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1
STRATEGIC ROLE OF HRM
2
HUMAN RESORCE MANAGEMENT
• HRM is the art of procuring, developing
and maintaining competent workforce to
achieve the goals of an organization in an
effective and efficient manner.
• It is a process of bringing people and
organizations together so that the goals of
each are met.
3
ACCORDING TO EDWIN FLIPPO
• Edwin Flippo defies HRM as “planning,
organizing, directing, controlling of
procurement, development,
compensation, integration , maintenance
and separation of human resources to the
end that individual, organizational and
social objectives are achieved".
4
HRM FUNCTIONS
• Managerial
Functions
Planning
Organizing
Directing
Controlling
5
• Operative Functions
Procurement Function
Development Functions
Compensation Functions
Integration Functions
Maintenance Functions
OPERATIVE FUNCTIONS
COMPENSATION FUNCTION
1. JOB EVALUATION
2. WAGE & SALARY ADMINISTRATION
3. BONUS
PROCUREMENT FUNCTIONS
1.JOB ANALYSIS
2.HUMAN RESOURCE PLANNING
3.RECRUITMENT & SELECTION
4.PLACEMENT
5.INDUCTION
INTEGRATION FUNCTIONS
1.COLLECTIVE BARGAINING
2.GRIEVANCE PROCEDURE
3.DISCIPLINE PROCEDURE
4.PROVIDENT FUND
5.PENSION
6.GRATUITY
7.MATERNITY BENEFITS
DEVELOPMENT FUNCTIONS
1.PERFORMANCE & POTENTIAL APPRAISAL
2.TRAINING
3.EXECUTIVE DEVELOPMENT
4.CAREER PLANNING & DEVELOPMENT
7
MAINTENANCE FUNCTION
1.FRINGE BENEFITS
2.HOUSING FACILITY
3.MEDICAL FACILITY
4.EDUCATIONAL FACILITY
5.MATERNITY BENEFITS
GOALS OF HRM
a) To help the organization attain its goals by providing
well-trained and well-motivated employees.
b) To employ the skills and knowledge of the employees
efficiently & effectively.
c) To enhance job satisfaction & self-actualization of
employees by encouraging them to realize their full
potential.
d) To establish & maintain productive, self-respecting
and satisfying working relationships among all the
members of the organization.
8
e)To develop and maintain a quality of work-
life(QWL) which makes employment in the
organization a desirable personal and social
situation.
f) To maintain good human relations within the
organization.
g) To communicate HR policies to all employees.
9
Contd..
STRATEGIC HUMAN RESOURCE
MANAGEMENT
• SHRM is the pattern of planned human
resource development and activities
intended to enable an organisation to
achieve its goals.
• This means accepting the HR function as
a Strategic partner in both the formulation
of the company’s strategic as well as in
the implementation of those activities
through HR activities.
10
CONT…
• It deals with the macro-concerns of the organization
regarding structure, quality, culture, values,
commitment, matching resources to future needs and
other longer term people issues.
• Strategic HRM gives direction on how to build the
foundation for strategic advantage by creating an
effective organizational structure and design, culture,
employee value proposition, systems thinking, an
appropriate communication strategy and preparing an
organization for a changing landscape, which includes
downturns and mergers & acquisitions.
11
DIFFERENCE BETWEEN STRATEGIC AND
TRADITIONAL HRM
12
POINTS OF
DISTINCTION
TRADITIONAL HRM STRATEGIC HRM
FOCUS EMPLOYEE RELATIONS PARTNERSHIPS WITH INTERNAL &
EXTERNAL CUSTOMERS
ROLE OF HR TRANSACTIONAL CHANGE FOLLOWER
& RESPONDENT
TRANSFORMATIONAL CHANGE LEADER
& INITIATOR
INITIATIVES SLOW, REACTION FAST,PROACTIVE & INTEGRATED
TIME HORIZON SHORT TERM SHORT, MEDIUM & LONG
CONTROL BUREAUCRATIC RULES,POLICIES &
PROCEDURES
ORGANIC-FLEXIBLE, WHATEVER IS
NECESSARY TO SUCCEED
JOB DESIGN TIGHT DIVISION OF LABOUR,
INDEPENDENCE
FLEXIBLE, CROSS-FUNCTIONAL TEAMS
KEY
INVESTMENTS
CAPITAL, PRODUCTS PEOPLE,KNOWLEDGE
MODEL OF SHRM BY MELLO
13
Corporate
Strategy
EXTERNAL
ENVIRONMENT
•Competition
•Government Policy
•Technology
•Economic
INTERNAL
ENVIRONMENT
•Culture
•Policies
•Skills
•Mission
BUSINESS STRATEGY
HR Strategy
•HRP
•Job Design
•Job Analysis
•What workers do
•What worker
need
HR Functions
•Procurement
•Development
•Performance
Management
•Compensation
•Labour Relations
OUTCOME
•Increased
Performance
•Customer
Satisfaction
•Employee
Satisfaction
Thank You
By: Suresh Nath
MPA (1st
sem.)

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Strategic hrm

  • 1. 1
  • 3. HUMAN RESORCE MANAGEMENT • HRM is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. • It is a process of bringing people and organizations together so that the goals of each are met. 3
  • 4. ACCORDING TO EDWIN FLIPPO • Edwin Flippo defies HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved". 4
  • 5. HRM FUNCTIONS • Managerial Functions Planning Organizing Directing Controlling 5 • Operative Functions Procurement Function Development Functions Compensation Functions Integration Functions Maintenance Functions
  • 6.
  • 7. OPERATIVE FUNCTIONS COMPENSATION FUNCTION 1. JOB EVALUATION 2. WAGE & SALARY ADMINISTRATION 3. BONUS PROCUREMENT FUNCTIONS 1.JOB ANALYSIS 2.HUMAN RESOURCE PLANNING 3.RECRUITMENT & SELECTION 4.PLACEMENT 5.INDUCTION INTEGRATION FUNCTIONS 1.COLLECTIVE BARGAINING 2.GRIEVANCE PROCEDURE 3.DISCIPLINE PROCEDURE 4.PROVIDENT FUND 5.PENSION 6.GRATUITY 7.MATERNITY BENEFITS DEVELOPMENT FUNCTIONS 1.PERFORMANCE & POTENTIAL APPRAISAL 2.TRAINING 3.EXECUTIVE DEVELOPMENT 4.CAREER PLANNING & DEVELOPMENT 7 MAINTENANCE FUNCTION 1.FRINGE BENEFITS 2.HOUSING FACILITY 3.MEDICAL FACILITY 4.EDUCATIONAL FACILITY 5.MATERNITY BENEFITS
  • 8. GOALS OF HRM a) To help the organization attain its goals by providing well-trained and well-motivated employees. b) To employ the skills and knowledge of the employees efficiently & effectively. c) To enhance job satisfaction & self-actualization of employees by encouraging them to realize their full potential. d) To establish & maintain productive, self-respecting and satisfying working relationships among all the members of the organization. 8
  • 9. e)To develop and maintain a quality of work- life(QWL) which makes employment in the organization a desirable personal and social situation. f) To maintain good human relations within the organization. g) To communicate HR policies to all employees. 9 Contd..
  • 10. STRATEGIC HUMAN RESOURCE MANAGEMENT • SHRM is the pattern of planned human resource development and activities intended to enable an organisation to achieve its goals. • This means accepting the HR function as a Strategic partner in both the formulation of the company’s strategic as well as in the implementation of those activities through HR activities. 10
  • 11. CONT… • It deals with the macro-concerns of the organization regarding structure, quality, culture, values, commitment, matching resources to future needs and other longer term people issues. • Strategic HRM gives direction on how to build the foundation for strategic advantage by creating an effective organizational structure and design, culture, employee value proposition, systems thinking, an appropriate communication strategy and preparing an organization for a changing landscape, which includes downturns and mergers & acquisitions. 11
  • 12. DIFFERENCE BETWEEN STRATEGIC AND TRADITIONAL HRM 12 POINTS OF DISTINCTION TRADITIONAL HRM STRATEGIC HRM FOCUS EMPLOYEE RELATIONS PARTNERSHIPS WITH INTERNAL & EXTERNAL CUSTOMERS ROLE OF HR TRANSACTIONAL CHANGE FOLLOWER & RESPONDENT TRANSFORMATIONAL CHANGE LEADER & INITIATOR INITIATIVES SLOW, REACTION FAST,PROACTIVE & INTEGRATED TIME HORIZON SHORT TERM SHORT, MEDIUM & LONG CONTROL BUREAUCRATIC RULES,POLICIES & PROCEDURES ORGANIC-FLEXIBLE, WHATEVER IS NECESSARY TO SUCCEED JOB DESIGN TIGHT DIVISION OF LABOUR, INDEPENDENCE FLEXIBLE, CROSS-FUNCTIONAL TEAMS KEY INVESTMENTS CAPITAL, PRODUCTS PEOPLE,KNOWLEDGE
  • 13. MODEL OF SHRM BY MELLO 13 Corporate Strategy EXTERNAL ENVIRONMENT •Competition •Government Policy •Technology •Economic INTERNAL ENVIRONMENT •Culture •Policies •Skills •Mission BUSINESS STRATEGY HR Strategy •HRP •Job Design •Job Analysis •What workers do •What worker need HR Functions •Procurement •Development •Performance Management •Compensation •Labour Relations OUTCOME •Increased Performance •Customer Satisfaction •Employee Satisfaction
  • 14. Thank You By: Suresh Nath MPA (1st sem.)