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SHRM

EVOLUTION OF SHRM

PERSONAL HRM ( 70s)


MANAGEMENT SHRM (80S)
Part of
Convergence
organic
Part of between HRM
organization
mechanistic & Business
Cross-
organization Strategy
hierarchical
Bureaucratic Pro-active
and cross
High HRM
functional
centralization Concerned
teams
High with
Decentralized
formalization organizational
Low
Low flexibility effectiveness &
formalization
performance
Flexible
DIFFERENCE BETWEEN SHRM & TRADITIONAL HRM
DIMENSIONS TRADITIONAL HRM SHRM

Responsibility for Staff personnel in the HR Line managers; all managers


HR programmes department responsible for people are HR
managers

Focus of activities Employee relations – Partnerships with internal


ensuring employee (employees) & external (
motivation and productivity; customers, stakeholders,
compliance with laws public interest group) groups.
Role of HR Reactive & transactional Pro-active and
transformational, change
leader

Initiative for Slow, piecemeal and Fast, flexible and systematic,


change fragmented, not integrated change initiatives implemented
with larger issues in concert with other HR
systems
DIFFERENCE BETWEEN SHRM & TRADITIONAL HRM
DIMENSIONS TRADITIONAL HRM SHRM

Time horizon Short term Consider various time frames


as necessary ( short term,
medium term and long term)

Control Bureaucratic control through Organic control through


rules, procedures and policies flexibility, as few restrictions on
employee behavior as possible

Job design Focus on scientific management Broad job design, flexibility,


principles – division of labor, teams and groups and cross
independence, and training
specialization
Important Capital, products, technology People and their knowledge,
investments and finance skills and abilities

Accountability Cost centre Investment centre


Link Between HR Strategy & Business
Strategy
• Central to the concept of SHRM is the idea of
strategic fit.
• In order to ensure that HR strategies facilitate the
achievement of business strategies, a strategic
integration between the two is necessary.
• A key factor that influences the linkage between
business strategy and HR strategy is the
organization’s quest to attain competitive
advantage.
• An organization may pursue several different
strategies to achieve its goal.
 Three types of business strategies that may be
adopted by an organization are:
 Cost leadership
 Differentiation
 Focus
Business Characteristics Examples
strategy
Cost Leadership The firm increases its efficiency , cuts costs so Retailers such
that the products or services may be priced lower as Wall Mart,
than the industry average Lulu Center etc
Assumes that a small change in price will
significantly affect customer demand
Assumes that customers show greater price
sensitivity than brand loyalty

Differentiation •The firm distinguishes its products/services from Samsung,


its competitors or at least attempts to make iPhone
consumers perceive that there are differences
•The firm charges premium for its
products/services because it offers its customers
something that is unique, extra-ordinary or
innovative

Focus The firm recognizes that different segments of the Bentley Cars
market have different needs and attempts to satisfy
one particular group
The firm can charge premium
Business HR Strategy
strategy
Cost Leadership Utilization HR Strategy
Suitable for  HR Strategy focused on short term performance measures
repetitive and Efficiency is the norm, job assignments are specialized, explicit job
predictable descriptions
behavior Hierarchical pay, few incentives
Concerned with Narrow career paths, limited training
short term focus Limited employment security
Result-oriented Limited participation

Differentiation Facilitation HR Strategy


Long term focus  Broad career paths
Creative job Extensive Training
behavior Equal and fair pay, many incentives for creativity
Modern concern Long term performance measures
for quality and External recruitment and hiring of people who bring in new ideas
quantity High employee participation
Some employment security
Focus Accumulation HR Strategy
High concern for  Equal and fair pay with many incentives
quality Hiring employees belonging to the target market
Moderate concern Broad career paths with extensive training
for quantity High employee participation
Long/medium Some employee security
term focus
ENVIRONMENTAL TRENDS AFFECTING HRM
Trends in Business
Environment
Globalization of business
Merger & Acquisition
Downsizing

Changing Nature of Changing Nature of


Employment HRM FUNCTION Work
Relationship

Workforce diversity Industry &


Ageing population & workforce occupational shifts
Women in workforce Technological
Changing family structure changes
Global workforce Outsourcing
Contingent workforce & Flexible work
workforce flexibility arrangements
Demographic, Societal &
Workforce Trends
FUNCTIONS
OF HRM

MANAGERIAL OPERATING
FUNCTIONS FUNCTIONS

Planning Organizing Directing Controlling


OPERATING FUNCTIONS

Compensation Human
Employment HRD Management Relations

Organizational Performance Job


HRP Induction
Design Appraisal Evaluation
Wage & Morale
Job Design Recruitment Training
Salary Admn

Mgmt Fringe Job Satisfaction


Job Analysis Selection
Development Benefits
Communication
Career Planning
Induction & Development Grievance &
Disciplinary
Organizational Procedures
Placement Change &
Development QWL & QC
OBJECTIVES OF HRM

• Create and utilize an able and motivated workforce, to accomplish the


basic organizational goals.
• To establish and maintain sound organizational structure and
desirable working relationships among all the members of the
organization.
• To secure the integration of individual and groups within the
organization by co-ordination of the individual and group goals with
those of the organization.
• To create facilities and opportunities for individual or group
development so as to match it with the growth of the organization
• To attain an effective utilization of human resources in the
achievement of organizational goals
OBJECTIVES OF HRM

• To identify and satisfy individual and group need by providing


adequate and equitable wages, incentives, employee benefits and
social security and measures for challenging work, prestige ,
recognition, security, status etc.
• To maintain high employee morale and sound human relations by
sustaining and improving the various conditions and facilities
• To strengthen and appreciate the human assets continuously by
providing training and development programs
• To consider and contribute to the minimization of socio-economic
evils such as unemployment, underemployment, inequalities in the
distribution of income and wealth and to improve the welfare of the
society by providing employment opportunities to women and
disadvantaged sections of the society.
OBJECTIVES OF HRM

• To provide an opportunity for expression and voice in management


• To provide fair, acceptable and efficient leadership
• To provide facilities and conditions of work and creation of favorable
atmosphere for maintaining stability of employment.

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