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Paradigm Shift in HRM

Personnel Function Maintenance oriented An independent function with independent sub-functions Reactive function, responding to events as and when they take place Exclusive responsibility of personnel department Emphasis is put on monetary rewards

Points of distinction Orientation Structure Philosophy

HRD Development oriented Consists of inter-dependent parts Proactive function, trying to anticipate and get ready with appropriate responses Responsibility of all mangers in the organisation Emphasis is on higher-order needs such as – job stretch and challenge, creative and problem solving, people empowering Better use of human resources leads to improved satisfaction and morale It tries to develop the organisation as a whole and its culture

Responsibility Motivators

Improved performance is the result of improved satisfaction and morale Tries to improve the efficiency of people and administration



procedures. Evaluation of Policies.Cost and Value of HR • Human Resource Audit – Examination. • Human Resource Research – Evaluating the effectiveness and developing the appropriate. practices to determine the effectiveness.Effectiveness of Human Resources Management • Organizational Health – Employee contribution and satisfaction • Human Resource Accounting . .

Moon Lighting by Employees – part time/business. flexible timings. 2. Non-Hierarchical Structure 2. 3. but not just skill and knowledge 3.EMERGENCES OF HRM 1. Employees for Lease 6. Attitude and Emotions. Outsourcing – “body shops” 7. 10. 8. Flexi Time – core working. Careers in HRM . 4. Leader-directed Working Group Leader/Member Rotating/Shared Leadership Self-Directed 4. Employee Referrals 5. 5. Dual Career Groups – women empowerment 9. 11. Team design and analysis 1. Employee’s proxy – another person qualified.

What is Knowledge Management .

renewal and application of knowledge to maximize an enterprise knowledge .related effectiveness and returns from its knowledge assets.• Knowledge management is “a systematic. explicit and deliberate building.” .

Knowledge Management Data Information Knowledge wisdom .

160cm. • Data are often viewed as the lowest level of abstraction from which information and knowledge are derived. • Jimmy – Age-46. Jimmy • The organized data are information. Height.Data.160 cm. Information • The term data means groups of facts and figures that represent the qualitative or quantitative attributes of a variable or set of variables. • 46 years. 90 Kgs. Weight –90 Kg .

• The knowledge becomes wisdom when it is used for a good cause of a large number of people. • Daily exercise. • 90 Kg of weight for a person with 160 cm of height is more. . help people reduce weight and keep themselves fit and healthy.Knowledge. he must reduce the weight. morning walk and Yoga etc. Wisdom • The processed information in the actionable form is referred to as knowledge.

observation. classify. decision making. expertise 3) Select – assessment of value – standard requirements 4) Store – nuggets. brain storming. include 5) Share – make it acceptable for employees 6) Apply – activities. success and failures. . skills.Knowledge Management Process 1) Identify -competencies 2) Collect – knowledge. feedback. exploiting opportunities 7) Customer acceptance – new/developed 8) Create stage.

It consists of individuals working out of physically dispersed workspaces. consisting primarily of patterns and relationships. or even individuals working from mobile devices and not tied to any particular workspace.Virtual Organization and HRM • Virtual Organization is a “Social network in which all the horizontal and vertical boundaries are removed.” . It is the coordination of intense structure. and this form needs the communication and information technology to function.

e-mail. and Flexi-work place Part-time work Job sharing Home based working Depends on IT – Internet. work etc. voice mail. . Loose organizational boundaries Dejobbing Multiskilling Flexibility in power. etc. mobile.Characteristics of Virtual Organizations • • • • • • • • • • • Flexi-work. Goal directed Customer centered. Flexi-time.

hotels. The human resource function plays a unique role in a virtual organisation: v Psychological fit: The lack of face-to-face interaction in a virtual organisation. v System alignment: Given the lack of physical proximity. very few permanent positions exist. the organisation will be staffed with workers having different motivational forces. In many cases. vision and measures be aligned and that all parties are familiar with these issues. virtually compels HR professionals to determine the psychological fit between different units initially. it becomes even more critical that the organisation's mission. their cars. v Reconsider rewards: In a virtual unit.3-6 Role of HR in a virtual organisation A virtual organisation is a network of companies or employees connected by computers. Cont… . So rewarding each entity in an effective way becomes an important job. or wherever their work takes them. the HR function can play an important role in this task. Virtual workers work from home.

teams have to be built from scratch paying attention to their unique requirements. most employees work on a contractual basis. . v Build partnerships: Virtual. creating a mission and instilling a sense of belonging to the organisation. knowledge and motivation levels becomes an important activity. HR can play a major role in ensuring that leaders assume these responsibilities and meet them in an effective way. The concept of employment needs to be replaced by the concept of 'partnership' especially when most tend to work independently away from the permanent employees or owners of the organisation v Develop leaders: Leaders become the major forces for building trust.3-7 Role of HR in a virtual organisation v Reconsider staffing needs: In a virtual organisation. Finding people with requisite skills.

Learning Organizations • Organizations learn through the learning of their employees. creations. • Intellectual manufacturing and marketing • Recognition and acceptance of knowledge as competitive advantage • Rapid change – Adopt L P G • Cultural unification • Increased customer awareness • Change in employees attitude towards change. . • Increased innovation. outcome of research. • A learning organization is one in which lives and breathes knowledge acquisition and skill development – the ultimate extension of ‘learning on the job’.

Characteristics of Learning Organizations. 1) Learning approaches to strategy 2) Participative policy making 3) Informing. information systems. automate 4) Formative accounting and control 5) Internal exchange 6) Reward flexibility 7) Enabling structures 8) Boundary workers as environmental scanners 9) Inter-company working 10)Learning culture 11)Self-development for all .

Actually speaking. reengineering takes place when more than 70 per cent of the work processes in an organisation are evaluated and altered. Reengineering The primary focus of TQM is on continuous improvement or ongoing incremental change. Reengineering is all about achieving this. . It is a continuous process of measuring products. services and practices against the toughest competitors or industry leaders with the aim of mutual improvement.3-12 Benchmarking Effective implementation of TQM requires benchmarking. The focus is on simplifying operations and making them more efficient and customer oriented. The essence of benchmarking is striving to be the best of the best in one’s area of operations.

but workers in other fields are also part of unions. including airline pilots and professional athletes. Unions have the express purpose of improving compensation and working conditions for the employees that they represent. There are significant differences between union and non-union workers . corruption has tainted some unions.Difference Between Union & Nonunion Workers • Unions have long been associated with manufacturing jobs and other blue-collar occupations. While in many cases they have accomplished this.

and it is negotiated between representatives of the management of the company and the union representatives. Unions bring the power of the group to the bargaining table.Collective Bargaining Union workers are covered by a collective bargaining agreement. Nonunion workers generally are not covered by a contract. This is also known as a contract. This contract governs all aspects of the working relationship between the two parties. It is up to the employee to negotiate his own terms of employment with the company management. .

particularly in the mid. the pay differences between union and non-union workers was more substantial. reducing this difference. The recession of the early-'80s required many unions to give substantial wage and benefit concessions. the increase in wages has been similar for union and non-union workers.Pay Differences • At one time. Union members often enjoy better benefits. particularly health benefits. During the '90s and late1970s. .

Contract Employment • An employment contract covers any situations where an employee could be fired or disciplined. The contract also outlines the processes that must be used to discipline an employee whose performance is not up to the employer's standards. . but these policies can change at any time the employer wishes. with no input from the employees. Most companies have their own guidelines and policies for discipline of non-union employees." meaning that either the employer or employee can terminate the relationship at any time. A non-union employee is subject to "employment at will.

Non-union workers may have to pay the fees if the majority of their co-workers are represented by a union. not all union employees support their unions' political views. However. A union member can ask that his dues not be used for political purposes. Unions also traditionally have engaged in political activities in order to further their cause.Costs A union employee must pay union dues and other fees. such as admission fees to join a union. and are not negotiable. but he may feel pressure to go along. but usually non-union workers do not pay to work for their employer. These fees can be sizable. .

a legal organization that represents the employees and manages. the hiring process. at least in part. and companies that work with unions have several common qualities that differentiate them from businesses that do not use union . based on the industries they work within. There are different types of unions.The Difference Between Union & Nonunion Companies Union or unionized companies are businesses that hire employees that belong to a union.

But unions often add extra guidelines to make sure that workers will not be mistreated or put in danger .Rules and Guidelines • Unions are responsible for creating many different rules in the industries they are a part of. These companies must provide workplaces that promote worker safety and health. Some of these rules apply to employees and the training they must go through. Of course. good companies will work toward these aims anyway. and state or central governments have their own safety rules. but many also apply to the companies that hire union workers.

Compensation • Union workers. This means that union companies must expect to pay more in compensation. Many companies balance this by offering fewer benefits to employees. such as health insurance. are paid more than employees who are not part of unions. and it is also a key point of negotiation between companies and unions . on average. but only up to a point. most unions also require companies to offer certain benefits. This is one reason that unions are popular among employees.

But companies want to make profits for shareholders and business expansion. Often they raise prices on their services or products. . so union companies often incorporate strategies to offset these extra costs.Pricing • In general. or cut costs throughout departments. This can lead to higher prices for consumers. whether from extra compensation or simply the costs of negotiation and meeting union guidelines. companies that work with unions have higher payroll costs. but it can also help foster company innovation and efficiency.

Often state and central laws outline this representation process so both sides can negotiate without bias or confusion. Companies without unions can also have representation policies. . Unions use their representatives to negotiate for higher wages or other changes. The companies involved in unionized industries create representation plans for themselves as well.Representation • Companies that work with unions also have a detailed representation policy. but they are rarely maintained as strictly.