SYLLABI

UNIT I CONTEXT OF SHRM

SHRM - SHRM models - strategic HRM vs Traditional HRM - Barriers to Strategic HR- Adopting an
Investment Perspective - Understanding and Measuring Human capital - Human side of corporate
strategies - strategic work redesign - Strategic Capability - Bench Marking.
UNIT II HUMAN RESOURCE DEVELOPMENT
Meaning – Strategic framework for HRM and HRD – Vision, Mission and Values – Importance –
Challenges to Organisations – HRD Functions - Roles of HRD Professionals - HRD Needs Assessment
- HRD practices – Measures of HRD performance – Links to HR, Strategy and Business Goals – HRD
Program Implementation and Evaluation – Recent trends –HRD Audit.
UNIT III E-HRM
e- Employee profile– e- selection and recruitment - Virtual learning and Orientation – e - training and
development – e-learning strategies- e- Performance management - and Compensation design - Use of
mobile applications in HR functions– Development and Implementation of HRIS – Designing HR portals
– Issues in employee privacy – Employee surveys online.
UNIT IV CAREER & COMPETENCY DEVELOPMENT
Career Concepts – Roles – Career stages – Career planning and Process – Career development
Models– Career Motivation and Enrichment –Managing Career plateaus- Designing Effective Career
Development Systems – Competencies and Career Management – Competency Mapping Models –
Equity and Competency based Compensation.
UNIT V EMPLOYEE COACHING & COUNSELING
Need for Coaching – Role of HR in coaching – Coaching and Performance – Skills for Effective Coaching
– Coaching Effectiveness– Need for Counseling – Role of HR in Counseling - Components of Counseling
Programs – Counseling Effectiveness – Employee Health and Welfare Programs.
COURSE OUTCOMES
• Understand the relationship of HR strategy with overall corporate strategy,
the strategic role of specific HR systems.
• Appreciate SHRM in the context of changing forms of organisation and will
have a better understanding of the tools and techniques used by
organizations to meet current challenges.
• To be more sensitive to cross-cultural issues and understanding of
international approaches to dealing with people in organisations. Students
will look at HRM in a broader, comparative and international perspective to
deal with complex issues and manifold risks.
• Providing an overview of the counselling and coaching processes and
techniques, Developing alternative approach to dealing with problem
situations in organisations
• Understand the career development theories and models and gain necessary
self -insight, skills and techniques to become effective HR managers
 UNIT I

CONTEXT OF SHRM
Strategic human resource management
(SHRM)
Meaning & Definition of SHRM
Strategic human resource management (SHRM)
can be defined as the process of managing
people in a way that optimizes the business's
goals and objectives.
Wright and McMahan in 1992 defined strategic
HRM as “the pattern of planned human resource
deployments and activities intended to enable
the firm to achieve its goals.”
NATURE OF SHRM
• Long-term Focus: As business strategies have a long-term orientation,
therefore, focus of SHRM is also long-term probably more than one year
• Associated with Goal-Setting: SHRM is highly related with setting of
objectives, formulation of policy and allocation of resources and it is
carried out at all levels of top management
• Interrelated with Business Strategies: There is an interrelation between
business strategies and SHRM. E.g. it gives significant inputs when
business strategy is formulated, and human resource strategies (like
recruitment, staffing, training and performance appraisal
• Fosters Corporate Excellence Skills: SHRM considers employees as the
strategic potential of the organization and on that basis makes effort to
differentiate the organization from its competitors present in the
markets. It also promotes learning of modern skills
Need of SHRM
• Identification of significance of HR
• Emphasis on work and employees instead of
position management
• More innovation
• Cost control and Asset development
Objectives of SHRM
Strategic HRM primarily focuses on resolving matters such as organizational
culture, hierarchy structure, effectiveness of operations, resource-role
matching, and performance challenges. Ideally, there are 5 primary
objectives of SHRM approaches:
• Resource-based Strategy: Focuses on enhancing the strategic capabilities of
the company
• High Commitment Management: Establishing better commitment between
managers and their employees.
• Achieving Strategic Fit: Integration of workforce and material resources
through a streamlined and high ROI oriented operational model
• High Involvement Management: Empowering and treating employees as
stakeholders.
• High-Performance Management: Enhancing company performance through
superior productivity, growth, and profitability rate of the workforce.
Importance of Strategic Human Resource
Management (SHRM)
It helps in the overall improvement of the organization. Besides that, here are some of
the major reasons why Strategic Human Resource Management is important.
• It helps in aligning HR practices with organizational goals.
• It allows businesses to attract and retain top talent and gain a competitive
advantage.
• It enhances the overall performance of the organization.
• It helps companies adapt to new changes as they occur in the organization.
• It focuses on recruiting and retaining the right talent that can match the criteria of
your strategic development.
• It’s a cost-efficient practice as it helps in optimizing your workforce utilization while
reducing the turnover cost.
• It helps in assessing and managing the risk related to human capital such as
compliance, workplace safety, and employee relations.
• It encourages you to measure the metrics and check your analytics to check your
growth and progress.
MODELS OF SHRM
• Integrated System Model
– Bamberger and Meshoulam (2000) integrate the two
main models of HR strategy, one focusing on the
strategy’s underlying logic of managerial control, the
other focusing on the reward–effort exchange. Arguing
that neither of the two dichotomous approaches
(control- and resource-based models) provides a
framework able to encompass the ebb and flow of the
intensity and direction of HR strategy, they build a
model that characterizes the two main dimensions of
HR strategy
• Acquisition and development are concerned with the extent to which the HR
strategy develops internal human capital as opposed to the external
recruitment of human capital. In other words, organizations can lean more
towards ‘making’ their workers (high investment in training) or more towards
‘buying’ their workers from the external labour market (Rousseau, 1995).
Bamberger and Meshoulam (2000) call this the ‘make-or-buy’ aspect of HR
strategy.
• Locus of control is concerned with the degree to which HR strategy focuses on
monitoring employees’ compliance with process-based standards as opposed
to developing a psychological contract that nurtures social relationships,
encourages mutual trust and respect, and controls the focus on the outcomes
(ends) themselves. This strand of thinking in HR strategy can be traced back to
the ideas of Walton (1987), who made a distinction between commitment and
control strategies (Hutchinson et al., 2000). These two main dimensions of HR
strategy yield four different ‘ideal types’ of dominant HR strategy:
Categorizing human resource management
strategies

Outcomes Commitment HR strategy Collaborative HR strategy

Locus of
workplace Paternalistic HR strategy Traditional HR strategy
control

Process

Internal Acquisition of employees External

HR strategy yield four different ‘ideal types’ of dominant HR strategy:

Commitment
Collaborative
Paternalistic
Traditional
Devanna et al’s Model / “Matching Model”/

•The matching model was developed by

Formbrun et al. (1984) at Michigan Business
school. It’s described as the hard approach
to HRM as it holds a less humanistic view.
•The model introduced the concept of
strategic HRM linked to the formation and
implementation of strategic corporate and
business objectives (Devanna et al., 1984. p.
34). The model stated that the HR system
and the organisation structure should be
managed in a way that is congruent with the
organisational strategy.
Traditional HRM Vs
Strategic HRM
 BARRIERS TO STRATEGIC HUMAN
RESOURCE MANAGEMENT
• Short term mentality: Short-term mentality and focus on the current performance of SHRM is the first
barrier. Every manager act, long-term focus, because the organization has been established with long-terms
objectives/focus.
• Strategic inability: Very often SHRM does not think strategically and he cannot think it due to incapability.
This type of inability may arise for many reasons as lack of technical knowledge, insufficient training and the
like.
• 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.
• Failure in understanding the role: General managerial roles may not be fully understood by be managers.
This failure is due to lack of knowledge about the specialty of a degree of responsibility. This failure may
create distance between these managers.
• 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.
• Wong perception on human assets: Investment in human assets may be regarded as high risk than that of
technology and information. Though these technologies are run by the human resources. This wrong
perception may inhibit the progress.
• 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 SHRM
INVESTMENT PERSPECTIVE OF HUMAN
RESOURCE MANAGEMENT
INTRODUCTION
The human element is often the most important element of performance. Thus,
appropriate resources and investments must be committed by any organization to
facilitate systems for attracting, motivating and managing human resources. Adopting a
strategic view of HR involves considering employees as “human assets,” and developing
appropriate policies and procedures to manage them as valuable investments.
SOURCES OF EMPLOYEE VALUE
1. Technical Knowledge – Market, Customer, Process, Environment
2. Ability to Learn and Grow - Openness to new ideas, Acquisition of knowledge/skills
3. Decision Making Capabilities – Analytical, Problem solving, Change management &
implementation skills
4. Motivation - Job Satisfaction, Challenging work, Perceived fit with organization
5. Commitment – Belief in mission, Engagement
6. Team Work – Interpersonal skill, Leadership ability
ADOPTING AN INVESTMENT PERSPECTIVE

1. Characterizing employees as human assets implies the strategic

management of human resources should include considering HR from an
investment perspective.
2. 2. Cost/Benefit basis analysis may be used to evaluate HR programs, such as
training and development.
3. 3. Investment perspective toward human assets facilitates their becoming a
competitive advantage as most other resources/assets can be cloned, copied
or imitated by competitors.
4. 4. A strategic approach to HR, however, does not always involve a human
relations approach to employee relations, as noted in the Managing
Employees at United Parcel Service example
5. 5. Investments in employees must be undertaken in tandem with strategies
to retain employees long enough to realize an acceptable return on
investments in employees. This requires valuation of the employee as an
asset, which can be difficult to do.
VALUATION OF HUMAN ASSETS
Valuation of human assets has implications for compensation, advancement, opportunities and
retention strategies as well as how much should be invested in each area for each employee

Ease of measurement Financial: Equity, security, investments,

accounts receivable.
Physical: Plant, land, equipment, raw materials
Market: goodwill, customer loyalty,
distribution networks, branding
Operational: management practices,
structure of works, technology
Human: education, knowledge, skills, work habits
and motivation, personal relationships,
More difficult competencies.

Financial and physical assets are relatively easy to measure via accounting practices. Most of these
assets are tangible and have some clear market value. Market and operational assets are a bit more
challenging to measure, but accounting practices have been developed that can place a general
subjective value on such assets. Human assets however are very difficult to measure
UNDERSTANDING AND
MEASURING HUMAN CAPITAL

Given that employees and their collective skills,

knowledge and abilities represent a significant asset
for organizations, a critical issue for organizations
becomes measuring this value as well as its
contribution to the organization’s bottom line. A study
evaluates HR operations on the basis of three rather
limited metrics:
a) Employee retention and turnover
b) Corporate morale and employee satisfaction
c) HR expense as a percentage of operational expense
HUMAN CAPITAL METRICS
• Monthly Turnover rate: (No.of separation during the month / Avg no.of
employees during the month )*100
• Revenue per employee: Total revenue / Total no.of employees
• Yield Ratio: % of applicant for a rectuitment source that make it to a
determined stage of the application process,
• Human Capital Cost: Pay+Benefits+Contingent Labour cost / Full time
equivalent
• HR to Staff Ratio: No.of HR Staff / Total No.of Employees
• Return of Investment: (Total Benefit –Total cost)*100
• Promotion Rate: Promotions/ Headcount
• Female % at management level: No.of Female Management staff / Total
no.of Management staffs
• Employee Absence Rate: No.of days in a month / (Average no.of employee
during the month*No.of days)
HUMAN SIDE OF CORPORATE STRATEGIES
STRATEGIC WORK REDESIGN
Job/ work Redesign Process:
• Revising the Job Content: Job redesigning process involves recollecting and revising job-
related information to determine the inconsistency between person and the job.
• Analyzing Job-related Information: Once the job analyst is through with recollecting and
revising the job content, analyzing the discrepancies is the next step. It is done to determine
the hindrances in performing job-related tasks and duties and investigate why an employee is
not able to deliver the expected output.
• Altering the Job Elements: The next step is to amend the job elements. It may include cut
back on extra responsibilities or addition of more functions and a higher degree of
accountability. The basic aim of altering the job content is to design a job in such a manner
that encourages employees to work harder and perform better.
• Reformation of Job Description and Specification: After altering the job elements, a job
analyst needs to reform the job description and specification in order to make sure that the
worker placed at a particular place is able to deliver what is expected of him.
• Reshuffling the Job-related Tasks and Duties: Next is to reallocation of new or altered tasks
and functions to employees. It may be done by rotating, enriching, enlarging and engineering
the job. The idea is to motivate the performers while increasing their satisfaction level.
ADVANTAGES OF JOB REDESIGNING
STRATEGIC CAPABILITY

• Strategic Capability is a concept that refers to

the ability of an organisation to develop and
implement strategies that help achieve and
sustain competitive advantage. It is based on a
deep understanding of the competitive
environment, the resource base and potential
of the organisation and the values that
engender commitment from stakeholders of
the organisation.
CHARACTERISTICS OF STRATEGIC
CAPABILITY

• A high level business competency

• A superior ability to detect, understand and direct
what is going in the marketplace
• The ability to transfer skills quickly and accurately
across the organization
• The ability to scale-up production to meet explosive
demand and quickly expand market reach
• The ability to generate new opportunity for the
organization
COMPONENTS OF STRATEGIC CAPABILITY

• Human capital
• Structural capital
• Relationship capital
BENCHMARKING
• Benchmarking is the process of comparing similar characteristics
between or within businesses, identifying the most successful
practices, and integrating them into the company procedure. After
collecting data for comparison purposes, HR professionals can better
determine the benchmark—the target they want to shoot for.
• Companies usually benchmark against similar competitors of the
same size or industry to understand how to incorporate better
practices into their routines.
• Benchmarking helps HR professionals identify successful practices in
other companies and areas for improvement in their own.
Benchmarking data enables HR leaders to analyze the causes behind
identified gaps and make more informed decisions about effective
practices and policies that need adjustment.
TYPES OF BENCHMARKING
There are two main types of benchmarking in HR: internal and external.
• Internal benchmarking is a comparison within an organization, such as comparing
the productivity of two teams or the profitability of two departments.
• External benchmarking is a comparison between competing organizations, often
seeking to determine where a business ranks in relation to others.
There are also other types of benchmarking that can be done both internally and
externally. These include:
• Process benchmarking: This type of benchmarking looks at processes like on
boarding, recruitment, or performance management
• Competitive benchmarking: Unlike process benchmarking, which focuses on a
single specific process, competitive benchmarking takes a holistic view of the
overall performance of organizations
• Functional benchmarking: This type of benchmarking looks at how successful
organizations are at achieving their goals, whether that be measured in terms of
revenue, market share, brand recognition, or something else