HRM – DEVELOPING AN

UNDERSTANDING

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 THE STARK REALITY
INCREASING
RAPIDLY
- COMPETITION
CHANGING
- CUSTOMER
DISRUPTIVE
AWARENESS
TECHNOLOGY
- COSTS
MULTIPLE PRESSURES
ON
ORGANISATIONS

CHANGING PROFILE OF HUMAN RESOURCES

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 HUMAN RESOURCES
PAST IN INDIA AND THE TODAY
 Mostly and largely SUBCONTINENT
 Literate, educated,
uneducated well Informed
 Lack of information  Acquires skills fast
and idea  Mobile, away from
 Mostly in their own family, place of birth
village / town / city,  Nuclear family
known by the family  Social anonymity
 Remain close to  No longer tied to
family and / or known family skill /
society – agrarian profession /
background obligation
 Somehow earn and  Highly aspirational,
survive demanding,
 Not much hope and assertive
aspiration  Demand equality
 Next generation –  Looks for improving
same profession given social status
 So on and so forth Version 2022
 Challenge authority
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 The context of HRM

The external

environment
Society
The organization

Politics Culture Technology

Politics
HRM Purpose
Policies &
Procedures
Management &
Leadership
Technology

Economics

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 HRM AND ITS ENVIRONMENT

CULTURAL UNIONS

STRATEGY,
TASK &
TECHNOLO- LEADERSHIP

INTERNAL
EXTERNAL GICAL

HRM
ORGANISATIONAL
CULTURE &
ECONOMIC CONFLICT

POLITICAL- PROFESSIONAL
LEGAL BODIES

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 BUSINESS UTILIZES RESOURCES
TECHNOLOGY/ KNOW-HOW OF
FINANCIAL OPERATION /
RAW MATERIAL SERVICE

GOODWILL /
MARKET BUSINESS UTILIZES MARKET
INFORMATION
VARIOUS RESOURCES CREDIBILITY

SOCIAL
HUMAN CUSTOMER
SUPPORT
CAPITAL
RESOURCE

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The economic uncertainty of the last few years in
many industrial economies, the growth of
globalization and the increased pressure on Board
of Directors has led to demands that HR
revalidates its contribution to the business.

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We are in a VUCA world - this is the ‘New Normal’

V = VOLATILITY V = VISION

U = UNDERSTANDING
U = UNCERTAINTY
C = CLARITY

C = COMPLEXITY A = AGILITY

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 HUMAN RESOURCE MANAGEMENT ?

M = MANAGE
I = INSPIRE
N = NURTURE
D = DEVELOP

E = ENGAGE / EMPOWER
HUMAN RESOURCES IN AN ORGANIZATION
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 HUMAN RESOURCE
MANAGEMENT DEFINED
HRM IS DEFINED AS A STRATEGIC AND COHERENT
APPROACH TO THE MANAGEMENT OF AN
ORGANISATION’S MOST VALUED ASSETS – THE
PEOPLE WORKING THERE, WHO INDIVIDUALLY
AND COLLECTIVELY CONTRIBUTE TO THE
ACHIEVEMENT OF ITS OBJECTIVES.

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“HUMAN RESOURCE MANAGEMENT INVOLVES ALL
MANAGEMENT DECISIONS AND ACTIONS THAT AFFECT THE
RELATIONSHIP BETWEEN THE ORGANIZATION AND
EMPLOYEES – ITS HUMAN RESOURCES”.
Beer et al (1984)

HUMAN RESOURCE MANAGEMENT RELATES TO THE TOTAL

SET OF KNOWLEDGE, SKILLS AND ATTITUDES THAT FIRMS
NEED TO COMPETE. IT INVOLVES CONCERN FOR AND
ACTION IN THE MANAGEMENT OF PEOPLE, INCLUDING:
SELECTION, TRAINING AND DEVELOPMENT, EMPLOYEE
RELATIONS AND COMPENSATION. SUCH ACTIONS MAY BE
BOUND TOGETHER BY THE CREATION OF AN HRM
PHILOSOPHY.
Pettigrew and Whipp (1991)
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 SCOPE OF HRM
NATURE
OF HRM EMPLOYEE
HIRING

PROSPECTS
OF HRM
HUMAN
RESOURCE COMPEN-
MANAGEMENT SATION

INDUSTRIAL
RELATIONS

EMPLOYEE
EMPLOYEE MOTIVATION
MAINTENANCE

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 AIMS OF HRM

ORGANIZATIONAL EFFECTIVENESS

HUMAN CAPITAL MANAGEMENT

KNOWLEDGE MANAGEMENT

REWARD MANAGEMENT

EMPLOYEE RELATIONS

MEETING DIVERSE NEEDS

BRIDGING THE GAP BETWEEN RHETORIC AND REALITY

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 OBJECTIVES OF HRM

o TO HELP THE ORGANISATION REACH ITS GOALS

o TO EMPLOY THE SKILLS AND ABILITIES OF THE WORKFORCE
EFFECIENTLY
o TO PROVIDE THE ORGANISATION WITH WELL TRAINED AND
WELL MOTIVATED EMPLOYEES
o TO INCREASE TO THE FULLEST THE EMPLOYEE’S
JOB SATISFACTION AND SELF-ACTUALISATION
o TO DEVELOP AND MAINTAIN A QUALITY OF WORK LIFE
o TO COMMUNICATE HR POLICIES TO ALL EMPLOYEES
o TO BE ETHICALLY AND SOCIALLY RESPONSIVE TO
NEEDS OF THE SOCIETY

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 CHARACTERSTICS OF HRM
 HRM IS DIVERSE
 HRM HAS TO BE STRATEGIC WITH AN EMPHASIS ON
INTEGRATION
 HRM IS COMMITMENT ORIENTED
 HRM IS BASED ON THE BELIEF THAT PEOPLE SHOULD BE
TREATED AS ASSETS
 HRM IS UNITARIST RATHER THAN PLURALIST,
INDIVIDUALISTIC RATHER THAN COLLECTIVE IN ITS
APPROACH TO EMPLOYEE RELATIONS
 HRM IS A MANAGEMENT- DRIVEN ACTIVITY
 THE DELIVERY OF HRM IS A LINE MANAGEMENT
RESPONSIBILITY
 HRM IS FOCUSED ON BUSINESS VALUES
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 Fundamentals of HR activities

 Administrative Objective

 Staffing Objective

 Performance Objective

 Change Management Objective

Thus, these are considered traditional HR functions

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 Definition Of HR Roles:
Role Deliverable / Metaphor Activity
outcomes

Management of Executing strategy Strategic Partner Aligning HR & Business

Strategic Human Align HR strategies & Strategy:
Resources Practices with Business ‘Organisational
Strategy (i.e. Mariott offering 5 diagnosis’)
day week in Hong Kong to
retain people)

Management of Building on efficient Administrative Expert Reenergising

Firm Structure infrastructure HR professionals design & organisation process:
deliver HR processes for ‘Shared Services’
staffing, training rewarding etc
Management of Increasing employee Employee Champion Listening & responding
Employee commitment & HR Professionals should be to Employees:
Contribution capability Active & aggressive in ‘Providing resources to
developing human capital employees’
Management of Creating a renewed Change Agent Managing
Transformation organization Enhance employees’ capacity transformation &
and Change for change change: ‘Ensuring
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 HOW DOES IT CONNECT ?
M
I Managing Human
HR Trust & Belief in N Actions* Resources
Philosophy HR capability D

E P P
O R
Employee Champion L A
I C
Administrative Expert C T
I I
Strategic Partner
E C
S For attaining
Change Mastery E
Business results
S
(performance
*Require HR competencies for HR people & Winning Line Managers’ confidence, results)
Understanding Business Strategy and goals, Dealing / Managing
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CHANGE (VUCA = 18
New Normal)
 HOW HR MAKES AN IMPACT?
(D E GUEST et. al.)
BUSINESS HR EFFECTIVENESS
STRATEGY

QUALITY OF
GOODS &
SERVICES
HR
OUTCOMES
HR
PRACTICES FINANCIAL
FINANCIAL
•EMPLOYEE
PERFORMANCE
PERFORMANCE
COMPETENCE
•COMMITMENT
•FLEXIBILITY
PRODUCTIVITY
HR
STRATEGY

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J STOREY BELIEVES THAT HRM CAN BE REGARDED
AS A ‘SET OF INTERRELATED POLICIES WITH AN
IDELOGICAL AND PHILOSOPHICAL UNDERPINNING’.
HE SUGGESTS FOUR ASPECTS THAT CONSTITUTE
THE MEANINGFUL VERSION OF HRM:
1 A PARTICULAR CONSTELLATION OF BELIEFS AND
ASSUMPTIONS
2 A STRATEGIC THRUST INFORMING DECISIONS
ABOUT PEOPLE MANAGEMENT
3 THE CENTRAL INVOLVEMENT OF LINE MANAGERS
4 RELIANCE UPON A SET OF ‘LOVERS’ TO SHAPE THE
EMPLOYMENT RELATIONSHIP
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Storey (1989) also talked about –
Hard HRM: Views people as a resource used as a means of achieving
organizational goals.

Soft HRM: Encourages employers to develop strategies to gain

employee commitment.

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 IMPORTANCE OF HRM
ATTRACT & RETAIN TALENT
TRAIN PEOPLE FOR CHANGING
ROLES
DEVELOP SKILLS &
COMPETENCIES
PROMOTE TEAM SPIRIT
GOOD HR PRACTICES DEVELOP LOYALTY &
COMMITMENT
HELP INCREASE PRODUCTIVITY &
PROFITS
IMPROVE JOB SATISFACTION
ENHANCE STANDARD OF
LIVING
GENERATE EMPLOYMENT
OPPORTUNITIES
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