1. SHRM

2. EVOLUTION OF SHRM Part of mechanistic organization Bureaucratic
PERSONAL MANAGEMENT
Part of mechanistic organization
Bureaucratic
High centralization
High formalization
Low flexibility
HRM ( 70s)
Part of organic organization
Cross-hierarchical and cross functional teams
Decentralized
Low formalization
Flexible
SHRM (80S)
Convergence between HRM & Business Strategy
Pro-active HRM
Concerned with organizational effectiveness & performance

3. DIFFERENCE BETWEEN SHRM & TRADITIONAL HRM
DIMENSIONS
TRADITIONAL HRM
SHRM
Responsibility for HR programmes
Staff personnel in the HR department
Line managers; all managers responsible for people are HR managers
Focus of activities
Employee relations – ensuring employee motivation and productivity; compliance with laws
Partnerships with internal (employees) & external ( customers, stakeholders, public interest group) groups.
Role of HR
Reactive & transactional
Pro-active and transformational, change leader
Initiative for change
Slow, piecemeal and fragmented, not integrated with larger issues
Fast, flexible and systematic, change initiatives implemented in concert with other HR systems

4. 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 rules, procedures and policies
Organic control through flexibility, as few restrictions on employee behavior as possible
Job design
Focus on scientific management principles – division of labor, independence, and specialization
Broad job design, flexibility, teams and groups and cross training
Important investments
Capital, products, technology and finance
People and their knowledge, skills and abilities
Accountability
Cost centre
Investment centre

5. 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.

6. Cost leadership Differentiation Focus
Three types of business strategies that may be adopted by an organization are:
Cost leadership
Differentiation
Focus

7. Business strategy
Characteristics
Examples
Cost Leadership
The firm increases its efficiency , cuts costs so that the products or services may be priced lower than the industry average
Assumes that a small change in price will significantly affect customer demand
Assumes that customers show greater price sensitivity than brand loyalty
Retailers such as Wall Mart, Lulu Center etc
Differentiation
The firm distinguishes its products/services from its competitors or at least attempts to make 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
Samsung, iPhone
Focus
The firm recognizes that different segments of the market have different needs and attempts to satisfy one particular group
The firm can charge premium
Bentley Cars

8. Business strategy HR Strategy
Cost Leadership
Suitable for repetitive and predictable behavior
Concerned with short term focus
Result-oriented
Utilization HR Strategy
HR Strategy focused on short term performance measures
Efficiency is the norm, job assignments are specialized, explicit job descriptions
Hierarchical pay, few incentives
Narrow career paths, limited training
Limited employment security
Limited participation
Differentiation
Long term focus
Creative job behavior
Modern concern for quality and quantity
Facilitation HR Strategy
Broad career paths
Extensive Training
Equal and fair pay, many incentives for creativity
Long term performance measures
External recruitment and hiring of people who bring in new ideas
High employee participation
Some employment security
Focus
High concern for quality
Moderate concern for quantity
Long/medium term focus
Accumulation HR Strategy
Equal and fair pay with many incentives
Hiring employees belonging to the target market
Broad career paths with extensive training
Some employee security

9. ENVIRONMENTAL TRENDS AFFECTING HRM
Trends in Business Environment
Globalization of business
Merger & Acquisition
Downsizing
Changing Nature of Employment Relationship
Changing Nature of Work
HRM FUNCTION
Workforce diversity
Ageing population & workforce
Women in workforce
Changing family structure
Global workforce
Contingent workforce & workforce flexibility
Industry & occupational shifts
Technological changes
Outsourcing
Flexible work arrangements
Demographic, Societal & Workforce Trends

10. FUNCTIONS OF HRM OPERATING FUNCTIONS MANAGERIAL FUNCTIONS Planning
Organizing
Directing
Controlling

11. Performance Appraisal Job Evaluation
OPERATING FUNCTIONS
Employment
HRD
Compensation
Management
Human Relations
HRP
Performance Appraisal
Job Evaluation
Induction
Organizational Design
Morale
Recruitment
Training
Wage & Salary Admn
Job Design
Job Satisfaction
Selection
Mgmt Development
Fringe Benefits
Job Analysis
Communication
Induction
Career Planning & Development
Grievance & Disciplinary Procedures
Placement
Organizational Change & Development
QWL & QC

12. 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

13. 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.

14. 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.