CURRENT TRENDS IN HR

 EMPHASIS ON STRATEGIC PLANNING & SUCCESSION

 VP of HR is a Strategic Manager, Management Succession Planning

 EMPHASIS ON COST-RELATED ISSUES / COST CONTROL

 Global Competition, Outsourcing and Downsizing

 NEW SPECIALTIES EMERGING IN HR

 HR Planning, International HR, Employee Assistance Programs

 GROWTH OF GOVERNMENTAL REGULATIONS

 Wages (1930s), Unionization (1940s), Employment (1960s)

 PROFESSIONALIZATION OF HR MANAGEMENT
 Professional HR Societies & HRCI (Certification Institute)

 THE INTERNET REVOLUTION

 Electronic Recruiting, Records Management, and HRIS
System approach to Human Resource Management (4
inter related factors)
 Human resource approach – people constitute a form of
capital and act as one of essential assets
 Personnel climate – personnel environment conducive for
development of Human Capital as long term investment
capable of yielding rich dividends
 Human resource program – to achieve the twin aims of
productivity and satisfaction
 Human Resource System – with relevant inputs , processing
and outputs
 Five separate sub-systems are
 Employment
 Development
 Utilization
 Compensation
 Maintenance
SYSTEMS APPROACH TO HRM
 A NEW MODEL OF HRM

 More strategic (not strictly focused on day-to-day

operational needs)
 More proactive (less reactive)
 More of a consultant to line management (less of a
bureaucratic specialist)
 More of an “employee champion”
COMPETENCIES NEEDED FOR
HRM

 Personal credibility

 Business mastery

 HR mastery

 Change mastery
PROFESSIONAL ORGANIZATIONS IN
HR:

 Society for Human Resource Management

 Human Resource Certification Institute
 American Society for Training & Development
 American Compensation Association
 STRATEGIC HUMAN RESOURCE
MANAGEMENT

 The linking of HRM with strategic goals and

objectives in order to improve business
performance and develop organizational
cultures that foster innovation and flexibility.
 Involves formulating and executing HR systems—
HR policies and activities—that produce the
employee competencies and behaviors that the
company needs to achieve its strategic aims.
LINKING COMPANY-WIDE AND HR STRATEGIES
 STRATEGIC HUMAN RESOURCE
CHALLENGES

Basic Strategic
Challenges

Corporate Expanded role of Increased HR team

productivity and employees in the involvement in
performance organization’s design of strategic
improvement efforts performance efforts plans
HUMAN RESOURCE MANAGEMENT’S STRATEGIC
ROLES

Strategic
Planning
Roles

Strategy Strategy
Execution Formulation
Role Role
CREATING THE STRATEGIC HUMAN RESOURCE
MANAGEMENT SYSTEM

Components of a
Strategic HRM System

Human Resource
Human Resource Employee Behaviors
Policies and
Professionals and Competencies
Practices
THREE MAIN STRATEGIC HUMAN RESOURCE SYSTEM
COMPONENTS

Characteristics of HPWS
•multi-skilled work teams
•empowered front-line workers
•extensive training
•labor-management cooperation
•commitment to quality
•customer satisfaction
BASIC MODEL OF
HOW TO ALIGN
HR STRATEGY
AND ACTIONS
WITH BUSINESS
STRATEGY “
 ROLE OF GOVERNMENT IN HR

 Govt or state machinery regulates the relationship between

workers’ organizations and employers’ organizations.
 It does it through :
- Statutes and legislations,
- The judiciary- labor courts industrial tribunals
- An executive machinery- that lays down rules,
procedures and gives awards and monitors them
 MAJOR LEGISLATIONS

 India being a welfare state has taken up itself the responsibility of

extending various benefits of social security and social assistance to its
citizens.
 Although the constitution of India is yet to recognize social security as
a fundamental right, it does require state to promote the welfare of the
people by providing social, economic and political justice
 Constitution requires companies to make effective provisions for
securing right to work, to educate and public assistance in case of
unemployment, old age, sickness and disablement. Securing just and
humane conditions of work. Raise level of nutrition and standard of
living, improvement of public health etc
 A social security division has been set up under the ministry of labor
and employment.
 In the context of labor , social security aims at reducing risks against
loss of earnings or earning capacity due to old age, illness or work-
related injuries.
Social security to the workers is provided through 5 major Acts:

1. The Employees State Insurance act, 1948

2. Employees’ provident Fund and Miscellaneous provisions Act
3. The Worker’s Compensation Act
4. The Maternity Benefit Act
5. The payment of Gratuity Act
 In addition there are large number of welfare funds also for some specific
segments
 Major thrust of social security relating to labor is on:
a) Provisions relating to medical facilities, compensation benefits
and insurance coverage incase if accidents, incapacity, illness
etc..
b) Provisions relating to provident fund and gratuity