The document discusses the strategic role of human resource management. It outlines how HR has evolved from an administrative function to a strategic partner focused on developing talent and achieving organizational goals. Key points covered include the importance of HR for attracting and retaining talent, increasing productivity and profits. It also contrasts traditional, operational HR with strategic HR that takes a long term, transformational approach and positions people as a source of competitive advantage.

1. THE STRATEGIC ROLE OF
HUMAN RESOURCES
MANAGEMENT
1-1
1
Session 1 & 2

2. ANNOTATED OUTLINE
1-2
Introduction
- Creating a healthy Climate
- Full Utilization of the capabilities of people
- Bridging gaps between employee expectations and organizational
requirements
- HRM, in short, is the art of procuring, developing and maintaining
competent workforce to achieve the goals of an organization in an
effective and efficient manner.

3. Scope of HRM
1-5
 Personnel aspect
 Welfare aspect
 Industrial relations aspect
HRM mainly covers three broad areas

4. Importance of HRM
 attract and retain talent
 train people for challenging roles
 develop skills and competencies
 promote team spirit
 develop loyalty and commitment
 increase productivity and profits
 improve job satisfaction
 enhance standard of living
 generate employment opportunities
Good HR Practices help

5. Functions of HRM
1-9
– Planning
– Organising
– Directing
– Controlling
Operative Functions
P/HRM
Managerial
functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executive
development
Career
planning
Succession
planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social security
Integration:
Grievances
Discipline
Teams and
teamwork
Collective
bargaining
Participation
Empowerment
Trade unions
Employers’
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM

6. Strategic Human Resource
Management
1-10
Competitive advantage through people?
Competitive advantage allows a firm to gain an edge over its rivals
when competing. It comes from a firm’s unique ability to perform
activities more distinctively and more effectively than rivals. HR can be
a source of competitive advantage when the talents of people working
in the firm are valuable, rare; difficult to imitate and well organised to
deliver efficient and effective results.

7. The evolving strategic role of
Human Resource Management
1-11
Strategic focus
Operational focus
People
System
Strategic partner Change agent
Administrative expert Employee champion

8. 1-
Realising the growing importance of HR, a new line of thinking
emerged elevating the status of HR to that of a strategic partner both
in the formulation of a firm’s strategic as well as in the implementation
of business activities. SHRM, simply stated, is the linkage of HRM
with strategic goals and objectives with a view to improve business
performance and develop organisational cultures that foster
innovation and flexibility. Strategic HR differs radically from traditional
HR in a number of ways:
Strategic Human Resource
Management

9. Traditional HR vs. Strategic HR
1-13
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investments
Accountability
Responsibility for HR
Traditional HR
Employee Relations
Transactional change
follower and respondent
Slow, reactive, fragmented
Short-term
Bureaucratic-roles, policies,
procedures
Tight division of labour;
independence,
specialisation
Capital, products
Cost centre
Staff specialists
Strategic HR
Partnerships with internal and
external customers
Transformational change leader
and initiator
Fast, proactive and integrated
Short, medium and long (as
required)
Organic-flexible, whatever is
necessary to succeed
Broad, flexible, cross-training
teams
People, knowledge
Investment centre
Line managers

10. Shifts in HR management in India
1-19
Emerging HR practice
 Strategic role
 Proactive
 Key part of organisational
mission
 Service focus
 Process-based organisation
 Cross-functional eams,
teamwork most important
 People as key
investments/assets
Traditional HR practice
 Administrative role
 Reactive
 Separate, isolated from
company mission
 Production focus
 Functional organisation
 Individuals encouraged,
singled out for praise,
rewards
 People as expenses

11. HRM in the new millennium
Current thinking in HRM strongly supports the view that when
opportunities for growth and enhancement of skills are available in an
organisation, people will be stimulated to give their best, leading to
greater job satisfaction and organisational effectiveness. To this end,
therefore, HR managers in the new millennium are expected to
successfully evolve an appropriate corporate culture, take a strategic
approach to the acquisition, motivation and development of human
resources and introduce programmes that reflect and support the core
values of the organisation and its people.
 Size of work force
Demands for better pay, benefits, working conditions
Cont…

12.  Composition of workforce
Equal pay for equal work
Breaking down of glass ceiling
Constitutional protection to minority groups
Importance to factors such as age, sex, religion, region, caste especially while
dealing with multifarious, heterogeneous, culturally diverse work groups
 Employee expectations
Better educated, more knowledgeable, emotionally strong and demanding
workforce
Demand for educated, trained, experienced and knowledgeable workers growing
Understand individual differences and develop appropriate policies to meet their
growing expectations.
Cont…
HRM in the new millennium

13.  Changes in technology
Modernisation, computerisation, sophistication increasing by the day
Knowledge and skills need to be refined constantly
Training, retraining and mid-career counselling important
Equip employees so as to cope with dramatic challenges brought forward by rapid
advances in science and technology
 Life style changes
 Environmental challenges
 Personnel function in future
Job redesign
Career opportunities
Productivity
Recruitment and selection
Training and development
Rewards
Safety and welfare Cont…
HRM in the new millennium

14.  Changes in 21st century affecting HRM
HR as a springboard for success
Talent hunting, developing and retraining
Lean and mean organisations
Labour relations
Health and benefit programmes
HRM in the new millennium

15. Roles Of HR Managers
 - Reactive / Proactive Roles
 - The Business partner Role
 - The Strategist Role
 -The Interventionist Role
 - The Innovation Role
 - The Internal Consultancy Role
 - The Monitoring Role