CONTEMPORARY ISSUES

IN HUMAN RESOURCE

PRESENTED BY

AMIT GOYAL
PURAB MALHOTRA
AKANKSHA KHANNA
SUGANDHA VIDGE

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Contemporary issues with HRM

GLOBALIZATION: globalization refers to the

tendency of firms to extend their sales,ownership
and manufacturing to new markets abroad.
TECHNOLOGICAL ADVANCEMENT: many of the
improvements that make firms world class involve
technology.
ROLE OF THE GOVERNMENT: the government has
enacted various legislations to bring about an
equlibrium between the capitalists and the
labourforce.
WORKFORCE DIVERSITY: workforce is becoming
more diverse as women, minority groups
members and older workers enter the workforce.

STRATEGIC HUMAN RESOURCE

MANAGEMENT
Strategic human resource management is
the process of linking the human resource
function with the strategic objectives of the
organization in order to improve
performance.
It is a pattern of human deployment and
HRM activities undertaken to support the
implementation of corporate strategies for
better organisational performance.
It is the study of linkages between strategies
and HRM activities.

Process of SHRM
HRM Practices
Managerial
Operational

Mission

Goal

Human
resource
needs

HR
Capabili
ties

Skills
Behavior
Culture

Skills
Behavi
or
Abilities

HR
outcome
Behavio
r
Outcom
e
absente
eism
Producti
vity
Morale

Firms
outcome
Productivi
ty
Quality
Performan
ce

Competetive
advantage

I. Strategy formulation stage

Linkage between strategic planning and HRM:
Administrative linkage
Strategic
planning
HRM
One-way linkage

Two-way linkage
Strategic planning
HRM
Integrative linkage

Strategic
planning

Strategic planning

HRM

HRM

LINKAGE MODELS
1.Matching model
2.Control based model
3.Resource based model
4.Barneys model
5.SHRM Model Of Bamberger

MATCHING MODEL
Fombrunet al held that HR systems and the organisation
structure should be managed in a way which is congruent with
organisational startegy.
Corporate strategy + hrm strategy = competetive advantage
Strong linkage within the subsystems of the hrm strategy
Political
forces

Mission
strateg
y

Economic
forces

Cultural
forces

firm

Organistaional

structure

HRM
strategy

CONTROL BASED MODEL

When organizations hire people, they have only a
potential or capacity to work. To ensure that each worker
exercises his or her full capacity, managers must organize
the tasks, space, movement and time within which
workers operate.
But workers have divergent interests in terms of pace of
work, rewards and job security.
Workers own counter-management behaviour then
causes managers to control and discipline the interior
of the organization.
This can be explained by the following three methods:
Individual Control
Bureaucratic Control
Technological Control

RESOURCE MODEL
This model is based on the unique
resources and capabilites to give you a
sustainable competitive advantage.
The sum of peoples knowledge and
expertise, and social relationships, has
the potential to provide nonsubstitutable capabilities that serve as a
source of competitive advantage.

BARNEYS MODEL
Barney argues that four characteristics
of resources and capabilities
Value
rarity
Inimitability
non-substitutability

are important in sustaining

competitive advantage.

BAMBERGERS MODEL
Acquisition and development are concerned with the extent
to which the HR strategy develops internal human capital as
opposed to the external recruitment of human capital
Locus of control is concerned with the degree to which HR
strategy focuses on monitoring employees compliance with
process-based standards.
outcome

Workforce
locus
of control

COMMITMENT

COLLABORATION

PATERNALISTIC

TRADITIONAL

process
internal

external
Acquisition of employees

II. Strategy implementation stage

Internal analysis based on
Culture
Competencies
Composition
high
Unique
resourc
es
low

CONSULTING
WORKFORCE

CORE
WORKFORCE

ANCILLIARY
WORKFORCE

COMPULSARY
WORKFORCE

low

high
value

III. Strategic evaluation

stage
HR scorecard
It measures the effectiveness of HR activities.
Steps involved
1. Formulating the business strategy
2. Consulting with the value chain of the organisation
3. Laying out the strategy map
4. Identifying the organisational outcomes to be
achieved
5. Strategically fit hr functions
6. Deciding the metrics for measuring the impact of the
required behavior and capabilities
7. Strategic comparison with the strategic objectives
met.

PORTERS FORCES OF VALUE

CHAIN
SUPP
ORT
ACTIVI
TIES

FIRMS INFRASTRUCTURE
MARGIN

HRM PRACTICES & FUNCTIONS

VALUE
TECHNOLOGY
DEVELOPMENT
MARGIN
CORE
ACTIVI
TIES

INBOUND
LOGISTIC
S

OPERATIO
NS

OUTBOUN
D
LOGISTICS

SALES
+MARKETI
NG

SERVIC
ES

STRATEGY MAP

FINANCIAL

SHAREHOLDE
R VALUE
PROFIT

REDUCED
COSTS

REVENUES

CUSTOMER

INTERNAL
OPERATIONS
EMPLOYEE

FAST
SERVICE

LOW PRICE

EFFECTIVE
RESTRUCTURI
NG AND
DESIGNING

COMMITED
WORKFORCE

GREEN HRM

Green HR is a strategy used

primarily for reducing the carbon
footprint of each employee and
talent retention.

HR Processes Involved In Green

HRM
Recruitment-Online

Applicant
Tracking And Recruiting
Performance Management (PM) and
Performance Appraisal (PA)
Training and Development
Employee Administration
Employment Relations
Grievance and Discipline

ACTIONS COMPANIES CAN TAKE TO

GO GREEN
Conducting

an energy audit
Conducting annual survey
Recycle
Reduce commuting
Buying green
Detoxify
Implement green manufacturing processes
Implement green policies
Communicating about Going Green issues
Explore opportunities for implementing
alternative energy sources

GREEN RECRUITING
Green

Recruitment means a paper-free

recruitment process with a minimal
environmental impact. Applications are
invited through online mediums like email, online application forms or the
Global Talent Pool. If possible, telephone
or video-based interviews are conducted
to minimize any travel-related
environmental impact.

THE IMPORTANCE OF DEVELOPING AN

ECO-SAVVY WORKFORCE
More

inspired problem solving

Increased desirability as an employer
Less stressed budget
Improved employee retention

Companies implementing Green HR

Soft Choicefrom Canada.
Suzlon Energy
Tata Metaliks Limited (TML)
ITC Ltd.
Tamil Nadu Newsprint and Papers Limited
(TNPL)
Wipro TechnologiesHCL TechnologiesOil
and Natural Gas Company (ONGC)
IndusInd Bank
IDEA Cellular

ITC Ltd
Sustainable Initiatives at ITC Green ProductsPremium Business Paper: For the first time in
India ITC has launched an environment friendly
multipurpose paper "Paperkraft Premium
Business Paper", for office and home use using
a new technology 'Ozone Treated Elemental
Chlorine Free Technology' replacing Elemental
Chlorine which was conventionally used in the
bleaching process during paper manufacture.

IHRM
IHRM is the process of procuring,
allocating and effectively utilizing human
resources in an international business or
in a multinational organization.

IHRM
IHRM is a set of activities aimed at managing
organizational
human
resources
at
international level to achieve organizational
objectives
and
achieve
competitive
advantage over competitors at national and
international level.

IHRM includes HRM functions such as

recruitment,
selection,
training
and
development, performance appraisal and
dismissal done at international level and
additional
activities
such
as
global
skillsmanagement, expatriate management

Features of IHRM
IHRM involves employment of the right people at
the right positions, irrespective of geographic
locations.
It requires the development of a long-term HR
plan to make sure of an effective alignment of the
HR strategies with the corporate objectives.
It requires the development of a diversified range
of skills for employees, especially for those who
need to work beyond national boundaries.
It necessitates the determination of compensation
for host-, home- and third-country nationals on
the basis of country-specific factors.
It requires the creation of centralized reporting
relationships around the world for faster

OBJECTIVES of IHRM

The main objective of international human resources

management is to enable the firm, the multinational
enterprise (MNE), to be successful globally.
This entails being
competitive throughout the world
efficient
locally responsive
flexible and adaptable within the shortest of time
periods
capable of transferring learning across their globally
dispersed units.

Approaches to Managing and

Staffing Subsidiaries
Ethnocentric:

strategic decisions made at

the headquarters with limited subsidiary
autonomy
Polycentric: each subsidiary is a distinct
national entity with some decision making
autonomy.
Geocentric: global approach, view that each
part of the organisation makes unique
contributuion
Regiocentric: staff moves within the
designated region rather than globally

Major Issues of IHRM

1.

Management of expatriates

Selection of expatriates
. Expatriate training
. Expatriate evaluation
. Expatriate remuneration
. Expatriate failure
2. Management of repatriates
3. Comparison of HRM practices in a
variety of different countries
4. Management of international
assignments to women
.

Companies implementing IHRM

INFOSYS

Due to the interlinked and fantastic international HRM

structure they were rated Best companies to work for by
HAY group
Infosys international business strategy revolves around 5
elements:
World-class operating model.
Focusing on human resources.
Providing managed software solutions.
Exploiting a well established off shore development model.
Maintaining an equitable client and business mix.
The company believes that in order to succeed in the
competitive environment it is necessary to recruit, train, and
retain talented employees. Infosys aims at recruiting the best
available talent, training them according to the industry
demands and retaining them in a culture that promoted
informal learning and free flow of ideas.

Saxton Bradley Inc

(SBI)
Its

a U.S. based company

SBI wants to expand and operate its business
in Germany
SBI must adopt IHRM policies that will enable
the company to operate effectively in
Germany, where the firm wants to invest.
These activities comprise of reward and
performance management, sourcing, product
development, HR planning, employee
communications and involvement; and
recruiting of its employees.

 HRM

policies that will be beneficial to the company

and meet the needs of the employees in Germany
The IHRM implementers and managers must
ascertain the extent to which HRM policies and
strategies must be localized to be in line with
Germanys HRM policies
SBI must appraise the degree to which the local
cultural, economic, social, legal and political factors
will invade on any approaches undertaken to employ
standardized HR policies whereby integration is an
essential factor in companys HRM strategy.

Thank you