2. Contemporary issues with HRM
• GLOBALIZATION: globalization refers to the
tendency of firms to extend their sales,
ownership and manufacturing to new markets
abroad.
• TECHNOLOGICAL ADVANCEMENT:
many of the improvements that make firms
world class involve technology.
• THE NATURE OF WORK: technology is also
changing the nature of the work. Even factory
jobs are more technologically demanding.
• WORKFORCE DEMOGRAPHICS: the
workforce is becoming more diverse as
women, minority groups members and older
workers enter the workforce.
4. SHRM
• Strategic human resource management means formulating and
executing HR systems ,HR policies and activities that produce the
employee competencies and behaviors the company needs to
achieve its strategic aims.
• Pattern of HR related decision strategies adopted over a period of
time and its linkages with the corporate strategies to be able to
achieve the distinctive competitive advantage.
• A company’s plan for how it will match its internal strength and
weakness with external opportunities and threats in order to
maintain a competitive advantage.
• A pattern of top management decision for fulfilling the goal and
objectives of the organization and achieve competitive advantage.
10. CONTROL BASED MODEL
• When organizations hire people, they have only a potential or
capacity to work. To ensure that each worker exercises his or her
full capacity, managers must organize the tasks, space, movement
and time within which workers operate.
• Workers’ own counter-management behaviour then causes
managers to control and discipline the interior of the
organization.
• This can be explained by the following three methods:
Individual Control
Bureaucratic Control
Technological Control
11. Resource Based Model
• The sum of people’s knowledge and expertise, and social
relationships, has the potential to create competitive advantage.
• Resources Tangible
Non-tangible
Threshold
Resources
Unique
Resource
Distinctive
Competency
Threshold
competency
Same as
competitor
Different from
competitor
resource
competency
12. BARNEY’S MODEL
•Barney argues that four characteristics of
resources and capabilities –
– Value
– rarity
– Inimitability
– non-substitutability
are important in sustaining competitive
advantage.
•Resources which have value are rare, which
cannot be initiated or substituted, will be helpful
in shaping the HR strategies which inturn will
give the organisation competitive advantage.
13. BAMBERGER’S MODEL
COMMITMENT COLLABORATION
PATERNALISTIC TRADITIONAL
Workforce locus
of control
outcome
process
Acquisition of employees
internal external
• Acquisition and development are concerned with the extent to which the
HR strategy develops internal human capital as opposed to the external
recruitment of human capital
• Locus of control is concerned with the degree to which HR strategy
focuses on monitoring employees’ compliance with process-based
standards.
14. II. Strategy implementation stage
Internal analysis(3 c’s) based on
•Culture
•Competencies
•Composition
CONSULTING
WORKFORCE
CORE
WORKFORCE
ANCILLIARY
WORKFORCE
COMPULSARY
WORKFORCE
high
VALUE
low high
UNIQUNE
RESOURCES
HR architecture
15. III. Strategic evaluation stage
HR scorecard
It measures the effectiveness of HR activities.
Steps involved
1. Formulating the business strategy
2. Consulting with the value chain of the organisation
3. Laying out the strategy map
4. Identifying the organisational outcomes to be achieved
5. Strategically fit HR functions
6. Deciding the metrics for measuring the impact of the
required behaviour and capabilities
7. Strategic comparison with the strategic objectives met.
16. Company practicing SHRM
• FedEx, one of the top
transportation companies of the world has been
practicing Strategic Human Resource
Management over years. It has also gained a
competitive edge over the other firms.
17. IHRM
• IHRM is the process of procuring, allocating and effectively
utilizing human resources in an international business or in a
multinational organization.
• IHRM is a set of activities aimed at managing organizational
human resources at international level to achieve organizational
objectives and achieve competitive advantage over competitors at
national and international level.
• IHRM includes HRM functions such as recruitment, selection,
training and development, performance appraisal and dismissal
done at international level and additional activities such as global
skills management, expatriate management and so on.
19. Features of IHRM
• IHRM involves employment of the right people at the
right positions, irrespective of geographic locations.
• It requires the development of a long-term HR plan to
make sure of an effective alignment of the HR strategies
with the corporate objectives.
• It requires the development of a diversified range of skills
for employees, especially for those who need to work
beyond national boundaries.
• It necessitates the determination of compensation for
host-, home- and third-country nationals on the basis of
country-specific factors.
• It requires the creation of centralized reporting
relationships around the world for faster information
sharing.
20. oBJeCTIVES of iHRM
The main objective of international human
resources management is to enable the firm, the
multinational enterprise (MNE), to be
successful globally.
This entails being
• competitive throughout the world
• efficient
• locally responsive
• flexible and adaptable within the shortest of
time periods
• capable of transferring learning across their
globally dispersed units.
21. MAJOR FUNCTIONS OF
IHRM
• Recruitment and selection
•Training and Development
• Performance evaluation
• Remuneration and benefits
• Labour relations
22. Approaches for Managing & Staffing
Subsidiaries
• Ethnocentric: strategic decisions made at
the headquarters with limited subsidiary
autonomy
• Polycentric: each subsidiary is a distinct
national entity with some decision making
autonomy.
• Geocentric: global approach, view that
each part of the organization makes unique
contribution
• Regiocentric: staff moves within the
designated region rather than globally
23. Major Issues of IHRM
1) Management of expatriates
• Selection of expatriates
• Expatriate training
• Expatriate evaluation
• Expatriate remuneration
• Expatriate failure
2) Management of repatriates
24. 3) Comparison of HRM practices in
a variety of different countries
4) Management of international
assignments to women
25. Companies implementing IHRM
INFOSYS
Due to the interlinked and fantastic international HRM structure they
were rated “Best companies to work for” by HAY group
Infosys 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 competitive
environment it is necessary to recruit, train, and retain talented
employees. Infosys aims at recruiting the best available talent,
training them according to the industry demands and retaining them
in a culture that promoted informal learning and free flow of ideas.
26. PROCTER & GAMBLE
In P&G, one of the priorities for HR at global
level is to develop HR capability. This is being
achieved by creating interdependencies within
the HR community across the company. A
sophisticated network of ten communities of
practice, each focusing on a different area of
HRM activity (such as remuneration or
employee relations) has been established.
These communities are international, and are
resulting in less difference between countries
in HRM policies due to the collaborative
nature of policy development and
implementation.
27. GREEN HRM
• Green HR is a strategy used primarily for reducing the carbon
footprint 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 initiatives
resulting in greater efficiencies, lower costs and better employee
engagement and which in turn, help organizations to reduce
employee carbon footprints by the likes of electronic filing, car-
sharing, job-sharing, teleconferencing and virtual interviews,
recycling, telecommuting, online training.
28. Green HRM processes
• Green Recruiting
• Training, Development, and Learning
• Performance Measurement
• Compensation and Rewards
29. Green work-life balance (WLB)
• It can be assumed that the full potential of Green
HRM in theory and practice has not yet been
realized. One conceivable deficit which could
hamper the greening process is that the green HR
policies focus only on employees’ working role.
• We need to acknowledge that environmentally
relevant attitudes and behavior are not learned
exclusively at the workplace, but also in private life.
• People have distinctive modes of living. They
practice specific consumption patterns in their
everyday life, Therefore employees’ private role as
consumers is considered crucial for learning and
practicing environmental attitudes and behavior.
30. Actions companies can take to go green:
• Conducting an energy audit
• Recycle
• Reuse
• Reduce commuting
• Buying green
• Implement green manufacturing processes
• Implement green policies
31. Companies implementing Green HR
• ITC Ltd
Sustainable Initiatives at ITC Green
Products- Premium Business Paper: For
the first time in India ITC has launched
an environment friendly multipurpose
paper "Paperkraft Premium Business
Paper", for office and home use using a
new technology 'Ozone Treated
Elemental Chlorine Free Technology'
replacing Elemental Chlorine which was
conventionally used in the bleaching
process during paper manufacture.
32. • ONGC: Implementing Green HR practices
Project of Landscaping, designing of garden
and greening of area in the campus of
Jollygrant Airport, Dehradun is started.
ONGC has many such initiatives towards green
HRM. Another one is Vadodara Movement
with Indian Express.
