Professional Documents
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Overview
Abstract
This chapter examines major factors and processes that lead to the development of
strategic global human resource management [SHRM] capability in organizations doing business
in emerging markets. The dynamism of this capability is hypothesized to increase as specific
structural changes are initiated, such as an innovative practice of inpatriation. It is argued that the
inpatriation provides the strategic coherence and flexibility necessary for effective organizational
strategies in emerging markets. Through the examination of this innovation in strategic global
human resource systems from a knowledge based-view theoretical perspective, the emergence of
certain unique and valuable organizational outcomes (i.e. trust, commitment, social capital, and
legitimacy) are explained. The potential problems and challenges of implementing an
inpatriation program in global negotiations are also examined, with particular focus on gaining
acceptance of inpatriate managers in the headquarters organization. In conclusion, specific
directions for future research relative to the development of SHRM capability based on
inpatriation as core competency are outlined.
Strategic Human Resource Management – an Overview
Introduction
Strategic human resource management is designed to help companies best meet the needs
of their employees while promoting company goals. Human resource management deals with
any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training,
and administration. Human resources may also provide work incentives, safety procedure
information, and sick or vacation days.
The present study “Strategic Human Resource Management “For this study Majority of the data
used is secondary data. The data are collected from various magazines and journals
• What is strategy?
• What is the role of HRM in the strategic process?
• How are human resource strategies prepared and implemented?
• What is the relationship between strategic HRM and human resource planning?
• How does HRM impact on the process of organizational change?
• What is the role of HR practitioners in mergers and acquisitions?
• How can behavioural change be achieved?
• What strategies are available for recruitment and retention?
• How are resourcing strategies prepared?
Discover how the right people management or right strategic human resource management
can help your organization …
• "Best fit" and "best practice" - meaning that there is correlation between the HRM
strategy and the overall corporate strategy. As HRM as a field seeks to manage human
resources in order to achieve properly organizational goals, an organization's HRM
strategy seeks to accomplish such management by applying a firm's personnel needs with
the goals/objectives of the organisation. As an example, a firm selling cars could have a
corporate strategy of increasing car sales by 10% over a five year period. Accordingly,
the HRM strategy would seek to facilitate how exactly to manage personnel in order to
achieve the 10% figure. Specific HRM functions, such as recruitment and selection,
reward/recognition, an HR plan, or learning and development policies, would be tailored
to achieve the corporate objectives.
• Close co-operation (at least in theory) between HR and the top/senior management, in the
development of the corporate strategy. Theoretically, a senior HR representative should
be present when an organization's corporate objectives are devised. This is so, since it is a
firm's personnel who actually construct a good, or provide a service. The personnel's
proper management is vital in the firm being successful, or even existing as a going
concern. Thus, HR can be seen as one of the critical departments within the functional
area of an organization.
E-HRM
Is the (planning, implementation and) application of information technology for both networking
and supporting at least two individual or collective actors in their shared performing of HR
activities.
E-HRM is not the same as HRIS (Human resource information system) which refers to ICT
systems used within HR departments.[2] Nor is it the same as V-HRM or Virtual HRM - which is
defined by Lepak and Snell as "...a network-based structure built on partnerships and typically
mediated by information technologies to help the organization acquire, develop, and deploy
intellectual capital."
• gradual implementation
• adaptability to any client
• collection of information as the basis for strategic decision-making
• integral support for the management of human resources and all other basic and support
processes within the company
• prompt insight into reporting and analysis
• a more dynamic workflow in the business process, productivity and employee satisfaction
• a decisive step towards a paperless office
• lower business costs
e-HRM Model:
Companies already implemented e-HR Strategy:
• Dow Chemicals
• ABN-AMRO
• Ford Motor Company
• IBM
EHRM Features:
• Security of data, protected levels of access to individual modules, records, documents and
their component parts
• user-friendly interface
• Connectivity with the client's existing information system (payroll accounting, ERP,
attendance registration, document systems…)
Multi-language support
FORMS OF RECRUITMENT
Using internet prospective applicants could search for positions in which they were interested.
Contact with employers directly is viable. Feasibility of email overruled the use of telephone, fax
or mail and the companies started accepting application through email. Today Organizations
have their own sites or job postings are given in the placement sites. Again the candidates can
visit the sites, post resume, contact the company directly without any delay. All these are just one
‘click’ away. E-recruitment is a tool for many employers to search for job candidates and for
applicants to look for job. Recent trend of recruitment is e-recruitment or the internet recruitment
or on-line recruitment, where the process of recruitment is automated. The automation began in
1980 but was systematized in 1990 with the release of Restrac’s initial product. E-recruitment
simply means the recruitment process through internet. Various methods can be used for it.
E-RECRUITING METHODS
● Job boards: These are the places where the employers post jobs and search for candidates. Candidates
become aware of the vacancies. One of the disadvantages is, it is generic in nature.
● Employer web sites: These sites can be of the company owned sites, or a site developed by various
employers. For an example, Directemployers.com is the first cooperative, employer-owned e-recruiting
consortium formed by Direct Employers Association. It is a non profit organization formed by the
executives from leading U.S corporations. Press release by Recruiters Network (February 20, 2003)
showed the site has 98 members approximately 45 percent of which are Fortune 500 companies.
● Professional websites: These are for specific professions, skills and not general in nature. For an
example, for HR jobs Human Resource Management sites to be visited like www.shrm.org. The
professional associations will have their own site or society.
WHY E-RECRUITMENT
● Time saving device: Time to deliver; to communicate is minimized by this. Response is direct
and immediate without any delay. Beforehand the postal services, fax was one way
communication and was time consuming. Phones provided two way communications but resume
management, communicating worldwide were not possible.
● Widens the search: In the era of globalization the reach cannot be restricted at one place. It
provides global reach that also within a fraction of second. Truly the process supports the
definition of recruitment by creating a vast pool of potential candidates.
● Standardization: The information of the candidates are collected in a standard format. Beside
collecting the data it also consolidates information received from various sources.
● Reservoir: It acts as the reservoir of information. From the job profile to candidate profile is
available along with past applicant data.
● Lessen paper work: As the data collection, filing, administrative work are done electronically
thus paper work or documentation has been lessened.
DRAWBACKS OF E-RECRUITMENT
● Require being computer savvy: The process is restricted within computer savvy candidates.
As the search is based on various websites, their screening, keywords application demands for a
computer savvy person and company.
● Legal consequences: Alike other recruitment sources this source also should be aware of the
words used in the advertisements otherwise it may lead to the charge of discrimination. For
example, Disney World was sued for screening the resumes preferring the key words used by
whites.
● Vast pool of applicants: This benefits the Organizations as well as it is disadvantage to them
also. Because the huge database cannot be scanned in depth. Either first few candidates are
called for interview or the resumes are screened based on some key words. On the other hand
applicants also face global competition.
● Non-serious applicants: Lot of applicants forward their resumes just to know their market
value. As personally the candidates are not checked thus whether they are serious is not known.
At the time of interview the recruiter might realize that the candidate is not serious in leaving the
current job. But by that time some serious candidates might have been rejected.
● Disclosure of information: Candidates profile and company details are available to public.
The applicants do not want their employer to know that they are looking for a change. Phone
number, address information has lead to many security problems. Again the companies do not
want their competitors always to know the current scenario.
● Speedy communication: Company and the prospective employee can communicate with each
other via the blogs. Thus blogs, podcasts, vodcasts are being considered a tool of e-recruitmant.
No more the process can be blamed for being one way communication like mails, faxes only
being speedy as done electronically. Podcasts are the services of digital media files. Vodcasts are
the video podcasts.
● Candidate’s preference: History states that employers had the privilege to be selective in
hiring process, especially in screening resumes but were not always fair. Because of the time
constraint it was not possible to go through all the applications. Today the candidates can choose
their employers as not only the financial state is known to them but also the culture is known.
Applying for the Organization will no more be influenced only by the image.
● Search engine advertisement: Print ad is phasing out due the popularity of search engine ads.
Pay-per-click is not only convenient but also more attractive.
● RSS feed: Job boards are embracing RSS feed. Hotjobs, Google deserves special mention.
Google offers one to upload the jobs on Google Base even when one doesn’t have their own site.
RSS can be read using software “RSS reader”. It is a family of web feed formats use to publish
frequently updated works. Such as blog entries, news headlines in a standard format.
E-performance
Often managers do not have an easy way to measure and monitor performance indicators – or an
effective method for communicating goals and objectives. As a result, too much focus can be
placed on financial indicators and lagging performance measures while not enough emphasis is
given to critical operation metrics and key performance indicators (KPIs).
Companies risk wasting resources and efforts when they lack a commonly shared and understood
strategy. In the absence of a shared source of metrics, managers may measure performance in
areas not related to the corporate strategy or not aligned in the correct way.
The employees know they are responsible for driving corporate performance. However, not
every employee knows if or when they are responsible for resolving a performance-related
problem. Many problems persist or go unaddressed simply because no one person, team or
department has been specifically assigned to resolving them.
Furthermore, Corporate Performance Management solutions must be comprehensive and span all
performance levels to manage the interplay among all types of indicators and provide a unified
vision of the organization. CPM also offers the following benefits:
A comprehensive Corporate Performance Management solution supports all stages of the CPM
lifecycle, allowing you to plan your strategy, set goals, manage risks and initiatives, measure
and monitor indicators, take corrective and preventive actions and report and analyze your
performance with the enterprise organization.
E-Compensation
Your employees are less likely to be recruited away from your organization if they
understand the true impact of the package you're offering them. Oracle's PeopleSoft
Enterprise ECompensation empowers your employees with a collaborative employee
compensation application that shows their complete compensation package in an intuitive
format—and provides the tools they need to plan their financial futures.
E-learning Reinforces Staff Loyalty at Hilton
August 5 2006 - Global hotel group, Hilton, part of Hilton Hotels Corporation, has found a link
between employee development and reduced staff turnover for the second year running.
In a worldwide survey of 1500 'team members' conducted anonymously in May 2006, 40 per
cent said that the opportunity for development through Hilton University, the group's online
learning platform, was the main reason why they intended to continue their careers with Hilton.
A further 49 per cent said it was not the main factor but being given the chance to develop
professionally was very important to them.
Hilton employees around the world can access a wide range of learning activities through Hilton
University, including:
The survey also highlighted how learning is being applied in the workplace with over 70 per cent
of respondents saying that what they learned yesterday during a learning activity can be used in
their work today.
"The fact that such a significant number of people are so quickly putting into practice what
they've learned is a good example of the value of just-in-time learning. Being able to use new
skills and knowledge immediately means that they are more likely to be retained and used
again."
Maarten Staps, International Learning and Development Manager at Hilton who had
responsibility for the study, said:
"After conducting this study for the second year, it is encouraging to see that an even greater
proportion of team members are remaining loyal to Hilton due to the development opportunities
offered through Hilton University. This will have an inevitable impact on the business, both in
terms of increased productivity as well as in reduced recruitment costs."
Conclusion:
Ideally HR & top management work together to formulate the company's overall business
strategy; that strategy then provides the framework within which HR activities such as recruiting
& appraising must be crafted. If it is done successfully, it should result out in the employee
competencies & behavior that in turn should help the business implement its strategies & realize
its goals.
According to an expert "the human resources management system must be tailored to the
demands of business strategy".
In order to be successful the employees should be developed in such a manner that they can be
the competitive advantage, & for this the human resource management must be an equal partner
in both the formulation & the implementation of the corporate & competitive strategies.
References:
• Greer Charles, Strategic Human Resource Management 3 rd. edition, Prentice Hall
Inc.Meffinson D, Banfield Paul, Mathews J J, Human Resource Management, Kogan
Page
• Dessler Gary, Human Resource Management 8 Th. Edition, Pearson education Asia
• Anfuso, Dawn. “Colgate’s Global HR Unites Under One Strategy.” Personnel Journal,
October
• 1995, pp. 44-48.
• Anfuso, Dawn. “Kodak Employees Bring a Department into the Black.” Personnel
Journal,September 1994, pp. 104-112.
• Bechet, Thomas P., and James W. Walker. “Aligning Staffing with Business Strategy.”
Human Resources Planning, 1993, pp. 1-16.
• Condrey, Stephen E. Handbook of Human Resource Management in Government. San
Francisco: Jossey-Bass Publishers, 1998.
• Connolly, Thomas R., et al. “Transforming Human Resources.” Management Review,
June1997,pp.10-16.