CONTEMPORARY ISSUES IN HRM

•ANSHUL(39)•PRERNA(40)• DAPHNE(41)

Contemporary issues with HRM• GLOBALIZATION: globalization refers to the

tendency of firms to extend their sales, ownership and manufacturing to new markets abroad.

• TECHNOLOGICAL ADVANCEMENT: many of the improvements that make firms world class involve technology.

• THE NATURE OF WORK: technology is also changing the nature of the work. Even factory jobs are more technologically demanding.

• WORKFORCE DEMOGRAPHICS: the workforce is becoming more diverse as women, minority groups members and older workers enter the workforce.

CONTEMPORARY ISSUES WITH

SHRM,IHRM ,GREEN HRM

SHRM• Strategic human resource management means formulating and

executing HR systems ,HR policies and activities that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

• Pattern of HR related decision strategies adopted over a period of time and its linkages with the corporate strategies to be able to achieve the distinctive competitive advantage.

• A company’s plan for how it will match its internal strength and weakness with external opportunities and threats in order to maintain a competitive advantage.

• A pattern of top management decision for fulfilling the goal and objectives of the organization and achieve competitive advantage.

Process of SHRM

Mission

Goals

HR Needs

HR Capabilities

HR Outcomes

Firm’s Outcome

HR Practices

INTERNAL ANALYSIS

EXTERNAL ANALYSIS

Strategy formulation

Strategy implementation

Strategy evaluation

I. Strategy formulation stage Linkage between strategic planning and

HRM:

Strategic planning

HRM

Strategic planning

Strategic planning

Strategic planning

HRM

HRM HRM

• Administrative linkage

•Two-way linkage

• One-way linkage •Integrative linkage

I. LINKAGE MODELS

MATCHING MODEL

CONTROL BASED MODEL

• When organizations hire people, they have only a potential or capacity to work. To ensure that each worker exercises his or her full capacity, managers must organize the tasks, space, movement and time within which workers operate.

• Workers’ own counter-management behaviour then causes managers to control and discipline the interior of the organization.

• This can be explained by the following three methods: Individual Control Bureaucratic Control Technological Control

Resource Based Model• The sum of people’s knowledge and expertise, and social

relationships, has the potential to create competitive advantage.

• Resources Tangible

Non-tangible

Threshold Resources

Unique Resource

Distinctive Competency

Threshold competency

Same as competitor

Different from competitor

resource

competency

BARNEY’S MODEL•Barney argues that four characteristics of resources and capabilities –

– Value

– rarity

– Inimitability

– non-substitutability

are important in sustaining competitive advantage.

•Resources which have value are rare, which cannot be initiated or substituted, will be helpful in shaping the HR strategies which inturn will give the organisation competitive advantage.

BAMBERGER’S MODEL

COMMITMENT COLLABORATION

PATERNALISTIC TRADITIONAL

Workforce locusof control

outcome

process

Acquisition of employeesinternal external

• Acquisition and development are concerned with the extent to which the HR strategy develops internal human capital as opposed to the external recruitment of human capital

• Locus of control is concerned with the degree to which HR strategy focuses on monitoring employees’ compliance with process-based standards.

II. Strategy implementation stage

Internal analysis(3 c’s) based on •Culture•Competencies•Composition

CONSULTING WORKFORCE

CORE WORKFORCE

ANCILLIARY WORKFORCE

COMPULSARY WORKFORCE

high

VALUElow high

UNIQUNERESOURCES

HR architecture

III. Strategic evaluation stage HR scorecard

It measures the effectiveness of HR activities.Steps involved

1. Formulating the business strategy2. Consulting with the value chain of the organisation3. Laying out the strategy map4. Identifying the organisational outcomes to be achieved5. Strategically fit HR functions6. Deciding the metrics for measuring the impact of the

required behaviour and capabilities7. Strategic comparison with the strategic objectives met.

Company practicing SHRM•  FedEx, one of the top

transportation companies of the world has been practicing Strategic Human Resource Management over years. It has also gained a competitive edge over the other firms.

IHRM• IHRM is the process of procuring, allocating and effectively

utilizing human resources in an international business or in a multinational organization.

• IHRM is a set of activities aimed at managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level.

• IHRM includes HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as  global skills management, expatriate management and so on.

MODEL OF IHRM

Features of IHRM• IHRM involves employment of the right people at the

right positions, irrespective of geographic locations.• It requires the development of a long-term HR plan to

make sure of an effective alignment of the HR strategies with the corporate objectives.

• It requires the development of a diversified range of skills for employees, especially for those who need to work beyond national boundaries.

• It necessitates the determination of compensation for host-, home- and third-country nationals on the basis of country-specific factors.

• It requires the creation of centralized reporting relationships around the world for faster information

sharing.

oBJeCTIVES of iHRM

The main objective of international human resources management is to enable the firm, the multinational enterprise (MNE), to be successful globally. This entails being• competitive throughout the world• efficient• locally responsive• flexible and adaptable within the shortest of time periods• capable of transferring learning across their globally dispersed units. 

MAJOR FUNCTIONS OF IHRM

• Recruitment and selection•Training and Development• Performance evaluation• Remuneration and benefits• Labour relations

 

Approaches for Managing & Staffing Subsidiaries

• Ethnocentric: strategic decisions made at the headquarters with limited subsidiary autonomy

• Polycentric: each subsidiary is a distinct national entity with some decision making autonomy.

• Geocentric: global approach, view that each part of the organization makes unique contribution

• Regiocentric: staff moves within the designated region rather than globally

Major Issues of IHRM1) Management of expatriates• Selection of expatriates• Expatriate training • Expatriate evaluation • Expatriate remuneration• Expatriate failure

2) Management of repatriates

3) Comparison of HRM practices in a variety of different countries

4) Management of international assignments to women

Companies implementing IHRM INFOSYSDue to the interlinked and fantastic international HRM structure they were rated “Best companies to work for” by HAY group

Infosys international business strategy revolves around 5 elements:

• World-class operating model.

• Focusing on human resources.

• Providing managed software solutions.

• Exploiting a well established off shore development model.

• Maintaining an equitable client and business mix.

The company believes that in order to succeed in the competitive environment it is necessary to recruit, train, and retain talented employees. Infosys aims at recruiting the best available talent, training them according to the industry demands and retaining them in a culture that promoted informal learning and free flow of ideas.

PROCTER & GAMBLE

In P&G, one of the priorities for HR at global level is to develop HR capability. This is being achieved by creating interdependencies within the HR community across the company. A sophisticated network of ten communities of practice, each focusing on a different area of HRM activity (such as remuneration or employee relations) has been established. These communities are international, and are resulting in less difference between countries in HRM policies due to the collaborative nature of policy development and implementation.

GREEN HRM• Green HR is a strategy used primarily for reducing the carbon

footprint of each employee and talent retention. 

• This term is combined by traditional CSR concept with longer-term renewable approach to business practices.

• It involves undertaking environment-friendly HR initiatives resulting in greater efficiencies, lower costs and better employee engagement and which in turn, help organizations to reduce employee carbon footprints by the likes of electronic filing, car-sharing, job-sharing, teleconferencing and virtual interviews, recycling, telecommuting, online training.

Green HRM processes

• Green Recruiting

• Training, Development, and Learning

• Performance Measurement

• Compensation and Rewards

Green work-life balance (WLB)• It can be assumed that the full potential of Green

HRM in theory and practice has not yet been realized. One conceivable deficit which could hamper the greening process is that the green HR policies focus only on employees’ working role.

• We need to acknowledge that environmentally relevant attitudes and behavior are not learned exclusively at the workplace, but also in private life.

• People have distinctive modes of living. They practice specific consumption patterns in their everyday life, Therefore employees’ private role as consumers is considered crucial for learning and practicing environmental attitudes and behavior.

Actions companies can take to go green:

• Conducting an energy audit 

• Recycle

• Reuse

• Reduce commuting 

• Buying green 

• Implement green manufacturing processes

• Implement green policies  

Companies implementing Green HR

 • ITC Ltd Sustainable Initiatives at ITC Green

Products- Premium Business Paper: For the first time in India ITC has launched an environment friendly multipurpose paper "Paperkraft Premium Business Paper", for office and home use using a new technology 'Ozone Treated Elemental Chlorine Free Technology' replacing Elemental Chlorine which was conventionally used in the bleaching process during paper manufacture.

• ONGC: Implementing Green HR practices

 Project of Landscaping, designing of garden and greening of area in the campus of Jollygrant Airport, Dehradun is started.

ONGC has many such initiatives towards green HRM. Another one is Vadodara Movement with Indian Express.

THANK YOU