HRM Unit-9

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HRD Strategies for Long Term

Planning & GrowthUnit-9

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PLANNING

ORGANIZING

STAFFING LEADING

CONTROLLING

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Basic Function Perform by each Manager

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Planning manpower needs and recruiting people Selecting the right candidates Orienting and training new employees Managing wages and salaries (compensating

employee) Providing incentives and benefits Conducting job analyses (determining the nature of

each employee's job) Appraising performance Communicating (interviewing, counseling,

disciplining) Training and developing managers Building employee commitment

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Techniques of Human Resource Management

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According to Perl some of the personnel mistakeswhich as a manager you would like to avoid.Manager don’t want to:

Hire the wrong person for the job Experience high turnover Waste time with useless interviews Have your company taken to court because of

discriminatory actions

Have your company cited under federal occupationalsafety laws for unsafe practices

Have some employees think their salaries are unfairand inequitable relative to others in the organization

Commit any unfair labor practices4

Why Is Human Resource ManagementImportant to Managers?

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Strategic Concept

•A Strategy is a way of doing something.Thinking ahead of your competitors.

•Getting the right strategy of the business…..Implementing it effectively …… getting

everybody in the organization from the topto bottom ,doing things that makes thebusiness successful

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Strategic HRM is the pattern of planned human resourcedevelopments and activities intended to enable anorganization to achieve its goals.

Accepting HR functions as a strategic partner in bothformulation of company’s strategy as well as implementingthose activities through HR activities.

In today’s time it's HR's job to build competitive advantage.Today role of HR is shifting from protector and screener to

strategic partner and change agent.

Formulating a strategic plan requires identifying, analyzing,and balancing the company's external opportunities andthreats, and its internal strengths and weaknesses. HR playsa critical role in this.

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Strategic Role of HR

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Today recognition of HR has been growing . Certain

conditions, where human resources contribute to acompetitive advantage for organizations are-

INNOVATION UNUSUAL QUALITY SPECIAL SKILLS PRODUCTIVITY OUTATANDING SERVICES

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Organizational Strategies BasedOn Human Resources

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Organizational Strategies Based OnHuman Resource

INNOVATION

UNUSUAL

QUALITY

SPECIAL

SKILLS

HUMAN

RESOURSE

PRODUCTIVITY

OUTATANDING

SERVICES

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The more productive an organization, the better itscompetitive advantage, because the costs of producinggoods and services is lower. Better productivity does notmean more is produced; it is fewer people (or less moneyor time is used to produce the same amount.

Productivity is a measure of the quantity and quality of thework done. Productivity is the ratio between inputs andoutputs. ( lesser the input …higher the output)

Productivity leads to higher standards of performance.

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Productivity as an HR –based strategy

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Productivity at the organizational level affects profitabilityand competitiveness of an organization.

None of the resources used for productivity in organizationare so closely scrutinized as a human resources. Most ofthe activities undertaken in an HR system are designed toaffect individual or organizational productivity Pay, appraisalsystems, training, selection, job design andcomplementation re activities directly concerned withproductivity.

A useful way to measure organizational HR productivity isby considering Unit Labor cost.

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Organizations & Productivity

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Some basic ways to improve organizational productivity

are downsizing, re-engineering jobs, increasing computerusage.

Few other ideas for productivity improvement include: Outsourcing : Contract with someone else to perform

activities previously done by employees of organization. Making workers more efficient with capital equipment:

Typically, the more spent on equipment per worker, thegreater the output per worker.

Helping workers work better : Replace outmoded (old –fashioned) processes, methods, and rules. Find better waysof training people to work more efficiently.

Redesigning the Jobs: Some jobs can be redesigned to makethings faster, easier, and possibly even more rewarding toemployees .Such changes aims to improve employee

productivity. 11

Increasing Productivity

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Many think that organizations decide on strategies and thenHR planning is done to supply the right number and kinds ofemployees. The relationship is much deeper.

The relationship among the various organizationalfactors/variables determine the HR plans an organizations .

Business strategies should be always linked with HR plans.HR professionals should continuously do environmental

scanning to know and pinpoint which skills are available andwhich are not. HR professionals should be able to estimatelead times for adjusting to labor shortages or surpluses,because HR will be involved in implementing any strategiesthat affect people

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Linking HR Planning & Strategyfor Competitive Advantage

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HRD deals with Development and Up- gradation of HumanCapital

HRD improves capabilities of people. Employees becomeinnovative and enterprising-always eager to take risk andget ahead. Continuous feedback and guidance fromsuperior’s help employees grow continually and showsuperior performance.

HRD improves team work.

HRD leads to greater organizational effectiveness.

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Benefits of HRD

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Factors that determines HR Plans

Strategy of theOrganization

Need for Human

Resources: Quality and

Skill Levels

Available Financial

Resources

Competitive /

Financial

Environment

Current

Organization

Situation

Culture of the

Organization

HR Plans and Policies for:

RecruitingSelection

HR development

Compensation

Performance

Management

Staffing Adjustment

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According to Strategist Michael Porter humanresource management is a key for obtainingcompetitive advantage .Distinctive competenciescan be obtained through highly developed

employee skills, distinctive organizations culture,management process and systems . competitiveadvantage can be obtained with a high qualitywork force.

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Importance of HR Strategy

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Strategic Planning

Development of organizational philosophy &mission statement

Environment scanning

SWOT analysis Formulation of strategic objectives Generation of alternatives strategies for

achieving objectives Evaluation of selection of strategy

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Functions of Strategic Planning

• Periodic forward scanning• Analysis based on longer time frame• Communication about goals and

resource allocations• Framework for a short term plan

evaluation and integration• Decisional criteria framework forshort-term decision making

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Strategic management is considered to be a

continuous activity that requires a constantadjustment of three major interdependent poles- thevalues of senior management, the environment, andthe resources available.

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Strategic management

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Strategic Management

The Three Traditional poles of a Strategic Plan

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Strategic Management involves four steps - Analyze the opportunities and threats or

constraint that exists in the externalenvironment.

Formulate strategies that will match theorganization’s strengths and weaknesses withthe environment threats and opportunities.

Implement the strategies. Evaluate and control activities to ensure that

the organization’s objectives are achieved

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This typology categorizes human resource activities ina 2 x 2 matrix according to two dimensions: (1) theextent to which such activities are relational or transactional and (2) whether they have high or lowstrategic value. At one end of the transactional and

relationship continuum are transactional activitiesthat are mostly administrative and impersonal. Theperformance of these activities does not require ahigh level of interpersonal skill, and many of theseactivities can be computerized. At the other end ofthe continuum are activities that require high levels of

interpersonal skill, political awareness, and sensitivity.For the strategic-value dimension, at one end of thecontinuum are activities that have direct businessimpact on the firm's ability to implement itscompetitive strategies.

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Human Resource ActivityTypology- By Alan Speaker

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At the other end of the continuum are activities that

have a more indirect or less strategic impact. Themodel is presented in the next slide. Although therehas been no survey of practitioners indicatingagreement as to the placement of activities in specificquadrants, the strategic value of the activities may

vary according to the specific circumstances faced byeach firm.

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Examples of activities in the low strategic

value/transactional quadrant include such tasks as payroll,benefits administration, employee records, and relocationadministration. These activities do not have immediateimpact on the firm's ability to implement variousstrategies, such as those emphasizing new productinnovation, exceptional product quality, or low costs. Such

activities are important to employees who become veryconcerned when their paychecks are not in the rightamount or they are having difficulties with benefits such asmedical claims. These activities must be performedaccurately, in a timely manner, and with cost efficiency.

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HUMAN RESOURCE ACTIVITY TYPOLOGY

StrategicValue ofActivity

Staffing Planning(pipeline Development)Benefits PlanningRetirement PlanningCompliance

Performance EnhancementConsultingEmployee RelationshipLabor NegotiationsExecutive CompensationEmployee developmentManagement DevelopmentRecruitment interviews

<IMPORTANT TO EXECUTIVES>

PayrollBenefits AdministrationRetirement AdministrationEmployees Records

Relocation AdministrationRecruitment Information

Processing

<IMPORTANT TO EMPLOYEES>

Recruitment informationProcessingEmployee Assistance Program

Low

Type of HRActivity

Transactional

High

Relationship

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Requirement of strategic Human

Resource Managers Information management skills

–statistics , analysis and research Planning skills

– the knowledge of planning and planningmethodologies plus statistics techniques

Management skills- Skills and in various business functional andenvironment analysis

Integration skills- Competency at managing organization interfaces

Change management skills- the skill of anticipating the future , facilitating

thechanges and developing the organizational

activities

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Attraction

Development

Motivation

Retention

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Human Resource Management

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The End

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HRM Unit-9