HRM in Context

Session - 4
TinyOwl, the blue-eyed Start-up child
A Mumbai-based food technology start-up
had to shut the operations in 2016
The slide started in September 2015 when it
fired 300 employees after over-hiring - a
common mistake for start-ups.
 TinyOwl Tipping Point
When one of the employees, in her 30s, took a deep breath, composed
herself and marched into a cabin, threw open the door and announced
herself in a loud voice.

"How much money did you save when you fired me?" she asked
Harshvardhan Mandad, the founder and chief executive officer of TinyOwl.

Mandad stared back, followed by moments of silence. "You know what? I

don't care and neither do you," she said and marched out.
Source: Business Standard, March 14, 2016

Hostage Crisis Nov, 2015

Gaurav Choudhary , Co-Founder held hostage at the companys office in Pune
 HR Problems
Underdeveloped HR Policy
Hiring Spree CTO hired at a CTC of 1.5 Crore
+ Joining Bonus of 50 Lac
~500 people hired in one Quarter
Competition driven poached hires from
Zomato
HR System ?
 Human Resource System
1. HR philosophies (values and guiding principles
adopted in managing people)
2. HR strategies (defining the direction)
3. HR policies (continuous guidelines)
4. HR processes ( formal procedures and methods
put HR plans into effect)
5. HR practices ( informal approaches used)
6. HR programmes (which enable strategies, policies,
practices to be implemented)
 Aims of HRM

1. Organizational effectiveness (HRM makes a significant impact

on firm performance)
2. Human capital management (HC is the prime asset the aim is
to develop the inherent capacities of people)
3. Knowledge management (support the development of firm-
specific knowledge)
4. Reward management (enhance motivation, job engagement)
5. Employee relations (harmonious relationship between partners)
6. Meeting diverse needs (stakeholders, workforce)
 Models of HRM
The Michigan School Model:
Congruency with organizational strategy
(matching model)

The Harvard School Model

(Harvard framework)
Integrated parts towards a strategic vision and
with a central philosophy
The Michigan School Model
The Human Resource Cycle
Elements of human resource cycle
1.Selection: Matching available human
resources to jobs
2.Performance Management
3.Rewards: focus on organizational performance
(most under-utilized and mishandled tool)
short-term and long-term
4.Development developing high quality
employees
The Harvard Framework
 Stakeholder Interest
Shareholders
Management
Employee Groups
Government
Community
Unions
 Situational Factors
Work Force Characteristics What is the nature of
people at Work
Business Strategy and Conditions
Managers often ignore the HR needs
HR function often develops policies ignoring needs of
other line functions
Management Philosophy
Labour Markets
Unions
Task Technology
Law and Societal Values
 HRM Policy Choices
Employee Influence
Human Resource Flow
Reward Systems
Work Systems
 HR Outcomes
Commitment
Competence
Congruence
Cost Effectiveness
Measuring Outcomes:
Commitment Attitude Surveys
Competence Improved Performance
Cost Effectiveness Total Employment Cost
Congruence Measures of strikes, other forms of
conflict
The Harvard Framework
 NBF Hybridization Case Study: New
Genetics
Identify the Policy Choices
HR Outcomes