CHANGING ENVIRONMENT

y Is change taking place? y What are these changes? y What is the significance of these changes?

CHANGING BUSINESS ENVIRONMENT

GLOBALIZATION

MARKET CHANGES

TECHNOLOGICAL CHANGES

LIBERALIZATION

Broadly Classified in three categories Portfolio related Process related Structure related

Portfolio related strategic responses

y Mergers, acquisition and takeovers y Demergers y Diversification y Share buyback y Disinvestment y Joint ventures y Strategic alliances/ Collaborations

Process related strategic responses

y y y y y y y y y y

Quality strategies International quality Certification programmes Just in-time inventory Benchmarking Building core competence Setting vision & mission Cost & asset utilization strategies Technological up gradation & indigenization Information Technology

Structure related strategic responses

y Strategic Business units y Matrix structure y Delayring/Flat organisational structures

Alignment b/w strategic responses of Orgs & SHRD

Portfolio related Strategic responses & SHRD system Mergers, Acquisitions, Takeovers, and SHRD Effect on
I.
Changes in Org structures

Attitudes from the perspective of acquired firm

Reaction after the announcement

- The success of any merger hinges on HR system, not on business

strategies - Hamilton - Notes from Business Week (1985) & Purcell (1994) - If M & A ought to succeed they must depend on the people.

II. Process related Strategic Responses and SHRD TQM, JIT, and SHRD - Successful implementation of TQM, JIT depends on
-

shared responsibility, commitment, rewards Information sharing with employees on profit, productivity etc. Employee involvement as a way of life Job Security as a key consideration in all decisions Helipern & Nadler Team effectiveness, training, effective communication, rewards are important tools for organization in moving towards TQM III. Structure Related Strategic Responses and SHRD Organizational structure is determined by the integration of - The structure - Technology - Human Resources

better the integration, higher the performance

HRD: A Strategic Perspective

y Understanding the concept Strategy

Why do you think that strategic management is so relevant in today s business context?
- Rapid rate of business change - High uncertainty - Increasing competitive pressures - Rapid technological changes - Increasing multinational competition and collaboration

- Integration of business strategy with HR strategy - Acknowledging the importance of employees in an organization

Why??? Employees influence on

Profitability Flexibility

Survival Competitiveness Adaptability

HR for a Competitive Advantage

Porter HRM can attain CA by a) lowering costs service differentiation b) increasing sources of production c) service differentiation Snell and Dean - Investment in human capital can help in attaining CA

y 5 major components of HRM to achieve CA

Culture Organization Structure Performance Management Resourcing Communications and Corporate Responsibilities

y - Perceiving workforce as strategic advantage not just as CTC

Golden and Ramanujam(1985) 4 level model

Administrative linkage One-way linkage Two-way linkage Integrative linkage

Linking HRD with Strategic Business Planning

BUSINESS PLANNING STEPS
Starting pt. Mission stm Macro-env. Analysis Macro-resource analysis

HR PLANNING STEPS
Stm of business thrust HR env. Analysis HR resource analysis

Key business assumptions

HR assumptions HR implications Critical HR issues HR strategies & evaluation for inclusion in strategic business plan

Business implications Critical business issues Strategy development & evaluation Approval

HRD & life Cycle of Organization

Org. stages & HR management needs

Stage 1 : START UP
Entrepereneurship, founder mgmt, ltd products & mkts Recruiting to find key people, basic compensation & admin system

Stage 2 : GROWTH
Dynamic growth, technical specialization, professional mgmt Advanced recruiting, training, socialization programmes to adapt new emp to org.

Stage 3 : CONTROL
Competition for resources, increase productivity , investments Cost ctrl HR activities, IT tools used to analysis cost

Stage 4 : INTERGRATION
Diversification, decentralisation, product groups & divisions, prj mgmt HR components, planning & org. development

Stage 5 : FELEXIBILITY
Adapatability, collabarative team work, functional areas , multiple products & markets Highly developed monitoring & scanning capablility, felexibilty to mktss & env. needs

Thank you Group 3 :

Niharika Jyothi Ujwala Kiran Venkatesh