Amity Business School

SHRM

Module I

Dr. Paritosh Mishra

 Amity Business School

Mo Topics/ Descriptor Weig

dule htage

I The Concept of Strategic Human Resource Management 20%

(SHRM)
The Concept of Strategic Human Resource Management
(SHRM),Strategic HRM Defined, The evolutionary stages of
Strategic HRM, Objectives of SHRM, , An Investment
Perspective of HRM, Competencies of HR Professional in a
SHRM Scenario, Emerging Issues in SHRM, HRM
Environment, The Evolving Strategic Role of HR
 Amity Business School

Learning outcomes

• The conceptual basis of strategic HRM

• The fundamental characteristics of strategy
• Components of SHRM
 Amity Business School

Module I

The Concept of HRM

 Meaning Amity Business School

• Human Resource Management is the process of

– recruiting, selecting, inducting employees, providing orientation,

– imparting training and development,

– appraising the performance of employees,

– deciding compensation and providing benefits,

– motivating employees,

– maintaining proper relations with employees and their trade unions,

– ensuring employees safety, welfare and health measures in compliance

with labour laws of the land.

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 Meaning
Amity Business School

Why do we call it Human Resource Management?

• Human: refers to the skilled workforce in an organization.

• Resource: refers to limited availability or scarce.

• Management: refers how to optimize and make the best use of such

limited or scarce resource so as to meet the organizational goals

and objectives.
• Therefore, human resource management is meant for proper

utilization of available skilled workforce and also to make efficient

use of existing human resource in the organisation.

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 Scope of
HRM Amity Business School

Control Acquisition

- HR Audit - HRP
- HR Accounting - Recruitment
- HRIS - Selection
HRM - Placement

Maintenance/ Development
Retention
- Training
- Remuneration - Career Development
-Motivation - OD
-Health & Safety - Internal Mobility
-Social security
-IR/ER
-Performance appraisal
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 Functions of HRM
Amity Business School

HRM

Managerial Operative
functions Functions

– Planning
Procurement: Development: Motivation and Maintenance Integration: Emerging
Compensation: : Issues:
Job Analysis Training Grievances
Job design Personnel
– Organizing
HR planning Executive Discipline records
Health, Safety
development Work scheduling
Recruitment Trade unions Personnel
Motivation audit
Selection Career Welfare
planning Employers’
Job evaluation associations Personnel
– Directing Placement
Succession Performance research
Social Collective
Induction planning and potential security bargaining HR
Internal appraisal accounting
Human Participation
mobility Compensation
– Controlling resources HRIS
development administration Empowerme Job stress
strategies Incentives nt
benefits and Mentoring
Industrial
services relations International
HRM
Teams and
teamwork
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 Milestones in the Development
of HRM Amity Business School

• 1890-1910
Frederick Taylor develops his ideas on scientific
management. Taylor advocates scientific selection of
workers based on qualifications and also argues for
incentive-based compensation systems to motivate
employees.

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 Scientific Management Amity Business School

– The systematic study of the relationships between

people and tasks for the purpose of redesigning the
work process for higher efficiency.

• Defined by Frederick Taylor in the late 1800’s to

replace informal rule of thumb knowledge.
• Taylor sought to reduce the time a worker spent on
each task by optimizing the way the task was
done.
Four Principles of Scientific Management
and increased efficiencyAmity Business School

1. Study the ways jobs are performed now and

determine new ways to do them.
• Gather detailed time and motion information.
• Try different methods to see which is best.
2. Codify the new methods into rules.
• Teach to all workers the new method.
3. Select workers whose skills match the rules.
4. Establish fair levels of performance and pay a
premium for higher performance.
• Workers should benefit from higher output.
Problems with Scientific Management
Amity Business School

• Managers frequently implemented only the increased output side of

Taylor’s plan.

– Workers did not get share in the increased output.

• Specialized jobs became very boring, dull.

– Workers ended up distrusting the Scientific Management
method.

• Workers could purposely “under-perform.”

– Management responded with increased use of machines.

• The core jobs dimensions of skill variety, task identity, task

significance, autonomy and feedback all are missing.
 Milestones in the Development
of HRM Amity Business School

• 1910-1930
Many companies establish departments devoted to
maintaining the welfare of workers.
• The discipline of industrial psychology begins to develop.
• Industrial psychology, along with the advent of World
War I, leads to advancements in employment testing and
selection.

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 Hawthorne Experiments (1924-1932)
Amity Business School

The Hawthorne plant of General Electric Company, Chicago, was

manufacturing telephone system bell. It employed about 30,000
employees at the time of experiments.

In respect of material benefits to workers, this was the most

progressive company with pension and sickness benefits and other
recreational facilities, still there was great deal of dissatisfaction
among the workers and productivity was not up to the mark.
 Hawthorne Experiments (1924-1932)
Amity Business School
A team was constituted led by Elton Mayo (psychologist), Whitehead and
Roethlisberger (sociologists and company representative, William Dickson. The
researchers set out to study the relationship between productivity and physical
working conditions.

The four phases:

 Experiments to determine the effects of changes in illumination on productivity,

illumination experiments (1924-27)

 Experiments to determine the effects of changes in hours and other working

conditions on productivity, relay assembly test room experiments(1927-28)

Conducting plant-wide interviews to determine worker attitudes and sentiments,

mass interviewing programme(1928-30)

 Determination and analysis of social organization at work, bank wiring

observation room experiments(1931-32)
 Implications of the Hawthorne Experiments:
Amity Business School

 Social factors in output : Since, people are social beings, their social
characteristics determine the output and efficiency in the organisation.

 Group Influence: Groups are formed to overcome the shortcomings of

formal relationships. The group determines the norm of behavior of members.

 Conflicts: There may be conflict between organization and groups so

created. The conflict may be because of the incompatible objectives between the
two.

 Leadership: It is very important for directing group behavior, and this is one
of the most important aspects of managerial functions. How ever, leadership
cannot come only from formally-appointed superior as held by earlier thinkers.
 Milestones in the Development
of HRM Amity Business School

1930-1945
The interpretation of the Hawthorne Studies' begins to have an impact on
management thought and practice. Greater emphasis is placed on the social
and informal aspects of the workplace affecting worker productivity. Increasing
the job satisfaction of workers is cited as a means to increase their productivity.
1945-1965
In the U.S., a tremendous surge in union membership between 1935 and 1950
leads to a greater emphasis on collective bargaining and labour relations within
personnel management.

Compensation and benefits administration also increase in importance as

unions negotiate paid vacations, paid holidays, and insurance coverage.

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 Milestones in the Development
of HRM Amity Business School

1965-1985

The Civil Rights movement in the U.S. reaches its apex with passage
of the Civil Rights Act of 1964. The personnel function is affected by
Title VII of the Civil Rights Act , which prohibits discrimination on the
basis of race, colour, sex, religion, and national origin.

In the years following the passage of the CRA, equal employment

opportunity and affirmative action become key human resource
management responsibilities.

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 Milestones in the Development
of HRM – Post 1985 Amity Business School

1. increasing diversity of the labor force, in terms of age, gender, race,

and ethnicity. HRM concerns evolve from EEO and affirmative action to
"managing diversity."
2. globalization of business and the accompanying technological
revolution. These factors have led to dramatic changes in
transportation, communication, and labor markets.
3. Focus on HRM as a "strategic" function. HRM concerns and
concepts must be integrated into the overall strategic planning of the
firm in order to cope with rapid change, intense competition, and
pressure for increased efficiency.

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Human Resource Management &
Personnel Management Amity Business School

2
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http://www.hp.com/hpinfo/abouthp/diversity/value.ht
 New Economic Policy
Amity Business School

• India embarked on a new Economic

Policy. Some of the features of this
policy were as under:-

Core sector have been opened for private

sectors
Disinvestment of PSU’s have become
reality
 Amity Business School

• Multinationals are allowed to invest in India in non

strategic sectors- inflow of FDIs
• Banking and insurance sectors are opened to
investment by foreign FIIs.
• Restrictions and regulations on industrial licensing
and inspections were relaxed.
• India, being member of WTO, IMF and WB,-
declared as its policy to follow guidelines.
• New players like consumer forums, NGOs,
environmental compaigners and electronic media are
replacing trade unions in many grey areas.
 Changing Role of HR
Amity Business School

From Personnel Management to Human Resource Management

 Workforce management in its rudimentary nuances started in England in the later Middle
ages along with the systems of the craftsmen and apprenticeship.
 Further got institutionalised with the ushering in of the industrial revolution in the late
1800s.
 Fredrick Taylor in the 19th century focussed on labour productivity.
 Development of personnel departments in the 1920s
 The phrase ‘Personnel Management’ emerged in Management literature after the World
War II in 1945.
Human Capital Management

Market conditions rendered many of the traditional sources of competitive advantage, such
as patents, economies of scale, access to capital, and market regulation, less important than the
core competencies.
As organizational capital, these are largely invisible; but their sources rivet on a capable,
inspired and adaptable work force, and in the HRM system that develops and sustains it
 Amity Business School

The Evolving Strategic Role of

HR
 David Ulrich HR
Model Amity Business School

 “David Ulrich HR Model”, describes four key

roles of HR Manager :

1) HR Business Partner - (Management of

Strategic Human Resources)
2) Change Agent - (Management of
Transformation & Change)
3) Administration Expert - (Management of
Firm Infrastructure)
4) EmployeeAdvocate - (Management of
Employees’ Contribution)
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 HR Business Partner
(HRBP) Amity Business School

 HR business partners are HR professionals

who work closely with an organization's senior
leaders in order to develop an HR agenda that
closely supports the overall aims of the
organization.

 The HR business partner serves as a

consultant to management on human
resources-related issues.

 The HR business partner may include

international human resource responsibilities.
 Change Agent Amity Business School

 A change agent is a person from inside or

outside the organization who helps an
organization transform itself by focusing on
such matters as organizational effectiveness,
improvement, and development.

 A change agent usually focuses his efforts on

the effect of changing technologies, structures,
policies and tasks on interpersonal and group
relationships in the organization.

 The focus is on the people in the organization

and their interactions.
 Administration
Expert Amity Business School

 "Administration" is related to the

management side of the organization.

 The purpose of “Administration

Expert” is to cut out unnecessary costs,
improving efficiency, and constantly
finding new ways to do things better.
 Employee Advocate
Amity Business School

 This role includes ensuring that employees who

are having problems get a fair hearing.

 Employee advocate must know the

employees well and spend time meeting with
and listening to employees.
 Employee advocate must promote
communication, which can include employee
surveys, employee suggestion programs, all-
employee meetings, on-going communication
of business status, and any other programs
that can make employees feel part of the team
and dedicated to customer service.