STRATEGIC HUMAN RESOURCE MANAGEMENT

INTRODUCTION TO HRM
Take away my People, But Leaves My Factories & Soon Grass Will Grow on Factory Floor
Take Away My Factories, but leave my People & Soon We Will Have a New & Better Factories
Andrew Carnegie
WHAT IS HRM
To Manage Organizations most valuable asset that is People who contribute for the attainment of
organizational goals
MODELS OF HRM - MATCHING MODELS
Reward
Selection

Performance

Appraisal
Development

Selection:
Appraisal:
Reward:
Development:

Match Available Human Resource to Job

Match with Performance
Match with Organization Performance
Match with High-Quality Employees

THE HARVARD FRAMEWORK FOR HRM

AIMS OF HRM
The Basic purpose of HRM is to ensure that organization is able to achieve success through people
Area of Aims:
1.

Organizational Effectiveness: Core Competencies how organization competes.

Distinctive HR practices shape the core competencies that determine how firms compete. HRM
strategies aim to support programs for improving organizational effectiveness by developing
policies in such areas as knowledge management, talent management & generally creating a
great workplace

2.

Human Capital: Combine Skills, Expertise, Intelligence

The Human Capital of an organization consists of people who work there & on whom the
success of business depends. Human Capital represents the Human factor in the organizations:
the combined intelligence, skills, & expertise that give the organization its distinctive character.
Human Capital can be regarded as prime asset of an organization & business need to invest in
the asset to ensure their survival & growth.

3.

Knowledge Management: Process to create & Share Knowledge

Knowledge Management is any process or practice of creating, acquiring, capturing, sharing, &
using knowledge, whenever it resides, to enhance learning & performance in Organization.
HRM aims to support the development of firms specific knowledge & skills that are the result
of Organization learning process.

4.

Reward Management: To Ensure People are Rewarded for Achievement

HRM aims to enhance motivation & commitment by introducing policies & processes that
ensure that people are valued & reward for what they do & achieve, & for the levels of skills &
competence they reach.

5.

Employees Relations: Partnership between employers & Employees

The aim is to create a climate in which productive & harmonious relationships can be
maintained through partnerships between management & employees & their trade unions.

6.

Meets Diverse Needs: Policies to meet needs of stakeholders

HRM ails to develop & implement policies that balance & adapt to the needs of stakeholders &
provide for the management of diverse workforce, taking in to account individuals & groups
differences in employment, personal needs, work style & aspirations & the provision of equal
opportunities for all.

CHARACTERISTIC OF HRM
1.

Diversity

2.

Strategic Nature of HRM: Strategic Integration:

The most significant feature of HRM is the importance attached to strategic integration, which
flows from top managements vision & leadership & which requires the full commitment of
people to it.

3.

The Commitment Oriented Nature of HRM: Commitment Orientation

4.

People as Human Capital: People to be Treated as Human Capital

The notion that people should be regarded as assets rather than variable costs, in other words
treated as human capital, was originally advanced by Beer et al (1984). HRM philosophy, as
mentioned by Karen Legge (1995), holds that human resources are valuable and a source of
competitive advantage. Armstrong and Baron (2002) stated that: People and their collective
skills, abilities and experience, coupled with their ability to deploy these in the interests of the
employing organization, are now recognized as making a significant contribution to
organizational success and as constituting a significant source of competitive advantage.

5.

HRM as a Management Driven Activity: Management Driven

HRM can be described as a central, senior-management-driven strategic activity, which is
developed, owned and delivered by management as a whole to promote the interests of the
organization that they serve.

6.

Focus of Business values: Business value in Focus

The concept of HRM is largely based on a management & business orientated philosophy. It is
concerned with the total interests of the organization the interests of the members of the
organization are recognized but subordinated to those of the enterprise. Hence the importance
attached to strategic integration and strong cultures, which flow from top managements vision
and leadership, and which require people who will be committed to the strategy, who will be
adaptable to change and who will fit the culture.

HRM & PERSONNEL MANAGEMENT

Personnel Management
Strategic Human Resource Management
Flow from Business Strategy
Emphasis on Strategic & Integration
Administrative in Nature
Business Partners - Welfare
Keep Employees Record
Maintain HR Information System
Mediate b/w Mgt & Employees
Plan, Monitor, & Control Resources
Right Person for the Right Job
Emphasis on Line-Mgt Roles
People Used for Companys Benefits
Employees Used for Mutual Benefits
Personnel Rules & Regulations
Organization Policy & Procedures
Personnel Support Services
Ensure Management Culture
Short-term & Re-active Approach
Long-term, Proactive & Integrated