shrm 5 kerala univ Mba

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Unit V: Change management and strategic HRM; Strategies to overcome HR challenges faced by
Indian companies; Strategic competencies for HR professionals; Global competitiveness and Strategic
HR
Change management and strategic HRM
Change management is the process, tools and techniques to manage the people side of change to
achieve the required business outcome. Change management incorporates the organizational tools that
can be utilized to help individuals make successful personal transitions resulting in the adoption and
realization of change.
 4 steps for effective change mgt
1. Overcoming resistance
Although employee resistance is a natural reaction to widespread organizational changes, you can
overcome that resistance by focusing on several key strategies:
a. Clearly and consistently communicate about the change well in advance of its implementation.
b. Help employees better understand the need for the change and the rationale behind the decisions, as
well as the ways the change may affect them.
c. Ensure that your change management team includes change champions who can help spread positive
messages about the change, as well as take the temperature of employee reactions to the change.
d. Provide strong support for the changing environment, such as ensuring that managers are provided
with the training and information they need to answer employee questions.
2. Engaging employees
Employees who are engaged in the change are more likely to put in the effort necessary to help
implement the change and ensure a positive outcome for the organization. Help create high levels of
employee engagement during your change process by:
a. Developing a team approach that includes employees‟ perspectives from a variety of departments and
levels.
b. Assigning and clarifying roles and responsibilities.
c. Increasing your focus on the workers who are affected most by the change.
d. Including resistance leaders in the change process to help overcome pushback from other employees.
e. Understanding and taking into account the different motivational factors for each employee.
3. Implementing change in phases
For companies planning a major change initiative, taking a phased approach can help ensure that the
transition to a new system or process is as smooth and seamless as possible
a. Prepare for change – By taking steps such as defining your change management strategy, developing
your change management team, and outlining key roles.
b. Manage the change – By creating and executing change management plans that include
communications, operations and resistance management.
c. Reinforce the change – By collecting and analyzing feedback and then implementing corrective
actions where needed.
4. Communicating change

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Failing to tell employees in advance about organizational changes can increase employee misconduct
by 42 percent. An integral part of every stage of the change management process, communication must
be a two-way street in order to ensure the success of the organizational change.
The SHRM Competency Model is a detailed, researched-based description of the nine
categories of competencies required of today‟s HR professional. It includes sub-competencies, related
behaviors and a whole lot more
Change and the SHRM Competency Model
The word “change” or “changing” appears 19 times in the full SHRM Competency model. Here‟s a
summary of those mentions.
1. Within the competency of “Human Resource Expertise,” one of the sub-competencies is “change
management.” In that same competency, one of the proficiency standards for mid-level HR
professionals is “Implements change based on proven change-management techniques” as is
“Interprets both policies and changes to policy” and “Recommends policy changes to support
business needs.” Clearly, change management appears to be part of what HR professionals need
to know and practice, at least at the mid-level of one‟s HR career.
2. Within the competency of “Consultation,” one of the example behaviors of those who exhibit the
highest level of proficiency is “Generates specific organizational interventions (e.g., culture
change, change management, restructuring, training, etc.) to support organizational objectives.”
3. “Change management” also appears as a sub-competency within the “Leadership & Navigation”
competency, with an associated behavior of “Serves as a transformational leader for the
organization by leading change.” This also appears as a proficiency standard for mid-level HR
professionals within this competency, listed as “Supports critical large-scale organizational

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changes.” At the senior level within this competency, a proficient HR professional according to
SHRM “Serves as a change agent for the organization,” and at the executive level, he or she
“Identifies the need for and facilitates strategic organizational change,” “Oversees critical large-
scale organizational changes with the support of business leaders,” “Ensures appropriate
accountability for the implementation of plans and change initiatives,” “Sets tone for maintaining
or changing organizational culture” and “Gains buy-in for organizational change across senior
leadership with agility.”
4. Finally, within the competency of “Critical Evaluation,” an associated behavior is “Assesses the
impact of changes to law on organizational human resource management functions,” and a
proficiency standard at the senior level is “Creates and/or dissects organizational issues, changes,
or opportunities.”
Taken together, it appears that dealing with or managing or leading change is an important part of what
HR leaders should be doing, at least according to the SHRM Competency Model.
Strategies to overcome HR challenges faced by Indian companies
Five Major Hr Challenges:
1. Managing Knowledge Workers
Essentially, here we are looking at different kind of people who does not obey the principles of
management for the traditional group. This boils down to higher educational qualifications, taking up
responsibilities at a lesser age and experience, high bargaining power due to the knowledge and skills
in hand, high demand for the knowledge workers, and techno suaveness. The clear shift is seen in terms
of organization career commitment to individualized career management. Managing this set of people
is essential for the growth of any industry but especially the IT, BPOs and other knowledge based
sectors.
2. Managing Technological Challenges
In every arena organizations are getting more and more technologically oriented. Though it is not in the
main run after the initial debates, preparing the work force to accept technological changes is a major
challenge. We have seen sectors like banking undergoing revolutionary changes enabled by technology.
It is a huge challenge to bring in IT and other technology acceptance all levels in organizations.
3. Competence of HR Managers
As it is more and more accepted that lot of success of organizations depend on the human capital, this
boils to recruiting the best, managing the best and retaining the best. Clearly HR managers have a role
in this process. Often it is discussed about lack of competence of HR managers in understanding the
business imperative. There is now a need to develop competent HR professionals who are sound in HR
management practices with strong business knowledge.

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4. Developing Leadership
It is quite interesting to note that there is less importance given to developing leadership at the
organizational level. Though leadership is discussed on basis of traits and certain qualities, at an
organisational level it is more based on knowledge. The challenge is to develop individuals who have
performance potential on basis of past record and knowledge based expertise in to business leaders by
imparting them with the necessary "soft skills".
5. Managing Change
Business environment in India is volatile. There is boom in terms of opportunities brought forward by
globalization. However this is also leading to many interventions in terms of restructuring, turnaround,
mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily
dependent on managing the people issues in the process. HR has a pivotal role to play here.
 Overcoming Human Resource Development Challenges
A wide range of challenges are being faced by the organizations with regard to the management and
implementation of training and development of human resource in the environment of emergence of
new technologies and globalization which starts with the focus on human resource as capital in HRD
practices, their development through education and training, learning, communication skills and
language skills. For the Human resource development, learning and motivation of the human resource
are also considered to be the most important feature of an effective human resource development
process. The education system should be improved; higher education must focus more on the practical
aspect rather than the theoretical aspect. Students should be given industry projects in every semester
and they should be evaluated from time to time. This will give the opportunity to the students to get
aware of the working of the industry, the code of conduct that needs to be followed in the industry and
the rules and regulation that abides every employee and also gives them the opportunity to take up the
real problems that the industry face and to provide solutions of the problems. Companies must focus
more on „On the job‟ training, this will help the employee to take up real problems and while solving
these real problems the employee would get more familiar with problems that he would be facing day
to day and also the employee would build up confidence while solving these problems and he would be
ready to face such kind of problems in future. Although it is also necessary that the employee gets
continuous „Off the job‟ training, this would give them an opportunity to meet the experts of their field
and to discuss their day to day problems and also they can ask for solutions of the problems they are
unable to solve.
Employees must be put to continuous learning; this will help the employees
to upgrade their skills from time to time. Companies should provide training to the employees on the
arrival of the new software, tools and technologies as the companies need to adopt new technologies to
be in line with their competitors and the employees cannot work on newer technologies having a prior
training because every new technology has newer dimensions added to the previous one. Organizations
must provide employee with special education upgrade leave so that the employee can upgrade their
educational qualification from time to time as it helps them to get promoted to a higher position in an

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organization and those employees, whose work are so rigorous and organizations cannot afford to grant
leaves to them, they should provided E learning to upgrade their educational qualifications as most of
the universities worldwide are focusing on web based learning to help the employees learn and earn
good jobs through internet. It is less expensive at the same time and organizations can easily afford it as
well. Organizations should make proper budgets for the human resource development so that the
human resource can be developed to its fullest. Small scale organizations should make a tie up with
other organization to make their employees learn and develop new skills; this would be interesting and
also less expensive at the same time.
 Put strategic organizational change into practice to enhance quality, productivity and employee
satisfaction
 Devise an effective training program
 Create and establish a reward system that keeps employees motivated
 Design benefit packages and evaluate their value
 Establish principles for developing, harnessing and retaining talent
 Use big data to enable knowledgeable business decisions
 Leverage technology to assist in the creation of talent pools where leaders may emerge from in the
future
Strategic competencies for HR professionals ( Essential HR manager skills and
competencies)
Human resource management responsibilities require an overlapping set of skills and competencies.
Let‟s count down six core competencies for HR professionals.
1. Human Resources Knowledge
Today‟s job seekers have access to more information than ever before. Therefore, the best HR
professionals must be prepared to meet these informed candidates with industry expertise of their own.
Understanding how and why individuals enter and move within an organization is at the core of
everything else you will do in human resources. HR managers who truly add value are always attuned
to “the big picture” of how HR practices relate to a successful business.
Your knowledge in this area needs to be greater than anyone else‟s to support the objectives of
employees and employers alike. After all, HR management is not just about talent acquisition, but also
about retention.
2. A Commitment to Ongoing HR Learning
Today‟s business landscape is complex and in a state of constant flux. The field of HR is dynamic and
our ability to process and understand it needs self-motivation.
Growing in your job means being receptive to new ideas, wherever they may come from. Have you
demonstrated a commitment to ongoing learning by taking advantage of conferences, other colleagues
in HR, or graduate studies?

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HR professionals who never stop learning are well-positioned to translate well thought out industry
trends and data into actionable insights.
3. Communication Skills in Human Resources
The primary function of the typical HR professional‟s job involves facilitating discussion between
employees and employers. If a human resources manager can‟t communicate clearly they will not be
successful. Both oral and written skills are required to effectively relay information.
One aspect of communication that gives people an edge is a strong ability for conflict resolution. Even
in the most agreeable workplaces, problems arise that need a diplomatic ear, an eye for assessment, and
a hand for getting the problem settled. This particular skill is invaluable when negotiating solutions and
keeping things on track.
4. Critical Thinking Skills
Critical thinking is in the “sweet spot” of less common/more desired employed traits, according to an
analysis of the skills gap by Bloomberg. HR professionals, in particular, frequently need to balance
complex situations and take their time to think with a combination set-in-stone processes and outside-
the-box thinking.
Employees come from a breadth and depth of backgrounds and experiences. HR professionals need to
strategically cultivate an environment in which all can work together toward the improvement of the
business.
5. An Ethical Approach for Human Resources
The importance of ethics as an HR core competency cannot be overstated. Every day, HR professionals
face ethical challenges related to everything from managing private employee information to protecting
the reputation of their organizations. Adopting an unwavering and unilateral commitment to ethics not
only helps attract top talent while safeguarding your organization, but also fosters a culture of trust and
loyalty.
Part of being ethical is truly caring about people. Empathy for tough situations and “real life” goes a
long way to setting you apart from those who just do it “by the book.”
Some ethical principles are enshrined in law. Making sure your company‟s policies and practices are in
legal compliance is a mainstay in the world of human resources. Avoiding discrimination in regard to
ethnic background, disability, religious belief, and many other factors is important because of the hurt it
will avoid and to foster a better, more diverse work environment.
Laws are always changing, sometimes incrementally, sometimes as part of a great cultural shift.
Therefore, staying up to date on national news, trends, and laws is particularly important; ignorance of
the law is not a winning defense. Legal compliance, of course, also protects the company and its
officers.

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6. Human Resources Organizational Skills
HR management is a juggling act. The more organized you are, the better you‟ll be able to stay ahead
of what you need to do and have time for things you would like to do. If you think organization is
something you either have or you don‟t, think again. Organization can be honed by understanding
where you work, and doing a few things the same every day to build a routine.
Global competitiveness and Strategic HR
Human resources management faces quite a few obstacles when the organization enters into a global
market. However, by implementing a proper HRM strategy, the business can fight off competitors. One
way an organization can handle its global competition is by focusing on four pivotal targets. These
targets are the company itself, customers, distributors/servicers, and suppliers (Gaining Competitive
Advantage).
First, the only way a business can truly be successful among others is by investing in itself. Human
resource managers can help improve the quality of the organization by devoting time towards properly
training and molding their employees. By getting everyone to work together as a team, the company
can focus more on their main goals and objectives.
Second, customers play an imperative role in battling competition. Loyalty is the key to ensuring
permanent customers that will always comeback. Whether the organization is producing a specific good
or service, consumers will always return to a business that treats them well every time.
Third, distributors of an organization‟s goods and services are pivotal to the firm‟s success. If a
distributor is unable to successfully put out an organization‟s product, then that leaves a bad reflection
on the company. It‟s important that HRM finds ways to build strong connections with the distributors
outside of the company in order to make the inside of the company strong as well.
Lastly, suppliers are very important to any business. There are a lot of consumers that are heavily
concerned with what goes into a particular product. Having the proper suppliers that provide the proper
materials needed to produce a particular good or service should always be a main focus for the
organization. In all, if human resource managers find the right strategy to successfully implement all
four of these targets, then they can definitely beat their competition and successfully compete in the
global market.

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Global competitiveness is concerned with the measurement of the performance and ability of firms,
industries, and countries all over the globe. Research indicates that global competitiveness involves a
structured and systematic approach to the measurement of economic drivers and challenges around
different economies. Countries must continually put in place strategies that would ensure they compete
favorably. Strategic human resource management is concerned with proper recognition of the current
and future human resource requirements and putting in place measures to ensure individuals achieve
the goals of the organization. All organizations around the globe must continually put in place measures
that would ensure they that skills of their work force will help to the acquire goals within the
organization. Motivation and increased commitment are also vital for ensuring that key organizational
goals are met at the required time.