Name: AMBER USMAN

Class: MBA 3B
(morning)
Submitted On: 18-02-2010
Submitted to: MADAM
SHAGUFTA KASHIF
Report to :madam shugufta kashif

Topic : why it is important for the human resource

department to align its objectives with the organization’s
goals . Date: 18th feb 2010

Synopsis:The HR strategies should be integrated with

corporate or business strategies. human are the real
assets of any organization. there is a need of human and
conceptual and human work .firms can utilize their human
capital to get high returns. putting the right person on the
right job is the essence of HRM.

THE HUMAN RESOURCES OF AN ORGANIZATION CAN BE CONSIDERED THE MOST

SIGNIFICANT INPUT AN ORGANIZATION UTILIZES. IT IS THROUGH HUMAN RESOURCES

THAT ALL OTHER ACQUIRED AND USED .DECISIONS ABOUT HUMAN RESOURCES

TENDS TO DIRECTLY AFFECT THE QUALITY AND USE OF ALL OTHER RESOURCES.

PEOPLE ARE THE MOST VALUABLE ASSET THEN OTHER FACTOR OF PRODUCTION IN

ANY ORGANIZATION AND THERE IS A NEED TO BE TREATED WITH DESERVING

RESPECT AND DIGNITY.

EFFECTIVENESS AND EFFICIENCY ARE THE ULTIMATE GOALS OF HUMAN RESOURCE

MANAGEMENT.

ROETHLISBERGER AND DICKSON, OVER 30 YEARS AGE STATED THAT

“MANAGEMENT HAS TWO MAJOR FUNCTIONS

1) THE FUNCTION OF SECURING THE COMMON ECONOMIC PURPOSE OF THE

TOTAL ENTERPRISE

2) THE FUNCTION OF MAINTAINING THE EQUILIBRIUM OF THE SOCIAL

ORGANIZATION SO THAT INDIVIDUALS THROUGH CONTRIBUTING THEIR

SERVICE TO THIS COMMON PURPOSE OBTAIN PERSONAL SATISFACTION

THEREFORE THE GOALS OF HUMAN RESOURCE MANAGEMENT FOCUSES ON GIVING

A SYSTEM AND THAT ACCOMPLISH EFFECTIVENESS WITH EFFICIENT USE OF

HUMAN CAPITAL WHICH IS THE REAL ASSET OF ANY ORGANIZATION

HR IS ALWAYS A CORE DEPARTMENT OF ANY ORGANIZATION AND IN THE

PRESENT ERA THEY HAVE ACQUIRED AN EVEN MORE CENTRAL ROLE IN BUILDING

A COMPETITIVE ADVANTAGE FOR THE CORPORATIONS.

AS THE BUSINESS HAS BECOME GLOBAL AND IT IS NOW REALIZED BY THE

ORGANIZATIONS THAT THE WORD MOVES TOWARDS THE BORDERLESS

ECONOMIES, ONE OF THE MOST IMPORTANT ASPECTS OF A SUCCESSFUL

BUSINESS IS T UNDERSTAND AND MANAGE IT’S STRATEGICALLY AND

COMPETENTLY

OVER THE YEARS THE FIELD OF HR HAS GONE THROUGH VAST CHANGES IN

SCOPE, FUNCTIONS AND ACTIVITIES. WITH THE PROFESSIONAL MATURITY IN THE

FIELD, PERSONAL MANAGEMENT HAS CHANGED INTO HRM AND WITH MORE

ADVANCEMENT AND STRATEGIC POLICIES IT HAS NOW BECOME STRATEGIC

HRM…STRATEGIC HARM IS SYSTEMATICALLY LINKING PEOPLE WITH THE FIRM.

STRATEGIC HARM REGARDS “PEOPLE AS THE SINGLE MOST IMPORTANT ASSET

OF THE ORGANIZATION “(POOLE AND JANKINS 1990)

IT IS PROACTIVE IN ITS APPROACH TO PEOPLE. LASTLY, IT SEEKS TO ENHANCE

ORGANIZATIONAL PERFORMANCE, EMPLOYEE “NEEDS” AND SOCIETAL WELL-

BEING (IBID).

TRADITIONAL HUMAN RESOURCE IDEAS EMPHASIZE SOLELY ON PHYSICAL SKILLS,

CONCERN FOR EFFICIENCY OF AN INDIVIDUAL FOR THE ORGANIZATION AND

QUALITY OF WORK AND FINALLY THE WORK FORCE AS MANAGEMENT ADVERSARY,

WHILE THE EMERGING SHRM IDEAS EMPHASIZES THE TOTAL CONTRIBUTION OF

THE FIRM, OVERALL EFFECTIVENESS, INNOVATIVE AND CREATIVE BEHAVIOR,

CROSS FUNCTIONAL INTEGRATION, INVESTMENT ON PEOPLE AND FINALLY

WORKFORCE AS “MANAGEMENT PARTNER” (PEARCE AND ROBONSON JR

1997,319)

ACCORDING TO THE SHRM PRACTITIONERS HUMAN RESOURCE IS THE MAJOR

SOURCE OF COMPETITIVE ADVANTAGE SHAM RECOGNIZES THAT ORGANIZATIONS

CAN PLAY MORE EFFECTIVELY IF THEIR HUMAN CAPITAL IS MANAGED WITH HR

POLICIES AND PRACTICES.

THE KEY MESSAGE IN STRATEGIC MANAGEMENT IS THE NEED FOR HR POLICIES

AND PRACTICES TO BE CONSISTENT WITH THE OVERALL BUSINESS STRATEGY,

AND THE NEED FOR INDIVIDUAL COMPONENTS OF THE HRM PACKAGE TO

REINFORCE EACH OTHER.

IF BENCHMARKING AND STRATEGIC HRM ARE COMBINED,BETTER RESULTS MAY BE

ACHIEVEABLE. THE HR HAS TO PREPARE ITSELF TO COPE UP WITH RAPID

CHANGE AND TO PREPARE FOR AS MANY OF THESE CHALLENGES AS POSSIBLE IN

ORDER TO EXPLOIT THEM FOR COMPETITIVE ADVANTAGES.

THE HR POLICIES SHOULD BE FLEXIBLE SO IT SHOULD ADAPT THE SITUATIONS

ACCORDINGLY, THE KEY TO SUSTAINED COMPETITIVE ADVANTAGE IS BUILDING

AND SUSTAINING CORE COMPETENCIES WITHIN THE ORGANIZATION AND

MAINTAINING FLEXIBILITY TO GO WITH GLOBAL ECONOMIC MARKET CHANGE.

LAWLER AND MOHRMAN (1998) ARGUE THAT THE HR FUNCTION MUST

BECOME A PARTNER IN DEVELOPING AN ORGANIZATIONS STRATEGIC PLAN.HR IS

THE KEY CONSIDERATION IN DETERMINING STRATEGIES THAT ARE BOTH

PRACTICAL AND FEASIBLE.

THIS PARTNERSHIP MUST EVOLVE OUT THE MAJOR ACTIVATES OF THE HR

FUNCTION WHICH ARE

ORGANIZATIONAL DESIGN

STAFFING

EMPLOYEES AND ORGANIZATIONAL DEVELOPMENT

PERFORMANCE APPRAISAL AND MANAGEMENT

REWARDS SYSTEM AND BENEFITS

PRODUCTIVITY IMPROVEMENTS

EMPLOYEE-EMPLOYER RELATIONSHIP

INDUSTRIAL RELATIONS, AND

HEALTH AND SAFETY

THESE HR ACTIVITIES ARE ALSO CONSIDERED TO BE A KEY TO COMPETITIVE

ADVANTAGE

“IF THE HARM SYSTEM IS NOT PROPERLY ALIGNED WITH BUSINESS STRATEGIES,

BEST PRACTICES CAN POTENTIALLY BE IN CONFLICT WITHIN THE HRM SYSTEM

AND ACTUALLY DIMINISH THE FIRM’S PERFORMANCE”(BECKER ET AL.1997)

STRATEGIES LIKE RIGHTSIZING, OUTSOURCING, ADHOC BASES EMPLOYEMENT,

AND OPPORTUNITIES FOR EXPANSIONS ARE THE FEW EFFECTIVE APPROACHES FOR

ORGANIZATIONS TODAY.ONE OF THE MOST CRITICAL TASK IS TO ALIGN THE HRM

PROCESS WITH ITS BUSINESS STRATEGIES. AND THE COMPANY WHICH IS

SEEKING TO ACHIEVE COMPETITIVE ADVANTAGE MUST ALIGN HR WITH THE VISION

OF THE ORGANIZATION.
 DURING 1980S AND 1990 THE CORPORATE WORLD HAD A GREAT

EMPHASIZE ON THE IMPLEMENTATION OF THE STRATEGY WITH THE HRM

PRACTICES AND POLICIES .

SHIFT IN THE STRATEGIC HRM PERSPECTIVE HAVE CHANGED THE ORIENTATION

OF HR MANAGERS WORLD OVER.

THE HRM OF THE 1980S WAS REACTIVE IN NATURE AND THEY HAVE NOTHING

TO DO WITH THE COMPANY’S GOALS IN CONTRAST WITH THE STRATEGIC HRM

TODAY.

THE PERSONNEL HRM PERFORM STAFF FUNCTION ONLY AND KEPT ISOLATED WITH

THE ORGANIZATIONAL GOALS.PEOPLE WERE CONSIDERED AS LIABILITY AND JUST

ANOTHER RESOURCE IN THE PRODUCTION PROCESS.

ON THE OTHER SIDE MORE PROACTIVE ROLE WAS PLAYED BY HR IN STRATEGIC

HRM. IT HAS BECOME A STRATEGIC FUNCTION AND PLAYS AN INTEGRATED ROLE

IN THE COMPANY’S GOALS AND PLANNING.EMPLOYEES ARE CONSIDERED AS AN

IMPORTANT INVESTMENT.HR IS CONSIDERED AS A KEY PLAYER IN GETTING THE

COMPETITIVE ADVANTAGES.

AS RUONA AND GIBSON REMARKED

“TWENTY FIRST CENTURY STRATEGIC HRM LAY MORE EMPHASIS ON INCREASED

CENTRALITY OF PEOPLE FOR ORGANIZATIONAL SUCCESS ,IMPORTANCE OF WHOLE

SYSTEMS AND INTEGRATED SOLUTIONS IN STRATEGIC ALIGNMENT AND IMPACT AND

LASTLY ,HAS A TREMENDOUS CAPACITY FOR CHANGE”.

FIRM VARY ON PERFORMANCE ON THE BASIS OF HUMAN CAPITAL.THUS

ORGANIZATION PERFORM WELL OR NOT IT IS BECAUSE OF THEIR HUMAN

RESOURCE.PEOPLE DETERMINES THE ORGANIZATIONAL OBJECTIVE AND PEOPLE RUN

THE OPERATIONS TO GET THOSE OBJECTIVES.

HENCE PUUTING THE RIGHT PERSON ON THE RIGHT JOB AND USING THE STRATEGIC

MANAGEMENT APPROACH WILL ENHANCE ORGANIZATIOANAL EFFEINCY

PRODUCTIVITY AND THE PROFITABILITY.

THE WHOLE CONCEPT OF THE STRATEGIC MANAGEMENT IS BASED ON THE NOTION

HR STRATEGIES SHOULD BE INTEGRATED WITH CORPORATE OR BUSINESS

STRATEGIES.

IN PERSONNEL MANAGEMENT BEGINS AROUND THE END

THE FIRST STAGE OF

THE 19TH CENTURY .IT BEGINS PRIMARILY AS A CLERICAL OPERATIONS

CONCERNED WITH THE PAYROLL, EMPLOYEE RECORDS AND ARRANGING

COMMUNITY VISITS.

2ND STAGE EARLY 1900S-1930S

THIS IS THE PERIOD OF 1ST WORLD WAR 1 PERIOD OF MARKET PRESSURE AND

GREAT ECONOMIC DEPRESSION .THIS IS THE ERA OF PATERNALISM, LABOR

ADMINISTRATION.

3RD STAGE 1930S-1950S THIS IS THE PERIOD OF GROWTH OF LABOR

UNION AND WORLD WAR 2.THE PASSAGE OF SEVERAL LABOR LAWS IN THE

1930S LED TO THE GROWTH OF THE UNIONS IN THE ORGANIZATIONS. BY

1945,EMPLOYEMENT MANAGEMENT AND WELFARE WORK HAD BECOME
INTEGRATED UNDER THE BROAD TERM ,PERSONNEL MANAGEMENT AND

INDUSTRIAL RELATIONS.

4TH STAGE 1960S-1970S PERIOD OF GOVERNMENT LEGISLATIONS

PERSONNEL MANAGERS WERE INVOLVED IN PRODUCTIVITY BARGAINS ALONG

WITH THE LINE MANAGERS. IN 1970S,NADLER CAME UP WITH THE TERM,

HUMAN RESOURCE DEVELOPMENT, FOR DEVELOPING HUMAN RESOURCES IN

ORGANIZATIONS .DURING THIS PERIOD INCREASED LEGAL REQUIREMENTS AND

CONSTRAINTS ARISING FROM THE SOCIAL LEGISLATION FORCED DRAMATIC

CHANGES IN THE HR DEPARTMENT OF THE ORGANIZATIONS. AND ORGANIZATION

LOOK AT EMPLOYEE INVOLVEMENT ,COMMITMENT AND QUALITY OF WORK AS A

RESULT OF JOB DESIGN STRATEGIES.

5TH STAGE 1970S-1984 PERIOD OF GLOBALIZATION, ECONOMIC

LIBERALIZATION
 GROWTH OF COMPETITION AND THE DEMAND FOR IMPROVING THE

EFFICIENCY OF PEOPLE. PERSONNEL MANAGEMENT WAS SEEN AS A LINK FOR

ENHANCING THE RELATIONS BETWEEN EMPLOYEES AND EMPLOYERS .HERE IN

THIS ERA THE FIELD OF THE HRM MOVED FROM THE PERSONNEL PERSPECTIVE TO

HRM AND HRD

6TH STAGE 1984 PERIOD OF IT AND COMMUNICATION REVOLUTION,

GLOBALIZATION CONTINUES, EMERGENCE OF CHINA AND INDIA AS NEW CENTERS

OF ECONOMIC POWERS.

AROUND THE MID 1980S ,THE TERM “STRATEGIC HRM” ARRIVED

FROM THE US. THE TERM SEEMED TO SUGGEST THAT EMPLOYERS ARE THE

ASSETS FOR THE ORGANIZATIONS. WORK FORCE DIVERSITY WAS THE MAIN

EMPHASIS OF THIS ERA. RIGHTSIZING HAS BECOME THE MAIN CONCERN OF THE

HR DEPARTMENT. THE PRIMARY FUNCTION REMAIN THE SAME FOR HR, THAT

IS TO ADD VALUE BY ALIGNING ITS PEOPLE’S STRATEGIES WITH THE

ORGANIZATION’S BUSINESS STRATEGIES.

REFERENCING

ANURADHA SHARMA AND ARADHANA KHANDEKAR ,STRATEGIC HUMAN

RESOURCE MANAGEMENT ,A DIVISION OF SAGE PUBLICATIONS NEW DELHI ,

THOUSAND OAKS ,LONDON ,1-36

PARAG DIWAN ,HUMAN RESOURCE MANAGEMENT,GOLDEN BOOK CENTRE SDN

BHD,
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