SHRM

Environmental Context of HR
personnel, Diversity, PEST
Factor, Internal Resources as
Strategies
Chirag Patel
Harshdeep Singh
Deepak Rao
Nilay Shah
Ishu Sharma
Namita Shah
 A model of SHRM
External environment
Competition,
government
regulation, Staffing
technology,
Employee Laws
market trends, regulating
economic separation employment
Training
HR strategy
Corporate Business unit
strategy strategy Performance
HR planning,
design of jobs & management
work systems,
what workers do,
Culture, what workers
structure, politics, need, how jobs HRIS Compensation
employee skills, interface with
past strategy others

Labour
Internal environment relations
 Model to look at…
Political
Forces

Economic
Forces Cultural
Mission and Forces
Strategy

FIRM

Organization
HRM
Structure
 Work organization
Security
Organization of work that
Formal or informal
Decentralizes decision making;
employment guarantees
Often uses team-based production;
Internal labor markets
Work is typically
enlarged and enriched

Staffing
Careful emphasis on
recruiting & selection
Focus on fit
with the organization
Pay systems
The use of incentive pay
frequently at group, unit
and organizational levels;
Efficiency wages -
HR Person pay above the market rate

Training Democracy and

Emphasis on training for job skills, participation
basic skills, business skills, Sharing of information
and interpersonal skills;
to support
Training that also builds strong culture -
through orientation and decentralization
4
socialization programs;
Job rotation
 DEMOGRAPHIC TRENDS
Many of the major demographic trends
for the future are relatively well known.
Nonetheless, these massive changes in
demography have important
implications for human resource
management.
Major changes include an aging
workforce, the boom age glut, the bust
labor shortage, increased racial
diversity, and greater feminization of
the workforce.
TRENDS IN THE UTILIZATION OF
HUMAN RESOURCES
The Internet, e-mail, fax machines, cable
modems, personal computers, other forms of
telecommunications, that have allowed many
workers to work off-site by telecommuting.

Some also have been able to relocate

geographically while continuing to perform the
same work for their employers via
telecommunications technology.
 HR department roles
Does the HR function affect the success of
an organisation?
HR policies
Critical policy issues
– Employee influence
– Personnel flow
– Reward system
– Work systems
 Communication
Downward • Upward
– New employee – Suggestions
orientation programmes
– Bulletin boards – Complaint
– Communication procedures
meetings – Electronic mail
– Newsletters – Attitude surveys
– Employee – Open-door
handbooks meetings
Current issues & challenges
Worker productivity
Quality improvement
Downsizing, delayering & decruiting
The changing workforce
Global economy
The impact of government
Quality of working life
Technology and training
 Challenges facing HR managers
External Internal macro
macro environment
environment
Critical people
issues

External micro Internal micro

environment environment
 Fully developed HRIS database
Training &
Succession Career
development
planning development
& planning Affirmative
Skills action
inventory
Personnel module
Corporate, Bio-
HR planning & DATABASE graphical, Histo-
forecasting rical, Company/ HR
policies
Compensation
administration Position control

•Benefits Applicant
Future use •Health claims Health &
safety tracking
 Managing diversity
A planned systematic and
comprehensive managerial process
for developing an organisational
environment in which all employees,
with their similarities and
differences, can contribute to the
strategic and competitive advantage
of the organisation, and where
no‑one is excluded on the basis of
 What is diversity?
Recognition of the groups of people who
share such common traits
– Primary dimensions
– Secondary dimensions

Stereotypes & prejudices

– Stereotype – a fixed, distorted generalisation
about the members of a group: it is not
generalisation
– Prejudice – processing our stereotypes in such
a way to reinforce your own sense of
superiority to members of that group
 Factors that affect turnover
Employee
turnover
General Demographic
Economic factors
trends

Job security
Local
labour Personal
market mobility
 Three major components of
Effectiveness
“Doing the right things”

The production process

Labour,
Goods
material
Resource and Market
and capital Conversion
market services needs

Inputs Outputs

Utilisation & efficiency

“Doing things right”
 Herzberg’s two-factor theory
Level of job
dissatis-
Hygiene factors: faction
- job environ- More money, better
ment supervision, good
Hygiene needs
working conditions etc
creates Level of job
demand for performance

Level of job
+ job Motivators: satisfaction
opportu- Achievement,
Motivator needs nities responsibility,
allow growth, work itself,
workers to recognition
achieve
Using Internal Staffing Methods
Employee dissatisfaction
Increasing concerns with job security
Changing employee attitudes and
concerns
Employment equity issues
Labour union presence
 Advantages of internal staffing
Maintain closer control over the skills &
work habits acquired by their existing
employees.
Gradually prepare employees to fill
complicated or critical positions without
overburdening their capacity to learn.
Employers do not have to spend time
orienting the new incumbents to the
business environment or to standardise
operating procedures.
Have more detailed information about
the abilities, aptitudes and work habits
of internal employees.
 CONTD…
Employee satisfaction and commitment.

Fulfil hiring goals and timetables

specified in employment equity actions.

Employees placed in the best interests

of both the organisation and the
individual.

Can contribute to the organisation's

bottom line.
 PEST factor
Political
Environment
Social
Technology
Thank You