Chapter 6 – HRM Trends & Challenges:

SHRM
Strategic Human Resource Management is an approach to managing human
resources that aligns HR practices with the organization’s overall strategy and
goals. It focuses on using HR practices to gain a competitive advantage and
achieve organizational success.
Strategic Human Resource Management (SHRM) Human Resource
Management:
SHRM:
Aligns HR practices with the organizations overall strategy and goals.
Focuses on using HR practices to gain a competitive advantage.
Emphasizes proactive planning, employee development.
Views HR as a strategic partner in achieving organizational success.
Focuses on long-term sustainability and growth.
HRM
Focuses on the operational aspects of managing employees( recruitment,
training and benefits)
Emphasizes compliance with laws and regulations
Its reactive focusing on solving immediate problems.

Traditional VS Strategic Human Resource Management

Traditional HRM:
Focuses on administrative tasks, such as:
Recruitment and selection
Training and development
Compensation and benefits
Employee relations
Emphasizes compliance with laws and regulations
Reactive approach, responding to problems as they arise
Limited integration with overall business strategy.
E-HRM
E-HRM is the short form of electronic human resource
management refers to the use of digital technologies and
online platforms to manage an organizations human
resources. It involves using software, systems and tools which
are used to automate HR processes such as:
Recruitment and hiring
Employee data management
Performance management
Training and development
Features of E-HRM:
E-HRM implements HRM strategies, policies in an organization
through the support of web technology.
They access these functions through intranet or other web
technology channel
It gives platform to improve efficiency and effectiveness to
organizational goals.
It stores information regarding payroll, employee personal data,
training and recruitment.
Enable company’s employees and managers with the ability to access
HR information to increase connectivity of all parts of the company.
Advantages of E- HRM

It helps to improve quality service

To ensure efficient services at an incredible speed.
It helps to improve accuracy and reducing human bias
Making, reporting and analyzing data can be done quickly
Handling bundles of employee data from multiple locations fairly and quickly
Recruitment, selection, training and development by using web based technology\
Reduced paperwork.

Disadvantage

Difficult to maintain confidentiality of the input data

Electronic media are vulnerable, may be attacked by viruses from anywhere on the
internet.
Technical issues, system failure can occur
Data security risks
Implementing an E-HRM system can be expensive.
Types of E-HRM
Operational E-HRM:
Payroll software and salary
Employee data management
Time and attendance tracking
Recruitment and hiring processes
Relational E-HRM :
To enhance and manage relationships between employees, managers and the
organisation.
Training and development platforms
Employee recognition and rewards programs
Performance management and feedback systems
Transformational E- HRM
This is concerned with knowledge management and strategic re-orientation.
Develop competitive advantage through innovation.
E-HRM Activities:
E-Recruitment:
Online recruitment by uploading the recruitment information on the company’s official website.
Process of finding candidates
E-Recruitment enhances the effectiveness of the recruitment process.
Finding out potential candidate for the job
E-Selection:
Online selection process
Digital application management system
Online job postings and advertising
Video interviewing
Purpose of E-selection is to utilize the maximum human capital at a reduced cost and in less
time.
E-Performance Management:
It is a web based tool, makes to evaluate the performance of the employee easier.
Computer monitoring tool is used to evaluate the employee
E-Learning:
It is known as online learning
Webinars and video conferencing
Mobile learning
Virtual classroom learning
E-Compensation:
Its known as electronic compensation or digital
compensation refers to the use of digital technologies to
manage and deliver employee compensation and benefits.
Green HRM:
GHRM can be defined as the set of policies, practices and
systems that stimulate a green behaviour of a company’s
employees in order to create an environmentally sensitive,
resource efficient and socially responsible workplace and
overall organization.
Benefits / advantages of Green HRM:
• It helps companies to bring down costs without losing their
talent
• Creating a new friendly environment.
• Help to create a better health and safety management
system in the company
• It helps achieving employee job satisfaction and
commitment
• Improvement in the retention rate of the employee
• It will promote employee morale
• Improved competitiveness and increased overall
performance.
Disadvantages of GHRM:
• Initial costs
• Inadequate savings
• Increased capital outlays
• Uneven competition
• Employee apathy and reluctance

Human resource information system : can be defined

as a software or online solution that is used for data
entry, data tracking, and the data management of all
human resources operations of an organization.
Need for HRIS:
• To keep employee database
• Information for manpower management
• To comply with several laws
• Helps to take decisions
Benefits of Human Resource Information Systems:
• Record keeping
• Compliance
• Efficiency
• HR strategy
• Self service HR
• Decision making
Human Resource audit : According to dale Yoder, “Personnel audit refers
to an examination and evaluation of policies, procedures and practices
to determine the effectiveness of personnel management.”

Objectives of HR audit:
• To seek explanation and information in respect of failure and
success of HR.
• To evaluate implementation of policies
• To evaluate the performance of personnel staff and
employees
• To seek priorities, values and goals of management
philosophy.
Need for Human Resource Audit:
• The management of organisations have realized the need for HR audit because of powerful
influence on motivation of employees at work
• Growth of organisation needs HR audit.
• An effective two way communication system has also facilitated the need for HR audit
• Many plants are located at large distances. This also made the HR audit compulsory.

Approaches :
1.Comparative
2.Outside Authority
3.Statistical
4.Compliance
5.Management by objective
Benefits of HR Audit:
• Identify the HR programmes that are most important to
achieving the organizations objectives
• Find out how well the HR department is delivering these
programmes
• Promote change and creativity
• Direct the focus of the HR staff to important issues
• Bring HR closer to the line functions of the organization.
Workforce Diversity:
According to Moorhead and Griffin “ Workforce diversity is concerned with the
similarities and differences in such characteristics as age, gender, ethnic
heritage, physical abilities and disabilities, race, and sexual orientation among
the employees of organisations.”

Workforce diversity challenges:

• Challenging Gender Relations
• Cultural conflicts
• Discriminatory
• Resistance to change
• Quarrel
Downsizing :
Downsizing is happening when a company terminates a
number of employees at the same time. It occurs for a
number of reasons, most often to save money. Traditionally
employees are terminated for their conduct, behaviour. The
aim of downsizing is to restructure an organization in order to
make it more competitive.
Reasons for down sizing:
1.Productivity
2.Cost Reduction
3.The end of a product or service
4.Merging of companies
5.Value
6.Tough economic conditions
7.Change in management
8.Excessive workforce
9.Automation
10.Outsourcing
Need and importance for work life balance:
1.Increases the overall efficiency
2.Use of technology
3.Taking time off
4.Creation of a schedule
5.Enjoy family life

Work life balance:

Work life balance can be defined as the perfect integration between
work and life both not interfering with each other. Work life balance
typically means the achievement by employees of equality between
time spent working and personal life.
The outcomes of imperfect work life balance faced in the day today life are:
1.Stress
2.Physical problem
3.Relational problem
4.Hangover
5.Unethical practices
6.Disturbed families
7.Decreased performance
Factors influencing work life balance:
1. Attitude of the employee
2. Psychological factors
3. Emotions management
4. Environment
5. Type of job
6. Other factors

Labour Localisation:
According to Potter Localisation is the process when a local
national fills a required job sufficiently competently to fulfil
organizational needs.
Advantages of External Source of Recruitment
1.Wider options: The personnel management will get
wider choice on the selection of candidates.
2. Fresh talent : Candidates who are selected to the
industry can bring fresh air, and fresh outlook. They
can bring new ideas.
3. Availability of qualified personnel: People having
skill, education and training will be obtained.
Demerits:
1.Expensive : A lot of money is to be spent on advertisement, conducting
test and interviews for selecting candidates so it’s a costly affair.
2.Consumes lot of time : It’s a lengthy process. Lot of time is required to
complete recruitment process.
3.Lack of co-operation: Existing employees will not cooperate with new
employees, they feel their promotional chance has been taken away.
4.Demoralisation of present employees: when new persons are recruited
outside, then present employees feel demoralised.
5.Greater labour turnover: If employees are recruited at higher posts
from outside sources, the existing employees will leave the organization
due to dissatisfaction.
6.Lose the sense of security: The existing employees lose their sense of
Methods of Job Evaluation

Qualitative Method Quantitative Method

Qualitative Methods:
Ranking Method:
This is the oldest and simplest method. Jobs are
ranked according its importance and without
considering any specific factors.
Preparation of Job Description
• Key job and its Rating
• Rating of other jobs
• Job classifications or Grading
• Advantages:
• It’s the simple and the oldest method
• Installation difficulty is less compared with other
methods
• It is economical
• Time taken for evaluation is less
• It involves little paper work
Disadvantages:
• Its suitable to small concern
• There is no scientific approach
• To allot a rank for a new job is a
difficult task
Quantitative Method:
1.Point method: This method is used for Job evaluation.
• Preparation of job description
• Factors influencing jobs are determined.
• Rate each job factor wise.
• Points get for each factor in a job are added together

Factors which influences jobs:

• Skill, education, experience and initiative
• Responsibility
• Mental and physical efforts
Merits :
• It ensures accuracy
• It is more effective because factors are considered
• It is fit for large concerns
• The resistance from labour union can be reduced.
• There is no place for personal prejudice.
Demerits:
• It is expensive
• Determination and selection of factors is a difficult task
• It is time consuming one
• An average worker cannot understand it easily
• Errors may occur
Modern Trends In Recruitment:
• Knowledge based Recruitment Method
• E-Recruitment / Online Recruitment Method
• Outsourcing
• Poaching / raiding
Knowledge based Recruitment Method:
Knowledge based recruiting focuses on assessing a employees
knowledge, skills and abilities through a structured and
scientific approach. This method aims to identify the best
candidate for a job by evaluating their cognitive abilities,
technical skills and behavioural competencies.
E- Recruitment:
It is also known as online recruitment, it is the process
of using digital channels to attract and select candidates
for Job.
• It is the process of using network to seek out eligible
candidates
• Use of technology to assist the recruitment process
• Job vacancies through worldwide web
• CV through email using the internet
Outsourcing:
• Company may draw persons from outsourcing firms.
• Outsourcing firm help the organization to screen the candidates
according to the needs of the organization.
• Outsourcing firm may charge the organization for their services.
• Company can save a lot of its time and resources.

Poaching:
• Attracting and hiring employees from other
organizations by offering better salary, benefits,
compensation and better working conditions.
Other Recruitment Methods:
• Walk in
• Consult in
• Body shopping

Concepts in modern Recruitment Methods:

• Scouting
• Re-Recruitment
• Event Recruitment
• Networking
• Make every employee a Recruiter
Modern recruitment practices
• Video
• Social networking sites
• Mobile recruitment
• Advertisement through public address system
 Difference between selection and recruitment

Selection: Recruitment:
• It is the procedure for personal placement. • It is the method of personal placement
• It is the process of elimination because it involves • Process of inviting application from probable candidate
rejection of unsuitable candidates. • Process of searching for prospective employees and
• To create a contractual relationship between employer helping them to apply for jobs
and employees. • Purpose of recruitment is to create a large pool of
• It aims at elimination of unsuitable candidate applicants.
• Process is complex. It consist of number of hurdles • Process is simple. Candidates are not required to cross
created by management deliberately. several hurdles.
Difference between selection and placement

Selection Placement
• Decision to accept or reject • Decision to place a selected
application on the basis of individual
candidates performance. • To match position with people
• To match people with • Number of available jobs are
large relative to the number of
position
selected persons.
• Number of applications are
relatively large
Induction:
Induction refers to the process of introducing
and integrating new employees into an
organization. It is a systematic approach to
help new hires understand the company
culture, values, policies and job expectations.
Objectives of Induction:
• To familiarise the new employees to the organisation rules and
regulations.
• To create a sense of belonging to the organisation among new
employees
• To build self confidence
• To help the new comer to overcome shyness and fear
• To create a close relationship between existing employees and
new ones.
• To provide information about the location of cafeteria, toilets,
rest room etc
• Explain job responsibilities and expectations
Socialization:
Socialization refers to the process of integrating new employees into an
organization’s culture, values and norms. It is a continuous process that
helps new employee to develop the necessary knowledge, skills and
attitudes to become productive member.

Process of Socialization:
1. pre-arrival stage: Learning the new employee before joining the organization
2. Encounter stage: New employee gets an understanding of what the
organization is and its expectations
3. Metamorphosis stage: New employee become fully trained in their jobs.
Assumptions of Socialization
1. Influencing employee performance: Work performance depends to a
considerable degree on knowledge what you should do or should not
do. Understanding right way to do the job
2. Increased stability: Organisational stability increased through
socialization. There should be loyalty and commitment.
3. Suffering from anxiety: Stress is high, the new member feels lack of
identification with new place, new rules and regulations
4. Socialization does not occur in a vacuum:
5. Similar new situations: Individual adjusts to the new situation. More
anxiety and worry
Employee Retention:
Employee retention refers to the strategies and
practices used to retain employees and reduce turnover.
It’s a critical aspect of HRM, as high turnover can lead to
significant costs, decreased productivity, and loss of
knowledge.
• Recruitment enhancement
• Employee turnover management
• Performance and productivity maintenance
• Cost effective
• Increases Morale
Retaining a valuable employee is essential:
• An organization invests time and money to shape individual
• An employee who resigns from the present organisation may
join the competitor
• To retain valuable employees
• Working longer period of time may become familiar with policies
and guidelines

Adverse effects of poor employee retention:

• Loss of company knowledge
• Interruption of customer service
• Regaining efficiency
Selection:
Selection refers to the process of identifying and choosing the most suitable
candidate for a job. It involves a series of steps to evaluate candidates
qualifications, skills, and fir for the job.

Steps:
• Receipt and scrutiny of application
• Preliminary Interview
• Blank application from – bio data, education qualification, work
experience, expected salary
• Tests - Intelligence Test
 Selection:
Dale Yoder “ selection is the process in which candidates for employment are divided into two classes those who are to
be offered employment and those who are not.”

Steps:
Receipt and scrutiny of application:
Preliminary Interview: Basic interview. It is conducted by the assistant, receptionist or secretary of personnel department