Contemporary issues with HRM• GLOBALIZATION: globalization refers to thetendency of firms to extend their sales,ownership and manufacturing to new marketsabroad.• TECHNOLOGICAL ADVANCEMENT:many of the improvements that make firmsworld class involve technology.• THE NATURE OF WORK: technology is alsochanging the nature of the work. Even factoryjobs are more technologically demanding.• WORKFORCE DEMOGRAPHICS: theworkforce is becoming more diverse aswomen, minority groups members and olderworkers enter the workforce.
SHRM• Strategic human resource management means formulating andexecuting HR systems ,HR policies and activities that produce theemployee competencies and behaviors the company needs toachieve its strategic aims.• Pattern of HR related decision strategies adopted over a period oftime and its linkages with the corporate strategies to be able toachieve the distinctive competitive advantage.• A company’s plan for how it will match its internal strength andweakness with external opportunities and threats in order tomaintain a competitive advantage.• A pattern of top management decision for fulfilling the goal andobjectives of the organization and achieve competitive advantage.
CONTROL BASED MODEL• When organizations hire people, they have only a potential orcapacity to work. To ensure that each worker exercises his or herfull capacity, managers must organize the tasks, space, movementand time within which workers operate.• Workers’ own counter-management behaviour then causesmanagers to control and discipline the interior of theorganization.• This can be explained by the following three methods: Individual Control Bureaucratic Control Technological Control
Resource Based Model• The sum of people’s knowledge and expertise, and socialrelationships, has the potential to create competitive advantage.• Resources TangibleNon-tangibleThresholdResourcesUniqueResourceDistinctiveCompetencyThresholdcompetencySame ascompetitorDifferent fromcompetitorresourcecompetency
BARNEY’S MODEL•Barney argues that four characteristics ofresources and capabilities –– Value– rarity– Inimitability– non-substitutabilityare important in sustaining competitiveadvantage.•Resources which have value are rare, whichcannot be initiated or substituted, will be helpfulin shaping the HR strategies which inturn willgive the organisation competitive advantage.
BAMBERGER’S MODELCOMMITMENT COLLABORATIONPATERNALISTIC TRADITIONALWorkforce locusof controloutcomeprocessAcquisition of employeesinternal external• Acquisition and development are concerned with the extent to which theHR strategy develops internal human capital as opposed to the externalrecruitment of human capital• Locus of control is concerned with the degree to which HR strategyfocuses on monitoring employees’ compliance with process-basedstandards.
II. Strategy implementation stageInternal analysis(3 c’s) based on•Culture•Competencies•CompositionCONSULTINGWORKFORCECOREWORKFORCEANCILLIARYWORKFORCECOMPULSARYWORKFORCEhighVALUElow highUNIQUNERESOURCESHR architecture
III. Strategic evaluation stageHR scorecardIt measures the effectiveness of HR activities.Steps involved1. Formulating the business strategy2. Consulting with the value chain of the organisation3. Laying out the strategy map4. Identifying the organisational outcomes to be achieved5. Strategically fit HR functions6. Deciding the metrics for measuring the impact of therequired behaviour and capabilities7. Strategic comparison with the strategic objectives met.
Company practicing SHRM• FedEx, one of the toptransportation companies of the world has beenpracticing Strategic Human ResourceManagement over years. It has also gained acompetitive edge over the other firms.
IHRM• IHRM is the process of procuring, allocating and effectivelyutilizing human resources in an international business or in amultinational organization.• IHRM is a set of activities aimed at managing organizationalhuman resources at international level to achieve organizationalobjectives and achieve competitive advantage over competitors atnational and international level.• IHRM includes HRM functions such as recruitment, selection,training and development, performance appraisal and dismissaldone at international level and additional activities such as globalskills management, expatriate management and so on.
Features of IHRM• IHRM involves employment of the right people at theright positions, irrespective of geographic locations.• It requires the development of a long-term HR plan tomake sure of an effective alignment of the HR strategieswith the corporate objectives.• It requires the development of a diversified range of skillsfor employees, especially for those who need to workbeyond national boundaries.• It necessitates the determination of compensation forhost-, home- and third-country nationals on the basis ofcountry-specific factors.• It requires the creation of centralized reportingrelationships around the world for faster informationsharing.
oBJeCTIVES of iHRMThe main objective of international humanresources management is to enable the firm, themultinational enterprise (MNE), to besuccessful globally.This entails being• competitive throughout the world• efficient• locally responsive• flexible and adaptable within the shortest oftime periods• capable of transferring learning across theirglobally dispersed units.
MAJOR FUNCTIONS OFIHRM• Recruitment and selection•Training and Development• Performance evaluation• Remuneration and benefits• Labour relations
Approaches for Managing & StaffingSubsidiaries• Ethnocentric: strategic decisions made atthe headquarters with limited subsidiaryautonomy• Polycentric: each subsidiary is a distinctnational entity with some decision makingautonomy.• Geocentric: global approach, view thateach part of the organization makes uniquecontribution• Regiocentric: staff moves within thedesignated region rather than globally
Major Issues of IHRM1) Management of expatriates• Selection of expatriates• Expatriate training• Expatriate evaluation• Expatriate remuneration• Expatriate failure2) Management of repatriates
3) Comparison of HRM practices ina variety of different countries4) Management of internationalassignments to women
Companies implementing IHRMINFOSYSDue to the interlinked and fantastic international HRM structure theywere rated “Best companies to work for” by HAY groupInfosys 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 competitiveenvironment it is necessary to recruit, train, and retain talentedemployees. Infosys aims at recruiting the best available talent,training them according to the industry demands and retaining themin a culture that promoted informal learning and free flow of ideas.
PROCTER & GAMBLEIn P&G, one of the priorities for HR at globallevel is to develop HR capability. This is beingachieved by creating interdependencies withinthe HR community across the company. Asophisticated network of ten communities ofpractice, each focusing on a different area ofHRM activity (such as remuneration oremployee relations) has been established.These communities are international, and areresulting in less difference between countriesin HRM policies due to the collaborativenature of policy development andimplementation.
GREEN HRM• Green HR is a strategy used primarily for reducing the carbonfootprint of each employee and talent retention.• This term is combined by traditional CSR concept with longer-term renewable approach to business practices.• It involves undertaking environment-friendly HR initiativesresulting in greater efficiencies, lower costs and better employeeengagement and which in turn, help organizations to reduceemployee carbon footprints by the likes of electronic filing, car-sharing, job-sharing, teleconferencing and virtual interviews,recycling, telecommuting, online training.
Green HRM processes• Green Recruiting• Training, Development, and Learning• Performance Measurement• Compensation and Rewards
Green work-life balance (WLB)• It can be assumed that the full potential of GreenHRM in theory and practice has not yet beenrealized. One conceivable deficit which couldhamper the greening process is that the green HRpolicies focus only on employees’ working role.• We need to acknowledge that environmentallyrelevant attitudes and behavior are not learnedexclusively at the workplace, but also in private life.• People have distinctive modes of living. Theypractice specific consumption patterns in theireveryday life, Therefore employees’ private role asconsumers is considered crucial for learning andpracticing environmental attitudes and behavior.
Actions companies can take to go green:• Conducting an energy audit• Recycle• Reuse• Reduce commuting• Buying green• Implement green manufacturing processes• Implement green policies
Companies implementing Green HR• ITC LtdSustainable Initiatives at ITC GreenProducts- Premium Business Paper: Forthe first time in India ITC has launchedan environment friendly multipurposepaper "Paperkraft Premium BusinessPaper", for office and home use using anew technology Ozone TreatedElemental Chlorine Free Technologyreplacing Elemental Chlorine which wasconventionally used in the bleachingprocess during paper manufacture.
• ONGC: Implementing Green HR practicesProject of Landscaping, designing of gardenand greening of area in the campus ofJollygrant Airport, Dehradun is started.ONGC has many such initiatives towards greenHRM. Another one is Vadodara Movementwith Indian Express.