You are on page 1of 11

Strategic Human Resource Management is very important in order to

gain competitive performance by utilizing human resource of an organization

1. SHRM encourages managers to be proactive which means to think ahead.
2. Attainment of organization objectives through human capital.
3. It enhances individual performance by development of commitment at all levels.
4. It enables development of need based personnel policy/HR policy as a
prerequisite for optimum use of human resources.
5. Integration of HRM policy with business goals or objectives.
6. Developing supportive work culture in order to encourage creativity, team work,
TQM as well as innovation and a sense of belonging.
7. Creation of flexible environment because in flexible environment employees can
easily adapt to changing competitive environment.
8. Creation of flexible working hours/ function.
9. Integration of people related issues with business issues.

The role of human resource management is changing very fast. This change is
required in order to help corporates to achieve their goals. In recent years we have
seen that HRM has undergone many phases. Initially main focus of HRM was on
hiring and firing, however in current corporate scenario HRM has much more
responsibilities like relationship building, legislation role. HR role is now shifting
from protector to strategic partner.

Nowadays most of the high performing organizations are flattened with least
hierarchy which requires highly skilled employees to gain competitive edge in
market. So HR role has drastically changed to develop and implement company
strategy in order to achieve its goals.
As HRM is concerned with people who work in organization, it becomes very
important for HRM to hire good people, train them, retain good employees in order
to achieve the organizations long term objectives. In recent years all the above HR
roles are being used strategically and so now HRM is termed as SHRM.

Knowledge management is an activity practised by enterprises all over the world. In the process
of knowledge management, these enterprises comprehensively gather information using many
methods and tools.
Then, gathered information is organized, stored, shared, and analyzed using defined
The analysis of such information will be based on resources, documents, people and their skills.
Properly analyzed information will then be stored as 'knowledge' of the enterprise. This
knowledge is later used for activities such as organizational decision making and training new
staff members.
There have been many approaches to knowledge management from early days. Most of early
approaches have been manual storing and analysis of information. With the introduction of
computers, most organizational knowledge and management processes have been automated.
Therefore, information storing, retrieval and sharing have become convenient. Nowadays, most
enterprises have their own knowledge management framework in place.
The framework defines the knowledge gathering points, gathering techniques, tools used, data
storing tools and techniques and analyzing mechanism.
The Knowledge Management Process
The process of knowledge management is universal for any enterprise. Sometimes, the
resources used, such as tools and techniques, can be unique to the organizational environment.
The Knowledge Management process has six basic steps assisted by different tools and
techniques. When these steps are followed sequentially, the data transforms into knowledge.

Step 1: Collecting
This is the most important step of the knowledge management process. If you collect the
incorrect or irrelevant data, the resulting knowledge may not be the most accurate. Therefore,
the decisions made based on such knowledge could be inaccurate as well.
There are many methods and tools used for data collection. First of all, data collection should be
a procedure in knowledge management process. These procedures should be properly
documented and followed by people involved in data collection process.
The data collection procedure defines certain data collection points. Some points may be the
summary of certain routine reports. As an example, monthly sales report and daily attendance
reports may be two good resources for data collection.
With data collection points, the data extraction techniques and tools are also defined. As an
example, the sales report may be a paper-based report where a data entry operator needs to
feed the data manually to a database whereas, the daily attendance report may be an online
report where it is directly stored in the database.
In addition to data collecting points and extraction mechanism, data storage is also defined in
this step. Most of the organizations now use a software database application for this purpose.
Step 2: Organizing
The data collected need to be organized. This organization usually happens based on certain
rules. These rules are defined by the organization.
As an example, all sales-related data can be filed together and all staff-related data could be
stored in the same database table. This type of organization helps to maintain data accurately
within a database.
If there is much data in the database, techniques such as 'normalization' can be used for
organizing and reducing the duplication.
This way, data is logically arranged and related to one another for easy retrieval. When data
passes step 2, it becomes information.
Step 3: Summarizing
In this step, the information is summarized in order to take the essence of it. The lengthy
information is presented in tabular or graphical format and stored appropriately.
For summarizing, there are many tools that can be used such as software packages, charts
(Pareto, cause-and-effect), and different techniques.
Step 4: Analyzing
At this stage, the information is analyzed in order to find the relationships, redundancies and
An expert or an expert team should be assigned for this purpose as the experience of the
person/team plays a vital role. Usually, there are reports created after analysis of information.
Step 5: Synthesizing
At this point, information becomes knowledge. The results of analysis (usually the reports) are
combined together to derive various concepts and artefacts.
A pattern or behavior of one entity can be applied to explain another, and collectively, the
organization will have a set of knowledge elements that can be used across the organization.
This knowledge is then stored in the organizational knowledge base for further use.
Usually, the knowledge base is a software implementation that can be accessed from anywhere
through the Internet.
You can also buy such knowledge base software or download an open-source implementation
of the same for free.
Step 6: Decision Making
At this stage, the knowledge is used for decision making. As an example, when estimating a
specific type of a project or a task, the knowledge related to previous estimates can be used.
This accelerates the estimation process and adds high accuracy. This is how the organizational
knowledge management adds value and saves money in the long run.
Knowledge management is an essential practice for enterprise organizations. Organizational
knowledge adds long-term benefits to the organization in terms of finances, culture and people.
Therefore, all mature organizations should take necessary steps for knowledge management in
order to enhance the business operations and organization's overall capability.
Non Traditional HR Approaches: Investment in Disabled Employees
Before we move on to the core of the issue, we must define what disability or being disabled means
Someone who is disabled has an illness, injury or condition that tends to restrict the way they live their
life, especially by making it difficult for them to move about.
Thus, the employee, who is working for the organization, will be termed disabled if he/she is suffering
from an injury or illness which affects or restricts them from performing their job effectively.

There can be two types of disabled employees
1. Disabled while employed: i.e. the person was fit and sound during the start of employment
relationship, however, during the tenure of his/her service he turned disable, which can be either:
On-the-job: This is during the work hours while working at premises.
Off-the-job: This is not at work premises, but surely after the start of employment relationship.
2. Disabled prior to employment: Here the employer is well aware of the disability yet employ the
person for the job.
1. Disabled While Employed
There can be short- and long-term disability (STD and LTD).While dealing with such a case the employer
must follow the following procedure.
The Interactive Process, whereby through an informal open discussion with the disabled employee, the
precise job related limitation imposed by the employees disability are being realized and how those
limitations could be overcome with a reasonable accommodation. Even if the departments ability to
accommodate the employees disability seems doubtful, the department must still conduct a good-faith
interactive process.
There are four levels of possible accommodation:
1. Job Accommodation: Modification of job duties, job environment and/or work schedule.
2. Modified Work: Lateral transfer into an existing position for which employee is qualified.
3. Transferable Skills: Transfer to demoted position or position of lesser terms/conditions (last
resort accommodation.).
4. Alternate Work: However, consideration should be given to his present salary and the distance of
the new work place from his residence.
Consider the preference of the individual to be accommodated and select and implement the
accommodation that is most appropriate for both the employee and the employer. The employer should
not accommodate the employee in case:
1. The disabled employee cannot perform the essential functions of the job; and that no reasonable
accommodation exists.
2. The person would create an imminent and substantial danger to him/her self or to others by
performing the job; and there is no way to remove or reduce the danger.
In such a scenario employer may use medical separation and also appoint a rehabilitation counselor for
the disabled employee.
2. Disabled Prior to Employment
There could be any form of disability namely
1. Mental health
2. Physical Disability
3. Learning Disability
which the employer is aware of prior to employment. But still considers their employment as a part of
social responsibility, alongside trusting their capability to perform the task fit for them.
The trend of employing disabled as well as keeping provisions for employees disabled after employment
is gaining momentum which can be due to:
Realization of social responsibility by employers.
Government intervention
Trade benefit schemes, tax benefits etc.
Reasons for this change
Disability Confident employers will have access to a wider talent pool. Technological developments and
increasing use of flexible working mean that organisations are able to create enabling environments where
more disabled people can contribute to business success.
Engaging with Potential Employees (Disabled)
Attracting talented disabled candidates can be problematic. Experience of leading employers suggests
that multiple (project based) recruitment tends to attract more disabled candidates than single-post
Employer needs to build a brand which symbolize welcome and fair treatment.
Consider offering work experience and internship opportunities to disabled people.
Sector based initiatives can help to change peoples views of working in a particular industry.
Considering high staff turnover and an acute shortage of skilled workforce, qualified technical people
who are disabled can be good alternative. Unfortunately when it comes to recruitment, employers tend to
look the other way if the job candidate is a person with disability.
But still the percentage of disabled employees is very low. Most employers are reluctant to employ the
disabled because of concerns regarding safety regulations, the need to modify premises such as installing
ramps, disabled-friendly toilets and extra medical costs.
Even if they are employed, the system that is being followed in the organization does not work in
their favor There is, however, concern that some management practices, even those imposed without
prejudice on all employees, might have a disparate effect on the health and performance of some disabled
With the advancement in technology, the potential of these employees can be enhanced to a higher level.
For example, speech device can be used as a tool to support the person who is verbally impaired.
Similarly, visually disabled can convey through special computers. Thus we need such things along with
training for the disabled employees as well as the normal employees to help them adjust to the changes,
and their differently-abled employees. Though, this may seem as an investment but the benefits are far
reached and rewarding. Return on investment is far greater considering people with disabilities tend to be
appreciative and loyal employees, because they have difficulties finding jobs. Their commitment to work
has to do with their self-esteem. This notion of work, as a prideful activity, is something they definitely
Cost to Keep Disabled Employee (Employed)
Employers experience multiple direct and indirect benefits such as retaining qualified employees,
1. The cost of training the new employee
2. Productivity of retained employee is higher
3. Cost of accommodation is lower than inducting new employee
4. Employers want to retain valued and qualified employees.
There are lot many industries which have a scope of employing disabled employee. its just the initiative
which is required, considering Titan, Tata group which is one of the worlds largest timepiece
manufacturers started introducing disabled employees to its facility since 80s . Titan was clear that
these people are an intrinsic part of our society and need understanding, support and opportunities, not
charity or misplaced compassion, says Mamatha Bhat. Thus, the capable candidates of 18 -24 yrs were
adopted and proper measures were taken to get them into main stream, like
1. Ergonomically designed workspaces
2. Training to enhance technical competence
3. Non-discriminating policies, effective grievance handling, counseling etc.
With time, Titan has realized that the disabled members of its family are more loyal and far more focused
on the job. Despite the physical shortcomings of these employees, productivity and quality had never
been an issue. Titans children of a lesser god are no longer classified as disabled, merely differently-
Thus, such an investment is worth not only for its return in terms of loyalty earned. But, employers
should consider their responsibility towards the society and help in making these people self dependent
and getting them into the main stream.

Employee engagement
Employee engagement is a workplace approach designed to ensure that employees are
committed to their organisations goals and values, motivated to contribute to organisational
success, and are able at the same time to enhance their own sense of well-being.
This is about how we create the conditions in which employees offer more of their capability and
potential. David Macleod
There are differences between attitude, behaviour and outcomes in terms of engagement. An
employee might feel pride and loyalty (attitude); be a great advocate of their company to clients,
or go the extra mile to finish a piece of work (behaviour). Outcomes may include lower accident
rates, higher productivity, fewer conflicts, more innovation, lower numbers leaving and reduced
sickness rates. But we believe all three attitudes, behaviours and outcomes are part of the
engagement story. There is a virtuous circle when the pre-conditions of engagement are met
when these three aspects of engagement trigger and reinforce one another.
Engaged organisations have strong and authentic values, with clear evidence of trust and
fairness based on mutual respect, where two way promises and commitments between
employers and staff are understood, and are fulfilled.
Although improved performance and productivity is at the heart of engagement, it cannot be
achieved by a mechanistic approach which tries to extract discretionary effort by manipulating
employees commitment and emotions. Employees see through such attempts very quickly;
they lead instead to cynicism and disillusionment. By contrast, engaged employees freely and
willingly give discretionary effort, not as an add on, but as an integral part of their daily activity
at work.
But is employee engagement something new, or simply old wine (long-standing management
approaches) in new (fashionable management-speak) bottles? Is it just the latest management
fad? We believe that while it does have clear overlaps with analytical antecedents such as
commitment, organisational citizenship behaviour, job involvement and job satisfaction, there
are also crucial differences.
In particular, engagement is two way: organisations must work to engage the employee, who in
turn has a choice about the level of engagement to offer the employer. Each reinforces the
An engaged employee experiences a blend of job satisfaction, organisational commitment, job
involvement and feelings of empowerment. It is a concept that is greater than the sum of its
Despite there being some debate about the precise meaning of employee engagement there
are three things we know about it: it is measurable; it can be correlated with performance; and it
varies from poor to great. Most importantly employers can do a great deal to impact on peoples
level of engagement. That is what makes it so important, as a tool for business success.
Access the Engaging For Success report (also known as the MacLeod Report) to read more about
employee engagement.


Although there is no one size fits all approach and no master model for successfulemployee
engagement there were four common themes that emerged from the extensive research captured
in the Engaging For Success report to government (also known as the MacLeod Report). Taken
together, they include many of the key elements that go to make successful employee
These four enablers of engagement have proved to be useful lenses which can help
organisations assess the effectiveness of their approaches.
Visible, empowering leadership providing a strong strategic narrative about the organisation, where
its come from and where its going.

Engaging managers who focus their people and give them scope, treat their people as individuals and
coach and stretch their people.

There is employee voice throughout the organisations, for reinforcing and challenging views, between
functions and externally, employees are seen as central to the solution.

There is organisational integrity the values on the wall are reflected in day to day behaviours. There
is no say do gap.

The concept of personnel development came into existence after 1800. Personnel management was
concerned with the provision of employment, health schemes, crches for the lady employees children.
After the second world war and up to the 1950s personnel management covered a wider range of services,
including salary administration, training and advice on industrial relation, but the main focus was at the
tactical rather than the strategic level. The increasing organisational size was responsible for certain
change in industrial relation practices.
The 1960s and 1970s saw a significant increase in the number of staff engaged in personnel work. This
could be attributable in part to an increase in the amount of employment legislation. However, the state of
the economy had a part to play as well. In conditions of full employment, up to the early 1970s , there was
evidence of much recruitment, selection, training and payment system activities in the practice of
personnel management. This was prompted to some extent by labour shortages, and was reflected in
actions to retain skilled labour and increase the skill levels of the work-force.
The thought of training was systematic and planned, heavily influenced by the establishment of the
training boards, which exacted a training level from industry and offered grants to companies that
conducted training to acceptable standards. In turn a rapid growth in the number of training specialists
within the personnel function.
Welfare personnel was concerned with the provision of schemes, considered progressive at that time,
dealing with unemployment, sick pay and subsidized housing for employees. The introduction of these
schemes could be viewed as a reaction to the harshness of capitalism at that period of British history.
Even today it can be recognised that the welfare tradition has some significance in the practice of
personnel management, for example, health schemes and crches for the children of women employees.
Personnel administration amounted to support for management and was basically concerned with
recruitment, discipline, time keeping, payment, systems, training and keeping personnel records for future
activities, such as performance appraisal (e.g management by objectives) and management development,
forecasting manpower needs also gained importance, (manpower planning) so that future growth can be
During this period the consequences of greater union influence was a substantial increase in the workload
of the personnel specialists. The involvement of the personnel function in matters connected with
industrial relations issues, and with productivity deals as well, elevated its concern to some extent to
matters of strategic significance to the organisation, at a time when most of its activities could be
considered as tactical in nature. The emphasis on industrial relations heralded a delicate role for the
personnel specialist interacting with both the management and workers. This signalled a need to develop
negotiation skills and to learn more about various systems of remuneration, and there was a tendency to
identify the personnel function with management.
The 1980s personnel management entering the entrepreneurial phase adapting itself to the market
economy and enterprise culture. It was not uncommon to find senior personnel executives contributing to
the debate within the company about future direction, the relevance of existing business objectives, and
improved ways of achieving revised objectives. A noticeable feature in the practice of industrial relation,
in some but not all cases, was the shift in emphasis from work-force collective bargaining to centralized
bargaining and in the process a reduction in the involvement of personnel managers. Weakness in the
power of trade unions signalled the need for less elaborate processes in collective bargaining and conflict
management. It also culminated in swifter negotiated wage settlements. Also, organisations were better
placed to make changes in work practices which resulted in increased productivity and a reduction in the
numbers employed. There were changes in personnel practices due to the large pool of available labour.
For example, the emphasis switched from recruitment attracting candidates to selection. It was during the
1980s that the rise in HRM began to attract the attention of personnel practitioners. There was a move
away from the traditionally adversarial industrial relations of the 1970s towards an approach which
sought to achieve excellence in the organisation through a committed work-force.
The post entrepreneurial phase for personnel management in the 1990s is likely to embrace HRM as the
standard bearer, though some would argue that HRM will subsume personnel management. The early
1990s witnessed a change in emphasis. The reaction to individualism and unjustifiable greed of the 1980s
is likely to make way for the spirit of consent and the value of teamwork. There is concern for core
workers who are essential to the operation of the organisation since high commitment is required from
these workers. They are expected to be flexible about the hours they work and to work above and beyond
their job descriptions. Wages tend to reflect the market rate rather than the rate determined by agreements
with trade unions.