspects of payment:

Strategic pay plans refer to the policies and decisions on how organizations give
compensation to its employees that may satisfy employee as well as achieve organizational goals
and objectives.
The Goals of Strategic aspects of payment are:
1. Considering alternatives for setting up payment rates at the baseline.
2. Taking into account the various objectives that the manager needs to meet.
3. Making the objectives of the employees as transparent as possible.
4. Evaluate the various aspects of the package of payment.
5. Careful criticism of the various aspects of the strategies adopted.
6. At the time of design and maintenance of reward systems that are significant, the design
parameters need to be set right.

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✓ Job evaluation:
A job evaluation is a systematic way of determining the value/worth of a job in relation to
other jobs in an organization. It tries to make a systematic comparison between jobs to assess their
relative worth for the purpose of establishing a rational pay structure.
The main characteristics of job evaluation may be summed up as:
1. It is a method with a systematic approach.
2. It is an analysis of the work involved in its starting point.
3. It is an attempt to determine the requirements of the work involved for any incumbent.
4. It is a process by which jobs in an organization are appraised.
5. It is a process of analyzing and describing positions, grouping them, and determining their
relative value by comparing the duties of different positions in terms of their different
responsibilities and other requirements.
6. It is a system to deal exclusively with assessment of the job and not concerned with
employees assigned to the job.
7. It is designed only to establish wage differentials and is not concerned with the absolute wage
level.
The significance of job evaluation can be determined through the following points:
1. Taking account of all the factors that are useful in determining wages and salaries
2. Maintaining harmony between the union and the management
3. Standardizing the wage determination process
4. Compensating the employees as per the requirements of the job to avoid biasness and
promote equality in payment of wages
5. Minimizing the cost of recruitment.

Process of Job Evaluation:

1. Gaining acceptance:- Before undertaking job evaluation, top management must explain the
aims and uses of the program to the employees and unions.
To elaborate on the program further, oral presentations could be made. Letters,
booklets could be used to classify all relevant aspects of the job evaluation program.
2. Creating a job evaluation committee:- It is not possible for a single person to evaluate all
the key jobs in an organization.
Usually, a job evaluation committee consisting of experienced employees, union
representatives, and HR experts is created to set the ball rolling.
3. Finding the jobs to be evaluated:- Every job need not be evaluated. This may be too taxing
and costly.
Certain key jobs in each department may be identified. While picking up the jobs, care
must be taken to ensure that they represent the type of work performed in that department.
4. Analyzing and preparing a job description:- This requires the preparation of a job
description and also an analysis of job needs for successful performance.
5. Selecting the method of evaluation:- The most important method of evaluating the jobs
must be identified now, keeping the job factors as well as organizational demands in mind.
6. Classifying jobs:- The relative worth of various jobs in an organization may be found out
after arranging jobs in order of importance using criteria such as skill requirements,
experience needed- under which conditions job is performed, type of responsibilities to be
shouldered.. degree of supervision needed, the amount of stress caused by the job, etc.
Weights can be assigned to each such factor.

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 When we finally add all the weights, the worth of a job is determined. The points may
then be converted into monetary values.

✓ Incentives:
The main purpose of incentive is to tie employees’ rewards closely to their achievements.
This tie is done by providing more compensation for better performance. Individual will generally
strive for additional rewards by higher production and their performance depends upon higher
efforts. Some people may prefer some extra time off rather than more money.
The importance of incentives are given below:
1. The primary advantage of incentive is the inducement and motivation of workers for higher
efficiency and greater output,
2. Fixed remuneration removes fear of insecurity in the minds of employees (as incentive as a
part of total remuneration)
3. Earnings of employees would be enhance due to incentive.
4. Reduction in the total as well as unit cost of production through incentives (because of higher
productivity)
5. Production capacity is also likely to increase.
6. Incentive payments reduce supervision, better utilization of equipment, reduce scrap, reduce
loss time, and reduce absenteeism and turnover.

✓ Pensions:
Occupational pensions can be defined benefit or defined contribution. ... This type
of pension may be based on the final salary. Another form of defined-benefit scheme, the career
average revalued earnings (CARE) scheme, is based on an average of salary for a number of years
before retirement.

✓ Strategic Human Resource Development:

Strategic human resource development can be defined as a systematic process
of. developing the skills and competencies of people through talent development,
leadership development, employee development, performance development, and
training/development processes to enable the organization to sustain its.
Process of Strategic Human Resource Development are:
1. Step 1: Know your company inside and out
Before crafting your strategy, know your organization thoroughly. Understand the
organization’s goals, current positions, current workforce, and workforce strengths. Ask
yourself: “Can your organization’s internal capabilities deliver on its business goals?” To
understand the organizational hierarchy and structure, talk to your employees and find out if
they are motivated and/or if they have challenges.
2. Step 2: Craft your HR strategy
Once you have identified potential threats and opportunities, it is time to develop a strategy.
The strategy should be simple, yet include all aspects of human resources development. It
should also be communicated to individuals from other departments who must be involved in
implementing the strategy.
3. Step 3: Resource analysis
Implementation of most HR strategies require a considerate amount of resources. It is
important that you evaluate the company’s current and required monetary and logistic
resources. Match the two and check for deviations. If there is a lack of resources, analyze
ways to obtain funding.
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 4. Step 4: Implementation
Having the resources and having a perfect strategy would not be worth it if action is not
taken. Implementation is the most important part of a developing a human resources strategy.
Putting your plans into action and seeing the process through to completion is essential.
5. Step 5: Follow up
Once you start putting your strategy into action, keep track of the progress. Check for changes
to be made along the way. Once you notice any change in performance, or deviation from the
plan, identify the root cause of the issue and ensure it gets correctly in a timely fashion.
6. Step 6: Corrective Action
Identifying the cause is not enough; you need to take corrective action. Create a backup plan
to ensure that performance results are back on track with the original strategy. In some cases,
a modified strategy may be necessary to reach the desired goal.

✓ Training and developing competencies:

Meaning of Training:- Training constitutes a basic concept in human resource development. It is
concerned with developing a particular skill to a desired standard by instruction and practice.
Training is a highly useful tool that can bring an employee into a position where they can do their
job correctly, effectively, and conscientiously. Training is the act of increasing the knowledge and
skill of an employee for doing a particular job.
Meaning of Developing:- Employee development is defined as a process where the employee
with the support of his/her employer undergoes various training programs to enhance his/her skills
and acquire new knowledge and skills.

General Benefits from Employee Training and Development

1. Increased job satisfaction and morale among employees
2. Increased employee motivation
3. Increased efficiencies in processes, resulting in financial gain
4. Increased capacity to adopt new technologies and methods
5. Increased innovation in strategies and products
6. Reduced employee turnover
7. Enhanced company image, e.g., conducting ethics training (not a good reason for ethics
training!)
8. Risk management, e.g., training about sexual harassment, diversity training
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Disadvantages of training & Development are:
1. Waste of time and money.
2. Increased stress.
3. Too much of theory.
4. Loss of interest
5. Leave for the new job.
6. Time requirement.

✓ Learning and development:

Meaning:- A specialized HR function, learning and development (L&D) is defined as the process
of empowering employees with specific skills to drive better business performance. They may be
upskilled to perform better in their existing roles or reskilled to take on new roles in the
organization and fill the skills gap that is becoming common in the workplace these days.
Objectives of Learning & Development are:
1. Business performance:- The two examples we just mentioned will result in an uptick in
business performance through L&D. Improved business performance is usually the top
objective of every development and learning activity. Essentially, it implies that companies
are training employees to become better at their jobs and meet/exceed the business KPIs
assigned to their jobs.
Learning and development objectives pertaining to business performance include:
• Increase in the volume of work completed within a stipulated time
• Rise in customer satisfaction scores as a result of better employee performance
• The ability to gain from emerging opportunities, due to new skills available in the
organization
• Business sustainability through a period of dynamic changes (regulatory shifts,
economic upheavals, digital transformation, etc.)
2. Employee satisfaction:- Research suggests that employees value the importance of learning
in the workplace and would stay on with a company that invests in L&D. LinkedIn’s 2019
Workplace Learning Report, which surveyed 3,000+ respondents, reaffirms this insight. A
whopping 94% of respondents said that they would stay on in a company that invests in their
learning and development.
Learning and development objectives pertaining to employee satisfaction include:
• Increase in employee retention rates
• Improvement in your employee net promoter score (eNPS)
• Reduction involuntary turnover in the long term
• Lowering of employee stress, thanks to a rise in confidence and skill levels
3. Employer branding:- Another objective to remember when formulating a learning and
development strategy is its impact on your employer brand.
Does your company appear to be “learning-focused”?
Do candidates want to join your company because it will help their careers and long-
term growth?
These are some of the key questions that an L&D program should answer. Most
preferred employers in the world – the likes of Google, Amazon, and PwC – invest heavily in
their employee’s development, as it is intrinsically linked to their value proposition in the
labor market.

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 Learning and development objectives pertaining to employer branding include:
• Shorter time to fill for new job roles
• Increase in the quality of hire
• Reduction in recruitment marketing costs
• An uptick in the number of unsolicited/inbound applicants
4. Individual self-actualization:- In the era of new work, employees value the holistic aspects
of a job as much as its tangible components like benefits or compensation. As a result, L&D
becomes a means of self-actualization and fulfillment, allowing employees to tap into their
full potential. And this is linked both to business performance as well as employee
satisfaction.
Development and learning objectives pertaining to individual self-actualization include:
• The ability to reach personal improvement targets
• Enhanced work-life balance enabled by robust skill sets
• Increased employability, driving greater job security
• Realization of hidden potential such as leadership skills or a knack for working with data
7 Best Practices for Creating a Learning and Development Strategy in 2020:
1. Factor in the requirements of a multigenerational workforce
2. Embrace the power of mobile learning
3. Use technology intelligently to personalize the learning experience
4. Pay special attention to harassment and discrimination prevention
5. Embed L&D into the larger HR landscape
6. Leverage L&D as a tool for succession planning
7. Make learning an ongoing process

✓ Career development:
Meaning:- Career development is essential for implementation of career plan. While career plan
sets career path for an employee, career development ensures that the employee is well developed
before he moves up the next higher ladder in the hierarchy.
Objectives of Career development:
1. Obtaining relevant information about individual employees’ interests and preferences;
2. Matching individuals’ career interests and aptitudes to job requirements;
3. Providing career path information to employees to enable them to make their career plans;
4. Providing financial inducements and facilities to employees for acquisition of new skills
and capabilities;
5. Developing a suitable T&D programme both within the organisation and outside to help
employees improve their career.
Importance of Career Development:
1. The need to identify and forecast human resource needs
2. Social and demographic trends
3. The changing nature of work
4. Changing types of jobs
5. Multicultural work force
6. Worker productivity
7. Technological changes and decreasing advancement opportunities
8. Organizational philosophies and practices

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 The steps in career development are:
1. Step 1. Identifying Career Needs:- Some large organizations have assessment centres or
conduct career development workshops wherein a group of employees are brought together to
undergo psychological testing, simulation exercises, and depth interviews. This process helps
the employee to make a decision regarding career goals and the steps to be taken to put efforts
to attain these goals. The HR manager also plays an important role of providing information
and assistance in making decisions about the career needs of the employee.
2. Step 2. Developing Career Opportunities:- Career opportunities are identified through job
analysis. The manager should identify career path for employees in the organization. He/she
should discuss with the employees what jobs are available in the organizational hierarchy and
at the same time find where the employee would want to go up in the organization in future.
The employees should be provided information regarding job postings that are available in
the organization and, for future reference, what requirements they will have to fulfill to
achieve the promotion which they aspire.
3. Step 3. Integration of Employee Needs with Career Opportunities:- It is necessary to
align the needs and aspirations of the employees with career opportunities in order to ensure
right people will be available to meet the organizational manpower requirements. Therefore,
emphasis is placed on the training, on- and off-the-job, counseling and coaching by
supervisor, and planned rotation in positions of varying functions and in different locations.
The process is pursued further with the help of periodic performance appraisals. Training and
counseling will be a wasteful exercise if the employee does not make progress along his/her
career path.
4. Step 4. Regular Monitoring:- It is necessary to regularly monitor the progress of the
employee towards his/her career development plans and see that the support is being provided
to develop those career plans. If there is a discrepancy, steps should be taken to reassign work
as necessary to ensure that career development plans are met. In situations where career
opportunities are not available due to influence of technology and economic factors, the
organization should redesign jobs or make career shifts.

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 Module 4: Strategic Options and HR decisions
✓ Rightsizing and restructuring:
Meaning of Rightsizing:- The process of making a company or organization a more effective
size, especially by reducing the number of people working for it: This rightsizing will produce
financial benefits in excess of $100 million annually. The right-sizing process forces us to be a
leaner, meaner and keener organization.
Meaning of Restructuring:- Restructuring is an action taken by a company to significantly
modify the financial and operational aspects of the company, usually when the business is facing
financial pressures. Restructuring is a type of corporate action taken that involves significantly
modifying the debt, operations, or structure of a company as a way of limiting financial harm and
improving the business.
Advantages of Rightsizing:
1. Saving Business
2. Bringing transparency
3. Retain talent
4. Bringing the teamwork
5. Direct interaction
6. Re-valuation of business
7. Bringing to manageable size
8. Lean operations
Disadvantages of Rightsizing:
1. Losing staff
2. Losing credibility
3. Affects the bottom line
4. Fewer opportunities
5. Affects on decision making
6. Negative public perception
7. Spoil reputation
8. Disrupt the communication
9. Loss of knowledge.

✓ Domestic and international labour market:

Meaning of Domestic Labour Market:- work performed by household members for the benefit of
the household (for example child rearing). It has been argued that since domestic labour ultimately
benefits employers by preparing and sustaining a LABOUR FORCE, those performing it should be paid a
WAGE.
Meaning of International Labour Market:- An informal employment market that exists
globally to meet the supply and demand of talent for multinational corporations. Learn more
in: International School Teachers' Professional Development in Response to the Needs of Third
Culture Kids in the Classroom.

✓ Mergers and acquisitions

Mergers and acquisitions (M&As) are tools businesses use to achieve organizational
objectives—tools that have profound impacts on the employees of the organizations at every level
as two organizations attempt to integrate into one. ... Creation of new policies to guide the new
organization.

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 A merger is generally defined as the joining of two or more different organizations under one
common owner and management structure. An acquisition is the process of one corporate entity
acquiring control of another corporate entity by purchase, stock swap or some other method.

✓ Outsourcing and off- Shoring:

BASIS FOR
OUTSOURCING OFFSHORING
COMPARISON

Meaning Outsourcing is the Offshoring refers to the

assignment of business relocation of business
peripheral operations to an processes in a different
external organization. country.

What it implies? Shifting operations to third Shifting activities or

party. offices.

Objective Focus on core business Lower labor cost

activities

Function Non-employees Employees of the

performed by organization

Location Within or outside the Outside the country.

country.

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 Module 5: International Strategic Human Resource Management:

✓ Expatriation and Repatriation strategies:

Expatriation:
An expatriate is an employee who has left his native land and is working and temporarily
residing in a foreign country. An expatriate can also be a citizen who has relinquished citizenship
in their home country to become the citizen of another country. The term originates from the Latin
words, ex (out of) and patria (fatherland).
A firm’s employees who are transferred out of their home base into some other area of the
firm’s international operations are referred to as expatriates. The practice of global mobility of a
company’s workforce helps in building competitive advantages. All expatriate employees are
entitled to receive an expatriate premium while working in a foreign country. This includes
monetary benefits and non-monetary incentives like housing and education.
When the initiative for expatriation comes from individuals rather than employers, it is called
self-initiated expatriation (SIE). An illustration of this is the fact that some Asian Companies have
recently hired a number of Western managers.
Dubai is a country where the population is composed predominantly of expatriates from
countries like India, Pakistan, Bangladesh and Philippines, with only 20% of the population made
up of citizens. Most popular expatriate destinations are Spain, followed by Germany and Britain.
Repatriation:
Repatriation is the process of returning an asset, an item of symbolic value, or a person—
voluntarily or forcibly—to its owner or their place of origin or citizenship. The term may refer to
non-human entities, such as converting a foreign currency into the currency of one's own country, as
well as to the process of returning military personnel to their place of origin following a war. It also
applies to diplomatic envoys, international officials as well as expatriates and migrants in time of
international crisis. For refugees, asylum seekers and illegal migrants, repatriation can mean
either voluntary return or deportation.
Process of Repatriation:
1. Production:- Preparation involves developing plans for the future and gathering information
about the new position. The firm may provide a checklist of items to be considered before the
return to the home(e.g. closer of bank accounts and settling bills) or a through preparation of
the employee and his or her family for the transfer to home.
2. Physical Relocation:- Physical relocation refers to saying good bye to colleagues and
friends, and traveling to the next posting, usually the home country. Personalized relocation
reduces the amount of uncertainly stress, and disruptions experienced by the repatriate and
family.
3. Transition:- Transition means setting into temporary accommodation, where necessary ,
making arrangement for housing and schooling, and carrying out other administrative tasks
such as renewing driving license, and opening bank account.
4. Readjusting:- Readjusting involves coping with reverse culture shock and career demands.
Of all the steps in the repatriation process, re-adjusting is the most difficult one. The re-entry
adjusting is a tough task because of multiple factors. First there is anxiety experienced when
he or she returns home, the apprehensive being accentuated by the uncertainly about the
placement in the firm, career prospects and a sense of isolation, feeling of devaluing the
international experience, coping with new role demands and probable loss of status and pay.

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✓ Global sourcing
Global sourcing is the practice of sourcing from the global market for goods and services
across geopolitical boundaries. Global sourcing often aims to exploit global efficiencies in the
delivery of a product or service. These efficiencies include low cost skilled labor, low cost raw
material and other economic factors like tax breaks and low trade tariffs. A large number of
Information Technology projects and Services, including IS Applications and Mobile Apps and
database services are outsourced globally to countries like India and Pakistan for more economical
pricing.
Objectives of Global Sourcing are:
1. To learn what factors/forces increase foreign trade.
2. To learn the basics of global sourcing.
3. To learn how total costs are determined.
4. To understand the hidden costs of global sourcing.
5. To understand the quantitative and qualitative aspects of global sourcing.
6. To learn how to critically analyze various global sourcing alternatives.
7. To learn how to effectively use foreign trade zones.
8. To learn how to negotiate in different countries.

Advantages & Disadvantages of Sourcing Globally:

Sl no. Advantages Disadvantages
1 Cheap manpower Quality problems
2 Access to raw materials Loss of intellectual uniqueness due to
globalization.
3 Access to distinctive capabilities Job loss in case of movement to another
nation.
4 Increase in productivity. Risk of delay
5 Scalability Language problems
6 Helps in spreading business across Social, culture and religious differences.
the world.
7 Without burden large volume works Management problems.
can be completed.
8 Profit can be increased. Increasing complexity

✓ Global training and development:

Meaning of Global training:- “Global training” in this context refers to the commitment by
your organization's learning and development professionals to creating a shared set
of learning objectives and modules that will benefit all employees, regardless of work location.
Importance of Training:
1. For new employees.
2. When the organization is in difficult in finding applicants for the job; training compensates
for the inability for the desired applicants.
3. Job Change.
4. Change within the employees.
5. Arrival of new tools or technologies within the organization.
6. There is always room for improvement.
7. Reduces mistakes.
8. Opportunity for staff to feedback

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 Meaning of Global development:- International development or global development is a
broad concept denoting the idea that societies and countries have differing levels of
"development" on an international scale. ... Historically, development has often been largely
synonymous with economic development.

Training v/s Development:

Sl no. Training Development
1 Refers to teaching specific skills and Concerned with each aspects for overall
behavior. growth.
2 It is meant for operatives. It is meant for management.
3 Tries to improve a specific skill Deals with improving total personality of an
individual.
4 It is a one-short deal. Continuous process.
5 Scope of training is on individual Scope of development is on the organization
employees or the work group.

✓ Peculiarities of global strategic management:

Global strategic management is not an easy area to work in. Yet it is one of the most exciting
spaces to be a part of. Given this kind of diverse economies that are part of global strategies and
the phase of growth, they are in, the process of managing a global strategy is intricate and difficult.
It has its own challenges and peculiarities that some good strategic management in international
business courses cover through their curriculum. Let us explore what those could be so that we can
become aware of them and how to manage.
1. Different economies:- When a global strategy is defined it brings together different economies
in its fold. While designing the strategy, the biggest challenge is to try and incorporate the
universally applicable standards and yet maintain the local requirements. There is a need to
balance the various growth phases that the different countries covered in the global strategy are
in. Some are developed while some are developing. The GDP, inflation and other
macroeconomic indicators are on different levels. Bringing this information together within one
umbrella is what a global strategy needs to be able to do.
2. Diverse teams:- When the global strategy and roadmap are being developed, and then managed,
the teams that are responsible for both these aspects are usually geographically dispersed. They
are different in the way they interpret the strategy and then apply it. Making sure that their
understanding levels are as similar to each other’s as possible is a tough situation. The teams are
different in their thinking and also culturally diverse which adds to the peculiarities that arise
when the global strategy is being managed.
3. Many technologies:- When a global strategy has to be managed, the organization usually needs
the support of many technologies. All these have their own pros and cons, and getting them to
seamlessly flow through the strategy and all processes that are linked to it, can be a challenging
task. In addition to that this poses the additional issue of multiple vendors that might have a role
to play and get involved in the process of impacting the final outcome of the strategy. The tools
that are needed to ensure that there is a collaboration between these is also a part of the process.

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✓ Value creation:
The definition of value creation is giving something valuable to receive something else that's
more valuable to you. This definition is broad and captures both costs and benefits.

Value proposition builder model

1. Market: Analyzing and identifying the market segments, or specific clients, or target
individuals within those clients for whom the solution has the potential to deliver value and
profitability.
2. Analyze and define the value experience that clients get from the organization from its current
activities. You need to define good, bad and neutral experiences; the effectiveness of the
value proposition depends on gathering real customer prospect or employee feedback.
3. Define the offerings mix capable of leveraging the value experience with the defined target
market group.
4. Assess the benefits of the offerings in the context of the value experience you are able to
deliver to the market group. There is a cost component of benefits here which includes price
and customer risks, enabling the calculation of value where Value = Benefits minus Cost.
5. Alternatives and differentiation is the next aspect to analyze, what alternative options does the
market have to the product or service?
6. ... and back it all up with relevant proof, to ensure there is substantiate value proposition in
place.

✓ Global strategic management process:

The process of strategic management includes goal setting, analysis, strategy formation, strategy
implementation, and strategy monitoring. Let’s take a look at how each of these steps ties into the
overall strategic management process.
1. Goal Setting:- The first part of strategic management is to plan and set your goals. Set the
short- and long-term goals of the organization and make sure that these are shared with all
members of the organization. Explain and share how each member of the team will have an
impact on the organization reaching this goal. This will help give each member of the team a
sense of purpose and will give their job meaning.
2. Analysis:- During this stage of the process, it is important to gather as much information and
data as possible. This information will be integral to creating your strategy to reach your goals.
This step of strategic management entails becoming aware of any issues within the
organization and understands all of the needs of the organization.
3. Strategy Formation:- In this strategic management step, you will use all the intelligence and
data you have gathered to formulate the strategy that you will use to reach whatever goal you
set. Identify useful resources you have, and also seek out other resources you will need to set
up your strategy.
4. Strategy Implementation:- This is arguably the most important part of the entire strategic
management process. At this point, each member of the team should have a clear
understanding of the plan and should know how they play a part within it. This is the stage
where your strategy is put into action.
5. Strategy Monitoring:- During this stage, your strategy will already be in play. At this point,
you should be managing, evaluating, and monitoring each part of your strategy, and ensuring
that it aligns with the end goal. If it does not, this is the time where you would make tweaks
and adjustments to strengthen the overall plan. This is the stage where you will track progress
and have the opportunity to deal with any unexpected shifts in the strategy.

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✓ MNC’s business strategies:
Multinational corporations (MNC) or enterprises (MNE) are organizations which own or
control production of goods or services in countries other than the home country.[1][2] They
include large corporations which produce or sell goods or services in various countries.[3] They
may be referred as 'international' or 'transnational' or 'stateless' corporations.
A multinational corporation (MNC) has facilities and other assets in at least one country other
than its home country. A multinational company generally has offices and/or factories in
different countries and a centralized head office where they coordinate global management.
These companies, also known as international, stateless, or transnational corporate organizations
tend to have budgets that exceed those of many small countries.
Types of Multinationals
There are four categories of multinationals that exist. They include:
1. A decentralized corporation with a strong presence in its home country.
2. A global, centralized corporation that acquires cost advantage where cheap resources are
available.
3. A global company that builds on the parent corporation’s R&D.
4. A transnational enterprise that uses all three categories.
Features of Multinational Corporations (MNCs):
1. Huge Assets & Turnover
2. International Operations through a Network of Branches
3. Unity of Control.
4. Mighty Economic Power.
5. Advanced & Sophisticated Technology.
6. Professional Management
7. Aggressive Advertising & Marketing
8. Better Quality of Products.
Advantages of MNCs:
1. Employment Generation
2. Automatic Inflow of Foreign Capital
3. Proper Use of Idle Resources
4. Improvement in Balance of Payment Position
5. Technical Development
6. Managerial Development
7. End of Local Monopolies
8. Improvement in Standard of Living
9. Promotion of international brotherhood & culture
Disadvantage of MNCs:
1. Danger for Domestic Industries
2. Repatriation of Profits
3. No Benefit to Poor People
4. Danger to Independence
5. Disregard of the National Interests of the Host Country
6. Misuse of Mighty Status
7. Careless Exploitation of Natural Resources
8. Selfish Promotion of Alien Culture
9. Exploitation of people, in a systematic manner

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✓ HRM strategies
A Human Resource strategy is a business's overall plan for managing its human capital to
align it with its business activities. The Human Resource strategy sets the direction for all the key
areas of HR, including hiring, performance appraisal, development, and compensation.
Strategic human resources management is a critical part of MNCs drive toward a
competitive advantage, contributes the achievement of the business objectives and accomplishes
the firm's strategic needs such as survival, growth, adaptability, productivity and profitability.

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