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Human

Resources
Management
Strategic Human Resources Management
Prof. Shashank M Hiremath, KLS, IMER, Belgaum
Peter Drucker
"We are in one of those great historical
periods that occur every 200 to 300 years
when people don’t understand the world
anymore, when the past is not sufficient
to explain the future."

Albert Einstein
"Try not to become a man of success but
rather to become a man of value"
Fundamental Concepts of HR
/ Employees / People

™Valuable Resource
™Rare Resource
™Inimitable Resource
™Non-Substitutable Resource
Fundamental Concepts of
Management
¾ Management is a Process
¾ Coordination of resources
¾ Body of Personnel
What can you see in HRM Books?
9 Globalization creates +ve and –ve impacts

9 World Trade & GDP

9 Business Enterprises in India & Abroad

9 HRM is no more a ____ advisory function (service dept)

9 HR is linked to business strategies of the organisation

9 It’s now become a ______ Function

9 Balance Stake holders Æ External and Internal


Definition of HRM
"HRM will be regarded as a valuable business
partner and important organizational
resource when the business units are
satisfied with the results achieved through
human performance and process
improvement“

Process of Acquiring, Developing, Motivating,


Evaluating, Compensating, Awarding,
Retaining (ADMECAR) employees to ______
organisational goals
Definitions
¾McKinsey 7-S Model = Structure /
System / Strategy / Staff / Skills / Style
/ Shared Values

¾HRM is all about developing and


maintaining qualified workforce

¾Strategic and Coherent approach to the


management of an organization's most
valued assets
Management

Manage + Men + Tactfully

Art of getting work done through the


people, and with the people in
formally organized groups
Versions / Distinctions of
HRM – John Storey 1989
Hard HRM (Unitarist Approach):
Manage people in ways that will obtain added value from
them and thus achieve competitive advantage

Soft HRM:
Treating employees as valued assets, a source of
competitive advantage through their commitment,
adaptability and high quality skills, performance etc…
Development of HRM Concepts
• Philosophy of Soft & Hard HRM can be traced
back to McGregor’s writings in 1960 – X & Y
theories

• HRM gained prominence since last 2-3 decades

• It emerged as an inter-disciplinary and


integrated approach towards development of HR

• Developing competencies (SKA)


Development of HRM Concepts

• Full concept of HRM emerged in the mid 1980s

• Initial concepts (cultures and commitment) by


American writers in 1980s

• Takeover of these comments by British writers


in the late 1980s and early 1990s who were
skeptical about the reality beyond the rhetoric,
and dubious about its morality

• The assimilation of HRM into traditional


personnel management
Aims of HRM
¾ Retaining ¾ Adapt to the needs
¾ Developing SKA of stake holders
¾ Develop High ¾ Ensure Rewarding
performance work and Valuing
systems (HPWS) ¾ Managing diverse
¾ Create / Maintain - workforce
Productive and ¾ Equal opportunities
Harmonious to all
relationships b/w ¾ Ethical approach to
mgt & emp manage employees
¾ Knowledge Mgt ¾ Physical and Mental
¾ Teamwork and well-being of
Flexibility employees
Two initial concepts of HRM were
christened by Peter Boxall (1992)

¾ The Matching Model Æ C.J.Fombrun,


Michigan School, 1984

¾ The Harvard Framework Æ M.Beer,


Harvard School, 1992
The Matching Model
The “Matching Model”
• The essential idea of this model is that HR
systems should be matched to the firm’s
desired competitive position.

• There is a Human Resource Cycle which


consists of 4 generic processes performed
in all organisations: (1) Selection, (2)
Appraisal, (3) Rewards, & (4) Development.

• HR function should be linked to the line


organisation.
The Harvard Framework
Stakeholder Interests:
-Shareholders
-Management
-Employees
-Government
HRM Long-term
-Unions
Policy HRM
Choices:
Consequences:
Outcomes:
-Employees -Individual
influence -Commitment well-being

Situational/ -Congruence -Organisational


-HR flow
Environmental Effectiveness
Factors: -Reward Sys -Cost
effectiveness -Societal
-Workforce Characteristics -Work Sys well-being
-Bus Strategy & conditions
-Mgt Philosophy
-Labour Market
-Unions
-Task
-Technology
-Laws and Social Values
The Harvard Framework
• The idea of Harvard framework is that human
resource strategy should be linked to
business strategy but the need for
consideration of, and compromises with the
workforce and union aspirations is also
recognised.

• Many pressures are more demanding, more


comprehensive, more strategic w.r.t HR. Such
pressures create need for long-term
perspective in managing people.
HRM -v/s- PM
1) Managing – SKA, ability, 1) Managing people
talent, aptitude,… employed
2) Resource 2) Commodity or Tool
3) Profit Centre 3) Cost Centre
4) Mutual Benefit 4) Organisational Benefit
5) Proactive approach 5) Reactive approach
6) Central sub-system of 6) Responsibility of all
organization line managers
7) More integrated line 7) Seeks to influence line
management activity management
8) Holistic on approach 8) Narrow in approach
9) It’s a choice 9) It’s a necessity
Reservations about HRM
9 HRM does not pass muster either as a
reputable theory or as an alternative and
better form of personnel management

9 HRM – David Guest(1991) – is an “Optimistic


but ambiguous concept”. Its hype and hope!!

9 Even if HRM exists as a distinct process, many


doubt that it’s full of contradictions and
manipulations

9 The prized goals of HRM remains unproven at


its best and unfulfilled at worst
Why HRM emerged in India???
9 Increased competition

9 Emphasis on Quality

9 Flexibility in operations

9 Willingness to adapt to
changing market needs

9 Global Market conditions


Reactions to HRM from Employees
• Hostile to the interest of workers and its
managerial.

• Research conducted by David Guest and


Conway (1997) – Motivation was significantly
higher where more HR practices were in
place.

• Brainwashed by management.

• Hyperbole and Rhetoric of human resource


management.
Key HRM Activities
• OD
• IR
• Manpower planning & recruitment
• PA & PM
• HRD
• Reward Systems
• Employment relationship

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